Regency Centers (REG) 2 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Laura Clark	SVP, Capital Markets
Hap Stein	Chairman and CEO
Lisa Palmer	President and CFO
Jim Thompson	EVP, Operations
Mac Chandler	EVP, Investments
Mike Mas	Managing Director of Finance
Christine McElroy	Citi
Jeremy Metz	BMO Capital Markets
Richard Hill	Morgan Stanley
Craig Schmidt	Bank of America
Samir Khanal	Evercore
Brian Hawthorne	RBC Capital Markets
Vince Tibone	Greenstreet
Michael Mueller	JPMorgan
Linda Tsai	Barclays

Call transcript

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Operator

Greetings. Welcome to Regency Centers Corporation Second Quarter 2019 Earnings Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

conference Laura the turn now over Clark. to I'll Ms. you may begin. now Clark,

Laura Clark

second welcome earnings and morning quarter to Good Regency's XXXX conference call.

Joining Chairman and and Chris and Hap Mike Mas, Stein, Palmer, of SVP of Thompson, are EVP President Finance; Director Jim Chandler, CFO; me our Mac and Operations; Investments; EVP Leavitt, Managing CEO; today Lisa of our Treasurer.

materially in performance, forward-looking risks and On forward-looking involve outcomes results today's statements and call, expressed statements. we Such from may statements. differ may the Actual future those discuss uncertainties.

Please refer with contained filings differ actual our important risk the those identify to results SEC, factors in from cause statements. which the forward-looking that could to

earnings reference found reconciliation non-GAAP to GAAP Relations measures our release will measures. We supplement, our Investor comparable certain which can and of also on website. financial be these provided a their We in financial measures

well Hap, Before redevelopment This early want I to to market turning mention those will in properties us, you join hope be We to event recent will local over feature quality Hap? would team. that to call of upcoming event October. market I'm who like acquisitions more you high many details able as including of happy provide the showcase to Raleigh our and to attend. and our our developments, as

Hap Stein

Laura. morning everyone. Thanks Good

I'd our Before future, that outlook to like the announced the for results for highlight yesterday. and changes year discussing the remainder and of executive we

transition and Executive will Palmer that President Lisa Chief Officer will that become and excited Chairman. Xst, to extremely at effective Executive I'm time, I January XXXX,

Officer. will become Executive On President August Chief Vice Mas XXth, Financial and Mike

Investment transition recognize succession roles appointed last this several will be Chief within Thompson the Jim the we no result Operating for and has Officer a will is crafting Officer plan of the Chandler have addition, This well-considered In that been Chief their years and that company. Mac hesitation better to Regency seamless. be and

truly cornerstone the the together professionals gratified have are Regency's our values and wonderful and with may business. the people of to work build the best company. deeply worked a in company I'm to

is embodiment and Regency's Lisa success. of culture the

Lisa our execution. the past ability our Over making that culture business, of last consistent our of through the well our capital strategy, have to partnership execute devotion vision, decisions I in our success. it's and step this in Regency's to I through the on the markets and of understanding And the position strategy, continue to on several way her as Regency's been Regency, special build together years, our know to direction experience every partners as

of continue of executive support the centers. being and people, developer operator, shopping and the team our on of we'll the with national And our preeminent focus owner,

which quarter, Lisa, Mike operating will we're leased, This reflected environment underlying the levels. is prior to high fundamentals. Now a healthy and view is Mac, recently how in net favorable our the that more growth in bad at in a debt year's includes in XX% portfolio and over single-digits discuss and Jim, detail is in

move-outs leasing the back of as the resulted has as year. occupancy. our of This as in the well exceeding half said, half of for the year decline the the timing as paying not new assumptions quarter delayed That well rent a in in second first impacted

end high expectations. result, finish our of expect a the growth meet doesn't to towards range, As now lower same-property we which our NOI

free XXXX, in year, translating this and generate However, continue flow core earnings lower into meaningful of moderately in cash growth substantial we spite to AFFO. in NOI growth

XX%. total to highly and the our engaged the leader sector capabilities, and and to including continue all, center team of will quality our of our confident position returns in of development advantages in generate our high shopping be combination important has of the strength strategic sheet portfolio, X% to of our I'm Regency Most a unequaled balance --

the turn over future I'll Executive Regency's call Lisa Officer, Chief to Palmer. Now,

Lisa Palmer

Hap, and Hap opportunity. the you, for Board morning, everyone. this and tremendous thank Thank to want I good

such of to and leader truly We fortunate had are our an have employees. impactful company our for

and Board in a for of company exceptional leadership -- Hap with seamless transition. team an the the our guidance senior

said, together realize our along is Mac, on we've continue with to closely and and key Hap and company so Mike, As and vision achieve the forward to worked and objectives. success ready team as Jim build past Regency's our excited entire we move our

execute like the strategy. to things quarter, team our highlight to I'd a to Moving few on as continued our

portfolio a including the, just We projects is talk healthy at bit. in deep. Culver leasing which in quality pipeline XX% market Mac remains leased will a and City development exciting high redevelopment about Our started and our new felt

We Silicon Valley, the neutral premier acquisition fund in are sheet our balance of centers an portfolio able quality further the and a essentially through to shopping the leverage we of enhanced basis. our on strength, non-dilutive with acquisition

flexibility cycles. million and through Our flow, capital provide access free to dividends, $XXX after conservative balance future and of cash approximately sheet to continue at which capitals financial substantial is

importantly, Corporate to Report annual X% highlights our our and our X%. to core published and And corporate recently people, ethics commitment expect now environmental for the year earnings Responsibility operating best-in-class over X% our we grow communities, stewardship. our We governance which AFFO and by to

presence. to the are portfolio benefit successful Our continues retailers expanding from physical that their

their a strategy are substantial success. remain high and of grocers brick-and-mortar Our at as traffic the component center volume locations critical their driving to foot

These retailers service, initiatives. technology as shop customer are attracting store value, commit the continue restaurants they and and to best-in-class to desirable experience, grocers resources

to NOI our as opportunities. well X%, from spite will that over average meet redevelopment proven positioned has well portfolio execution continued contributions sector, the and strategy retail in confident which well-publicized of of of The pipeline to growth Regency the attractive of remain as from the same-property is strategic long objectives. these growth term And we extremely our outperform our by positive achieve high quality headwinds supported our organic objective

it going Sorry. Jim. over I'm Mac? to hand

Jim Thompson

elicit as X.X%. rent quality, and NOI the XXXX. Same-property the well in our and This year by first half The Fresh demand. evidenced of new first location to in by is appearance was of merchandising leasing half growth, good year Lisa. our growth renewal in first volume supported continued of Thanks the of half which the properties this of as Look X.X% base exceeded

and levels a that are debt near of year both indicative tenant healthy Move-outs bad prior remained base.

capitals for managing and are high on We embedded line our single-digit of achieving rent leasing astutely rent spreads and leasing contributing XX% both quarters. executing straight to are four growth which of the trailing increases,

lease well to half year. well the as of continue relevant which be as first delays diligent deliberate timing negotiations That site Regency and and in as in merchandising said, the contributed selection, retailers lease as and to

where striving same-property continue to environment construction on executing this merchandising like We're associated is markets that cause as the retail process long-term. timing over quarter. delays. our addition, to proactive In growth with occurred the to well management and permitting a NOI examples our I'd our the share few mix as fortify in also notable asset

a premium that is Center former we proactively captured quality, gym took XX,XXX from over concept was and Equinox. Fitness, value-based at feet in to XX% a Square fitness merchandising square Riverside regional our a of a Chicago, subsidiary the operator of accretive rent that At that operator. Blink space upgraded Blink a a with total

to South demonstrate These that examples and renew Also rent many right thoughtful and resulting when a Beyond's lease on Burlington Bed, well are we others & Florida, with new making in decisions Plaza in declined as as are space in spread. downtime. request we that We and executing captured at even being Sheridan reduce the rent. Bath XXX% long-term

filings In regards and are to we potential bankruptcy retailers. monitoring rationalization, diligently future store launch list

working desirability given actively teams number we to marketing the of and our often Should of with. these Our spaces, expect many prospects get have merchandising there are we're spaces a upgrade backfill the rents. these higher we local real estate, been at back, of

was information the Barney's and eventual there's the recent file to potential The outcome. much around new news bankruptcy around for uncertainty

despite location the feel corporate we Importantly, unique this of good in prospects their Chelsea. struggles, long-term about

and presenting redevelopment bankruptcies categories good that headlines, and grocery All closures upgrades dominate restaurants, leaving users merchandising and off-price, up continue making state opportunities, to the us like for said, the of expanding store these Mac? our and business. about closures the entertainment, fitness, are feeling while

Mac Chandler

Jim. Thanks

This Regency's model deliver of strategy, over an on cost-effective free extremely billion years our clearly and development starts favorable allocation $XXX capital and dividends. and self-fund with differentiates $X.XX objective, us fully basis. flow cash which and five enables redevelopment Our annual after start capitals business million to

the marketplace of second quarter, over the In the sought-after market leading several and average by development more arguably $XXX,XXX. Urbanspace, Southern as in operators most area retailers. people started in build extremely California. restaurants as Culver is of we with compelling, This than dense and City, one Culver with our be terrific incomes ground-up anchored of hall will household market XXX,XXX The local well project

is extremely We're tremendous in our being in its redevelopments from The opportunity The value quarter, most foot project benefits four Abbott. and exceptional excited Square, as this largest started demographics. Cambridge, prominent also the about location We creation. Abbott traffic mixed and known world-class use this the Harvard

in-process are well. with comparable for the XX% A and nearly expected leased Our and are remain developments cap committed The rates redevelopments well yields projects Class comfortably above that performing properties.

future Westwood as on NOI. are $XX contribute opportunities in is in-process Shopping example One redevelopments Bethesda. Our select Center well redevelopment over to million our as incremental track such of

we have details look more and we secured this plans that to our year. advance forward Now, entitlements, our discussing to later continue

acquisition in Xst, acquisition As portfolio component strategy investment the through of we've On our with assets. our a communicated, we is foot of square local The and Trader just and XXX,XXX affluent Pruneyard, center July sits key the Marshalls in this a and iconic did superb enhancement previously quality heart close technology Valley's retailers premier of neighborhoods center the restaurants. Joe's most proximity and of merchandize anchored to employers Silicon Valley. by is West This to

significant a another contribute Pruneyard is excess not three acquisition a of foot The of Pruneyard strategic The our X.X%. to fortify but and that to are to IRR serves our in were generate This Adjacent expected NOI X.X% yet and an part NOI which of a CAGR to transaction, growth. hotel, traffic. is towers do example office

allocation an capital will strategy, with growth reflected fund lower unsecured in to debt our of upgrades. with which we are combined our both Mike? Consistent market, the dispositions guidance in plan transaction

Mike Mas

our I'd some updated on color Mac. earnings guidance. growth Thank you, provide NOI like and same-property reaffirmed to

First, guidance new our we degrees of X% activity. range renewal are move-out growth around which same-property varying maintaining and of NOI XXXX X.X%, initial is centered to

of that morning, this this growth NOI year lower to over activity importantly, discussed the the the activity to has expectation end first the our closer more that timing of we've As same-property of for year half the range. led end leasing to current and, occurred net

also not outcome. potential that the remains fluid. much is note as very And for around reaffirmed eventual And uncertainty there please clarity, Barney's does range mentioned, loss that as Jim from situation added our incorporate any

exposure to basis impacted be of points rent could Barney's NOI growth year. up annual same-property $X.X XX by million, maximum to Our this is approximately a

our year, due bankruptcy, XXXX NOI this As deliveries. growth to into long-awaited from falls previously the same-property we muted have strategic contribution X% our the with primarily range objective, communicated, coming below redevelopment Sears together

consider we over the ability five portfolio opportunities of confident pipeline, objective redevelopment as same-property to the of in forward our achieve visible our X% look and the we However, high growth average our in to remain quality our next years. to

to to receivable. be planned This per the at non-cash FFO, an efforts non-cash impacts of allowed the and Turning reserve G&A of constant keeping resulted $X.XX number while from push our us share expense tenant's a per the total unexpected charge our more in for share. which situation full favorable will in credit by Barney's line of $X.XX offset the disposition, of the other in approximately a year positive straight including midpoint timing slight tighten

earnings our we grow the a non-cash Regency As dividend. reflects to and ability and reminder, as performance eliminates better metric more operating to for and use items closely measure non-recurring as certain to cash earnings core a like it

disposition lease In of the second expect grew given year per X% now we share to core for lower earnings for X.X% by timing, to And core adjusting positive and operating operating new G&A by full earnings accounting the grow X%. change. the the quarter, we after impacts

You X% we guidance. wider may when with recall that this was the initially of offered floor range

and we remarks, your welcome prepared our concludes questions. now That

Operator

this Thank question-and-answer time, [Operator a you. be conducting session At we'll Instructions]

you. Thank

with from the with Citi. is Christine question line your question. of Our first Please McElroy proceed

Christine Tulloch

everyone. morning good Hey,

term and the and but offer well to longer Just miss we'll just the Katie, I but around. you and team. know still Hap, we plan, you'll first part the rest definitely congratulations in And be of Michael our to fray, wanted deserved. the Lisa Obviously, of

but it's timing some does to NOI of know range follow-up, it's by -- I that impact issues stuff. for in only have not X% -- basis of in sort that? on XXXX, you a back the of to to plan Mike, get potentially sort that growth know XX XXXX Does the and this XXXX. the derail rate same-store Just same-store this potentially Barney's points, yet does but I

holding I it's their know having specific rent, where them a Midtown And re-lease would versus with for the for normal regard store that feel on focus about been not that today? how store, space you to is that more to has you. market but

Mike Mas

the appreciate what NOI I to Jim, but first question think Christine. profile. you, around you're I'll question. address the Thank future the leave let your I growth, and asking our me re-tenanting

X.XX a and rent have is next to fail. for well. give Toys and time. and We're to continue going listen, have Barney's, retailers prepared of point guidance impact this Always a I the for assumptions, of We're this large before XXXX not under at maybe point part been. business. year we'll us fail to that. would point as X.XX in retailers is that, that, who a just But who I'm lot this not year Sears, This for have say going

pipeline That it's of and two being deliveries, redevelopment assuming have the fallout. the and past. the and these the we're to Mac vocal redevelopment in to X.XX, very real we're X.X lack communicated and on organically, have continue it's at progress, from contribution that. a just I and is levels this said, we have Again exciting The been is them with -- year make part to muted again that color reason going business tenant we've see

start saw us The You Abbot.

common -- making on You progress is saw we're Westwood. us great underway. Market

average believe that from five point with that we consistent very X% range, be clear future our why NOI will forward year our are in these this which is back objective. of All our

With on Jim comment let respect to Barney's, I'll the re-leasing.

Jim Thompson

right. had you're potential since opportunity. a future that a But is -- our long-term the we ever felt address It really real Chelsea Chris, of bit property that, for estate merger, underlying portfolio. for and

that in little a past. we asset in the unsolicited continues up offers back had buy to improve. Let's Trader but fact, bit, to

play yes, think happen we there's will during should is Obviously, the but there at discussion we estate options at value And get as uncertainty the team evaluating end speak. back. what of amount the of real day, our this we as tremendous bankruptcy, of is to

come So, as more. we more learn to

Christine Tulloch

And you expectation raised disposition mix to you then sort And missed to -- execution anything have distribution the was contract Sorry you've Mac, Thanks. of revision a comments. function the what for Okay. expected? under fund your understanding or your you're for downward cap today? if do and I help sale that, the but selling better in rate of what

Mac Chandler

to Thanks Christy. the taken Street. Nothing the three have then on The under that contract, although to we've properties we're so negotiating virtually three buyer. different out other they're purchase identify contracts we And market,

feel So, it. on those initial interest we good about --

roughly sold at And properties mind, a rate a sold gotten XX And look those then about cap -- lowered caps. than our the Louisiana reason you assets if little we've for on better bit third we've are the is had we've we expected. disposition in that keep of what pricing today, we too,

there, So, the that our good been a of able pricing indication of if properties we to you gives realize. and average the that quality we've in

Christine Tulloch

so much. Thanks

Hap Stein

and Christy appreciate greatly appreciate. you, comments, Thank nice your

Operator

proceed BMO Markets. next of the Our questions. from your is Jeremy question with with line Capital Metz Please

Jeremy Metz

Hey, good congrats Christy's appointees. the there. morning all I'll comment on and echo

You mentioned.

Lisa Palmer

you Hap had before jump chance Thank the me. to

So, thank Jeremy, thanks, you.

Jeremy Metz

that just is what color wondering So, mentioned I'm you of payments. timing opening to for expectation. the any of the you're relative terms on the driving same-store range some rent in give remarks in you delay the some NOI the of that can in lowering more

the But really new. process that? was did would this so but last you expectations. mention heard color built more construction We on think I some I the delays, necessarily year, on any of strategy the that's that assume permitting don't And and about

Hap Stein

here clean a I you and start, again, on me little Let up. it bit. we'll Again, up in appreciate bringing

experienced the we six leasing that due eyes lower first over the we to and our towards And of team's our range activity focused it's timing So, really net the right are are now. end the primarily pointing months. of

describe this average longer had that expecting bit rent occupancy words way for little what the in to and lower to little year, it hoped bit is like lower we're than be for. other is So, our we a I'd a paying

supporting However, it consistent our of we end the lower assumption place range. that the with more is had in

So, year. at the question now look the we is

the very are that both timing net more our time, of eyes front this Importantly, about our as increase outperform. move-outs comfortable results respect assumptions on although it's us at remain positive ends pointing this as with obviously. with we the to on in time that, of what expenses in to you give more well bottom. And At assumptions in point toward year, the point

So we'll on that. focus

really Jim expectations to have it's been timing, and and line roughly healthy, speak prior with demand Volumes in But years. line very tenant again, they're in roughly that. good. with is They're will our

Jim Thompson

Jeremy, on been shops, just bit on today. which little we're volumes the The Yes, at our of consistently small is XX% has you frankly a or top Pipeline piggyback strong. been space to look the range, been have that. near I'll the our When in at solid. We shops XX% sector. at XX.X% quite at

that still to personally, that and optimistic opportunities bullish I'm our that remerchandising And efforts and on range this range. execute the XX% higher remerchandising. on to continue execution move redevelopments bullish we in towards of XX% we're We the redevelopment, tenant the So, as can demand. continued keep and will we end think of these

Jeremy Metz

to get the on? there just be with the maybe you further or value-add the think second on stabilized just then in in we type about Helpful. can acquisition, sitting here. Pruneyard goal you that Thanks. more pipeline terms me And as upside The sticking of any is can notable of or this aiding a potential just can And for acquisition, should there acquisition, line

Mac Chandler

Mac. Jeremy this is Sure

this CAGR in CAGR great next to commenced with pick we've the can because as discussed, X.X%. five that kind haven't about property nine up over I think various at to expect should rent quickly that the are in there's is going be, short-term, months. you buildout tenants XX-year of happen

Further the opportunities boxes sets market and a out, -- out, XX other box, there be there's couple years the of up. itself basement some maybe than roll more that sports here, will interesting could XX really

just things a office, demand of to ourselves, for. want demand with You like reasons we'd of of different the there's is lot Don't do it get multifamily, tremendous long-term, kind property but can that. one we that of the the look ahead for

and are couple really we acquisitions, really prefer hopefully those properties are more our As that properties that we're There that color we little of midsized already looking and would use close our and other that can to focus our a we a on. two next acquisitions and those team, platform, getting guided were quarter. at, you give that redevelopment projects capital, bit have on

Jeremy Metz

Appreciate. Thanks.

Operator

next Our from Hill question. your proceed is the Stanley. line question Please Morgan Richard of with with

Richard Hill

or I how straight-line come the tighter Lisa guide about FFO. Hey to consistent in at rent want range Recognize benefited charge. to onetime Mike, kept much $X.XX of a good you The FFO the guys. morning Pruneyard despite non-cash think the and to back was

we should a about think benefit mean The that? that So, that Pruneyard offset as maybe $X.XX

Lisa Palmer

as remarks Now, we're fact earnings able but that pretty cost think the essentially rates commented we're I position that Rich, essentially seeing to that funding as that cap non-dilutive in this in although mid-Xs was we're on didn't It and with cost the I debt. my the guidance going a and to the partially neutral. disposition of -- we're our say offset in disposition prepared well I doing be going good this

neutral. essentially it's earnings So,

acquisitions assets. our part above make allocation lead to about same-property NOI It's past. that in growth strategically the fortify you If sector that we've And of our been acquire why sense, these to everyone talked premier to remind and to no growth. strategy just important NOI it capital accident maintain an able we've continue it's just with

in And that's so, important the to, the we're quality don't I think our doing part strategy. of we think need an of very continued we of enhancement but -- opportunistic the portfolio

Richard Hill

guys. sense. perfect Thanks makes That

Mike Mas

well dispositions. The FFO. as G&A better a indicated offset slight was, on call, quick we expectations Real timing charge as enhancement as our the a to to non-cash in

Richard Hill

it. Got

that's on the from everyone me. call Okay, And congrats to well. all as

Hap Stein

Thanks Rich.

Operator

the of Our America. Craig next from your proceed with comes question question. Bank of line Schmidt with Please

Craig Schmidt

and talent I'd in promoted and Also congratulations like all see it's company. those to give executive developed within to to on Yes. change, leadership the great jump the

congratulations. again, So,

the its reason wondered maybe about a and allocation I capital Pruneyard, versus opportunity. to acquisitions it or could more upside redevelopments we if discuss of compelling just what of asset the was bit was talk buy little The quality

Hap Stein

use majority cash are fund our of the program. the I that those think redevelopments. redevelopment and to development today number of million And our investments capital, flow, free of is $XXX one

there's And quality core we're the second priority be then I Pruneyard Mac growth looking would acquisitions upside. like -- And plus potential say project The will that superior right a know in that. when implied and acquisitions value-add like in prospects the acquisitions at with growth X.X% meaningful third becomes a category beyond high NOI upside

on And as of right it sheet earnings essentially Lisa given those forward neutral the can opportunities assets. add balance forward. we we're funding superior going think growth on with we mentioned, and now And basis NOI value and/or going our through and do sale

Craig Schmidt

Thank Great. you.

Hap Stein

Thank you, Craig.

Operator

of proceed The Please is the with from Evercore. with next Samir question. question your Khanal line

Samir Khanal

everyone. Good morning

Albertsons. move what the bit as to They're It you're So, again sounds starting just to just the gears they leverage. exposure seeing have. ground like on a see know addressing get your I in views grocers. on little to right curious direction. they're switching on Curious the

Lisa Palmer

I'll take that Samir. one,

we've of the really, Just seen even operations better three for of improvement anecdotally continual operations. reporting, the couple generally better past sometimes but store years sales potentially, Albertsons, actual they're years in

right they after and their pretty operations balance under further And sheet sheet improvements pivoted improvements even they their period we RiteAid of kind management and changes, some as that of well, know and very merger, CEO, management tremendous made improving last through as especially their the balance they their in well and their on short margins. that time, really failed in and went

the see sector. that in some the If you EBITDA of some were you'll reports, has healthiest read Albertsons actually to margins research go

headed. that's we're comfortable that's the they direction -- Albertsons so are with which and in So, how

quality even estate the Albertsons above our But grocers, individual really like the above itself is in the we importantly, well have our average. that average, more the and real we quality, are the and of real centers of estate stores

like Albertsons, recognize do with of So, position we the we potential our but risks that.

Samir Khanal

Great. Thanks color. the for

Operator

question line from Hawthorne Capital the Markets. with proceed your RBC is of next The Brian Please question. with you. Thank

Brian Hawthorne

Hi. much I anchor wanted uplift left go? expirations. equity is to big How mention the that of from to

Hap Stein

the We a of both call last if and started appreciate anchor question, leases we legacy from of we the Brian, Investor what that Day, recall our coming portfolios you are due. leases, and combination are those legacy

of that opportunities. A in redevelopment that growth and five-year organic will our X.X% and to and good feel plan supported that be lot all and generate supplementing NOI that remains ability we're with by range this that about X.XX% we

those are triggered these redevelopment legacy leases of Some what opportunities.

Brian Hawthorne

stabilized you it then yield? And those when kind rent? you tenants Or to there? of to on seems get When that do guess And -- XX% when do do start like expect leased. Okay. the I paying get

Mac Chandler

Roughly Mac. pivotal was Sure, with and really we last square XX,XXX -- our including is of sort lease Brian. one of more This committed than leased was stations. XX% feet the last quarter,

Most in excess doing of open, the reporting sales are of the projections. well, operating, tenants

year-end, by lease think we I should spaces. stabilized be So,

doing If at out a you encourage take chance, there we're to It's very it. that. pleased you we get with and look a and well get

Hap Stein

is merchandising looks not also mentioned And fabulous. but exceptional. center place only The the the you there,

Brian Hawthorne

year-end yield, that's be you by do I at like you'll Or stabilized a that was. fourth by mean December? the When by quarter, think you means it X.X say what reached yield?

Mac Chandler

would the difference by and Well, just end December quarter between is pretty assume this finite. year fourth point. I at

Brian Hawthorne

Thanks. right. All Okay.

Operator

from question. next Tibone the line Vince with Please your proceed of Greenstreet. The with questions

Vince Tibone

first First I'm about is changes, on think fund from stock My your you to question Based like assumed over a to equity external congratulations to as for do off, dispositions there fund cost certain curious you me appears equity assume of today? price how guidance acquisitions. you growth? capital is well. it prefer

Hap Stein

flow of before, after priority is million free redevelopments. Well, start after and CapEx number developments dividends, we've with as one one, the to cash and $XXX we fund of said number that

you at And with it's we in look as sense, Pruneyard, we property to that fund selling are in the we then can buy using thought to past we've sometimes that, we we're the a property the past done times whether when doing issued debt. -- stock made make selling trade, acquisitions equity. And or trade at beyond back when The how

Vince Tibone

sense. forward. That it. Do makes There think of significantly seemed going centers Regency versus kind buyers, your say million next could ticket large dollar strategy to small is potential My Got let's be acquisition centers? you $XXX-plus more items? buy fewer

you curious, there regions And actively exposure? are any looking our was to or just particularly then I markets that today are increase think attractive and you're

Lisa Palmer

then use reiterate extent on color our -- in the the that of opportunistic. value-add to ability we're to and of the we're said just the or we I'll the capital a shopping do markets. it But basis on And Hap fund centers I'll to with continue able what to leverage-neutral above-average have terms and fact and that are we'll component basis, with we're identify that. earnings-efficient and acquire able essentially then growth to an --

our of organic I'd our But are balance strength the we our redevelopment cash NOI about growth, an our reiterate sheet strategy. $XXX of need We to are that additive to. When and Acquisitions talented don't model, of part and think talk it's we same-property it's development it's funded important free that. and team. million generally also flow by it's the business our

Hap Stein

the compelling opportunities. looking -- always market don't in for the we I are Yes, most

bought in in center we've center ago. what and We see great bought the years a of great coast. in a buying You been Raleigh. in past bought we can number the We Florida a

demographics the market, So, the intersection, the dynamics on tenants. load look the it's centers. at of carefully dependent the also to compared of as the the and health rent We

have buy it be would would again? those factors I we just large discussed. we it for could We that look another So, depends, to acquisition but say compelling.

Vince Tibone

Thank you. Great.

Operator

Instructions] you. Thank [Operator

next Michael of question's with question. The from the line JPMorgan. proceed Please Mueller with your

Michael Mueller

whole obviously congratulations from team here And as Thanks. well. our

the from what the tell your same-store Pruneyard guess of Or comparable Can is CAGR. to NOI coming you or about those it The I first And combination above mark even bit for comps, the to bumps So a it? market are levels? outsized is? higher growth little portfolio

Hap Stein

to of Sure in and center growth surprising have our we're the portfolio. strong overall what there better to Michael. and inheriting not the we But that demographics. it's than the the been able steps, embedded the strength market due been strength tenants have of rent -- get of typical bumps the is of Much the of given at the least

for profits given up time signed tenants higher over higher tremendous So realize trade because bumps to fully areas. they expect

So, example, of those little back there bit market one -- very of It's there's to that's it's box much not driving a big one But little is lease-to-lease. of model. coming six a situations, year center. that's in every bit for isn't, in the mark there

Michael Mueller

okay. it, make ABR watch list I up was brought aggregate? know the your of up list earlier. Got in What watch portion the And does current

Hap Stein

question. pretty where a We internally It's the financial. of beef like aware a extensive good be issues, we like watch up. to and longish it see give be use a answer. to teams which We I'll you list we can

real-life really put you them frankly, that's from absent traditional see. list we've occurring. than has Sears shrunk That actual aside, bankruptcies bankruptcy Barney's, has actually the and over more time So risk that

rationalization list, be The was store we concepts oversaturated. of closures, may store that just this is second include where feel part use it we we'll and

regard. within fleets that tier, our portfolios, is their very We Importantly, of centers are find just environment, it locations that in when rationalized, upper higher their are historically upper better Regency we do and half performers, in performs that often better.

stub whatever across. And include -- toe good Chipotle they then issue like financial the quality reason a maybe their past with healthy otherwise in be we'd came that food of lastly, the risk that and example will financial -- for tenants to that are

internal So, The rent -- our our has categories, list. been three really on We're that range, and include we that's across do of probably well those Mike. it's X.X% them in percent overall X%. under

So, it's pretty broad.

Michael Mueller

it. was that Thank Okay, you.

Michael Mueller

Thank you.

Operator

you. Thank

your from Please with is of question Linda the Tsai next with question. Our proceed Barclays. line

Linda Tsai

re-leasing do the a everyone. quarter. you shed me basis update had and you impact team. let those a on Hi, Lisa make and add XQ kind What on to on great know I congratulations expect Sears Mike, impact just the XQ boxes? same-property some my the XX of guys maybe point and of in

Hap Stein

Sure.

me Let the range as expecting in question primarily bankruptcies all the basis impact that the handle growth re-leasing. rent. same-property of the half year, and base NOI take an to it's XX second will Jim included on impact the point We're in

Jim Thompson

[Indiscernible] Austin, going H-E-B own $XXX there. use we part of the our start just largest it's by I'm our in city. over in sales. it's to center also north That's terrific And market, -- It's good anchored a million in which that very are center that's is.

tenant great foot great got it's and traffic. performance So,

box and up great existing great layouts, great reuse. it great The for bones, integrity, heights, ceiling really adaptive structural has column an well sets it

So, we've these plans. been studying

we're a offers, likely into is for demand going obviously, doing. for angle like the that strong But a accretive haven't We tenants looking approach picked definitive just that. convert to we're space

take can It using been because existing but doesn’t discretionary a the it box, bit little we've take entitlements. of time,

start months that to to commencement say would XX on deliver more But be year the able that we'll and to of construction construction. next So, following tenants about one. come I

Hap Stein

Kmart LRI, of for the that are have grocer clarity XX last with in the particular at have deliverable. direction Florida that will and of next to that market-leading more an would I in is and the on a probably The Gainesville, little we box, suspect XX six we months and we months

Linda Tsai

quality it maybe closing are that that Regency then retailers less but happens addressing comment just tends to the stores, centers. And at given your Thanks. higher

And and In much do how how market? there? Dress you about exposure of have those terms Barn versus feel GNC, you do rent

Hap Stein

about Dress us, regular business good in locations GNC the it's only further. comment of but way basis This we XX we it XX Our and eight feel is point kind opportunities. can about was then basis And exposure range. retaining really points, for Jim Linda. for Barn, have the

Jim Thompson

Yes, day. to of there's a nothing I we've to of new back. at said, We're merchandising And while. for -- there. an the obviously both we really We've been like have we happy got the watching think opportunity our upgrade end them spreads

Linda Tsai

Thanks.

Hap Stein

Linda. you, Thank

Operator

this Stein will turn remarks. Thank I back the time you. floor closing to for Hap At

Hap Stein

interest easy special. work give -- investment More call successful. been I one forward often with again, with We've been me relationships we is tell. It's feel to communities. good in enjoyed good extremely that, It's of the our for Regency you every more had Once we not, thank and your story than one a really and team. to and look the

much, and you all very thank a bye. Bye, everybody have weekend. I So, great

Operator

This today's conference. you. Thank will conclude

lines disconnect may you participation. your your You for at time. Thank this

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