Regency Centers (REG) 4 May 222022 Q1 Earnings call transcript

Company Profile

Participants

Christy McElroy	Senior Vice President of Capital Markets
Lisa Palmer	President and Chief Executive Officer
Jim Thompson	Chief Operating Officer
Mike Mas	Chief Financial Officer
Craig Schmidt	Bank of America
Michael Bilerman	Citi
Juan Sanabria	BMO Capital Markets
Rich Hill	Morgan Stanley
Samir Khanal	Evercore
Michael Goldsmith	UBS
Derek Johnson	Deutsche Bank
Greg McGinniss	Scotiabank
Linda Tsai	Jefferies
Mike Mueller	JPMorgan
Tammi Fique	Wells Fargo
Chris Lucas	CapitalOne

Call transcript

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Operator

Greetings, and welcome to Regency Centers Corporation First Quarter 2022 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 is being recorded. I would now like to turn the conference over to your host, Christy McElroy. you. Thank

begin. may You

Christy McElroy

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

are President Nick Chief Lisa Officer; today the West Alan me Joining Palmer, Region. Director Managing Managing Chief Leavitt, and of Officer; Director Roth, Chris the Senior Mike Region; and Financial Jim Senior Officer; Thompson, and Operating East SVP Treasurer; Wibbenmeyer, Mas, Executive Chief of

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

to statements Lisa? materials. caution applied also forward-looking these Our presentation on

Lisa Palmer

morning you great us. everyone Good had year. the for Christy. a joining thank you, Thank start to We've and

improved outlook our from are from has our pipelines balance transaction our Our ago. further of activity, is a strengthening this and investment our trends are healthy, for business sheet core and strong. our With active XXXX even operating quarter accretion

continue continue the centers among hybrid to more structural to benefit a and their people distribution. tailwinds, robust trade strength in shortages emphasis work labor discuss and strong is impacts. of continued challenges mile on and to positive occupancy on evidenced amounts areas, leasing including so time portfolio of in been This a activity greater our in near we're locations inflation to from component the able more the that key will to rents growing the risks retailers our suburban and high our higher we acknowledge as continued permanent progress spending tenant far brick Our we historical of homes the becomes the and sales of supply have as first-ring last successfully largely importantly see do We this detail back retail mitigate mortar But pushing few vibrancy getting chain minutes. and the as business. environment and importance tenants make by Jim levels. and are

We're which redevelopment not on excited but our build anchored the continue shop free making great to in-process target future are and use the to best We on our steam our only flow. value-creating progress this we full started and ahead quarter ground-up we of pipeline, our projects, cash and during and are new first have a development center remains right other pipeline.

our USAA indicative just that purchased the that. and those year, And we million. result, XXXX capital basis capital these opportunities $XX invest community for much we've far into that of active we've over that and JV we are like approximately And a we XX% quarter to allocate last this We year first types grocery-anchored of and incremental assets we high-quality look our interest raised the continue Castors accretively guidance in a purchased front, really to assets buyout to transaction very just centers, last to $XXX accretive our had centers. in will successful doing already centers end, opportunity saw as full neighborhood own, Similar with four high-quality acquisition largest in very the and after year the million. our know our quarter so partner's venture joint year, we well. an great on for another to acquisition On

we've higher continued the an at chasing acquisitions we've neighborhood type the disconnect shopping rates are Perhaps recent centers mid impact centers. significant market capital X% completed to sizable this interest of there that a eventually have on more between remains grocery-anchored and to on for more could in public that trade cap While other market we've community private class. seen own, private pricing of high-quality, the well-located for see even telling to values and asset low our months assets point rates we

appropriately he Before will today I year. of this next both and will the Nick, already recent simply to no or is want There remainder this way turn events. conferences future look will with of the on see and I upcoming year. to forward and Jim's Jim other They're calls this grateful the With confident paving on the the responsibilities. it at of the his announcement you we Many way, as still seamless us Jim? I to call brings. a organizational take that be that up what matters and at you will transition last, them be our us year who not Alan on know that stepping I'm this retire future for him to are he'll possible over recognize Jim, call to do for end be is acknowledge with

Jim Thompson

here a appreciate look much the morning, Regency forward and good finishing everyone. career comments QX I and my at to strong year. and results Lisa, great very start XXXX to with the way Thanks, was

operating in the Lisa robust. environment As mentioned remains her remarks,

healthy our strong sales grocers tenant and to and particularly continue see We foot trends, restaurants. traffic among

team. our to first both to and rate the of and unit space quality were first anchor and historical XX% is New quarter our pleased percent made the rate our across XXX rent the addition to is XXX the quality are we're points with pleased and basis our the progress X.X%, quarter rate These positive as same-property leased flight also over a averages across speak of rate past we at demand the is averaged experience the portfolio work view in quarter, all held firm for first is over quarter points – our the terrific percent we the of and decline sequentially, in leasing of in hard average. progress portfolio. above Blended centers year. seeing and to rate leasing basis retention our space bps. filling percent renewal quarter shop my the Not historical reflective commenced sizes, the XX that demand lease typically the volumes we've being which spreads ahead we only of cover our up really a was in geographically up extremely which are driver. our nearly positive making in the year across We vacancies, actually trends commenced healthy XX.X% were occupancy up but percent remains Year-over-year, seasonal

shortages. leasing successful pace the with rent embed one, to first on efforts net which capital both rent our leases, in both remain gives growth XXXX rent exploration three – recognize This will steps mid-teens our and the steps net market to headwinds to our into going same-property limiting meaningful as us The both inflation, executed quarter. and life the supply NOI combination growth that an chain pronged rent focusing of lease. be embedded the our to rents, market persist, in rent effective of to is solid rent occupancy keep to in spend trends approach the macroeconomic do forward. in contractual growing and capital marking leases reflected our spreads, base growth, and GAAP and most in throughout spend in and growth which issues are including geopolitical number same-property contributor also for the We which at is labor judicious We we in continue be opportunity

seen escalations an areas have impacts and potential tenants that the to material impact tenant we've seen to meaningful of are availability the and we been yet and source mitigate rent impact tenants largely our Permitting we pass permitting, coordinate perspective. a the continue helping through on pipeline, and in us we from value in been The demand But $XX rata this New commitment current foot yet grocery-anchored bulk. our ground an so increased building. a in making here dates great as excited of has before a tenant operate community. costs labor haven't these commence on Target of yield far later project project is X%. new three will and only public QX on on ordering lease Jersey, $XXX our which remaining. and North center stopped will underwriting a on great nearly hub their for yield projects expected East we redevelopment environment. our leased York currently summer in ago pricing Even medical year At centers redevelopment We are projects, are lead our Bridge, our from of the with context in helping with the not construction rent in some ability of a projects X%. project mitigate with trade forward monitoring we this anticipate delivering the The we plan has located This and progress today, approval items projects and about up year. process. our development pipeline, of estimated Marco long creation into far this not materials cost supplies, So the able San delays, are to pro business. monitor. a continue Both areas. are yields. processes ShopRite, shop is conservatively square be cost XX in Glenwood and risk and moving to over a include million master we ground XXX,XXX of In value-add to we another it this that ground XXX-acre XXX% stabilized stabilized But try our our executing of up so in own commencing New the Examples trends trade reflect most of phasing development development have and impacts the and Florida, hard store The diligently retail consumers, with working time that space, yields these delivering leasing new escalations attractive just All buildings, to called be anchored Old started exceeds cost anchor Green will to space cost miles serve a construct we for period. City are of and project construction project as and example seeing of in sourcing on single it to one south over expected top up ground million by were

new energized development As are their expand and continue details partnering we quarters. excited over the Overall, retail footprints we seeing they as areas. redevelopment our top projects I and the consider categories. and are to to we regions future for And are activity in next encouraged robust remains several trade to our team more with look continue all best-in-class grocers Mike? forward by pipeline, across sharing

Mike Mas

addressing the in revised Good I'll by then Jim. XXXX first Thanks walk the through everyone. our and quarter start guidance. changes primary morning,

investment rent first to growth, trends, improvement, We strong quarter operating activity. in are results from occupancy report by supported and accretion pleased continued

and quarter we was conditions, $X.XX to straight And again cash-based prior we about back converted lease cash year continue $X share a positive and reserves rate We accrual, guidance pool. the more accounting rent for triggering million impacted AVR have collections. from included cash tenants given impact previously Additionally, also XX% contributed to the Nareit rent conversion range. in rents collection This as of remaining per by share in line the the first quarter, FFO. during collect underlying income the $X or quarter to in reversal per XX% of our of improvement uncollectable tenants basis basis on to credit prior now continuing million was reserved close first was $X.XX smaller not which our our or of

expense throughout income reconciliation the the first to year quarter comparisons, remains period. in As well that comps, significant on as three year-over-year, had in next the last lease ago a we the comparison, of and rest second growth easy as NOI this same-property it relates adjustment as rate are cadence quarters, third we lease income certainly much Conversely, the especially the related uncollectible second in facing quarters, our quarter's the impact comparisons over that to In tougher occurred we year. year. discussed there of call, of our in year-over-year primarily relatively quarter, on noise will last uncollectible

discussed All have of which we previously.

of our Given growth. truly what issue, is this rent comparability base year driving best is property indicator the business same this

You our classic from the the reality contributor for underlying to the will NOI closely XXXX, complicated, find and year of metrics wish continue for our match and impacts growth will guidance end. rent but growth first We be the the resulting base sustained trajectory. of pandemic, the comparisons our will Property that to primary affect year-over-year most through less our quarter accounting Same balance will be could

include fundamentals percentage operating our driven first mainly the well of of from update NOI side expectations for the deck, than primary our forecast. same you've year, average our chance a both property to Turning revision move to slide as website. release Page drivers the details our rents expected. X The a our range. of hope XXXX Nareit review higher share growth guidance, lease the midpoint restaurant by to tenants, had deck, FFO the of $X.XX per occupancy and we progress to posted the drivers the upward positive previously for The in to business press On grocery we've QX in basis included drivers added $X.XX related previous to commenced lower higher new point in show column quarter, impact midpoint outs XX as the from change more that guidance up a and and favorable increase from to our the

sequentially As up Jim it's the where first in noted, the year, seasonally lower. occupancy was quarter actually commenced of typically

the revenues our midpoint our cash The the our incremental driven in the result during increase impact to the the accrual basis and for basis. non-cash also results and I from per is We we reflecting by quarter. $X.XX as-converted mentioned We line primary an guidance at of on adjustments increased assets. per tenants net basis share, include estimate share of $X.XX JV from impacts, acquisition rent cash to of our forecast straight activity, and additional by first only the acquisition of conversion activity, featuring accretion disposition transaction on accounting guidance remaining that Recall these related the earlier. back

from perspective, at another to our we Additionally, acquisition per year. the we our $XX raised million, $XX funding positive driving a expectations share previous to for raised From of collections million midpoint. change $XXX guidance $X.XX our range million the prior full guidance to for the

equity. forward as of proceeds we acquisition Island in the raised also $XXX the our portfolio our just with closed April $XX in of a million million. Costa December. will related cash hand is late proceeds of were our We and $XX But reminder, ATM net a of of already The the $XXX million dispositions remaining in Long to on fund pipeline final in part purchase from settlement remaining combined which the January, over million from that disposition used fund Verde guidance to to sale of

dividend to expect after payments be which million north also to spend. capital cash our pipeline development, free will expenditures We fund $XXX redevelopment be and XXXX, in of used flow

targeted leverage with Finally, in in and our we leading profile and We is of and to capacity great low advantage our a are with times. our continue remain the quarter sheet taking range the five to sector of five growth full ended our balance revolver well end opportunities. leverage half and positioned shape at of

markets unsecured forward meaningful Regency year-to-date to opportunistic that, taking have and with maturities in the While when debt we way. remain volatile to accessing until questions. With debt a and sharply have the look been your costs risen XXXX all-in markets no patient

Operator

conducting At session. Thank Craig proceed with this be Our we'll with Instructions] Please question first America. a of comes time, from question-and-answer [Operator you. Schmidt Bank question. your

Craig Schmidt

it. request Community interested in is to at development little us was Master about Maybe receiving could sounds ground acre the I that Great. municipalities Glenwood How grocery tell centers. post-pandemic? Planned are still you up to XXX surrounds that up it ground like the your want a the see also more open And Green.

Mike Mas

took Master The morning. Planned was to good think, XX get entitled. years Craig, basically I

but a a working long hub it surrounding slog, good, the providing. be retail has heavy that So landowner residential the was hard, time, been we're long

community I have the is to excited grocery very, target very the and think the components.

extremely our having leasing XX% or been As shop probably activity LOI space. with just has strong, indicated ground broken we're lease of negotiation the

So of any marketplace of lot a There in growth that lot is or demand it. a of how wasn't I kind growth. characterize pinup retail

react off nice pull So of development. perfect we're it's to kind really in the that that a diamond rough and retail to able

Craig Schmidt

grocery just then see larger the the you as stabilized rates or cap Do neighborhood And them as centers. still or as for compressing anchored, community Great. well expanding?

Lisa Palmer

Lisa type as shopping And take been that I want you. grocery, for I Craig, I quite of low anchored stabilized what even centers would – centers, to remarks, prepared my had Thank in prepared that. I'll that as own. say mid-Xs rates had said, they And in been neighborhood some I the here. grocery time. at community It's cap for again, to that stabilized the level remarks. said will reiterate we had the

supply pressures, seeing are lot may valuations. be shopping the continues that centers. grocery the there But that interest demand. – some as to we with sector, because yet. wanting have expect a to move you may anchored continue of flowing that simply significant I own quality to high into be on rates our not pressure But would And the see – rise, capital We there it's

the the exiting market. buyers leveraged may You have

much. go yet if cap mean I certainly I nothing rise, rates we to see it be wouldn't surprised that, with expect wouldn't So just but X%.

you're to high Xs. of mid the in – instead Xs, in still mid maybe to low the So

Craig Schmidt

you. Thank Great.

Operator

proceed Citi. with from question. Our next comes Michael Bilerman your question Please with

Michael Bilerman

is its I conservative say been, I'd realistic outlook. on history always Lisa, think Regency Thanks. the over

data grounded, none of benefiting confidence increasing guidance, the the to little such is of ground of a the and had bit say you into today, you're and that I core in all uncertain, did walk to sort list why outlook, effectively environment weigh I'd how given you a is be from you that competed to able to on through that's bit. that guess, macro of of of macro good Sort reality. any feeding little sort seeing just And the today. relative the guidance sort leasing the which

Lisa Palmer

Sure. I appreciate the acknowledgement.

You put optimistic, quality been I of overall. the company, reasonably the our approach think people of properties conservative realistic quality quality and together. our with our has one always And the of of our

so that, and several the correct. that pressures our with the quarter’s over mean, quarters now how And about supply chain I absolutely labor exist and the macro – been challenges, it to recent most with you're have in we've inflation. Without we with shortages, with regards the environment portfolio. company talking for built

really close centers and higher department well, However, And convenience to to instead well. all customer benefit stores restaurants, are inflationary demographics in to of it's still want that even consumers able perform the withstand luxury, cycles. often neighborhood we from value a go talk trade properties in us community as some we they that through with to and past is of base to can their to that whether homes. end those more for whether areas compelling recession this environments, really trade cycles, down. an positioned a in spend back case is it’s environment, our money, it's you've where going but their located shopping more heard to And whether there's are or about to And recessionary want

tenants the continue to operate – through for the in their It’s came ground our what with sales areas with to this So the us the their already we’re in. these – quality to quarter. It’s that price for on strength customers the of ability and first grow macro environment. ability properties. That’s trade we’re gives what operating the headwinds that’s demand in to of with leasing, because seeing that in the you’ve environment we all increases rents the pass the on confidence. our the facing. of our it’s push really that, It’s our fundamentals And in

Michael Bilerman

sort you’re your growth any of environment today, sort of you just Did seeing any as you or bake have guess, to it of because of sort buffer I moderate in effectively? is the macro did expectations of it

Lisa Palmer

the to I’m Lisa, don’t so me it going given much to off Mike’s here, – too hand give Mike. guidance

Mike Mas

that take can I Michael.

about fundamental of raise, think you what impacts. context the then two really the quality prior improvement the raise, it’s If the and from all accounting characterizes coming year Core or cash $X.XX right? buckets,

So we did belt million $X impacts, prior on our the under that items have. raise the prior those collection that – million known of expectation. are cash year now We that we $XX are expectation collected

have little of were have maybe some in as made, is we’re by a The this basis. that Lisa more day. this reserved. doing us; the component rents It success on light comments that still previously So an of collecting non-cash converted the taking bit we confidence will day we’re

line So ADR of a rent X.X% our accounting straight we’ve back million converted with that reversal. of came accrual to $X

the want pretty metric will a your Everything Do have do most to in a raising from point but XXXX. We have we’re in year? is buffers about don’t our property be What surprise, I known. to of as working all property on – point core our contract confident in XX about assumed have incrementally we not Michael, large accretive the we’re our degree by from we Northeast raise do our that as one guidance the of same our into million, that first we thought with And – a we a some basis speculation going by but lot dispositions, We leasing the the under confidence of the property. we it’s there a about do we’re under a home us of for that they’re combination forward. mortgage with funding that big the really about the lastly either. plan these call commence did on And improvements confident and spec of belts XXX then ATM; will that transactions, plan. are we not excited bringing forward is $XXX And amount in a this diligence. And fully bring equally of of to essentially. we some well. balance year the type time quarter. closed this the acquisitions we’re a by front, portfolio are but fold, take funded fundamental due occupancy points high through We excited this was going settled

So we feel good about the quality of deliver. that raise and our ability to

Michael Bilerman

That’s very helpful.

but Just market, private, less the got peers so all have why of their a sell. as of about have recognize everyone’s you sold liquidating continuing little sort sort portfolio, acquisition think on been there’s and of through And more second dispositions just And XXX, disposition buying help I you guidance help not even I always out of more even reconcile walk disposition also why about I all just just than still disconnected to a on very aggressive be capital you’ve not but timeline why your wide, active when bit, bottom But Lisa, sizeable the side? expanding this the portfolio. in If a want net of of your venture public to it, it partners narrowed of topic – and joint talked the at landscape, rather sort recognize not today it. bottom your partners recognize you – be between increase your so about out and your the more? they own and venture are talked aggressive on transaction disconnect you you’re this there, I and the you’ve that’s lifted

Lisa Palmer

want I that we really we after would actually the for is XX of at and selling to some at and When growth there. have the is aggressive been has the X% of because we company, I’ve more. we long we usually annually. non-strategic on sales And know, essentially to as committed that modern looked have time, say, accelerated years, wasn’t X% it’s regency, our GSC, era everyone on our X% as of non-strategic as up to bucket. even portfolio into – focusing need – time those remained the to to I lower improved you I over remind do word that lower growth which And focusing portfolio the sell since sold falls what just quality but the

more the trade that X% cases been into in we types own area. to to in centers of And as do capital some using non-strategic long-term. source a So want the of we’ve that

be are looking mean, sounds it we centers I like So we but are it that what – like And there our can’t – buy I possibly like really portfolio. we true, own. to look already

business to with So and want with economies there also buy. operations relationships. in want We to we starting tenant in both – we perspective And then grow. above and we’re that an get X%, believe we our do – much from sell what to that are real of scale

Michael Bilerman

Lisa. All Thanks, right.

Operator

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

Juan Sanabria

the rent you you I bit morning. about markets. growth just in are hoping a was good could Hi, little the talk seeing

South up the to pandemic. if of And just share the in maybe the sense seen You just growth you you variability pre-COVID the times a could of you’ve kind of touched markets remarks. that result of benchmark Northeast really give is of prepared like levels. the taken sense XXXX in are increases the a is versus maybe what have And get couple as will if on in hot and markets in Florida a us Xx what up,

Jim Thompson

leases. to driving were target were yes, of outliers that quarter me think I’d that in regions, felt as no is the ended we pleased number. all this the like a we’re to really was this we are that the really there that, this hitting kind attributed look, which impressive frankly, I board Quite Jim. where across up step growth year it Juan, X.X% Yes. back really being – new with and X%

look in growth to I a XXXX, we’ve experienced indicative rent would the whole, over of to I to I healthy – a we’re I same board talked rent can’t we rent growth think think of point remind back successful. that been we back as getting think those of about, it’s three which look times. kind compared across portfolio and I very pronged really steps, as as like approach it’s embedded those I pre-pandemic the at it’s kind

more our deals to we bumps. XX% growth embedded had we’re of in the I of kind what we capital, this net now. had and effective/GAAP right spend the where want of that’s new long-term leases, to that getting on had look bumps get combined is range we all mark deals XX% kind Obviously, of that’s back market real those operated be probably expiring quarter of rent and of to more opportunity rent to at than metric, them XX% This quarter that judicious historically wouldn’t a anything XX% and where

Juan Sanabria

And How kind commenced, being balance spread. then captured year. leasing perspective a And have a we what’s you of XXX we the the the basis truly of on should versus additive – over think that from rent about think time? just point a about as base

Mike Mas

Mike. Juan, it’s Hey, Sure.

the include redevelopments. in is of for the million we basis stats without point $XX throw rent, the the a supplement just about then actually and at year. $X pre-lease about we some talk I’ll percentage absorption the amount disclose you some million as going that So of – We see back to equates through when referenced you redevelopment. That how XXX the throw can do quarter, point

coming through balance be million by about that the the and we we’re some we pre-lease redevelopment. next further within averages, would of range. seeing historical – the before plus year. a point that From half to or minus that are in we get would timing in So all higher give where basis year end two-thirds online should than XXX $XX perspective, then the the first percentage, And running you on of context are

So leasing delivering very we’re and comfortably importantly space space.

As increased belt, we first absorption balance successful to plan. our with table. think I’d last points our points XX basis quarter, of about about this taken basis the we XXX commenced the off XX now supporting say we’ve quarter talked occupancy really for year, that of under

levels. a not And rate. occupancy think outlook said on environment. the team highly macroeconomic point we’ve there. XXXX no aware ever but that focused XX% macroeconomic We been as a then on simple those levels, in table get I we’re believe basis before plus but this We a just as to potential. we we on environment. there’s in supporting – give a portfolios don’t one beyond there the a this are good we’re maximum that, We So – minus lot commence been, it, to lot there at – absent that’s out is peak property can’t absence – one a back to this or our uncertainty around at all our same to is our but eyes not at time, looking word, There’s it’s dwell and XXXX rise occupancy portfolio growth leasing a and are of or to lot doesn’t point XXX

Juan Sanabria

Thanks very much. Great color.

Operator

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

Rich Hill

occupancy good morning. bit to helpful. Hey, That last really is about

for do of about that? guidance, asking getting it, How the to you that risk upon late a thing? XXXX Is back XX%. that expand at what think Just cadence of the a thing? of XXXX sort Is to

Mike Mas

Sure.

it’s pretty standpoint, teams to ink points and area. are Rich, from about as we at it And of of full we’re our post environment, our this just think kind that from absorbed feels busy, GSC, in basis we lot basis simple. are The a end type XXX looking velocity of I of leasing. and we’re kind that back teams mean, paper. about we’ve see putting are in I like pipelines XXX – the we’re points the years, best top a

XXX about space is we basis. we think absorb points quickly can annual how on basis an So

type us XX would timeframe. early XXXX, that in of of end put So that

Rich Hill

it. That’s helpful. Got

lower this think of So to business something is normal attractive that? back to the up renewals? in to, upon becomes a there’s we to occupancy, five back getting peak you like a do then about a, to Is as you renewals. normalize think than this call sort Or five think seven? really for some it do you which What level stable six, based new start

Lisa Palmer

I’m to or to seven. Rich, sure the not five I’m six understand not sure. we five

Rich Hill

just Yes. upon there – I’m throwing throwing some numbers commentary… out I’m based personally

Lisa Palmer

you renewal, spreads, So rent not right.

Rich Hill

yes. Okay. Yes,

Jim Thompson

Yes.

in business, rates occupancy those shoulder, supply And that we available at think get our is our described there. always rental XX%, occupancy. think this rent track I’ve as lack as as range, as what I if full and and spreads to expectations Mike over that closer I look of our looked rise occupancy XX% you

would I So see believe us you’ll curve as goes I up, that. that reps see our track

Mike Mas

cash of forget the contractual Rich that’s top don’t on And rent spreads leasing increase.

what be shop space, frequency the increases. we’re will very high. highest getting That’s of So our we’re activity most of contractual getting in renewal

three to on annual. X% of that’s So – top X%

Rich Hill

cap Could And disclosure. helpful. appreciate walk some unlevered question penciling what then like this through look out? point, rate IRRs those the where me, That’s are final for at have you I one

Lisa Palmer

transactions some prepared our mean, with about of single remain underwriting basis happened, trade rising. rate. – on capital, up. assumptions had depends cost up? regards pretty terminal we we expect I unleveraged – With IRR lot going closed as But creep cost creep that of X%. been obviously kind I X% the a what’s that we seeing that’s a hurdle the a north debt in think the observed to IRRs. and you did been remarks, that in cap our going we successful. we’ve our XX given talked participate in. going asset it and the about your of steady on points could On if cost – over It existing been And some Do capital. we my in acquisitions have didn’t we of your of that and see to we’re X% our ones talked underwriting, were of our we’ve within portfolios low We’ve been we about discussed opportunistic underwriting, where We’ve again,

Rich Hill

guys. Got it. Thank That’s you, helpful.

Operator

proceed comes Khanal question Samir your next Evercore. question. Our with from with Please

Samir Khanal

Hey on line that May XQ in we there’s that everybody. item? number. upside quarter. sort about Just here, of came we the sort think guess of Mike, into morning, maybe Good traffic percentage trending a thought are how I and if sales and higher post as rents, little bit it in than to trying to see

Mike Mas

the Samir. in that than we historically wind of total range in item We’ll Hey take our less historically Sure. quarter. revenues. Generally, $X some us. of get for a million first small X% pretty that’s maybe total, it’s the of It’s And sale. in about out with interestingly, half line start

featured other had were great a sales we our a first restaurant of component So the percentage rent, component. quarter, were beat grocers internally on

that think throughout to the has outperform of taken in percentage largely But year We rent are the opportunity quarter. will first optimistic have similar the that portfolio. also I been significantly the balance results

Samir Khanal

that And is of next guess million percent reserves, I question year what of what tenants total of that point bucket is this as Okay. sort can active part on of at then up is remind my And guide. collect which your this you in us $XX total bucket portfolio? prior you are took you from? Can that still

Mike Mas

Yes.

that So were of supplement, quarter reserve on at have our end we we XX the at million. balance you’ll see and it $XX Page

starting that’s is we’re your and So And guiding number. foremost, first down. break question targeted. point where the let’s your But that on

are $XX plus million. expectations or minus So our

than reserve, would do About that. with half characterize that is that million normal I I $XX the course. as question. Can start better please So we think of

the that’s a AR about our as I reserve of is activity. in balance that normal two open a our percentage guide. of about in our buckets, it historically put of The course think you If quarter

in We the the $X are expecting about of year. balance million

I And So the Samir, “wild number, on quarter Again, we’re a other that’s expectations. with card” you’re that’s want the be about quarter we think that their careful folks looking because to for. of reserve. guiding then the that

ton a could the in through in a team progress in pile working job Coast Nick some making are resolution west are ballgame through of more point a primarily abatements time. and number. have the working the at this we West out We receivables. that of It’s great doing and

characterizing as collections as a on for we XXXX. in defer XXXX. So could unknown, tenants to experience agreed so that Half million of an also about are been We XX%, card already $X that wild into those reason. with that has the

point So forward. to getting on to to going diminish is outperformance this start and I certainly we’re start that the to shrink think from where will the guided line opportunity point item the

Samir Khanal

can – take That’s it. can the Whole I of more And Got Foods. for it’s is here. one and if landlords helpful. what guess, Regency one, the I one real especially estate closing recently. curious There’s But very if headlines them stores, the to I to the guess strategy some Amazon is last I at making from not been many. point? as with what about hearing them, just a few this for headlines you’re Lisa.

Lisa Palmer

strategy they to other you Foods well. their brands. and the with that them in their might first call a we great Whole to do as Amazon I the know on their ensure Whole estate and know advice it growing certainly better what committed Samir, locations Foods stores. most both I every a with And operating profitable as that would and footprint is. ask going think you and stores my They to are be question most to that productive What be are retailer get physical are have real is like relationship conference they

So our as Whole also grow we their Foods footprint grows to be Amazon to with footprint well. still as have to great confidence with that we’re them and able going continue

Samir Khanal

that. for Thanks

Operator

your Goldsmith question with with next comes Our UBS. Michael from question. Please proceed

Michael Goldsmith

a Good question. for Thanks my morning. lot taking

How on looking level. momentum track seems the acquisition did some prior view? this does to continues return of As through exceed or think or that about kind reflect and you to announcements passing forward with quarter redevelopment? the grow your development you return this of leasing opportunistic do And

Lisa Palmer

that And I’ll are So business it we it. growing, or think about how let want model million. to if our estimating the neighborhood to we it and in open $XXX start me cash with our add think Mike up to starts Jim to, we When free of and they be flow. to about

that grows numerous about capital of we we record, I continue. capital Green, And mean, times. [indiscernible] it that developments. we the you invest can the it the successful just to use if debt said into quarter, believe the and ago, business. of in a we're to said company. again Glenwood grow best even – talked got the So $XXX leverage started best we in just that as that development this the have a I we to add track middle do over can started I – year neutral, we we and going pandemic. remain platform that We've essentially of that and We’ve is million assume extent today; we over the

are points continue did to pause we basis and be It brief, the points points basis very to was we're We flow. will cash that returns XXX best pipeline. XXX hit XXX use higher basis especially to looking pipeline, sometimes rebuild and button. our that that rebuild but when continue acquisitions. at that We And the of than

will we continue So, to that. do

with dispositions, can free how those have going us, it as And presented check when of development. invest own then redevelopments. those we And we – We've we when into with to cash we accretive monetizing to use be lot back three that sense. assets of also in once to then a our and nonstrategic rate, acquisitions. shopping really always equity be acquisitions, market it has fund then much both the talked us of that's future low to evaluate find boxes. you've portfolio, dispositions, will least flow to it other quality past, are look And cap accretive opportunities, the we will makes our when at like opportunistic We It's I've with to going centers at our accretive will and growth success looks capital. And had the seen our we to sources also tapping or rate, earnings. very

positioned able other we tap times have sheet to and of balance be those the also lean when in. to to can't We at intentionally sources use it capital, need we

low end said Mike target the our in operating now at As are remarks, leverage. his we of

and have So, buy to accretively. continue buy can We we capacity.

Michael Goldsmith

suburban the prices. there's your migration areas, now the population pandemic That was generated we're at helped and then trade kind where probably has some evolution follow-up is of markets. And on my helpful. period of elevated very And gas been a trade that's

traffic that that? the from implications you as wondering, your prices? was so, since are and your in if where data look your And what has at are I from So, increase customers centers gas changed to visit coming the

Lisa Palmer

our because significant there's enough increased make done any to to changes. that have to really know conclusions as don't gas we're any what yet traffic I prices data seeing not

areas. question that like have of of but it's kind necessarily not trade tailwind. that suburban – that still structural a increased way for seen, prices, that's – because but a – everyone. to early. such just But a it's I'd I'd you ring we pandemic-related tailwind It's to with in trends, So remind our been What like but a asked gas first

health We few within and report for continue home miles see another saw often research of at spend their to of staying home. their in. more system just to people staying close home. a a company I as People time I'm a their that involved XX%

going their So value if number to we've they're they're for shopping then and tailwinds. convenience. provide seen their grow even home could more needs trends often, visit centers for essentially that our those And actually

they've And wanted also and made for community the out systems chain overall do lot significant been best the from profitable. you question centers. talked figure a supply stores really door. that in – profitable, homes, how they most have a confidence that's there about tailwind way walk to mile could but Because still their to of of lot service customers it to we've lot this could it's of That their thing with and The do shopping and go the so customers the knew customers. retailers. a those second had the questions renewed progress. they is is the the to They distribution and – before, is from were marks neighborhood pre-COVID, their bit is that consumer's to answered. A they the if locations great work close most a of they service about The last little them

Operator

question Deutsche your Please next Derek with with Johnson comes from Bank. Our proceed question.

Derek Johnson

good Hi, morning everybody.

less question rate last the given Are year. market compressed more meaningful JVs cap to risky for traditional cap this as account more acquisitions private property strategy versus XX-year? taking executed you JV acquisitions, Is USAA the really into follows and and rate You especially that accretive the backdrop portfolio, quarter currently spreads macro viewing the and JV this marks?

Mike Mas

I I I'll that had it. don't smallish of acquisition more standing. effect part take circumstantial JV strategic, want in but our two We with the entities it. dismiss were strategic Derek, long – characterize is its opportunities than to would JV Mike.

I it elements, style they decision that when [ph] think entities. given, the for And the XX-year between for assets. Regency clear monetizing likely our size, of over your point, became reallocating given the the two and backdrop relationship to their was those some buyer best we're that is when is JV; just the And this – maybe partners. choice made, a the then capital best

properties So derisk time. underwriting? for it our We've long Yes. known these a does

properties we've properties long USA the In owned that partnership in XX partnership, those fact, although the the for dated, wasn't nearly years.

not extraordinarily them does we strategy. So There make calling the this know to is an underwriting. strategy. an That's easier It I'm for why well. end

we joint We remaining ventures. have have – still

We with long-standing those These vehicles. relationships. partnerships have are bigger partners, great much

we've $X just billion got which of think in primary the about one Chicago structures, gross value bought I asset we across two into through Naperville, transaction.

partners dedicated partnership arena. who Regency are center like grocery-anchored to really to So like obviously, really the the shopping space two providing, service that is the

circumstances So I what – we’ve two don’t see know extending this today. that these much transacted we beyond

Derek Johnson

XX occupancy your for this seeing, to and demand and both And a this demand at view or towards you are the time? so, more we have current leasing now demand you. small from? firm leading really have the between categories you’re underwriting right through anchor coming are year runway can small to take evolving pipeline and second where does really That’s standards in shop the helpful. somewhat What does shops And it on differ and seem beyond? is drive how loosened Thank

Jim Thompson

driver yes, continue great look with, robust over The I shops our level the are and anchors pipeline well We’ve a about believe. and has change Its indicated And demand, appears the health Uses, structural the in mentioned our medical year-over-year. price all regions. pipelines has line at we as cosmetics continued really been the talked especially in with as vacancies I pipeline to availability it’s start to done like as to I to off it been look ones it sector, the And earlier, as wellness, business. support It’s be the in Sephoras, past. I think, again, pipelines the a the associated the is. our Derek, really we’ve with think our from question. targeted The think it’s restaurants, uses and we’ve certainly of grocers. our and leasing fast that got names players home work least we good we demand, casuals, pet as the discussed very equal production. high what uses shoulder, across to I

leasing across that’s seeing We’re again, across not the one has solid market others. steady than boards. production really And hotter the the There’s good, board. been demand

So strong, we’re now the the experienced. very that going we’ve right really it’s of really production and feels direction level feels

Derek Johnson

Thank you everyone.

Operator

Our McGinniss question. is Scotiabank. Greg next from Please proceed with question with your

Greg McGinniss

morning. good Hey,

You answers give questions. and opening comprehensive such always remarks to

far so or anticipated? commenced by faster driven year, retention you tenants been store, has I been apologize So by get was that growth covered. already some increasing this in this originally NOI But as than the of that to than tenant regards expectation have driven greater able spaces expected in increased occupancy, the to

Mike Mas

of rates I Omicron now the in was had offer of probably what than sign think three sequential four remember is Greg, that’s points But than average weaker consecutive quarter initial commenced – traditionally hey, quarters perspective, That as the months perspective. rolling XX greater QX occupancy. and And basis former a through at our really you to ago, positive kind opening guidance, hard from Regency. a XXXX as it’s for to a volumes more retention an of increase in remember that a still context wave latter the of it’s retention have well us.

underpinning together that what benefits from discussed point ramp. up that previously So is percentage really XX basis the move what’s with

Greg McGinniss

Right.

increased impact are chain the you mitigating Okay. you. for And tenants? of Thank then new when supply and delays costs how preparing spaces

Jim Thompson

find I can indicated try to got coordinators. I help we got and our We’ve to We’ve we’re every in to tenants. expedite use remarks, As tenant think trying lever expeditors.

quick of and going permits what a get stay And be in we’re pivot as have. and feet pandemic, to one they’re we as And in need thing to everybody else do to get what open. with environment anything the can can. we We’re the learned on as possibly make ahead before there make to has to sure that’s your to get retailers be this demo much way seeing open, about trying That well. curb can we find to you

CD as find of them help on our we Bible. fast to going real a way kind eye can. that That’s We’ve We’re as got dates. sharp our

we to start we do make in we the power to So rent. those help paying get best and trying sure to sure our can can the are make expedite open tenants everything

And so successful. been we’ve far

We’re seeing a slide. not

Greg McGinniss

Thank Great. you.

Operator

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

Linda Tsai

A I might to is million. rough million. of that’s guidance? assume to for be of straight amount line Hi. how prior XX there’s not there a guideline accrual XX associated back period collection into reserves the Is minimum with perversion much baked a

Mike Mas

good Yes. a Linda, question.

up clear little bit. a me Let that

the reserved previously rents. million guidance collections So is cash on XX

of with straight item. is do line to nothing So line a separate rental conversions income. That

is on guidance our – item zero. are effectively We that line

FFO but we're you will predict through up the could when there’s a as with as comfort do to AR basis. some a $X through that I – come We would as item. head offering. range of with what I level quarter, that can’t have offer, line maybe had as of look non-cash I straight on to our as of converted conversion impact to million line that first nod our From the visibility are occur think potential bit million receivables, necessarily potentially little quarter look that $X on about I through which and We or to we of respect on in quarter. cadence we some did guidance in, perspective, heads million that $X converter We last a rent. that’ll encourage

Linda Tsai

since that. And above levels, Any how February centers? at traffic update, color but has in then dipped business on your having being for Thanks your January. in traffic showed you XXXX trended

Jim Thompson

available not pretty return not and as shifts essentially a point. traffic to - it's of our away data indicated them it fact, to we're seeing color, But widely patterns we're take lot and public very comfortable trying dramatic the XXXX essentially Lisa It's flat, any is to in level. this and having that in with at any earlier

Linda Tsai

Great. Thank you.

Operator

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

Mike Mueller

Yes. Hi.

locals of Just I shop versus leased local you dynamics? you a in here. any above as move driving about I national now. rate leasing the significant Wondering, should we that? And seeing mean, one it's differences how quick national your XX.X% mix are think right versus XX%, think

Mike Mas

the we've seeing of the operators. players and as that Mike, to our mix in continue same National buy to national their that marketplace local are demand see had. well operators really, of shop their kind small good We're livelihood, good that butter that's and really regional for certainly entrepreneurial we is good always local space, bread as in folks footprint. are is They're a beauty certainly livelihood. growing that's small have their the open

mix we're our is similar change. to very, but really So, what No very used to seeing. real

Mike Mueller

Got it.

you. Thank it. was That Okay.

Operator

proceed Our question. comes with Wells Please question Instructions] your Fargo. Fique Tammi with next [Operator from

Tammi Fique

Jim. congratulations, and you, Thank

lease in you of from volumes. opening seeing are tenants demand there? I'm and other while if a if that to then being are curious moving flight-to-quality seeing any mentioned rates new stores, markets performing leasing your your wondering locations interesting submarket, there a coming if driver new You you properties those are are note and or trends in

Jim Thompson

anytime it's business. Thank people advantage there's but what and People to that that doesn't We side, you color a retail we take trying judge, towards any quality the to it it see really the matter. and for of kind downturn in upgrade to in the like that's from move hard comment Flight-to-quality side, first. office standpoint. and of see intuitively we're

out grow rents those our towards put to in our we're of think we as its tenants to there. marketplace. rents, as I ability move far kind Yes, evidence what seeing As opportunities grow

Mike Mas

thing I only add Tammi if comparable will. is, the kind you about you you when And the – – would of I if other question think to other asked Yes. you, the competition

just always If portfolios. be you layer gap quality regencies there's – a leased of percent against that's were there our based will a the to and leased, large percent historic pretty market the upon

peers remember highly lost I as so at and we I to is then actually widens that time, the And the cycles, is haven't Not percent We is GFC the least amount can market guess than and in cycles even that much of but through I my space you the done go times, versus lease at leased public the tougher GAAP guess do economic that reported more are reported. that that shop our everyone look that our this, generally. and my higher. back when because

Tammi Fique

the for tenants and And that given basis to potential $X macro ABR at maybe year I on to a pre-COVID you million Can and million cash more but number Great. to compare on on is Thanks. or basis. you mentioned? then the And and then backdrop; it's just going just the think that that we one then us XX% point? conversion to $X remind going back cash are with just about this know accrual total were not this guidance in a Mike, forward, keep the more you as how where you the maybe likely

Mike Mas

packed Yes, question that's Tammi. there, a

very percentage your The – but over appreciate and pre-COVID? of pieces the speaking, of of your the course the historically time third part changed. good question, of a I one. have challenge too. your gap application think rules here, cash I the was It's has what basis third that go-together. first kind The

of those in so for as type I perspective. of at to will them look So range But speak. a digit ABR me it say is percentage think and target, numbers from the was hard to of it a the, it comparable back in was mid-single

into to time. and to When clear the going then number to which resulting impact because will infrastructure, there on getting XXXX. just and impact comments could somewhere the we're XX% side. that for but $X that the those to outlook we've I wish more convert what guidance with, The into that that is on I'm those potential can't. non-cash So would slip I unfortunately digit on mean, occur mid-single I the meet easily will million could $X knowingly a to tenants do that in XXXX, I accounting accrual expect they happen quarter, our million we embedded over think out the give there's thresholds you that given policies we

Tammi Fique

don't you interest Thank assets. partners Okay. did That's acquiring loan year. have look then you I refinancing acquiring also the And you particular quarter other next from JV additional for this time, it unconsolidated like the JV a assets does you obviously some you. maturities secured but and in at have helpful. sounds have JV it additional like in been on interest mean, side partner your some

be sold? those refinance or you will you if Thanks. those I'm wondering with expect will about talk and So can your discussions partners, just assets be to that those if

Jim Thompson

No, would expectation that those I the appreciate come Yes, is maturities when they that. refinance do we to. largely

Let into our give tying that there language there mortgages, acquisitions, are single me point transfer to interesting with and asset mortgages. respect you an appetite for those is these you within JV permitted

when of those for of life ability there's comments companies doesn't don't back are to no looking There on Regency would healthy our to I It of assumable to we the there be fit That the – is demand party. And refinancing portfolios. – see XXXX, the perspective, later asset. say exposure centers, occur. transact. a buying is on equity not grocery-anchored QX. XXXX. majority the true. and that vast profile before, inhibit continues is shopping why or and for secured They're my the side, shopping why partner's the wouldn't Goes demand financing the fit maturities oftentimes, there as downside Regency's good the So one best is I our there's for in placing of success We we good have there reasons no in is type. centers. credit side had product that's they that many success to that mortgage from these is buyer on perspective the financing, either one We just

Tammi Fique

much. very you thank Okay,

Operator

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

Chris Lucas

everybody. morning good Hi,

follow-up Just couple questions. a of

to the As rate commentary, you call. in Lisa, the cap made it that at earlier relates

maintain primary Just rate there's gone sort curious their coastal to has markets? In away? other cap at effectively differences. Or that any as gateway markets lower gap relative have is if of the the geographic words, Sunbelt

Lisa Palmer

look trade It's the area rates are very look driven. cap still areas going similar, to If trade similar. much

quality So acquire. difference to the for much really type a there's of not of looking that we're

Chris Lucas

a Okay. I Just where this that And cycles. of then kind you to figure to was curious there. a perspective of relative just been comparable your for long guess mentioned we quarter Has the retention? what out are time and historical from strength of period? If better quarters. couple the trying tenant there so, tenant retention trailing

Jim Thompson

I it have don't may think a higher. there's – margin, little on the been

Lisa Palmer

long time I could his think XX see on to years. That's about. or taking a back Jim

Jim Thompson

in what would I suggest. experience, my I guess But

four what of are I little last the tenants a in because been quarters think stickier through. we've

As think is least typical kind stabilized look has I that the future, our reversion to I – to average. a our look that long-term at at our I been for as of XX% portfolio. the

the asset within from way I'll seems that or portfolio standpoint. of, turn I a going a always churn to think the be level what say, the do. redevelopment amount manage There's number we the right internal of we be XX% to retention

see it. we're for So we level, a – we away XX% back the as like really things appropriate said, supply But big to asset to a proactive that think and get runway because we today I as the happy today's that. environment get doing that that I'm look is goes lease little management that that that I I'd we're at XX% and perspective, probably is above

Chris Lucas

this for Okay. Mike. And will then I be guess maybe

has in not Or structure persists, rent structures, look an and when is meaningful if a significant. I revenue? your impactful just increase number seen, part that the you we've that guess Just outlook. a component of – pretty particularly really then is inflation, collections of are there rent lease is on opportunity I percentage time? of potential obviously inflation that this just an the over been future for of sort mean, high the at for lease Restaurant food level. sitdown percentage

Mike Mas

going I'm to that turn to back Jim.

perspective lease more is it in of light I more for negotiations. respond. environment, your the Percentage to your probably inflationary appropriate becoming him think of discussion item a ramp from in

Jim Thompson

think – I I is. probably would Yes, it say

is from how don't more doing. frankly, quite other is in tenants but think, we've reporting become general proprietary I be perspective. used It given they're anchors than rather know over seen – the people what to XX just general late, a But reporting grocery want sales business. in last rent, percent has in the sales to years of

So it's challenging.

we think over the push still to time, I So percent it. rent, try

as But still think Mike continue is not restaurants indicated, will into an can even percent time, less, and good over to dent today, redevelop we it's think I that. And that that a deal base the and that I will very that we as piece is paying roll were opportunity industry over business anchor thing of an big restructure the happens they probably and we little think rent get that rent, other bar. bit I a reset a new become to have or and time. our

also that get So that expect percentage long amount the to can that rent of reduce term. continues is another avenue to we just

Chris Lucas

Appreciate it. you. thank Okay,

Operator

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

Lisa Palmer

Day it joining though thank you out Mother's call to Thank used it's Happy I I'm your we're Friday, going say days just want the so weekend. all. and a you for to us today. but all even mothers having enjoy away. to on I'm And all Wednesday, anyway, to there

Operator

conference. today's concludes This

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

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