Regency Centers (REG) 4 Aug 232023 Q2 Earnings call transcript

Company Profile

Participants

Christy McElroy	Senior Vice President of Capital Markets
Lisa Palmer	President & Chief Executive Officer
Michael Mas	Chief Financial Officer
Nicholas Wibbenmeyer	Executive Vice President & West Region President.
Alan Roth	Executive Vice President, National Property Operations & East Region President
Craig Mailman	Citigroup
Sanket Agrawal	Evercore ISI
Ki Bin Kim	Truist Securities
Anthony Powell	Barclays
Ronald Kamdem	Morgan Stanley
Floris Van Dijkum	Compass Point
Michael Mueller	JPMorgan
Wes Golladay	Baird
Linda Tsai	Jefferies
Michael Goldsmith	UBS.

Call transcript

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Operator

Greetings, and welcome to the Regency Centers Corporation Second Quarter 2023 Earnings Call. [Operator Instructions] And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you, Christy McElroy, Senior Vice President of Capital Markets.

Thank you, Christy. Please go ahead.

Christy McElroy

to Second welcome Conference XXXX and Call. morning, Regency Quarter Centers’ Earnings Good

are and National Palmer, Mike me President. Nick Lisa Joining today West and President East President; Financial Region Alan Wibbenmeyer, EVP and Mas, Officer; Chief Roth, Operations EVP Property Region and Chief Officer; Executive

beliefs As on market financial expectations about forward performance, uncertainties. and company’s a earnings may management’s conditions. of to views guidance and statements today’s forward-looking discussion future These including based are future current reminder, and subject risks are contain the business and and various

It’s presentation detail suggested from filings. cause materially possible that XX-K and today our actual actual make. results we in could may in Form and the XX-Q with filings differ our differ to these in materially are described statements by SEC, from forward-looking Factors those specifically results that may these and be more recent our risks may in statements most included

financial will guidance. materials, In comparable additional which we earnings have with Relations our on measures discussion are quarter’s disclosures presentation GAAP including website. to today, certain related posted also a that our our on measures. included this also we earnings note financial information, website Investor The are in Please forward non-GAAP posted reference

projected Biddle, Our forward Today’s applies forward-looking Urstadt accretion caution pending pro on contain to forward-looking forma statements materials. of may including and discussion close. company’s estimates with also timing merger merger also these presentation statements the earnings the about

waived. Lisa? and closing being or While close mid- shareholder remains we in the late subject to expect to conditions currently August, approval to the satisfied transaction

Lisa Palmer

a most in one you in Thank history. active We of joining the you, really Christy. again appreciate everyone. and had fact, morning, quarters Regency’s strongest us. quarter, strong Good We

the facets success of including course, development from announcement came all starts Biddle merger in and, of the Urstadt May. leasing, Our business,

ready to on emerged pandemic, foot capitalize Regency I since well that growth and we’re times is said opportunities. for our sustained that so the many from front we positioned on

by of this. work the portfolio, position. strength our current the the reflect achievements in sheet team, the reflect and second exceptional quarter our balance Our environment They supported of our retail

is As the landscape, we’ve signs uncertainty still of know, we but all softening. at any seen there macroeconomic not Regency, in

our trends by healthy strong. business the our remain evidenced very fundamentals and As of are results, operating

leasing a robust, From momentum and second it’s supported quarters demand sustained and of perspective, was our the tenant in lease one and is our ever, quarter pipelines. LOI by negotiation strongest

as we of is ramping $XXX a million we exposure Tenant investment. goal back pace importantly, have expected, our that of retailers strategic and million to From these bankruptcies redevelopment to acutely you limited. know focused been out to most activity of annual average of perspective, a allocation are playing development on our but $XXX capital our

second starts. us a success value development and I’m a strong really the such often Nick by more Regency, gratified and proud our for always discuss competitive demonstrated that has new project it is of a but and core activity creating through been is competency redevelopment in advantage will for overlooked. by quarter detail,

best the supply team platform is centers high-quality can And the of ground-up an we said with and development, in I have new move where before, the I’ve needle we environment lacking. in As believe business. really

of driving beyond to be NOI above the our a with accretion as our growth will flow, same-property Even we growth our high activity, well-located organic pipeline properties basis a and are free earnings and ramp are continue cash leverage-neutral that self-funded generating. component quality, on sustainable

hard to meaningfully align presence both in trade of our The are people this timely working transaction proud expand integrate Northeast. areas own an strong with so Regency. in to the on our centers regard and Urstadt merger effect excited Biddle, shopping efficient and teams both into to their centers and the many close. With we’re of sides These and these are well

As also operating platform. unlocking we national earnings, forward immediately accretive be value leasing and to it management our core Mike our umbrella to and will portfolio look under asset to we leading the within of discuss, expect the combined

Another our annual late was of corporate of May. the quarter responsibility the release in highlight report

is commitment ESG driving a report initiatives us the and This many synthesis forward. our of to

extremely the to of throughout long-term are We proud to are integral organization financial are progress The that achieving achieving embodied continue strategic we towards and goals. our principles program and of our objectives. make our our

Regency the Alan, today. of the by very the suburban to given positioned over we strength of well operate, grocery-anchored in it this turn shopping which I’ll that environment assets, trade solid in areas is fundamentals I business Before supported our reiterate the center

liquidity balance Alan? forward. sustainable us will going cash flow position remain sheet allow growth driving to Our and opportunistic

Alan Roth

Thank and morning, you, Lisa, everyone. good

to retail quarter as a continue another environment particularly leasing benefit from demonstrated We operating fantastic results, on strong of by side. the

XX in volume And average. leasing XX% years. New volume is second leasing shop new our year-to-date the over achieved historical our above in we highest quarter,

another As lease basis points by our shop XX.X%. XX a to increased we rate result, sequentially

same-property lease points up second rate of further portfolio. XX to loss strength points quarter due in of overall Our validating the our XX occupancy bankruptcy, is the basis basis despite and quality

leasing also rent with and came quarter strong basis activity blended spreads nearly XX% new cash a on on leasing. second of Exceptional XX%

spreads drive steps helped base a rent same-property successful rent our in us our Our on NOI basis. continued another in success strength XX% for quarter reflected blended rent with of is This and trends operating contractual GAAP growth.

from limited and coming off-price, broad pet of not including is to a medical, but demand Tenant restaurants grocers, range services. categories,

XXX represents of base over spread basis Our and pipeline occupancy signed rent, incremental not annual wide our same-property but $XX occupied points. million remains at

replenish we quarter, of each deals. with execution commence our SNO leases executed continue new pipeline the to as Even

with ahead, full, and LOI feet negotiation. leasing pipelines As X under remain lease we another million look our square

mix larger line a activity historical effective which per rents But terms, remain second CapEx. deals importantly, with Our in leasing our in did of quarter lease foot square include longer space with elevated average. resulted net

making excellent regard leasing progress. and Bath vision former we Bed With to our our Beyond are spaces, backfilling & executing

was of ABR. of points our filing quarter You’ll at recall the ago basis that time exposure a XX the bankruptcy

of at purchased locations by Michael, three executed and auction we were fully Burlington and have Two additional leases on our spaces.

with and in-process at spaces pursuit couple on team multiple interest significant a projects negotiating the locations. actively our is remaining of redevelopment of the including have the prospects, We

anticipate stores. we Bed the for market our former approximately Bath to average rent marking on by XX% our XX% Overall,

we’ve rents As previously, in to we feel bankruptcies confident real noted upgraded our high-quality often tenant ability higher when tenancy. estate our at re-lease occur and

current success hard of second we closing, of the recognize only work is that best-in-class strength quarter the In the our and leasing of assets our the reflective but our not environment of in momentum create through even Urstadt properties We portfolio. the and Nick? and more as continuing people team. high-quality operating coming in combined work see value we to the integrate that and Biddle’s months

Nicholas Wibbenmeyer

redevelopment returns Alan. very million had new activity. made costs, Thank everyone. Good our while for consistent morning, great pipeline underwriting. We on leasing progress a quarter started $XXX in-process projects maintaining and gratifying and exciting our across several with you, and and development We construction and timing productive

and to also teams We pipeline projects started That incremental continue I’d their to for build amount XX quarter, and million. opportunities thank In Regency, totaling $XXX see impressive future new second meaningful for efforts. the our is we projects our investment. development development like an of for and redevelopment

to construction years reflect ready of projects start sites. us these these at scenes, to hard behind commence As getting the work

ground-up I’d last we Long quarter. spoke like is first development Island on highlight about $XX Foods Sunbelt. The project anchored to that Whole The million

opening The on Foods which we heavily in Sunrise retail and Construction of east-west in square properties is in May, New the XXX,XXX commenced dominant and the the Whole located the anticipate York trafficked in corridor artery Holberg, market. center on Highway, foot XXXX.

leasing interest already the transform We Serramonte us of City. of well signed retailers. as the leases world-class have have This JCPenney In many small market seen shop including from started other buildings best-in-class Starbucks to allow the quarter, as as adjacent also the second Macy’s. food space redevelopment Phase the well X with quadrant will in of of with development Citibank we Asian redevelopment Northeast new the to of Daly X former a significant as our project and property,

creation look the continue even demand this components in We see and future. all significant asset to to more throughout forward value of

also shop Foods and new Landing include X-tenant of Jacksonville, will XX,XXX Baptist building. square pad our in foot anchor, Whole space We a new a Health additional Center, redevelopment commenced Mandarin which Medical

the more projects than contribute and few solidifying lifetime, the starts, projects work did redevelopment an incredible weeks teams opening appreciative with of corridor. teams X I’m will a now construction job of proud million Crossing done was further tenant which had new successful a very asset of center development flagship of and have amazing and Clarendon rental the addition state-of-the-art Rosslyn-Ballston million leasing collectively completing of gravity at our quarter, an $X $XX our NOI. these a to during in largest XXX% In redevelopment leased in which is The annual the the the project ago. the including where second The our mix, Virginia, Arlington,

ahead, our more in new investment Looking strategy, than well cornerstones portfolio capabilities, our our on our ground-up as The laser-focused as development Regency’s and relevant sourcing existing capital opportunities. contacts These projects. of include the are development redevelopments teams new X our are within current ever environment.

developers locate with help the expand, Our the the desire ability of them throughout that country. to leading we shopping to have are a high-quality continue on grocers to few one execute and their centers new

our next Mike? billion build X combined relationships, long-standing opportunities. objective achieve over our us with of access starts capital, $X and to than of continue pipeline to our strategic We uniquely more on expertise capitalize to to the our position years our of project

Michael Mas

highlights results, provide position. a comments to finish everyone. guidance, Thanks Urstadt to good Biddle and some Nick, I’ll merger morning, pending and with changes quarter our estimates for our sheet few walk balance on year second start accretion through related our earnings current our some from with

quarter by after reserve the the We X.X% of in grew period same-property collections. COVID second impact NOI excluding

driver basis the the in rent, rate largest to continues quarter. contributing growth the Importantly, NOI XXX be points base growth of to

growth indicator calls, and to online. growth is in stress most our was of And redevelopments of embedded portfolio’s coming continued positive occupancy spreads, we’ve our combination As performance. the by growth QX, on resets, in important base the previous re-leasing driven rent

XXXX Turning to guidance.

on the bottom As same-property growth operating our earnings. range NOI impact, our add, we’ve I another the core end through the and quarter strong Driven around and of FFO X always well raised presentation. as operating ranges NAREIT by our for helpful I’ll of strong, in clarity to may current refer greater if detail environment leasing, as X bankruptcy you earnings incredibly Slides and

certainty the more some eliminated downside have margin, at previous scenarios. With we

now range same-property updated Our X% growth to is X.X%. NOI

from than to bankruptcy absorption While closings. offsetting expect the shop credit the total and year XX benefiting first at basis maintained loss now we our contribution occupancy, from points, of leasing strong from half more impact we’ve greater assumption commenced average XX the negative through a

is our the core $X.XX NOI driver earnings the range. primary Same-property of of midpoint the operating in guidance increase

and us now locations. known, from on of outcome the behind auction those impact the to rents With those of Bath have the clarity Bed acceleration we below-market now stores tied

our full the million year, below-market within half been we has For accelerated which $X anticipate non-cash of about guidance, recognized of year-to-date. roughly rent

Our to basis tenants impact cash straight-line with from full includes $X.X of quarter from million year expected non-cash up guidance the rent the associated ago. of of reinstatement conversion a also back accrual slightly

result, the our range, FFO As million, which $XX.X raised plus a $X.XX. NAREIT up we’ve or noncash positively minus for items is midpoint to of assumption impacting our

For those items, be of consider million starting in year million these this $X XXXX, combining both to think undoubtedly that to we noncash to are revenue nature. of non-recurring $XX about for

remains non-recurring collections for speaking reserve COVID XXXX million. our of items, guidance unchanged for at $X And

and of our cash with material on currently recur in last XXXX. reached on accounting are collections to collections As agreements, today, only not X% we of the tenants a COVID of any deferral anticipating period we basis our thankfully

I stand-alone we not and do and by close ranges to basis of any from the details guidance Urstadt in only updated impacts yet the month. Regency transaction, this just which on the end reviewed a These Biddle factor expect remain

assumptions offer year forma in current We detailed we a a quarter pro the updated will basis outlook. meantime, when more come. are third more on to prepared high-level report provide guidance our results, to But so we with

minus year of impact which deliver of $X full in per of reflecting to plus about of operating core accretion or X cost G&A XXXX, incremental is to the annual million for X.X% include and expectation months XXXX, accretion earnings continues share an synergies. Our estimated $X.XX

for the making all progress we’re teams items. is NAREIT not future estimate and it as prep, not are closing company. noncash integration Importantly, earnings, include the merger any and for to accretion FFO operating of does impact the prospects excellent excited The this with core combined

end our of by balance highlighting X.X will leverage strength merger. Biddle With at allocation low remains following which finish sheet, X of debt-to-EBITDA remain sector, the close Urstadt one the to the sheets in the our the so foundation is strongest the I’ll our of strategy. REIT of of of balance our targeted overall capital range and times

free are And self-funding the our $X.XX access approach to cash meaningful generating our of pipeline Nick year, our with total XXXX. that this highlighted previously. through significant through XX% growing We of $XXX expected than flow, million liquidity credit billion of have line end investment to we debt maturing less

I can’t providing an us enough remain the flexibility the sheet and strategy. investment our us importance balance on maximum as stress strength our cycles executes ability team economic allowing and opportunistic of throughout to

With your that, we look questions. forward to taking

Operator

[Operator Instructions] with from Citigroup. with And question. the proceed the comes Mailman your first Craig line Please question of

Craig Mailman

a kind appetite to the on even redevelopment guys are talking one-offs Hey if pipeline what of portfolio market. maybe guys curious know wanted Clearly, here. the [Ph] is the I portfolio transaction good of and bring UBA focus your the have market. guys what if little a an on of or been going just after now just merger a I’m the morning. to But to lot into swing bit I pertaining acquisition Lisa, base you the in in touch about closes? you buy you the have peers there’s seeing just within are

Lisa Palmer

of Yes. Nick. business Craig, I the order to but appreciate question, toss to going be first to my that is

Nicholas Wibbenmeyer

I Craig. question well. appreciate morning, Good as the

have definitely as been hearing seeing close you activity there’s then, yes, no guys but still and So question. remains

pace the bid-ask tightening. spread accelerating coming seeing and opportunities We’re that is market to of

points X starting a of the on deals, drop size. somewhere the cap even come we’re seeing But to so on in range rate. to And and we below Xs certain data low definitely them rate on X are see depending up the growth

we understanding so And are pursuing them. them, underwriting actively opportunities, these

earnings, see as growth And move opportunity and if think our rate that to ready forward. we then accretive equal to and an we’re our we is to quality or always, accretive

capacity have so. we to As indicated, Mike do just the

Craig Mailman

shifting Great. And then just to leasing.

portfolio. guys just kind had begging impact. absorption some issues You I’m curious good just had any the the have here shop whether of in monitoring

Just that vertical access is be and across Or the at tenants are demand off issue it the continues of kind to you of an board, here? particular shop guys been any seeing for backing maybe capital not all to the space?

Alan Roth

it’s morning Alan. Yes Craig, good

We off yet. have backing any not seen just

And all. impact so your at to backing there’s been no question

feel is have in the In X really fact, would about I where which now. feet we right take million good pipeline, us negotiation square our we active still nearly that in to pipeline

yet. just nothing So

Craig Mailman

next million X that how that of shop? could in square kind quarters? we Of rate be would of feet, tick where much of And the see that lease couple to

Alan Roth

activity. probably towards It just the side, in on of board pipeline shops the anchor more in really both and across the leans it’s terms but shops Craig,

just I limited I that. that lot course, think opened of of given a box a ability spaces identify Beyond haven’t there’s bit to Bath is had the retailers of and, supply & Bed the junior think,

So towards shops. portfolio, -- the leaning I the again, of it’s think totality it’s really but addressing

Craig Mailman

you. Thank Great.

Operator

line the from Sanket proceed ISI. comes Please question. question of Evercore with your next the And Agrawal with

Sanket Agrawal

morning my thanks for question. taking Good team,

I just curious around leasing just was activity. -- I So

leasing low that quarter. in activity second quarter again first being saw picked we in As up after

today we as So leasing to we wanted half XXXX? spreads as understand the just into conversations and for are how second model and of

Alan Roth

Can you repeat the is of an last seeing just part Sanket? uptick? you’re that

Sanket Agrawal

for What activity to year were on on second So conversations -- are leasing spreads for a this what wanted and model right? like are the we basically, just contents up the ground know quarter, So leasing of this today? XXXX? half the

Alan Roth

ahead I’ll see Sanket, if question. answer So and can that I go

really ground positive. the on still conversations leasing the remain So

in the We’re achieved second certainly, spreads think, that of, very the proud I the quarter. we

was as on almost leasing. you XX% new saw, it I think

mix function little had of shops the you we lot of And the I look to exceptional. and and a mid-teens, in few out, the at quarter more going is still a But for just you’re the deals anchor we shop of our anchor where that was anchor really front. if the bit a on of a really which were spreads those take think

team you probably into I’d the which embedded And to XX% on rent spreads, again, and has really market the were your really I bring for question. focus GAAP ties our think speaks the the steps also rent strength And of to the outstanding that towards and quarter.

Lisa Palmer

the with I’d shopping opening suburban, of hearing from abating especially just remarks from And our some, perspective. is And just are our come our centers. overall inflation in are well benefiting anecdotally, we back grocery-anchored to as business strength that a cost tenants that

And also there’s labor been the improvements front. on

hard really with don’t leasing our offices We and on any centers. evidence, great So conversations people that, with across our the relationships again, it and fast our have but do all close and ground. is the of with country that’s we anecdotal, have to the

So again, strength continued this point. at see we

Sanket Agrawal

have Okay. I a follow-up, sir. And

As you you Urstadt portfolio study gap or what difference that close that did acquisition side like rent to versus your trying the that as you are similar much Biddle’s there has Biddle portfolio guys you over So guys acquire quarter, to is base in guys on the expect how portfolio? behind in take this the markets? is

Lisa Palmer

bring just properties our I’d we’re to, under into really that you back integrating portfolio again, about these our platform. excited

heard is capitalizing that As we us on reiterate some today, really believe say we to and announced upside asset from there we Regency bringing into be leasing just leasing when and I it the and you the merger, think going do that management as platforms.

Sanket Agrawal

you. thank Okay,

Operator

from comes of with proceed the Bin Kim with question. question Truist next the And your Please line Ki Securities.

Ki Bin Kim

point some in throughout quarter. year? that just going point burn if morning. with a should rent be little just help there’s below-market can had boring good should go trend XXXX? really XXXX How this How a to If a you that in off I’m to Can start at more and me Thanks curious topic? bit I off the back question. you -- bigger or

Lisa Palmer

questions, no no and answers bad are Bin, before questions. Mike that, there there Ki boring are

Michael Mas

later I and come summer, to as finish this later we more offer my XXXX. guidance right, will the spot budgeting -- out will we’ll much I more mean off on limit which process, to kick XXXX year. this this

bring good spaces really point, you off targeted mentioned Bath up a burn Bed & to Beyond will call, on in a there But I be the the particular.

we are them the So to versus another first. in losing non-cash anticipating the simply just half of income second $X million related

with reinstatement for for plan helps hopefully, looking you’re not respect full you So as item, we our well, to remarks guidance. my think the about in that should And that you rent what prepared with plus that year recurring. on of straight-line as

Ki Bin Kim

obviously biggest there’s standouts? And discernible curious market. and Thanks. And any just level, when at is terms kind any California California of in your high spending traffic compare I’m trends patterns other Okay. you markets to your if been or of

Nicholas Wibbenmeyer

Thanks is Sure. question. Nick. the for This

seeing So definitely of not in country. to any California difference the the rest

majority the demand board, and California, And inclusive again, Area seeing Bay We’re markets the in California. our is point all the I that still are of properties significant because strong aspects even even of of would across in seeing suburban the are out in that demand.

very very, LA. out leasing we’re with we’re seeing the the and so pleased velocity activity demand And the

Ki Bin Kim

And that dropped Was occupancy could if here. deleasing just at can York you share XX%. third New or a MSA on X quick that? I squeeze The for anything development

Alan Roth

vacating Manhattan, Ki the Bin, the deal. of in that’s think I grocer our

replace so already that we more the of but can’t next announce is, to a majority that So come in lease again, executed space, tenant we’ve to who a quarter.

Ki Bin Kim

you. thank Okay,

Operator

Sanabria BMO And proceed with of your the comes line with Please from Juan Markets. the Capital question. next question

Unidentified Analyst

sounded [Ph] and on the you year? Eric of like the for XX your quarter Juan. occupancy Bath I third other It’s curious loss of remarks, prepared remainder & was had your the According for potentially bps bankruptcies. on related morning. expectations good to the of it kind Bed just Hi, Beyond to

Michael Mas

spot communicating But year-end, down by has second from changed anticipating that Eric, expectation the actually now quarter, modestly Last Bed leasing year-end. lease lease the we team’s in activity last lease result as Bath a from I that were an given a as by perspective, modestly & we’re category percent percent Beyond be rate in percent being the incredible a of filing. up shop quarter. this could quarter, Hey mean,

So Regency. here super excited about that at

to that, commenced only be anticipating XXXX. time commenced non-occupied a a year-end slightly as and rate into assigned the that we and matter we are at spot down perspective, from is However, pipeline that’s deliver going going of

Bath the second making to planted the and fact for were the So all as us going well. seeds really, the that stores the incredible leasing re-leasing the into delivered the that’s in Not to leasing calendar the team a XXXX. dividends and of we quarter from move we’re progress pay as Bed mention perspective, on that that turn vacated

Unidentified Analyst

following about $XX Could then and the That’s little more XXXX? up timing Okay. snow a into talk just XXXX ABR. commencement that helpful. bit pipeline, there of you that on million the of And just in then

Michael Mas

about by basis say nearly our year of points, roughly year-end Sure. end -- it Yes, of rent. of X% the this That’s $XX about got I’d Abbot. all you’ve of million it XXX a of by next. and pass all And . it’s

Unidentified Analyst

And last for helpful. me. Okay. one That’s then

the the was given per bumps Just And you I spreads, acceleration quantify expected annual is basis. floor both that on Any the a color in GAAP new would helpful. just there? Is in the a rent on a very quarter. and could wondering that be that to trend? cash be the second leasing if

Michael Mas

in are getting What in we current Alan, bumps from perspective are leasing what activity? -- getting our a we sorry,

Alan Roth

that you for thank No, Eric, question. Yes.

new steps We deals had quarter. are our of this getting XXX%

So team or steps. had embedded that And I those importance that embraced escalators would the of very has deals proud more. and of appreciative X/X of the at that rent say X% number are

shift, front. good that So on Eric, pretty we seeing are a

Michael Mas

into a And an leases. impact job steps. then rent our us for points time coming been basis And as the has XXX done rent now Eric, growth that’s from of embedding consistent long is pretty an base our perspective, exceptional growth of team from for

and single forward. based momentum impact this to pushing We day, are hopeful every we’re that on move this we’re -- going

the and is are that teams north mountain tough we great to moving a work. are from that doing same-property is where climb, it impact -- it But time, we’ll some but to now, growth take

Unidentified Analyst

much. Alright, thank you very

Operator

McGinniss with your with Scotiabank. of comes question next the question. Please from Greg the line proceed And

Unidentified Analyst

typical [Ph] at terms agreement McGinniss. I is escalators changed, a during does all, question on leasing in months has concessions, and now Victor how Greg a have what if X like last Pete of and on it look GIs? This here the

Alan Roth

Yes. think, Victor, a the the that results bit as by go a in arena, question. it in shifting up evidenced you seeing. for of I you’re perspective, say certainly some from market we’re landlord that. not the market But has seeing terms the thank would shifted I of capital just

pretty For did generally occupancies deals us, specifically, we moderately perceive of mix quarter, this to just we towards the portfolio, up rise, our as our terms. as choose gone what right of that always as because really leaning continue feel we quality it’s retailers fair more good quarter, with the and of market But asset about the we the the anchor speaking, side. intensely ability portfolio manage certainly

Unidentified Analyst

very you much. Thank it. Got

Operator

Please question from with line of Anthony next question. comes proceed with the Barclays. And the your Powell

Anthony Powell

morning. on good bad question Hi, A debt.

bad I given debt peers bad the think of Other reduced here. kind their you same. kept debt some better of guidance have expected your your -- the guidance regression

others, than are You there seeing front? lower what were just you but on that

Michael Mas

say reserve. here some Anthony, is let’s basis question. our XX credit would the I We XX there loss I guidance actually; our left correct. What points unchanged, of get range to first. stats appreciate out

That’s points. from losing coming to we the So XX recording all with are think what’s line bankruptcy now, you’re impact, also X expense the but that’s this you’re bankruptcies, to unrelated debt bad comprising from I basis right? right? Remember, XX base rent the different but by items, familiar

from that we’re bad guidance midyear, XX% would of the coming bankruptcy from gain. about at Two that balance through traditional debt impact, and say so estimate way the the is that of thirds I

me out of the probably to arena, Let points bankruptcy range. this that were say the up forward happen point closer basis to end if in this, we’ll nothing from XX else

kind so And feel of have would unforeseen more XX it in a second. we’re But to It -- of the impact the does do back a negative just be of first basis points careful here, in with the seasonal. past, as tend satisfactory But half of that we that like bit to all that in little being year. in any range. of feel as does the uncharted capture bankruptcies if happen half could we’re be territories talked kind a about

Anthony Powell

it. is or here. more approached Got sector like in do Thanks. then of strong developing. you well fundamental Are obviously private have very been you and successful It is other guys pretty on a capital being doing sources more sector, And seems the by equity development? maybe development. This X to firms

curious I’m there. hearing So what you’re

Nicholas Wibbenmeyer

Anthony, this is Nick. appreciate I the question.

doubt now markets So liquidity loans. challenge construction a liquidity there’s is developers. the no financial most are for all challenges; right about talk in We tightest the

share going said of for make reasons. And now. make more our prepared developments to deals happen is opportunities. our And than for opportunity in mean an plethora we’re that right tough to capital and us. why a fair really so happen They’re bullish necessary really are of our But that’s that we get really contacts, our feel as I we remarks, our capabilities, and very all to

and news we our tools capital to so be appropriate. using from it have business, those need good developers and be that And the it we’re the belt, have as tool whether is everyone already capital all interested, in we whether in the

about, deals of future in online bringing hope future. excited so the this start construction And obviously, to Sunbelt quarter announce and

Lisa Palmer

growth. growth And an we been -- $XXX it regards leverage-neutral essentially cash of as earnings with with again, the needle important move model our flow enhancing earnings at free really company, long and remaining our and it development, enhances and into leverage I’ve million been development that capital of the just has that we for part business our as our does to invest can

Anthony Powell

Thank you.

Operator

with Stanley. question. And Kamdem with Please the proceed next question comes your line from of Morgan Ronald the

Ronald Kamdem

Hi, quick couple just a of ones.

stuff non-recurring year. the sort So of on versus recurring or just starting next the this year

Just to that. get around trying my arms

tough comp I sounds the past going to it stuff to think reserves collections next items biggest is mean, sort noncash I and of the year. certain like of So be

it’s basis, gains whether targets? same-store But fair to of the your closer occupancy NOI whether long-term a it’s of cash some from that is sort should be that

Michael Mas

Yes. Mike. it’s I mean Ron,

make million to be to wouldn’t items some maybe by rent noncash And the the catch remarks. to the rent straight-line I $X very on We try next There’s want below-market as the that of reversals recurring to. we that it you’re million $XX Just as recurring. referring driven FFO -- won’t acceleration. year, to of clear in and plan well

year $X another perspective, we’re of to getting that a million bottom to from that thankfully the guided prior and bucket. There’s collection we’ve

that in that’s those of So range $XX you’re impact the FFO to noncash will million of And again we of remove look core to non-recurring the items. operating continue through -- earnings collectively, component. why the

direction the care So will think that’s should of prior a themselves. then better And be. reflection year take of AFFO what collections we

Ronald Kamdem

Got it. to these some I going presumably, more of think have then headwinds guide. the you’re any NOI not about merger, -- sense. mean, to the And think the on same-store comments I Makes so of UBP I you made going back

So be else mean, like if Because strong we I I about? sort thinking think right? past right? look strong. puts pretty could going So you seems should these it that be presumably, noncash what the I everything like it XXXX, are the of be pretty sort takes, it’s debt bad year, mean, items, of to a Is and

Michael Mas

talked too going little Yes. we’ve I’d a appreciate careful, be Ron, much you about XXXX. to I’m mentioned and it.

do to later a give customarily as in We’re forward-looking guidance of that year. full the going we suite

So careful I of be kind there. want to

deliver as perspective, contractual But talked we we steps just rent from to rent continue from increases. about, impacts a just will positive

impact. In on continue I going us point far having basis impact anticipate would spreads that’s alone, positive spreads. an to that a XX great We’re forward. positively rent year year rent this so

Urstadt which where today and is. run. levels. still -- have more portfolio merged There the Commenced That level about a take include to our achieve XX% XX% room total of to-be those the occupancy, was some us we top for shops earlier question which on Biddle, will is time would on end. eye to

basis There excited spot we’re and occupancy levels from today, ours portfolio. that’s at about XXX below driving points that what about growth

Those Abbot key Something income. online you fruition basis mention finally to talking into like are We positive for in didn’t large contribution -- that as XXXX projects continue Common of online, for These through now, XX year been brought at Clarendon. brought from exciting will we’ve us and to NOI well. supplement, that it the and they’re We’ve projects out contribution. points redevelopments. we’ve the next is years about into Market grow positive coming schedule feels our and

But be from of a our loss impact perspective and year, an into these list we’ll from XXXX. the a limited. perspective, pretty bankruptcies will negative you looking there as to as impact credit is exposure tenants watch this just know, adjustment And make a

share that’s as come, to for give on merger as later XXXX on today XXXX the we’ll outlook well So you what much both our outlook, to I about more on this year. base want and

Lisa Palmer

in mentioned increasing you in you important probably that accretion we reiterate, UBP portfolio. occupancy commenced from in opportunity the did in case merger. the X.X% know But COE the that say I XXXX remarks, But missed the to just expect Mike prepared

Ronald Kamdem

Excellent. Thanks so much. Super helpful.

Operator

Compass with next Van line Floris the of Dijkum your from And question with Point. the Please comes proceed question.

Floris Van Dijkum

for has Hey my had you historically development. DNA Regency I guys, thanks your taking been always question. guys is

supply, you if into leaning development sort will. when of else exceeds You’re now nobody demand still when can

well bodes that your for think future. So I

West including looks I couple a And I mall typically development, risk like anchor property you noncore yourself take you’re it of and different -- us doing how you types what’s to you a the in let residential residential. doing and don’t doing Barge again to of types? Could box that? how remind see look stick you’re your knitting try you’re you some -- that some or would residential doing the believe at are others at a former and at repurposing

Lisa Palmer

also Floris. the Appreciate I the question, appreciate And comments.

You are correct.

It of core of really are highest on we the some to are retail our the of are It there when good is portion of yes, advantage. pieces focused on going and our And We competitive competency. quality focusing are we what property be land. mix a at. is development. uses is It

be will capitalize on uses. for not other there our specialty. is Oftentimes, And that, the demand it but types of case, is to going we’re certainly that when

that it with needed we Folsom someone that we So core -- of and may but optimizing mean the land. little a we will will And who typically is that mean is the ensure bit their the invest we that capital, just invest project we expertise to bring in land. partner always may competency. have It that the

examples have said, Westbard that, we you is of one. And as

is to with to which the in Nick X do familiar the we’ve where the third. partnered Grove, with California where have street is from across everyone, out residential rebranded We Bluemont We’ve it Holland is it.

and the question, Floris, are right. you appreciate I absolutely. So

centers. on of anchored focused suburban are mostly We shopping portion retail high-quality the grocery

Floris Van Dijkum

post And correct? then merger. I Biddle state. market the wouldn’t clearly going as your Is couple a guess California consider of different my follow-up New biggest be Urstadt York I here. It to that the there. market, has markets in particularly But is

Lisa Palmer

Yes, markets States. markets. we our like The that United a fact diversity. have not areas, if we’re offices necessarily the say you not correct. the that as really I it’s And think trade we focused across portfolio, on the very know, and macro geographic state again, is you And composition,

invest continue high-quality already have portfolio. we in markets are we opportunity our And to the shopping the to to invested when will we in add that centers

Floris Van Dijkum

guys. Thanks

Operator

with the with JPMorgan. our from of Please next And Mike proceed question. comes question your line Mueller

Michael Mueller

Yes, thanks. hi

It the spent you Urstadt with seems So little a time. bit more like portfolio.

say, compared Regency NOI potential Just existing to curious, how are you X-year the portfolio? thinking same-store the about, CAGR

Michael Mas

I’m prevent to close, answer closed Yes. for yet. question. the Mike, team to the More sorry, going we’re me to on not come the

We have spent it. time more with

that We’re since the has announced to it. we as look amplified. at of merger and have only we started None since accelerated changed. as been we excited It’s and

maybe we in disclosure point in including actually time, anticipate As a matter pool. of don’t same-property this guidance, it at the

treat We asset acquisition. as it will likely an

it’s necessarily will relevant. growth we’re isn’t how -- So But time question, do to your the when the about to our so. portfolio same-property talk excited impact technical

Michael Mueller

Thanks. it. Got

Operator

Wes of with Please Golladay Baird. line with your the On proceed question.

Wesley Golladay

Hey XXXX. of just at view everyone. to a I want look high-level

that potential point? year are for redevelopments, know this at you going material any anything to more Just deleasing to you the in size headwinds. find And particular, next be of of trying

Michael Mas

Wes. Hey

I about coming to from to largely headwinds and we think I’ve they’re want already, area. talked talk the non-cash the

So the also $XX $X the million year of of impacts. We’ve talked million about collections won’t prior $X to million recur. that non-cash non-recurring

previously, limit to directionality. The going our conversation today. again, I just we’re redevelopment mentioned where impact, That’s

contributor to continue the positive out. as will support, the forward. And a going that see can We details in map of that you are that

Wesley Golladay

propane you Are it are is are higher pipeline? the you is your free higher could just I cash capacity? retailers Are yield you up a much picture. pipeline And where yield? enough. by to Fair to What for development for bigger a those is you your a give today? struggling, see then a you guess, coming willing to the development accelerating What’s outlook the lot developers high. having quite what your level Okay. higher? pipeline [Indiscernible] saying, maybe the There step definitely and hey, up of conversations? than take Could they Are governed maybe flow more you

Nicholas Wibbenmeyer

dialogue continue excited in I appreciate years, to business the question. last Wes. line. several Their Nick. stores. grocers the The about over good to country. our is been There partner we direct Sure, continuing question very want to the has This is with grocers no their add and grow top around are they’re

question, Part cost. rent. of no there’s pencil financing so making and challenges to of isn’t of those And cost, deals X it construction of Part Part solving its all part there is there are entitlements, those but is solution challenges. it its

all about only capabilities, share which and tools, every the we’re those relationships our we we’re and in and in capabilities those because have our are of than using a job companies of I our why tell the stand of so that have And one long would time lever sure middle all in excited make been tool those we’ve fair have as as you, country getting every those knowledge. the to single toolbox, our is of pulling in more us that have allow

so development I’m on ahead, growing go in the bullish the now. pipeline sorry, And cycle Lisa. we’re right

Lisa Palmer

you were Sorry, Keep Nick. going. No, thought finished. I

Nicholas Wibbenmeyer

have prioritized allude I behind and to, that lean we we together. it, a indicated, indicated, opportunities sheet sure we as have to Mike to appropriately as plenty Lisa make those And can just we is free capacity. those to for have was as we continue going balance put of pieces cash into flow

Lisa Palmer

like to million we’re that be I time years could $XXX and was Yes. set may $XXX important -- And limited I it going been the haven’t the where that reminds be be we has that we from lumpy because little do If been and going maintain Nick it’s to and All to say some my that to may more that, it’s I that there there than a discipline. some -- the be I less. me it’s going capital; on to million all to be discipline, because a think years where it is we limitation maintain disciplined. bit opportunity will add it gets really

to billion growing, billion years, demand. where $X.XX the is the $X meet evaluate set certainly that’s to how we And If the if our can gets average will goal. it over that can point we we X opportunity

Wesley Golladay

Thanks everyone. guys. Great

Operator

[Operator Instructions] Tsai line your with from the Jefferies. question. Our comes of next with proceed Linda Please question

Linda Tsai

around Hi, above it’s XX%, back that trending was I Are think getting that? Are your ratio retention historically above you occupancy? to and peak you now.

Alan Roth

Hey Linda, it’s Alan.

We are hovering that. in still

Unidentified Company Representative

retention rate. question. clarified Peak just She your

Lisa Palmer

Peak retention excuse me. rate.

Alan Roth

-- answer me go reverse -- let and still -- that. me We let are me let

there’s So we still we no, are are, occupancies runway. in back where of we peak believe terms think to

We’re making really good progress.

the the bit pipeline shop point Obviously, really there’s a basis We runway good lot success back there. had some leasing. of on pull again, a did said the we going. impact of the I sort we’re despite bankruptcies as alluded about, where to great XX that of us of we feel But

this. only not back historic hope setting to do where I we but we And eyes. get can we’re certainly That’s past highs, our get

Lisa Palmer

The purged kind I’d only thing retention really we’ve add this, the the about is, and on talked pandemic of weaker operators. some of

And emerge that, a we job great recovering occupancy. so we’ve as from done our of

We continue that. to do

I we ever the increase and today about operators, health have And of our We continue it. and think to the strength in feel we better past.

to the would surprise that to be to continues retention be not I if strong, does expect stay continue it So improve. there, rate will that it and me -- not

Linda Tsai

external you terms versus or having do And think how sets? in then to about next two, when out of the growth ratio opportunity organic you the best year of look the

Lisa Palmer

we that of invest development activity. leverage and flow; million and $XXX cash free into that our redevelopment Again, will

can to see is it And And And that that accretive we where our so earlier, it going external. earnings. the Nick always to opportunities. that’s acquisition evaluating you’re extent we will as be so fund said to

quality to neutral future -- least growth is them. neutral act itself at or opportunity the if our and going And to on accretive we’re rate, our

meetings. our same-property as presentation investor communicating via So and a I think NOI the job great team take of does you as can the that well our

our our that’s activity, same-property fundamental. is be NOI going base. investment and growth. the That’s top take to will on the enhance model, then of you that that that If And

Linda Tsai

you. Thank

Operator

question from comes And question. the next your with of the UBS. proceed with Michael Goldsmith Please line

Michael Goldsmith

help of Are relates kind Thanks your up the I between given have morning. And landlords Good pay and don’t looking types it ability of of My tenants TIs. stepped question landlord macro to a in question. to taking out. become for you new quarter? other capital available the the Is choice that for much for certain helping to tenants as their maybe just my TIs leasing environment, balance Thanks. tenants? greater thought

Alan Roth

for of Michael, that the the know the will when retailers you we that a that record we I appreciate invest great great But uptick track tremendous in sort have with. we’ve talk question. about we’ve Look, business quarter. experienced done

is it bit mentioned, a the more little and I really anchor in just As terms mix of shops. of

average you’ll term the of We -- the also weighted is length supplemental, noted longer. see in as

to net we’re the a how mid-to-high rents GAAP rents in XX%. where thinking last back at you the effective bring XX% of we’re X over quarter, as percent about this range would and quarters I So for we’re

in as we how forward. spend, are with line foresee similar we we it in managing go really that still capital really and it’s sticking our prudently So range

Michael Goldsmith

with a there It there. small can such movement but get XX you sequential pipeline artificial a occupancy great anchor, small And lower strong shop. quarter an just another follow-up to lately. cap basis historically, high Is have just big Clearly, like on than of related how seen as sounds we shop a been it’s step-up points.

it reach -- there a where is of and just just moment we are much where higher approaching may be move point a kind doesn’t we that it So that?

Alan Roth

previously, listening going. there on get cap highs when no we vacancy historically is to right now. that this are in the still with for as feel some direction say past we would and to I leasing said I pretty the those. even range. it’s call, of that place sure, percent direction or been going have shop the as that’s meet again, occupancy pipeline Michael, we’re all But our in going historic XX-ish we’re that obviously But our we’re agents those And the good about

Michael Goldsmith

you the much. very half. in Thank Good back luck

Alan Roth

Michael. Thanks,

Operator

are to Palmer at like floor I any no further Lisa back gentlemen, there this turn closing would time, for comments. to questions. and Ladies the over

Lisa Palmer

with I you. Have the to Thank and thank us all just through this want all. you of end weekend us this for great bearing morning joining earnings cycle. a

Operator

gentlemen, does that today’s and Ladies conference. conclude

at lines your may this time. a participation great You disconnect you have Thank for day. your and

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