Q2 2024 Regency Centers Corp Earnings Call

Operator: Greetings and welcome to Regency Center Corporation's second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Christy McElroy. Thank you. You may begin.

Operator: Greetings and welcome to Regency Cetric Corporation, 2nd quarter, 2024 earnings conference call. At this time, all participants are on a list and only mode.

Greetings and welcome to Regency's After Corporation second quarter 2024 earnings Conference call. At this time, all participants are in a listen only mode.

Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As you remind, this conference is being recorded.

Question and answer session will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

Christy McElroy: I would now like to turn the conference over to your host, Christy McElroy. Thank you, you may begin.

I would now like to turn the conference over to your host Christine Mcelroy.

Speaker Change: Thank you you may begin.

Christy McElroy: Good morning, and welcome to Regency Center's second quarter 2024 earnings conference call. Joining me today are Lisa Palmer, President and Chief Executive Officer, Mike Mas, Chief Financial Officer, Alan Roth, East Region President and Chief Operating Officer, and Nick Wibbenmeyer, West Region President and Chief Investment Officer.

Lisa Palmer: Good morning and welcome to Regency Center, 2nd quarter, 2024 earnings conference call.

Christine Mcelroy: Good morning, and welcome to Regency Centers' second quarter 2024 earnings Conference call. Joining me today are Lisa Palmer, President and Chief Executive Officer, Mike Mas, Chief Financial Officer, Alan Roth East region, President and Chief operating Officer, and Nick with admire West region, President and Chief.

Lisa Palmer: Joining me today are Lisa Palmer, President and Chief Executive Officer; Mike Masch, Chief Financial Officer; Alan Roth, East Region President and Chief Operating Officer; and Nick Wibbenmeyer, West Region President and Chief Investor Officers. As a reminder, today's discussion may contain forward-looking statements about the company's views of future business and financial performance, including forward earnings guidance and future market conditions. These are based on manager's current beliefs and expectations and are subject to various risks and opportunities. It's possible that actual results may differ materially from those suggested by these forward-looking statements we may make. Factors and risks that could cause actual results to differ materially from these statements may be included in our presentations today and are described in more detail in our findings at the SEC.

Christy McElroy: As a reminder, today's discussion may contain forward-looking statements about the company's views of future business and financial performance, including forward earnings guidance and future market conditions. These are based on management's current beliefs and expectations and are subject to various risks and uncertainties. It is possible that actual results may differ materially from those suggested by these forward-looking statements we may make. Factors and risks that could cause actual results to differ materially from these statements may be included in our presentation today and are described in more detail in our SEC filings, specifically in our most recent Form 10-K and 10-Q filings.

Speaker Change: It also as a reminder, today's discussion may contain forward looking statements about the company's views of future business and financial performance, including forward earnings guidance and future market conditions. These are based on management's current beliefs and expectations and are subject to various risks and uncertainties. It is possible that actual results may differ materially from those suggested by these forward.

Looking statements we may make.

Christine Mcelroy: Factors and risks that could cause actual results to differ materially from these statements may be included in our presentation. Today and are described in more detail in our filings with the SEC specifically in our most recent Form 10-K, and 10-Q filings in our discussion today. We will also reference certain non-GAAP financial measures the comparable GAAP financial measures are included in this quarter.

Lisa Palmer: Specifically in our most recent Form 10-K and 10-Q violence. In our discussion today, we will also reference certain non-GAAP financial measures. Comparable gap financial measures are included in this quarter's earnings materials that are posted on our Investor Relations website. Please note that we have also posted a presentation on our website with additional information, including the disclosure related to forward earnings guidance. Our caution on forward-looking statements also applies to these presentation materials.

Christy McElroy: In our discussion today, we will also reference certain non-GAAP financial measures. Comparable GAAP financial measures are included in this quarter's earnings materials, which are posted on our Investor Relations website. Please note that we have also posted a presentation on our website with additional information, including disclosures related to Forward Earnings Guidance. Our caution on forward-looking statements also applies to these presentation materials.

Earnings materials, which are posted on our Investor Relations website.

Speaker Change: Please note that we have also posted a presentation on our website with additional information, including disclosures related to forward earnings guidance.

Lisa: Our caution on forward looking statements also apply to these presentation materials finally, given the number of participants we have on the call today, we kindly and respectfully ask that you limit your questions to one and then rejoin the queue. If you have any additional follow up questions. This will allow everyone who'd like to ask a question an opportunity to do so Lisa.

Christy McElroy: Finally, given the number of participants we have on the call today, we kindly and respectfully ask that you limit your questions to one, and then rejoin the queue if you have any additional follow-up questions. This will allow everyone who'd like to ask a question an opportunity to do so. Lisa? Thank you.

Lisa Palmer: Finally, given the number of participants we have on the call today, we kindly and respectfully ask that you limit your questions to one and then rejoin the Q if you have any additional follow-up questions. That's all about everyone who's like to ask a question and opportunity to do so.

Lisa Palmer: Lisa? Thank you for being good morning everyone. We had another great quarter driven by continued strong operating fundamentals and active and prudent capital allocation. While we recognize that the macro environment remains uncertain with mixed economic signals and inflationary pressures on consumers, our business continues to show strength. Consumers may be shopping with a new level of price awareness, but that can be a benefit to our high quality centers and our high quality tenants given a focus on necessity, service, convenience, and value. Sales and traffic trends remain steady, and leasing demand continues to be strong. We are taking advantage of this solid and consistent tenant demand to drive right growth and leasing activity with strong new and existing tenants.

Lisa Palmer: Thank you Christy and good morning everyone. We had another great quarter driven by continued strong operating fundamentals and active and prudent capital allocations. While we recognize that the macro environment remains uncertain with mixed economic signals and inflationary pressures on consumers, our business continues to show strength. Consumers may be shopping with a new level of price awareness, but that can be a benefit to our high-quality centers and our high-quality tenants given a focus on necessity, service, convenience, and value.

Lisa: Thank you Christy and good morning, everyone. We had another great quarter, driven by continued strong operating fundamentals and active and prudent capital allocation.

Lisa: While we recognize that the macro environment remains uncertain with mixed economic signals and inflationary pressures on consumers our business continues to show strength consumer.

Lisa: Consumers may be shopping with a new level of price awareness, but that can be a benefit to our high quality centers and our high quality tenants given our focus on necessity service convenience and value.

Lisa Palmer: Sales and traffic trends remain steady, and leasing demand continues to be strong. We are taking advantage of this solid and consistent tenant demand to drive rent growth and leasing activity with strong new and existing tenants. This is evidenced by our record shop lease rate and our sizable S&O pipeline, which will provide momentum in lease commencement into 2025.

Lisa: Sales and traffic trends remained steady in leasing demand continues to be strong.

Lisa: We are taking advantage of the solid and consistent tenant demand to drive rent growth and leasing activity with strong new and existing tenants. This was evidenced in our record shop lease rate and our sizeable F. N O pipeline. This will provide momentum and lease commencement in 2025.

Lisa Palmer: This is evidence in our record shop, least right in our sizeable SNO pipeline. This will provide momentum and lease commencement into 2025. Our continued leasing success is a testament to the strength of agencies' high quality grocery anchor centers and strong suburban trade areas with limited new and available supply. Our value creation pipeline, also supported by the strong tenant demand and focus on high quality assets and demographically compelling areas, is one of the most exciting aspects of our business today and one that truly sets agency apart. Our team continues to make meaningful progress sourcing new projects with another $250 million with expected starts in 2024, as well as executing on and delivering our existing pipeline.

Lisa Palmer: Our continued leasing success is a testament to the strength of Regency's high-quality, grocery-anchored centers and strong suburban trade areas with limited new and available supply. Our value creation pipeline, also supported by strong tenant demand and focus on high-quality assets in demographically compelling areas, is one of the most exciting aspects of our business today and one that truly sets Regency apart. Our team continues to make meaningful progress sourcing new projects with another $250 million with expected starts in 2024, as well as executing on and delivering our existing pipelines.

Lisa: Our continued leasing success is a testament to the strength of Regency's high quality grocery anchored centers and strong suburban trade areas with limited new N available supply.

Lisa: Our value creation pipeline also supported by the strong tenant demand and focus on high quality assets and debit graphically compelling areas.

Speaker Change: It's one of the most exciting aspects of our business today and one that truly sets agency apart.

Our team continues to make meaningful progress sourcing new projects with another $250 million of expected starts in 2024, as well as executing on and delivering our existing pipeline the strength of regency's platform and ability to self fund our program with free cash flow has enabled our long track record of.

Lisa Palmer: The strength of Regency's platform and ability to self-fund our program with free cashflow had enabled our long track record of success. We also continue to acquire shopping centers when able to, that are creative to our quality growth and earnings. As previously disclosed, we acquired Compo Shopping Center in Westport, Connecticut, in May, and we are currently under contract to purchase an additional asset in the Northeast. I can't stress enough the importance of our balance sheet strength and liquidity position in providing us with an ability to be opportunistic across the spectrum of capital allocation strategies, which is why, in addition to sourcing select high quality, high growth acquisition opportunities at upper single-digit IRRs, we were also able to take advantage of the meaningful disconnect in public and private market values this past quarter with the execution of a $200 million share we purchased.

Lisa Palmer: Our strength in Regency's platform and ability to self-fund our program with free cash flow have enabled our long-term track record of success. We also continue to acquire shopping centers, when able to, that are complementary to our quality, growth, and earnings. As previously disclosed, we acquired Compo Shopping Center in Westport, Connecticut, in May, and we are currently under contract to purchase an additional asset in the Northeast.

Lisa: Yes.

Lisa: We also continue to acquire shopping centers weren't able to that are accretive to our quality growth and earnings.

Lisa: Previously disclosed we acquired combo shopping center in Westport, Connecticut in May we're currently under contract to purchase an additional asset in the northeast.

Lisa Palmer: I can't stress enough the importance of our balance sheet strength and liquidity position providing us with an ability to be opportunistic across the spectrum of capital allocation strategies, which is why, in addition to sourcing select high-quality, high-growth acquisition opportunities at upper single-digit IRRs, we were also able to take advantage of a meaningful disconnect in public and private market values this past quarter with the execution of a $200 million share repurchase. As many of you are well aware, along with our standards of quality and balance sheet strength, corporate responsibility is also a foundational strategy for Regency.

Lisa: I can't stress enough the importance of our balance sheet strength and liquidity position and providing us with an ability to be opportunistic across the spectrum of capital allocation strategies, which is why in addition to sourcing select high quality high growth acquisition opportunities at upper single digit IRR.

Lisa: We were also able to take advantage of a meaningful disconnect in public and private market values. This task order with the execution of a $200 million share repurchase.

Lisa Palmer: As many of you are well aware, along with our standards of quality and balance sheet strength, corporate responsibilities also have been a foundational strategy for Regency. This past quarter, we published our annual corporate responsibility report highlighting our 2023 achievements as well as our future goals and strategy. Our best-in-class program is evident in the progress we've made toward our goals, but also in the recognition we receive from third parties, including ranking sixth overall and first in the real estate industry for Newsweek's Most Responsible Company's list, and our continued recognition by Gresby for sustainability and disclosure leadership in our sector.

Lisa: As many of you are well aware along with our standards of quality and balance sheet strength corporate responsibilities also affirm the foundational strategy for regency.

Lisa Palmer: This past quarter, we published our annual corporate responsibility report highlighting our 2023 achievements, as well as our future goals and strategies. Our best-in-class program is evident in the progress we've made toward our goals, but also in the recognition we receive from third parties, including ranking sixth overall and first in the real estate industry on Newsweek's Most Responsive Companies list and our continued recognition by Gresby for sustainability and disclosure leadership in our sector.

Lisa: This past quarter, we published our annual corporate responsibility report, highlighting our 2023 achievements as well as our future goals and strategy.

Lisa: Our best in class program is evident in the progress we've made toward our goals, but also in the recognition we received from third parties, including ranking sixth overall and first in the real estate industry for Newsweek's, most responsible companies list and our continued recognition by grasp for sustainability and disclosure leadership in our sector.

Lisa Palmer: I appreciate the efforts of all Regency team members in helping us achieve these important accomplishments.

Lisa Palmer: I appreciate the efforts of all Regency team members in helping us achieve these important accomplishments. In closing, now that we are more than halfway through the year, with the strength in leasing activity and results that we've seen thus far, we are raising our eye level and our full-year guidance range. Mike will go into more detail, but we've been able to move the needle on several fronts, including same property NOI, development activity, and accretive capital allocation.

Lisa: I appreciate the efforts of all regency team members in helping us achieve these important accomplishments.

Lisa Palmer: In closing, now that we are more than halfway through the year, with the strengthened leasing activity and results that we've seen thus far, we are raising our eye level and our full year guidance range. Michael will go into more detail, but we've been able to move the needle on several fronts, including same property NLI, development activity, and a creative capital allocation. I want to reiterate the importance of Regency strategic competitive advantages, which position us favorably to continue to outperform over the long term, as we have historically. These advantages include our high quality assets and strong trade areas with favorable demographics, the strength of our operating platform and experience and talent of our people, a value creation pipeline that gives us more leverage to drive growth, and the balance sheet strength that allows us to opportunistically allocate capital, which we did very strategically in the second quarter.

Lisa: In closing now that we are more than halfway through the year.

Lisa: With a strengthened leasing activity and results that we've seen thus far we are raising our eye level and our full year guidance range, Mike will go into more detail, but we've been able to move the needle on several fronts, including same property NOI development activity and accretive capital allocation I want to reiterate the importance of regency's strategic.

Lisa Palmer: I want to reiterate the importance of Regency's strategic competitive advantages, which position us favorably to continue to outperform over the long term as we have historically. These advantages include our high quality assets and strong trade areas with favorable demographics. The strength of our operating platform, the experience and talent of our people, a value creation pipeline that gives us more levers to drive growth, and the balance sheet strength that allows us to opportunistically allocate capital, which we did very strategically in the second quarter.

Mike: Competitive advantages, which position us favorably to continue to outperform over the long term as we have historically. These advantages include our high quality assets and strong trade areas with favorable demographics, the strength of our operating platform and experience and talent of our people a value creation pipeline that gives us more.

Lisa: Our levers to drive growth in the balance sheet strength that allows us to opportunistically allocate capital, which we did very strategically in the second quarter Alan.

Michael Mas: Thank you, Lisa, and good morning, everyone. We continue to have great leasing and operating success, reflecting the positive tenant demand environment for high quality shopping centers and strong trade areas. We're seeing this robust demand from both new and existing tenants in a wide array of categories, including grocers, restaurants, health and wellness, off-price, and personal services. Our success is evident in the continued depth and momentum in our leasing pipeline, as well as in our ability to drive rents and occupancy higher and improve our expense recovery rate, all while still maintaining judicious capital spend. During the quarter, we held our same property percent leased at 95.8%, while increasing our same property percent commenced by 10 basis points to 92.3%.

Alan Roth: Alan? Thank you.

Lisa: Lisa and good morning, everyone.

Lisa: We continue to have great leasing and operating success, reflecting the positive tenants demand environment for high quality shopping centers and strong trade areas.

Alan Roth: Thank you, Lisa, and good morning everyone. We continue to have great leasing and operating success, reflecting the positive tenant demand environment for high-quality shopping centers in strong trade areas. We're seeing this robust demand from both new and existing tenants in a wide array of categories, including grocers, restaurants, health and wellness, off-price, and personal services. Our success is evident in the continued depth and momentum in our leasing pipeline, as well as in our ability to drive rent and occupancy higher and improve our expense recovery rate, all while still maintaining judicious capital spend.

Speaker Change: We're seeing this robust demand from both new and existing tenants in a wide array of categories, including grocers restaurants health and wellness off price and personal services.

Lisa: Our success is evidenced in the continued depth and momentum in our leasing pipeline.

Lisa: As well as in our ability to drive rents and occupancy higher and improve our expense recovery rate, all while still maintaining judicious capital spend.

Alan Roth: During the quarter, we held our same property percent leased at 95.8% while increasing our same property percent begun by 10 basis points to 92.3%. Our S&O pipeline sits at 350 basis points and represents approximately $49 million of incremental base rent. As we've discussed previously, the timing and commencement of this pipeline will largely impact the fourth quarter of 2024 and into 2025.

Lisa: During the quarter, we held our same property percent leased at 95, 8%, while increasing our same property percent commenced by 10 basis points to 92, 3%. Our S. N O pipeline sits at 350 basis points and represents approximately $49 million of incremental base rent.

Michael Mas: Our SNO pipeline sits at 350 basis points and represents approximately $49 million of incremental base rents. As we discussed previously, the timing and commencement of this pipeline will largely impact the fourth quarter of 2024 and into 2025. Notably, beyond our signed pipeline of exciting retailers, we have another 1.3 million square feet of leases in negotiation. In the quarter, we were also able to drive strong blended cash rent spreads of more than 9 percent. Gap and net effective rent spreads were in the upper teens, demonstrating our ability not only to drive strong market increases, but also continued success negotiated embedded contractual rent steps in nearly 100 percent of our leases.

Lisa: As we've discussed previously the timing and commencement of this pipeline will largely impact the fourth quarter of 2024 and into 2025.

Nick Wibbenmeyer: Notably, beyond our signed pipeline of exciting retailers, we have another 1.3 million square feet of leases in negotiation. In the quarter, we were also able to drive strong blended cash rent spreads of more than nine percent. Gap and Net Effective Rent Spreads were in the upper teens, demonstrating our ability not only to drive strong mark-to-market increases but also continued success negotiating embedded contractual rent steps in nearly 100% of our leases. Our average rent step on all leasing activity in the quarter was 2%, but importantly, we achieved a record high of 2.7% rent steps in new lease transactions.

Lisa: Notably beyond our signed pipeline of exciting retailers, we have another one 3 million square feet of leases in negotiation.

Lisa: In the quarter, we were also able to drive strong blended cash rent spreads of more than 9%.

Lisa: GAAP and net effective rent spreads were in the upper teens, demonstrating our ability not only to drive strong mark to market increases, but also continued success negotiated embedded contractual rent steps and nearly 100% of our leases.

Michael Mas: Our average rent steps on all leasing activity in the quarter was 2 percent, but importantly we achieved a record high of 2.7 percent rent steps in new lease transactions. Collectively, these efforts drove same property and a wide growth of 3.3 percent in the second quarter, excluding term fees and COVID period reserve collections, while our base rent growth contribution remained very healthy at 2.9 percent.

Lisa: Our average rent steps on all leasing activity in the quarter was 2%, but importantly, we achieved a record high of $2 seven per cent rent steps in new lease transactions.

Nick Wibbenmeyer: Collectively, these efforts drove same property NOI growth of 3.3% in the second quarter, excluding term fees and COVID period reserve collections, while our base rent growth contribution remained very healthy at 2.9%. Before turning the call over to Nick, I wanted to address the recent Kroger and Albertsons announcement regarding the 579 stores they intend to divest to CNS Wholesale Grocers if a merger occurs. Regency has 11 owned locations on the CNS list out of the 104 combined Kroger and Albertsons locations in our portfolio.

Lisa: Collectively these efforts drove same property NOI growth of three 3% in the second quarter, excluding term fees and Covid period reserve collections, while our base rent growth contribution remained very healthy at two 9%.

Michael Mas: Before turning the call over to Nick, I wanted to address the recent Prover and Albertsons announcement regarding the 579 stores they intend to divest to CNS Wholesale Grocers if a merger occurs. Regency has 11 owned locations on the CNS list out of the 104 combined Prover and Albertsons locations in our portfolio. Further detail will be provided as we learn more, but regardless of the outcome of the proposed merger, we are very comfortable with the underlying lease obligations, and we continue to feel great about the quality of our real estate for all of these locations. In closing, as our portfolio occupancy approaches prior peak levels, combined with limited new high quality supply in the strong trade areas in which we operate, our state is becoming more valuable.

Speaker Change: Before turning the call over to Nick I wanted to address the recent Kroger and Albertsons announcement regarding the 579 stores they intend to divest to CNS wholesale grocers, if a merger occurs regions.

Speaker Change: Regency has 11 owned locations on the CNS lift out of the 104, combined Kroger and Albertsons locations in our portfolio.

Nick Wibbenmeyer: Further detail will be provided as we learn more, but regardless of the outcome of the proposed merger, we are very comfortable with the underlying lease obligation, and we continue to feel great about the quality of our real estate for all of these locations. In closing, as our portfolio occupancy approaches prior peak levels, combined with limited new high-quality supply and the strong trade areas in which we operate, our space is becoming more valuable.

Nick: Further detail will be provided as we learn more but regardless of the outcome of the proposed merger. We are very comfortable with the underlying lease obligations and we continue to feel great about the quality of our real estate for all of these locations.

Lisa: In closing as our portfolio occupancy of purchase prior peak levels combined with limited new high quality supply and a strong trade areas in which we operate our states is becoming more valuable the strength in our leasing pipeline remains unabated driven by continued appetite for retailers to expand.

Nicholas Wibbenmeyer: The strength in our leasing pipeline remains unavated, driven by continued appetite for retailers to expand. Our leasing and operating teams are firing on all cylinders, leveraging the current environment to deliver what we believe will be long term sustainable performance in the years ahead, Nick.

Nick Wibbenmeyer: The strength in our leasing pipeline remains unabated, driven by the continued appetite for retailers to expand. Our leasing and operating teams are firing on all cylinders, leveraging the current environment to deliver what we believe will be long-term, sustainable performance in the years ahead.

Lisa: Our leasing and operating teams are firing on all cylinders leveraging the current environment to deliver what we believe will be long term sustainable performance in the years ahead.

Nicholas Wibbenmeyer: Thank you, Alan.

Nick Wibbenmeyer: Thank you, Alan. Good morning, everyone.

Lisa: Nick.

Nick: Thank you Alan Good morning, everyone. We remain very active growing and executing on our value creation pipeline, sorry, $40 million of new redevelopment projects in the second quarter at yields exceeding 10%.

Nicholas Wibbenmeyer: Good morning, everyone. We remain very active growing and executing on our value creation pipeline, starting 40 million dollars of new redevelopment projects in the second quarter and yields exceeding 10%. Additionally, subsequent quarter, and we started an exciting new ground-up development project in Houston called Jordan Ranch. This 160,000 square foot HB entered center will serve as the retail component within a thriving master plan community. We are developing the center and a joint venture with the master plan developer, which region fees investments being approximately $23 million, bringing our year to date starts to more than $140 million.

Nick Wibbenmeyer: We remain very active growing and executing on our value creation pipeline, starting $40 million of new redevelopment projects in the second quarter at yields exceeding 10%. Additionally, subsequent to Quarter End, we started an exciting new ground-up development project in Houston called the Jordan Ranch. This 160,000 square foot ATB-anchored center will serve as the retail component within a thriving Master Plan community. We are developing the center in a joint venture with the Master Plan developer, with Regency's investment being approximately $23 million, bringing our year-to-date starts to more than $140 million.

Speaker Change: Additionally, subsequent to quarter end, we started an exciting new ground up development project in Houston Gulf Jordan Ranch. This 160000 square foot HEB anchored center will serve as the retail component within a thriving master planned community. We were developing the center in a joint venture with the Master plan developer.

Speaker Change: Regency's investments being approximately $23 million, bringing our year to date starts to more than $140 million as we've discussed on prior calls Masterplan developers continue to appreciate the value and benefits of bringing regency and experienced developer owner and operator of high quality retail centers into their projects at the same.

Nicholas Wibbenmeyer: As we discussed on prior calls, master plan developers continue to appreciate the value and benefits of bringing region fee and experience developer owner and operator high quality retail centers into their project. At the same time, we and our tenants recognize the benefits of developing a very favorite shopping centers directly adjacent to new high quality suburban residential community. We also continue to make great progress executing on our end process pipeline, which now totaled nearly $580 million. Leasing activity remains robust, with projects currently more than 90% of these, have limited returns exceeding 9%. During two transactions, we have seen a recent pick up in activity in the private markets, as well as the forbidding pools.

Nick Wibbenmeyer: As we've discussed on prior calls, Master Plan developers continue to appreciate the value and benefits of bringing Regency, an experienced developer, owner, and operator of high-quality retail centers, into their projects. At the same time, we and our tenants recognize the benefits of developing our grocery and shopping centers directly adjacent to new, high-quality suburban residential communities. We also continue to make great progress executing on our in-process pipeline, which now totals nearly $580 million. Leasing activity remains robust, with projects currently more than 90% leased at blended returns exceeding 9%.

Speaker Change: Time, we and our tenants recognize the benefits of developing a grocery anchored shopping centers directly adjacent to new high quality suburban residential communities.

Speaker Change: We also continue to make great progress executing on our in process pipeline, which now totals nearly $580 million.

Speaker Change: Leasing activity remains robust with projects currently more than 90% leased at blended returns exceeding 9% turning to transactions. We have seen a recent pickup in activity in the private markets as well as deeper bidding pools. Our teams are actively underwriting opportunities that fit our investment strategy as well as return growth and accretion requirements.

Nick Wibbenmeyer: Turning to transactions, we have seen a recent pickup in activity in the private markets, as well as deeper bidding pools. Our teams are actively underwriting opportunities that fit our investment strategy, as well as return, growth, and accretion requirements. In May, we closed on the purchase of Compo Shopping Center in Westport, Connecticut, which is adjacent to our Trader Joe's-anchored Compo Acres Center.

Nicholas Wibbenmeyer: Our teams are actively underwriting opportunities that fit our investment strategy, as well as return, growth, and accretion requirements. In May, we close on the purchase of Combo Shopping Center and Westport, Connecticut, which is adjacent to our Trader Joe's-anchored Combo Acres Center. We also currently have a grocer-anchored center in the Northeast region under contract, which you'll know we've included in our updated acquisition guidance, and on which we look forward to sharing more details post-closing. While cap rates have remained relatively low for high quality centers, and compelling opportunities that high single digit IRRs are a limited opportunity set in today's market, we have been able to source these select assets where we believe we can drive a creation both to earnings, as well as to our long-term growth rate.

Speaker Change: Got.

Lisa: In May we closed on the purchase of Cabo shopping center in Westport, Connecticut, which is adjacent to our trader Joe's anchored compo acres.

Nick Wibbenmeyer: We also currently have a grocery-anchored center in the Northeast region under contract, which you'll note we've included in our updated acquisition guidance and on which we look forward to sharing more details post-close. While cap rates have remained relatively low for high-quality centers, and compelling opportunities with high single-digit IRRs are a limited opportunity set in today's market, we have been able to source these select assets where we believe we can drive accretion both to earnings as well as to our long-term bear trade.

Lisa: We also currently have a grocery anchored center in the northeast region under contract, which you'll note. We've included in our updated acquisition guidance and on which we look forward to sharing more details post closing.

Lisa: While cap rates have remained relatively low for high quality centers and compelling opportunities at a high single digit Irr's are limited opportunity set in today's market. We have been able to source. These select assets, where we believe we can drive accretion both the earnings as well as to our long term growth rate.

Nicholas Wibbenmeyer: Looking ahead, our teams remain focused on continuing to source high quality incremental investment opportunities, including a creative acquisition like these, as well as further building our value creation pipeline. It's true that it is difficult to find and execute new ground-up development opportunities at a creative return, but this is where we believe our ability to create value is a meaningful differentiator for Regency. Our national platform and deep relationships combine with a low cost of capital, liquidity, and balancing strength, and enable us to be one of the only developers right now who can fund projects and execute at scale.

Nick Wibbenmeyer: Looking ahead, our teams remain focused on continuing to source high-quality incremental investment opportunities, including in creative acquisitions like these, as well as further building our value creation pipeline. It's true that it is difficult to find and execute new ground-up development opportunities at accretive returns, but this is where we believe our ability to create value is a meaningful differentiator for Regency. Our national platform and deep relationships, combined with our low cost of capital, liquidity, and balance sheet strength, enable us to be one of the only developers right now who can fund projects and execute at scale.

Lisa: Looking ahead, our teams remain focused on continuing to source high quality incremental investment opportunities, including accretive acquisitions like these as well as further building our value creation pipeline.

Lisa: It's true that it is difficult to find and execute new ground up development opportunities at accretive returns, but this is where we believe our ability to create value as a meaningful differentiator for regency.

Speaker Change: Our national platform and deep relationships combined with our low cost of capital liquidity and balance sheet strength enable us to be one of the only developers right now you can pump projects and execute at scale.

Nicholas Wibbenmeyer: You've heard us talk about our objective of starting more than $1 billion of development and redevelopment projects over the next five years.

Nick Wibbenmeyer: You've heard us talk about our objective of starting more than $1 billion of development and redevelopment projects over the next five years. With $250 million of projects started in 2023 and another $250 million planned to start in 2024, we are confident in our visibility toward achieving this goal.

Speaker Change: You've heard us talk about our objective of starting more than $1 billion of development and redevelopment projects over the next five years.

Nicholas Wibbenmeyer: With $250 million, a project started in 2023, and another $250 million plan to start in 2024, we are confident in our visibility to achieving this goal.

Speaker Change: With $250 million of projects started in 2023, and another 250 million planned to start in 2024, we are confident in our visibility to achieving this goal.

Michael Mas: Mike. Thank you, Nick, and good morning, everyone. For the second quarter, we reported May read FFO of $1.6 per share, core operating earnings of $1.2 per share, and same property and a wide growth, excluding term fees and COVID period reserve collections of 3.3%. During the quarter, recognizing the meaningful disconnect between public and private market pricing, we executed on the opportunity to repurchase approximately $3.3 million shares for $200 million. Representing an average price of just over $60 per share. We bought our shares at an implied cap rate of roughly 7%, compared to where we are seeing private market values today for high quality, grocery anchored centers in the 5.5 to 6.5% range, sometimes even in the low cost.

Lisa: Mike.

Mike Mas: Thank you, Nick. And good morning, everyone.

Mike: Thank you Nick and good morning, everyone.

Mike Mas: For the second quarter, we reported May rate FFO of $1.06 per share, core operating earnings of $1.02 per share, and same property NOI growth, excluding term fees and COVID period reserve collections of 3.3%. During the quarter, recognizing the meaningful disconnect between public and private market pricing, we executed on the opportunity to repurchase approximately 3.3 million shares for $200 million, representing an average price of just over $60 per share. We bought our shares at an implied cap rate of roughly 7%, which is compared to where we are seeing private market values today for high quality grocery-anchored centers in the five and a half to six and a half percent range, sometimes even in the low five.

Mike: For the second quarter, we reported NAREIT episodes of $1 six per share core operating earnings of $1 two per share and same property NOI growth, excluding term fees and Covid period reserve collections of three 3%.

Speaker Change: During the quarter, recognizing a meaningful disconnect between public and private market pricing, we executed on the opportunity to repurchase approximately $3 3 million shares for $200 million, representing an average price of just over $60 per share.

Mike: We bought our shares at an implied cap rate of roughly 7%.

Mike: Compared to where we are seeing private market values today for high quality grocery anchored centers and a five and a half to six 5% range, sometimes even in the low fives.

Michael Mas: This opportunistic investment was a created to earnings and was afforded to us by our strong balance sheet and liquidity position. Importantly, we remain well within our strategic leverage range, within expectations in the end of year, around the midpoint of our 5 to 5.5 times, met that and preferred to either target. We also maintain flexibility to continue sourcing new, creative investment opportunities, including redevelopments, new ground up developments, and acquisitions.

Mike Mas: This opportunistic investment was accreted to earnings and was afforded to us by our strong balance sheet and liquidity position. Importantly, we remain well within our strategic leverage range with an expectation to end the year around the midpoint of our five to five and a half times net debt and preferred to EBITDA target. We also maintain flexibility to continue sourcing new accretive investment opportunities, including redevelopments, new ground-up developments, and acquisitions. Turning to our forward guidance, I'll refer you to the details on slides five through six in our earnings presentation and highlight some key changes.

Lisa: This opportunistic investment was accretive to earnings and it was afforded to us by our strong balance sheet and liquidity position.

Lisa: Shortly we remain well within our strategic leverage range with an expectation to end the year around the midpoint of our five to five and a half times net debt and preferred to EBITDA target.

Lisa: We also maintain flexibility to continue sourcing new accretive investment opportunities, including Redevelopments, new ground up developments and acquisitions.

Michael Mas: Turning to our forward guidance, I will refer you to the details on slides 5 through 6 in our earnings presentation. And highlight some key change. We increased our core operating earnings midpoint by three cents per share, which now implies close to 4% growth this year at the midpoint, excluding the COVID period of those collections in 2023. As we show on slide six in the presentation, this increase is driven in effectively equal parts by a 25 basis plain increase in our same property and a lot growth range now at two and a quarter to two and three quarters percent.

Lisa: Turning to our forward guidance I'll refer you to the details on slides five through six in our earnings presentation and highlight some key changes.

Mike Mas: We increased our core operating earnings midpoint by $0.03 per share, which now implies close to 4% growth this year at the midpoint, excluding the COVID period reserve collections in 2023. As we show on slide six in the presentation, this increase is driven in effectively equal parts by a 25 basis point increase in our same property NOI growth range, now at two and a quarter to two and three quarters percent. An increase in expectations of non-same property NOI, largely related to accelerated contributions from ground-up development and the positive impact of capital allocation activity, net of financing, including the share repurchases I've discussed previously.

Lisa: We increased our core operating earnings midpoint by <unk> <unk> per share, which now implies close to 4% growth. This year at the midpoint, excluding the Covid period reserve collections in 2023.

Lisa: As we show on slide six in the presentation. This increase was driven and effectively equal parts by.

Lisa: A 25 basis point increase in our same property NOI growth range now at two in a quarter or two and three quarters percent.

Michael Mas: An increase in expectations of non-same property and a lot larger related to accelerated contributions from ground up developments and the positive impact of capital allocation activity, net of financing, including the share purchases I discussed previously. We also increased our neighborhood at the full range by five cents per share at the midpoint, or an incremental two cents above our core operating earnings revision, matching the increase in our guidance for non-cash items. As a reminder for modeling purposes, as you think about the mechanics of our interest expense and interest income for the balance of the year, recall that much of the proceeds from our January bond offering were parked in similar yielding deposit accounts as we awaited the $250 million during maturity date.

Lisa: An increase in expectations of non same property NOI largely related to accelerated contributions from ground up developments.

Lisa: And the positive impact of capital allocation activity net of financing, including the share repurchases I discussed previously.

Mike Mas: We also increased our negative FFO range by 5 cents per share at the midpoint, or an incremental 2 cents above our core operating earnings provision, matching the increase in our guidance for non-cash items. As a reminder, for modeling purposes, as you think about the mechanics of our interest expense and interest income for the balance of the year, recall that much of the proceeds from our January bond offering were parked in similar yielding deposit accounts as we awaited the $250 million June maturity date. Therefore, the impact of refinancing this debt at a higher rate will come through earnings in the second half of this year.

Lisa: We also increased our neighborhood. That's also arranged by five cents per share at the midpoint or an incremental <unk> <unk> above our core operating earnings revision matching the increase in our guidance for noncash items.

Lisa: As a reminder for modeling purposes, as you think about the mechanics of our interest expense and interest income for the balance of the year.

Lisa: Recall that much of the proceeds from our January bond offering with parking similar yielding deposit accounts as we awaited the $250 million June maturity date.

Michael Mas: Therefore, the impact of finance in this at a higher rate will come through earnings in the second half of this year.

Lisa: Therefore, the impact of the refinancing this debt at a higher rate will come through earnings in the second half of this year.

Michael Mas: Looking beyond your end, we continue to point to the embedded growth elements we see over the next 18 to 24 months coming from our leasing and redevelopment progress. As Alan mentioned, our SNO pipeline fit at 350 basis points, representing approximately $49 million of annual base rent, of which about 65% is scheduled to commence by the end of this year. As these lease commencements are weighted to the fourth quarter, the resulting NOI growth will largely occur next year. And part of this commencement is within our redevelopment pipeline, where we continue to expect an outside benefit to same property NOI growth in 2025 from delivering completed projects, with the positive contribution likely to exceed 100 basis points, which is double what we would have experienced in past normal years.

Mike Mas: Looking beyond year end, we continue to point to the embedded growth elements we see over the next 18 to 24 months, coming from our leasing and redevelopment progress. As Alan mentioned, our S&O pipeline sits at 350 basis points, representing approximately $49 million of annual base rent, of which about 65% is scheduled to commence by the end of this year. As these lease commencements are weighted to the fourth quarter, the resulting NOI growth will largely occur next year.

Lisa: Looking beyond year end, we continue to point to the embedded growth elements, we see over the next 18 to 24 months coming.

Lisa: Coming from our leasing and redevelopment progress.

Lisa: As Alan mentioned, our S. N O pipeline sits at 350 basis points, representing approximately $49 million of annual base rent of which about 65% are scheduled to commence by the end of this year.

Alan: As these lease commencements are weighted to the fourth quarter, the resulting in NOI growth will largely occur next year.

Mike Mas: And part of this commencement is within our redevelopment pipeline, where we continue to expect an outsized benefit to same property NOI growth in 2025 from delivering completed projects, with a positive contribution likely to exceed 100 basis points, which is double what we would have experienced in past normal years. Finally, we continue to be very proud of our sector-leading balance sheet and equity position, which provides Regency with a cost of capital advantage and the ability to invest opportunistically.

Speaker Change: And part of this commencement is within our redevelopment pipeline, where we continue to expect an outsized benefit to same property NOI growth in 2025 from delivering completed projects with a positive contribution likely to exceed a 100 basis points, which is double what we would have experienced in past normal years.

Michael Mas: Finally, we continue to be very proud of our sector leasing balance sheet and liquidity position, which provides urgency with the cost of capital advantage and the ability to invest opportunistically. Our debt is nearly all fixed rate. Our weighted average maturity is close to seven years. As we remain within our targeted level of range of five to five and a half times net debt and prefer the debt, and we expect to continue generating free cash flow of more than $160 million annually. Supported by our financial position, we often reference the available options within our capital allocation toolbox that we utilize for various reasons and at different times.

Lisa: Finally, we continue to be very proud of our sector, leading balance sheet and liquidity position.

Speaker Change: Which provides regency, what the cost of capital advantage and the ability to invest opportunistically.

Mike Mas: Our debt is nearly all fixed rate, our weighted average maturity is close to 7 years, we remain within our targeted leverage range of 5 to 5.5 times net debt in preferred debentures, and we expect to continue generating free cash flow of more than $160 million annually. Supported by our financial position, we often reference the available options within our capital allocation toolbox that we utilize for various reasons and at different times. And in the second quarter, we had the unique opportunity to purposefully employ nearly all of these tools successfully and aggressively.

Speaker Change: That is nearly all fixed rate our weighted average maturity is close to seven years, we remain within our targeted leverage range of five to five and a half times net debt and preferred to EBITDA and we expect to continue generating free cash flow of more than $160 million annually.

Speaker Change: Supported by our financial position, we often reference it.

Speaker Change: Available options within our capital allocation tool box that we utilize for various reasons and at different times.

Michael Mas: And in the second quarter, we had a unique opportunity to purposefully employ nearly all of these tools successfully and creatively, from leasing to operations, to investments, to capital allocation and balance sheet management, wrapped together with an increased outlook on current year earnings, regions whose unequal strategic advantages were on full display.

Speaker Change: And in the second quarter, we had a unique opportunity to purpose will employ nearly all of these tools successfully and accretively.

Mike Mas: From leasing, to operations, to investments, to capital allocation and balance sheet management, wrapped together with an increased outlook on current year earnings, Regency's unequaled strategic advantages were on full display. With that, we look forward to taking your questions.

Speaker Change: From leasing to operations to investments to capital allocation and balance sheet management wrapped together with an increased outlook on current year earnings Regency's unequal strategic advantages were on full display.

Operator: With that, we look forward to taking the questions.

Speaker Change: With that we look forward to taking your questions.

Operator: Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone.

Operator: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. As a reminder, we ask that you please limit yourself to one question and repeat if necessary.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session.

Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad.

Operator: on Keypad. As a reminder, we ask you please limit to one question and recue if necessary. A confirmation to help indicate your line is in the question queue. You may press start two if you like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the store keys.

Speaker Change: As a reminder, we ask that you please limit to one question and re queue if necessary.

Operator: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star 2.

Speaker Change: A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Michael Goldsmith: One moment, please, while we poll for questions. Our first question comes from Michael Goldsmith with UBS. Please proceed with your question.

Operator: One moment, please, while we poll for questions.

Michael Goldsmith: Our first question comes from Michael Goldsmith with UBS. Please proceed with your question. Good morning. Thanks for taking my question. From a capital allocation perspective, you kind of did it all in the past quarter. You bought, you sold, you repurchased stock, and you started a ground up development.

Speaker Change: Our first question comes from Michael Goldsmith with UBS. Please proceed with your question.

Lisa Palmer: Good morning. Thanks a lot for taking my question. From a capital allocation perspective, you kind of did it all in the past quarter. You bought, you sold, you repurchased stock, and you started a ground-up development. Can you talk a little bit about your capital allocation priorities and maybe just touch on what the cap rates are in the acquisition market for Regency-type centers versus kind of how you were looking at, you know, the implied cap rate of where your stock was trading and the cost you to buy back shares? Thanks.

Michael Goldsmith: Good morning, and thanks, all for taking my question from a capital allocation perspective, you kind of did it at all in the past quarter. You bought you sold you repurchase stock and you're starting to ground up development can you talk a little bit about your capital allocation priorities and maybe just touch about what the cap rates are in the.

Lisa Palmer: Can you talk a little bit about your capital allocation priorities and maybe just touch about what the cap rates are in the acquisition market for Regency type centers versus kind of how you were looking at, you know, the implied cap rate of where your stock was treating and close you to buy back shares. Thanks. Great. Thanks, Michael. Appreciate the question. And I appreciate the recognition that we basically used really every kind of tool, if you will, in the toolbox. For capital, our goal, our objective is to create value for our shareholders. And we remain very consistent in our beliefs that the best use of our capital is to our development and redevelopment program.

Speaker Change: <unk> market for regency type sensors versus kind of how you're looking at the implied cap rate of where your stock was trading and cost you to buy back shares.

Lisa Palmer: Great. Thanks, Michael. I appreciate the question.

Speaker Change: Great. Thanks, Michael appreciate the question.

Speaker Change: And I appreciate the recognition that we pay.

Speaker Change: Basically used.

Speaker Change: Really every kind of tool if you will in the tool box for catalog. It our goal our objective is to create value for our shareholders.

Speaker Change: And we remained very consistent in our belief that the best use of our capital is to our development and redevelopment.

Speaker Change: <unk> program and we absolutely believe that we are in the position very intentionally but we had the capacity the balance sheet strength liquidity to do it all this quarter and we've been talking about that for quite some time now we've been on this we are on the offensive and we were able to execute that and as we.

Lisa Palmer: And we absolutely believe that we are in the position, very intentionally, that we had the capacity to balance each strength of liquidity to do it all this quarter. And we've been talking about that for quite some time now, how we've been on the, we are on the offences. And we were able to execute that.

Lisa Palmer: And as we mentioned in our prepared remarks, in my history with, in the sector with the company, all the stars need to align to successfully execute on a share repurchase program. And they did for us. So, we bought back our shares at an implied cap rate of seven percent. And this disconnect between public and private market pricing has been much more permanent than we ever imagined. And so we were able to lean into our balance sheets because, while we are very active in the acquisition market as well.

Speaker Change: Mentioned in our prepared remarks.

Speaker Change: In my history with in the sector with the company.

Speaker Change: All the stars need to align to successively successfully execute on the share repurchase program and they did for US. So we bought back our shares at an implied cap rate of 7% and this disconnect between public and private market pricing has been much more permanent than we ever imagined.

Lisa Palmer: And I appreciate the recognition that we basically used every kind of tool, if you will, in the toolbox for capital. Our goal, our objective is to create value for our shareholders, and we remain very consistent in our belief that the best use of our capital is for our development and redevelopment programs.

Speaker Change: And so we were able to lean into our balance sheet shrunk because while we are very active in the acquisition market as well now I can have Nick just talk touch on that a little bit as did the cap rates. We're seeing you can see that we've been active as well we are seeing asset shopping centers grocery anchored on the quality that we would like to invest it in the five and a half to.

Nicholas Wibbenmeyer: And I can have Nick just talk, touch on that a little bit as to the cap rates we're seeing. You can see that we've been active as well. We are seeing assets, shopping centers, grocery anchored of the quality that we would like to invest in, in the five and a half to, if you're lucky, Nick likes to say it a lot, the needle in a haystack, bring in those that are six and a half, but those are rare. We're seeing a lot more and had a lot more conviction that are trading in the mid five cap rate range.

Speaker Change: If you're lucky Nick likes to say it a lot the needle in a haystack.

Nick: Bring in those that are six and a half but those are where we're seeing a lot more and had a lot more conviction that are trading in the mid five cap rate range and that made the share repurchase an excellent use of our capital.

Michael Goldsmith: And that made the share repurchase an excellent use of our capital.

Jeff Spector: And I'd love for Nick to touch a little more on the transaction market and what we're seeing. Absolutely. No, thank you, Lisa. I appreciate the question, Michael. At least a little bit too. We're seeing the mid pools are much deeper than they were a quarter ago. So things that are on market now have very deep bidding pools. And we're staying very disciplined to what we've always articulated, which is the opportunities that we're going to hold with trigger on, have to be people are creative to our quality and our growth profile. And we have to fund it creatively.

Speaker Change: And I'd love for Nick just to touch a little more on the transaction market and what we're saying.

Nick Wibbenmeyer: So we bought back our shares at an implied cap rate of 7%, and this disconnect between public and private market pricing has been much more permanent than we ever imagined. And so we were able to lean into our balance sheet strength, because while we are very active in the acquisition market as well, and I can have Nick just touch on that a little bit as to the cap rates we're seeing, you can see that we've been active as well.

Nick Wibbenmeyer: And we absolutely believe that. We are in the position, very intentionally, that we have the capacity, the balance sheet strength, and the liquidity to do it all this quarter. And we've been talking about that for quite some time now, how we've been on the offensive, and we were able to execute that. And as we mentioned in our prepared remarks, in my history in the sector with the company, all the stars need to align to successfully execute on a share repurchase program, and they did for us.

Nick: Absolutely no. Thank you Lisa and I appreciate the question Michael as Lisa alluded to we're seeing that the bid pools are much deeper than they were a quarter ago. So things that are on market now have very steady pools.

Speaker Change: We're staying very disciplined to what we've always articulated which is the opportunities that we're going to pull the trigger on have to be more accretive to our quality and our growth profile and we have to fund accretively and so the opportunities that we've disclosed so far this year you can see those didn't go and yields are in the mid sixes were very comfortable they check all those boxes, but there.

Jeff Spector: And so the opportunity is that we've disclosed so far this year. You can see those in going yields are in the mid sixes. We're very comfortable. They check all those boxes, but there have been a lot of opportunities on the market that have traded that are well below that cap rate and did not check all those boxes, and we stay disciplined and making sure we are ultimately riding the cruise. and so we've seen thanks trade in the low five even.

Nick Wibbenmeyer: We are seeing assets, shopping centers, groceryanchored of the quality that we would like to invest in in the five and a half to, if you're lucky, Nick likes to say it a lot, the needle in a haystack, bring in those that are six and a half. But those are where we're seeing a lot more and have a lot more conviction that are trading in the mid five cap rate range. And that made the share repurchase an excellent use of our capital. And I'd love for Nick to touch a little more on the transaction market and what we're seeing. Absolutely. No, thank you, Lisa. Appreciate the question, Michael. As Lisa alluded to, we're seeing how the bid pools are

Speaker Change: Been a lot of opportunities in the market that are traded.

Speaker Change: That are well below that cap rate and did not check all those boxes and we stay disciplined in making sure we are ultimately driving accretion.

Speaker Change: And so we've seen things trade in the low fives even.

Juan Sanabria: Thank you, Michael.

Nick Wibbenmeyer: Absolutely, no, thank you, Lisa. I appreciate the question, Michael. As Lisa alluded to, we're seeing the bid pools are much deeper than they were a quarter ago, so things that are on market now have very deep bidding pools, and we're staying very disciplined to what we've always articulated, which is the opportunities that we're going to pull the trigger on have to be equal or creative to our quality and our growth profile, and we have to fund it creatively, and so the opportunities that we've disclosed so far this year, you can see those ongoing yields are in the mid-sixes, we're very comfortable, they check all those boxes, but there have been a lot of opportunities on the market that have traded that are well below that cap rate and did not check all those boxes, and we've stayed disciplined to making sure we are ultimately driving accretion. And so we've seen things trade, you know, in the low fives even. Thanks again, Michael.

Michael Goldsmith: Thanks again Michael.

Speaker Change: Next question.

Juan Sanabria: Our next question comes from Jeff Spector with Bank of America. Please proceed with your question. Great, thank you. I do have a question on markets, but I know it's one question. Can I just confirm on the repurchase program that clarifies the $250 million that's still left? No, Jeff. Jeff, we as a practice like the just in our board likes to have an open repurchase program authorized by the board at about a level of $250 million. So our activity in the quarter exhausted the previous authorization, so we simply refreshed the authorization for another two years at $250 million capacity.

Speaker Change: Yeah.

Jeff Spector: Our next question comes from Jeff Spector with Bank of America. Please proceed with your question. Great, thank you.

Speaker Change: Our next question comes from Jeff Spector with Bank of America. Please proceed with your question.

Jeff Spector: Great. Thank you I do have a question on markets, but I know, it's one question can I just confirm on the repurchase program to clarify the $250 million that's still left.

Lisa Palmer: No, Jeff. So, Jeff, we as a practice like to just, and our board likes to have an open repurchase program authorized by the board at about a level of 250 million. So our activity in the quarter exhausted the previous authorization. So we've simply refreshed the authorization for another 2 years at a 250 million dollar capacity.

Speaker Change: No Jeff So Jeff.

Speaker Change: As far as a practice like that just in.

Speaker Change: Our board likes to have a an open repurchase program authorized by the board at about that level of time 50 million. So our activity in the quarter exhausted the previous authorization. So we simply have refreshed the authorization for another two years at $250 million of capacity.

Juan Sanabria: Our next question comes from Juan Sanabria with BMO Capital Markets. Please proceed with your question. Hi, good morning, and thanks for the time. I noticed a small shop occupancy tick down a little bit sequentially. I'll just curious for some color behind that. Is there any signs of stress that you're seeing on the small shop side, in particular with the local mom-and-pop shows that still relatively healthy?

Juan Sanabria: Our next question comes from Juan Sanabria with BMO Capital Markets. Please proceed with your question.

Speaker Change: Our next question comes from one center brand with BMO capital markets. Please proceed with your question.

Juan Sanabria: Hi, good morning, and thanks for the time. I noticed the small shop occupancy ticked down a little bit sequentially. I'm just curious about some color behind that.

Speaker Change: Hi, good morning, and thanks for the time.

Speaker Change: Noticed a small shop occupancy ticked down a little bit sequentially.

Speaker Change: Just curious for some color behind that is there any signs of stress or you're seeing on the small shop side in particular with the local mom and pops or is that still relatively healthy.

Alan Roth: Is there any signs of stress that you're seeing on the small shop side, in particular with the local mom-and-pops, or is that still relatively healthy?

Alan Roth: Juan, good morning. Let's say good afternoon. It's now, and I appreciate the question. The short answer is no. There is no concern over the underlying fundamentals. We feel great about where we are in terms of the help of those regionals, both national and local mom-and-pop. I would point you to how we're thinking about foot traffic being up 6% year over year to day. Sales are remaining healthy. Again, both in the national and local level, retention rates are also above 80%, which is slightly above when our historical trends have been. So, as we put all of that together, we feel very comfortable that where we sit today.

Speaker Change: One good morning, well, let's say good afternoon, it's Alan I. Appreciate the question. The short answer is no. There is no concern over the underlying fundamentals we feel great.

Speaker Change: About where we are in a in terms of the health of those retailers, both national and local mom and Pops I would I would point you to how we're thinking about foot traffic being up 6% year over year year to date sales are remaining healthy again, both in the national and local level retention rate.

Speaker Change: <unk> are also above 80%, which is slightly above what our historical trends have been so as we put all of that together, we feel very comfortable that where we sit today the portfolio as it is certainly healthy and I think that's largely a testament to how our teams go through a very rigorous koala.

Alan Roth: The portfolio is certainly healthy, and I think that's largely a testament to how our teams go through a very rigorous qualification process for durability of occupancy. When we think about it, it's interesting. It seems like it shouldn't be this way, but when we're in the position of strength that we are in, we are much more comfortable getting spaced back, and because we're able to release it at higher rents and with better merchandising. So we are, when a lease comes up for renewal, if the tenant isn't necessarily going to pay what we want them to pay, we are happy to move on.

Speaker Change: Vacation process for for durability of occupancy.

Speaker Change: When we think about it it's interesting it seems like it shouldn't be this way, but when we're in a position of strength that we are in we are much more comfortable getting space back and because we were able to re lease it at higher rents and with better merchandising them. So we are when the lease comes up for renewal if the tenure.

Speaker Change: It isn't necessarily going to tell you what we want them to pay we are happy to move on.

Greg McKinnis: Our next question comes from Greg McKinnis with Scotiabank. Please wanted to ask on the credit side. So we have now 300 million on Reboawer. Are you on the markets now for new depictions to cover that? Because we've seen it 20 weeks decline today, and more than it seems to be to decline within the last month. I'm just curious what your thoughts on that. I appreciate the question. First, I'd say we're very comfortable with our liquidity today. You know, we recently recast a revolve, so we've been doing it in half of capacity. You're correct; we are at $300 million drawn on that facility.

Speaker Change: Our next question comes from Greg Mcginniss with Scotiabank. Please proceed with your question.

Alan Roth: Juan, good morning, or should I say good afternoon? It's Alan.

Speaker Change: Hello. This is speaking to Friday on with Greg Mcginniss I, just I wanted to ask on the credit side, we have now 300 million under revolver.

Speaker Change: On the market now for new definition to cover that because we've seen it trying to beat the decline today and it more than it used to be a decline.

Speaker Change: As of last month, so just curious what's your thoughts on that.

Alan Roth: I appreciate the question. The short answer is no; there is no concern over the underlying fundamentals. We feel great about where we are in terms of the health of those retailers, both national and local mom and pops. I would point you to how we're thinking about foot traffic being up 6% year over year, year to date. Sales are remaining healthy again, both at the national and local level. Retention rates are also above 80%, which is slightly above what our historical trends have been.

Speaker Change: I appreciate the question.

Speaker Change: First I'd say, we're very comfortable with our liquidity today.

Speaker Change: We recently re cast a revolver. So we have a billion and a half of capacity.

Speaker Change: You are correct. We are we are at $300 million drawn on that facility. That's largely attributed to the active investment investments we made in the second quarter.

Michael Mas: That's largely attributed to the active investment investments we made in the second quarter. Largely, also standing there, we purchased this. We're monitoring the capital markets, as you would expect us to. We do have a bias towards public unsecured financing on a long-term basis at a fixed rate, and we'll continue to monitor those markets. It is, I mean, the past 48 hours have been so much happy, and we have a pretty significant rally on base treasury rates, but as you would expect, oftentimes with that type of movement, you start to see a little bit of weakness from a credit spread perspective.

Speaker Change: Largely also stemming from our repurchases, where we're monitoring the capital markets. As you would expect US to we are we do have a bias towards public unsecured financing on a long term basis at a fixed rate.

Speaker Change: And we'll continue to monitor those markets. It is I mean a lot in.

Speaker Change: In the past 48 hours have been somewhat choppy and we have a pretty significant rally in base treasury rates, but as you would expect oftentimes with the with that type of movement, you start to see a little bit of weakness for my credits a credit spread perspective, so I'm.

Michael Mas: So just expect us to be highly attentive and attuned to where the market is going, and we will turn out that facility when we think it's appropriate.

Speaker Change: Expect us to be highly attentive and attuned to where the market is going.

Speaker Change: And we will term out that facility when we think it's appropriate.

Speaker Change: Yeah.

Craig Malman: Our next question comes from Craig Malman with Citigroup. Please proceed with your question.

Speaker Change: Our next question comes from Craig Mailman with Citigroup. Please proceed with your question.

Craig Malman: A apologies if someone asks us, I got a drop off the call, but just from the development side, you guys have been in a pretty good position here having the liquidity to start projects and clearly higher interest rates made it difficult for peers, but given kind of the pullback in the 10-year here and potentially lower rates going forward, do you feel like it gets harder for you guys to source, or at least a more competitive environment as maybe construction financing becomes an option for others going forward?

Craig Mailman: Hey, I apologize if someone asked this I got dropped off the call, but I'm just on the development side you guys have been in a pretty good position here, having the liquidity to to start projects clearly higher interest rates made it difficult for peers, but.

Speaker Change: Given kind of the pull back in the 10 year here and potentially lower rates going forward.

Speaker Change: Do you feel like it gets harder for you guys to source or at least a more competitive environment is maybe construction finance it becomes an option for.

Speaker Change: For others going forward.

Nicholas Wibbenmeyer: Craig, this is Nick. I appreciate the question. Yeah, look, as we've talked about a lot, there's a lot that goes into finding these development opportunities and executing on them, and you've heard me say a time and time again, capital is one of those key components. And so, if capital does become available, it does open up some opportunities for others, but let's not forget the other two needed ingredients, which are relationships and expertise to find and execute on these opportunities. And so we continue to have the best relationships in the business with not only the key tenants that are expanding, but also the brokers and landowners in those markets that we're looking to expand in.

Nick: Hi, Craig This is Nick I. Appreciate the question Yeah look as we've talked about a lot. There's a lot that goes into finding these development opportunities and executing on them and you've heard me say time and time again capital is one of those key components and so capital does become available that does open.

Speaker Change: Some opportunities for others, but let's not forget the other two needed ingredients, which is relationships and expertise to find and execute on these opportunities and so.

Speaker Change: We continue to have the best relationships in the business with not only the key tenants that are expanding but also the brokers and landowners in those markets that we're looking to expand in.

Nicholas Wibbenmeyer: And clearly our team has the expertise coast to coast. And so, regardless of capital markets, we feel really good about our ability to get more than our fair share of these opportunities as we look forward. And our shadow pipeline continues to grow as we're getting on to our opportunities.

Speaker Change: And clearly our team has the expertise coast to coast and so regardless of the capital markets. We feel really good about our ability to get more than our fair share of these opportunities as we look forward in our shadow pipeline continues to grow as we were out getting arms around these opportunities.

Samir Khanal: Our next question comes on the line of Samir Canal with Evercore. Please proceed with your question. Hey, good morning everybody. I guess Mike or Lisa, can you expand on the opportunities that exist on the shop space? I'm just trying to understand how much more you can push on occupancy when you clearly will have one of the best growths in the strip sector next year, right? And I'm just trying to see from whether it's per-starred middle or just trying to see how much more incremental growth there could be versus kind of what you've already put out for 20.

Speaker Change: Our next question comes on the line of Samir Canal with Evercore. Please proceed with your question.

Samir Canal: Hey, good morning, everybody I guess micro Lisa can you expand on the opportunities that exist on the shop space I'm, just trying to understand how much more you can push on occupancy when you clearly will have one of the probably the best growth in the strip sector next year, right and I'm just trying to see from a.

Speaker Change: Whether it's for bid or you know just trying to see how much more.

Speaker Change: Incremental growth there could be versus kind of what you've already put out for 'twenty five at this point. Thanks.

Michael Mas: I think the team might be petrified if I answer this question because I'll just keep pushing and pushing and pushing. So I'll let Micah, I'll let Micah answer it.

Speaker Change: I think the team might be petrified, if I answer this question, because I'll, just keep pushing and pushing and pushing so I'll, let Mike I'll, let Mike answer it let me start and Alan you can color on my comments up but just kind of fundamentally Samir page seven in our investor in our quarterly Investor materials is really helpful and I think that's what gets us so excited.

Michael Mas: Let me start, and Alan, you can color my comments up, but just kind of fundamentally, Samir, page seven in our quarterly investor materials is really helpful. And I think that's what gets us so excited about our near-term prospects for growth. And I would point you to the percent commenced bullet on that line. And what we're indicating is that, compared to our historical prior peak, we have 220 basis points of commenced occupancy opportunity. That dovetails very nicely that the $50 million of SNO pipeline that the team has built and that we know we're going to deliver starting in the fourth quarter of this year and largely into 2025.

Mike: Our near term prospects for growth and I would point you to a total the percent commenced a.

Speaker Change: Bullet on that line and what we're indicating is that compared to our historical prior peak, we have 220 basis points of commenced occupancy opportunity that dovetails very nicely with the $50 million of ethanol pipeline that the team has built and that we know we're going to deliver starting in the fourth quarter of this year and largely into 2025 and.

Michael Mas: And if there's runway beyond that, as I look at that chart and think about the post-GSE recovery period, you can see significant increases in percent commenced achieved over about a two to three years. And as I, you know, all of us being equal, as I think about the quality of our portfolio, the quality of our leasing team, and the demand we're seeing. We don't see that there's any reason why we can't replicate that process going forward over the near term. If it's going to be, it'll take longer than one year to make 220 basis points of gap differential, right?

Speaker Change: If theres runway beyond that as I look at that chart and think about the post GST recovery period, you can see significant increases in per cent commenced achieved over about a two to three year period and as you know all else being equal as I think about the quality of our portfolio the quality of our leasing team and the demand we're seeing.

Mike: I, we don't see that there's any reason why we can't replicate that process going forward over the near term.

Speaker Change: It's gonna be it'll take longer than one year to 220 basis points of gap differential right, you're still going to have churn you're still gonna have move outs as Lisa said, we're gonna be very.

Michael Mas: You're still going to have time; you're still going to have moved out. As Lisa said, we're going to be very differentiating with our tenant selection. So it will take more than a year's worth of time, but very excited and bullish about our growth prospects from here.

Lisa: Differentiating with our tenants election, so it'll takes more than a year's worth of time, but very excited and bullish about our growth prospects from here.

Dori Kesten: Our next question comes from Dory Keyston with Wells Fargo. Please proceed with your question. Thanks, good morning. Your tenant watch list exposure is quite low versus peers.

Speaker Change: Our next question comes from Dori Keystone with Wells Fargo. Please proceed with your question.

Dori Keystone: Hi, Thanks, Good morning, Yeah, Youre your tenant watch list exposure is quite low versus peers can you hit on the highlights the process you go through when evaluating and tenant credit Prescreening and just Ain't refinement, you've added to the process over the last year.

Alan Roth: Can you hit on the highlights of the process you go through in evaluating tenant credit pre-signing and just any refinements you've added to the process over the last year?

Alan Roth: Dory, yes, this is Alan. I appreciate the question. It's very rigorous. We do not just lease for ostency. We're very thoughtful and deliberate in our approach to how we think about our retailers. I would say that our watch list is comprised of roughly 150 basis points of ABR. But if you think about what the industry has experienced this quarter, cons filing for bankruptcy. We have zero Eastern Mountain Sports. We had one RU-21. We had one Big Lots, announced store closures, although not yet filed for bankruptcy. Again, we have one. And so I sort of look at that and go, this is exactly what we have asked of our leasing teams on how to think about not just doing transactions, but being very thoughtful in aligning with the right retailers.

Alan: Hi, Dori, Yes. This is Alan I. Appreciate the question, it's very rigorous we do not just lease for occupancy, we're very thoughtful and deliberate.

Mike: And our approach to how we think about our retailers I would say that our watch list is comprised of roughly.

Speaker Change: Roughly 150 basis points, all the a b R. But if you think about what the industry has experienced this quarter cons are filing for bankruptcy, we have zero Eastern Mountain Sports. We had one route 21, we had one big lots announced store closures, although not yet filed for bankruptcy.

Speaker Change: Again, we have one and so I sort of look at that and go. This is exactly what we have asked of our leasing teams on how to think about not just doing transactions are being very thoughtful and aligning with the right retailers and and I feel great about our about where we stand on that front.

Alan Roth: And I feel great about where we stand on that front.

Alan Roth: So, as we put all of that together, we feel very comfortable that where we sit today, the portfolio is certainly healthy. And I think that's largely a testament to how our teams go through a very rigorous qualification process for durability of occupancy. When we, when we think about it, it's interesting.

Alan Roth: I go back to how I think I started the first question answers that are objective in every part of the business is to create value for our shareholders. And we can also create; we also do create it by applying those principles and concepts to our leasing program and ensuring that we are merchandising for the long term, not just for the short term.

Speaker Change: Back to how I think I start at the first as first question answer is that our objective in every part of the business is to create value for our shareholders and we can also create we also do created by <unk>.

Speaker Change: Applying those principles and concepts to our leasing program and ensuring that we are merchandising for the long term not just for the short term.

Ravi Vaidya: Our next question comes from Honda L. St. Just with Mizzouho.

Alan Roth: When we think about it, it's interesting. It seems like it shouldn't be this way, but when we're in the position of strength that we are in, we are much more comfortable getting space back because we're able to release it at higher rents and with better merchandising. So when a lease comes up for renewal, if the tenant isn't necessarily going to pay what we want them to pay, we are happy to move on. Our next question comes from Greg McGinniss with Scotiabank. Please proceed with your question. Hello, this is Fadi Wanwis.

Mike Mas: I appreciate the question. First, I'd say we're very comfortable with our liquidity today. You know, we recently recast a revolver, so we have a billion and a half of capacity. You're correct.

Speaker Change: Our next question comes from Honda <unk> St Juste with Mizuho. Please proceed with your question.

Ravi Vaidya: Please proceed with your question. Kesten. Hi, good morning. This is Ravi Vaidya in the line for Hyundai. Hope you guys are doing well. I just wanted to touch on the cat-back from the TI for new leases. This quarter is a bit a bit elevated first through this quarter. Is there anything one time in there? And how do you expect us to go? How do you expect us to try and going forward?

Greg Mcginniss: Our next question comes from Greg McGinniss with Scotiabank. Please proceed with your question. Hello, this is Viktor.

Mike Mas: We are at $300 million drawn on that facility, and that's largely due to the active investments we made in the second quarter, largely also stemming from our repurchases. So, as you would expect, oftentimes with that type of movement, you start to see a little bit of weakness from a credit spread perspective. So, just expect us to be highly attentive and attuned to where the market is going, and we will turn on that facility when we think it's appropriate.

Craig Mailman: Our next question comes from Craig Mailman with Citigroup. Please proceed with your question.

Hi, Good morning. This is Ravi here the underlying Fernando I Hope you guys are doing well.

One time in there and how do you expect this to go how do you expect this to trend going forward.

Ravi Vaidya: Thanks.

Nick Wibbenmeyer: Apologies if someone asked this; I got dropped off the call. But just on the development side, you guys have been in a pretty good position here with the liquidity to start projects, and clearly, higher interest rates made it difficult for peers. But given kind of the pullback in the 10-year here and potentially lower rates going forward, do you feel like it gets harder for you guys to source or at least a more competitive environment as maybe construction financing becomes an option for others going forward?

Speaker Change: Robby.

Michael Mas: Ravi, appreciate that question. The answer is still very good about the approach of how we are prudently managing capitals. I would just bring us back to net effective rent as a percent of gap rent. And we're in that 80 to 85% range that we're very comfortable with. I would also say when you look at total comparable capitals for the quarter, it is lower than our trailing 12 months. So the team's prudently managing it. We're growing rents appropriately. We'll focus not just on rent spreads, but the embedded rent steps as well. And I don't see any shift in underlying fundamentals or trends to your question.

Speaker Change: Appreciate that question. The answer is still feel very good about our about the approach of how we are prudently managing capitals I would just bring us back to net effective rent as a percent of GAAP rent and we're in that 80% to 85% range that we're very comfortable with I would also say when you look at total.

Speaker Change: Comparable.

Speaker Change: Capitals.

Speaker Change: For the quarter it is lower than our trailing 12 months' L. A the teams prudently managing it where we're growing rents appropriately we're focused not just on rent spreads, but the embedded rent steps as well and I don't see any shift in underlying fundamentals or trends to your question.

Ki Kim: Our next question comes from Kibin Kim with Truva Securities. Please proceed with your question. Thank you. Good morning. So, I mean, it looks like you're setting up for pretty good growth year in 25. If you look at the snow pipeline of 5% upside, of course, or some upside from contractual rent stop-ups of 140 basis points. And then, if you add on lease spreads. So you can get to a pretty big number.

Speaker Change: Our next question comes from Keybanc, Kim with true with Securities. Please proceed with your question.

Speaker Change: Thank you good morning.

Speaker Change: So I mean, it looks like you're setting up for pretty good growth year and 25. He if you look at the snow pipeline of 5% outside a matter of course, there are some upside from contractual rent step ups off of 140 basis points and then if you add on lease spreads. So you can get to a pretty big number and obviously not everyone reused but can you just talk about some of those.

Ki Kim: Obviously, not everyone renews, but can you just talk about some of the factors that might bring down some of those positive growth factors. And if you have any kind of large known pen and move out, that might occur in the foreseeable future. Thank you.

Speaker Change: Or is that might bring down some of those positive real factors.

Speaker Change: And if you have any kind of large known tenant move outs that might occur in the foreseeable future. Thank you.

Ki Kim: Hey, Kibin. Number one, I appreciate you articulated our wheel growth very well. We spent a lot of time communicating that. So thank you. And we have spoken to the plus 100 basis points of same property growth attributed to the activation of redevelopment pipeline that we anticipate next year, which is about double what we would expect in a historical average year. We are set up for growth. I talked a lot about the ethanol pipeline. I talked about where we stand from a percent comments perspective. I appreciate the direction that you're indicating.

Nick Wibbenmeyer: Hi Craig, this is Nick. I appreciate the question. Yeah, look, as we've talked about a lot, there's a lot that goes into finding these development opportunities and executing on them. And you've heard me say it time and time again, capital is one of those key components. And so capital does become available; that does open up some opportunities for others. But let's not forget the other two needed ingredients, which are relationships and expertise to find and execute on these opportunities.

Speaker Change: Hey, keep in that.

Nick Wibbenmeyer: And so we continue to have the best relationships in the business with not only the key tenants that are expanding, but also the brokers and landowners and those markets that we're looking to expand in. And clearly, our team has the expertise coast to coast. And so regardless of the capital markets, we feel really good about our ability to get more than our fair share of these opportunities as we look forward. And our shadow pipeline continues to grow as we're getting armed around these opportunities.

Speaker Change: Number one I appreciate you articulated our real growth very well, we spent a lot of time communicating that so thank you.

Samir Khanal: Our next question comes from the line of Samir Khanal with Evercore. Please proceed with your question.

Speaker Change: And we have spoken to the plus 100 basis points of same property growth attributed to the activation of our redevelopment pipeline that we anticipate next year, which is about double what we would expect in a historical average year.

Lisa Palmer: Hey, good morning, everybody. I guess Mike or Lisa, can you expand on the opportunities that exist in the shop space? I'm just trying to understand how much more you can push occupancy. And you clearly will have one of the best rates of growth in the strip sector next year, right? And I'm just trying to see whether it's the first bid or not, just trying to see how much more Incremental growth there could be versus kind of what you've already put out for 25 at this point. Thanks.

Mike Mas: I think the team might be petrified if I answer this question, because I'll just keep pushing and pushing and pushing. So I'll let Mike, I'll let Mike answer it. Let me start. And Alan, you can.

Speaker Change: We are set up for growth I've talked a lot about the ethanol pipeline I talked about where we stand from a percent commenced perspective I appreciate the direction that you're indicating I'm going to stop short of providing any guidance for next year and there's more to come on that as we dig into our plan.

Mike Mas: Let me start, and Alan, you can color my comments up, but just kind of fundamentally, Samir, page seven in our quarterly investment materials is really helpful, and I think that's what gets us so excited about our near-term prospects for growth. And I would point you to the percent commenced bullet on that line, and what we're indicating is that, compared to our historical prior peak, we have 220 basis points of commenced occupancy opportunity. That dovetails very nicely with the $50 million in S&O pipeline that the team has built and that we know we're going to deliver starting in the fourth quarter of this year and largely into 2025, and there's runway beyond that.

Ki Kim: I'm going to stop short of providing any guidance next year. And there's more to come on that as we dig into our plan effectively as soon as it's called over, as we get back to work. But some headwinds, there's always going to be move out. You're always going to; you're not retaining everybody. I think we do an awesome job of selecting who we want. Bankruptcies are always going to play a little, historically speaking. That could range anywhere from 30 to 60 basis points on a look back basis, depending on who files and when. Timing is a big factor in that.

Speaker Change: As soon as this call is over as we get back to work but.

Speaker Change: Some headwinds there, there's always going to be move outs.

Speaker Change: We're always going to you're not retaining everybody and I think we do it.

Speaker Change: Awesome job.

Speaker Change: Selecting who we want bankruptcies are all always going to play a role historically speaking that that could range anywhere from 30 to 60 basis points on a look back basis, depending on who filed and when timing is a big factor in that in that but I don't know that I would anticipate our credit loss provision being wildly different than what we are.

Ki Kim: But I don't know that I would anticipate our quite a lost provision being wildly different than what we're experiencing now.

Speaker Change: Extracting now.

Ki Kim: So, you know, more to come is where I'll end it, but we are very operative. We're looking at 2025 the same way we did last quarter. We have a lot of positive momentum building into next year.

Speaker Change: So you know more to come as it were all around it but we are very offer we were looking at 2025 at the same way we did last quarter.

Mike Mas: As I look at that chart and think about the post-GOC recovery period, you can see significant increases in percent commenced achieved over about a two- to three-year period, and as I, you know, all of us being equal, as I think about the quality of our portfolio, the quality of our leasing team, and the demand we're seeing, we don't see that there's any reason why we can't replicate that process going forward over the It's gonna be, it'll take longer than one year to make 220 business points of gap differential, right?

Speaker Change: We have a lot of positive momentum building into next year.

Ronald Kamdem: Our next question comes from Ron Camden, with Morgan Stanley. Please proceed with your question. Hey, just a quick two-parter. Just on, you know, obviously the starting season, we've seen a lot of institutional capital essentially looking at the open center, open shopping center space. Just if you could comment on either on the acquisition of front, or just in general as you're seeing institutional capital, private equity and so on and so forth. Coming to more into the space, and then my second part is I had sort of a follow up on that occupancy gain slides on the peak commence where you have 220 basis points, any way to double click whether it's market or assets, you know, can we get a second layer of where that upside is really concentrated in thanks.

Mike Mas: You're still gonna have churn, you're still gonna have to move out. As Lisa said, we're gonna be very differentiating with our tenant selection. So it'll take more than a year's worth of time, but I'm very excited and bullish about our growth prospects. Our next question comes from Dori Kesten with Wells Fargo. Please proceed with your question.

Ron Camden: Our next question comes from Ron Ron Camden with Morgan Stanley. Please proceed with your question.

Dori Kesten: Dori, yes, this is Alan. I appreciate the question. It's very rigorous. We do not just lease for occupancy. We're very thoughtful and deliberate in our approach to how we think about our retailers. I would say that our watch list is comprised of, you know, roughly 150 basis points of ABR.

Alan Roth: But if you think about what the industry has experienced this quarter, closures, filing for bankruptcy, we had zero. Eastern Mountain Sports, we had one. Rue 21, we had one. Big Lots announced store closures, although it has not yet filed for bankruptcy.

Alan Roth: Again, we have one. And so I sort of look at that and go, this is exactly what we have asked of our leasing teams about how to think about not just doing transactions but being very thoughtful in aligning with the right retailers. And I feel great about where we stand on that front. Now, I go back to how I think I started.

Ron Camden: Just a quick two parter just on you know obviously this earnings season, we've seen a lot of institutional capital essentially looking at the open Center are open shopping center space. Just if you could comment on either on the acquisition of fraud or just in general with.

Speaker Change: You're seeing institutional capital private equity and so on and so forth coming into more into the space and then the second part is I had sort of a follow up on that occupancy gain slides on the P commenced where you have 220 basis points anyway to doubleclick, whether it's market or assets Oh can we get a second layer of.

Speaker Change: Where where that upside is really concentrated in thanks.

Ronald Kamdem: That was a sneaky way to ask two questions.

Speaker Change: That was a sneaky way to ask two questions.

Nicholas Wibbenmeyer: I think Nick really did already address the, I believe, the transactions market that maybe it's Nick has touched because he mentioned that the polls were deeper. So just maybe, Nick, the composition of the kind of the bids that we're seeing, if it's any different, if it's changed at all. Absolutely, Ron. Appreciate question in the morning. No question, the bidding pool, they're much deeper for assets that we're pursuing and looking at and evaluating, and so we're maybe before there are three to five bids, now there's 15 to 20 bids on assets, and so we're definitely watching funds flow into our asset class for all the reasons we're bullish on them that might just articulate it, and as you would appreciate a lot of those that is our institutional whether the potential funds, whether the private equity back, etc.

Speaker Change: I think Nick really did already addressed that but I believe the transactions market that maybe is making just touched him because he mentioned that the polls or deeper. So just maybe Nick the composition of the kind of the bids that we'll see if there's any different if it's changed at all.

Alan Roth: I go back to how I think I started. The first question answer is that our objective in every part of the business is to create value for our shareholders, and we can also create, and we do create it by applying those principles and concepts to our leasing program and ensuring that we are merchandising for the long term, not just for the short term. Our next question comes from Hondell St. Just with Mizzou Hope. Please proceed with your question.

Speaker Change: Absolutely Rob I appreciate the question good morning.

Nick I.: No question the bidding pools are much deeper for assets that we're pursuing and looking at and evaluating and so where maybe before there were three to five days now there's 15 to 20 bps on assets and so where.

Nick I.: We're definitely watching funds flow into our asset class for all the reasons, we're bullish on it that might just articulated and as you would appreciate a lot of those theatres are institutional whether it be pension funds, whether it be private equity back et cetera, and so no no question, saying a lot of institutional capital.

Nicholas Wibbenmeyer: And so no, no question seeing a lot of institutional capital pursuing assets right now.

Nick I.: Pursuing assets right now.

Alan Roth: Hey, Ron. Take a look at page eight of our investor presentation for the quarter, and I think you'll get some good composition with respect to our existing SNO pipeline. And there you'll see that it's roughly 60% shops, 40% anchors, and from a timing perspective, we also detail that about only about 15% of that income is going to be recognized in 24. You know, up to 90% of that income will be recognized next year, speaking to our bullish make posture on 25. But I would say, though, that as we think about moving the needle on occupancy, we have some room to run on it on the anchor front, and we've got some really exciting opportunities that the team is working on. I thought I know Alan may want to color up some of that activity.

Hondell St. Just: Hi, good morning.

Ron Camden: Hey, Ron.

Ron Camden: Taking a look at page eight of our investor presentation for the quarter and I think you'll get some good composition with respect to our existing S. N O pipeline.

Speaker Change: And from a timing perspective, we also detail about only about 15% of that income is going to be recognized in 'twenty four.

Speaker Change: Up to 90% of that income will be recognized next year speaking to our bullish.

Speaker Change: Posture on 25.

Speaker Change: I would say, though that as we think about moving the needle on occupancy we.

Speaker Change: We have some room to run on the on the anchor front and we've got some really exciting opportunities that the team is working on them I bought it.

Alan I.: Alan May want to Colorado, some of that activity, yes, I mean, I guess, Ron the only thing I would add to that to put definitive the occupancy to it is we're at 97, 2% and our historic peaks or 98 and a half. So there is certainly runway there theres been a couple of I'll call. It a stubborn deals.

Alan Roth: Yeah, I mean, I guess from the only thing I would add to that to put definitive occupancy to it is we're at 97.2%, and our historic peaks are 98 and a half. So there is certainly runway there. There's been a couple of I'll call them stubborn deals that have been out there that are really right at the goal line right now. So I feel great about the trajectory of where we are. I look at that FNO pipeline and I'll say the top six that are sitting there are very few doors that were really excited to get online.

Speaker Change: That had been out there that are really right at the at the goal line right now so I feel great about the trajectory of where we are I look at that pipeline and I'd say the top six that are sitting there are grocery stores that we're really excited to.

Alan I.: To get online.

Alan Roth: And that will also provide for some ancillary center of gravity and synergistic merchandising to go with it. So future is looking great there.

Alan I.: And that will also provide for some some ancillary a center of gravity and synergistic merchandising to go with it so futures looking great there.

Floris Dijkum: Thanks.

Lisa Palmer: So our next question comes from FloorsFan.com with Compass Point. Please proceed with your question. Question. Hey, morning, guys. Lisa, I wanted to ask you questions more of a bigger picture question, perhaps, but I think you're probably uniquely in a position to be able to answer something like this. Obviously, there's the news; the Blackstone is looking at one of your peers. There's the private formations, the fact that interest rates are likely coming down in September. You talk a little bit about your implied cap rates at being at 7%, you know, back when you bought back the stock. Obviously, your stock price is more than 10% higher, so it's gone down a little bit.

Speaker Change: Thanks, so much.

Speaker Change: Our next question comes from Floris Van <unk> with Compass point. Please proceed with your question.

Hey, Good morning, guys. Lisa I wanted to ask you question, it's more of a bigger picture question.

Speaker Change: Perhaps but I think you're probably uniquely.

Speaker Change: Positioned to be able to answer something like this obviously.

Speaker Change: There's the news of Blackstone is looking at one of your peers. There's the private formations. The fact that interest rates are likely coming down in September.

Speaker Change: You talked a little bit about your implied cap rates are being at 7% you know back when you bought back the stock. Obviously you have your stock price has more than 10% higher so it's gone down a little bit but I'm curious.

Lisa Palmer: But I'm curious to get your sense; I mean, from where are cap rates in the shopping center sector headed, in your view? And do you think that we could see some of the cap rate expansion retrace itself over the next 12 to 18 months as capital comes in, as interest rates come down, and frankly, as growth and IOR from assets still appear pretty, pretty interesting.

Speaker Change: <unk> to get your sense I mean.

Speaker Change: Where are cap rates in the shopping center sector are headed.

Speaker Change:

Speaker Change: In your view and do you think that we could.

Speaker Change: See some of the cap rate expansion retraced itself over the next 12 to 18 months as as capital comes in as interest rates come down and frankly its growth.

Speaker Change: And IRR are from from assets.

Speaker Change: Still appear pretty pretty pretty interesting.

Mike Mas: Robbie, I appreciate that question. The answer is still feel very good about the approach of how we are prudently managing capital. I would just bring us back to net effective rent as a percent of gap rent. And we're in that 80 to 85% range that we're very comfortable with. I would also say when you look at total comparable capital for the quarter, it is lower than our trailing 12 months. So the team's prudently managing it. We're growing rent appropriately. We're focused not just on rent spreads but the embedded rent steps as well. And I don't see any shift in underlying fundamentals or trends in your question.

Ki-Bin Kim: Our next question comes from Ki-Bin Kim with Truva Securities. Please proceed with your question.

Lisa Palmer: For us, thanks for the question. I would go back to the conviction that we had with regards to the meat, but we believe a meaningful discount to private market values. We would not have executed the Sherry purchase. So I don't believe that cap rates are rising in the future, and with cost of financing potentially going down, if we see that. I think that our product type grocery anchored higher quality shopping centers, we've seen it throughout what we thought should be a time when cap rates would rise that cap rates were really sticky. And that's because our product type offers that sustainability and stability of cash flows.

As far as thanks for the question.

Speaker Change: I would go back to the conviction that we had with regards to the <unk>.

Speaker Change: But we believe a meaningful discount to private market values.

Ki-Bin Kim: Thank you. Good morning.

Mike Mas: So, I mean, it looks like you're setting up for a pretty good growth year in 2025. If you look at the snow pipeline of 5% upside, and of course, there's some upside from contractual rent stuff, so 140 basis points, and then if you add on lease spreads, you can get to a pretty big number. Obviously, not everyone renews, but can you just talk about some of the factors that might bring down some of those positive growth factors? And if you have any kind of large known tenant move outs that might occur in the foreseeable future? Thank you.

Mike Mas: Hey, Keevin. Number one, I appreciate you articulating our wheel of growth very well. We spent a lot of time communicating that, so thank you. And we have spoken to the plus 100 basis points of same property growth attributed to the activation or redevelopment pipeline that we anticipate next year, which is about double what we would expect in a historical average year. We are set up for growth. I talked a lot about the F&O pipeline.

Mike Mas: I talked about where we stand from a percent commenced perspective. I appreciate the direction that you're indicating. I'm going to stop short of providing any guidance for next year, and there's more to come on that front as we dig into our plan, effectively, as soon as this call is over, as we get back to work. But with some headwinds, there's always going to be move-outs. You're not retaining everybody. I think we do an awesome job of selecting who we want. Bankruptcies are always going to play a role. Historically speaking, that could range anywhere from 30 to 60 basis points on a look-back basis, depending on who files and when.

Ron Kamden: Timing is a big factor in that, but I don't know that I would anticipate our credit loss provision being wildly different from what we're experiencing now. So more to come is where I'll end it. We're looking at 2025, the same way we did last quarter. We have a lot of positive momentum building into next year.

Speaker Change: Our product type grocery anchored higher quality shopping centers, we've seen it throughout what we thought it should be a time when cap rates would rise that cap rates are really sticky.

Lisa Palmer: Our next question comes from Ron Kamden with Morgan Stanley. Please proceed with your question.

Ron Kamden: Hey, just a quick two parter. Just on, you know, obviously this earnings season, we've seen a lot of institutional capital looking at the open center, open shopping center space. Just if you could comment on either the acquisition front, or just in general, as you're seeing institutional capital, private equity, and so on and so forth, coming more into the space. And then my second part is, I had sort of a follow-up on those occupancy gain slides on the peak events where you have 220 base points. Any way to double-click, whether it's market or assets, you know, can we get a second layer of where that upside is really concentrated? Thanks.

Speaker Change: And that's because our product type offers that sustainability and stability of cash flows.

Lisa Palmer: So we have conviction that cap rates are going to stay where they are, and as anything, and that's in the private market, perhaps with more capital coming into the sector. I think the scenario you described with the cap rates should go down, not up.

Speaker Change: So we have we have conviction that cap rates are going to stay where they are and if anything that's in the private markets, perhaps with more capital coming into the sector. I think that the scenario you described would say cap rates should go down not up.

Linda Tsai: Thanks.

Speaker Change: Thanks.

Michael Mas: Our next question comes from Linda Si with Jeffries. Please proceed with your question. Hi, on the hundred basis points of positive contribution from redevs coming online in 2025 being 2x the average, could you just expand on some of the underlying drivers? Does it have to do with underwriting higher than expected rents? No, Linda, it's really project-specific.

Nick Wibbenmeyer: That was a sneaky way to ask two questions. I think Nick really did already address the, I believe, the transactions market, but maybe if he could just touch on, because he mentioned that the pools were deeper. So just maybe, Nick, the composition of the kind of the bids that we're seeing, if it's any different, if it's changed at all. Absolutely.

Nick Wibbenmeyer: Absolutely, Ron, appreciate the question, and good morning. No question, the bidding pools are much deeper for assets that we're pursuing and looking at and evaluating, and so where maybe before there were three to five bids, now there's 15 to 20 bids on assets, and so we're definitely watching funds flow into our asset class for all the reasons we're bullish on them that Mike just articulated, and as you would appreciate, a lot of those bidders are institutional, whether they're pension funds, whether they're private equity-backed, et cetera, and so no question seeing a lot of institutional capital pursuing assets right now.

Speaker Change: Our next question comes from Linda Tsai with Jefferies. Please proceed with your question.

Mike Mas: Hey, Ron. Take a look at page 8 of our investor presentation for the quarter, and I think you'll get some good composition with respect to our existing S&O pipeline, and there you'll see that it's roughly 60% shops, 40% And from a timing perspective, we also tell you that only about 15% of that income is going to be recognized in 24. You know, up to 90% of that income will be recognized next year, speaking to our bullish posture on 25.

Mike Mas: I would say, though, that as we think about moving the needle on occupancy, we have some room to run on the anchor front. And we've got some really exciting opportunities that the team is working on. And I thought, I know Alan, may want to color up some of that activity. Yeah, I mean, I guess, Ron, the only thing I would add to that is

Alan Roth: Yeah, I mean, I guess, Ron, the only thing I would add to that to put definitive occupancy on it is that we're at 97.2%, and our historic peaks are 98.5%. So there is certainly runway there.

Floris van Dijkum: There's been a couple of, I'll call them stubborn deals that have been out there that are really right at the goal line right now. So I feel great about the trajectory of where we are. I look at that F&O pipeline, and I'd say the top six that are sitting there are grocery stores that we're really excited to get online. And that will also provide for some ancillary centers of gravity and synergistic merchandising to go with it. So the future is looking great there.

Lisa Palmer: Our next question comes from Floris van Dijkum with Compass Point. Please proceed with your question.

Linda Tsai: Hi, under 100 basis points of positive contribution from Readouts coming online in 2020 five being two X. The average could you just expand on some of the underlying drivers does it have to do with underwriting higher than expected rents.

Linda Tsai: Hey morning guys. Lisa, I wanted to ask you a question.

Speaker Change: No wonder it's really project specific.

Michael Mas: You know, going back a little bit in time, recall our development redevelopment Python, which we talk about in spirituality. Over the last several years, have been more balanced to read about. So, you know, if you go back several years, that's us kind of working through much of the opportunity that we acquired in the Equity One larger, frankly. So, these projects are now largely well on their way. They've been constructed, they've been leased, and we're delivering that income into same property pool. So, it's more a function of the quantum of the projects than it is the rate on the on the ramp.

Speaker Change: Back a little bit in time recall, our development redevelopment pipeline, which we talk about in totality over the last several years have been more balanced two redevelopments.

Speaker Change: So you know and if you go back several years that that's us kind of.

Speaker Change: More of a function of the quantum of the projects then it is the <unk>.

Operator: Williams, which, by the way, adds to our transparency and visibility, we feel really good about delivering this on us. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions.

Speaker Change: But which by the way adds to our transparency and visibility that we feel really good about delivering those hours.

Lisa Palmer: It's more of a bigger picture question, perhaps, but I think you're probably uniquely in a position to answer something like this. Obviously, there's the news that Blackstone is looking at one of your peers. There are private formations, and the fact that interest rates are likely coming down in September. You talked a little bit about your implied cap rates being at 7% back when you bought back the stock. Obviously, your stock price is more than 10% higher, so it's gone down a little bit, but I'm curious to hear your sense.

Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.

Tyo Okusana: Our next question comes from Tyo Okusana, with Deutsche Bank. Please proceed with your question. Hi, yes, good afternoon, everyone. Congrats on the quarter.

Lisa Palmer: Where are cap rates in the shopping center sector headed, in your view, and do you think that we could see some of the cap rate expansion retrace itself over the next, you know, 12 to 18 months as capital comes in, as interest rates come down, and, frankly, as growth and IOR from assets still appear pretty, pretty, pretty interesting?

Speaker Change: Our next question comes from Tayo Okusanya with Deutsche Bank. Please proceed with your question.

Lisa Palmer: Uh, Floris, thanks for the question.

Hi, Yes, good afternoon, everyone congrats on the quarter.

Tyo Okusana: In regards to comments occupancy, curious if you could help us think about what that could look like going into 2025. Again, occupancy is already pretty high. You have a very large pipeline, but you're also going through very strong new things as well.

Speaker Change: In regards to commenced occupancy.

Tayo Okusanya: Just if you could help us think about what that could look like going into 'twenty 25, again occupancy is already pretty high you have a very large pipeline, but you're also going through very strong leasing as well. So just kind of curious where you think that could end up.

Tyo Okusana: So it's just kind of curious what you think back in the building over the course of the next 12 months, and what suit could look like over the next 12 months.

Speaker Change: Over the course of the next 12 months and what snow could look like over the next 12 months.

Lisa Palmer: Floris, thanks for the question. I would go back to the conviction that we have with regard to what we believe is a meaningful discount to private market values. We would not have executed the share repurchase. So I don't believe that cap rates are rising in the future. And with the cost of financing potentially going down, if we see that, I think that our product type, grocery-anchored, higher quality shopping centers, we've seen it throughout what we thought should be a time when cap rates would rise, that cap rates were really sticky.

Michael Mas: Hey, Tyo, I appreciate the question, and I promise we'll do much more visibility in 2025 on a granular level at when it's the right time. But again, I'll point you to that page 7, at 220 basis points. I'll reflect you to the article, comment the occupancy in changes, and in really good years, we can move that number by about 100 basis points. And if you recall, it's in our investor materials, but every 10 basis points of percent commenced increase can contribute up to 15 basis points, the same property growth. So that's, you know, that's where we get comfortable indicating that the contribution of redevelopment, which is leading commence occupancy of being 100 basis points, you know, 100 basis points through the 15 bits would give us about 150 basis points of potential growth.

Speaker Change: Let me tell you I appreciate the question and I promise, we'll get much more visibility of 2025 odd graduate level at when it's the right time, but again I'll point you to that page seven of 220 basis points all reflected through the our historical commenced occupancy changes in a really good year.

Speaker Change: We can move that number by about 100 basis points.

Speaker Change: And if you recall.

Speaker Change: It's in our Investor materials that every 10 basis points per cent commenced increase.

Speaker Change: Can contribute up to 15 basis points to same property growth. So that's you know, that's where we get comfortable indicating that the contribution of redevelopment with it which is moving to commence occupancy being 100 basis points.

Speaker Change: 100 basis points.

Speaker Change: 15 bps would get us about 150 basis points of potential growth again timing matters here. So I don't want to get too into the weeds on on 2025, but I think that should help you understand and appreciate the the opportunity set in front of us and I would just encourage you to spend some time on that page seven in our <unk>.

Michael Mas: Again, timing matters here, so I don't want to get too into the weeds on 2025. But I think that should help you understand and appreciate the opportunity set in front of us. And I would just encourage you to spend some time on that page 7 in our investor materials.

Speaker Change: Materials.

Alex Vagin: Our next question comes from Alex Vagin with Bear. Please proceed with your question. Hi, good morning, and thanks for taking my question. Kind of curious about the competition that Regency is seeing in the Northeast, and is there anything specific to the region to explain what's driving the increased activity there?

Speaker Change: Yeah.

Linda Tsai: Our next question comes from Linda Tsai with Jeffries. Please proceed with your question. Hi.

Lisa Palmer: And that's because our product type offers that sustainability and stability of cash flows. So we have conviction that cap rates are going to stay where they are. And if anything, and that's in the private market, perhaps with more capital coming into the sector, I think this is the scenario you described where a cap rate should go down, not up. Thank you. Our next question comes from Linda Tsai.

Speaker Change: Our next question comes from Alex <unk> with Baird. Please proceed with your question.

Hi, good morning, and thanks for taking my question.

Kind of curious about the competition that regency is seeing in the north East and is there anything specific to the region to explain what's driving the increased activity there.

Alan Roth: Well, I'm not sure we'll understand the question: increased transaction activity. Yeah, sorry, the increased transaction activity. Yeah, I would just tell you a couple of things that make appreciate the question out. So a couple of things, obviously the acquisition of UBP. This kept our team up there very, very active and increased our presence throughout that market. But a lot of us also just timing. And so, although this quarter we were very active in the Northeast and very happy with the opportunities that have been presented. We're seeing a lot of activity across the country.

Speaker Change: Well I'm not sure we understand the question and increased transaction activity.

Speaker Change: Yeah, sorry, the increased transaction activity.

Mike Mas: No Linda, it's really project specific. Going back a little bit in time, you recall our development redevelopment pipeline, which we talk about in totality, over the last several years has been more balanced to redevelopments. So, you know, and if you go back several years, that's us kind of working through much of the opportunity that we acquired in the Equity I merger, frankly. So these projects are now largely well on their way.

Speaker Change: Yeah.

Mike Mas: They've been constructed, they've been leased, and we're delivering that income into the same property pool. So it's more a function of the quantum of the projects than it is the rates of the rent, which, by the way, adds to our transparency and visibility. We feel really good about delivering.

Mick: Yeah, I would just tell you a couple of vendors as Mick I. Appreciate the question So couple.

Speaker Change: A couple of things obviously, the acquisition of UBB, which kept our team up there very very active and has increased our presence throughout that market.

Speaker Change: But a lot of it's also just timing and so although this quarter, we were very active in the northeast and very happy with the opportunities that had been presented them, we're seeing a lot of activity across the country and so as we move into future quarters, I think you'll see that activity be geographically disbursed more than it was this past quarter. So continues to continued.

Alan Roth: And so, as we move into future quarters, I think you'll see that activity be geographically dispersed more than it was this past quarter. So continued, continued opportunities of presenting themselves. And each of my markets at this point.

Speaker Change: <unk> opportunities are presenting themselves.

Speaker Change: And each of our markets at this point.

Michael Mas: Hi, next question comes from Mike Mueller with J.P. Morgan. Please proceed with your question. Yeah, hi. I guess between IRFDAT, the West Port acquisition and the Northeast Center, you have under contract. It seems like you put a lot of capital to work up here recently. When you're looking at the broader pipeline that you see today, are the opportunities more geographically diverse or still kind of concentrated? Mike, yeah, we're definitely seeing opportunities just to go. And so it is just timing related, this quarter, as it relates to the Northeast. And I think what they're doing a great job continuing to find opportunities, but I know the Southeast region, the West region, and the Central region, is anxiously awaiting for some announcements and opportunities they're working on as well.

Mike Mas: Yes, good afternoon, everyone. Congratulations on the quarter. In regards to commence occupancy, curious if you could help us think about what that could look like going into 2025. Again, occupancy is already pretty high, you have a very large snow pipeline, but you're also going through very strong leasing as well. So, just kind of curious where you think that could end up going over the course of the next 12 months and what snow could look like over the next 12 months.

Tayo Okusanya: As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions. Our next question comes from Tayo Okusana with Deutsche Bank. Please proceed with your question.

Speaker Change: Our next question comes from Mike Mueller with Jpmorgan. Please proceed with your question.

Alec Fajan: Let me tell you, I appreciate the question, and I promise we'll get much more visibility in 2025 on a grander level when it's the right time, but again, I'll point you to page 7, that 220 basis points. I'll show you our historical commenced occupancy changes, and in really good years, we can move that number by about 100 basis points. And if you recall, it's in our investor materials, but every 10 basis points of percent commenced increase can contribute up to 15 basis points to same property growth.

Alec Fajan: So that's, you know, that's where we get comfortable indicating that the contribution of redevelopment, which is moving to commence occupancy, would be in the 100 basis points. You know, 100 basis points through the 15 BIFs would give us about 150 basis points of potential growth. Again, timing matters here, so I don't want to get too into the weeds on 2025. But I think that should help you understand and appreciate the opportunities set in front of us. And I would just encourage you to spend some time on that, page 7 in our investor materials. Our next question comes from Alec Fajan with Baird. Please proceed with your order.

Alec Fajan: Our next question comes from Alec Fajan with Baird. Please proceed with your question.

Mike Mueller: Yeah, Hi, I guess between Earth that the Westport acquisition in the Northeast Center you have under contract. It seems like you've put a lot of capital to work up here recently.

Nick Wibbenmeyer: I'm not sure we understand the question: increased transaction activity.

Speaker Change: When youre looking at the broader pipeline that you see today or are the opportunities more geographically diverse or still kind of concentrated.

Nick Wibbenmeyer: Yeah, sorry.

Mike Mueller: Mike Yeah, we're definitely seeing opportunities coast to coast and so it is just timing related this quarter as it relates to the northeast and our team up there is doing a great job continuing to find opportunities, but I know the southeast region, our west region. The Central region is Oh.

Nick Wibbenmeyer: Transaction Activity. Yeah, sorry about the increased transaction activity.

Nick Wibbenmeyer: Yeah, I would just tell you a couple of things. This is Nick. I appreciate the question.

Nick Wibbenmeyer: So a couple things. Obviously, the acquisition of UBP has kept our team up there very, very active and increased our presence throughout that market. But a lot of it is also just timing.

Nick Wibbenmeyer: And so although this quarter we were very active in the Northeast and very happy with the opportunities that have been presented, we're seeing a lot of activity across the country. And so as we move into future quarters, I think you'll see that activity be geographically dispersed more than it was this past quarter. So continued opportunities are presenting themselves in each of our markets at this point. Our next question comes from Mike Mueller with J.P. Morgan. Please proceed with your question. Yeah.

Mike Mueller: Our next question comes from Mike Mueller with J.P. Morgan. Please proceed with your question. Yeah, hi.

Nick Wibbenmeyer: Mike, yeah, we're definitely seeing opportunities coast to coast. And so it is just timing-related this quarter as it relates to the Northeast. And our team up there is doing a great job continuing to find opportunities, but I know the Southeast region, the West region, the Central region is anxiously awaiting some announcements on opportunities they're working on as well. And so we feel good about the opportunities we're seeing all around the country at the moment.

Mike Mueller: So we are waiting for some announcements on opportunities that we're working on as well and so we feel we feel good about the opportunities we're seeing all around the country at the moment.

Michael Mas: And so we feel we feel good about the opportunities we're seeing all around the country at the moment.

Operator: We have reached the end of the question and answer session.

Lisa Palmer: We have reached the end of the question and answer session. I'd now like to turn the call back over to Lisa Palmer for closing comments.

Mike Mueller: We have reached the end of the question and answer session I'd now like to turn the call back over to Lisa Palmer for closing comments.

Lisa Palmer: I'd now like to turn the call back over to Lisa Palmer for closing comments. I want to thank all of you for spending the last two hours with us. We appreciate your interest in Regency. Have a great weekend off. Thank you.

Lisa Palmer: I want to thank all of you for spending the last approximately hour with us. We appreciate your interest in Regency. Have a great weekend, all. Thank you.

Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Lisa Palmer: I want to thank all of you for spending the last oxalate hour with us and we appreciate your interest in regency.

Lisa Palmer: Have a great weekend. Thank you.

Operator: This concludes today's conference. You may disconnect your lines at this time. Then we thank you for you.

Speaker Change: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.