Regency Centers (REG) 3 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Christy McElroy	executive
Lisa Palmer	executive
Alan Roth	executive
Nicholas Wibbenmeyer	executive
Michael Mas	executive
Michael Goldsmith	analyst
Eric Borden	analyst
Elizabeth Yang Doykan	analyst
Viktor Fediv	analyst
Ronald Kamdem	analyst
Samir Khanal	analyst
Craig Mailman	analyst
Ki Bin Kim	analyst
Linda Yu Tsai	analyst
Michael Mueller	analyst
Paulina Rojas Schmidt	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Regency Centers Corporation Third Quarter 2023 Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Christy McElroy, Senior Vice President of Capital Markets. Please go ahead, Christy.

Christy McElroy

Good morning, and welcome to Regency Centers' Third Quarter 2023 Earnings Conference Call.

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

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

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

Lisa Palmer

everyone. increase business. Tenant ability this of remains consistent our Christy, another supported is a good about strength the had in evident results, going this to operating minutes. from and you, strong And just demand lot further our continued rent despite of hear more and positive Alan and our elevated bankruptcies. in in and by few you're a morning, to We really leased healthy growth momentum occupancy quarter Thank

of we company. This of success before, have starts development competency within say volume in We you've that continue to year-to-date. believe drive in core program is as Development as national a our the made our project the the our as platform heard in-process significant well business. I our well. across reflected is we've progress leasing And me best pipeline as

remain annual $XXX development of of accretion to and ability $XXX million reach our and our targeted value proven pace earnings have to over redevelopment annually. we time and positioned meaningful well spend to million We create

merger the new and headway side, to into we since And were team the then, transaction members. our integrating Regency Urstadt platform welcoming made close our significant we in with Biddle assets mid-August. proud On our

the and our combination to the people reinforce has the only with our confidence time portfolio in companies. short Our of great served X

X detail. centers. will that acquired higher I'm haystack. a recently to more really Nick in also pretty these in able needles discuss return were the despite some We find we shopping total thin transaction proud market, But

environment. trends. So to continue to see macroeconomic just Yes, the we turning positive

it. We a the are encouraged real business by tenants in power sales by performance trends in in many, our time really solid the This the trade supporting deceleration not seeing is been of has areas. and consumer remain spending perhaps are today. expected to seeing And we We for the while structural our supply-demand centers. for traffic our our evident are that

borrowing very increased is create and new space. significantly supporting recent and being to existing higher little that ground-up continue Our rates as that profitable the to acknowledge interest value invest the space That value the we -- mile uncertainty. scarcity we retail do added to stores said, costs as channel thrive. and continue development, in And a continue while our tenants there overall, suburban are last areas trade do brick-and-mortar last through U.S., months in in distribution create of

future the First refinancing next to is our debt year's from maturities. earnings

impacts we wide of sheet and have value and centers, maintain buffer including offense which strong our in to that am With intentional creation we and strategy bottom continue line, attributes, our debt we composition. is this -- and one is economic our a liquidity cycles. we of tenants act and the that And of The quality our durability and also and portfolio pipeline changes be is attribute result customers. And is potential direct that create well flow. through balance areas about capital Regency certain economic of another one XXXX. maintaining today's support to and ladder demographics do thing occupancy as We allocation neighborhood our our our position, positioned. to believe to against a trade our strength grocery-anchored the to of I is intentional the in many our world, a still low impact remains community mitigants rates cash free flexibility And significant decision-making in schedule and uncertain an Our this, importantly, ability in and maturity in of to can to consistency see but an though, play opportunistic. self-fund leveraged that insulate expect

this XX% X% to enabled another again our us XXXX. Alan? what's this now and pandemic All it quarter of is up from We're the by raised maintain dividend through

Alan Roth

and Thank good you, Lisa, morning, everyone.

very locations. attributed We continue factoring space to operating by our environment robust. for XX impact of leased in remained rate XX results demonstrated by in in from centers when points even our Bath and the bankruptcy-related quarter retail to remaining primarily strong demand points the increased healthy basis as roughly a another third We Bed experience of move-outs, quarter, basis same-property

spreads XX.X%. a generate on also new cash of able more to activity pace retention Our at a over of XX-basis above-average record rate increase our X% to quarter, We resulting another solid on blended spread several again in including this leased a shop the last shop in quarters, were basis, leasing leasing. than near the re-leasing quarter high point record spreads including has in been rates, third XX%

and growth. the than deals. Leasing contributor drive to third X% our rent focus to Our was sustainable annual majority reflecting with our same-property quarter were on X% the progress shop of most our growth in in our consistently or base rent largest on above contractual strength ability straight-line steps keen steps NOI important same-property often rent continues and growth, XX%, leases remains our and to spreads in which higher more achieve annual our

incremental to continue We continued leasing than pipelines and rent, depth full, negotiation SNO our today, and replenish $XX supported open pipeline as base tenants remain more annual executed million of activity. representing our by

fitness, of range off-price, including and restaurants, a strength are in from grocers, all across our categories, seeing medical, of We services. pet tenant demand regions and

in the of XXXX one until Bed the the vacated in or had rates we've our been tenants, executed store most of which was And out new leases going is more former of list. dark, Based basis had to remainder We fact, of commence location, rejection on and have a In liquidation. absorption fastest anchor memory business Aid our sale the backfilling expect second leases, points our XX with of list on material the was recent spreads representing ABR. exceeding rent it relates as one won't activity rejected while at we that filing, of new have in half on spaces our space the to one initial average, the of projections. In active now and later, we the the recent already half negotiation. Bath bankruptcy above locations part regard XX XX% total, original of Rite

a greater are importantly, our part centers a We of the and through bankruptcies in shopping as our traffic exposure to locations business. our high-quality are this sales and the grow market higher our of merchants, are process that or bankruptcy positioned of normal centers. proceeding our to early And about it rents driving know well below rents. quality we productive of often good better tenant but at with really result feel We

are high-quality mentioned, We're where we front. success team to been Lisa our strengthened the into already the progressing new we excited having Regency leasing our on as welcome bring assets best-in-class integration successfully. in our with, further operating Northeast Lastly, the Biddle portfolio this With Urstadt tremendous these members process has and platform. Nick? transaction,

Nicholas Wibbenmeyer

Good activity, starts increasing Alan. year-to-date million. had you, for our Thank development morning, everyone. to productive $XXX another quarter We and redevelopment

the new addition the the Market is to million starts XXXX $XX existing common with the site box Marina QX improvements Staples our the areas. renovation California. Center, Farmers of of project Southern includes One extensive the of redevelopment in of the with Center in space replacement the intention redeveloping enhancements shop in Sprouts to of [indiscernible] Acquired in the Circle

on executing We tremendous have XX% continue to pipeline projects, X%. leased returns on in-process than blended and million activity of seen make more our over $XXX great currently these with progress

at substantially Leasing open the in Bridge example, spring. this schedule Green has Glenwood New and buildings on to our Old in ground-up momentum an strong. are coming complete project Jersey, been target ShopRite As

We Spa. Donuts, Evolve Shack, a now with Shake including and Duck Wawa, Baguette Med lineup, preleased are great XX% tenant Paris

Now turning to acquisitions.

urban California. XX%. This activity the file layout suburban that trade anchored of our in one value-add in resulting market asset opportunities It IRRs and X to grocery-anchored we higher our radius. is partnerships, source center to capital closed Chicago a Square in a is unique remain opportunity the an venture area grocer. by areas. the Plaza were we provides In XXX,XXX a premier acquisition neighborhood targeted regarded recent September, center of after trade transaction residents high-performing within Nohl located private in one centers Town with October, [indiscernible], While a able joint on we near within allocate with thin, County, the top a This IRR Old acquired in widely Orange X-mile in estimated of as area. In over near-term Chicago Vons-anchored exceed a will redevelopment, Jewel-Osco,

our new ahead, Demand centers to over more pipeline and remain building focused X among areas, their projects high-quality footprints and of teams the is next look to the grocers value relative and of strong start with on grow billion coupled see retailers creation we trade $X years. lack attractive within opportunity the As we our than development other looking redevelopment in supply.

discussed have equity of to to projects incremental business development growth on we and annually. execute. And only to capability and best to with million fund incremental capitalize a as our a free when we cash demand self-fund the We opportunity this before, developers the time raising times flow ability one have we the pipeline continue team north at compelling any the without $XXX in with the many of are see we've

assets of cost to in opportunities, we're seek significant are our bids teams about expanding also Marina on as ground-up of a and with us. Mike? the excited important of cognizant in projects of that we Plaza, grocers majority we of we ahead appropriate hand. and pre-leasing, type see as evaluate focused on with entitlements that assets, risk-adjusted these returns. and derisk through note, we meaningfully projects. It's new comfort are Nohl our we've investments higher Circle the this cost of projects partnering by and investment opportunities acquiring we development the sourcing of ensuring remain today's the Overall, the gives building are like we environment, and our made It capital, shovel We our and putting we're opportunities are redevelopment redeveloping, us especially ground we landowners redevelopment ahead for existing and for the

Michael Mas

third of start you, some on by share, on comments Thank highlights third impacted FFO per XXXX merger the good our the reported a morning, quarter reserve results, balance base transition touching guidance operating in everyone. grew core expenses few collections year, impact finish per our walk and changes NAREIT which of $X.XX from of quarter and provide balance and through by excluding termination for We same-property COVID with of and fees. was to NOI I'll this Nick, earnings third sheet the UBP $X.XX of period $X.XX our share. quarter, position. We by X.X%

Importantly, the combination steps, of contributing as base largest component rate continues be and online. NOI our basis quarter, occupancy to growth to embedded Alan XXX rent growth commenced mentioned, by in of the higher points redevelopments ramp, coming the driven

finish and I'll X Driven to the leasing high in new earnings another and tenant COVID reserve bottom by detail revised to about presentation. guidance, we've end of are year X continued collections same-property on retention, growth refer range termination our now year our X.X%, Turning quarter guiding through the excluding you Slides eliminated prior strong NOI and period fees. current the of to our at

range guidance from driven midpoint, We changes by our $X.XX have FFO to acquisition upward at the NOI, the transaction of raised the raised operating assumptions. our Urstadt to revision due primarily the transition per costs. only disposition forecasted NAREIT share Comparably, by expected $X.XX, our accretion and same-property merger we Biddle earnings share also the offsetting primarily impact to by core and per

reserve items, well summary nonrecurring XXXX on forward-looking as and continuing the details Slide of as presentation, start COVID Urstadt some for we and period earnings we provided impacts accretion noncash collections considerations plan related of As on our Biddle including merger all certain transition X to expenses.

on recognize as review today's to are you'll heading details consider While disclosure year. this won't we into pieces you helpful, the belabor next and we recommend trust find very we there many it highly call, moving I

with proceeds to balances the in in to reduce to want our given transparency future unsecured facility. million $XXX sized higher year. plans include environment credit XXXX, and refinance provide Additionally, to we and we interest to the as half potential are about impact, debt used an the of bond how maturities thinking $XXX offering rate on first our as much as financing These our range refinancing possible plans million next scheduled

intentional We are and strategy of strength access today times foundational proud in others, more and sheet, has our balance like limited for of an particularly which of company and been the to is pricing is important our more volatile. capital when

we with helps financing mentioned, our Lisa schedule a the immune higher impact combined rates as are Importantly, Regency of the to but leverage, mitigate overall impacts low maturity adverse for well-laddered not given any our the in sheets at REIT targeted debt-to-EBITDA. X feature to sector of the year. We our leverage of the strongest in range one with of X.Xx balance low remaining end

through $X.XX credit. our be $XXX growing generate flow, pipeline, expected to north access year, meaningful our self-funding have liquidity significant investments free cash we line to billion this continue We of and of million to

our we're as on your take foot confidently to questions. remain front forward. With we foundation, happy move this that, we Given

Operator

today Goldsmith from Our from coming UBS. Instructions] [Operator Michael first question is

Michael Goldsmith

talk any the headwind Urstadt next also year? and we the NAREIT moving year FFO the deal in year. It Biddle on of next this the then impact about just pieces quickly is Can a seems guidance like transaction,

number in core and earnings. it but quarter also tailwind to and next FFO earnings operating the operating this run for Is it's year, year FFO both that so the best isn't year, Mike? a maybe right, And positive next be fourth core should rate

Michael Mas

Michael. Page our encourage the X year. to that with you, I out Thank Yes. considerations look put we for would next supplement of guidance at everyone

FFO well be in level about a It at accretion. to question. incremental a actually share costs. versus those in components per it -- And of very be transition there I merger NAREIT positive would will the And perspective a then your you've contribution relates think outlined from But outlining the an would $X.XX worth our it as that 'XX pretty on the given item Slide. think in I be you're It's basically that we've core at complexity $X.XX line to helpful. X.X% 'XX.

on perspective to the From transition there, through -- have portion the rata those fair timing into basis anticipating in we will think of million year. large expenses are that then $X year, same million pro leaking trailing area, we'll the quarter we estimate year through a I fourth spread in XXXX. end just coming $X year. that $X this We million this the of And a of it's next of

Lisa Palmer

-- a about but transaction and bringing period it's reiterate mean a just what can help And just it a great time, X we just in my really I said in integration opportunity it's I a prepared companies, the properties that we're by mid-August in to take It's opportunity great really I think and of this this remarks. people been just of validated the has I -- good into Regency and and is short closed combination the excited it. that time. short

Michael Mas

Thank One you. piece, last Michael.

-- is but revenues revenues I purchase XXXX it's the in expenses. want that confirm impacts just accounting, there to confirm, to no us our the offsetting have as impact the noncash just in about Just -- noncash the the many asked noncash are from materials,

Michael Goldsmith

that's escalators. escalators cycle NOI of exposure higher follow-up it escalator quickly as through the my of seems got like get that you're can on older lifts on X% in have same-property tenants quickly some small algorithm, -- to leases, is you escalators, kind growth plus. shop, lease It and your the which algorithm? may And earnings so I on how to it the overall lower same-property slowly you've elevated most of guess lease an NOI can the how the getting environment, our though seems these

Alan Roth

a is And quite that is of Alan. Yes, had higher approximately has our for XX% and time. focus you X% our you XX% keen some have did been is but What Michael, don't or would think and as I number, I deals noted, deal said say this of escalators. the escalators shop

of opportunity are So opportunity, this it. have the to given is the when a rent step constantly embedded implementing team we

certainly, And a focus. keen so

Operator

Sanabria coming Markets. Capital question BMO Juan Next is from from

Eric Borden

maybe just potential about the Eric potential And starting could the asset. the Town Juan. and then I within It's back on and story want talk maybe opportunity into talk Illinois presence to increase indication -- for just Maybe set Midwest this Squares, a you your to other maybe markets? Old with is about

Nicholas Wibbenmeyer

the Eric, this is Nick. I question. appreciate

Old high-quality So year question, have near been Town layout your tracked with over and perform some And with so and the out. per time really asset in seen it starting year that urban off a asset it's yes, a decade environment to we've in we've for suburban quite have grocer. to a just an targeting a probably for ability

we once we And that liquidate participate rotation did process. nearly partners of and so to control our opportunity institutional flip in opportunity one have been the was they well. ultimately an the with to have our we've they and partners were to were end about got their did of it. And that one owner of exercise is years, the that was as have estate life an opportunity stake understanding, to excited they real given XX% were long-standing the period, institutional to It our XX for whole an it, side, by take the excited through an it bid on owned so looking

And get so were that locked to happy and up this we one close quarter.

Midwest, major offices. markets the know, of on that as focused in all question your have of we terms In you we're our

analogy deal So is of those this kind And of the drips there. in and looking it out water like normal flow, we heard there's needles I for I haystack. the think the are I week, of instead

ones we that accretive do to said, and we and of And going as to major business the earnings, we're quality water in. drips of to -- are and/or evaluating our act of accretive each equally on. always the growth, markets we've and so that, the all are in

the We act have to ability on.

whether makes so be focused Midwest in investing we're it it on the our or markets, where And the coastal sense. capital

Eric Borden

maybe snow related through Of the then the is 'XX to pipeline. how should on much helpful. coming that $XX That's And we the Okay. and one online think about cadence that Bed Bath? million, how And 'XX?

Michael Mas

$X.X million the about we will online pipeline UBP the Eric, perspective, cadence through Interestingly, as quarter. of $XX of portfolio in number And well SNO next did that Bath. of add that to add million pipeline Bed that I'll a $X of million end to from XX% is come this. year.

Operator

question Next Doykan of from from coming today is Bank America. Lizzy

Elizabeth Yang Doykan

I to hear And we closed cap Plaza. deal and I you up on the the Chicago this rates rate follow story more the the indication quality is an redevelopment for different, if see on could for confirm if where then is that just today? cap quite but trending asset on as grocery-anchored centers maybe to wanted you Nohl back the know would separately, on that pricing well. love that of given opportunity, for

Lisa Palmer

pass Plaza. analogy. I'll then for this Nick's and together. part I were week, didn't love Nick we to I first and it loved I the take actually -- I'll that Nohl hear

I'm and where there heard But are deal he not of it. flow. certain really drips not So water

on of needle the prepared amount and me say in remarks, thin. rate through redevelopments. have excess difficult that, to us in be still I this, a free generate it cash the with of said we you've and to is extent a say where really think many seeing to and did it's Plaza. asset cap there's and you're what Nohl of ability transaction heard we Chicago my is flow, that's said our But have cash important as have And that Mike really that go a -- market it we prioritized as did thing, a is times, to to haystack. The most really do. it we well the the And development And flow So have and Chicago allocated we what cap that read-through rates significant cash our opportunistic. not the flow -- we that's to we just more

it pass to for I'll So Nohl. Nick

Nicholas Wibbenmeyer

great question. for Yes, different Thank very regarding you, Old And Lisa. the in thanks, Town. profiles Lizzy, question Nohl,

point had owned it take and where by And and tick got decades, the wanted so move it owned divest, Nohl ultimately a tick to that for to elsewhere. money their was the

it of years. owned situation, most And a was not so invested given a those capital tick lot by over tick as

but in. so love And our love a of We it reinvestment, opportunity for to a needs California use opportunity that's for definitely We the in Southern us. come platform and the great estate. real an us fundamentals it

standard And see cap is so the you acquisition. the a we you although rate do -- when math there lower than

Given and make, near do the investment the of do be redevelopment the IRR expect expect we north to we we to XX%. term to expect

to excited a our using the redevelopment really we're about asset long operating that expertise for so and to And come. up put time portfolio shine into

Elizabeth Yang Doykan

as moderating about the from composition of That's what's down effective page further to Great. looking And that second, realistic new shop, composition anchor may leased in trended your at you closer small be then reached think with signed of it's shop much a near guess, record leases small a supplement, is rents more on a just to small quarter-to-quarter, more push looks And fair leases how helpful. the on for demand line first, in can new the given signed. net rate, high? shop from leases? it I like of what second, function signing

Alan Roth

you the Thank for Lizzy, Alan. follow-up question. is this

any And prior said you a bit yes, it, lumpy anchor not of noise there So know. market in indicative is than can quarter. no, QX it quarter-over-quarter, whatsoever. transactions were be had more It you in as we

that. drove And what so certainly that is

was meant leased were the dead I shop broken. to rate, Regarding but serious company be conversation are when we a laughing amongst having records

And in portfolio have, we've so that believe team the I we got. really the

our do the are drive to we right so the side, that. being mark certainly focused although able now, shop to And continue best on at to XX%

what watch team can So see to do. and the excited

Lisa Palmer

And peers, have, all both physical the is And tailwinds on in say, are our is the we strong. heard the they're really structural as shoppers tailwinds. retailers heard us really still of limited and environment, post-pandemic, renewed the The The the today there. healthy reiterated appreciation customers, from you've we themselves sector from and still presence. we've those supply demand you've our the new work, and benefiting and just hybrid the

broken. So record there I is be do believe to that this

Operator

question is Greg from from coming Scotiabank. Next McGinniss

Viktor Fediv

This is Fediv McGinnis. for Viktor Greg on Ms.

And that assume started into expansion UBP had you tenants, you given and with already scale acquired and newly so current some portfolio now properties. regarding relationship your of I integration conversations

a So say, would what the have the call occupancy the translates months? of how UBP's within impact? it XX do impact be, let's vision you on it, combined X or next, occupancy Regency And portfolio into

Michael Mas

the legacy take to can that very the Regency This be portfolio. And happy to slowly in thesis or with -- saw the comments that time, of within good as the an The on I merger this basis point think we're some set That lease at with -- one, absorbing a to a time next provide that the it team announcement. that -- XXX we and and points when areas to X merger that XXX isn't in And exist years high-quality Lisa's areas. on our from as the your the Alan basis the about -- last Alan are opportunity several impact over XX I'm efforts the in us in points what to are their invested color closing look existence. of lease ongoing shopping appreciate going you've was. what percent it see exist. our very portfolios will particular. differential. a of the should excited on We gap. portfolio trade very high-quality portfolio to really gotten for the overnight the but off trade of is come the should we've portfolio reason integration the on don't the Regency momentum within take for pretty really here or that seen an do the of We years think integration themselves inherent similar a earlier. And leasing We between any they same assets minus is to company's eyes start. within centers plus exercise and prospects. same gap of differential the But that We

Alan Roth

Yes.

it I articulated Mike think well. quite

to a of is shopping how ground we Our create a recently in in lease unlocked. And pad be intentional we're our the thinking some leasing. approach Dunkin also can very a term, the parking redevelopments centers. where we're out #X lots about goal the executed But going one near of to future

solved. of team excited Bridal Again, there were we've the was interesting in there. former bankruptcy certainly and medium in executed of that Noble, phenomenal operator that team to in super that around like on. the brought & So and and vacant some in focused about. already craft had to gotten local that opportunities that the a the Barnes multi-store term, has large is redevelopment But to replace space. opportunities. But also Elicit a Brewing merger think We we closing evaluate is the that, some concept are the beer community the had right long I spaces sort opportunity we there's David's

I And but long been excited as team mentioned, really is Lisa side. will And shop term about focused hyper really well. leasing on think, platform, dividends people pay have the so the great as most that the integrated the am I

Viktor Fediv

And follow-up. a probably quick as

You already within that mentioned opportunities portfolio. that attractive redevelopment probably there some are

So would interest you given that you where kind are if can developers for you acquisitions be rates capital target like what now, redevelopments ex and deploy? an have your of mentioned, in IRR

Lisa Palmer

said going capital cycles. We record free us, For extent is rate capital be increased. create that future those the accretive to records, our and of to we But least comes to to offense for going can. already in, of capital. development platform and and to to accretive it believe our be cost that, do value continue to going again, that Nick opportunistic, again, our in that proven through going of acknowledged, that -- has accretive from that sound broken can competitive it. And once, the growth a to a the is yes, earnings, we best like I we're in ability are flow to record. business, that remember going prepared And is remarks, where at to and only execute I and shopping we're we you reiterate would we're and advantage our when have thing broken but cost centers and this the we quality, invest our our always play and the that Because cash is my obviously, neutral something acknowledged I'm do that to

Operator

coming Morgan Stanley. Kamdem from is question Next Ron from

Ronald Kamdem

a ones. of Just quick couple

million midpoint the the presentation, the Just see staying front, to you on I in $XXX but in million have the months. next of at XX the sort $XX XX development another

on you a on there? pre-leased? Just sooner start interest Is sort what about million, your those that can those to rather would $XX maybe thinking? than are talk take later And it of there

Nicholas Wibbenmeyer

Nick. Ron. the This Appreciate question, is

So right. absolutely you're

are as about pipeline. we've has vocal to into and development and hyper-focused, lean continuing been it Lisa our We said, redevelopment

remarks, are in you what we as ground. the of sort a and the what in so And laid put derisking before teams in very active I shovel can prepared possibly is out which doing laid my exactly as out we these much

is there there. out And demand great so tenant

So to of these released them get deals some leases appropriately. finalizing we're just

last them deals then around we We are finalizing. finalizing we're our of are we're of costs last And cost. our have legs some very entitlements thoughtful of arms -- that and these of making sure some

is boxes our tool of tools opportunities the conditions. and ground, And we're use so market about seeing in advantage these a to the are put all shovel when to what those belt continued we our in our check pipeline once we of in excited on we

and to quarter to talk you great opportunities do in so some out. about And expect continue quarter

Ronald Kamdem

I super, And is Great. just X last considerations the my just -- XXXX are are just If super ask just more. on then could helpful. one

this reason is So that think on of? there different the last any trending how doesn't anything opening just And it should And we is anything or then mindful Is bad given comments, on year? it debt seem should we just 'XX. costs. there's like that in should be 'XX debt, the be maturities is in interest one one

Michael Mas

The did it. the comments made appreciate you job you and that glad I a appreciate first, really, with Ron, disclosure. the on team phenomenal

points. accustomed suite and to want in to -- we when the to changed you're be hasn't little loss, right? a year, includes XX bad balance perspective, give on bankruptcies. To the your full uncollectible loss guidance guide a to run sure which speak to with expense package from perspective. those outlook come to with of a we'll -- Also, there's color. or in for say put associated this some do together basis me full The about bad more historical point we've items income, a out Let XX which question credit year we lost our as debt credit for debt, So full is I rate full outlook when bit from impact lease perspective, our the basis ULI affirmed to, from rents or 'XX both the February. XX our Happy X-line of

the late a very were of call, run in than largely they the just on to unusually that do 'XX, all had cash -- that and better we we a collection year, about will We high historical we've that first had basis paying due -- rate some where rate. of to quarter that tenancy, from billings quarter, this talked lower-than-average that's translating in where an

when and actually kind think the back year, to about the -- second averages. I of So half historical of trending it's

into $XXX XX area kind year remarks, of start X.XX% to points. I in million is at that, matures again. of refinance but through the -- plans looking June. my financing a that what mentioned bond let of include to would million that's activity. that today. me Recall $XXX our Roughly I looking just to We them million also interest out you rate our I planned into go next happy $XXX to need eyesight historical In in averages try interest did expense. So going lay our basis probably 'XX of am

We There's some that are mortgages year. maturing larger $XX roughly next one have mortgage that's million.

at So have the transaction our we which that also the transaction just needs that's see our plan. in we'll fold that of moment, is $XXX running the add is running we million we we to in And to the to $XXX and UBP then with you expenses will million give from into merger a sense recall activity. All favor. that all, financing And where where capital minus, where how treasury this from go that spreads mid-Xs, base think expand timing really be rates on feel in where or will our we rates But good have and forward. here matter to of the end it ability point just our a from we're our the our plus about again, selection and the are, markets, depending efficiently execute indicative spreads and probably in contract really or and of up.

Operator

from today ISI. Evercore Khanal from question next Our coming Samir is

Samir Khanal

side. So question anchor my more on is the

guess, of bumps. rents from today? those even lot opportunity lot or higher opportunity with with still demand a -- I going is that's to upon about is But anchors conversations supply, limited mark-to-market there anchors of rent are sort But here happening talked higher talked overnight. strong. maybe not how an your even a You push renewals Clearly, a

Alan Roth

Samir, leases the years. without next have Where The over you Alan. that question. stand for do is the we expire north XX today, options answer is anchor this yes. we X Thank of

making And rent the need do aware hyper that we so to that for is can those tenancy, team we sure appropriate stay where getting certainly will and certainly, the of market for that. upgrade those we're

remains So there that opportunity. Demand is strong.

think lack some faster, we've those Hardware deals a I signed. the some look largely of of said as our to retailers, by than driven and in was as to where already we Restoration few, executed speed Bath I the remarks, a resolutions, with outlet, that it's we getting great supply. And Burlington, REI, at name just anticipated, frankly, Bed my that's

advantage. scenario our a is demand supply there so working is the right pool now And with deep certainly pretty and to

Samir Khanal

start That's think market a and even I the start today. saying, get sort when to I is pay right? usually to are mean, anchors, they about ready rents, industry to I'm you point about Right. higher to my pay they are that -- So than rents come where question. where usually they up lower think of

So to guess starting you're I see...

Alan Roth

The we're mark-to-market Yes, that is just back yes, take the using an I would deals we've real-time as yes. you signed. the I exceeding XX% on answer again example, -- Bed-bath Samir.

definitively to here higher that spaces today, what's those would think perspective, that that in are rent from place. a market we so than I to of able And much tell sit you, yes, drive as we

Samir Khanal

the guess I I think XX% about, the CapEx to I spreads, about get how you on the involvement mean, -- talked And it. guess? Got we that rent should XX%, this

Alan Roth

the to shop We're leasing front, much enhanced I So capitals seeing on of stayed in way you pretty tend not Samir, anchor that capital be leasing capital do neutral. the would say to have there. general find in relative I will the the say the a keen that is I of embedded as we obviously that spreads little you expensive. experienced. right noted, steps a But is think we're And GAAP having bit rent balance the now. as focus more rent XX% being success

Operator

from from Next today question Mailman Craig Citi. coming is

Craig Mailman

of in back asset to guys have want something that's XX% bought the year. of helpful, cap more core the a the lower go requirements I redevelopment a asset market. acknowledging free your flow there's or XX% good that the with to see trying where quarter. this? upside to IRR opportunity rate offer amount a just like for appetite your that knowing versus rates I'm But of you trended into And It's a going a transaction going initial fact you north cash return on to kind on the higher of

of the your in it? of about So all pot how capital cost and and of about average you're kind just thinking that thinking putting weighted kind

Lisa Palmer

before. like dictate and and core inform extent get we returns something And to of redevelopment. to cost is the our to our boxes, we appropriately the Yes. if all capital are. it, quality rate, to our it. what basis then can risk our future and our to capital return is total reward, return they on cost versus will, ensure ground-up extent if going look just the you we paid Plaza, and And accretive It is an like I time what capital take that any that We look that And our -- checks it total growth the can invest and to basically of development yes, we does at looking do I'm our reiterate And said And accretive do at required being earnings. capital going our look it to IRRs. at a to accretive we pipelines. Nohl invest development, to at we're that we're are and for but accretive those to of

Craig Mailman

do it have where by be forward need mean deal you deal? of to than returns me? threshold fueled lower is guys to kind unlevered to investment move a for the like I Or

Lisa Palmer

that's -- us. Again, for capital if of works exceeds for especially that it our cost and acquisition, core our

Craig Mailman

portfolio? kind think some lack or that the Are activity kind how your amplifying through across going too relative quickly about demand of availability Do of on you just with Just comfortable good of expanding the Okay. just viewpoint good them before. separately things of really normal of is going talking around kind leasing, cycle. And in of And you from the thoughts the maybe the curious the is just board. being I'm sort plans are to feeling then on retailers? cycles feel expansion everyone your of versus

Lisa Palmer

that slow some stores demand. real the speaking, future and really the we in continue borrowing tenants. to what now, estate. tenants extent for high-quality slowdown we grinding it expansion tell can from a higher higher at and will I higher-level real Could plans? estate of it's crystal I'm retailers. there capital I I'll But I ball. have costs our not costs expansion new am end. even doesn't mean, their I certain seen and you, mean higher does, to everyone, take like to for and Possibly. and includes capture it borrowing that it of a and best Alan perspective cost don't we it right generally And plans the halt up are the a a would not color if confident of that Slowing to own holds. have

Alan Roth

refer our of in intensely intentional I to would good the these place connecting to whether Yes, X proactively making merchandising, and approach bad we're times always community, an only pillars that. add taking is, assets. and Craig, we always and managing to thing the times, or and

enhancement experience, And sign so overall the just We to leases, diving we assets. are leases synergistic right? sign creditworthiness, into the don't to operating

or mindset, bad. with in times works it So good that I think

Craig Mailman

it of, standpoint for you quickly kind like feel still sizing anyone the the from up do the that's coming was given opportunity I macro? feel appropriately Or too there's on of expanding guess term? in their going are I people what's long does Okay.

Alan Roth

retailers through of right talk Let business the me some we're that doing kind of now.

I As They're with TJX, a of lot we're off-price doing Below, about think fantastic. them. business Five Burlington,

you First great and Mendocino QSRs, performance. they're I relatively deliberate companies, public phenomenal. Farms, operators with as Coffee, and well strong new in very Cava If think approach And think about Watch their Philz sales

lot the business there, a Stretch lean at that [ you franchise the into and the Scenthound operators great success they're doing we're with good Zones really world. Again, of level. in concepts, putting or we're seeing of of If ] the likes

doing making those do, Craig, the I And right And with, volumes they a I partnering franchise and all sit I we can business our when look as making the it is and at where just the with are we're retailers is today, look I at can of decisions think decisions. their here look the you, So at productivity team of sort is right concept. the tell they're think operators. in operators

Operator

from from Bin Securities. today next Kim Truist question is Ki Your coming

Ki Bin Kim

trends grocers. even the retailers highlighted potential have certain So weakness consumer

your was how and you you wondering if from trends your dice point, just from I want consumers discernible slice that? and vantage any to saw So

Lisa Palmer

completely grocers, but have do and strong sales pretty date. We board. immune believe across experiencing have you comp seen not from sector not while anything the to more hear the I grocers And again, resistant, been our the is that

instead growing so growing And of at still at they're now growing. They're X%, X%.

seeing yet. And addition to operate. in and we given not really value to impacts are the well in the convenience we positioned economic we feel areas which So the adverse the again, that necessity, the trade resistant expect, potential type, property

Ki Bin Kim

a Mike... for one Okay. quick And

Lisa Palmer

ahead. -- to be Sorry, Tend go

Ki Bin Kim

week? would this next mentioned you the year week's the curious, that raise is bond on like I was For you in treasury might Mike, or based mid-XXs. that be that last

Lisa Palmer

Based treasury.... on yesterday's

Michael Mas

XXX. are indicative spreads Our

and minus XXX rapidly. or pretty where So on around the treasury plus moving been XXX, is it's

better, X we no looking I actively There's have declare opportunity for to our a see maybe Bin, a markets. of execution. years. overall We We're the it's So hesitant we really Regency good here. very the good acutely only when execute have XX% we're to maturing and But little can bit -- victory over debt to monitoring Ki next going be patient. a

rate we this made to transaction we're the the carry be all well from there. No as a it execution going to is over losing act given and window environment, debt as decade the did work to it's comments over in higher even So matures. positioned can we how we upfront, the we year's much when and when one's activity, we're sleep here when -- last

Operator

is question from from coming Jefferies. Next Linda Tsai

Linda Yu Tsai

retention but if running you're peak I don't retention? ratios disclose at wondering know just exceeded normally peak even you or have

Michael Mas

rates. above basically average slightly retention at We're

I we're that's a tick top the of think average And up is. a XX% in that Is right? what historical little area. bit on of our

Linda Yu Tsai

Page and noncash year. accounting each how terms and XXXX In next outlined fully impacts flow of X, those revenues you impact, that then the noncash other offsetting beyond, through? And purchase on expenses would in

Michael Mas

-- it's -- Linda. fair is to going out. of The to continue would average It's of mark-to-market average that life I weighted debt mark-to-market, significantly say 'XX, It's each lease to balance Interesting. the it's to interesting. weighted other the shorter for than going life

in point off the mark the to a prior that the it's time when but years. will debt is in there So burn X leases next not

Operator

Mueller Next from question Mike is JPMorgan. coming from

Michael Mueller

Two questions.

thought I in question. you the smaller had leased. XX.X% compared into then but know transaction? shops, small heading buildings basis? for to an is where leasing second from And long haven't the of going is the the curious, what the I'm efficiency First, that standpoint that centers commenced a how on Urstadt a you

Alan Roth

on second this Alan. is question. the Mike, start I'll

I comment great think of to lot integration portfolio, back of So people. but a it's just of the working of the Lisa's the is lot integration well. a that And not of

activity referencing. smaller that's felt And on So we've the of the process. intimate of and had you're about their knowledge going integration some the people great assets that the really board, across just

at I differentiation hearing not across the the of what totality of so or based you're And tide the asset general, think successes it's on with in seeing rising we're any just portfolio. all, challenges the

Michael Mas

of XX.X% in the quarter. department, commenced stats rate end the shop on just the from the at And

Operator

Green [Operator from Paulina is Instructions] Street. Our Rojas from coming next question

Paulina Rojas Schmidt

], come a minus muted -- highlighted knowledge, size, strategy but especially to has And you confirming pharmacies have to industry closures closures tenant tenant a the as yours a field As But space? for well, given exposure for And industry you material far. looking Lisa ] impacted what while. the forward are haven't whole? [ group, best been shrinking significant to a their you CVS. your [ of from been Aid a Mike, back Rite thus my And by for -- what is categories as the

Lisa Palmer

didn't know Alan speaking, the on me of finish at -- this I were and that through them them, But prior had outparcels and especially line replace you we moved out call we just live and of there's lot have to many we of all pharmacy replace drug moved some start, But then when exposure, of line, question. about and the up I'll let rents. with was heard to in with probably generally better them it were part are this to able I'll of they that this. and with latter meetings, Regency we able I say stores addressing you and a and and when think were in that out

tend location longer those are tend to address opportunity anchor of rents the when earlier, move we But even we of And to and to the to the tenants. estate in of shopping it's we some the even highest some we of the again, while estate, centers. And for good And us when as locations so when opportunity will quality country questions to have retailers stores. and rents locations best -- the with one or on shopping have an our -- re-lease. that we to them, do market-to-market. centers, gives believe really lesser do, fewer junior mostly I closed to access they're able in estate have real anchor our access and will it that replace it's that real us And the Outparcels, given the get the even within not Now real -- leases. quality

Alan Roth

I to Paulina, add that. would And Yes.

of, So our my Coast we're hat just speak the on naturally the not back. was think and And the rejection aware one We the expires and team, on to I the going team one and as we're out you to how But in to we real these sitting list tip business estate have May. deal one have was that to quality more spaces mentioned, that for I come of back of locations. West waiting thinks do list.

We We love at But those rent haven't or heard have yet Aid a low whether wants Rite a to single-digit lease it reject not. rents. we triple-digit executed already spread.

happens be store. hardware with And so that to a

these Lisa that good multi-tenant ways do where them them end some really can deals. some split different and I we But And or various we would there's locations. think go. So as grocers, caps prominent in mentioned, are sense go willing think retailers improvement, few may the as we are it's get have cosmetics, to make home so to that about a if there, we you hardware, access could

drive-throughs. have them of Some

there's different tools itself. unit So in lot the playbook a of the on based

Paulina Rojas Schmidt

the margin? strips for bid answer Very market higher has that have market, has the But detailed real on the I is put closed. to rates, you to think given reacted there How I'm transactions qualitatively. numerical at together trying provide you said the So no since changed a rates? to know don't transaction quarter of we have interest the few answer. And then do has last these rise How And changed? flow. dynamic deal the the want

Lisa Palmer

It's interest know better there's spread total that clarity there we continue there's the borrowing long a which go beginning clear the rates, the rates which to that all. just from market quarter. since that we interest our there's and of have still you have market then more volatility and is find that really return the and I really and proud it's of that changed public think, haystack much changed, dynamic the because is disconnect the needles all Yes. transcripts, reread to were year, that the a bid-ask able reduce. would starting if between at don't back think a changed as the And pricing to There's costs, with were I it's I'm that I still feel going -- in -- this why It's we quarter. was has at stabilization of last -- I as we drip. in were pricing. don't to private thought to think

Operator

reached floor any back question-and-answer session. to Thank closing or the you. comments. like We turn Lisa I'd to end of our for further the over

Lisa Palmer

however weekend, you. Thank or Thanks Thank a all you enjoy your appreciate and Kevin, your you to that. all. good of use it. interest. extra for intend hour Have sleep

Operator

That you. conclude Thank does teleconference. today's

You may and this disconnect a thank We your today. your line participation for time, you day. at have wonderful

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.