Regency Centers (REG) 9 Feb 182017 Q4 Earnings call transcript

Company Profile

Participants

Laura Clark	VP, Capital Markets
Hap Stein	Chairman & CEO
Lisa Palmer	President & CFO
Mac Chandler	EVP, Investments
Jim Thompson	EVP, Operations
Chris Leavitt	SVP and Treasurer
Ki Bin Kim	SunTrust Robinson Humphrey
Katy McConnell	Citigroup
Jeremy Metz	BMO Capital Markets
Jeff	Bank of America
Brian	RBC Capital Markets
Gary Jameson	UBS
Vince Tibone	Green Street Advisors
Steve Sakwa	Evercore ISI
Collin Mings	Raymond James
Chris Lucas	Capital One Securities

Call transcript

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Operator

Greetings, and welcome to the Regency Centers' Fourth Quarter 2017 Earnings Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd like to turn the conference over to your host Laura Clark. you. Thank

begin. may You

Laura Clark

from cause identify statements reference welcome in from release would those comparable fourth the stating found like forward-looking Please risk earnings We results our and call. our may and differ future to our uncertainties. that of conference outcomes refer results which their Relations expressed call, certain also performance, measures that XXXX in measures reconciliation these call. SEC, discuss and be Such this on measures. I to contained differ on statements with Investor could risks statements. will to actual morning and financial today’s important financial quarter Actual On materially provided supplements, forward-looking a Regency’s in may earnings we can involve those website. GAAP Good to to factors filings begin statements. by we non-GAAP which forward-looking

great you York our sincerely since then, in Investor today. Treasurer. many Stein, Managing Chairman and CEO; EVP brief Finance; Investments; at us. Joining we me It you appreciate Day Chandler, Operations; much CFO; New and spent time has changed our seeing of Chris XXXX Leavitt, and the and our of with today Mas, Lisa was Mike President Jim of EVP Thompson, Mac not and Director Hap SVP of are Since we'll Palmer, be

over were not will on please I you to to our that webcast, presentation call reference to turn those For and live the Hap. now or replay of able attend listen the the website.

Hap Stein

property continue to the that was the are people the achieve remarkable accomplishments our objectives. of team extremely year of business. begin, the the how Regency's are consecutive continue X.X%, property XX.X% and sixth same retailers truly To strategic best was more push to shopping metrics. top continuing places Regency, to leased accelerated real for healthy these same for portfolio XXXX impressive deliberate, of to the estate, able of of both achieved spite in growth X.X%. year the we NOI a as This well-positioned in some Laura. though expansions and in closures to demand and proud challenges the to XXXX I'm retail were professionals our store of they at demonstrate sector experience Thanks, center of was we about successful an are which from Even operators. Regency

$X.X our our to developments start to projects the over team redevelopments in-process continued and identify billion. outstanding yields, compelling and During bringing year, at

financial We today, of of very and also fortified why reminder component critical a times of strong our strategy. further Regency's a position sheet in market this balance like your remains poignant volatility is

Day. to we plan superior merger the flexible due of lower It recycling larger were be repurchase highlighted addition, we further our to existing to or quality the is flexibility The announced a important the execute is and purchased a portfolio, modest Yesterday we thing. growth of capital our when of program. at pricing most NOI sold compelling. is number successfully neutral impact on of To footings. provides merger periods. but X% unequaled of of essentially assets. an one, the capital growth returns five-year by was and over to Investor a noting program prospects with of accomplishments modest has size average met expectations. In only Equity shareholder This of us company enhance exceeded of better and company, asset NOI leverage made our and the which last quality completed growth the share One, truly the implementation not as that's The sale recycling further X% strategy assets the should some with at we three premier be portfolio, very growth Regency's given with which finding will acquisitions the worth repurchases Regency's our the that similar and of our evidenced centers share combination superior and a lower

XXXX imagine, rest As extremely said, had which over the challenging and can the been our laurels. in we you successes last years our can't that environment fully in we given That afford five in operate, we ever-changing gratifying. to realize on

capitalize enable to Our of advantages unequaled combination class in deep will our to to continue value. commitment grow relevant talented and strategy our being execute strategic best Lisa? to to staying team on and to shareholder and our

Lisa Palmer

to the by time or webcast. Investor comments and all I join to Thank morning, Hap everyone. start good on us you, echoing through the Day. Laura's you, whether person want taking Thank for in

your growth changes for to by of another of found rent hope Hap there thankful demonstrated valuable. operating looking spend and of the and FFO driven provided performance X.X%, a premier year time are you as ranges. We Full been support year have strong no Regency results base FFO said. previously strong XXXX the our portfolio. XXXX, at guidance testament NAREIT to And were

FFO as from this earnings. In As well better to grow the reflects our metric Day, certain business non-cash items view, Investor operating eliminates our performance operating and a ability cash nonrecurring our adjustments. as demonstrates reminder of accounting

REIT analysts better will it you, going across that metric the continue discuss important the report FFO feel with asking comparability given we for we standard FFO emphasize community do purposes is NAREIT currently to consensus is we forward. to definition. NAREIT are sector, Therefore, the for the While to FFO operating

NOI X% and this will we our the combination to growth projecting With X% growth of XXXX our operating discussed, X% over FFO compounded same operating of two-year X% year, of objective. our unequaled this of we've growth believe long-term. growth will to FFO us advantages strategic and enable property deliver earnings As consistently growth meet

have upper we to represent including to and and our year. Us also incorporates our expect several X.XX% Announcements prospects outs, be guidance. With occupancy mentioned finish Our there I free are cash X% to area. half Regency’s fallout guidance kind FFO been today, time, our flow the exposure bankruptcies. dividend, XXXX incorporated growth low given would closure this to NOI for and continues to-date maintaining would the Since would X.XX% that XX% in our in remains announcements still that unchanged. which what operating store full ratio, minimal. nearly of were Investor from guidance grow and At same increased that I in property some which like store range, Day, represent given the our we move to reiterate closures we of payout know growth Toys

integration One and XXXX results. our a Equity we can't another remarks Regency said, of proud for Hap merger questions. of say year. over impressive with concludes prepared am year welcome year now was team remarkable As this and That enough; I past our and your how the it successful of I

Operator

SunTrust first Thank Instruction] Ki from you. time, conducting At go Bin is Humphrey. this ahead. we'll Our Kim question question-and-answer session. from Please be [Operator Robinson a

Ki Bin Kim

mentioned the Thanks. anymore driving color provide the volatility horizon? Good anchor -- Could anything you and some in like morning, rent that? leasing you -- perhaps spreads. TIs everyone. some there's if in that similar in more little items of And release, you press on heavier guys your Could

Jim Thompson

is this that. answer Ki, Jim. I'll

double that relatively we activity, high was kind on anchor the was anchor small and did you Louisiana, outlier Michael's. the expect Ultra Backfilling that did and a give activity in anchor to full best of one the all flavor at mentioned, year HomeGoods, overall. is what year We nine asset is those X% which step side. difficult in QX context, have that, really in have sample the XX% space side, of ready in for to with, spreads, As disposition. about to of growth. you I is rent to begin transactions quality size very we had news but were when for and [Addicts], That now see. -- a normally back of just transactions to we And equates negative was look full On we a which that a the X%

a shop year, from net new deal was the Sports Lobby early breakdown talked you growth the and Authority. you Hobby deal space, deals it the new we Backfill in was anchor in out XX%. XX% about When If from

look overall. So, in pretty spreads I think general, rent good

re-merchandise to Looking you subset, would little had of will anchor continue the box that to primarily in particular is the our foremost we work higher in high But TI. the at this due require astutely retailers centers. that quality But typically activity. get we white Anchors tell interesting moderating and I TI, and minds as overall, a re-tenanting some to capital ensure first again to well. that best-in-class leasing performed needed driven we be our to deploy

Lisa Palmer

outlook of Just a changed. our to little hasn’t bit add color,

was merger leases. that Day announced anchor compelling we You've Equity heard the the two still of And the One over us the -- next inherent Investor term lot this merger near years. say mark-to-market factors we we when that of of three the in to one at a still see expiring

Hap Stein

if with contractual the as strategic our growth Lisa being of combine we’re plus said, long able And to same term. that property that you to generate rent achieve those well I NOI increases objective we’re positioned think the X% over

Ki Bin Kim

sub environment your change the And cost environment announcement. at anything at appreciate does your about all? all X that along does of -- Okay. kind at stays underwriting the capital all it’s But second Even that cap? million, the buying a at of or change if way, I this thinking share the question, repurchase though $XX

Hap Stein

very it that essentially do potentially repurchase in invest stock volatile opportunities I It neutral is would been like start NOI consistent another with of sheet sell prospects. buyback think compelling is that's allocation to follows; say, anything stock and could going We a real we're when all and and flow. flexibility added to balance cash and we in the be growth and we'll opportunity the because environment, I makes to invest outstanding a stock, a and lower And stock we've maintaining of to and else, about and we've to into We development important. think the more superior capital recycling shares opportunity we as plan than what a strong reinvest sense investment do capital free compelling X% start buyback centers leverage way acquisitions compelling this. that to announcement, with and critically this that. investment is with going be is the in our in growth X%

Lisa Palmer

this and our about our to that do to important I'd with of our believe continue Hap operating isn��t past emphasize that. that consistent accident. NOI strategy enhance portfolio. for started fortify growth is It And our XX just it in being for do and strategy. And done terms and capital we of we It's recycling something is by to will our the NOI we've continually and us important our years outperformance and part an very metrics

Jim Thompson

And on and it portfolio we've where that quality to a significant it's it standpoint. a dividends paid do don't from basis to And an have growth on basis, done basis. from incremental on we standpoint incremental NOI

Ki Bin Kim

Thank you. Okay.

Operator

from Christy Our next McElroy from question go Citigroup. is ahead. Please

Katy McConnell

Good morning. McConnell This Katy for on Christy. is

can of and the your about your And bit little also pools buyer in peers that you're are acquisitions willingness many you buyer table coming be to Given pulling this any you the to seeing can a in talk today? a back changes talk to are pricing on about today? environment, continue market

Hap Stein

with will start the cap I allocation.

be doing makes I and buy we've we do that think the we'll those now sense reinvest about compelling have may centers. clear flexibility it acquisitions, this, when than But I said, shopping assets into to our it our been sell investment proceeds that. to of is As more rather pretty

reason our you happening the that's over Mac decided north quality and very to may the we somewhere to to centers. market shopping be for to look that what stock implied a of I'll very, part it seems turn buyback us. cap to rate that interesting of of And X% respond at put the today, portfolio, in our place of in If program

Mac Chandler

that -- Sure we're of that starting of centers is, thing. A still types amount Really centers, demand with quality in productive with we're are coming what to grocers again is centers the in for tremendous supply we'll market seeing part looking in very the the And we acquire to and see markets. 'XX the probably best saw really 'XX. that in there in dominant in little that

there. the but still transactions for perceived and softening are in sort to So fewer little In or there that the then buyers B there clearing, skeptical I'd bit Buyers pricing shopping ago. out in a the B are type some category, the than further risk, real quality scarcity demand there centers, centers. in that's year down is whether scale, also product driving that little buyers more power some you when say further get pricing. so centers, softening are And the more and down of of highest

Katy McConnell

you. Thank Okay. Great.

Operator

next BMO Markets. Please is Capital Our ahead. from Jeremy go Metz from question

Jeremy Metz

Mac. morning, Good

Just the the can for the it how on following it's up growth Any XX past especially stuff. XX in environment, chance you moved on non-core shifting to your comments pricing really quantify days? low much call better

Mac Chandler

answer smaller always to think, is you it's less $XX million grocer, the the larger -- is down get intersection. so a probably question above, and And because would it's million to dependent tough say Jeremy, gap what as you I than $XX get centers market the so more I the than the closer even on to the centers. as

different tough over over see six be XX different markets. have say XX months, of don't but very I and of questions in specific, days, one that So, very but XX basis points to shades we it's transactions a XX specific but demand answer to not to those

Jeremy Metz

then those would those those toys No, back. you couple that's time, back, a you release great the helpful. getting current your Once of possibly is mentioned once in those look and as And to there you configuration? mark-to-market today on then leases just get guys

Hap Stein

our get all toys. we five expect Jeremy, to

real to get with On reletting. reduction, which back. our attendant Quite of a are reached frankly two engaged estate toys a locations, We we rather those we merchandising. declined expect we for our out one and and them for upgrade of control

look The center, so asset up. Boston, other breaking in well merchandised boxes is we'll at

pretty the box. a Boston size is think I space good

for an opportunities. job we'll merchants backfill rate. So, of market we'll opportunity at to What look astute best-in-class and trying think looking again we that all do right the select we're at is

Jeremy Metz

Thanks. pretty Probably mark-to-market it's significant there? out

Hap Stein

the rejected expect were that we -- deals. we can you higher opportunity get ones three-week think the the didn't As the three a back, rent they there's significant

think rent. XXXX like I we're XXXX in up

going a breaking on refill. but suspect up it up full we end So, there depends or may little I be moderation, how boxes

Jeremy Metz

not me environment Are last time did I today any today from your And weeks close retail Investor tax ago. you different feel Hap. is you has if of Okay. with so as question month know removed passed. we're only same obviously it generally the or you encouraged Day, wondering I a for about to a regards lot feeling few a more was reform?

Hap Stein

out, demand growth it we the I think to be think saying early but markets, in like certainly say capital see more going from it's better XX.X% play up. has to way XX.X% tax continue It We now there's Obviously, feels is picked the but the to in remains the shop too good. demand is almost what the slackened I economy, seen, we've the tell. I seen We're also to is more leased, it's robust has think reform in operators, we're didn't space. which off. volatility

healthy. underlying a pretty appear So, position fundamentals we're and from business of so be starting to extremely strong the

Jeremy Metz

Thanks for the time.

Hap Stein

Thank you, Jeremy.

Operator

America. Our is go Schmidt Bank Craig of from next question from ahead. Please

Jeff

Hi is Craig [Benton] this this morning. Jeff for

for go back market Just a second. transactions to wanted to

rate how Cap of that the give you you wide us of X.XX% can could guidance an at assumptions that your be? look indication you If range have in

Hap Stein

want you question? that answer Mac, to

Mac Chandler

depends Jeff, at what quite selection. I'll Sure fixed a some Westwood cap really aggregate affected property apartment lessee cap bit greatly just when to and cap an was what option on a give actually example, you thing. of there. which our you within really the rate project aggregate price had rate at sold an XXXX, it fixed a buy that so building rate was in an the in that Towers Westwood tower the look and skewed we asset-by-asset our

it it product much comes the somewhat XXXX to so depend -- when mix. So, will on

seeing sell. a to to be the good bit. going properties say the on on soon range activity shift want is -- did too exactly probably we that we're It these to what but So little

and As the are what we what market year constantly we to goes adjusting on, clears. take to

plus there. we can't or at So, give It asset-by-asset clear much selection why they and that roll this is guidance and all that's more up an eventual minus get really point.

Jeff

can you geographical and remain that's growing which regions shrink? us No, want in to fair. And remind versus you

Mac Chandler

long-term in at to look the mind, Atlanta markets follow at to our Investor underlying includes a over -- and we to the did to opportunities and Dallas. we can -- be our be XX-hour markets but want an to markets that to And back this, good includes and is it XX% might at through includes look you supply setting at and go with that stem went to look study do extensive an have markets, deployed meaningful like we that Day a but its Mac in and this in news a worked gateway back, Costar platform. now in it's detail and markets, market growth Sure, that demographics constraints is worthwhile the of on up capital we might where various

on target months markets We have enough platform those markets a have we got where where two the going grace a to if but over us great. now not, ability which we be to we've a to presence find right If evaluating -- come, So say the in add to it had wonderful be to sense that a other where we're we're build presence in. fine. invest opportunities too. We're got in we we've canvas did identify, going may and identified to for make to markets, can in two

Lisa Palmer

going talk and as the exiting one about be And any assets. market market growth we sale property isn't capital se. our we're our to lower the recycling X% per in strategy targeting our that other mentioned, necessarily we're When concentrated Hap

it's than So, selection. a selection rather by asset market asset an

Hap Stein

call in still are really Correct, centers. of outside those core number note it's shopping to what important that good of again a many are might you markets, and of are X% those because

but and close effectively and performance identify is we markets Florida number the there anything center Tallahassee that are from that we center manage can I XXX% and a not still assets think of extraordinary good offhand public to you a long-term is that, assets, Mac? to in a standpoint. that the Is want still they're we target have public where in leased like

Mac Chandler

No, I think that it. covers

haven't one It's selection market, that. asset announcement as mentioned. really We public specific an nothing exiting by made any asset of us like

Jeff

you. a great on year. Thank right. All And congrats

Hap Stein

very you Appreciate it. Thank much.

Operator

from next question [Kaufman] ahead. Capital Brian from is go Markets. Please Our RBC

Brian

Hi.

then most to seeing And demand of about building size the about So just or geography, can the where space kind talk the analysis, hardest location talk geographical by region? can lease whether it's you the center? by you on you're in also

Hap Stein

Jim?

Jim Thompson

We're country. the good really particular seeing any is weakness demand our across across solid or there. outstanding would performance, shot Board the say, couldn’t I rifle demand I really but

Within creative to create there's down a that think the always we today's we and back box get box center the that always we right size the shopping sure make generally, demands unusual is when relevant tear I But the get that's boxes in that to can creative for boxes what the in whether portion create we pretty there's -- and are right market size perspective. today. create

we analysis we DNA want which of Day be where and call that part markets we study identified to our our other a went The the Investor in. over at which we market had

are that factors where the did population density, education in and We supply right level, purchasing the those a that to income, we plus constraints. study right be have are trade demographics, right the power the of the also areas want average household corners what --

in locations And country. the great so, deployed shopping that throughout is capital our centers are premier in

Brian

That's it taking for Thanks me. my questions. for

Hap Stein

Thank you.

Operator

Our Nick UBS. Please next ahead. Yulico go from question from is

Gary Jameson

Good afternoon. with Gary is Nick. Jameson This

in opportunities? for redevelopment generally pricing than purchased the bit also centered acquisitions redevelopment quality Hewlett Should expect dense expensive are at there Crossing assets, but A we looking smaller Just opportunity going very to around usual, areas. a with

Hap Stein

Mac?

Mac Chandler

It's blown, modest to that project, refresh one. a but neighborhood. large a it's that street particular got take very little very redevelopment today. happy It's that the over It's bit long and a asset, little but retail Yeah we're product In is that Hewlett not got competitive parking, which term. in one like great doesn’t think stretch. performance by got a property not the work great we any a it's other it. It's of scale needs smaller in It market. a one that We full expecting It's the growth. have. advantages

love that we major lot. say well. we there I'd So, a a like redevelopment because that, where also component is compete acquisitions it on we really

have platform that the we platform Some our of that have don’t the peers we and the institutions have even don't do.

of partnership. that and opportunities us is factor property family where into that like that they that. we we it discussed was to Investor for our their a Day at really country significant Town love that's example transform So, ability a recognized and and that platform the our brought owns when and great them the

our we those use platform to So, our relish to opportunities advantage.

Hap Stein

And superior priority from capital. value allocation from redevelopments capital prioritize redevelopments add reiterating investment prospects. growth with where developments outstanding acquisitions the of developments and on that value one our and But priority an then add is are to and NOI in standpoint, investment going one, we're

Gary Jameson

Town still year is and now? Country, from probably out that mentioned looking You be going to it's like a

Hap Stein

that with hoping still Yes, schedule.

Gary Jameson

And the Day potential as leases? occupancy and the and and in your toys what Sears two thoughts from Okay. your Toys you are on Kmart rejected were during risks five and with line the Sears highlighted closures expectations the potential Investor

Lisa Palmer

we guidance XX% reiterating it's into the welcome property Jim is he’d incorporated from end end we're that color just to higher to about XXX-basis just the guidance. comfortable with, And range and same X.XX that specific that of range, how take if like. still high equates X.XX level to -- fact upper And bankruptcies. in does say outs, just of closures, we're But the our growth store which we tell -- I'll property NOI range our point lower back. is that impacted move toys comfortable that we're fact some conservative, incorporate again, with add incorporated. boxes, incorporated that expecting so gotten points XXXX by the we've two you XX incorporates and our of in and terms what necessarily guidance. for that. And XXXX not In same more And again, of end NOI we but than get how think we’d was those guidance our yes we that leased our reasonably bankruptcies the we’ve basis many know it's the already, might into of the

Gary Jameson

Lisa, appreciate you, Thank that.

final not or me, potential in on likely $XXX there's funded level an might be if million dispose for buyback? the and than more the spent buyback, equivalent question if is this Just disposition that might of that assets the that potential be is for regarding more you there's sales money acquisitions

Hap Stein

point that Directors, book Regency’s of life mentioned his it to wants one which that does And to and we be the our capital. optionality, the I applies a use investments free our to that same that lower and the compelling I important we you growth is that rate that but have Dave then cash I now. And at is we'll development volatility portfolio reinvest at that's $XXX to of don't X% that's flexibility in great could want growth our of of market and the compelling keep quality a a the plan recently giving prospects is applies of the asset some answer given NOI start year about in remind and flow and will, enhance and quality that our million. of portfolio think life. in key of Dispositions think X%, O'Connor flexibility me optionality have a NOI pricing and of the And acquisitions. -- flexibility that I he now in write great capital optionality secondly in and substitute having to first is

Gary Jameson

you well. and I Thank with optionality as Great. agree the comment

Operator

next Tibone Our from Green Street go Advisors. is Vince ahead. from question Please

Vince Tibone

shop some in of a to on where the you you side more little bit are of is between bit anchor do provide drill to bankruptcy see and little little guys. space more down closure as a -- was it Hey you well? on able I occupancy all there falling color hoping occupancy guidance, the risk terms small a or maybe reside, and bit think shop store in anchor the is the

Lisa Palmer

experienced -- past. spectrum And it all the what across full expect and happen different be spectrum of much Move store the sizes. we've closure store outs the to than don't in

it makes and think is So, it pro-rata what -- almost kind about our really of you how portfolio. is up

end that of shop anchor of some combination are we as well as occupancy projecting lower loss that So, is loss. guidance a

Hap Stein

we important in to chance prepared note year earlier we of and could answer end leased we mean the shop think a a that space. hope said the reasonably But which to in that remarks Lisa occupancy XX% there's the in it's as standpoint, the we would and question, spectrum across maintain anchors good

Vince Tibone

And the passage it's specific Okay. Tax since on, Great tenant change just you've Bill? in thanks. any behavior then I noticed one Reform the but know early, more of

Jim Thompson

This is say Jim. would I no.

You read some any seen different indication owners, not but really, at business point. I've articles about excitement small that from of this

Vince Tibone

all Thanks. That’s Okay. have. I

Lisa Palmer

Thank you.

Operator

question next And Sakwa our from ISI. Instruction] [Operator comes Evercore Steve ahead. from Please go

Steve Sakwa

curious, your kind if developments? and acquisitions down, hurdles cost has of changed. both just Good changed have unlevered you for And Thanks. morning. stock guys of Obviously with bond and I'm prices capital up yields IRR

Hap Stein

sense that. standpoint, of that might to IRR a from capital returns and attribute our cost are invested In development kind excess of yes, of one capital you our a number returns but in on well whatever

do one. saying is sell And to -- we to with can NOI see capital with stock? we're our may NOI what buying superior free And to X% the got think of million X% portfolio you repurchase buy where than reinvest I where you is, We're that some the quality enhance and buying on you capital to to do in our does to reinvest going that growth it make into $XXX start a in flow. rather growth acquisitions number that's capital? think prospects that visibility a now its I of of it reinvest shares. So or assets You and acquisitions sense compelling long-term secondly, basis cash

Steve Sakwa

unlevered makes an on guess the I I guess, that in stock IRR find unlevered can than asset the you A Class it market the is IRR on better sense today. a

Hap Stein

there's think I the that a might good be chance that, case.

Lisa Palmer

we will that, saying. to we're do do on excited want remind opportunity. have asset and -- appear We contradicting what about it that doesn't that we're an you contract But we're also under

Hap Stein

that market thing I’ve a as we we're We think a continue leverage that don't in keep the may the market cannot because basis. buy is the other a to may do key and you reinvesting available market. where neutral going the that said, it we’ll market we also. this in thing be may is situation to because we essentially to need be And stay change volatile in is the on be in in mind I capital. And We and

that So, makes we're and the as sense. going it to as astutely take the invest capital sales from

Lisa Palmer

have equity contract And that. sell is that the the opportunity December acquisition in offering also that talked the fund on we to about that we forward our northeast we've

Hap Stein

And that per share. plus was $XX

Steve Sakwa

then a And or things month in of you on I little finality bit I this fallen so window watch your least versus the the your say are close feeling closes out, or on Lisa a were of list six year early a guess list of at tenant that. just sort a and or on have list about I of maybe as still shadow just we that shadow weeks kind today that ago? bit little But pipeline things time it you watch until bit, relates Okay. the maybe bankruptcy to realize touched mean get kind more how or there's

Lisa Palmer

people and both lot And expectations, same you could them will range Our this obviously come a Authority expecting And surprise range. fact why did will our And with some that that that others which really said hasn't at year year. Steve, month our there’s upper comfortable the happen of happen of occupancy. as ago. since well early. surprise our this we're more is all we the as have gave our changed end still come into a from feel has outlook NOI outlook really not which back. property did why for incorporated of they lower their as we changed and Toys the within still best it's then. But Sports is of was end it conservatism

Hap Stein

long but part may more be to tenants whatever bit there be and strategic be mean our term those short little the generate a of pain of is that we timing the standpoint, closed, it's retailer be be be that rents would portfolio, timing plus this better expect that rent range. percent been to that on long-term to year, because often going opportunities because of the And watch happens, list X% but NOI ones will it's of of more if may are the flag long the of time. to refill will it it's haven't we're the issue have stuff able the because and I mark-to-market say we're guarantee, more of getting, not, boxes the than to mean growth X% embedded list a be term spread end able all that even the on range Steve, rate and if not term the from That accelerates the the growth watch it upper and at But out, at better in often that and those we we'll will be some things that not growth a contractual the quality the plan.

Lisa Palmer

enjoy it, discipline more we because we that sales us believe that is And a consistent I and the our accident. if very low reiterate NOI is exposure of strategy growth may amount and strategy our is that keep an result saying NOI that And I do time a have stream. that modest not quality really in with executing a very exercised that enables annually of to one

Hap Stein

in that over gotten if on, speaks portfolio. gone back, A we've have recent is bankruptcy we XX% noting the that meaningful follow released spaces which cumulative quality of worth can to the the we've impact also back store that well I closures and it's of

Lisa Palmer

it.... say can if And

Steve Sakwa

That's it me. for Okay. Thanks.

Hap Stein

it could us. Thank was we you, that for Steve. wish say I

Operator

Collin And James. from Raymond go our Please ahead. question Mings next

Collin Mings

morning. Good Thanks.

like for question as you development just you projects as one into the some the and that. Just at how and are point. continue us the us me, on terms with projects wages bring to that's things just side? far as labor maybe just platform this forward Again, seeing mix, on additional pressure update can impacting moving just on, you you’re what touched activities redevelopment obviously cost And we’re which maybe of seeing in

Hap Stein

mentioned, same is. would We're much Sure, you answer Collin. everyone happy that. seeing increases cost pretty be that I to the

them budgeted we think for I accordingly.

your our that's been well. returns haven't So, had pipeline we've and look if haven't you manage our really any in very tremendous surprises. -- costs at we And to able process, been

acquisitions. you go to the we want spreads and but our evaluate bit, at a see to look at further development very As returns down whether may the returns little you look look we at encouraging those, versus look we we some pipeline, we drop when forward with term quality long growth,

Are on return? reduction small So, get at every believe term, own. not, going project project but probably we to very let in we in stands let its to going that look we long one those. Teller of every --- we're a hard

more have with as are development maybe year, probably year. It's developments. see to a it's closer bigger years, consistent aggregate years. in mix versus past you shift past is our pretty So, returns XX/XX redevelopments in throughout you'll the been will this the see more XX/XX And to What starts probably in we between redevelopment.

Equity of we the pipeline this over years reasons we some encouraged as five that's very plus start of merger and embedded the of redevelopment the projects. So why we're One compelling next one opportunities these like

Collin Mings

Okay. Appreciate the Thanks. color.

Hap Stein

Thanks.

Operator

[Operator our Please from Instruction] question go One from Chris Securities. comes next ahead. Lucas And Capital

Chris Lucas

Good morning, everybody.

ones I quick me for two think. Just

remaining lease either to three the toys expense you on were relates the that Toys, have, changes as any rents the duration, terms there lease On or to reimbursements? it

Hap Stein

I get into No, cherish real indicated, our other to any we modification three. on back not leases. we would the did as on enter estate dialogue And

Chris Lucas

level? fall of would Or environment elevated fallout this level? calls, I'm picture then a was I a current the context an guess bigger And I more the of tenant in Is you. rate And longer Or ago I one level Thank a out maybe to the timeframe? how question, tenant compared think guess this trying this over maybe period? Okay. historically low. XX-year essentially is normalized three average a your you to -- below understand, is on years

Lisa Palmer

term, term, again that and bankruptcies that we've of low Regency increased back has long than and have, are to I a this mean declining over a slightly closures If But at you the --with stayed the the below little higher portfolio. is result we up own the least tenant and stayed of portfolio in be our tick that GLA. it I we we think our today, enhanced your go year's a And for that it mid-XXXXs as bit. own I of long-term to did low of look average. And still really merchandising it's our was long and over of the the and and portfolio trend quality terms mix. But levels last forecasting it quality year, of percentage what and compare what the that then we really if quality significantly to fact past

Hap Stein

on color bit little further Just that.

the be disruptions store so immune don't and to out and accounts -- occur. of out closures is our will from business insulates that anything not the operations occurring are expectation some are us there is We reinforced that's is, think we to is, say normal our further recycling, there the that the of do not and We we're focus And part to what portfolio that. -- continue that that's the to team we want by of in the that immune and of going quality the to

Chris Lucas

morning. you. Thank this your Great. time Appreciate

Hap Stein

much, very you Chris. Thank

Operator

Thank for turn floor the back the to any to comments. management over you. concludes closing like I This question-and-answer session. would

Hap Stein

Thank wish a your in very wonderful appreciate this you time We that interest you have and morning Regency weekend. much. and your

Operator

your Thank This you concludes today’s for participation. teleconference.

lines this You your disconnect time. may at

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