Regency Centers (REG) 7 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Christy McElroy	SVP, Capital Markets
Lisa Palmer	President & CEO
Mike Mas	CFO
Jim Thompson	COO
Chris Leavitt	SVP & Treasurer
Katy McConnell	Citi
Craig Schmidt	Bank of America
Derek Johnston	Deutsche Bank
Rich Hill	Morgan Stanley
Greg McGinnis	Scotiabank
Juan Sanabria	BMO Capital Markets
Ki Bin Kim	Truist Securities
Linda Tsai	Jefferies
Mike Mueller	JPMorgan
Wes Golladay	Baird
Floris Van Dijkum	Compass Point
Paulina Rojas Schmidt	Green Street Advisors
Tammi Fique	Wells Fargo
Chris Lucas	CapitalOne Securities

Call transcript

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Operator

Greetings and welcome to Regency Centers Corporation First Quarter 2021 Earnings Conference 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 call is being recorded. to please. conference like host, to now McElroy, Christy would turn over the your I you. Thank

may You begin.

Christy McElroy

Good first conference quarter and XXXX morning, welcome earnings call. to Regency Centers'

and Mas, Joining Executive and Chris Treasurer. Thompson, Palmer, are and me Officer; President SVP today Chief Operating Officer; Financial Chief Mike Leavitt, Officer; Jim Lisa Chief

is information presentation are that we a on COVID-XX Please Lisa? posted website. website on and included and may our uncertainties. our will In to business. to the risks more financial results are market materially forward statements including our earnings with which and in and and SEC, future on in filings earnings disclosures measures additional that today's As statements by that we to and in note It the those our performance the our certain are a forward-looking discussion with various reference be posted reminder, actual cause belief company's also financial differ on impact of related possible presentation differ also about have today materially actual discussion These results in management's are are the and Investor could specifically subject the based additional our earnings condition. financial forward forward-looking included from expectations contain non-GAAP views, detail from current future may including comparable descried materials, quarter's business, measures, may GAAP XX-K. and recent risks these today in this Relations Factors most make. guidance the we company's may suggested statements guidance

Lisa Palmer

a has and really Thank at I end the of year. company much far. joining been week come season. long you, for know and an long so and oftentimes Thank industry, past you But a so a earnings difficult also good as in everyone. It's what Christy, morning been us we've

at A about last here you, facing able the proud uncertainty an entire to we like the thank to when and rising we've I'd ago, First, as Regency. to future. appreciative in year. I'm of quarter the contributing continued were team country, restrictions over the parts of always, been accomplish we spoke what really to

We are defense. but still playing ground, gaining

As I'm report over the the really I today, sit we've here turned to three that pleased last corner months.

continued easing of results, encouraged revised you quarter our health the can impactful are forward tenant that We the of continued and We've the California by a in as which evidence improvement in well tenants. restrictions, our is our towards seen environment And earnings trend in our see especially in retail first properties. as guidance. for

re-engaging traffic geographies as improving when greater guidance foot collection. of seen to. have in an we in improving but drivers able this and rent trajectory. this more we to tenant to increase turn, improving and of categories restrictions the open that improvement. our and waterfall from overall, will our they're having discuss And rents main consumers effect an Michael lag. results earnings are trend the on detail, of Some are are allow But collecting tenants are lifting These continue operate sales, still and

positive are by bit higher longer-term, we to as and our expect on that And believe company had some clear rent the our our previously a as of recovery regards for We shined XXXX also spotlight we're in way. basis Thinking a as on sector leasing. tailwinds tenant, collections business has additional well encouraged reserved. demand pandemic cash we a continued there with

the provide in capabilities shrinking the home appreciation months people and neighborhood offer. close their will micro benefit restrictions at last the mile that experienced e-commerce, the have own well U.S. still spending with But a retail value like stores exists, all retail our in tenants of our the meaningfully, to long-term sales we centers, and home. world appreciate the with spiking will demands consumers. And moving component see service portfolio. facing be distribution providers centers As our clearly suburban after we needs the shopping to this both the of from center located, But real locations challenges retailers, and environment have GLA heads that occurring we into consumers ecosystem, that new well all renewed then, consumers appreciate said, interactions, sides the aren't operated and still physical fortifies here in more open-air that for retail that's tents, also the for continue and will appreciation community the acknowledge in convenience be of centers. migration Jacksonville our brick-and-mortar on a This to a and suburbs our of And critical should meeting long-term and retail of

As a work, to time, close traffic foot homes. shift the should daytime population more towards part permanent remote increasing consumers'

improvement. Finally, environment definitive a as and toward the macro-economic of has retail trajectory shifted

have we defense to from offense. company a As pivoted

focusing foot. putting externally. We organically growth, We're not work on front but are to on just capitals our

We are well advantage opportunities. take to positioned of

balance to continue the have cost over low revolver low leverage, one of sector the capital. capacity with in We sheets to best and access

pipeline. cash know, to remind will on only you, ground grow quarter near the a focus the flow, and development to which with outlook. From more. I'd expect that like and ago, even throughout dividend you revised with we to of to a couple Recall generating pandemic, position in are our as to in-process value two continue we projects this creation up continue redevelopment pipeline we future, solid no within Additionally, in reduction added our our we our add free we new expect strength,

move seen with success plan forward of X. Carytown, to X we phase With phase we've with the

our more the feels the mixed multi-phase pace is path our Maryland And pipeline. in and But are use outlook. in we environment and Westbard project Bethesda, still also We conviction better. in-process move finish certain healthier positive today. XXXX to we result, NOI. as the greater The more into recovery To on to that a have up, are back plan our path on

We anchored to office. open-air on grocery pivoting are and bullish remain centers. neighborhood community We

As that better the tomorrow confident today yesterday. so, I've be And than past over I'm times heard today. month Jim? will is several than or better

Jim Thompson

and Thanks, everyone. and able a news period. been Regency morning to tunnel achieve vaccine first at the we've thank the last for November, light this our When comments to successes the announced the good began the see was difficult I Lisa's during echo in regards of Lisa, end to pandemic. we team

getting the here markets, brighter. capacity sit we and restrictions light particularly of today, not of remain As Oregon week, woods We're the we're rollbacks. yet. our increasing is and moving And the some shorter, out completely But in is of tunnel response overall, Coast. West saw last in we the cases. right the to direction. on just in levels Washington announced Rollbacks Governmental in

on what Coast during markets the in translate in As and recent we similar country into seeing foot XXXX and traffic is that orders been we're other restrictions across months, saw reopened. stay-at-home This lifting to rent higher they as West have the collection.

for of slide April, it's improve on foot upside. portfolio X remains our April. period on regions regions drive traffic recovered foot is of and whole catching but our to as the while the opportunity XX% future quarter at collections traffic up gradually Page our billings close continued in greatest to XXX%. XXXX has Speaking and foot to traffic as chart evidenced in and XX% to a deck, in in on still The levels current Rent collections, lags some the have West to Region first of other on XX%

that created operating. on we've are And a agreement of an we've As goodwill to open the pushing they and taken agreements, lot discussed prior a not with deferral and calls, with be right proved strategy retailers. financially, until approach our patient into one tenants has

goal vacancy, and which capital avoid our back to leases leads is turning up. into has to been Our tenants to always downtime and paying space back rent status, to get and

operators and pre-pandemic As I've and stabilized these the -- again level to in and near is levels. at tenant generating with way spaces pre-pandemic quickest mix our get liked the or their past, best merchandising and revenue pandemic working stated savvy we

and Turning retailers, improvement, the we're athletic tenants beauty, interest to include seen formats, leasing, solid that and eyewear, grocers, Active including especially seeing. home cosmetic increased health food, traditional fast home the new open-air and by We've leasing fitness, also services. from mall retailers. and encouraged medical, categories interest concepts, activity personal to QSRs, moving we're

to volume we've leasing have volume optimism, first years, leasing was the new in throughout new as likely quarter consistent XXXX. remained five leasing in economic due last in volumes and XXXX, Renewal fact quarter compared the QX some the well higher pent-up Our seen from highest first the greater demand pandemic. as to was

trends the also was first ahead for both and quarter So of space. pace acre historical shop

of pipeline is confidence activity retailer this in seeing leasing healthy. in And across providing regions, all sustainability we're growth volume. deal the Our

mix shorter-term concessions also the certain remained spreads our to for reflective pressure to tenant see period, the on of direction current table more pushing of have a signing recent initial putting We of and on We've we're cash the market service higher function making and difficult muted, continued today. success QSRs, and a of leases help bridge environment spreads. this them but we're non-essential rents the central long-term through tenants restaurants don't rents. Our this

we market don't command time, over have changing. able and been properties always see rents leading this Our to

those we've rents closer having years Additionally, lot several the initial ahead still in depths of our over to brings rent success rents a averages. strong negotiating we're consistently Encouragingly, embedded with market our that consistent achieved compressing tenants expiration, growth contractual last historical of generally the spreads. leases lease

lower Lastly, We points or but see actually the XX occupancy the first anticipated. move than normally on seasonal is sequentially. our commensurate we quarter, occupancy, in basis down out decline

on still expected. but levels road been of recovery, visibility challenge our also difficult past tenants rise incredibly to been career, we as has improved only had it definite of open summary, their to Some challenging year while country rewarding Mike? this up. expected also renewed navigate to occur and team that the may we quarters, than leases our We're tenant have and environment. most fallout the in and conviction and the one a this coming continues back see my has In unique successfully in more to

Mike Mas

quarter and I'll the morning, addressing Happy Good walk in changes everyone. by first full guidance. Jim. then Thanks, our and through Friday, results, year begin

Including prior current First period of Page tenants. positive defer, uncollectable the shows also our million of recognize XX from $XX as those reserves million more of was supplemental, first on per revenue lease offset uncollectible collection $X.XX by our prior was share, the excluding quarter quarter cash basis which approximately $XX FFO COVID we NAREIT quarter our over that of lease XX% billings. revenues the income reserved in on breakout of can collections, billings you of contractually period income see than as the were disclosure quarter,

moved yet ADR at to basis lower not slightly compares of tenant accounting at stands any XX% cash due accrual back to basis today. XX% stage tenants activity. pool from to recovery. basis Our of move-out ago, quarter That a this cash We've our

importantly, cash up Our Same rates property quarter. spoken collect which the about But to able compared commenced on were from we've same tenants, paying our declined points occupancy basis through NOI excluding X.X% net quarter fees calls basis previous basis year. declined XX sequentially. effective first first occupancy, as property actually we in rent over was to more termination more our the prior XX lease points

a XXXX we last quarter pre-COVID against is that As the up reminder, be difficult first will of comparisons. the quarter more the

great Our shape. balance remains in sheet

another extending capacity, mentioned the hand February, credit, mid-January, down $X.XX X.X owned meaningful and grocery secured portfolio to we held loans our loan. tough have our $XXX lending last centers, on we high of years. cash closed open quality year in recast a term was quarter until unsecured our earnings. shopping a in pay to a times, have XXXX. at even cash we continued sponsors. the term on our line Subsequent early show normal blended leverage trailing million markets, And debt impacts The anchored debt a refinancing on quarter with billion with X.X%. on one remained end, for in by mortgage back those The the have very revolver up and to and compelling used We of demand finished the a retail pandemic maturities From especially As EBITDA comfortable a mortgage of perspective, a for of ago which four rate quarter full balance assets to stronger net secured JVs. our more very general of XX were in no

X As a times we recover. we the as NOI continues back -- low-to-mid our path see clear and to to range

improvement. feel overall And and which markets, in point in We are three reverse you in that comfortably earnings guidance environment, certain two confident presentation. earnings quo, levels amid we guidance. feel to from we course, XX and guidance scenarios Recall a supported a XX of and improvement restrictions and macroeconomic our Pages status to the comfortable such, out Turning continued a of we can midpoint that macro perspective, continued provided rollbacks quarter under that uncertainty investor through first the we and general the ago we our now distinct environment. scenarios: our firmly as From continued rule range. analysis, previous lower our

end to of a from per more positive new moving $X.XX drivers that a traditional framework for are per narrower $X.XX to our more to are guidance of FFO share range. three around that previous major outlook There range We upper with bridges NAREIT share. additional a $X.XX

presentation help the NOI you same-property The Slide and first I’ll change. directly drivers the to on visual of the articulate refer XX two to impact

of back period collections revenue. had $X million collected we revenues. prior reserve already February, is higher provided The in period When prior guidance we almost first

amount year growth impacting by points. XXX such, in our about range, our NOI guidance basis same-property included this previous was As forecast full

range Our is from reflects XX% April. guidance collections XX% be as remaining through about to of year. of of collected forecast new points collected now at midpoint, already the XXX balance through the an we’ve about prior which basis period The the impact

cash of rent expect now from a from year our XX% basis we paying. tenants. now rate on us going. the basis In on third a words, collection billings Secondly, We more through cash non-rent ago. a our basis about January current conversion up collection quarter April added from cash rate higher higher current to other payment in and gives on confidence tenants that's collection rise period basis cash are forecasts rent, This tenants roughly of current saw from

at driver The the Westbard by have we certainty, around the G&A major capitalization. Carytown, million in With greater for now and the higher second expect timing approximately guided is start $X lower midpoint. third a full-year at forecast, and reduction the firmer which overhead phase at we

in Additionally, savings portion we've our departure quarter greatly of share one-time To Chandler, large higher resulting first unwind wrap of from up, we are from nature encouraged first pleased results, it revising the are a outlook by quarter incorporated our was to expensed and Mac today. previously variance. which be

As and more we into environment recovery visibility the cash believe we've gained the economic our of flows.

through that, basis paying; to third, opportunistic continue priorities allocation first, space be non-paying to And tenants rent levels loss shifting back back an be backfilling a leverage organic our to happy ahead, fourth, to look converting vacancy; cash returning take growth; we your As with second, capital to we'd and of pre-pandemic mindset from perspective. questions.

Operator

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

McConnell question your Please comes first Our Katy with with Citi. proceed question. from

Katy McConnell

occupancy and talk to Can more improvement how everyone. trended more you are outstanding the as about cash morning, Good thanks. opposed you in how Great, upside fallout? for collection quarter the And this much assuming little over a levels basis driving potential then XQ? what's collections balance, bit

Mike Mas

let pool the Appreciate a one. that take stats on I'll some basis question. me rate. Mike. our Maybe around up on it's cash Katy, color Hey collection just --

I think go. you to you get need that'll where

our for current guidance basis a So Interestingly, interesting up of That XXXX, we've fourth us recast have driving flat. quarter, so collected lot improvement of trajectory quarter range and XX% a of rents year. quarter tenants. cash we of the in ago. the most is What's what's now from from to kind XX%, is collected XX% first the our the

XX%, as So and cash let March January me sequentially just at to throw XX%. April, XX% in we're pool these month-over-month. to XX%, February

the for everyone, we the rate changed. on numbers it's forward. darker confidence was West are giving it it's move confidence our numbers spoke March it's time experiencing performance April in as this last they that that the and and us the forward. March reality report compared January really early not to to it us success what's February. in itself April increase And today. that's to more going -- presenting all cash -- and rollbacks has It's We that numbers, the to that's the this February; necessarily So our than given the were collection Coast, but QX time, and wasn't the of And

about As lease uncollectible it's When fungibility two same-property of about you basis, move-out about already is can have activity. uncollectible really our than the you range a lease it's it think numbers, move-outs, we projections. on incorporated our but those more about think income into income

we'd on as quarter. occupancy. And for XX%, that's us, I prepared about points like now XX rent sequentially the So up XX% to mid, effective in net talk we're in remarks, mentioned and first the the range. pay basis Right

net and in us, to is converting for rate, that move basis status. troughed occupancy paying perspective, forward our from behind we cash tailwind the tenants again we're to improvement. we've And we're So non-rent think from a effective that starting

the from the for And ranges, is supporting of on higher then basically, As we'll you think cash the end cash ends the rates through the upper quarter. the improvement and percentage basis end. us gradual of basis call tenants collection about of year midpoint bottom the paying lower more as or first on

a Just million nugget, I basis helpful will, find $X rate collection think on of revenues X% tenants and Regency. you which is to about I total little cash

our you midpoint. when down $XX the million from that's range growth the up of about So or same-property roughly think

to that. that'll range, that out X% roughly on a our a don't about to we range. the to frame It's of help our So tolerance XXX% hit Within end. get upper guidance you either collection have end

helpful. you a threw hope I that's lot Katy. So at I

to follow-ups, have take any happy you I'd be If them.

Katy McConnell

point? embedded this for for guidance That's to year-to-date, topics detail. then equity to And is anything really your all at shares that? your helpful. switch given in And in what's outperformance the just that Thanks much there issue so appetite

Lisa Palmer

raise. in equity, earnings We it's anything capital And not is accretively long-term really it have do so. issue that embedded to in a earnings source We we doing record to track that. And able put on equity a long-term for work great to -- growth. growth the equity and basis I basis, we an a Lisa. are view it's -- our do fund take think guidance Katy, to extent will a that. I'll have it we

our and compelling when tied always still accretively. flow, acquisition, free And use it will the development cash it's use opportunities, in so we opportunities. quiver, can funding, pipeline, an to one we that arrow So opportunities,

Operator

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

Craig Schmidt

Great, thank you.

As up, or BOPIS same less? seeing you the the are continues country more curbside activity open to

Jim Thompson

is this that. I'll Jim. Craig, take

more we're anecdote, all the you talk of look As brands major you'd of for expect, at they click their talked to some historical. seeing seeing collection We're a lot form Kroger, to arrangement. interesting In collect actually. is as if Xx -- program indicated I and BOPIS

the here picked stay, it's product traffic of an at store in So people getting best is grocer. to method car the store to getting driving is able being at for have the it's clearly curbside. up the the to still leg best delivered I additional or obviously to second But a is consumer, think it

think So a definitely to that's stay. here I it's trend

Lisa Palmer

And proximity and additional to is any mean our we like that different traffic shopping benefit home. to But choice look will into us. a becomes their shop really may We eyes right, centers. be where it in space. people's when that I still the trips. they centers something our need consumers of we that shopping whether it's on benefit are Craig, goods, They like to to we think center close services, it go are right. And that or the to our more close food. It's homes,

Craig Schmidt

retailer's question and and I grocers. a developments, follow-up confirmation thanks are here is agree. it the to new for I I particularly benefit No, be, the that for the appetite see would what beyond opening the stay. my guess early

Jim Thompson

five I'll our leasing, in did a indicated evidenced out -- real there. QX Jim we're by years highest again. the seeing XXX,XXX in QX leasing strong in prepared activity as The as new remarks. we feet is

and mentioned into that X current Phase a Cary, We're Phase X. X during very on -- Phase pipelines pre-leasing a space. have XX% Phase That's the get pandemic leased Our good for strong. X pause Carytown appetite product development Mike took were to diving and obviously online. that are

activity existing So portfolio. leasing good we well are seeing as new in as

Lisa Palmer

on And get that so pipeline really focused kind we can and an levels our to pre-COVID on back continuing that of spend starts of in development terms annual to basis. build

Operator

from your Our question. next Johnston with Please Derek with question is Bank. Deutsche proceed

Derek Johnston

it structures that you is morning. lease seeing dedicated Good seems related Are channel the the capture methodology clicking an to the that like omni rents opportunity sales? any parking And assessing push clauses? everybody. for discussed pandemic, you co-tenancy Anything to for rent, percentage in changes bit? changes Hi, since the to in collect a hard given especially

Jim Thompson

lease the but change. good answer Derek, structure on changes question, short no not on the to is margin, no I real and -- guess really

seeing leasing from I a think thing negotiation the from one is standpoint RCD. to we the are time

permitting et is a generally decision ability very taking how used with everybody's be The their based pay a tenant tricky holding. become terms and are than deal become longer, that But that to I cetera. think performing but are trees of metric internet time sales longer, front-end taking the sales. to is rent, other extension, muddy it's rent well is -- is upon that's their percent

don't it us compare tool now I evaluate not parking, trips and point, do very our it's how real at area, tricky, the But we to cleaner rent does it has data generally help addition sales, in differently. to a of them a forward. potential whole distribute accommodating sure or our we're don't that product. think that's just tenants to rent, is -- We to to a exposure this reported. little tenant location. at their sales to going dedicated become percentage at which tricky to percent really is each helpful get much a but think a we in lot I cleaner. least In help volume for online, with going have But work, some of a is I'm don't that place groceries, has us a It's been where So

looking to impact traffic as drive successful at to that be as as can not as as much stream ability and continuing their rental our a they as we're anchor. necessarily So

Derek Johnston

Serramonte? you. expecting still color some second the development? How half to given right. project? as a shutdowns, the notal Can around leasing and large Is XXXX in in give buzz location the All pretty and it the the and scale Thank it's you about excitement to deliver

Mike Mas

disclosure talk a expand about phases let with project. and multi-phase Jim Derek the start the But going -- multiple project. us. over a I'll years will It's it's to for

think So large the we're of visibility is defunct see the I interior what portion phase previous project, on is investment on that sites. we'll the to some retail first we're them delivering there some together into that the with building which will replacing new scale all include the pads making exterior out

of So this to approach will have expand a multi-phased in will the XXXX. point forward. deliver the and we'll rest multiple over project lot -- that we But from confidence years finish the

Jim Thompson

will some as within mall name Yes, them recognizable. really activity restaurant activity quality brand with the our as junior interior tour. larger just I tenants leasing get today that anchors, far merchandising think mix. We'd mall, executed real will high-end enhance good but we've call a I

opportunity with that but box, space. come some J.C. anchor good are to work more continue We Penney to traction on the on we getting that, on

to regain some back estate. happy in the in consumers we're the there tenants we're So for back real consumer are environment. the marketplace confidence continues out is it. a It's as that overall, we're that open definitely there's fantastic. very getting we And business, -- -- It's love the happy, at buzz and

Operator

Morgan from Stanley. Please proceed with with Our Rich comes Hill your question next question.

Rich Hill

They're on in transparency the Hey, nice morning, quarter helpful. good numbers. thanks Congrats for and very different your various guys. the

had a as leasing maybe volume trying and look, So the it about can think as help feared this, And is if what another XXXX some is than in arms by mean out we knowledge. the in around XXXX, have I'm been accounting forward? normal the the way, Moreover environment and collections. trying direct of should my better reversals to a seems we some you get new itself perfect it for of does not that lot cash evidenced straight line like to maybe we things so set that going

I just a is through -- question cash One maybe leasing just same-store two, XQ leasing could like, can have relative talk questions. the how about have was. I and if helpful. NOI those benefit? an ex environment? negotiations two would relative going, about NOI? to to number would strong collection the and the the same-store us have fully past us what But appreciate in same-store five idea then, how XXXX rents look I what What you that -- years, And So give are you been be the maybe factual think

Mike Mas

hand QX on in of our Really a to Sure. impact quarter. XXX boost to basis off Rich But the quickly I'll and same-property rate period Jim. point it prior the collections was growth

Rich Hill

Thank That's, really helpful. you. that's

Mike Mas

Sure.

Jim Thompson

Yes, Rich.

I board. in think indicated, I As the and across really the of general leasing terms appetite, and types uses, we're seeing

the indicates have been coming and fitness the when ones have personal when kind the coming me see been most, of of you folks back to most there even which they going obviously All marketplace, those in there with to impacted the me be table, places. the impacted are new step for them back capital to place future. that the are with these into comfort services but failures, is It a gives ready locations. that will is the people in And new there

overall, good activity for So seeing growth. well as as we're essential, seeing rent we're again, really

spreads and more rent back we're more challenge as those far selective being non-essential in go. as build folks creative overall helping without business think their difficult those and I spaces, in more

great had because particular spreads. think a mix releasing in quite was structured three, for where shops bump had was in But by It and on landlord years. our a franchisee rent But capital his driving between [ph] moving with plus we're it's rent deal to on extremely anchor years. been Long-term in know, But and traffic you over little because and that, opportunities. kick occupied the we box. was low to having white that going COVID we that quarter, bump drive an frankly well some in I we South It's helping down an dependent the a the the go outlier this build heavily is space XX%, said, summer, color zero center. been previously And some four generally to year facility. perspective I from structure that was northeast, have who capitalized deal, for biggest the start had a business of to education negative tier anchor anchor As it appropriate backfill was Florida give our it's impact and long-term is addition vacant, for this mark-to-market deal that the you like location. to from fitness said four vacant --

maintain So a see to changing. that time. we market really high conviction leading always very that over able we'll centers And been to have combat rents our continue

that's of long around. kind a So way

Lisa Palmer

I are productive and our best -- And the be to said homes that and going know consumers' still rents quality limited in as if providers were that. what well-positioned that impact much bit service picture, tenants And just know the where I that new those just we sector. at that. decline where of mean own here the is have our And little centers supply if retailers limited we a we supply. supply speaks so bigger fact little say close new uncertainty. the we the to today year that add of I seeing so expect you at feared would And I we spoke have. about think really, number think Jim I thought we're remains capture offer. all a just may we to we I I locations. quality also we some would might much ago about, And leading in to And that in in stores. pay that and market equal in it better very time, And of really and that there by we that be. may we Mary, rents. talked willing market that we all to gosh, many competitive because spoke And They we information tailwinds that see terms we're what they're shopping sit to is highly one, not is to performed What can had our

to believe grow from and point And so forward. forward market leading demand looking I this will and rents that those we like continue NOI

Rich Hill

And six months ago, just ago, I back pay that three was Hey Yes. tenants told certainly thought I it and have would that's rent me really you follow-up have to question, XX if helpful. rent. be one you, months asked current months Lisa, able ago, would going to were unlikely

pretty double outlook So future pay they I that's a think the if for rent. bullish can

XXXX that does this rents How thinking levels XXXX growth? just we about as So that are point? modeling at to or levels similar getting should about that above that XQ think mean you're XQ core I'm

Lisa Palmer

being we I'd lot stimulus driven where double be certain is rents push they that that many the be with able if a weren't bit government. we And to that because Yes. being that charging believe of pay of the high we a is pay rent, would I'm not because rents, that a provided then our careful ability by little weren't to I by lot tenants can. enough. Without rents to double

are to So conviction about own that again, returning support pre-COVID of right we healthy kind I retail. that environment with a more the I and we think would even that think

terms right consumers sector want to be in offering of are retail in part for the for We of tenants where to want the where in shop.

Rich Hill

I to best-in-class, do disclosures your said beginning, helpful. at for Christy, kudos I'll I reiterate, Look, think so that. Got guys the you making it,

Lisa Palmer

and thank Kudos you to all, the thank whole you. team,

Operator

your proceed question Greg next with Please question. with comes McGinnis from Our Scotiabank.

Greg McGinnis

everyone. Hey,

hear mother to And my But the finally Westbard. that And is disruption I about the this there. So NOI glad facelift. Lisa, I'm asset weekend of sure a potential development she'd lives know also think rest to by I'm relevant going starts. want getting to be visit that she'll who

you details appreciated. provide there any So can would be

Lisa Palmer

Your sounds Mike mother that want work to like disruption on to might Jim and and whatnot. for I'll she Regency, let talk come

Mike Mas

know, pipeline, redevelopments. Westbard, would up XXXX from do then and have We we million beyond as decline in you XXXX. accretion about have to into an redevelopment facilitate have, those we back going the in that $X -- the disruption be beyond of some we and baked And bring plan for NOI, it's our there's active starting Greg, to in

Greg McGinnis

And spreads a questions I the couple rent All right, on had touching again. Jim, thanks. then,

tension We more you'll to what was tenant perhaps you disclose had deals leases -- non-essential that the expect exclude mentioned? addressing could the fitness fitness or when And spreads cut that were if First, that tenants? the do you from that excluding second, some you maybe finish tenants? stressed

Jim Thompson

As of West from the be a foot the at to depressed far in from openings is we I'm traffic, lease West starting the other is look the still to question. -- really, obviously reopen. as you coming just out today, because -- primarily the sorry, Coast, addressing now most product continues that's really a work work-in-progress the if that

Greg McGinnis

Excluding the --

Jim Thompson

Oh, excluding --

Lisa Palmer

I we at think number that don't our have fingertips.

Mike Mas

we a anchor talked of It's fitness lease Greg, renew at the new center. about Jim this the I if the side know rent that actually, in

were spreads think out on basically you rent and But three, full of flat. a new the us the the to end mix negative year of impact basically this flat brings story. to generally, use wipes the I If is the lease at that type quarter

Operator

Juan comes Please Capital question. Our your with with Sanabria next from BMO question Markets. proceed

Juan Sanabria

Hi, morning. good

Just a you for so, the or of on the prospects you up assets you kind are redevelopments interesting being we're sheet more of stabilized prepared use? maybe are ramping in the COVID touched Do maybe which result that turning if external long-term those asset? and a a seeing more where opportunities more is bit postponed opus foresee balance your and acquisitions? developments remarks. redevelopment think about or once that as You're question And you on that for yield

Lisa Palmer

market opportunities. are the pipeline, creation. Yes, capital will, on better slightly that successful, and that use or able we best perhaps we spend. try growth development expertise And underwrite allows align is typically yes, our we we -- to canvassing to to we've believe the also you that leasing for been we to and where redevelopment increase well that that strategy. redevelopment And yes and our if leverage acquisition will rebuild continue opportunities our development of which pursue then and those us opportunities more have or still we're value And been same is will with or seriously, that some

do grow from here. do pivoting So we to have again, to the will, we that. all And capacity at and are looking we

Juan Sanabria

advocate. And and one, tenants it of those it's kind opus people sense are there people center's are non-anchor kind up, about question any time activities. are have driving the of to going earlier pre-COVID just both of may not for of a that of spending on so If longer-term opening out, what not you good traffic to question, center kind at and how or kind a following-up thoughts the devil's if play be Do their the could just tenant? grocery does that a be just much dominating trunk just one whole and

Lisa Palmer

the able not where the are what data do visits, visiting just to measure have other what we center, the We dwell We have we time. measure our people that to visiting. do; centers are are

I really convenience. they the said to out come again, The So again, what shop we place beings, also are buy. place, to comparative been will, to they But essentially want and months. our their solidified that and then that that going interaction, are want from to do be to thing And and they measures just their that if you past XX homes to really generally to that. is over for think has this, One do, it's homes. shopper don't of do can And to want center they able they want pre-COVID entertainment, I social the for value have reason that human every go. beings even a get to need

becomes benefit they center. that ones, where good that if I and then to do will their have go is do opus at believe shopping same other offers same have at value the the neighborhood And it will the when convenience they needs the shop. anchors shoppers So you very if are of, you the and time other that

benefit. will not believe be in get time there I will better. So shopping that's But centers. And also time our the dwell at And measuring the yet. data we're we

Juan Sanabria

I center. love going my to

suburbs. So you. the ask I need more solid we places Want if with agree to Chicago in

Lisa Palmer

Thank you.

Juan Sanabria

time. Thanks the for

Operator

next question proceed Securities. Truist Ki from comes with Our with Kim Bin question. your Please

Ki Bin Kim

Thanks.

I thought you Serramonte. even about bit for commitment that $XXX in made question. But like it So to Obviously, spend more the open-ended you've was annually interesting pretty years. there that wasn't looks million in language re-increased quarter. little last of maybe next five a a guys development And the clear scope

help more open-ended bit overreaching. you're not just little But sure think long-term a I'm said, commitment, us what thinking. if through I lot question. is like I a walk weight. this So, pretty and seeing carries But I'm

Mike Mas

Bin. Ki Hi Yes.

will then make of bit did a capital Let This and jump me disclosure from just and little -- start Lisa a change maybe know perspective. a we response, with I in allocation a for GLA weren't just GLA to other had re-developments. number site. tweak We Serramonte on the center, of include we the really we the to as the realized do entire including all all that

$XXX been in a a just put work of consistent. on and are we plus Westbard. And dollars a redevelopment has million at to you like work to getting we up billion X and making forward years. the We the spend. on with a pretty five remain our well up, on or pipelines of that's really new ground those kind that as from front placeholder and minus And starting development are centers. forward-looking put that of Carytown progress do want our here, not back But scope as Serramonte. our to redevelopment that pick So capital over to anywhere bullish that project looking to existing building on foot next form Phase Really we shopping -- and intent From did -- change. we of perspective, forward capital would from,

Lisa Palmer

one add, really the Regency. all generating that rate that to the optimize that to core extent I ability to operating cash of it business, that I we're that remain flow of expertise know development, assets, looking developments. not ground the to committed X% we've of our how the if that to is have addition our free our we Mike a value we of in that enhances returns much with that it work expand at up it been is $XXX are of it million to it benefits competency development well. always future put said in is approximately and don't teams we -- -- And And benefits, maximize and us. developments best growth that just think I believe has in to

Ki Bin Kim

cap starting incredibly Okay. and And see there's of net, industrial interest in and returns still that scenario obviously, which there retail, you're triple get rates sectors well, to money to switching renewed as other where tight and equity topics is chasing retail? even finding building and we see differently. capital Is and I lot a cover private but self-storage some

Lisa Palmer

they marginally speaking been cap grocery over neighborhood sticky where they'd and up. pretty been hasn't past moved that and shopping that's they we've would year, the centers, As say have were. come very been down out wiped And been for rates may remain to back anchored the you I to that's

opportunities money into chasing chasing new yield sector, some them. -- more more the of coming investments, seeing for are said, they're it's just We but as alternative the versus you

grocery centers, neighborhood was pretty think I flowing -- it a that already there the capital already the into shopping substantial. pretty was anchored

centers changed there new distress. the hasn't much. in yield is capitals is larger seeing are more where higher notable that unconventional the Where So we

be where wouldn't play. in areas typically that So Regency would really

Operator

Our comes with Linda your from with Please next proceed Jefferies. Tsai question. question

Linda Tsai

Hi, my thanks taking question. for

that's entailed receivables from Given earnings how written the process back in the a basis still rent straight could benefit to accrual cash and tenants on maybe back you tell success sense had year-to-date of that off? line moving much coming paying about can basis rents cash of us back been

Mike Mas

track going project to come a need you've switch of going to where need process it's reflective And while basis. We're the we're be of of light rent, to a be future ability Linda very we're pay going assessment is thresholds accrual paying current; ability past. -- careful. forward those back to standard as therefore about The of the some more than kind Sure. it need build an record, you're to set -- the tenants. to much need, more the We our past simply is inability oftentimes won't hit rent that the on ability to we'll rent to much

until So occur year. that this at later assessment Regency going likely to isn't

still or have We $XX our see into you'll revised included in that And guidance. rent no ranges change is line minus plus straight on million. our

in change back no moving incorporated we've tenants accrual. to So

Linda Tsai

and Got realized premier it premier it And asset entered where into did Why maybe core? then Crossing plus and it sits a then part it. sense agreement. you've of with purchase in to quality make Northborough D&A quality on your

Lisa Palmer

that to I'll unwind was Mike of take us it might an Equity I D&A JV over of the part beginning of we category. turn One it's Northborough the it and for that to -- came a with as merger. inherited the

also which for is for look asset of that think it's that assets I exactly prioritizing disposition. But lower and disposition, not tier sure the I'm the in reason we assets when know would So strategic [ph]. at and category. a part we growth, the about non-strategic that when on this that fit

Mike Mas

quality grade out. it third is I'd Linda that's the what tier into fits It core so

Lisa Palmer

NOI future the potential about that of more is it asset. growth So

Operator

with Our next Please Mueller your question. question proceed is from with Mike JPMorgan.

Mike Mueller

been I from? categories stimulus should guess coming you you're are other, talking collections. when have about But the in checks we any that hi. versus prior of category I differences, there Yes, collections think know, local of where mentioned terms period regional Lisa,

Mike Mas

our have that driving year, lot think. it's the it, rent But driving we were to take did I'll do Stimulus that. a reserves is last the collections categories period same with prior our right.

it's think and streams, we personal fitness, coming more type when Coast what shop been revenue So local and buyers the that's we're West now. buyers, buyers, of small seeing generally have about restaurants, variable to door Those entertainment. services, categories,

Operator

Please with with proceed Our is Golladay Wes question. your next question Baird. from

Wes Golladay

the the you $XX reversal tenants cash paying year? guess quarter I largely later -- million this against the the reserves to be on more basis. on I were why everyone, upside, an can backdrop in comment Hi, a upside of fourth And could guess comparable in the

Mike Mas

Sure.

impact quarter periods fourth about bit, $XXX,XXX first about up bit So oranges then the picture. let we’re trying fourth so And number. an reconciliations. quarter, related to But little then $X me the XXXX apples-to-apples, a a prior additives in make help and apples CAM had that it to had from and a get positive million quarter bigger of to a technical little it's we'll of little kind but bring bit

there's right. component seasonal it, a a So bit to of

cash build debt the CAM amplifies [ph] recs we expensed So so with that bad expense.

So really improvement. the million apples-to-apples change a is $X.X about of

see Wes, out the the about really, tenant, back of rate, same. quarter my go moving extending helps improvement big the of But surface. have. I So April. the quarter-over-quarter so our and what's giving think I sequential XX% plus confidence on to is And even, comments. the right top the minus And That's that earlier rate quarter outlook basically late in you then it, seeing to question That you you on March were don't forward. unchanged, of collection increase we picture basis kind think then us collection that frame cash beyond if the or that our in

Wes Golladay

balance you. Got the missed forward? that then you And talk it. to I expect for guess I did the I will, year for of you But have XQ about of might the, rent going the guess unreserve to XQ, amount that XXXX

Mike Mas

you asking because didn't we appreciate point. to get I no, Yes, that

have So beyond increase collection, in we reserve with just an increase rate. XXXX also year collection in rate, included the current an

XXX range. we guidance now our basis So positive points in impact our guidance, we had in have original basis points XXX

collected in already the $XX million. range. million you April; new an see midpoint million through that's points, $X collected as results, XXX we've fact, And in about So so incremental think $XX that dollars, that, at in in basis that's roughly our another can of we the

range collections. XXXX guidance XX% we're So reserved on our through

Wes Golladay

then, you you it's occupancy occupancy both? the or that Got maybe you. paying statistics And can or that the think occupancy clarify, is show you I said just trough Mike, on

Mike Mas

net occupancy. a It's paying effect of rent

uncollectible report occupancy not So we commenced for that lease number adjusted income. it's a basically it's on

range in in we the and the we in increased uncollectible basis basis our So financially is quarter again occupancy have right it's the or about and the what but percent direction. points paying to in fungibility convert, that's effective matters and quarters by of move-out on XX occupancy we're moving could the rent first could even commenced today. more second, think -- -- occupancy trough third leased we a lose or commenced XX% XX% We the

another I is the of did in builders, through activity the again the as balance forward we think of kind that about Jim XXXX. occupancy think first or the team quarter confidence and moving leasing moving

Operator

next comes question Dijkum your Point. from with question. with Floris Compass proceed Our Van Please

Floris Van Dijkum

question, have well? changed look attractive is obviously on your thinking and maybe guys looking redevelopment, you powder are the good. things your your maybe you upswing, deploy, my assets, and buy of taking the and ground balance terms about terms want capital are a enviable could, guys. talk you up you've earnings dry Lisa, which acquire about and and as Maybe an lot capital development opportunities what as both for you of some in or of as as to sheets, regional the thoughts of But as if in in Thanks exposure at the of on talked well. source and types region of you about types assets pandemic acquisitions, maybe use

Lisa Palmer

with you people deploy tenants a away terms about fairway first were pattern capital. lot we're seeing of permanent, think bit how you that that Atlanta, may, little more if isolation more ring impacts to may is we're from where I But capital. perhaps or we us the have may very by if right, the we further if go new I some we're of necessarily don't I a in trends the that on people work, more thinking of widening now the market What for that Hawaii mean invest. Atlanta influenced, brand we've that to about wouldn't in how to that where pandemic say you we like regards a trends markets migrations And we're the seeing we're city. the from changed, thinking pandemic for potentially where in want of with necessarily focused that the may going migration the opening has take remote we're deploy been markets. mean moving will, But a of about to and permanent example,

know, and us deploy for has that may in, we markets anchored the more already that's And scale, terms will to will, high mass, already centers. if to in we we have so not in beyond our changed. neighborhood, where We have that, already expand develop, up able that you probably kind critical that we're of grocery strategy But reach, where of may that be opportunities already capital. redevelop, quality, well we largest shopping we're influence looking acquire community still open located

Operator

Paulina Advisors. Rojas Street with comes next Our question question. with Schmidt Green from proceed your Please

Paulina Rojas Schmidt

the private boxes Good morning. interest brochure. you the think two the this for much your market centers or grocery addition in before not one I in And two different is [indiscernible]. said how I smaller Also types to to property cap and that where with just neighborhood versus anchored had maybe a today or you changed just rates are centers versus referring for And neighborhood described centers? smaller that

Lisa Palmer

speaking, and to the we're really trading that, the we've prior that Thanks I were seen centers question. Prior more. when last months trading on a open we're Again, transaction properties for that past to a the lot say market three the for much -- generally where smaller size. the would up

that shopping of anchored to were shops centers, a the grocer size. smaller underwrite, were because really just bite that So easier essential in with the small tenants

environment, the of improved the With have improvement open transaction our just retail market seen economy, overall environment, we the more.

what now said about new have capital are even goes are properties are before. there back looking higher traded trading to in, -- wouldn't coming This I we and yields. that for that So

more regards So even boxes, those wouldn't more unconventional entertainment. a definitely With there's to premium. That's the larger, have traded.

are to as see be is the So also paying greatest typically additional continues with e-commerce. over capital requires collection is you've There risk and occupied greatest rents. where the GLA they're in national cap long-term fallout shrinking to there the that release. we're of rates especially to by that consolidation from rates there while the That the where are going amount impact the because higher short-term, and are boxes. what higher still seen for And tenants

premium types higher rates a is for there cap centers. those So for of

Paulina Rojas Schmidt

not? and Has widened premium or that

Lisa Palmer

-- boxes estate it's depends what it I difference going will difference be anywhere was due than what market XX the always they in generally traded to points XXX it's is sector, long-term it pre-COVID. prior risks not cap on real don't much the shopping And in. weren't it's in centers and basis points, that's The to really depending our to basis bps, centers from past to know from more market three that months. is generally, push the but that up rates pre-COVID, different in depending on, in

Paulina Rojas Schmidt

you pre-pandemic then that you think mentioned to expected XXXX. And I Yes. levels return before to by have

the think, in you know lot. Given generally But odds to your there are it I seems guidance optimism that back the do raised is this asking and XXXX? what be a I'm more to you earlier. achieved pre-pandemic are that

Lisa Palmer

to going I'm that pass to Mike.

don't guidance. I in So get providing or XXXX for trouble XXXX

Mike Mas

can points right. crossover we're in of said remember, certainly we and previously, no change really full-year internally that going have as will XXXX, And on has; take occupancy. out come day building how a in it a negotiating vacancy of we relation the not matters. quote-unquote shallower talking how as going it the all happening what rent lost that and quickly is the is lease because to in the is we period XXXX XXXX with important What's a necessarily end about growth, on recovery we the space, cash, number XXXX, a that where get That's and when process. trough, commencing between following relates of And tenant, what late period. what's lot where And XXXX how going between Hey, but as vacancy XXXX is a and XXXX. type lease, this a to where to It's the a in then but That's finding result income it's end, really of always all that at to and recovery end But matters end there's XXXX. uncollectible it's we influence we number lot basis -- there. XXX XXXX changing it's producing to that it's endpoint. longer,

Operator

Instructions]. [Operator

Fique with with Tammi question question. Fargo. your from next Wells Please proceed Our comes

Tammi Fique

guess are of impact costs on starts concerned rising to all construction about about yields you curious, Thank the historical yield? think a as I'm Hi. developments I at of you. new you sort relative

Mike Mas

don't Yes, caught And that pipeline a in get looking deals. Tammi. done in our flat pretty We good historically so a growth we existing have done of nice really flooded. embedding we've pretty job that underwriting of over job shoulder our

a just are it's underwriting there. obviously, a out challenge very So Construction deliverables fact is pricings staff; difficult now. right

all factors we underwriting those thought into our process the our go in of at look pipeline. and would So as mixer

Tammi Fique

Crisis then the leverage question, with owners a to liquidity will Taking the but important and the And this maybe a year downturn, when obviously -- how Financial downturn. picture was, thanks. lead bigger companies lessons in with back as there are learned learned? any you Great real and better lesson guess for retail position do Okay, think I look lessons that were, have curious other Regency estate what you now on downturn the from next

Lisa Palmer

enabled that to about that our -- it and strong I that, what since enter fruition. still to say have strength. provide you it they same well of think to to did is the just past us would that really that so balance to it come first downturns, financial it coming thing how us so strong enabled really, And tenants interestingly, providing, how extremely started solidifies -- -- they -- thing as that enough it downturn that that able we out has important the in act And sheet our the also to is to how as I liquidity mind dividends on that important. to we're you we're we and learn is as just that and keep is answer you maintain it it's support in opportunities that came

of disciplined, does you remain true, times position a are disruption when in when remain learned, that and distress lesson booming, will biggest any even the be to happen. that's So advantage take or downturn

Tammi Fique

the but [Indiscernible] what for missed expense if nature in I Mike, termination this, was the I'm the sorry quarter? first of

Mike Mas

shopping center in connection Tammi, lease with a of out a the bought sale Pleasanton. Sure, former we called

to and And the so basically to out remaining, we the headquarters. to with buyer had that an office building The corporate last buyer. site buy building lease that is deliver

Operator

CapitalOne is with proceed Chris question. Securities. question your from next with Our Please Lucas

Chris Lucas

Hey, good afternoon, everybody.

on quick a couple Just end. my ones of

made you ready think set the I to allowing of and of you the through deliver specifically pandemic, that's to maybe seeing them those by of there's pretty that, is with accommodations to up were going delayed gone But open through and going projects number negotiated were sort had pushing when that tenants tenants that to now are timing X.XX. openings much nearly guys just I'm accelerate sort to with about set or had how they're thinking you be? you a openings, that deliver, or

Mike Mas

chose us, much tenant this we're I behind traffic people kind back like similar cases, and the may that's merchandising the our built not been by use because have seeing, it hesitation been along to those that have of point, Chris, it's right the -- to line. at foot either a in of it's that think go-forward predicament lot that out were replaced it's has assets in come partially the mix, as most of open

a it backfill, get we're the to move today. people but natural was same So seeing opportunities almost users those that forward with

Chris Lucas

getting the at not pool my maybe just is that of labor neighborhood, Are lack hesitant hours retailers decision of don't we're on based is low by finding it's or you markets this to seeing more sign if cut of staff. in that shops because but leases that, and in I retailers processes impacting know And flip availability question the point?

Mike Mas

legislative work. be I to But certainly wouldn't some hear it it's out to come. from to find impacting right say coming interested the get there'll issue, It's impactful decision be tours to it's the in there's Hopefully, restaurant retailers, last gamut. trying changes from get to soft process year. it changes across the of to real folks workplace. may from a back a so We now. lack more a reality But in that goods labor, is supply definitely

Chris Lucas

question Yes, just for me. last

If page larger redevelopment/development today, development your I that at still a it's redevelopment now, oriented on redevelopment. look does overwhelmingly I XX outlook? when play does have development, look your it the page look at in months the On overemphasized from to or

Lisa Palmer

to proud development back the say it expertise business, structured an to regionally and the that again, mix we because I'd always team going team to core way right bring the that the just going in the well. I'll that's time, starts; are operations competency, the really functionally, developments. best an even to continue portfolio two up of be, maximizing value change At quarter, ground there's on we important had of versus and to from as the existing they're is strategy. last our new both to that bear be we those of going same properties And our part the team, bring

those for believe opportunities and to and success we're both. we'll also in have pursue I continuing So look

Operator

proceed question. is question Linda Please Jefferies. next from with your with Our Tsai

Linda Tsai

thanks. sorry, Hi,

one Just follow-up.

year On Coast the lockdowns, comprised escalated in Coast? West due towards XQ half call Pacific nearly of you prior period the of uncollected is rent tighter rents XXXX the to fiscal XQ the receipt noted from that and weighted XXXX

Mike Mas

Yes, the it's a prior in and the XX% Southeast. about nearly West of kind Coast period on collection third

Linda Tsai

more impaired sense leasing activity, pay there are West markets the now more that is kind to from rents or being stability Coast then overall? you recovery of any a just And or

Mike Mas

year. Yes, level that difficult West same very, very in in spend, over we to leasing in But exciting recovery the Coast we're last across see we're of the to activity in volume as same, the activity overall. operate country. been seeing the amount It's latter, the

Operator

like the comments. end the Palmer reached At to this We've I'd Lisa call to session. back the over of time, for question-and-answer turn closing

Lisa Palmer

appreciate Thank afternoon. earnings you in us call know I and and my Friday week weekend. you a I been remarks, season a being us on with it's thank the as today opened for the again all great also But a being for Have Regency and on you team. a long with I long

Operator

conference. today's This concludes

you time You may disconnect we thank and participation. your for lines this your at

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