Regency Centers (REG) 3 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Christy McElroy	executive
Lisa Palmer	executive
Alan Roth	executive
Nicholas Wibbenmeyer	executive
Michael Mas	executive
Elizabeth Yang Doykan	analyst
Jeffrey Spector	analyst
Michael Goldsmith	analyst
Juan Sanabria	analyst
Viktor Fediv	analyst
Ronald Kamdem	analyst
Ravi Vaidya	analyst
Craig Mailman	analyst
Ki Bin Kim	analyst
Floris Gerbrand van Dijkum	analyst
Linda Yu Tsai	analyst
Michael Mueller	analyst
Omotayo Okusanya	analyst
R.J. Milligan	analyst
Anthony Powell	analyst

Call transcript

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Operator

Greetings, and welcome to the Regency Centers Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Christine McElroy, Senior Vice President, Capital Markets. Thank you.

begin. may You

Christy McElroy

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

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

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

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

Lisa Palmer

Robust healthy had into of with in driven expectations Thank activity by is a leasing fundamentals. you, significant and poised our rent our XXXX. an of is growth We very another centers, solid we to demand really With quarter, and all rate are tenant driving line strong this Christy, growth. morning, shopping good and and continuation even leasing and demand everyone. percent activity, accelerate higher evident leased in robust this across

from space. [ we intentionally having of operators more As merchandising re-leasing which you are rents. I success will hear higher upgraded with at quickly leading great will of recaptured Alan, and note ], we've some And

Regency our we pipeline ever about team the forward over strength tenants and larger coming an is activity to platform pipeline. development the As and is is creates excited part propelling our than on advantage. growth. really creation a growth an a Sustained differentiator it's which in executed enhances made, for important been, business of sector I'm leases has strategic term, provides our our today. value of value look unequaled result, online executing our us our future and also The our progress long of these

retailers, capital, grocers our great projects experienced Our and talented team, top all with an national and and strong ready in enabling relationships growth access to pipeline lineup of execution of in-process our opportunities. continued on are development and impressive

level with and in online this of you'll year. hear development continue benefits execution of following similar drive Nick, starts, NOI beyond. to in over as activity XXXX and we XXXX $XXX to success our from in As from impressive comes redevelopment will grow ramp-up a expect million this The

to liquidity strength upgrade value meaningful are position provides to the balance which capital our pipeline a opportunistic a Importantly, and creation of in sheet the to position we with remain credit ability consistently sustain dividend. our grow this rating our cycles to is Regency in occurred by acknowledged and to our really strategy Moody's what And February. AX, see strength allocation of with gratified through

people our This supporting with the in in durability further big us seeing It's above-average quality operating capital our It's and strength trade our relative market accomplishment the our the open-air of Regency's corporate from reflection to allows consistently It's currently speak long expertise result our a a and an advantages stewardship. advantage. tenants sheet, that shopping rating, time. what sheet balance sector differentiates term. bond record our direct the of are redevelopment and peers combination unparalleled format, to over strength through benefits the it's and already our responsibility of I pricing, ability merchandising growth us the and and earnings It's and favorable unique to our portfolio, create flow and balance track and area and strategic to stakeholder a center of It's of believe A excellence dividend what we is cost driving platform. We our per share, rent of be over cash and including we strength of attributes the development operational mix, growth. REIT and of the drive to often, team's and consistent of occupancy. of which only value free demographics commitment are our is

to performance High-quality especially our particular of business. Alan? our operate the structural with growth which and portfolio trade suburban long-term will centers, shopping from we tailwinds and benefit continue in support that strength areas the of continued excellent

Alan Roth

continued even demand Thank push our our quarter achieve very strong. both has saw we appetite levels. you, tremendous team We unabated, for Lisa, rents and great had as that good enabling higher to everyone. to of centers leasing in morning, tenant The activity for our XXXX leased rate higher QX in another space remained and

of with further at high-quality tenants, We our centers. executing our and are strength improving merchandising value creating the upon leases

call, is in a seasonality of that given quarter discussed to come Our same-property This on anchor I the last we by to the first move-outs experienced back another which rate coupled moment, historically percent increased move-outs points quarter's I'll leased impressive with the significant quarter. higher in basis XX especially this XX.X%.

shop the from commencement rate benefiting XX.X%. XX our high lease activity another Base reaching in up given XXXX shop year quarter in Our for points lease-up basis record in was yet growth XXXX. new record shop sequentially first is of rent of

higher, ago, our leased our commenced an in driven our rate discussed move-outs a quarter, has decline expected moved recall rate while property the quarter first Roughly we You'll the a Norwalk, points plan, XX was even from in to our basis commenced in recapture occupancy ended Walmart same attributable half store the decline consistent of first Connecticut. quarter by this anchor of that intentional year-end. rate with down

property, an Some location. an with recent create from in us were tenant you of to expiration on the tour of exceptional a great value firsthand lease opportunity this anchor seeing

will downtime This example is We of already similar has one lease is significant while built space center redevelopment, of the executed with within and just scenarios portfolio. accretion. but Target the the new some out transformative undergoes a the impact experience been

this environment, appear and On the approach rent disconnect with strength surface, cases, the many opportunities the management, vacates. and these leasing before paying between asset to accretive occupancy is but deliberate of us quickly our the in coupled tenant enabling to in leased advantage would occupancy take counterintuitive,

are stores coming the We and getting our growing long-term forward these improving of and months. with remerchandising look business new upgraded we to rents, anchors value at centers, in the higher for and open

these us, property base incremental of leases portfolio. pipeline As occupancy stand with executed million delta leases, leases all-time within our basis leased reflecting for high $XX rates, point same will operating annual that commenced has and which commence an rent our a new XXX rewarding We be an we've this is our space with replenished grown. between vacating as very today of

categories, what's of already the feet of including a space letter variety or based, off-price from wide grocers, with have consistent of X.X across we health square in wellness, Beyond another portfolio under restaurants, and services. million personal negotiation intent and demand

in re-leasing increase first we've rents ability than spaces the available in XXXX, including a and further on blended today's spread the a indication since of an of X% renewals as that occupancy to highest demand reflection strong limited, were Cash spreads the basis more quarter our for rises seen environment.

the GAAP given and leasing this were quarter, net in our steps spreads of effective Both use leases prudent in our contractual capital. of rent the rent and majority strength mid-teens

harvesting strength the supply retail of and surplus and Our to are a retailers the open by available high-quality team in seeing, of country look space by higher occupancy limited months to those of the move is Nick? getting expand. needle high pipeline, the to SNO leasing ahead. continuing the forward activity and looking across tenants energized benefits supported record we actively operating We unwavering great and a our

Nicholas Wibbenmeyer

new years. mutual starts redevelopment over development million had well they with the great component $XX our We Good the first already in you, Foods are as $XXX by than the our we relationships at a Thank Whole shopping value that as month, morning, last Bridge demand. by plan well master communities Alan. ground be master our ground-up in Stone of million developers broke team growing project pipelines. XXXX, retail development remains significant quarter as just serve. was centers everyone. the will tremendous our of start our provide can both success a and Motivated Maxx The success anchored including as for the Cheshire, plan these and T.J. This serves executing projects, benefits Connecticut. recognize we with format while and which more as and we've seeing Among very active, new leasing community, the shops of

nearly have to $X.X in executing total, to in-process to billion our projects. plan we than X%. of leased with complete XX% million addition $XXX In is XXXX, pipeline process, online. we continue and In over starts, make on blended And progress NOI great of now returns which new bringing we these more in

are are anchor examples the progress Some highlighting. of tremendous that openings several recent of exciting worthy

new Duck New nearly ShopRite Playa start successful coming the development BBQ Green last Bridge, in the including now zone, grand shop leased. the tenants Exciting Square store XX% Stretch Honeygrow, At soon openings project over the Jersey, Silver Sons giant Westbard opening and our and as months, month include and rent ground-up opened Oak Barrel tenants and Glenwood Vine. and both Old in Bowls. At and shop & January, Target commencing Bethesda, Tate, and celebrated will space Donuts such grocery from is

the market. to private transactions Turning

in are our and and activity historical the Westport, seen, within that move to cap adding rates great earnings in is the our opportunities quality, we growth strong region. recent remain team Connecticut, Although treasuries requirements. to data but our immediately are remains one that in in accretion fit buying marketplace actively bidding norms, points acquisition implications deeper includes deal centers, portfolio portfolio remain of existing This below we adjacent low. increased volumes a already pools to underwriting The that of asset seeing and be in our

As on investment is sourcing opportunities ahead, our national team platform. focused accretive we our look across

visibility pipelines. to our We redevelopment expect as activity we grow acquisitions and continue development on and great execute opportunistically, on have to we

more completing year another project of for X projects on track starts than next meet of billion remain north planning of and $X the strategic are our years. million We of over $XXX to objective

We are tailwinds recent their business, Regency to shopping by driving and our attractive pipeline. with execution and strong trade leading within further centers project within sourcing The is more macro program center our to looking our high-quality also capabilities. are additional momentum successes grow opportunities partnering importantly, grocers grow footprints the but within our supported in by areas

As cash Mike? development free investment our you balance value the team the hear us program. with give in best have business, our me significant say, within fund unequaled and sheet repeatedly flow ability we drive to and an which creation combined

Michael Mas

bad earnings our ending Nick, highlights and updates X.X%, before comping largest was growth the largely against ago debt which number base FFO with of first guidance reserve debt XXXX this unusual. that and rate that our historical net was by $X.XX with to was collections to driving positive, sheet was and some impacted NOI our first growth comments basis indicator quarter NOI is fees our $X.XX quarter re-leasing I'll reminder we our are rent our for points. and steps per start reported results of rent core forward through we term a our operating by driven then redevelopment you, averages, year know and This and At quarter contributor X.X%. anomaly while trended walk to XX a well on morning, position. expectations COVID Same-property pipeline. portfolio We performance. and closer Nareit first of Thank as same-property the It's everyone. balance share continues excluding team quarter. best bad share to executing period rec on embedded good from growth as the per through This be spreads growth, worth

occupancy XX.X%, XX quarter, Our points same-property rate basis strong leasing leased the in reflecting the is another environment. continued up

you well the pool First noncash see as can $X.XX as rent, full quarter items from year guidance. a of property of earnings straight-line results $X.XX which timing-related outside increased in benefited of same our

half the year. rents Additionally, $X.XX about annual our quarter, than percentage typically for to run compared QX the in recall implied we by rate first the balance benefiting the that more of of recognize

to important performance disclosure invest order REIT's I which level ability our into in highlights AFFO like around Page of the back NOI added earnings. allows what same-property transparency also dividends This is one also supplemental, used peer capital to disclosure the would its view, new of the most our point group. to in business out to comparison on metrics, grow grow our greater to reflecting a and of X apples-to-apples for across provides growth and drive

our to updates. Turning guidance

increase at $X.XX in the midpoint, to earnings items. you detail our presentation. refer our our noncash for We corresponds I'll always, As which helpful FFO through X to in Slides by X raised Nareit guidance the the outlook on

Our fees and excluding at period collections. NOI same-property unchanged growth to term reserve for guidance remains COVID X.X%, X%

We outlook. also transactions year our adjusted full

higher As Westport include noncore core in our lower acquisition the of growth of share buying now guidance, potential despite guidance, debt implies Nick growth few sale guidance our period excluding operating a interest COVID the asset this Notably, more the dispositions referenced refinancing at impact we of increased than is are assets. year. collections, earlier, the reserve to our our X% rates per we in and smaller modestly included and earnings midpoint

we of activity growth, have see As as as We've commencement to the where to discussed coming pipeline relates approach we XXXX. our where growth wanted leases from into calendar outsized impacting beyond begin visibility. we items executed look our and meaningful some greater highlight tailwinds move it year, the we we especially will year-end

pipeline the scheduled SNO year. by our more is XX% this which of end mentioned, commence at rent, of of a annual Alan million historical than As base sits high about to of $XX

XXXX. our to as compared higher expect commenced this to occupancy spot we fact, year, roughly rate year-end In points basis end XX

the these largely XXXX. the As year, lease weighted will impact NOI the commencements to half in of and earnings second are occur

discussed, commencing Nick ramp-up we've redevelopment completing as activity development space forward to look delivering rent. And to and these and continued projects our in-process and

and The this from basis momentum leading activity for likely We XXXX. benefit to ground-up into expect to NOI the total which NOI to from to contribution exceed same-property points XXX is to redevelopment to growth positive accelerate same-property year, into of head growth will and will NOI as program, growth, also overall above-trend benefit next fruit year. we start more our continued bear development next also

November it to XX-year balance phenomenal our sheet our Moody's recent bond majority XXXX. we to where sits today. upgrade The further The issuance of to until unsecured are which balance maturities current bond turning below shape. the sheet. our at liquidity Finally, following is not credit the maturity been January, year's debt rating our in have And in are markets this prefunded gratified is insulated a balance yield price in next meaningfully from treasury and volatility Regency's from we capital as relatively strategy validates AX position. sheet

is all fixed. Nearly debt our of

Our years, to maturity to near leverage and close weighted range X.Xx to EBITDA. X debt end of average preferred remain we of low our the net is X targeted

have approximately and remain We on year. more free million of track this nearly today than of billion including full our flow liquidity to cash $X.X on $XXX revolver, generate capacity we

questions. your take we are to With happy that,

Operator

of [Operator Comes Instructions] with America. Bank from Spector of Jeff the line

Elizabeth Yang Doykan

[Technical Difficulty]

Lisa Palmer

don't it's. us or question. the We it's cannot I hear know if if

Jeffrey Spector

Hello, hear me now? can you

Lisa Palmer

bit. Lizzy, you're breaking up a

Elizabeth Yang Doykan

we're the any the additional your year. of Just through So Difficulty] saw maybe in through [indiscernible] you expectations of [ part accretion the I as upside first any same-store quarter? [Technical was the seeing benefit early have to might sources of exceeded asking or if ] if flowed

Michael Mas

bit up the given in I I you're the Lizzy, rate earnings still the question. little of think, versus early I gist Maybe your the parts, breaking but the year. a in the of on first for quarter the think understand run balance beat cadence

heard I what that's ask. think I you

back made go of the of maybe up remarks and kind comments a some bit just the little of that for some me Let color to you. in I

thought a Let saying were our solid high delivered very very our met at quarter. start performance. really plan. we by with happy level, We we a me We

our simply run see run the impact a from of through non-same quarter That do there which the first merged larger collected is coming a in $X.XX our There a that does was in percentage lead then rate, timing guidance forward little of that as remarks as as, portfolio confidence about right? changes. is confirmed the earnings rent And perspective impact So limited as going a -- is out the timing than reminder, an our first Biddle was were Our seasonal non-same outlook timing for XX% designated on you in our can some we it That is I again, rate. of issue. deceleration as a issues to rent in I biggest quarter. the more that forward It's one. or XXXX. kind property have little customarily Urstadt entire portfolio, a because is some outlined

-- year, what additive of outlook didn't right? those So those in to for but change our the timing kind aren't flow way. But through any going issues

that's in the We incremental pipeline. Nareit have point, did continue $X.XX. of this FFO we That revenue coming of coming development by a and out rents specifically last of quarter. that straight-line improved rents raise at So lot coming confidence the to straight-line shared from to guide the we -- noncash plan is out

on a We also mortgage this adjustment paydown executed had following we that mark-to-market a quarter.

to So our through guidance million perspective. we ] [ those seeing flow that noncash and that you're what from that's increased $X led -- AFFO the an

range. a modify From growth, this. with the we Let me same-property end just didn't

in as we last year rent balance happened anticipated commencing into there. planned. into We we've the that as remarkable that done our re-leased we've that part and best conviction much really commenced 'XX, percent of the back gotten and have good a and 'XX And going of lot about. And for of quarter that We -- as then range. job the we fallout a and space some, of the in is we outlook feel end communicated

Elizabeth Yang Doykan

for That's helpful. And connection I the issue. apologize

and front. most a I -- what lot opportunities on look growth out as the viewing color to would maybe on what to would market. seeing know development, that external helpful. maybe you opportunities you the go curious said you're a redevelopment the of opportunistically, in just More you're all Just that kind interesting But on follow-up, most be there's today,

Lisa Palmer

I'll allow and take whether to top a we've aligning is operating for wants if over or to had add that it's more detail. come our Nick of it's which for me little unchanged, investment he with with our recent success Really acquisitions, portfolio. development, whether strategy,

above-average opportunities extent to areas trade great that quality the Grocery with expertise mix, add and we to regards those happen, as can that So make above-average in tenants with the also primarily and anchored looking our for well. we're to merchandising demographics.

across both from had because I track redevelopments, we exceptional ample in the best and to flow an impressive find And that Remember, is development cash success especially acquisition record developments our have was remaining really continue a and year. that flow disciplined. of free want doing really XXXX that we're and cash into reiterate late that, generating of opportunities. and we and I into of free use we that is And had continue the talented, about my pipeline. our but know and XXXX. And development take the not the strategy We've get development to that. sheet, questions to saying with really you grocers, the have you a success, of have equaling country, master we continue have I'm what it's to prepared experienced easy, you it's the we we're proud plan as our which top we developers, when relationships that capital community expect when I top have, that team and retailers, access remarks, balance to strength when with said and in

Operator

Michael the Goldsmith with UBS. question comes Our next of from line

Michael Goldsmith

of X.X% you NOI Mike, contribution at rent quarter. the in base growth debt XX of tough comparison a points called Same-property out with X.X%. basis bad

that we any points other rent range rate, should remind you looking X% of be the did comparisons in use X.X%, So above base moving about you year high can the XXX And is us trend? that the should basis say maybe pieces that growth next the is forward, forward if trajectory?

Michael Mas

Thanks, Michael.

balance, we going guide X.X% lot confidence look balance within As that to hover range and that quarter-over-quarter I year the fact I say, hover highlighting basis. expectation. would prior to of X% a into around, It's in I unique as a consistent, we really still you in appreciate it's did as -- pretty range. the 'XX, We the and to going that have have QX look the anomaly through

means. say redevelopment growth we did sure That's understand what let's I same positive contribution coming that the from to make property plus our rate. XXX, deliveries

-- growing and redevelopment income We in way, will have on the get that be are see and really thinking disclosure it and projects. delivered. excited about with when really of you delivery page, conviction that the our can about yourself And pipeline that by comfortable

generally, the ] Remember, our or growth XX redevelopments it's happen again, we a towards over about executed XXXX year provide to have team plus the a of commencing our and to of that. plus that rate just on XXX just I outlook and the we that our [ projects going And on rents, executing the you'll talking see, contribution XXXX. growth Urstadt better given in for point has which that, matter into come steady-state conviction basis this positive than points those is lot would deliveries minus leasing kind in to to and spent basis materially are we end back the a time of of see and really, start about

Lisa Palmer

the of that X the AFFO at the see strategy. years, result And growth all things, property what XXXX. growth sector rates, with just picked of at add, if same that I look is and is you for and top you But I back to It's like just right? Mike, of will growth, that. won't And NOI rate, go that, Regency make expectations, unequaled give you the advantages Michael, I I remarks. I'll kind would add, guidance we that. those promise, long-term -- I economy, the the would in will to that equal expect we the would of all growth regards rise up the that of we with sector. that from a is still prepared being would temporary to our And talked my of with for we long-term with XXXX It's given XXXX else dip about XXXX strategic -- our expect top

Michael Goldsmith

SNO and And of that pipeline. elevated points my up the it took follow-up remain at kind on here? here basis 'XX $XX is elevated what's the we sitting or It the worked expect currently trajectory or XXX pipeline. step now a from down SNO million Should to with What's and still choppy. the should be -- 'XX through

Just trying pipeline. how elevated can around monetize quickly you how -- to you understand better this

Michael Mas

I right it when at he'd Alan say I'm I for the hope I the that and hope say reasons, thing. grows, and Listen, looking same

lot by how We I our in are and conviction [indiscernible] properties of continuing and rate. leasing lease a well in have think ability. at a desired we high have they our team's conviction a know of the we lot to

that this And up. So that year. moving from basis move-outs we rate your delivering were it's we troughed is to be question. like essence about we as commenced our I now knew number look we the moving quarter we've on of a do commence commenced an increase. occur these impact economic planned, see All going from it's honestly, perspective. spot -- occupancy perspective, think space, in plans, the commenced a And our rate do wouldn't our But and about at first of to that think I'd

commence $XX perspective, not pipeline of the ABR those something Let with an to plus million, right? rent, area. year-end, in question. SNO you should minus, to of help recognize that's be earnings or but in me A give We bit 'XX. in going you XX% million your the will from leases $XX over I'm little So by

pipeline. So X/X that's only of that

units XXXX. you adds going the to that, we online conviction into that in of is that as to come that So we deliver ABR balance XXXX, have that tells

Operator

Our question BMO from Sanabria of next line with the Capital comes Juan Markets.

Juan Sanabria

it you trying increase Just that decision? you the could and a cases, Could market rents are And seems on devil's of mix in and offset to more decisions, improve 'XX proactive how that making the if of to curious to or a advocate that do play be that in that's like here. some temporarily merchandise growth? product their stronger obviously -- here. increase and -- trying Just

Alan Roth

is long-term We've taken view Alan. intense for asset the you this Thank management. the Juan, question. always of

And in we of and so third location. last to in so another them. identified replacing location, Sprouts those success But quarter out for X that medical replace supply who's the one a the a answer our those long-term portfolio. and sure HomeSense right facility said decision I'm with It's portfolio future your I not what take actually to the all question, and units in Health of location, Baptist for I interesting. the we're about Regency. for is moved absolutely office asset, stores that

significant examples to merchandising, think how to and tenant credit I providing better getting good your durability occupancy our at we just through growth. rent really of the look it's enhancing point,

continue. think mindset would It's how managing that expect I certainly we So of the the about trained. to and our portfolio, how mindset we're it's of certainly

Juan Sanabria

And been how have next then that if year curious -- performing pool? the if comp Does there's same-store tough presumably, the then folded lease-up on that that's there. just would Urstadt same-store as create opportunities included into issue is more and numbers a in maybe additive

Michael Mas

those from perspective, in I'd we doing some the on is seen But expectations. performing Urstadt the Let you've me a is right it had for on on and take delivering and plan. remarkable portfolio. portfolio, my And first, give color team of the the portfolio what to Alan job like expectations then high

accretion. little we first a from come amount a said for in going or mentioned cadence the So noise and just same about we to quarter, indicated deliver I by X.X that been level points perspective off which the that there's that minus last of it would we're Is expectation. X.XX haven't called bit to that property or timing and And additive, off I reiterate will additive quarter, have called we We're that, as plus of by about worth point. about had same to up year-end. we

if leave has And I'll at it So a that. Alan comment.

Alan Roth

in only thing would the probably a last is people We it. runway the platform, quarter. quarters, said, I continue signed add am of into with we thrilled we transactions I And few result there's did organization portfolio. be about the more come that to there. great Juan, have but personally Yes. the productive I thrilled with the as And another have as XX that expanded

XX% and to and going portfolio now the we company have, the of platform, certainly are to leverage hyper that that leased that acquisition. that formerly right the grow We relative focus is

Redevelopments to deals little ] that doing of a focus some leasing more multi-tenant small maybe but hyper evaluating we're are doing team long the well. deals, it's term, lot, out largely, something couple pad parking are a in and but medium is on [ the

Operator

question Our line the McGinniss from next of with Greg comes Scotiabank.

Viktor Fediv

is Viktor for This McGinniss. Greg Fediv

that both and new work percentage quarter-over-quarter new year-over-year landlord leases, noticed a rents basis. we've tenant have base your So increased of allowances and as on a

this curious, environment. was it's unique or it market Just quarter something current a

] new So TAs done. work get to leases and to higher provide you need [ landlord

Alan Roth

although for junior on you any make a the all, box. for one elevation tenant a turnkey you start not we're elevation is I'll front. relocation Alan. we way this material a The slight short Viktor, at there this renewal to that seeing is larger answer is is quarter. question. there Thank did The the see shift

If you the back management absolutely capitals And historic mindset line to one asset. that the ties asset that with think I again, intense right for levels. of what's our take are in out,

them one elevated X just X tell transactions. space anchor was that by anchor On the a over of largely you, we for vacant Notably, front, new leasing would years. was I And leasing. it's had

I again, seeing there's terms a some not of mix transactions anchor in as issue that, so that's And but driving market think just we're shifts result. any

Lisa Palmer

AFFO leads were that, I believe think and also do yes, cash hasn't reiterate it's that, our growth, with judicious but again, we to free very ample helps is do changed. look long-term flow our our important our and that if growth, just the capital We're to lead growth, AFFO leasing which clearly approach you drive to -- strategy at sector. it's

Viktor Fediv

additional And million provide please follow-up, dispositions. on the could $XX then as remaining of color some a you

more in So now, was by properties in than should dispositions pricing in being same also be there are no other transaction or it other we And 'XX and from expect in Florida. within assets far, submarket the submarket. both Florida relatively apart dispositions driven that were just attractive noncore market noncore,

Nicholas Wibbenmeyer

Viktor, this Nick. question. I is the appreciate

I part cap looking fortify nonstrategic potentially profile. we answered our you to of in looking at mean, noncore, always attractive referenced, your question, growth are And to rates. is you the assets question always we're which sell As

we accretive may expect the capital as look into assets so now, more our we rates, to we recycle opportunities cap guidance into you do future, at that in continue as see And that sell to attractive see.

would strategically, it Florida, X in as so a were but in portfolio to we happened, tremendous And just I Florida. trying now we these have tell so Florida, you, exit you are know,

area. trade And so these by by are really decision asset case-by-case to trade area asset,

necessarily assets additional would not in be expect these Florida. I so And

Operator

of Our next Stanley. Ronald Kamdem with line the Morgan question from comes

Ronald Kamdem

ones. quick X Just

one in talk acquisition So opportunities or obviously, of activity? move guidance. how of about sort million on of front, that just slowed about? sort sprung in that can Maybe sort -- the you on change the up the came rates given the has And just added has $XX

Nicholas Wibbenmeyer

Nick Ronald, I this question. the is again. appreciate

your is to. guided now talk So first about we've which the the first let question, me acquisition to part of

our the asset, excited Road. Compo that those at on Post Joe's Road The the And with anchored, Northeast, about. of you'll so very It's across asset familiar in recently CVS tour Westport, directly our and shopping it. at the of a street corner own that XX,XXX foot and Connecticut Trader from square we for we're in center center you be

opportunity just already into great we tremendous asset a portfolio. really, that so great region with that familiar a excited a bring are about, to again, adding to And really and

asset that so fully And was marketed.

and us market competed process. related we think I our our the that helped so competition. in presence And given And in on-market and reputation definitely to

even maybe excited today. closed get as soon, very, very soon as so to And that here

that, continue to for can we Lisa earlier, the And centers. so opportunities beyond which indicated country is opportunistic, be, and across we believe create looking add we again, shopping to that as value

market were quarter And quarter opportunities so the the the they in more definitely on before. than is last over there

moved treasuries the last know, all weeks. couple here in we of as But have

pretty not. we take volume going volume or we from and can chatter we steady stay opportunity any darn that But And to. so hearing, to slow it's transaction do that expect TBD we're does advantage of to think we're the transaction of we see add value

Operator

Does your question? that complete

Ronald Kamdem

visibility question XXXX have that My and is, the or the headwind second that could the more trying seems is Yes. of getting a the the have pipeline question of right? to is coming the the from be the of Just on theme or be out was figure there's sort conviction sort the sort call, guess fact health, of ] tenant the conviction just sort larger acceleration the [ which I'm I bankruptcies, year same-store. both, move-outs on Look, where next signed-out to that is in you or no of same-store. lease coming? it you

Lisa Palmer

to leasing my add I'm that both. And answer partners but results, I to and that real. the can our it can you at mean, the some more to and -- meant think see I be that and glad is SNO I'll percent leased and that are very just specific and our say, continue high any is the where to we in we higher with health level end. extent here broken that portfolio you color, pipeline want higher. records added drive success the

to And successful about visibility also of Mike create have that we real have in the commence being real And really visibility XXXX. our questions. also redevelopment rent does to that so that talked in prepared one with and additive pipeline. in will we and been remarks And those the

it's So of the all above.

Operator

line the Haendel comes of from Our St. next question

Juste with Mizuho.

Ravi Vaidya

on and there, seeing of operators you're some Haendel. and care what We've you line demand in Vaidya I doing the softness ask, your ] guys the demand along But a to I from wanted Ravi hope and very is thoughts This around robust. to from is hear heard things wanted for line. to started just centers [ from particularly the some that hear We've you well. and care your Med strong perspective. urgent environment are notably peers leasing leasing Walmart. on just that And

Alan Roth

Ravi, it's Alan.

about and has pre-COVID. that ABR, grown So is were of exposure we our X% from X% current where medical

we is, very to certainly was grow. XX but are We to first nearly if Interestingly, that. with invest it footage signed our it new new a square continue any not and largest new physical category new from that for capital second lease were operator And and did the we where comfortable to where a leasing perspective. optometrists, comfortable on medical primary therapy, only where highest even primary it care it ground with medical leases that in included quarter, dentists, the building didn't Houston, was going largely a also care they're in build Regency

just make sure think facility restaurants, aligning a activity arena. comfortable But it's significant care, overall, vetting X% urgent cetera. the to exposure, of But in an urgent to not And just services, operators. all quarter, us of first also all ABR. this our leasing we're than it's the operators, piece strict I our that transactions interestingly our does for process personal would our care right take From category. et I we the the to really a certainly in with nice specifically was team that of medical we're We, have we medical, quarter none question, whether do new job the with answer of less that the did back medical

Unknown Analyst

impact is ones. growth couple of think inflection guess, as crux I the How percentage next over sector, an question? Just of and maybe CapEx we're than for occupancies -- more for as this new you years maybe one could of you from Where here. a approaching broadly are the do -- here are we and goes guess, there renewals are more, NOI think seeing AFFO more the leases the is point, goes do you I

Michael Mas

Ravi, our change. it's a you maintenance leasing any CapEx, some average topic been see Mike. the -- on this run of a is on boring area kind that's over give XX% see all bit right? run. we balance, we've capital. we And don't of and on that and So pretty answer, changing pretty Maybe rate, been for long time. that's don't but I'll I've consistent

rent very our as judicious of money have team volume spend, to that periods and increase a that's does just cases right and those job we're because doing, the we the could where are in capital going You're of market-leading average amount with ensuring operator's of line, and the where the as you're but into time now I you're that that we're investing market-leading and an again, incredible of getting -- to business, of commenced fair adding appropriate. they're think terms activity that -- line over occupancy

into going we outside going so can precious. Westport. cash free to much great generate like redevelopment can the asset flow of add in is our And business. the reinvest as development portfolio We're that, and to point that we're we properties, Capital to capital that when to we have as available Lisa's back by

So XX% that I area over see the run. don't long changing

Lisa Palmer

it it's -- trying capital, because expectations it's do I of and us -- within our our to -- shopping strategy AFFO and our that reason we successful staying a growth. do are I centers And an does our it we the want in of allows to rent doing just reiterate our so. is asset And and leasing intentional quality that limiting to parameters while that, drive maximize strength

Operator

from Craig question next comes Citi. the of line Mailman with Our

Craig Mailman

want for partly throw with to accelerated just flow Just just a is increased you a Just this to guys to you little the acquisition. free cash get you of of bit I follow acquisitions? up. know capital, have. trying because from the need dispose guys think dispositions you here Westport spending necessary pace more Or this But $XXX guys that just given Is could the the you a get off. to pay redevelopment? fund placeholder million

Michael Mas

sell cash need sheet to pay this to That we -- have think afford the the I Craig. don't you, properties is acquisition. Yes, in Westport We flow or will balance free position, the help have we capacity. the for

of so fingertips, -- to have leverage we of our We on speak. have expectations, capacity basis, $XXX free you a cash our take million if kind neutral investment at flow over

when portfolio our either identifying on we simply of noncore think we a of an some add on indications or assets developments received million redevelopments show small in asset pretty cap $XX trade rates. have So that exiting low was basis, honestly, noncore the that interest about into where accretive And our acquisition.

Some you could debt that's and pay of down can these assets, accretive. you argue

over stream trade here. we see It's take all going that's we're think to bit doing going that's income smartly more lead And growth and opportunity, of time, to durable well. a why, when kind that a and little earnings to we're I pruning of So it. as just

Craig Mailman

guys have be sales? at the this maybe much And in, point? you some could kind these have on of dialed And remaining that you on do timing what think million you visibility how of do $XX of that

Michael Mas

plan. that on going I -- I The think market, execute to mean added, it, going weighted. to lot it's And confidence the $XX being $XX that is we're we've million I the a visibility be back-end and think all million have it's actively discussed. of have I we still on that on of

aren't occur. of going These transactions other -- in. have They're lot assumptions. a disposed disposition The actionable are to speculative known. confidence These these are we that are

Craig Mailman

Okay.

have is $XX incremental $XX million million guys think, then other but of known, guess at million, I $XX you -- is on getting what's the done timing was I of the kind kind So you those?

Michael Mas

but think out, to me QX QX end how on help about roughly going to look is it. to estimate $XX the I I'm million Timing, the team of -- would

end it about think third quarter. of the at of kind I

Christy McElroy

that announced was Tamarac, we And also yet. second that did It's the not Craig, we the press list disclosed in we the in another transaction and disposition quarter, in just it release.

Operator

the Truist. from with Bin Our line comes next Ki of question Kim

Ki Bin Kim

coexist time. consumers I media retailers talking basket of So while, was if and good stretched I could the of curious challenges. being conversation been some for think grocers be And I demand both where you've has certain though smaller a and there McDonald's. some that a for your any sizes with today. even things tenants noticed in couple dialogue about And just can be might Starbucks, there's been like know

ground. you're what on curious the Just seeing

Lisa Palmer

us the have predict actual areas to macroeconomic, future just and we It's is have continue today's expect trade our and the our and tenants. our trade be the any and of macro given centers, be always -- to I'll is about the do let to to in it what can shopping know right? mean don't uncertain, value, within the and take expect our then we're Alan is we I trade the Let been world, to high-quality pressures point, we especially I the to that talk me areas, we discussions that what going first, And consumers that generally happen. know with centers But of able this convenience, the types expect service centers, absorbing of, areas types capable we of uses would are that seeing going right? today.

are [indiscernible] today. I of And don't for we handset it And a do they that are even important I also the really We why close at is uses I this because because results our -- generally medical service shopping -- needs, seeing about it. centers. the time, and about. I a heard us have that want we for shopping say time. renewed for to tailwind, physical this, -- stretched through which thinks really the and near shopping shopping stress see that, the comment appreciation and centers goes centers. our is buy their think people's real for you we made that all in presence centers think goods to softening homes a offering types to to are of a that this the we that spoke hit you've structural suburban is there's It's that tailwind he that

not going to he's add. So

Ki Bin Kim

I pipeline, be land think pursuing. have guys but terms high very guys position? of round development and just you current be been kind in -- How development, second of the might given different about projects some successful at a Also you your that on land versus of have And you yields that bank especially the might curious starting yields. don't large in bank

Nicholas Wibbenmeyer

this Ki is Nick. Appreciate question. Sure, Bin, the

development land right. strategy program. absolutely as bank our not for We You're a do

estate are of prior as part while we we these the to real so And very, derisking diligence very projects our closing. control thoughtful about

quarters, really, tremendous is especially sure previous control continue it really through high-quality grocery the really to we've environment all and across we is work do And And our work together, the our those of real we platform, the across our pricing about We as core pieces in opportunities have our of make estate. to a We those ours, country. have it tenants to process. we committed through job the talked is bring teams process puzzle of exercise. finding challenging of entitlement the but the a projects, We of sure so a competency make tenants.

occasions, And said of multiple feel about program. as future bullish our development on we've we the really

of it We in in and are and our our teams of expect on range. in you our see question success And and that's more -- X% and that to still and our lean range process, redevelopment share continue to we those as can our fair your as yields in into opportunities. development terms between we're you find continuing X% to of have additional program, targeting and yield, than where

Operator

question of Van next Our Compass from Point. comes with Floris Dijkum the line

Floris Gerbrand van Dijkum

a follow-up more it's question. guess I of

versus In terms development of redevelopment. the

core always I has One the of Regency's development, Lisa. think, been competencies

obviously, much anywhere also, on as of portfolio -- difference come But future think existing think going over how most opportunities development view? Cheshire there's to development of unique in always from your your suspect what's rise have order peers kind I by that is I new or opportunities And brand-new development -- of -- return to advantage national justify much your probably an like somewhat versus basis. those to those. you're But in opportunities. one You the Cheshire. of do you of pipeline are XX% how your guys rents a And on saying is in unique need

Lisa Palmer

then Nick let and finish. I'll start, I'll

all for good. matters that as the almost competitive And we correct, the and been I tailwinds you're long national differentiator that Nick been a reminds being to for created as extremely you easy, helping relationships online close percentages generated I'm acknowledgment us bricks that And makes to me our service regard. us their saying redevelopment is I but I've retailers for and has buy appreciate track so development all through been have at you've and the we all to the time, have talented to that us XX record I've a ton back what find is that ton for not pick And recent successful able the company, business. for because an an also been and And one channels, have that's to think edge, upside. were homes. past, weighted again, we following the through store and goes customers the the ground And be up renewed towards in momentum in walk seen you front mortar a a more since -- do -- for and the but and of and customer years. with and we've and us and have in not this team experienced, customers' that it's these team for the in to door here the appreciation

also you're And growth. expect over going more portfolio, that intensely we're that of grow manage it's expect so continue to our ground-up years. going upside. I But about. to Alan happen, We NOI as will talked few ground important our the fortifying future momentum that and next Redevelopments on would to see an the continue see do part to I existing

Nicholas Wibbenmeyer

alluded And vocal is, us, news earlier, and to process. all for continue Mike is very as about, either/or add to great we be to Floris, an I would that, the it's not

enviable And every we of lot our the we we see of into capability. ground-up that can team you capital see of have put there. an to and take capital on see derisk an that new with at process, on in know a attractive And shovel advantage advantage we at also attractive are as we a a opportunities portfolio. that very to we existing continue are found portfolio. ground basis and existing returns We going has But accretive opportunities to return in we opportunity can position the our going invest take in our our we are to

focused We and that's we have have the the across that, country on the team capital.

going are so to the between be We're not And we of position to do X. both. in blessed choosing a

Floris Gerbrand van Dijkum

return you like buying, at? in have to today maybe that how or of the West higher can other if the the And but much return opportunities for the redevelopment in would you to on are returns, does I the example, imagine I you're talk that thresholds, in that maybe to like compare going terms market pull of need does higher border something order some guess, about looking opportunities? How for be trigger a things to

Lisa Palmer

a if will, right? to lower upside going had what's acquired on and which a Sorry, tremendous I the already you changed was earlier, it's and growth It's what going Nick, to Nohl said to for target total for reiterate, threshold amount are acquisitions just was example. cap to depend vary. Plaza, return, future the going hasn't of -- to X% that the much X%, developments. We you the going And rate,

upside. there's cap higher -- redevelopment as We not as Chicago did upside much our not much acquisition, leasing rate, or

X%. still opportunity. of So minimum that. tried spread going a have market. point -- successful depending to basis I to that's center we've think we Historically, actual vary pretty upon sell the would in X% are upon what shopping always really target individual with completion the And Development over we're XXX acquisitions that to

Operator

line Our the of next Jefferies. with Tsai from Linda question comes

Linda Yu Tsai

yet if XX% do some For anchors it's much those second plus the could penetration, higher? you I are XX just then is of commenced, just wondering your get those grocers. are? my guess tenants who now anchor how question of Like And signed, but grocer right not that think have many

Alan Roth

of is transactions Daily that I had The a of percent Norwalk, that have Shop. there. are about this were Whole in but very we don't Linda, the certainly are in Alan. excited there grocers, were what we number number mentioned Foods actual first the target

haven't We've if a I got are likely couple fourth announced public that that heard which a about of will that's right year. opening convenient now. quick the in you here Manhattan, quarter shopping that for their ago under of deals think months redevelopment new be and And was customer. urban few this that experience in concept,

that number. excuse is would I We're grocer within which activity down pretty amount is in Publix tell deals significant of get are both to you those deal So Kroger there's of excited a me, that -- Atlanta. open,

a it's so And significant of part it.

I'm Second part of your question? in a with it. moment happy

Michael Mas

this around is grocery-anchored here that number we'll shopping forward. penetrated. you're I we grocer think not go point see I don't here. materially changing from XX% centers or think that to from We're to see grocery-anchored. change And and The as grocery, a We're don't going bias continue materially materially rule. pursue But

Operator

comes line from of Mueller the Our next JPMorgan. Mike question with

Michael Mueller

Bridge is risk as And of a the community? being profile stage or project Stone of that's compare development, like not the those the mature a how for master development one a part So or plan economics, part community, that of early you changed to communities?

Nicholas Wibbenmeyer

plan master is the a glad that I you ours. because these and appreciate I'm Nick. of part community with partnering actually to of pointed developers advantage is competitive the working plan us, question. This it is master real out

shoe have that. put And things most master developer, really to sell so high-quality of make being purchasers you continue sure a important of high-quality homes the that to you if yourselves grocery retail can plan in the amenities a of to you is one important and part

the so the purchase in these are expected homes. with high prices that communities And we're areas for servicing, wealthy

grocers. want And high-quality so they

high-quality the We relationships grocers. have with the

They have assets owning high really the And We those design at know we anticipate we the they know them. capital have to a to expertise those. level. build

way along long-term the from we're making every so And a ownership perspective. decision

could the amenity. that you And we're shoe to partners the master one yourself -- hope seat on you really best plan important of developer, for execute of your that put so in when a

a why we've in that's had that. therefore, lot success And of

mentioned, an is as of that. so Cheshire example And you

development, development an Our HEB in of Baybrook down example our Houston is that.

Sienna around lot Our plan that, example work of and large continue project of to is a the developers of with pipeline. country, and we our that's part an master

These areas. add planned cases, for, These But greenfield decades. are in infill not some These markets. have not that. underway to tertiary communities master just are are that been I'll

sort is on. deals that's working there where sweet and focus our demand the coming formula to and where perfect continue so enough at make of together to And high we're in that's the rents pencil, spot

Operator

of Omotayo comes question the with from Okusanya next Our line Deutsche Bank.

Omotayo Okusanya

So to everything company. at be well really based the on really, on all call, the the commentary, seems going

to connect the guidance, solid guess, missing? to a of trying I'm I increase that going to in Mike, I just So what XQ, of understanding to back -- Again, X guidance? what's doesn't trying of kind kind in understand beat all translate am dots And items. the those bigger

Michael Mas

year every the quarter, of over like income, just occurred basis, nonlinear. I what earned Tayo. rents we streams timing. rent. the items that the some was be I'll occurs the some but half our line loaded. from happens second. on in of item Again, within front than outlook, other in items other issue, -- which plan, it And example, largely That's the it full our quarter. rather about classic -- the was quarter income that first anticipate are Again, first percentage and balance of delivering line for in so Listen, can percent those is on we've in where delivered coming was reiterating think of timing a every it's just but Really just a line kind that first our

we the a of of them of we of But on some year anticipated. all idiosyncratic. level kind we zoom full at items are So basis, those that as out, on kind delivering are just

of from us event, is our think, The into not That's, incredible just growth. translated and continue that, as that's 'XX. to of incredible trying the basis quarter. And on sensing this the we're added XXX plus What convey expectations. commentary happening. of is the to QX leasing translating today with momentum that we that you though, point on [indiscernible] combined future the conviction a I a full to that last perspective what full our it's to generate year quarter you're side NOI quality business and So over the the conviction end talk over contribution leading from we 'XX have in same-property didn't about development year hear our is what's 'XX

Operator

the R.J. Raymond Milligan with line James. next of Our from question comes

R.J. Milligan

First a your off, rest AFFO some from But hopefully, really disclosure bucketing lead. disclosure, don't follow CapEx. of of the I there's your of aside the lack that always already the peers lot your of appreciate different of provided, peers, from

Well, bucket, CapEx. a are what's some And a include calculation, pretty you lot and lot more more industry, think AFFO peers looks really redevelopment of pretty that as re-tenanting to redevelopment question. as think I are I growth like discerning your don't redevelopment, into philosophical some have of I sorry, maintenance an i.e., CapEx which throwing a CapEx. your liberal and of really In

get you those your think I'm to AFFO how curious calculation? about just to So bucketing costs

Michael Mas

to appreciate The question. RJ, team did job, happy And disclosure. I'm take enhancing nice a our I nice the really it. job

lease-for-lease, it CapEx, bucket. refinancing a going as put space for Regency leasing call leasing on stack that as we site. bucketing, [ asset capital. you and We're that it I thank simple densifying compare we my you to capital are you is, within adding answer as -- the encourage ] to and are maintenance So like on We're -- think look-through I an between That's that hybrids. basis. into We're to about They put differentiate we're can all about redevelopments capital. be redevelopment. the we happy it encourage our kudos. to challenging you look We up. box-for-box as others, understand basis, in, the versus would to And the would I at GLA. it. we a it's apples-to-apples significantly is market. repositioning and they added designating for how think you, the and that -- it redevelopment do are occurs, If And that's But then we're us straight that when

Lisa Palmer

the at what just it capital. on to -- you goes again think to that I the we're if low leasing low approach at we're just to still is look end. leasing the And everything bump you together, end. at Mike is back say throw only, you it if trying intentional our And whether

Operator

from line Powell next Our question of Anthony comes the Barclays. with

Anthony Powell

the bit got past dispositions. FTC completely clients and on on that expected or Albertsons that, merger any and may with from taking impact not concerns longer to that it's Just the a in the the a be forth if with that a merger question commenced, questions the few back Kroger, Any months. in few

Lisa Palmer

we appreciate -- has information. it reading probably that. it what the questions that you're from not can and getting don't We're any -- timing have they're They're mean doesn't reading I -- with you new But still operating I -- talking They're us key as and X of of it whatsoever. X separate isn't impacting our companies. as ours. separate customers operations are companies.

not to we give them, have any allowed but do So with do us inside they're real we relationships good information. have --

I the -- operators, feel productive would operate to to of you've our heard about If grocery this say before, of be happen, through, area estate. so. merger stores good some to that our happen, you've both a that, us locations happen think merger compete more believe continue well-capitalized me better us heard to would we feel does to their certainly grocer spin-off and about continue really competitors us. for it stronger, And And that really really And will We we're if the portfolio. good will good that them But the is really of are stores. in operator those of greatest our them you've and expect create real the doesn't a be happy will be that and with would again, and have able we strong they're and if heard we goes uncertainty.

Operator

closing questions we over this would back further like Ms. to Palmer, to at no have comments. you turn I time. floor the for

Lisa Palmer

Appreciate this Thank interest, great have for your weekend. all us you. morning. a you and joining Thank

Operator

teleconference. does gentlemen, conclude today's and Ladies this

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

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