Regency Centers (REG) 9 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Christy McElroy	executive
Lisa Palmer	executive
Alan Roth	executive
Nicholas Wibbenmeyer	executive
Michael Mas	executive
Michael Goldsmith	analyst
Dori Kesten	analyst
Jeffrey Spector	analyst
Craig Mailman	analyst
Samir Khanal	analyst
Greg McGinniss	analyst
Ronald Kamdem	analyst
Juan Sanabria	analyst
Anthony Powell	analyst
Ki Bin Kim	analyst
Linda Yu Tsai	analyst
Michael Mueller	analyst

Call transcript

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Operator

Greetings, and welcome to the Regency Centers Corporation's Fourth Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Christy McElroy, Senior Vice President, Capital Markets. Thank you, Christy.

You may begin.

Christy McElroy

to Fourth welcome Conference XXXX and Call. morning, Regency Quarter Centers' Earnings Good

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

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

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

Lisa Palmer

this quarter proud able an year morning, success what of Good for a our pipeline. everyone. then our Regency. shop talented strength and of in most were strong in remains finishing shopping our centers QX, of off so demand leasing robust Christine. exceptional accomplish, the hard result record we occupancy you, the the and team. Tenant direct and I'm to across We had is work and evident of Thank dedicated our another

we than of the macroeconomic retail ahead, a centers. sector-leading through in projects for more look to also continuation hat This healthy current continues driving build, projects. of $XXX we neighborhood supports of is development projects billion million track $X the our over has started for program. all backdrop that on on X next to new are pipeline value foundation environment success trends the years. My involved team as more As off With served demand believe team. of our start In we or XXXX, creating future great the and community favorable shopping positive a we to

believe before, You heard I in development platform we me have this the best say sector. have

ability levered flow highlighted The and complete. and ability unique side, Regency. It the in the such create closing Urstadt advantages cash to for to Regency of also Kudos the by seamless all for acquisition a transactional essentially now integration affecting involved was smooth and into transition. team competitive experienced self-fund is Biddle free August. value this Our platform, the with big to through a are on year

issuance ability Our successfully to and enabled to on also transactions developments of January. $XXX to stability execute in testament is our balance turn, us which, through line and million a grow in revolving sheet, the our bond credit recast strength and

our reputation corporate in Regency also Companies housing estate the States sixth real efforts grateful portfolio, of relationships. call this America's reflective responsibility, of you our ranked strength and practices. is Regency's in capital I'm when and also overall the recent our category. are Responsible low-cost list, Newsweek's access Most recognized, to of team of such that in track and I'm most of quality the the record ability United as lending and best-in-class where the first very Our of know our proud on Most

company ranking of years company the real its been and existence, has all estate Our this highest included is X for any in list ever has this achieved.

our For of the we benefit of our our in to to corporate adhering are business. areas all principles responsibility all and shareholders stakeholders, committed

it do inflation strength want demand believe is areas. over months to XX I the the our turning consumer job Alan, reiterate Before we driving resiliency Consistent growth or to of trade signs over leasing and that so no showing in past in moderating abating. are

positive a to ahead. Alan? continue also retail suburban in markets, tailwinds experience favoring strong We retail brick-and-mortar supporting environment

Alan Roth

and everyone. leasing XXXX. results We morning, and great Lisa, operating had good another quarter a capping you, active Thank momentum, very with off

environment healthy into taking full retail that continued has advantage XXXX. are of teams Our the

higher, categories redevelopment from activity commencing nearly projects online. In fourth personal executed health we feet grocers, shop the including COVID evident of most occupancy quarter, was rent the significant rents bringing X.X% NOI of termination square driver, driving and and million and collections growth of wellness, success X.X period in off-price fees, Our services. primarily leases with function growth a and being excluding same-property reserve base in XXXX with restaurants,

rent Our another leases XX% leasing pipelines while X in new of negotiation. contractual spread were achieved QX, in new leases, on spreads the rent on ability square leasing. LOI in CapEx lease feet cash potential be cash of our XX% continue judicious rent representing rent million spend. being demonstrating We our spreads XXXX also obtain a steps on including to since to Full and basis robust, our level highest XXXX. GAAP was above year XX% and in blended effective quarter, annual spreads of net XX%

team as of basis to This leasing quarter. basis our records for leases percent in in shop of the year-over-year, of decade. reflects of lease the the in drove lease are deals said impressive $XX executed of XX.X% broken, shop million the highest success nearly a space an than to XX XXX-basis-point rent quarter. base commence. I've was our X.X to in feet to leased, points spread shop ending leasing increase and another same-property at volume pipeline in Our year now QX, XX.X% a record up That than square past our XXX pre-lease further that more new another reflective yet result the of shop our more rate rate points and made yet widened be high fourth represents in million

lease anchor the the over and impact quarter up also Our basis higher bankruptcy-related year rate the points from closures. XXXX, ended XX despite in ticked

Our recapture made a long-awaited great with for remerchandising acted teams at some and as higher progress space have this our in space to And has projects. catalyst rents. redevelopment exceptional ability retailers cases, the

with take will look times time towards the of it re-tenanting benefit to on associated to redevelopment I re-leasing and activity XX- As XXXX, this lead downtime the see anchor projects. average XX-month given some

that the until commence re-leased quarter the will not year. spaces we've of of For example, some rent fourth Bed this Bath

a meaningful even we to commenced these So basis have will of ended XXXX we've that in the impact means occupancy trajectory. leasing That lower feel progress, our substantial done date with we XX our And XXXX. said, work commencement our anchor as by visibility points. vacancies anchor the into result, rate

in another and the great last retail centers. Nick? enabling work tremendous our shopping over expect We us success for rate level This in space and team to am move XXXX. In our create our excited into will continues environment current I I'm year, long-term commencement the the demand activity our closing, of of anchor XXXX and lease ultimately centers as value to high-quality is late unabated. as higher portfolio in meaningful drive really year of of XXXX leasing even at for an elevated proud

Nicholas Wibbenmeyer

Alan. you, Thank everyone. morning, Good

over we in We Regency pipeline ramping in and This just Aventura $XX will million in sourcing Aventura starts experience to goals. Among year in as investment million new the is excited ended Florida, achieve the of With Atlanta. additional project, redevelopment our extensive our with bring continue our X Shopping active demonstrates progress level in starts. and incredible $XXX project XXXX fourth we our of projects of estate to Center. pieces to and are Cambridge in Square real bring in This best space we of strong well of shop In has began projects With adjacent our one the quarter around starts commercial center. highest and program, for the fourth to teams the our in South development additional the to to a team existing QX, momentum Square, as made redevelopment quarter. nearly improvements in were in this Biscayne. the breaking $XX quarter, as decades also is our up public single work the new redevelopment million

of As more and million, than of on year-end, returns $XXX and with grown our to overall, in-process remains has X%. pipeline blending on expected budget execution our time

exciting new about catalyst and accretive are XX% pre-leased from our to of Alan's reflecting a in-process high-quality reinvigorate unlock reiterate I'll it team can continued anchor strong and projects often on work redevelopment opportunities recapture bring as to the a tremendous retailers. Our demand comments center. be merchandising average,

including at Walker in-process Sprouts examples within and REI today, several those of at landing, have Baptist Manor Health our We pipeline Landing. center, Circle and Buckhead Marina redevelopment at Publix Center

Moving to X were remains transaction to the teams transactions our acquisitions. close light, still compelling Private able quarter. but fourth activity in

square and in the The to foot shopping Nohl as we As pipeline reminder, Orange within national County, mix and October. area. tenants on dining is merchandising in in premier redevelopment of acquired a This trade And the fully disclosed project. a the center acquisition this destination Plaza strong Shops XXX,XXX neighborhood in closed previously, December, bought as we Massachusetts. Longmeadow center serves leased of its And California we as future

years. to our building team billion achieving and over more beyond, further of $X our redevelopment and than XXXX is projects next ahead X starting our creation on Looking development goal value and pipeline focused the of

to and best-in-class While Demand looking trade executing be in finding high-quality it strong retailers our centers continue and to is as and grow service our as well grocers, within be attractive remain areas. difficult pencil, suited to about among to providers we other continues to uniquely developments get optimistic footprints opportunities. their and

in our cash success said, sheet the and we capability the has projects fund enjoyed balance team continue give and the best As development Lisa and business, to flow XXXX. Mike? us just Regency in the free

Michael Mas

from guidance NAREIT of in walk operating rate the growth COVID core year recent by through with XXXX. Base FFO balance to excluding contributor Nick, you, same-property significant discussing NOI core XXX operating and earnings our and good share impact was of period $X.XX to results, gains per points. range finish share and XXXX highlights Year-over-year largest share our growth nearly details per X% activity. We I'll basis remained occupancy growth the related earnings Thank X.X%. $X.XX in following by driven at in our everyone. part full start per reported timing sheet morning, some of in reserve paying rent rent collection, large NOI of initial

initial our presentation. helpful I'll Slides through X you earnings guidance our refer in to on first for to detail the XXXX. Turning X

X%. in than COVID the reserve more last our be same rent growth of guidance of rent continue additional X.X%. reflects range operating NOI, is the driven X% be redevelopment The period XXXX re-leasing contributor impact timing to and collections largest which positive growth to embedded growth our this steps, to the by earnings to property range year, Excluding continues of spreads, Base deliveries of midpoint rent leases for core of shop projects. commencement will of year

However, anchor move-outs following occupancy is result in anchor near recapture a impact expected and of our bankruptcy-related lease primarily expiration. rate commenced junior to term, move-outs space the some

we in lead we growth longer term. occupancy anchor points same-property XX are anchor time NOI we But as year. due we commence year-over-year rate portfolio expect short importantly, as new lease the the in will higher be our robust our recapturing to expect the the XXXX, about down to trend to by been rate Given have throughout tenants, releasing about tenant space average more And open basis quickly impacting demand, it. just overall

commencement XXXX. to activity will beginning benefit in We anchor late from rent the begin outsized

NOI same-property ground-up well previously UBP from to growth, discussed as as range positive from reflects addition developments. recently In also merger accretion contributions earnings our the completed

income. January million refinancing impact $XXX higher new of for debt in pleased interest we advantage attractive window our preferred discussed earnings remains core of prefund included by also X.XX%. Notably, as to closed guidance which month recast facility, total that In headwind proud to the operating banks banking and a a are even activity our range is we by partnerships. be debt a long-standing we dividends, a took maturity gain of markets to expense result, of of Regency's this spread impact points. $XXX was an performance said, as quality are discriminating, net growth January on at capital interest visibility precious bond as quarter, and this shown more it $X.X sheet our credit record, to as tightening busy XXXX billion being XX as revolving priced of balance well we where on more million we and strength which of capital incrementally you position a please last track consider As the a basis the That note is rates expected environment this our very upsized are our an to of year. reflection proved portfolio to access borrowing greater commitment, early with and

sector-leading fortified leverage end the range November of We unsecured And low Our balance prefunding to XXXX. sheet liquidity bond our recent next following our remain not activity 'XX further at maturities, is targeted position. the our of to X.Xx net until debt maturity EBITDA. has of of our X and

Lisa sheet us free access cash capacity allows of upsized capacity flow ample million as north we our to questions. capital incremental further growth year. and for balance discussed, drive on differentiated avenues grow and pipeline, to and This this your opportunistic happy to Nick we have development that, We our value. With newly liquidity, both look and and $XXX and to to remain take redevelopment expect revolver as generate are

Operator

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

Michael Goldsmith

we that property just the refinancing it solid same of some merger is As takes related algorithm to limit some and puts flow for and that the through. factors is there's XXXX, growth debt normalization then the at and a and may look NOI

and the and normalized So my high look online Should potentially better thinking XXXX low I question you end going kind And into of algorithm anchor this the about more gets of range to year? XXXX, forward. of what and guess the going forward? comparison leasing at then coming that is, end the

Michael Mas

Hey, Michael.

question. a in You There one there. lot with punch pack a is

all, to So will some it that get have let that. others of certain me if unpack don't And questions. I'm similar I

So the and growth got big rate. a there, said largest you've just has NOI to contributor moving parts, been growth perspective, the core and largely recap earnings to correct. Same-property what from is largest earnings it our you

contributor a at the merger X.X% transaction of consistent, estimate growth midpoint, over X% at largest just in can we're been you proud deliver So to there. Very know, X%, see, growth, rate, UBP since as accretion the rate our same property back and looking that's to May. core we the you X.X% growth of as to announced

to that, collecting and is as but about top We in No through way, to some earnings at will further of surface we're we line color. we're we're just Alan in XX% call, headwind moving happy of the level, the start relative termination right with the that that look extraordinarily behind spent upon them let exact percent direction surface, really good consistent midpoint. causing extraordinarily drag. the commenced growth. To that really the on kudos this By course, we're some points prepared of up of of of it's see continue going quarter and million. it we NOI in to $X.XX the in question, vast in just the course, within But XX rent. When & year. And seeing alluded to headwinds, is a click the first to bankruptcy Bed target which move-outs the is underperformance Much occupancy come through also fees to results can -- Aid. this of be direction, about it's describing. our and And The financing, going occupancy of underwriting. We that $X from share. from us decline to debt me that It's points. and you Rite plan. are in a pleased NOI the the which occupancy leasing it's of you what's feel follow-up move the remarks of for together around which for I'm and like year, Beyond. $X.XX us But plan, basis your with this leased it's the surface headwind dynamics Bath the marketplace, filings, time our on leased. kind looks Listen, our of going to The about beneath come the we plan, let the to our XXXX, happening another this me later assumptions puts about its on of collections deliver jump recent percent the about some of of here. going And basis $X.XX And sure in and majority outperformance, benefit team move-outs that. specifically, typically everyone. to plan. we the Lower -- we're them, for by the takes That's XX towards put see it's COVID give the some uniquely through move-outs of we

of paying are of have impactful couple occupancy we're your to those in Manhattan year. And high early we've to then rent finish activity on We and expiring, on in that to -- it that leases a going re-lease great the got decline feel your spaces, question. but up the

As going we're XX growth rate. it as downtime. we of about that to as impact commenced by on north We we can is be points rate remarks, should It's a average, X% but on By it. weigh I basis the again, is year-end, on started. rate get about our be occupancy re-leasing of that up said it's to basis space where should this in spot quickly that timing our that that's X.X%

should growth kind online that of coming can commenced hold back rate looking X.X% again, moving the guidance, not to our forward. to lot I'm algorithm XX% 'XX rate. -- from to all a run standard looking together 'XX say year like we of lastly, is If here, occupancy and X% giving So there's benefit all perspective, 'XX an if our see is but here. a disproportionate

Michael Goldsmith

Mike, thanks for so much the...

Lisa Palmer

may I -- may if just X just If I second.

is the and did we're that nature. demand in Just lot what a -- now. health of it is And in prepared because term that associated is it is back really say business our The is takeaway we nothing good. to -- to said strong, these very really words Certainly our was remarks something because move-outs big with all that the The This there's right come that's short in question. anchor seeing remarks. downtime we of lot a permanent. prepared the a was not

As Alan demand thing signs not space for whatsoever. healthy important that's we're I the a said did, I our really my abating seeing in any of as remarks, And to think remember.

second maybe. Michael, Your question,

Michael Goldsmith

I'll very short. it keep

You're looking are the X% portfolio? the core? UBP for you for thinking growth portfolio. of faster Is growing NOI a to in about the that X.X% bit growth little core than How

Michael Mas

It is.

same in are on points about we Just What about and the We basis at the has growth is to that excited They a was We prospects in opportunity. that -- rate assets included the in of rate. shy And making had our leasing portfolio I the team have slightly great the additive. 'XX a but that was portfolio. range. progress, and of platform. and would consistent. north we X% should by there, is say, we're X.X%. that It is XX leased -- it rate assimilated Regency portfolio saw portfolio into points about the XXX like to X.X% It to accretive looking property X% growth it's stand-alone that if about additive, been would be the basis, basis

Operator

Dori with is Wells Kesten question next from Fargo. our

Dori Kesten

And acquirer? to there you ended know surprised acquisition of as would but the you interest of X, [indiscernible] be out the if net describes about guide talk can a your currently today? volume year sits you I Regency at

Nicholas Wibbenmeyer

market a a Appreciate little question. we're seeing we're just in to pickup. Yes, color I'll definitely the is seeing -- little I'll what you the give

opportunities. and again the But As very in in still in definitely haystack. XXXX, you more seeing as know, turn pickup from below were with a a always, and are there market. say underwriting time the active as heard in understanding We find, those norms, it's there. And did of was historical the XXXX. happy page needle us time into as in lot we we're definitely XXXX, I'd now We say activity you we out 'XX. but opportunities the out

we're And are it goes we when back to opportunities that to going and and accretive quality say, equally to what our earnings, accretive rate our always growth to find pounce. we

hopeful since know, move do as And we so continue as through we to in to to you 'XX. haystack we those have are clear not needles But guide find visibility. we do not the

Operator

of question America. Our is next from Jeff with Bank Spector

Jeffrey Spector

thanks kind remind of company 'XX And composition, et I you target into And a goal on, you higher be, NOI. other these I 'XX. done, rate market know initiatives while, investors, to longer-term cetera, Because growth to second lot of beyond? are that in key a seems same-store it's on me, what trying same-store that technology, of comments let's that think in get you a to for the comments a say, Can NOI? 'XX, let's working past, but in portfolio for like, look terms whether and higher would is right? do drive there's say, the have for headwinds into 'XX again to some

Lisa Palmer

to same Occupancy, case, in and it's for whether growth our that you -- percent contractual in be or commenced primary investment our dollars. term, then spreads. down. and NOI Thanks, we affectionately long We NOI to move have the is we re-leasing also do always property it, same successful down. cash in if the annually. provide that component do that And will coming and And target, spreads the of in And one growth redevelopment really have rent up to XXXX -- X.X% model, we NOI track our same-property provided X% as by had occupancy through of grow Jeff, record wheel going is materials. of the call property we Occupancy really a have adding over will, kind to question. this that

have long years, company throughout I've to time. believe goal. Mike to that continue been evolve that And -- of I sustaining the you get long-term is, long-term better to improve the that earnings to as know continued ensure I processes to leverage technology are a we all our the that and core tools, So and growth. with this, operating know and is commented, contributor do which growth, continue we to largest also most NOI

Jeffrey Spector

a Longmeadow the And December? bit about acquisition opportunity? Shops, Can seller then more helpful. talk cap more that you in you would anything a little detailed asset value-add question. around discuss color the motivation, Any on be Can rate,

Nicholas Wibbenmeyer

can of a fan just to again, wanted Jeff. approached Sure. And units using belt, This the every in is Appreciate they talked cap for is related have getting. tool we those Nick. were they the I'll our and looking your therefore, question us. start the of and question, ours about with from care the rate opportunities And And where haystack and you Regency afar. They currency. the valuation. a about in tool one transaction, They as currency transaction. a units were seller we appreciate, needles this they're

for they were asset And purposes, so owned decades. They to planning ready transact. for have the

excited the from going in opportunity. were we standpoint, thing plus a this X% can minus see or so And yield. is And about valuation as you

from well standpoint. attractive very standpoint So a as quality as yield

And future so about opportunity. that excited of the we're

Operator

is Mailman Craig with from question next Citi. Our

Craig Mailman

push minimal rent taken demand. from a the big different your given follow earnings you've as growth. the call to to off. the But of inflation helped fundamentals focused seems been top want just been lot way. of a good longer-term come tenants line of market are. has perfect of Lisa, have and out a what I that's how of want kind up. to is, I for power I piece guess has kind like years seen of supply, I that couple good kind for also And last storm it know Maybe of the just maybe on

fast into inflation market As sustained more of starts back pushback to I able are food 'XX, that normalized mean, the growth seeing rent the I it's 'XX? they that too guys early any being on moderate to labor some kind pressures other tenancy? know you fast to of casual, of maybe levels, the take be some hit for cost on type some with particularly side

Lisa Palmer

I addressed allow had question, that. best know it's I Craig, think me with to to that you handle but Alan

Alan Roth

question. appreciate I the No, Craig. Yes,

I XX% opening spreads prefer X said GAAP your on to in rent over in our And measure. we're perspective, peak new we to from deals. As this had some as But emphasize question, our the total we But quarter, years. highest XX% an growth XX% impressive growth occupancy. a remarks, inflation better annual total approaching is

So I can continue both think when when forward. teams as we the is as or I and the that we near push that get now, that spreads there are that, even we is think go we're power still pricing expectation there on the to and steps

X% getting Approximately more and steps, or we're steps. are We now those our more we're higher and steps in XX% new getting had steps of getting deals deals, head higher. and XX% of

believe think trend that that is and is can continue, given focus where Craig. there, I occupancy I the again, So

Lisa Palmer

growing we year, think we're important to I had far and removed and then I operating come remember that the think And top. growth value cash safety we the model would on a growth. which and none I cut getting our ever translates business know about through did again, you proposition went our is XXXX but And the before, of to that our world from earnings When our time, really a investors, our I experienced sustainability it's went just not time to that core dividend. it stream, flow dividend the through and of mean, us entire

total value important operating think in get that, you our think core investors. when to It's growth range. returns for the shareholder the And about X% earnings again, really that's to I dividend proposition to growth XX% plus

Craig Mailman

don't one this one I maybe know, want to expense have it And headwinds to been Mike, don't any helpful. but That's No. is an issue. for I interest person, direct

that of ongoing enough when box of through in moderate you successfully really start of I'm years. numbers, to through headwinds billion in have you of continued and these sourced the timing multiplier the of earnings? age the see the leverage the get of at, repricing redevelopment over years? guys that flow backfills on the occupancy, the some do acquisitions $X maybe kind kind kind have When You Is out. coming really the normalizing get trying to X of next of the kicking to next kind couple stack? just debt have potentially the Or anchor pipeline same-store of to some see you you to

Michael Mas

do of those Another [indiscernible]. into year, of And and powerpacked I through appreciate to. our redevelopment flow this see power directly we growth rate development in and cash any excitingly again, those dig pipeline, just our the our understand And into growing happy through them to and to 'XX, forward. rate our We we Craig. to capital existing like do and will question. that the going put which and -- I add ability I headwinds to ran some you'd clicked it, But and that growth we free for kind think us growing have of

a have, put basis, -- into perspective, and our given on more our actually our cash actually acquisition that Beyond leverage-neutral from leverage position flow range, have, a leverage intent. sheet targeted driven the free we end by capital balance even low of at again to we

core into put the which end, through explaining our of growing But of growth 'XX job of going activity with continued kind together, towards a commenced unfortunately, then will 'XX. we rate. think And to operating Nick that the our forward, earnings about did acquisition you how and nice occupancy combined all normalization add

even elements themselves will in that operating vision better is least of reflect objectives bit records a we earnings on amplified the being X% outlined in even dividend meeting do those result elements growth if core Lisa operating rate all a I in think commensurate those of a increase with a can maybe earnings little at growth. And on core even those maybe growth all pushed slightly our of more higher, in the occupancy should rent of business, growth. margin that

Operator

Our next from ISI. question with Khanal Evercore comes Samir

Samir Khanal

the you've side? from this I the as there? unlock Urstadt are with time internal a Mike, opportunities maybe now. on upside to digest know you you've while for I also about standpoint X.X% guess growth accretion had integration the seeing of portfolio, what And opportunities some an the about on further talked occupancy redevelopment But Biddle, potential what the to

Michael Mas

about the -- Regency's strategy And Samir, higher term, that a rate being long-term the was we just I the I'll Regency's ability the that a -- near like portfolio bring basis, rent see the merger And this we as growth one But on beginning, like from that that rate. paying looks articulated. occupancy this is a liked currently looks behind element exists. it articulated we've growth to reiterate opportunity than it in assets. than

and an rate from same-property commenced fact, are this occupancy. that because growth perspective of In we additive movement year, seeing a

know -- value-add not We accretive redevelopment constantly as -- to we -- looking not not well-located And But that the do we -- portfolio, -- see merger of there's are leasing we all there's we that's we're and our say opportunities either. our what an estate, assets. term. bought. are commercial heavy this we a as But dismissing now. really near is doesn't didn't we're big what in find that redevelopment me pieces we component exercise leasing future you real it's hear So -- a towards I'm up this of the do in have right for eye across of

prospects about And there. we're excited pretty long-term the so

Samir Khanal

guess, local not you of business what I are I delinquencies then at segment. look local mean Okay. is just seeing my the resilient credit question on segment, and health a the level, appreciate up. you When comments to you that of but And and that? the the it's consumer record side being card -- yet. seeing, around second see the you're consumer the guess question of shop I kind the impact at not shop debt, the I on are

Lisa Palmer

like portfolio it add, feel tend speaking, free, generally please would we necessity But service. the take community to value, Alan. of shopping to own our again, about centers, neighborhood convenience, think Alan more and shopping if be I'll types centers

the not So the a areas trade losses. do operate there's of consumer job mostly -- that we and been in in, lot

necessarily wages. are they still -- they're when still shopping which and us. sometimes to at do therefore, benefit jobs earning also And are people trade cut And community their centers neighborhood down, So their cut back, They still and tend they they may have will first. back not people spending.

again, have won't can that decline any high we pay and year absorb we that -- But to never feel going not declining. consumer -- long-term absorb say will we spending in from there Sales be we're for pressure also some to So every sales. tenant leases, we are good to able not they operators, to quality, in because do grow tenants need our rent. a can their

gone been many recessions. and at Our operators. cycles through there my it been, have we Regency, in tenants moderate has And great are have experience,

I like a a much any to of we even we are that that type there recession, -- to any COVID, the pain. we into I were that did enter of recessions been moderate there that significant type where of decline and then didn't are and more have feel But visibility as really pain result XXXX. that don't or recession feel a see don't ones that. And have in So GFC more if

expect to pressure. don't feel So much

Alan Roth

going operator's would next look look And I We're look to We're going elevated we are strong. not. then an balances, assignments, at seeing to remain to to just sales Samir, levels our they're just perspective, AR add, we're going to we're from reports. healthy. of first They

I all now. portfolio into of within so at least those right reaction our consumers' the of sort dovetail think also things And

Operator

from Our next with McGinniss question Scotiabank. is Greg

Greg McGinniss

opportunities maybe you're other spoken the capital as for started. construction you investment year? that Previously Do opportunity investment are ground-up developers to see about year? opportunistic there this nontraditional Or get this finding pursue that lacked still looking to an

Nicholas Wibbenmeyer

available in development, I'll say to to appreciate greatly sourcing, overall. this this way, it every we comes Greg, of I I the just Nick. toolbox the the acquisition, Yes, us when it question. is opportunities again, tool investment mean, benefit have

hard definitely no get. there's construction loans still so are for And to people doubt,

to debt So but capital. times, be engaged need returns. smaller they with more to are just cash-on-cash relationships developers, than expertise. we many their fix need They continuing need They

debt and in so is in those equity conversations. play And

to more to just have we debt. we participation given we sort bring more can appropriate, into related that. And of to tools turn those conversations So not, being continue times some equity in future than development debt just a as dialogue we long deals where said, than when may to the That opportunities mezz overall transaction deal on lean and a senior providing to own it want We've acquisition, have well. recently potential future term. will we that and are closed

the and we into belt go tool tool and we're conversations in with excited bring again, them about out, And these every so the potential. future

Greg McGinniss

Great.

of XXXX in the bit about? you that those as type potentially Manhattan And second For confidence your shopping your a It's from talked asset here. this well? year a what's bread addressed and vacancies question center, [indiscernible] is re-leasing butter. But different of

Alan Roth

Greg, yes, thank question. you for that

are of as as think remarks his key it Q&A, was well. likely come going of where back lease a tenants, the transactions to vacated year speaks do 'XX, rents, I fourth opening Avenue, we of it's month. strength know, part So we estate. the to a in there unfortunately, early in Second Third it. mentioned Mike this the very online import Manhattan, that down a former the in in last that those the real rent lose as negotiating We high in the occupancy think to story not and then you paying we're or premises maybe as it of lease just sort CVS X middle back, did that that until and ties to last of year. And quarter I We And food the have get signed of Avenue solve into

very those certainly in us to 'XX. us it is replacement estate for real about the enough Feel good that, find but strong impacting is So users.

demising to it, all or sale. Barney's, redeveloping As it leasing avenues, evaluating to pursue the continue it, we

And act priority financial so it's us. going and what to we're makes best upon sense, us, the top certainly for a for most

Operator

Ron Our Kamdem Stanley. Morgan with question from next is

Ronald Kamdem

Two quick ones.

next you XX Westbard I'm on you still looks about update provide strength was thinking of how see are $XXX added. that in on the sort of million. and the at Square beyond in to potential of Cambridge like that looking So Square, new and even XX sheet? coming sort guys I starts months? And an the the Is supplement, Biscayne given Avenida Maybe that, development, balance can

Nicholas Wibbenmeyer

the Ron, greatly appreciate question.

opened Giant, with for I'll them, very in just happy last Westbard. we that relocated redevelopment grocer continues the announce and to tremendously is I'm well. flagship to So built of start couple which doing really well. is and weeks the new progress a that

if really and a sort in wider of our keeping about is development us job on checking out and time good redevelopment pipeline. you then as team at the would So proud zoom out that and nice We're area, doing on feel anyone D.C. look is recommend budget. And the I about you we redevelopment the as potential the asset. very continued highly all scope,

redeveloping it's the in We we as remarks, done. in quite pipeline As the but a highest aspects we started of starts strong million and And XXXX prepared look we're mentioned into was very see $XXX which time, business. our not portfolio. over beyond. of in we XXXX, amount It's some existing our all still

putting about prepared net ground is junior rebuilds opportunities There's in as projects, that pencil. excited continue ground-up out another, several production we as in difficult question remarks. And us Other of way as But I you we're alluded is in later. transactions phenomenal Cambridge, with Northeast. than that. it. you've are new a teared one grocers, weeks are execute it boxes the the in times, least, it's one doing it be in back and then some are would no to of as next saw difficult our about Sometimes hope to to These but you to ground-up extremely here XXXX, pull to or and up, together. seen the Alan these We couple That sooner with in announce not mentioned. last opportunity. potential

right now. rounding base is team home Our

our expect or as of next pipeline billion we X articulated, $X excited plus the So grow to and years. starts minus that in hit we've

Lisa Palmer

say of It's best give -- the the you softball, me business. in a play is in favorite to know the team And to my business, so this softball opened today, and platform opportunity how season team best softball. the actually another many the

competitive free And the Our And and and we a we're really expect, to it's funds will continue I proud That of. is leveraged execute flow that perform. us. advantage I'm something Thanks great. that for was question. cash confident for

Ronald Kamdem

Great.

second could my one. Just sneak in if I

sort guidance think messaging the messaging. I a basis of What's odd sort of same-store One, how in And and was of bigger thinking step sort and NOI. the of about into more thought debt as Just same-store in specifically, the just the digits so forth? NOI that's growth year, of XQ. the you we this about making same-store sort to calendar talked sort the you that's historical? closing point is factored still then on core an compares XX the that the Just picture, NOI should because earnings be sure mid-single translating the that flip bad

Michael Mas

Ron. Appreciate Yes. it,

a loss take perspective, is question. credit I So I'll at, think from your

for revenues, that's XX by to -- points of a and metric way, are -- We points what that's on of billed XX we expense. balance for. And similar for planning end the I'd to planning but planned of ended basis very the to to range call, the basis loss. XXX are credit roughly That year is towards lower the kind traditional bankruptcy loss in in bad is, half 'XX. related we that debt and of we fact, Roughly provision of XXX that credit

That to in year, course of beyond on in we're occupancy I SNO a the growth that of pipeline. is translate top with think it's to driving and to drop Alan actively commenced that extend core pretty about basis. going for that reasons line But -- that. to we solve kind some to commence of the them occupancy the question gap deal going throughout as yes, alluded as earnings 'XX, the we what's closing rate, your on

Operator

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

Juan Sanabria

are if maybe sample I decent rents start developments development curious saying disconnect, guys opportunities recent find on XX% your amount think to given a just market new comments? Just the of grow to is just Lisa, in those to to when, why do you pencil. some to we But XX% you a your guess, two -- Where they're of for have here, peers, comments. able listen

Lisa Palmer

I'll so afraid softball, little answer. play a Nick him I'm seen this never of I've answer. let

Nicholas Wibbenmeyer

is Thank kidding. With No, both And be. my No, up, going when Juan. I'm true. you, to a appreciate the answer great question. Juan. is it set that are question, nervous I I'm now

sense to very very, appropriately, just I want to that. that is for to is to and And that not so It cost. want cost priced stressing tenants enough construction find difficult rent pay keep land make land that

and And to belt hard your difficult, that, as so of is to you in needles excited I and has it have tool time said because agree is a Lisa all time and it and it's want have more. But finding in and because am so stress couldn't is those because haystack. tools why I extremely so I again,

best in We business. team the have the

business. every to up day, working We critical and offices grow their have waking grow XX want they them their partners, with our business, grocery helping

And with opened. make with new the they these stores sitting contractors with out are so at the how table land sellers, figure the us do all shoulder to that get that pencil we helping us can collectively shoulder deals they so

get where very although to continue not make that together zero, so there our to sense we are fair than and opportunities And is financial calculus share. more comes few

so find because execute can to. it's those because will so to continue excites we And and hard on, that opportunities we me it's

Juan Sanabria

think in But yields may you of new you starts 'XX? we where find think for do should that

Nicholas Wibbenmeyer

great Another question.

start numbers we I That's X blended we seen, really basis, would our yield blended the want be lean rate. opportunity a to As won't in pipeline, plus to an see you've you that that see, to can X% that into standpoint. the think some are that initial a we from in-process continued expect range on that is not as say compelling with

we'd would end north to returns. I eyesight continue to But low of blended of see push is X%. on X% basis, really our that's the us on expect say range And the is, so compelling a for where risk-adjusted

the put stress I stress a we're supply opportunities see to how in going first tomorrow again these ground. And two, of difficult do of I number And how new the foremost. to close side. I'll on it is development shovel then a do expect and we just want and before derisk not bunch just and coming wake on we because market up much

hand before in have close. so we And we entitlements

our pipeline. seen anchors pre-leased, substantially other our grocers you've and in are as We especially with

really tenants. is pre-leasing that so And critical to anchor high-quality

our bids but least, construction And in drawings not hand. are and then last

key appreciate on a bring strong the online, we confidence of make pieces you've has given once of start job, us doing track in to, history. them and time Lisa And those efforts forward. the so have deals on that record give These our alluded as and the daily move that projects these And to a have as I are puzzle sure budget. have making can we very that we to seen, do And hand done sense. tremendous teams again, the of

Juan Sanabria

OpEx Anything aware follow-up growth quarter the unusual of kind should the that for if And side one impacted store mind in more that. rate the through taking forward? on be that the the fourth of same don't we flowing quarter you

Michael Mas

Yes and no.

rate a is year X% was a 'XX, OpEx. of full part basis the think a on -- big on So in Insurance on about growth story, year our Juan. I

well. we're in and pretty think from impact the you're insurance well today, what been I versed markets not property has feel that like immune an impact. Inflation as

we're triple As you know, largely net.

rate, So quarter. picking in a insurance the unique fourth that increases, the of off majority our tenant to recur That burn a a know won't its won't vast real but one a did of if we're brownfield up credit to where estate pass that your taxes through you in And unique in our recovery which kind quarter had credit held the base. we successfully of analysis, so forward. fourth own. We has item. line have you're tax in those item that in can don't item real was able going that -- I in in estate any including see

Operator

Powell is Barclays. Our next with from question Anthony

Anthony Powell

the question expiration. out there at lease other guess, I clarification they, a other watchlist junior the they on if why on guess tenants? tenants do Manhattan Or why vacate? moved did so, all that move and ones bucket? or And are that I comments, the is in anchor We

Alan Roth

the I Anthony, this is Alan. appreciate questions.

So was intense it on as that, of asset of management But many move-outs part our was Manhattan intentional top bankruptcies. there approach.

to likely Target year, the was that's few It's us month, going live and and the until right of of rent Phenomenal open yet here decision long-term around examples. and a to be XXXX. that know we going accretive that We've entire project. not XXXX. and are in would to QX, example. I going by next something for highly absolutely we're merchandiser, And down stop I into great bringing paying or give so QX number a impacting and got a Norwalk, retailer of you way transaction Connecticut

I provide also Sprouts, Health one medical growth. to in really office supply with facility examples. would remarks. of tenant with we of fact enhance that had credit them one to X occupancy that take an made is one intentionally enhanced opportunity the and durable Nick in We them just HomeSense, I had Baptist mentioned get decision again, merchandising, couple with a rent significant replace think his this with And a

comment. a so from that this and coming is its into thinking And and climb through here from of of way rent just paying in year-end really that our It's 'XX. and 'XX filtering off-line proactive uneven sort in perspective back way

Anthony Powell

'XX? you have 'XX at tenants your look so Okay. the of this I you rent? Or you and going Are 'XX, years. keep to peak X% separations of in and guess activity this pushing my higher kind this guess, question, in anchors, like those for on next is of doing maybe I out X

Alan Roth

opportunities. we going That's that. of look, I at to to drive I say practical been appropriately certainly are opportunities part portfolio do looking we're accretive on mean, a for mantra, entire always just to would and perspective, from our redevelopment remerchandise, our focus continue returns, constantly

Lisa Palmer

growth come that components the term, long to range. still X% to that add over of just would X.X% expect in I'd we And and back NOI would our same-property to be

Operator

Kim Our question next Securities. Ki Truist is with from Bin

Ki Bin Kim

think impact you to to own your are to push local local whether back guess is to rent? concerning know you question increase actually Just be how go that expenses I about a how bit, want explained as to I high does ability guess of some or the want these but way run? business it causes politics properties, OpEx in about And to governments I expenses. and start at where level, that the you Juan's pertains the

Michael Mas

Listen, growth the changed all. that capital on line at hasn't appreciate Ki thoughts go-forward our of question, the allocation item OpEx -- the our and directionality a basis, from I a rate in Bin.

We to continue regions. our of to grow entirety the portfolio want our across

that change a and like to pressure there's some extent the not fact, add to we'd Alan find kind on allocation into particular, In dive perspective let I'll or growth. exist as may portfolio, opportunities capital Regency and the but we may to that from the rent add in on increases. of region Phoenix, no of in can a the that result comment

Alan Roth

rent growth. at their would play part? Ki Does speaking, Bin, say, the Yes. certainly generally to Sure. day, I end we're a small look it seeing of mean occupancy I our not retailers costs. at pressure overall the the

to when you all margin, but at layer enough this that so change. the on just And certainly little kind I of it's small again, have not a material in, impact, point think that could really of

is I we are. where the think reality

Ki Bin Kim

drag? commenced from And points basis drag a NOI is quick The Okay. follow-up occupancy, the here. to XX roughly then the equivalent that

Michael Mas

break a will I little which Let me think differently, help down you drag NOI out. the

rate It's in that the that and drag to bankruptcies, XX on points XX be to positive. commencement lease dragging by basis base positive and as to then area. we've question the announced And XX let is spoken growth, that's here's primary fact, actual puts that to range, through offsets. shop that NOI today bankruptcies basis going basis helping same is to contributions Manhattan contributor from the Again, benefit, takes points about growth. of about rent-steps your property of about Redevelopment about areas, XX potential in the the to rent it's us then support that's points. the coming really and the for And in occupancy, growth X assets bankruptcies length both to XXXX. And spreads known are as and the well the X% going be largest same go So me X.X%. everyone's at

for commenced occupancy that's XX tied that essentially you, just rent that quarter. bps, drag in first to I that the So Bin, Ki summarized

Operator

Our with next Jefferies. Tsai Linda is from question

Linda Yu Tsai

NOI. year questioning, on previous if but said line the up setting to based disproportionate answered this sure be timing you Not in of growth you of with lease XXXX is a

should long-term that So 'XX disproportionately target? be X% does above your mean

Lisa Palmer

say you think your to I in question, meant 'XX? not XXXX

Michael Mas

-- again end should else we commenced -- ourselves rate, bond in this bringing yes, that to to online, that not a pipeline else core being operating that compressing idea refinance SNO earnings all frankly, incorporate impact certainly into I I going delivers growing objectives long-term you 'XX stress going being yes, the and have All and then into equal. We're XXXX a And and we translate that above-average back the equal, result. But to. meeting about in are have on growth. mean, elements the plan that to that we're will mean mind -- what at the again, to is we're there it in hold Yes. We're we think direction correct. pretty 'XX. other I 'XX that that extent the And in serious -- articulate year, that I giving our accountable basis. hold of portfolio extent not Linda, guidance, to delivering see but the the and we 'XX,

Lisa Palmer

equal being would Yes. growth. all And average all any can't the back uncertainty, long in absolutely term, the to term, X.X% to I'd it's we agree being other of to over that's same-property We but equal, X% big part economic expect long years else control else isn't but geopolitical is come NOI why X an be or that average. a

Linda Yu Tsai

us question second in Bath contribute working are anchor Beyond give the you and is signed occupancy to versus decline. leases update on And Bed on still? very of & just where the That's Aids stages you the that backfills Can helpful. various economic an my Rite

Alan Roth

that question. answer to happy is Linda, This Alan. Yes,

those our XX%, so Maxx, I Market, are for a those. Bed my our great later with judicious I'll great again, be coming I in what very, has of Bean, team Bath of progress. the mean year, think, Beyond. spreads at north executed. And users anticipated I really are online So this while we Fresh really XX RH keeping until also REI, these. start T.J. there's backfilling & but a LL Nine made won't number And levels, Outlet, capital we've great mentioned remarks, of actually level as experienced some in that rent exceeded that retailers, just

in X now. So negotiation right the remaining all are

have those through of and rent a And of We hope hardware those the prospecting. these, One X at of to how point are including already in store, the Aid, rejected. the time beyond think leased, proactively are process. wrap to those Rite is front to X With in closing operator. of open gets closed. respect fitness up I locations, we been and So those merger. our paying. that team out Six to are had UBP X have to a a of order really those we relative of testament X X short back all the filing XX came again, locations in

haven't we're X, to going so the process we're they portfolio to of stay remaining the pursuing through Aid our exited and as officially bankruptcy. And go balance that front foot on as actively the Rite relative to continues

Linda Yu Tsai

those they how all below Are map? over or Aid? above are market? about we sort think of Or for Rite And the they rents do

Alan Roth

you I are just Interestingly like all over enough, way the They the that. phrase map. Yes.

to I'd there's say, there. you are some will we flat a massive I can really There generally However, that from mark-to-market. in but ones that speaking, double some be certainly tell ones. digit XX%, XX% are

that the So get -- really certainly on we back. those but depending about good feel generally, upside I

Operator

with next Mueller from question [Operator Instructions] Our JPMorgan. is Mike

Michael Mueller

Just here. really one quick a

level along leased that think where commenced do with shop And that? if goes that to, small XX.X% rate. Your you at What's can the tire level grind all? commenced

Michael Mas

Let's see here.

at commenced shop occupancy. are XX.X% We

shops Our basis higher, Alan? points on what the going much at SNO are was XXX you -- the set, record to year-end. How

Alan Roth

-- to we're would to... going I pretty Mike. pretty I close to here it We're getting take -- -- north, mean, continue close North.

Michael Mas

to our thin in to that air, the used have level continue I describe rate can we like we mean words I've we're shop the lease it of in to grind space. I think higher.

leases. normal just And are XXX spaces team. anchor to between spread really We is great commenced. still on good points that including deliver a commence On a right? have leasing keep basis all are great should we'll So pushing. basis, and these going available and that to be leased balance, in, on The centers follow, we going

Michael Mueller

Okay.

applies that to too? So shops, spread small

Michael Mas

be The Mike, narrower. back spread will you, of what be We'll long-term shop wider. spread get to small anchor The on will kind spread is.

Operator

Van is Our from Dijkum next with Floris Point. the Compass question

Unknown Analyst

Ken Billingsley for on quick guidance 'XX. Floris. question A your for

guiding Given dispositions given some core business, you're seeing your in you confidence $XXX to as million that provide in color Can that the are X.X% same this rate. at to conditions cap approximately you're why economic supporting cap rate? your

Nicholas Wibbenmeyer

that Ken, I question. appreciate this is Nick.

we As is disposition clear know, to visibility that. on you when have our guidance

have need years as assets we don't we And still portfolio last the good will have over assets. nonstrategic the really our that several stated risk, about for so and sale. prioritize to feel we have that but sell now, we've

guidance, pricing. those so And visibility have single assets for them instance, And They're nonstrategic. a tenants. are in of that do we the couple to

we so we And good the disposed selected feel about to guidance, given be of. rate been that and have about that good cap feel assets

Operator

to are any hand Lisa at like no closing floor comments. the questions for I'd There further time. this Palmer over to

Lisa Palmer

your Regency, has everyone for great hope all you Thank weekend. Thank a I interest and in you.

Operator

This concludes today's conference.

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

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