Q3 2022 RPT Realty Earnings Call
Greetings and welcome to the RPT Realty third quarter 2022 earnings conference call.
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A question and answer session will follow the formal presentation.
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I would now like to turn the conference over to your host Craig the Nino.
Senior analyst Investor Relations.
Please go ahead Sir.
Morning, and thank you for joining us for Rpt's third quarter 2022 earnings conference call. At this time management like medium formula that certain statements made during this conference call, which are not historical maybe deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095. Additionally statements made during the call are made as of the <unk>.
Later this call listeners to any replay should understand that the passage of time by itself will diminish the quality of the statements made although we believe that the expectations reflected in any forward looking statements are based on reasonable assumptions factors and risks could cause actual results to differ from expectations. Certainly. These factors are described as risk factors.
We will report on Form 10-K for the fiscal year ended December 31, 2021 and in our earnings release for the third quarter of 2020 to certain of these statements made on today's call also involve non-GAAP financial measures.
A directed toward third quarter 2022 press release, which includes definitions of those non-GAAP measures and reconciliation to the nearest GAAP measures and which are available on our website in the investors section I would now like to turn the call to the President and CEO , Brian Harper and CFO , Mike Fitzmaurice for their opening remarks, after which we will open the call for questions.
Thanks, Craig Good morning, and thank you for joining our call today.
We are happy to report another solid quarter across all elements of our business overall.
Overall, we are operating from a position of strength.
Our capital recycling efforts for the year are now complete.
We have closed on about $225 million of acquisitions, located primarily in Boston and Miami that were funded largely leverage and earnings neutral basis with asset sales into Chicago, Detroit and Columbus.
The balance sheet is in great shape.
Today, we have no debt maturing until 2025, roughly 95% of our debt is fixed and we have a clear pathway to leverage in the low sixes.
Our signed not open or S N O commences.
Our ethanol balanced jumped 60% since last quarter to a record high of $14 million led by another strong quarter of leasing volume.
Sure lease rate to 94%.
<unk> represents about 8% of annualized third quarter, NOI, giving us strong visibility on healthy organic growth into 2023 and beyond.
In the quarter, we closed on the transformational acquisition of Mary Brickell village in the heart of downtown Miami, We have been actively integrating this asset into our portfolio through our in house design studio as well as with Gansler, our leading architectural firm.
We have developed place making in modernization plans that will help drive our significant mark to market opportunity at MPV.
Today, we are thrilled with the tenant demand at this asset and are experiencing unsolicited and strong interest from world class operators.
Recent lease comps are over 50% above our underwriting and we are currently in negotiations with several first to market tenants at rents in the $130 per square foot range.
As a result, we are being extremely measured in how we strategically curate the ideal mix of tenancy.
Our goal is to deliver the best possible customer experience that results in optimal foot traffic sales productivity and rats.
Longer term gensler is also helping us envision the future I'm married vehicle, which will include significant densification.
Our site is one for up to $4 1 million square feet of residential office or hotel use which gives us great optionality for future value creation.
Simply put.
Mary Brickell is stronger and has significantly more upside than we originally thought.
Turning to our value enhancing re merchandising redevelopment in outlet expansion pipeline today, we have roughly 14 active projects totaling $57 million that are expected to generate a weighted average return on cost of about 10%.
Due to the demand at our centers and our hands on asset management approach. This set of opportunities has increased from effectively zero at.
At year end 2020.
Last week, we closed on the contributions of two Midwest assets into the grocery anchored joint venture. These.
These sales provided earnings neutral funding for married Brickell after factoring in management fees and signed leases scheduled to open next year.
This is on the heels of selling two assets located in Chicago.
And Detroit during the third quarter.
Before turning the call over to Mike I wanted to provide some additional color on two retailers that are in the news as of late.
Regal and bed Bath and beyond.
We have a proven track record of proactively recapturing space and releasing to higher quality tenants at double digit returns.
These opportunities are no different.
We are playing offense given the robust demand at our centers and our leasing team is firing on all cylinders.
At the end of the quarter, we had three leases with Regal theyre paying us $25 per square foot and account for two 4% of ABR.
All three of our freestanding, making them easier to backfill a repurpose if needed.
By way of example, during the third quarter, we proactively recaptured a regal at River city marketplace in Jacksonville that we released to Bj's wholesale club.
Not only will this trade significantly improve the credit of the asset and the P. J lease starts in early 'twenty four but it will also more than double the cash flow we are getting from Regal.
Additionally, we expect cap rate compression for the overall center, given the upgrade and tenancy.
This is a great example of how the pandemic created an opportunity for us as we were able to obtain a recapture rate as part of our deferral negotiations with Regal.
Our remaining locations are at Deerfield Towne Center in Cincinnati, Providence marketplace, Nashville, and the crossings in Boston with expirations in 26 and 27.
Each of our remaining <unk> are strong performers that are well situated within their respective markets and have experienced strong improvements in traffic since 2020 and year over year.
In the case of the crossing is the closest National Theatre is over 35 miles away.
Regarding bed Bath, we have eight bed bath and four buy buy baby stores and the portfolio that account for two 4% of our ABR.
Our stores have a low average ABR per square foot of 11, 59, which is about the lowest rent amongst our peers.
We believe replacement rents would be in the mid teens, providing a strong mark to market opportunity.
We have seen good demand for each of our locations from a wide range of tenant types, including groceries discount apparel home furnishings and sporting goods.
Given the overall supply demand imbalance for high quality retail real estate in strong markets and are below average in place rents. We see this as an opportunity to drive earnings and improved tenant quality overtime.
With that I'll turn the call over to Mike.
Thanks, Brian and good morning, everyone.
Our balance sheet is in great shape and puts us on strong footing to thrive in today's environment liquidity.
Liquidity is high and we expect it to be about $475 million as of the year liabilities are low as we have no debt maturing until 2025 leverage is getting better we've ticked down to two seven times this quarter, including our ethanol balance of $14 million. This week's revolver paydown of $80 million in.
Drawn forward equity of $16 million or net debt to adjusted EBITDA was six <unk> times. This puts us squarely at the midpoint of our long term range and lastly, today, we only have roughly 5% floating rate debt limiting our downside risk through a rising rate environment.
Financial results are coming in just above plan operating <unk> per diluted share of <unk> 27.
Was flat versus last quarter, despite the outsized bad debt expense related to <unk> bankruptcy filing in September .
The 576000 of bad debt that we recognized during the quarter.
<unk> hundred 57000 was due to Regal.
Note the same property NOI was one 6% for the quarter, putting us at five 4% year to date.
We continue to Opportunistically take advantage of the strong leasing environment, we signed 85 leases totaling about 700000 square feet in the quarter. This brings our year to date leasing volume to $1 7 million square feet.
On track to hit our highest yearly leasing volume since 2014.
We generated renewal lease spreads of eight 5% and seven 8% during the third quarter 2022, and on a trailing 12 month basis, respectively.
The spreads demonstrate that a limited supply of new retail construction over the last several years.
Is allowing us to drive rent on renewed deals with less capex and no downtime.
Absent the purposeful recapture of spaces that we expect to remerchandise, our retention rate for 2022 is expected to be about 88% well above historical rates.
The robust leasing activity drove our signed not commenced balance $14 million, an increase of $5 2 million or 60% over last quarter to.
To be clear, our ethanol represents rent and recovery income for spaces that are currently vacant.
Over 50% of this record level ethanol come from central tenants as well as leases with best in class retailers, such as Sierra trading company, Burlington Bj's wholesale club Publix giant hold Sephora and Ferguson Gallery, our ethanol backlog will provide earnings tailwind.
25, with a total incremental benefit to operating <unk> expected to be about <unk> 15 per share up from nine <unk> per share last quarter, we expect <unk> to come online in the fourth quarter of 2022, <unk> and 2023, five and 2024 and <unk>.
2025.
Our leasing success resulted in a sequential uptick in our lease rate to 94% up 70 basis points and 150 basis points year over year.
This pushed our leased occupied spread through 510 basis points the widest spreads since we began tracking this staff.
Our occupancy did tick lower this quarter due in large part to the proactive recapture of two anchor spaces Regal at River city marketplace and pottery barn outlet at Northborough crossing.
We've already been released to Bj's wholesale club Marshalls and Homegoods.
These proactive and plan recaptures reflect our long term mindset, improving sustainable cash flow credit quality and merchandising mix.
Turning to guidance given the better than expected performance in the quarter, we are raising our operating <unk> per share guidance.
$1 to $2 five up from <unk> $2, five a half penny increase at the midpoint. Additionally, we are raising our same property NOI growth assumption range is $3 75 to four 5% a 50 basis point increase at the midpoint, we do expect operating <unk>.
<unk> to decelerate in the fourth quarter due to previously discussed asset sales in Detroit and Columbus also our incentive compensation is not finalized until the fourth quarter, which could result in an uptick in G&A expense in the fourth quarter similar to what we experienced in 2021.
And with that I will turn the call back to the operator to open the line for questions.
Thank you.
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One moment, please while we poll for questions.
We have a first question from the lineup Derek Johnston with Deutsche Bank. Please go ahead.
Hi, everybody good morning.
Just wondering how Mary breakout is tracking versus the initial underwriting versus the initial plan you do still have some vacancy there.
So besides that what type of merchandising mix or what does the center need in your opinion.
Yeah. Thanks Derrick.
With Mary Bragg call, we knew we had something special and we bought the asset and as I said in my prepared remarks now our opinion is even much greater.
I think I think it is.
Pointed out as given the zero supply of space in the Brooklyn market, which is considered one of the hottest submarkets in the country and the demand is astonishing.
The sales coming from this trade area rival, both Manhattan and Vegas food.
Food and beverage alone in Brooklyn does have a $1 billion in sales and international American retailers want our presence in this submarket.
Recall really in the last two years has now a desired location similar to areas such as design district, and adventure and we see that even improving.
We need to keep in mind that the center is only 200000 square feet. So this coupled with the zero supply of space the top tier sales and allows for extremely favorable pricing power for landlords in.
In my prepared remarks, I mentioned 130 Black box Triple net for rent, we see this even gaining higher when we proactively recaptured the space as tenants expire we will see significant mark to market in this 45 dollar ABR Sandra.
Right now, we're really laser focused Eric on like the design phase one with gensler and the place making of the center and we are negotiating a few deals with first to market, even really first to U S concepts to.
To say the least this center will deliver significant NAV for our shareholders, even prior to any densification and just really to sum this up.
We see this as a double digit unlevered returns before we go vertical so it is much stronger than any of us thought when we underwrote. This at 76 Bucks a square foot.
Got it. Thank you that's helpful and.
Just a little bit on the private markets certainly transaction volume that really.
Fallen off a cliff here you guys were very active this year intelligently to do with it.
Loading clearly, but what can you tell us about.
That market is right now the bid ask between buyers and sellers.
And I thought it was interesting that you said, you're most likely done for the year, but any color. There is it really appreciate it. Thanks guys. Yeah. I mean, I think this is a wait and see approach at sellers and owners.
Sellers and buyers looking at each other and who blinks first it's a pricing discovery.
The smaller and more tangible maybe grocery a core power.
Urban infill call that 50 bps of <unk>.
Widening the rest is too early to tell but we're sitting in observing right now and really focusing on firing on all cylinders on the operational front just given the large SNL pipeline that we anticipate even growing even further.
Thanks.
Jonathan do you have any further questions no. That's it for me thanks guys.
Thank you next.
Next question from the line of Todd Thomas with Keybanc Capital markets. Please go ahead.
Hi, Thanks. Good morning, first question I guess, Mike on guidance. So the revised guidance implies fourth quarter <unk> of I think 23, and a half cents that compares to 27. This quarter you talked about incentive comp.
Some of the asset sales or dispositions contributions can you.
You just provide a little bit more color I guess on the step down that you are expecting from 2007.
Three five at the midpoint and also any considerations around 2023 that we should be thinking about for the model.
Sure.
I think you can get around it.
Really those two elements that are causing.
<unk> into the fourth quarter, it's about two pennies Todd.
From the sale of shops on lane, and Troy plus about a half quarter from the sales we did in the in the third quarter or second quarter sorry.
Mount Prospect and.
A few more assets in the Midwest part of the country and then another <unk> is going to come from.
G&A, so that really kind of bridges, you from the 27% to 23.
As you think about next year I mean at this.
Point of the year, especially in today's environment. There are some knowns and unknowns the biggest unknown for us in the least amount of risk as our signed not commenced backlog of about $14 million, which is expected to contribute about <unk> <unk>.
Next year about <unk> in the first half of 2023 <unk> in the second half if you layer on that our implied fourth quarter run rate of about 23 that puts you right at our back but that's a good place to start and there'll be puts and takes from there which will offer more clarity.
On our February call in 2023.
Okay. That's helpful and then.
Yeah, maybe we could just shift to the leasing environment a little bit.
I'm curious if you're seeing.
Any change at all any let down in tenant demand or in.
The conversations that you're having.
And then.
Yeah.
Sizable increase in the <unk> pipeline that you talked about can you can you talk about.
The leasing pipeline for Watson advanced negotiations, what's behind that SMA pipeline, whether you feel.
That you can continue to build.
That leasing backlog from here as economic occupancy continues to improve.
Yes.
Let me tackle the demand.
Is as robust set side by ever seen in my career and I think that comes down to a few things one supply and demand. Currently there is virtually no new supply, which is incredibly supportive for landlords with class a product, which we have.
Two retailers are much healthier going into this recession.
Our portfolio is much stronger than before just given the geography changes I mean, we've sold one third of our portfolio. We now hold core holdings in cities like Boston, Miami, Tampa and Atlanta.
Lot of this in that asset.
62% of our SNL bucket is in Florida, and Boston, another 10% is actually in Detroit, which we have class a product there.
And then the final point on just demand it comes down to occupancy costs, and having a low ABR portfolio like us I mean, thats really helps us drive a leading.
Sector, leading spreads, which we've done since we've been here.
In any environment and the good times and in a recessionary environment. So I am very feel.
Theres been no select slowdown we've been signing leases even yesterday.
Demand for future call it the shadow.
We are in advanced lease negotiations with several groceries and even home improvement.
So it's.
<unk> robust as Srs announced schedule. So we feel very good going into 'twenty, three and certainly a lot of this is going to hit end of 'twenty, three and well into 'twenty four.
And then Todd a few things I would add there I mean today, we're we're 94% leased and we think we can get this portfolio.
The 90, 596% which represents another.
Couple of percent of leasing, which is about $4 million to $5 million.
$2 million to Brian's point.
We are in active negotiations on the legal front or in LOI. So we're about almost halfway halfway to that 90, 596% goal and a lot of that is going to come from a small shop I mean today, our anchor lease rate is about 96, 7%. So we got a little bit of.
Opportunity there to get that closer to 98%, but really its the small shop and today, we sit at 87, 2% and just to kind of give you some math on what that opportunity looks like for every 1% increase in that rate equates to about 875000.
And rent, which is about a penny so it's pretty material to our portfolio and then.
The trifecta effect you get from from small shop is the higher ABR per square foot you get the better escalators of 3% to 4% and you also get a higher recovery on those expenses. So we're pretty excited about the opportunity ahead of us.
Thanks Scott.
Thank you we have next question from the line of Wes Golladay with Baird. Please go ahead.
Hey, good morning, everyone.
When I look at this very highly uncertain economic backdrop does this change how you're going to approach leasing I get that it's really strong on the ground what youre seeing in but there is some deterioration going on in the background that may not show up until probably next year, but I'm. Just wondering if you will when you do these leases are you pulling back from any category are you, saying, hey, let's just targets.
The best risk adjusted returns, which may be very quick cabela's any changes.
Leasing dynamics over the last few quarters.
Sure I mean, we've always been laser focused on credit.
Especially I'd credit and when you look at a lot of the ethanol whether that's the little lemons of the world to the T J maxx as to the publics.
To the <unk>.
We're very focused on that so.
Wes I look at this leasing and I look at where I can get.
The highest return possible small shop leasing in our ethanol, we rough roughly averaged 40%.
Return on cost our anchor deals and the <unk> roughly average 15.
<unk> percent return on costs totaled 20% return on costs, yes.
That coupled with our readout re merchandising at a 10.
That's a good business and so we have a team.
And Dallas analyzing the credits of all of these retailers of which we're doing the leases with and so we're very very focused and there will be a more scrutiny certainly.
But right now we're all focused on operation and our organic growth.
Got it and then when you look at recapture has been a big part of the story. This year you got ahead of some of the bad credits.
Would you look to continue recapturing or you're just not going away from this is the nascent company yet.
Yes, I think we play active asset management.
Like you we are hands on boots on the ground.
Looking at space by space by weekly with our CRM program that rolls up to me the status of the local tenants the status of the regional tenants the status of I mean, we have knowledge in every space.
So whether it's your boxes or whether it's small shop, we have a general idea of how well, they're performing and our goal as landlords.
Recapture and drive our merchandising mix that effectuate higher sales, but also grows cash flow and if there is an opportunity to recapture call. It a bed bath proactively and replace with a grocer replaced with a T. J Maxx concept replace with a total one.
Fine that's something we will look at yes generally.
Generally we will make these decisions that we have burden.
Look no further than what we did here in 2022, we took back about 300000 square feet of space. This year.
I'm, a purposeful purposeful perspective, and that's already been all leased and we're talking about China I Hope, we're talking about public's we're talking about here Marshalls Homegoods BJ wholesale so that's the that's the recipe and we're going to continue that.
That makes sense and as Brian noted I mean in summary, west we're on offense on Lisa.
Okay, Yeah, I guess I guess bigger picture question on that is it just easier now to recapture it or they are harder to negotiate you have to pay less now that you'd know that there is some.
Companies are clearly, saying, we're going to shut down stores, you may be actually helping them out a little bit to shrink their footprint. So I just wonder if it's materially a little bit.
Hey, Josh.
Never easier.
Some of the tenants.
I wish it was easier to be honest.
Yes.
I think a couple of things.
It's always good where the tenant you can double that and maybe write you a check to get out where we have a tenant lease in hand on the other.
And two.
It's very few tenants in our cash flows are having issues. So we actually I would say 90% of the time.
Try to recapture space and get turned down. So this will be selective this will be with precision and this will be using the highest.
Return that we can get.
Given given capex is fragile.
Okay got it thanks, everyone.
Thanks, so much.
Thank you we have next question from the line of Linda Tsai with Jefferies. Please go ahead.
Hi, Thanks for taking my question, given the 88% retention ratio Youre at 94% occupancy do you think you could get to 95% by year end 'twenty three.
Look I think it's I think it's too early to tell on the on the occupancy front from a from a lease perspective I think there is there is a shot.
It was talking.
With Todd I think there is there is some unknowns right now there are some unknowns.
The best known item for US right now is that signed not commenced.
Which is going to absolutely grow our occupancy and as Brian and I. Both commented on we have several million dollars of leases in negotiation. So that should continue to push that that leased rate.
And I think a couple of things Linda too if you look at.
Our supplemental fish, specifically look at Delray and Broward.
Deals are 60%, 70% leased we have a market leading share.
Share grocer for both.
These are $17 ABR centers that we see growing to mid thirties. So.
Really two special pieces of real estate that are currently low occupancy that youll see a big.
Big increase in that at least occupancy here are short term.
Got it and then it sounds like that $14 million is no pipeline really creates a healthy cushion.
So against that kind of background, how do you think about bad debt for 'twenty, three and would you create a reserve for bed Bath and beyond.
I think it's too early to tell.
Bed Bath and beyond at this point again, we are very happy with with our locations I think Brian commented on his prepared remarks that were.
Those are above average stores, but in the event, we do get them back its low ABR per square foot presents a huge opportunity as far as the bad debt goes this year.
The favorable benefit we got from prior period collections were on track.
To meet our 100 basis points of revenue as well.
What our bad debt bad debt recognition will be for 2022.
I don't expect that to change going into next year absent bed Bath and beyond.
Got it and just one final question for Brian When you talk to retailers how are they thinking about store opening plans as they look to 2024.
Inflationary cost pressure part of their consideration.
I mean, we're looking at I mean, certainly that comes up and I think really having that low ABR half portfolio helps.
We will be able to still drive rent still allow them for healthy occupancy costs.
Given.
Increases in their labor costs.
So it's a meeting of the minds on that and just given the low ABR in the kind of the high quality portfolio. We have I think thats a benefit we're really looking even we're signing leases for 24 and maybe even talk in on some locations for 25 right now Linda So it's really looking out over years, two and Theres been no let down.
At all.
Got it thanks.
Thank you we have next question from the line of <unk> St Juste with Mizuho Securities. Please go ahead.
Hey, there.
Good morning, just.
Just a few follow ups from my end.
Firstly, I guess I wanted to get some clarity on Regal in bed Bath.
Did they pay rent.
I guess that's it.
They've not been September and all of the current Oh.
On the <unk> and what do you expect for November .
They did not pay September rents.
Across all of their other landlords they did pay us October .
And we fully expect them to pay in November and December .
Okay. Thanks, Kevin.
And that's bad.
Bed Bath has paid everything in our current.
Got it got it okay.
And then on the snow pipeline just wanted to get a bit of clarity on the big jump here.
From $14 million from 9 million. Unfortunately, this quarter how much of that is.
Specifically attributable to marry Brickell village trying to understand is that.
The 1 million $1 million.
Of that 14 is Marion vertical so the rest has been organic.
Yes.
I'll give you a bridge from last quarter, we last quarter was about $8 7 million.
End of the second quarter, we had about a $1 million of have commenced during the quarter, which leaves us about $7. Two and then we signed $6 8 million of new leases during the quarter 1 million attributable to MBV, which gets us to that 2014.
That's very helpful and then one more just.
The environment, they will come back to us clearly.
Intelligence, but just curious about the remaining capacity in your JV and your thoughts on deploying capital via the JV here and maybe some opportunistic investments that curious.
What you have what you're currently thinking or if theres anything youre actively looking at.
What type of IRR as minimum you'd be looking for.
Just curious on your views of deploying so that JV capital over the next couple of quarters. Thanks.
Yes. Thanks, So let's start with the net lease platform, we have $1 $1 billion remaining capital to be deployed we feel very good on that cash of of being patient and waiting for times of stress.
So the Tyler and team are building a great pipeline.
We expect even further cap rate.
Mining. So we fully think that this is going to be a great environment to.
Capital, which we do in that world grocery anchored.
Have about 759 remaining capital deployed we talked to GIC all the time.
A lot of conversations going on.
Positively on that platform I would say from.
From an IRR unlevered.
Was call it seven to nine is now double digits, but as I said in my prepared remarks, we're really being patient.
We're waiting for things to settle or waiting for to get some confirmation from the fed.
But with that said, we still are looking in the universe, and just seeing what's trading and trying to apply our data analytics team towards that.
I appreciate it thank you guys.
Thank you we have next question from the line of Mike Mueller with JP Morgan. Please go ahead.
Oh, Hey, I tried to get out the queue. Ed. My question was on where you where you thought you could be active on the investment front, but I guess it didn't didn't work out there so.
I think I'm good. Thank you. Thanks.
Thanks, Mike.
Thank you we have next question from the line of Craig Smith with Bank of America. Please go ahead.
Thank you.
When you think about growing the small shop occupancy where do you think the opportunity lies and local tenants or regional national.
I think it's a combination I think it's probably just some great.
Tailwind with the regional and nationals.
And as you know.
Typical of a deal in.
In St. Louis where it was more of a power center with whole foods, we've added sephora.
We're doing a little lemon deal.
And that was.
Primarily a local small shop tenant that we've made about 80% national.
We're seeing.
Strong regionals and certain parts of Florida, and certainly in Boston. So I think it's going to be a mix, Craig, but I think probably heavier lean towards.
National and regional tenants.
Great and then.
Wonder.
Are you seeing any softening of sales and the hard good categories, we've seen a number of <unk>.
Good retailers take down their 'twenty two guidance and in addition, the.
The U S Department for sales.
So the weakness in the hard good categories.
We're playing close attention to that.
As of now I think it's too early to tell from what our sales data captures.
So we haven't seen any significant.
Boost one way or another in hard goods, but we are certainly seeing the same data that you saw and we're keeping a close eye on that.
Okay. Thank you.
Thank you.
Okay.
Thank you we have next question from the line up Todd Thomas with Keybanc capital markets. Please go ahead.
Yeah.
Yes, hi, thanks.
I just wanted to circle back I guess to the external growth in the investment platform. Brian you mentioned that Unlevered IRR is 7% to 9% are now double digits is that were required returns have moved or was that comment about something else.
And has gic's appetite also slowed or are they looking to remain.
<unk>.
Okay.
Offensive here, perhaps take advantage of the decrease in competition and I guess like how do you manage that relationship with GIC, just given where both of your cost of capitals and maybe required returns.
Patients are.
Yes so.
Really the return isn't required return, that's really where I'm seeing that of kind of this unsettled.
No man's land today.
I think things will settle where we'll be able to understand.
Where those yields should be in the next several months or.
First quarter.
And speaking with GIC.
Their appetite has not slowed there are a lot of conversations occurring with them.
They are obviously very pleased with the returns that we've provided on both platforms and the relationship has gone stronger.
So I think that is more of a.
A wait and see on how we can align.
And really help.
Each other grow the most efficiently and produce the highest.
Returns for our shareholders.
So there is an ongoing conversation.
Okay.
Alright, that's helpful and then.
I just had one other question and apologies if I missed this and you commented, but maybe Mike in terms of.
Sure the holiday season, or post holiday season, and early 'twenty three are there any <unk>.
Known move outs or any potential vacates.
That you're aware of today.
The thing Thats anticipated.
We.
Turning the corner into 'twenty three at this point.
You're going to have your normal seasonal move outs, probably related to small shop that you experience every year, but in terms of any heavy anchor spaces at this point, though.
Okay, Alright, great. That's all thank you.
Tom.
Okay.
Thank you ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back over to Brian Hoffmann, President and CEO for closing remarks.
Would you say.
Thank you operator, our positive third quarter results are a testament to the investments in our business that we have made over the past few years.
Our long term focus innovative approach and investments in people processes and our portfolio have led to a more resilient cash flow that we expect will produce consistent results year in.
And year out.
Thank you all for joining our call. This morning have a wonderful day.
Thank you.
Ladies and gentlemen, this concludes today's conference you may.
Disconnect your lines at this time, thank you for your participation.
Okay.
Yeah.
Ooh.
[music].