Q3 2025 Regency Centers Corp Earnings Call

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 Kristina Calgary.

Thank you you may begin.

Good morning, and welcome to Regency Centers' third quarter 2025 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 Investment Officer.

As a reminder, today's discussion may contain forward looking statements about the companys 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 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 include.

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 as a reminder, given the number of participants we have on the call today, we respectfully ask that you limit your questions to one and then rejoin the queue with any additional follow up questions Lisa.

Thank you Christy and good morning, everyone.

We're proud to share another quarter of outstanding results highlighted by strong same property NOI growth and earnings growth.

These are these results reflect the continued success of our team and leasing space commencing.

Commencing our ethanol pipeline and driving rents higher amid robust operating fundamentals and strong demand at our shopping centers are tenants remained healthy which is evident in sustained sales strength and historically low bad debt.

Our earnings growth is further amplified by the successful execution of our capital allocation strategy. This year.

Our investments team has accretively deployed more than $750 million of capital into high quality opportunities, including acquisitions ground up development and redevelopment.

Speaker #3: Greetings and welcome to Regency Centers Corporation . Third quarter 2025 Earnings Conference Call . At this time , all participants are on a listen only mode .

By year end, we expect to have started around $300 million of projects, bringing total starts to an impressive $800 million over the past three years I am so proud of our team for this accomplishment.

Speaker #3: 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 .

I'll, let Nick talk in just a few minutes about the specific development projects. We started in the third quarter, but I want to emphasize again, how ground up development is truly a key differentiator for regency. We are the only national developer of grocery anchored shopping centers at scale in an environment of otherwise limited.

New supply.

We're building the types of assets that we would acquire and were doing so accretively and with manageable risk, creating meaningful net asset value with yields well ahead of market cap rates.

Given our exceptional results and a continued strong fundamental backdrop, we are raising our full year earnings growth outlook, and reflecting that strong performance, increasing our dividend by more than 7%.

Speaker #4: These are based on management's current beliefs and expectations and are subject to various risks and uncertainties . It's possible that actual results may differ materially from those suggested by these forward looking statements .

Our strong and consistent track record of dividend increases over time is very important to us and driving total shareholder returns while also maintaining a substantial level of free cash flow.

Speaker #4: 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 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 .

Before turning it over to Allen I want to say again, how proud I am of our team's performance this year.

And as we look ahead, we believe our competitive advantages position us well to drive sustainable cash flow growth from our essential grocery anchored shopping centers in suburban trade areas with strong demographics.

Speaker #4: The 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 on our caution on forward looking statements .

We're a leading national development platform strong balance sheet and the best team in the business.

Thank you Lisa and good morning, everyone.

Speaker #4: Also applies to these presentation materials . As a reminder , given the number of participants we have on the call today , we respectfully ask that you limit your questions to one and then rejoin the queue with any additional follow up questions .

Our team did an incredible job producing another quarter of outstanding results growing same property NOI by nearly 5% with strong base rent growth is the primary contributor at four 7%.

Speaker #4: Lisa .

Speaker #5: Thank you . Christie . Good morning everyone . We're proud to share another quarter of outstanding results highlighted by strong same property NOI growth and earnings growth .

This outperformance is a culmination of a record amount of new leasing in recent years and accelerating rent commencement from our S. N O pipeline.

And bind with favorable bankruptcy outcomes and historically low levels of bad debt.

Speaker #5: These are these results reflect the continued success of our team in leasing space . Commencing our snow pipeline and driving rents higher amid robust operating fundamentals and strong demand at our shopping centers .

Our tenant base is healthy and across our portfolio. We continue to experience significant demand from nearly all retailer categories and for both anchor and shop spaces.

Speaker #5: Our tenants remain healthy , which is evident in sustained sales strength and historically low bad debt . Our earnings growth is further amplified by the successful execution of our capital allocation strategy this year .

Our same property percent leased rate sits at 96, 4% and we remain confident that we can exceed prior peak levels in this favorable retail environment with limited new supply and sustained strong demand for our high quality space.

Speaker #5: Our investments team has deployed more than $750 million of capital into high quality opportunities , including acquisitions , ground up development and redevelopment .

Looking ahead, our leasing pipeline is robust.

Ruled by interest from vibrant restaurants, leading health and wellness brands off price retailers and of course, our best in class grocers.

Speaker #5: By Our strong and consistent track record of dividend increases over time is very important to us in driving total shareholder returns , while also maintaining a substantial level of free cash flow before turning it over to Alan .

Speaker #5: year end , we expect to have started around $300 million of projects , bringing total starts to an impressive $800 million over the past three years .

In fact, we signed three new grocery leases in the third quarter alone unlocking exceptional redevelopments that will drive enhanced merchandising and better foot traffic to these assets all at highly accretive returns.

Our same property commenced rate increased by 40 basis points in the quarter to 94, 4% with eight anchors rent commencing including several key openings at redevelopment projects.

At our hub at Norwalk asset located in Fairfield County, Connecticut, the long awaited target opened in the quarter to strong crowds we.

We also opened a brand new Publix at our Cambridge square asset in Atlanta, and in Nordstrom rack at our Pine Ridge Square Center in South Florida.

All of these retailers reported exceptional openings and we couldnt be more pleased with the upgraded merchandising and success we've seen at each of these projects.

While we've made meaningful progress converting our pipeline into lease Commencements were also actively back filling our pipeline with newly executed leases.

Our 200 basis points of pre leasing now represents approximately $36 million assigned incremental base rent.

Speaker #5: I want to say again how proud I am of our team's performance this year . And as we look ahead , we believe our competitive advantages position us well to drive sustainable cash flow growth from our essential grocery anchored shopping centers in suburban trade areas with strong demographics to our leading national development platform , strong balance sheet and the best team in the business , Alan .

Additionally, we have another 1 million square feet of leases in negotiation representing visibility to continued strong leasing activity.

We also continue to have great success in driving higher rent growth.

Cash re leasing spreads were strong at 13% in Q3, while GAAP rent spreads were near record high levels at 23% demonstrating our ability to achieve strong mark to market rent growth, while also embedding meaningful annual rent steps into our leases.

Speaker #6: Thank you , Lisa , and good morning , everyone . Our team did an incredible job producing another quarter of outstanding results , growing same property NOI by nearly 5% with strong base rent growth as the primary contributor at 4.7% .

Importantly, we are also being prudent with our leasing capital investment.

In closing I am so proud of our team's great work strengthen retailer demand leasing fundamentals and tenant health indicators remain favorable and we have great visibility into continued above trend same property NOI growth in 2026, Nick.

Speaker #6: This outperformance is a culmination of a record amount of new leasing in recent years , and accelerating rent commencement from our snow pipeline , combined with favorable bankruptcy outcomes and historically low levels of bad debt , our tenant base is healthy and across our portfolio , we continue to experience significant demand from nearly all retail categories .

Thank you Alan and good morning, everyone.

As Lisa mentioned this was another very active quarter for accretive investment activity.

Speaker #6: And for both anchor and shop spaces . Our same property percent leased rate sits at 96.4% , and we remain confident that we can exceed prior peak levels in this favorable retail environment with limited new supply and sustained strong demand for our high quality space .

We're seeing great momentum in starting new development and redevelopment projects executing on our in process pipeline as planned and continuing to successfully source acquisition opportunities.

Since our last update a quarter ago, our most significant progress has been in growing our development and redevelopment pipeline.

We started over a $170 million of projects during the third quarter, bringing our year to date total to more than $220 million.

Speaker #6: Looking ahead , our leasing pipeline is robust , fueled by interest from vibrant restaurants , leading health and wellness brands , off price retailers , and of course , our best in class grocers .

Our starts in the quarter included two exciting new ground up projects.

Village will be a 50000 square foot sprouts anchored center located in the Bay area at the front door of a thriving master planned community.

Speaker #6: In fact , we signed three new grocer leases in the third quarter alone , unlocking exceptional redevelopments that will drive enhanced merchandising and better foot traffic to these assets , all at highly accretive returns .

The village at seven times will be a 240000 square foot Publix anchored center in the heart of Jacksonville is well established retail node.

Speaker #6: Our same property commenced , rate increased by 40 basis points in the quarter to 94.4% , with eight anchors rent commencing , including several key openings at redevelopment projects at our hub at Norwalk , asset , located in Fairfield County , Connecticut , the long awaited target opened in the quarter to strong crowds .

The property will serve as the commercial hub of electronic Master planned community that will also include over 600 homes.

Given our success in bringing projects to fruition.

We now expect approximately $300 million of starts in 2025.

As the only active national developer of high quality neighborhood shopping centers, leading grocers remain engaged with us on new projects across our platform.

Speaker #6: We also opened a brand new Publix at our Cambridge Square asset in Atlanta and a Nordstrom Rack at our Pine Ridge Square Center in South Florida.

Our team continues to execute well on our in process development and redevelopment projects, which now totals more than $650 million with strong leasing activity and blended returns exceeding 9%.

Speaker #6: All of these retailers reported exceptional openings, and we couldn't be more pleased with the upgraded merchandising and success we've seen at each of these projects.

On the transaction side, we had another active quarter as well.

Speaker #6: While we've made meaningful progress converting our snow pipeline into lease commencements , we are also actively backfilling our pipeline with newly executed leases .

As mentioned on our last call, we acquired the <unk> property $350 million RMB portfolio in South Orange County at the beginning of the quarter.

Speaker #6: Our 200 basis points of pre-leasing now represents approximately $36 million of signed incremental base rent. Additionally, we have another 1,000,000 sq. ft. of leases in negotiation, representing visibility to continued strong leasing activity.

As a reminder, this.

This was an off market Ob units deal with the value proposition of owning regions, who stopped playing a meaningful role in seller motivation.

We've already fully integrated these centers into our platform and are seeing them perform very well.

Speaker #6: We also continue to have great success driving higher rent growth , cash releasing spreads were strong at 13% in Q3 , while GAAP rent spreads were near record high levels at 23% .

We also purchased our JV partner's interest in three grocery anchored centers during the quarter, including two in Houston and one in Northern New Jersey.

We welcome these opportunities to convert to full ownership of high performing centers in strong markets.

Speaker #6: Demonstrating our ability to achieve strong mark to market rent growth while also embedding meaningful annual rent steps into our leases . Importantly , we are also being prudent with our leasing capital investment .

In closing.

Our team is actively working to source attractive opportunities and further build our future investment pipeline.

The opportunity set for new development projects remains limited.

Hi wheel effect is real.

Speaker #6: In closing, I am so proud of our team's great work. Strength and retailer demand leasing fundamentals and tenant health indicators remain favorable, and we have great visibility into continued above-trend performance.

Ongoing success uniquely positions us to take advantage of future opportunities to create value.

Thank you Nick.

As you've heard this morning, the regency team delivered another outstanding quarter of results driven largely by the strength of our leasing efforts the health of our tenant base and the value, we're creating from capital allocation.

Speaker #6: Same property NOI growth in 2026 . Nick .

Speaker #7: Thank you, Allen, and good morning, everyone. As Lisa mentioned, this was another very active quarter for accretive investment activity. We're seeing great momentum in starting new development and redevelopment projects and executing on our in-process pipeline as planned.

This is reflected in earnings in same property NOI growth that again exceeded our expectations.

As a result, we now anticipate same property NOI growth of five and a quarter to five 5% with the increase driven by lower credit loss and higher rent commencement from our SNF pipeline.

Speaker #7: And continuing to successfully source acquisition opportunities since our last update a quarter ago , our most significant progress has been in growing our development and redevelopment pipeline .

Notably within that expectation, we have decreased our credit loss guidance range to 50 to 75 basis points.

Speaker #7: We started over $170 million of projects during the third quarter , bringing our year to date total to more than 220 million . Our starts in the quarter included two exciting new ground up projects .

This higher organic growth is terrific is driving our increased full year outlook for earnings per share with our new range is now calling for growth of mid 7% for NAREIT <unk> and mid 6% for core operating earnings.

Speaker #7: Ellis Village will be a 50,000 square foot sprouts anchored center located in the Bay area at the front door of a thriving master planned community .

And as Lisa mentioned, we also raised our dividend by more than 7% this quarter.

Our balance sheet remains strong with leverage squarely within our target range of five to five five times.

Speaker #7: The village at Seven Pines will be a 240,000 square foot Publix anchored center in the heart of Jacksonville's well-established retail node . The property will serve as the commercial hub of an iconic master planned community that will also include over 1600 homes .

We're generating significant free cash flow to continue funding external growth.

And we have nearly full availability on our $1 5 billion credit facility.

Youll recall that late last year, we issued $100 million of forward equity.

Speaker #7: Given our success in bringing projects to fruition , we now expect approximately $300 million of starts in 2025 . As the only active developer of high quality neighborhood shopping centers , leading grocers remain engaged with us on new projects across our platform .

To update you on timing. Please know that we settled $50 million in August and will settle the balance by the end of October.

Looking ahead to 2026.

We plan to provide detailed guidance when we report Q4 results in February but I want to offer some early thoughts on our current expectations for growth as we work to finalize our plan.

Speaker #7: Our team continues to execute well on our in-process development and redevelopment projects , which now totals more than $650 million with strong leasing activity and blended returns exceeding 9% on the transaction side , we had another active quarter as well .

We expect same property NOI growth in the mid 3% area, including a credit loss environment similar to 2025.

We expect total NOI growth in the mid 6% area.

Speaker #7: As mentioned on our last call , we acquired the five property , $350 million RMB portfolio in South Orange County . At the beginning of the quarter .

Which includes our expectation of delivering approximately $10 million of incremental NOI from ground up development projects currently in process.

Speaker #7: As a reminder , this was an off market op units deal with the value proposition of owning Regency stock , playing a meaningful role in cellular motivation .

As Lisa and Nick discussed.

Development is an important differentiator for regency as you consider our external growth prospects and we are gratified to realize a more significant impact from the successful projects as they lease towards stabilization.

Speaker #7: We've already fully integrated these centers into our platform and are seeing them perform very well . We also purchased our JV partner's interest in three grocery anchored centers during the quarter , including two in Houston and one in northern new Jersey .

NAREIT <unk> growth is expected to be in the mid 4% area Rep.

Representing continued solid growth after taking into account the impact of current year and planned 2026 debt refinancing activity, which collectively is expected to have an impact on growth of approximately 100 to 150 basis points.

Speaker #7: We welcome these opportunities to convert to full ownership of high-performing centers and strong markets. In closing, our team is actively working to source attractive opportunities and further build our future investment pipeline.

Speaker #7: While the opportunity set for new development projects remains limited , our flywheel effect is real and our ongoing success uniquely positioned us to take advantage of future opportunities to create value by .

Organic same property NOI growth of five and a quarter to five 5%.

And internally funded and growing development and redevelopment pipeline evidenced in regency's unique competitive competitive advantage.

And a rated balance sheet prepared to weather all seasons and an outlook for continued growth even through the realities of today's higher rate environment.

Speaker #8: Thank you Nick . As you've heard this morning , the Regency team delivered another outstanding quarter of results , driven largely by the strength of our leasing efforts , the health of our tenant base , and the value we're creating from capital allocation .

It's clear that regency's best in class team is operating on all cylinders.

We are happy to take your questions.

Speaker #8: This is reflected in earnings and same property . NOI growth that again exceeded our expectations . As a result , we now anticipate same property NOI growth of five and a quarter to 5.5% .

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

Like to ask a question. Please press star one on your telephone keypad.

Speaker #8: With the increase driven by lower credit loss and higher rent . Commencement from our snow pipeline . Notably , within that expectation , we have decreased our credit loss guidance range to 50 to 75 basis points .

A confirmation tailwind to Kate your line is in the question queue. You May press star two if you'd like to remove your question from the queue.

As a reminder, we ask you limit to one question and rejoin the queue for any additional questions.

Speaker #8: This higher organic growth is driven is driving our increased full year outlook for earnings per share . With our new ranges now calling for growth of 7% for FFO and 6% for core operating earnings .

One moment, please while we poll for questions.

Our first question comes from Greg Mcginniss with Scotiabank. Please proceed with your question.

Speaker #8: And as Lisa mentioned , we also raised our dividend by more than 7% this quarter . Our balance sheet remains strong with leverage squarely within our target range of 5 to 5 and a half times .

Hello. This is victor fatty wallin with Greg Mcginniss can provide some color on this 11 asset distributions reduction with your JV partner.

Options does this transaction open actually for regency.

Speaker #8: We are generating significant free cash flow to continue funding external growth , and we have nearly full availability on our $1.5 billion credit facility .

Sure absolutely. Good morning. This is Nick I appreciate the question.

Regarding <unk> I would start with the fact that they've been a very very good and long term partner of ours and our interests have been aligned for many many years in that portfolio aligns completely with our strategy and we like every asset we own with them.

Speaker #8: You'll recall that late last year , we issued $100 million of forward equity to update you on timing . Please note that we settled $50 million in August and will settle the balance by the end of October .

Speaker #8: Looking ahead to 2026, we plan to provide detailed guidance when we report Q4 results in February. But I want to offer some early thoughts on our current expectations for growth as we work to finalize our plan.

Challenge, sometimes with these long term partnerships as there is not a perfect way to capital recycle.

So this allowed us to do a mini D K and.

In order for them to own six assets that they now have full control over and we now own five assets at a 100% that we are excited about owning and anticipate owning long term.

Speaker #8: We expect same property NOI growth in the mid 3% area , including a credit loss environment similar to 2025 . We expect total NOI growth in the mid 6% area , which includes our expectation of delivering approximately $10 million of incremental NOI from ground up development projects .

And excited about the partnership on a go forward basis again, because they've been great partners and we expect them to continue to be aligned with our interest on the portfolio, we continue to own together.

Thank you. Thank you.

Speaker #8: Currently in process . As Lisa and Nick discussed , development is an important differentiator for Regency as you consider our external growth prospects and we are gratified to realize a more significant impact from these successful projects as they lease towards stabilization .

Our next question comes from Michael Goldsmith with UBS. Please proceed with your question.

Okay.

Good morning, Thanks, a lot for taking my questions.

Mike I appreciate that the early or the.

Early parameters for 2026, if you will you pointed to same property NOI growth in the mid 3%.

Speaker #8: Nareit FFO growth is expected to be in the mid 4% area , representing continued solid growth . After taking into account the impact of current year and planned 2026 debt refinancing activity , which collectively is expected to have an impact on growth of approximately 100 to 150 basis points .

What's changing from the environment that youre seeing there or can you help bridge to get there and then also you mentioned you expected a credit loss environment similar to 2025 does that mean that your expectations at the start of 2025 or this.

Speaker #8: Organic same property NOI growth of five and a quarter to 5.5% , and internally funded and growing development and redevelopment pipeline evidencing Regency's unique competitive competitive advantage and A-rated balance sheet prepared to weather all seasons and an outlook for continued growth even through the realities of today's higher rate environment .

Historically low bad debt that Lisa mentioned at the beginning of the call.

Is that an applied for next year. Thanks.

Sure Michael.

Let me start with the second I'll just clear that before.

Before I moved to the first in the bridge, we're expecting next year's credit loss provision to look a lot like 2500.

Speaker #8: It's clear that Regency's best-in-class team is operating on all cylinders. We are happy to take your questions.

So I would call that a continuation of really on both fronts, whether its bankruptcy losses or uncollectible lease income.

Speaker #3: 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 .

Better than historical averages so our tenant roster of our taxes as healthy as it's ever been with.

Speaker #3: 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 .

With respect to the bridge I think I think you have to start with an understanding that 2025 before you can appreciate that.

Speaker #3: As a reminder , we ask you to limit to one question and rejoin the queue for any additional questions . One moment please .

Our outlook as we sit here today and by the way we continue to refine our plans.

We feel pretty proud with.

Speaker #3: While we pull for questions . Our first question comes from Greg McGinnis with Scotiabank . Please proceed with your question .

But I think if you if you really think about 25 and think about the components of this year's growth with her with her culminated in todays targeted area of five and a quarter to five 5% a large this is about as much commenced occupancy yet as we have absorbed in this company.

Speaker #9: Hello, this is Victor. I’m on with Greg McGinnis. Can you provide some color on this 11-asset distribution transaction with your partner?

In our history and kudos to the team for building that pipeline through 2024 kudos to the team for delivering medicine in our pipeline into 2025 and they have continued to outperform.

Speaker #9: What options does this transaction open ? Actually for Regency ?

Speaker #7: Sure , absolutely . Good morning . This is Nick . Appreciate the question . Regarding Gree . I would start with the fact that they've been a very , very good and long term partner of ours .

Expectations are that deliberate and.

We are quickly.

Speaker #7: And our interest have been aligned for many , many years . And that portfolio aligns completely with our strategy . And we like every asset we own with them .

We've quickly absorbed space than we are.

Okay.

Levels of <unk>.

NOI that our levels of occupancy that are what we call peak levels.

Speaker #7: The only challenge sometimes with these long term partnerships is there's not a perfect way to capital recycle . And so this allowed us to do a mini DIC in order for them to own six assets .

Bob.

Together with that.

We have benefited from the extreme uptick in our recovery rate.

Speaker #7: They now have full control over, and we now own five assets at 100% that we are excited about owning and anticipate owning long term. We are also excited about the partnership on a go-forward basis.

All of that that recovery rate benefit in 2012, 2025 is about 100 basis points.

So.

Reflecting on 2025 as I think about a mid 3% area of same property growth next year, all of which nearly all of which coming from base rent.

Speaker #7: Again , because they've been great partners , we expect them to continue to be aligned with our interest on the portfolio . We continue to own together .

I think that's pretty pretty darn good growth on top of really good growth in 2025.

Speaker #9: Thank you .

Speaker #10: Thank you .

Speaker #3: Our next question comes from Michael Goldsmith with UBS . Please proceed with your question .

So we still feel really confident with our outlook, yeah, and I would just like to emphasize that I think Mike said, it really well.

Speaker #11: Good morning . Thanks a lot for taking my questions . Mike . Appreciate the early or the early parameters for 2026 . If you will .

But.

Mid 3% same property NOI.

NOI growth a year after what we're doing this year and then adding on top of that the contributions that we're getting from development with a 6% NOI growth.

Speaker #11: You know , you pointed to the same property NOI growth in the mid 3% . You know what's changing from the environment that you're seeing there .

We feel really good about how well positioned we are for our future growth.

Speaker #11: Or can you help bridge to get there . And then also you mentioned a you expected a credit loss environment similar to 2025 .

Thanks, Michael Thank you very much.

Our next question comes from Cooper Clark with Wells Fargo. Please proceed with your question.

Speaker #11: Does that mean like your expectations at the start of 2025 ? Or this , you know , historically low bad debt that Lisa mentioned that the beginning of the call that applied for next year .

Great. Thanks for taking the question and I appreciate the early 'twenty six thoughts I guess, how should we thinking be thinking about the potential on development and redevelopment starts.

Speaker #11: Thanks .

Into next year, considering an increase was uncompetitive transaction market and strong leasing and then would also appreciate any color on the mix between ground up and redevelopment as you think about starts moving forward.

Speaker #8: Sure . Michael , let me start with the second and I'll just clear that before I move to the first and the bridge , we're expecting next year's credit loss provision to look a lot like 25 ended .

Speaker #8: So we're I would call that a continuation of really on both fronts . Whether it's bankruptcy losses or uncollectible lease come better than historical averages .

Yes Cooper I appreciate the question this is Nick.

So I think Theres a couple of pieces to that so let me just let me just actually step back for your benefit and others. It wasn't that many years ago, we were talking about starting between our development and redevelopment program of $1 billion over the next five years and now fast forward and as we look over our shoulder here as we round third base in 2025, we will have started eight.

Speaker #8: So our tenant , our the roster of our tenants is as healthy as it's ever been . With respect to the bridge , I think I think you have to start with an understanding of 2025 before you can appreciate that our outlook as we sit here today and by the way , we as we continue to refine our plans , we we feel pretty proud with .

<unk> hundred million dollars just in the last three years and so as we've been articulating we continue to feel really good about finding more than our fair share of investment opportunities in our development and redevelopment program.

Speaker #8: But I think if you if you really think about 25 and think about the components of this year's growth with their with their culminating in today's targeted area of five and a quarter to 5.5% , a large this is about as much commenced occupancy as we have absorbed in this company in in our history .

So I would say as we look forward, we would expect to continue to find more than our fair share in that run rate. We feel good about as we move into 2026 and the team's working everyday to find even more opportunities and where we find those we will take advantage of those and then in terms of the divide between development and redevelopment look wherever we can invest our capital accretively.

Speaker #8: And kudos to the team for building that snow pipeline through 2024 . Kudos to the team for delivering that snow pipeline into 2025 .

We're going to lean into but because of the success we've been having on the development program. As you can see the split is starting to lean into the ground up development and so I expect that to continue if you look at our in process. Today. This is the first quarter in quite some time our in process developments out number from an investment standpoint, our redevelopments.

Speaker #8: And they've continued to outpace expectations of that delivery and we are quickly we've quickly absorbed space and we're approaching levels of NOI that are levels of occupancy that are what we would call peak levels .

So we have now flipped the script, where the developments are outweighing redevelopments in.

Speaker #8: Together with that, we have benefited from an extreme uptick in our recovery rate. All of that, that recovery rate benefit in 2020 and 2025 is about 100 basis points.

As I look more near term into 2026, I would expect that to be the case as well.

Great. Thank you.

Our next question comes from Sameer Canal with Bank of America. Please proceed with your question.

Speaker #8: So if you reflecting on 2025 , as I think about a mid 3% area of same property growth next year , all of which nearly all of which coming from base rent , I think that's pretty , pretty darn good growth on top of really good growth in 2025 .

Good morning, everybody, Mike just looking at your net effective rent page.

When I looked at the new leases just curious there seems to be a little bit more leasing being done on the new leasing being done on the anchor side.

Versus shops, which you go back last several quarters has been that the mix has been primarily shop space. So just can you provide a bit more color. It was there something like did you get.

Speaker #8: So we still feel really confident with our outlook .

Speaker #5: Yeah . And I would just like to emphasize that I think Mike said it really well . But mid 3% same property NOI growth a year after what we're doing this year .

Boxes back is this related to some of the developments.

The development side, just trying to understand what why that mixes.

Speaker #5: And then, adding on top of that, the contributions that we're getting from development was a 6% NOI growth. We feel really good about how well positioned we are for our future growth.

Gone up for anchors here. Thanks.

Sameer This is Alan good morning, and I. Appreciate the question. So no. It's just an anomaly for the quarter, we happened to do more anchor transactions does not development driven per se.

Speaker #4: Thanks , Michael .

Speaker #11: Thank you very much .

In the quarter and again I'd say 10 acre transactions came in vast what's also skewing I think with the lower rent that you are saying, but importantly, then on slide you over and go look at the cash rent spreads and the GAAP rent spreads that happen for the quarter. So.

Speaker #3: Our next question comes from Cooper Clarke with Wells Fargo . Please proceed with your question .

Speaker #12: Great . Thanks for taking the question and appreciate the early 26 thoughts , I guess . How should we think be thinking about the potential on development and redevelopment starts into next year ?

Nothing more than coincidental timing.

Speaker #12: Considering an increasingly competitive transaction market and strong leasing , and then would also appreciate any color on the mix between ground up and redevelopment .

A lot of anchor transactions happened to come through the queue and quarter three.

Okay.

Thanks, Dan.

Speaker #12: As you think about starts moving forward .

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

Speaker #7: Yeah , Cooper , appreciate the question . This is Nick . So I think there's a couple pieces to that . So let me just let me just actually step back for your benefit and others .

Hey, just wanted to touch on acquisitions and because we definitely appreciate the early 'twenty six.

Speaker #7: It wasn't that many years ago we were talking about starting between our development and redevelopment program, $1 billion over the next five years.

Same store, but on the acquisition front just number one just on just cap rates or IRR is just what are you guys seeing in the market and how that's trended and we also noticed a lot of the JV transactions.

Speaker #7: And now, fast forward, as we look over our shoulder here, as we round third base in 2025, we will have started $800 million just in the last three years.

In the quarter or I guess, you still have over 100 assets and those JV is is there more incremental willingness.

Speaker #7: And so, as we've been articulating, we continue to feel really good about finding more than our fair share of investment opportunities in our development.

To sort of sell or buy those assets out thanks.

Speaker #7: And redevelopment program . And so I would say , as we look forward , we would expect to continue to find more than our fair share in that run rate .

I appreciate the question Ronald.

Let me start with your second question first which is the joint venture side. The short answer is yes, I mean, the assets, we own whether we own 100% of rounding with partners. We're excited about owning them and so where there is an opportunity with our partners to buyout their interest we're constantly having those conversations and where the stars align we plan on taking advantage of that.

Speaker #7: We feel good about where we are as we move into 2026, and the team's working every day to find even more opportunities. And where we find those, we will take advantage of them.

Speaker #7: And then in terms of the divide between development and redevelopment , look wherever we can invest our capital creatively , we're going to lean into .

Speaker #7: But because of the success we've been having on the development program , as you can see , the split is starting to lean into the ground up development .

We are obviously.

Setup to transact quickly and we're having those conversations on a very regular basis. So excited about the ones, we were able to execute on last quarter.

Speaker #7: And so I expect that to continue . If you look at our in-process today , this is the first quarter in quite some time , our in-process developments outnumber from an investment standpoint , our redevelopments .

We can't perfectly predict what our partners want to exit in the future, but again, we expect that to continue to be a pipeline on a go forward basis.

Speaker #7: And so we have now flipped the script, where the developments are outweighing redevelopments. As I look more near-term into 2026, I would expect that to be the case as well.

And then in terms of cap rates I will just reiterate the good news for US given the development program. We just spoke about based on Cooper's question is I would just reiterate we don't have to acquire assets to grow.

Speaker #12: Great . Thank you .

Speaker #3: Our next question comes from Sameer Connell with Bank of America . Please proceed with your question .

But where we can find the opportunities to lean in where they match our quality match, our future growth profile, we could fund accretively, we're leaning in and as you can see that's led to over <unk> 5 billion of acquisitions. This year, but that's becoming more difficult in this environment because there is capital flowing into our sector no question about that and so.

Speaker #13: Good morning, everybody. Mike, I'm just looking at your net effective rent page. You know, when I looked at the new leases, I was just curious.

Speaker #13: There seems to be a little bit more leasing being done on the new leasing being done on the anchor side versus shops , which , you know , you go back the last several quarters , it's been the mix has been primarily shop space .

I would have told you last quarter, we'd probably be talking cap rate is five five to six on most core assets now from what we're seeing in the market I would say, it's more of the minus side on five and a half theres a lot of capital chasing these opportunities and so we're going to continue to be true to our business plan make sure we're investing our capital wisely.

Speaker #13: So just can you provide a bit more color ? Is there something like did you get boxes back ? Is this related to some of the development side ?

Speaker #13: Just trying to understand why the mix is gone up for anchors here . Thanks .

Speaker #6: Sameer , this is Alan . Good morning and appreciate the question . So no , it's it's just an anomaly for the quarter .

But also excited to see so many people finally waking up to understand how.

Speaker #6: We happen to do more anchor transactions . It's not development driven per se . In the quarter . And you know , again , I'd say ten anchor transactions came in .

Defensive and quality, our NOI trends are.

And then really quickly I was just like I'm going to reiterate I think.

Mix answer to one of the first questions, we really value our long term partners.

Speaker #6: That's what's also skewing I think what the lower rent that you're seeing . But importantly then I'd slide you over and go look at the cash rent spreads and the gap rent spreads that that happened for the quarter .

And continue to do that and it was not that long ago that Oregon committed even additional capital to us.

Speaker #6: So nothing more than coincidental timing that a lot of anchor transactions happen to come through the Q in quarter three .

You've seen us continue to acquire assets with them into that partnership. So that's one that we're growing for example, so again, we value long term partnerships are long term partners.

Speaker #10: Thanks , mayor .

We often are the best buyer if there's a reason that the partner wants to exit and that's when we have those opportunities.

Speaker #3: Our next question comes from Ronald Camden with Morgan Stanley. Please proceed with your question.

Speaker #14: Hey , I just want to touch on acquisitions because we definitely appreciate the early 26 thoughts on On Same store , but on the acquisition front , just number one , just on just cap rates or IRR .

Thanks, Ron.

Our next question comes from Sydney ROM with Barclays Bank. Please proceed with your question Hi.

Hi, guys. Good afternoon, I was wondering if you could give a little bit of color on what your expectations are for sovereign spreads I mean can continue.

Speaker #14: Just what are you guys seeing in the market and how that's trended . And we also noticed a lot of the JV transactions in the quarter .

Expect them to continue to be around this percentage or.

Speaker #14: I guess you still have over 100 assets in those JVs. Is there more incremental willingness to sort of sell or buy those assets out?

Thank you.

Good morning, and thank you for the question look I'm really proud of the trajectory we have been on and how committed the team is to ensuring not just these elevated levels of rent spreads, but even more importantly, the GAAP spreads that we always talk about any continued embedded rent steps.

Speaker #14: Thanks .

Speaker #7: Appreciate the question . Ronald . Let me start with your second question . First , which is the joint venture side , the short answer is yes .

Speaker #7: I mean , the assets we own , whether we own 100% , we own them with partners . We're excited about owning them .

So I don't necessarily have a target on it per se, but what I would say as I look back at Q3, new shop leasing, 85% of our shop transactions had 3% or higher in terms of embedded rent steps and.

Speaker #7: And so where there's an opportunity with our partners to buy out their interest , we're constantly having those conversations . And where the stars align , we plan on taking advantage of that .

Speaker #7: We are obviously set up to transact quickly , and we're having those conversations on a very , very regular basis . So excited about the ones we were able to execute on last quarter .

And 25% of our new shops had 4% or higher so the teams are really embracing that long term sustainable approach with these embedded rent steps, while on top of that getting that 13% rent spread.

Speaker #7: We can't perfectly predict when our partners want to exit in the future . But again , we expect that to continue to be a pipeline on a go forward basis .

Youre seeing I will take as much as they are willing to give.

Speaker #7: And then in terms of cap rates , I'll just reiterate the good news for us , given the development program we just spoke about , based on Cooper's question , is , I would just reiterate , we don't have to acquire assets to grow , but where we can find the opportunities to lean in , where they match our quality , match our future growth profile , and we can fund creatively .

And I just believe in this sort of a supply constrained environment, we have an opportunity to continue to lean in.

Thanks, so much.

Our next question comes from Todd Thomas with Keybanc Capital markets. Please proceed with your question.

Speaker #7: We're leaning in and as you can see , that's led to over a half $1 billion of acquisitions this year . But that's becoming more difficult in this environment because there is capital flowing into our sector , no question about that .

Hi, Thanks, Good morning, I, just wanted to revisit the mid 3% same property NOI comments, you said that thats the base rent component, primarily so contractual rent steps and cash re leasing spreads do you expect a further contribution.

Speaker #7: And so I would have told you last quarter , we'd probably be talking cap rates five and a half to six on most core assets .

Speaker #7: Now , from what we're seeing in the market , I would say it's more of the minus side on five and a half .

From the <unk> pipeline in 2026 and can you also speak to.

Speaker #7: There's a lot of capital chasing these opportunities . And so we're going to continue to be true to our business plan , make sure we're investing our capital wisely , but also excited to see so many people finally waking up to understand how defensive and quality our NOI streams are .

What sort of contribution you might anticipate from redevelopment.

In 2006 is that going to be sort of a neutral.

<unk> year over year or do you still expect there to be some.

Some additional growth on top of that from redevelopment.

Speaker #5: Really quickly , I would just like to add I'm going to reiterate , I think was Nick's answer to one of the first questions .

Sure.

Thanks Todd.

I'm happy to dig in a little bit deeper here, but I'm going to leave.

Speaker #5: We really value our long term partners and continue to do that . And it was not that long ago that Oregon committed even additional capital to us .

I'm going to leave some of that detail to our full plan, which will provide to everybody in February.

Yes.

To get to mid threes, it's going to take some occupancy climb and we still see an opportunity and we have some slides in our investor materials that articulate that there remains opportunity in our commenced occupancy percentage to close that gap, we're sending that 200 basis points wide right now the historical averages in the $175.

Speaker #5: And you've seen us continue to acquire assets with them into that partnership . So that's one that we're growing . For example . So again , we we value long term partnership .

Speaker #5: Our long term partners and we often are the best buyer . If there's a reason that the partner wants to exit . And that's when we have those opportunities .

<unk> area.

Speaker #4: Thanks .

Speaker #10: Ron .

And we are confident that we will continue to make headway towards closing that gap into 26, which will drive some of that.

Speaker #3: Our next question comes from Sydney ROM with Barclays Bank . Please proceed with your question .

Speaker #15: Hi , guys . Good afternoon . I was wondering if you could give a little bit of color on what your expectations are for for rent spreads and if you can , if you expect them to continue to be around this percentage or thank you .

Base rent growth that I articulated.

We do that includes delivering on Redevelopments. So in 2025, we had a year, where we contributed to the growth from redevelopment is north of 100 basis points I actually think that thats going to repeat itself into 2026 those.

Speaker #6: Good morning Sydney , and thank you for the question . Look , I'm really proud of the trajectory we have been on and how committed the team is to ensuring not just these elevated levels of rent spreads , but even more importantly , the gap spreads that we always talk about .

Those are overlapping concepts in some way, it's really about absorbing space and driving commenced occupancy.

And then the balance but it is going to come from from rent growth and I thought Alan did a really nice job of articulating our position in that marketplace, both driving contractual steps as well as cash releasing spreads.

Speaker #6: And the continued embedded rent steps . So I don't necessarily have a target on it per se , but what I would say is I look back at Q3 , new shop leasing 85% of our shop transactions had 3% or higher in terms of embedded rent steps , and 25% of our new shops had 4% or higher .

Hope that helps and again, we will give some more color on.

This outlook in February.

Thanks Todd.

Our next question comes from Craig Melman with Citi. Please proceed with your question.

Yes.

Speaker #6: So the teams are really embracing that long term , sustainable approach with these embedded rent steps . While on top of that , getting that 13% rent spread that you have seen , I will take as much as they are willing to give .

Maybe just two parter here.

As we think about the bread crumbs, you've laid out for for next year for same store and implicitly total NOI growth and maybe even <unk>.

Just looking at your same store occupancy you guys kind of take a little lower than where you peaked out at.

Speaker #6: And I just believe in this sort of supply constrained environment . We have an opportunity to continue to lean in .

Is there room to push that lease rate higher or are we going to close the gap to the historical spread by just commencing and you kind of are the frictional level for for that leased occupancy then just the second piece for Mike I know you said 100 150 basis point drag from refinancings or are you guys can.

Speaker #15: Thanks so .

Speaker #10: Much .

Speaker #3: Our next question comes from Todd Thomas with KeyBanc Capital Markets . Please proceed with your question .

Speaker #16: Hi . Thanks . Good morning . I just wanted to revisit the mid 3% same property NOI comments . You said that that's the base rent component primarily .

Any consideration to putting some term loan debt in the stack, which is for what I'm hearing from some of your peers pricing in the mid fours, which would kind of compressed that that headwind debate.

Speaker #16: So contractual rent steps and cash releasing spreads . Do you expect a further contribution from the snow pipeline in 2026 ? And can you also speak to what what sort of contribution you might anticipate from redevelopment in 26 ?

Craig Good morning, it's Alan I'll take the first part and I'll, let Mike, Colorado second part I.

Do believe that we can we can pierce through the occupancy of where we are in that 20 basis point drop this quarter really was attributable to the rite aid bankruptcy and us getting 10 rite aid spaces back in the quarter, but.

Speaker #16: Is that going to be sort of a neutral impact year over year , or do you still expect there to be some some additional growth on top of that from redevelopment ?

Speaker #8: Sure . Thanks , Todd . And I'm happy to dig in a little bit deeper here . But but I'm going to leave a I'm going to leave some of that detail to our full plan , which we'll provide to everybody in February .

But as we look at again as I think I said on one of the prior questions strong demand limited supply I think there is certainly upside there and I think we'll probably see that come from largely is on the anchor front, we're at 98% leased and as we look back at peak levels, there and I look at the pipeline of deals that are in <unk>.

Speaker #8: Yeah . So , so to get to mid threes , it's going to take some occupancy climb . And we we still see an opportunity and we have some slides in our investor materials that articulate that .

Right now for those anchor transactions.

Speaker #8: There remains opportunity in our commenced occupancy percentage to close that gap . We're sitting that 200 basis points wide right now . The historical averages in the 175 180 area .

There's real opportunity, there and which is even further encouraging to me is when we look at kind of who those tenants are and five below Barnes <unk> noble.

Speaker #8: And we are confident that we will continue to make headway towards closing that gap into 26 , which will drive . Sorry , some of that base rent growth that I articulated .

Home goods J crew also theres, just a whole lot of them that are out there that are materially engaged and just great operators that will be really fantastic adds to our portfolio.

So hard pivot to the balance sheet and.

Speaker #8: We do that includes delivering on redevelopments . So in 2025 , we had a year where we contributed to growth from redevelopments north of 100 basis points .

And I appreciate the question yeah.

We consider all forms of capital as we think about refinancing our obligations to us.

Around 30 basis point impact on refinancing is pretty wide range that we're sharing today largely because we're still considering what options. We may take for 2026.

Speaker #8: I actually think that that's going to repeat itself into 2026 . Those are overlapping concepts in some way . It's really about absorbing space and driving .

Speaker #8: Commenced occupancy and then the balance is going to come from from rent growth . And I thought Alan did a really nice job of articulating our position in that marketplace .

2025 financing activity has already been executed. So we know what that impact is next year the balance of our expectation will be driven on the solution. We choose term loans converts vanilla bond offerings. All of those are always considered by regency.

Speaker #8: Both driving contractual steps as well as cash releasing spreads . I hope that helps . And again , we'll give some more color on on this outlook in February .

We'll make the best off the best decision at that point in time.

Speaker #10: Thanks , Todd .

Depending on the market conditions, let me lastly se.

Speaker #3: Our next question comes from Craig Mailman with Citi. Please proceed with your question.

That was the credit position that we're in from an a rated balance sheet and the extreme pricing. We can achieve on just a vanilla bond offering with a 10 year term.

Speaker #17: Guys . Maybe just a two parter here . As we think about the breadcrumbs you laid out for for next year , for for same store and you know , implicitly total on the growth and maybe even FFO just looking at your same store occupancy .

I do think you squeeze out a lot of that potential opportunity that others may have as they consider their alternatives.

Thanks, Craig.

Our next question comes from Juan Cantabria with BMO capital markets. Please proceed with your question.

Speaker #17: You know , you guys kind of ticked a little bit lower than where you peaked out at . Is there room to push that lease rate higher , or are we going to close the gap to the historical spread by just commencing ?

Hi, good morning.

I guess the two part question, one you mentioned $8 million versus our 1 million square foot pipeline.

Speaker #17: And you kind of are at the frictional level for that lease occupancy. And then just the second piece for Mike, I know you said 100 to 150 basis point drag from refinancing.

In your prepared remarks, so just curious if you could contextualize that historically is that being skewed by some of these anchor opportunities.

And then the second part would just be anything unusual on that this quarter, there was actually a contributor to growth.

Speaker #17: Are you guys giving any consideration to putting some term loan debt in the stack , which is , you know , from what I'm hearing from some of your peers , pricing in the mid fours , which would kind of compress that , that headwind a bit .

Is there any of that assumed seemingly in 2026, given you expect bad debt.

To kind of be similar next year versus this year. Thanks.

Speaker #6: Craig good morning . It's Alan I'll take the first part and let Mike color up the second part . I do believe that we can we can pierce through the occupancy of where we are .

One I appreciate that question that million square feet is pretty consistent with multiple prior quarters again, I think speaking to the strength of the environment that we're in right now.

Speaker #6: That 20 basis point drop this quarter really was attributable to the Rite Aid bankruptcy . And us getting ten Rite Aid spaces back in the quarter .

It is no there is no disproportion of anchors versus shops on AR.

Speaker #6: But as we look at it again, as I think I said on one of the prior questions, strong demand, limited supply, I think there's certainly upside there.

On a relative basis in terms of how we look back.

And again it is full of great retailers and I rattled off a few junior box players that were engaged with but we're also doing multiple transactions in that pipeline is full with the warranty parkers and the Jersey, Mike's and the Mendocino farms.

Speaker #6: And I think what we'll probably see that come from largely is on the anchor front . We're at 98% leased . And as we look back at peak levels there , and I look at the pipeline of deals that is in process right now for those anchor transactions , there's real opportunity there .

And that juice and just a whole host of great operators that that we're sprinkling in across across the country. So.

Speaker #6: And what is even further encouraging to me is when we look at kind of who those tenants are and , you know , five below , Barnes and Noble , you know , HomeGoods , J.Crew , Ulta , there's just a whole lot of them that are out there that are materially engaged and just great operators .

Again, we always say qualify the right operators and merchandising is very important to us we don't just lease leased antibody and so while I'm proud of the 1 million square feet in terms of the numbers that are in there and the pipeline I'm equally if not more proud of the quality of those those retailers that around.

Speaker #6: That'll be really fantastic , adds to our portfolio .

Speaker #8: So hard pivot to the balance sheet and I appreciate the question . Yeah , we we consider all forms of capital as we think about refinancing our obligations .

On the bad debt question, and I think you're referencing our uncollectible lease income line item.

Interesting this quarter. So again this is a line item that is reflecting the collection rate on a cash basis tenants right. So.

Speaker #8: And a 150 basis point impact on refinancing is a pretty wide range that we're sharing today, largely because we're still considering what options we may take for 2026.

That that pool of property, we just had higher collections from that pool of properties that pool of tenants I should say this.

Speaker #8: The 2025 financing activity has already been executed , so we know what that impact is . Next year . The balance of our expectation will be driven on on the solution we choose term loans converts , vanilla bond offerings , all of those are always considered by Regency .

This quarter in fact, interestingly, we've been collecting this quarter on some receivables from tenants who have previously moved out we had we had long written off.

And kudos to the team they are both operational and legal for continuing to pursue those.

Speaker #8: We will make the best , the best decision at that point in time . It depending on the market conditions . Let me lastly say that with the the credit position that we're in from an A balance sheet and that the extreme pricing we can achieve on just a vanilla bond offering with a ten year term , I do think you squeeze out a lot of that potential opportunity that others may have as they consider their alternatives .

Those owed receivables that we've collected on those this quarter. So that's what drove the positive anomaly.

Year to date basis, we're running in the twenties.

20 to 25 basis point area on <unk> that's it.

The total revenues you've heard us talk about our historical averages before which are in the 40 to 50 basis point area. So for a couple of years now we've been operating at historical lows again.

Speaker #10: Thanks , Craig .

The tenant base that we have today is extraordinarily healthy and doing very well and that comment I'll make it up again, we believe will continue into next year. So we are anticipating that will continue to be.

Speaker #3: Our next question comes from Juan Sanabria with BMO Capital Markets . Please proceed with your question .

Speaker #18: Hi . Good morning . I guess a two part question . One , you mentioned $1 million or sorry , million square foot pipeline in your prepared remarks .

Lower than our long term historical averages.

Speaker #18: So, just curious if you could contextualize that historically. Is that being skewed by some of these anchor opportunities you've kind of noted? And then the second part would just be anything unusual on bad debt this quarter.

Lease income in 2026.

Thanks, Ron.

Our next question comes from Michael Griffin with Evercore. Please proceed with your question.

Great. Thanks.

Speaker #18: That was actually a contributor to growth . And is there any of that assumed seemingly in 2026 , given you expect bad debt to kind of be similar next year versus this year ?

The developments I'm curious if you can give us a sense of where your underwriting rents both for anchor and small shop versus where current rents are in the market and then maybe stepping back more broadly.

Speaker #18: Thanks .

You've heard about this dearth of new supply in strip land and clearly regency's differentiator on the development side I mean, I realize you don't want to give away all the secrets, but how are you all able to make the math pencil is it the land basis is the proximity to population areas like these masterplan communities. It just seems like you are able to.

Speaker #6: Juan , I appreciate that question . That million square feet is pretty consistent with multiple prior quarters . Again , I think speaking to the strength of the environment that we're in right now , it is no , there is no disproportion of anchors versus shops on a on a relative basis in terms of how we look back .

To make this work, whereas others out there in the market are arent able to thank you.

Speaker #6: And again , it's full of great retailers . And I you know , I rattled off a few junior box players that were engaged with .

I appreciate the question Michael This is Nick I'll start with your second part which is.

Speaker #6: But we're also doing multiple transactions in that pipeline as full , you know , with the Warby Parker and the Jersey Mike's and the Mendocino farms .

Yes, there is no secret sauce, I will tell you that it's a lot of really really hard work over years and years that buildup to put us in the position we're in and it comes back to again, starting with the relationships we have the best relationships across the country with the best groceries. If you look at our end process. We're building for whole foods, we're building for HEB.

Speaker #6: And the Joe and the juice and , and just a whole host of great operators that , that we're sprinkling in across , across the country .

Speaker #6: So , you know , again , we always say qualify the right operators and merchandising is very important to us . We don't just lease lease to anybody .

Wei Publix sprouts.

Speaker #6: And so while I'm proud of the million square feet in terms of the numbers that are in there in the pipeline , I'm equally , if not more proud of the quality of those those retailers that are in it .

Redeveloped with Kroger and so those relationships have been forged over decades of work.

Capital. There is no question, we have the capital that's where we're allocating it as we keep talking about and so we are blessed to be in a position with our free cash flow and our balance sheet to be able to lean in and take advantage of these opportunities and that really matters to a seller to know that we are committed and we have the capital ready to go and then last but not least it's just expertise really really hard.

Speaker #8: On the bad debt question . And I think you're referencing our Uncollectible lease income line item . Interesting . This quarter . So again , this is a line item that is reflecting the collection rate on our cash basis .

Speaker #8: Tenants . Right . So . That that pool of property we just had higher collections from that pool of property . The pool of tenants I should say this quarter , in fact , interestingly , we've been collecting this quarter on some receivables from tenants who had previously moved out .

Work to grind into every aspect of our pro forma and again years' of experience the best professionals in the business no doubt working on our construction cost working our underwriting.

And sharpening every aspect of that pro forma to make these things pencil and so.

Speaker #8: And we had we had long written off ago , and kudos to the team . The both operations and legal for continuing to pursue those those , those receivables .

Again, no secret sauce, but we're really really proud about what we've done here recently and what the future looks like for us.

Speaker #8: And we've collected on those this quarter . So that's what drove the positive anomaly on a year to date basis . We're running in the 20 to 25 basis point area on Uli .

But it is not zero competition, there as well.

We are the only active one nationally, but we're competing with local developers in these markets and there is some quality local developers that are forcing us to up our game and sharpen our pencil everyday and so.

Speaker #8: That's as a percent of total revenues . You've heard us talk about our historical averages before , which are in the 40 to 50 basis point area .

We're excited about the ones that we're winning for the reasons I just articulated.

Speaker #8: So, for a couple of years now, we've been operating at historical lows again. The tenant base that we have today is extraordinarily healthy, doing very well.

And continue to believe we will get more than our fair share and in terms of rents Youre, absolutely right I mean.

Two aspects to every pro forma what's the cost which were really smart about and understand really well, which is why you've seen our in process performed the way they have but the other side of the income.

Speaker #8: And that comment I'm making at the end , we believe we'll continue into next year . So we are anticipating that we'll continue to be , you know , lower than our our long term averages on Uncollectible lease income in 2026 .

Given the operating portfolio, we have the platform, we have there as well as our leasing agents on the ground looking at our ground up developments really proud of the team's ability to forecast the income side of these developments and redevelopments as well and so.

Speaker #10: Thanks , Juan .

Speaker #3: Our next question comes from Michael Griffin with Evercore . Please proceed with your question .

If you were on our internal calls you'd hear assay.

Speaker #19: Great . Thanks . On the developments . I'm curious if you can give us a sense of where you're underwriting rents , both for anchor and small shop , versus where current rents are in the market , and then maybe stepping back more broadly , you know , we've heard about this dearth of new supply in strip land .

Don't want to underperform, but we also don't expect to outperform we expect our teams to really understand both sides of the pro forma and Youll see on the margin, we're outperforming more than underperforming based on the team's great work.

I really appreciate Nick's answer.

But I'm going to because he he sell much more intimately involved.

Speaker #19: And clearly , Regency's differentiator on the development side . I mean , I realize you don't want to give away all the secrets , but , you know , how are you all able to make the math pencil ?

Thank you just described the secret sauce, and I wouldn't I wouldn't underestimate what that is because it is our team and it's the decades of experience and track record that has built those relationships and that is a part of that so.

Speaker #19: Is it the land basis ? Is it the proximity to population areas like these ? Master plan communities ? It just seems like you're able to make this work , whereas others out there in the market aren't able to .

Speaker #19: Thank you .

It's not something that's easily replicated.

Speaker #7: Appreciate the question , Michael , this is Nick . I'll start with your second part , which is yeah , there's no secret sauce .

Thank you Chris.

Our next question comes from Handel St Juste with Mizuho. Please proceed with your question.

Speaker #7: I'll tell you that . It's a lot of really , really hard work over years and years that build up to put us in the position we're in .

Hi, there good morning.

Ravi you dig into line for home Dell Today Hope you guys are doing well.

Speaker #7: And it comes back to again , starting with the relationships we have the best relationships across the country with the best grocers . If you look at our end process , I mean , we're building for Whole Foods , we're building for HEB , Safeway , Public Sprouts , doing a major redevelopment with Kroger .

I wanted to ask about capital recycling can you offer more commentary on the decision to sell the asset in Miami, what was the competitive process like where there are a number of bids and was there anything particular about the asset for the market itself.

Speaker #7: And so those relationships have been forged over decades of work capital . There's no question we have the capital . It's where we're allocating it .

Thanks.

So I appreciate the question.

Start again, just high level again, given where we're at from a capital standpoint, we don't have to sell anything and we really like our portfolio. So I always start answering disposition questions with that now that being said, we're always looking at assets that we believe are non strategic and they may be non strategic from a format perspective, what you've seen some of these smaller assets we sell at <unk>.

Speaker #7: As we keep talking about . And so we are blessed to be in the position with our free cash flow and our balance sheet to be able to lean in and take advantage of these opportunities .

Speaker #7: And that really matters to a seller to know that we are committed and we have the capital ready to go . And then last but not least , it's just expertise .

Speaker #7: Really , really hard work to grind into every aspect of our pro forma . And again , years of experience . The best professionals in the business , no doubt working on our construction costs , working on our underwriting and sharpening every aspect of that pro forma to make these things pencil .

On strategic from a future IRR perspective, we obviously have our future view of capital and income on these assets and so the Miami asset would fit into that second bucket, where our view of the future IRR getting aligned from a strategic standpoint based on what we believe the market would pay for that asset because that market is in such high demand and so yes, there was a deep pool of bidders.

Speaker #7: And so again , no secret sauce , but we're really , really proud about what we've done here recently and what the future looks like for us .

That did allow us to drive pricing, we thought was appropriate to transact and recycle that capital and then I would just say again when you look at high level, we're selling just over $100 million of assets. This year just over a five 5% cap rate.

Speaker #7: But it's not zero competition . There's we are the only active one nationally , but we're competing with local developers in these markets .

Speaker #7: And there's some quality local developers that are forcing us to up our game and sharpen our pencil every day . And so we're excited about the ones that we're winning for the reasons I just articulated and continue to believe we'll get more than our fair share .

But we're buying over $500 million at a 6% and so our capital recycling right now is accretive not dilutive.

We're proud about that because we own such a great portfolio. We can take advantage, where we feel like those stars aligned to exit an asset that we're not in love with from a future IRR and reinvest that capital in assets, we think are.

Speaker #7: And in terms of rents , you're absolutely right . I mean , two aspects to every pro forma . What's the cost ? Which we're really smart about and understand really well , which is why you've seen our process perform the way they have .

Speaker #7: But the other side is the income giving the operating portfolio. We have the platform we have there, as well as our leasing agents on the ground.

High single digit if not double digit IRR.

Thanks Robby.

Speaker #7: Looking at our ground up developments , really proud of the team's ability to forecast the income side of these developments and redevelopments as well .

Our next question comes from Wes Golladay with Baird. Please proceed with your question.

Hey, good morning, everyone I just wanted to go back to the developments.

Speaker #7: And so if you are on our internal calls , you'd hear us say , we don't want to underperform , but we also don't expect to outperform .

You're doing a lot more as effect this quarter with master planned communities or next to Master planned communities are the grocers, leading you there or are you putting more emphasis on being next to those projects and then development start or are you still targeting around a 50% pre lease level.

Speaker #7: We expect our teams to really understand both sides of the pro forma , and you'll see on the margin we're outperforming more than underperforming based on the team's great work .

Speaker #5: I really appreciate Nick's answer , but I'm going to because he's he's so much more intimately involved . I think he just described the secret sauce .

I appreciate the questions west so.

All of the above and so we are targeting masterplan communities are grocery the targeting master planned communities and to be quite Frank Masterplan developers are reaching out to us.

Speaker #5: And I wouldn't underestimate what that is, because it's our team, and it's the decades of experience and track record that have built those relationships.

And it really goes back to the question I answered before which is if you're a master plan developer the most or one of the most important aspects of many of these projects is having a great community grocery anchored shopping center to be an amenity to your project and not only is it important that you can count on your retail partner to build a world class project, but you also want to know that they're going to own it and operate it in perpetuity.

Speaker #5: And Nick is a part of that, so it's not something that's easily replicated.

Speaker #10: Thank you Griff .

Speaker #3: Our next question comes from Handle Saint. Just with Mizuho. Please proceed with your question.

And so we love the opportunity to sit down with Masterplan developers.

Speaker #20: Hi there . Good morning . I'm on the line for Handel today . Hope you guys are doing well . I wanted to ask about capital recycling .

Create really really win win partnership on both sides than you've seen in many cases, we've done multiple transactions with the same master plan developer so.

Speaker #20: Can you offer more commentary on the decision to sell the asset in Miami ? What was the competitive process like ? Were there a number of bids and was there anything in particular about the asset or the market itself that led to this decision ?

For all of those reasons I think that will continue when you look at our go forward pipeline is as you've indicated.

To success this quarter.

And so.

Speaker #20: Thanks .

I forgot the second part of the question.

Speaker #7: I appreciate the question . I'll start again . Just just high level again , given where we're at from a capital standpoint , we don't have to sell anything .

Oh yeah.

The pre leased.

<unk> again, when you talk about de risking that's what we're also excited about our development program as we really do Derisk. These assets and so they are fully entitled they're designed their bid we have a real understanding of the visibility on the cost side and to your point, they're tremendously pre leased and so the anchors are always in place.

Speaker #7: And we really like our portfolio . So I always start answering disposition questions with that . Now , that being said , we're always looking at assets that we believe are non-strategic and they may be non-strategic from a format perspective , but you've seen some of these smaller assets we sell at or non-strategic from a future IRR perspective .

Speaker #7: We obviously have a future view of capital and income on these assets . And so the Miami asset would fit into that second bucket where our view of the future IRR didn't align from a strategic standpoint based on what we believe the market would pay for that asset , because that market is in such high demand .

Depending on the size of the anchor compared to the overall project, it's not always right at 50%, but it's a large portion of that NOI is guaranteed but again, if you look at our in process pipeline. The team's just doing a phenomenal job I'll point to two projects, where our anchor is already been open shops as stonebridge, our whole foods anchored project in Connecticut, and Jordan Ranch, our HEB anchored.

Speaker #7: And so , yes , there was a deep pool of bidders that did allow us to drive pricing . We thought was appropriate to transact .

Project in Houston, neither of those anchors are open yet in both of those projects are already over 90% leased and so it just gives you again a sense of the demand in the market for these new projects we're building.

Speaker #7: And recycle that capital . And then I would just say , again , when you look at , you know , high level , we're selling just over $100 million of assets this year , just over a 5.5% cap rate .

Thank you.

Speaker #7: But we're buying over 500 million at a 6% . And so our capital recycling right now is accretive , not dilutive . And we're proud about that because we own such a great portfolio .

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

Hi, a two parter regarding your snow pipeline, the 1 million square feet of leases in negotiation any initial thoughts on how much that could further contribute to your snow pipeline and then with your snow pipeline, having compressed and <unk> with the expectation that it continues to compress in 'twenty six.

Speaker #7: We can take advantage where we feel like those stars align to exit an asset that we're not in love with from a future IRR.

Speaker #7: And reinvest that capital and assets we think have high single-digit, if not double-digit IRR.

Speaker #10: Thanks , Ravi .

I'm happy to take it for LNG color up the pipeline.

Speaker #3: Our next question comes from Wes Golladay with Baird. Please proceed with your question.

I would so we're sitting at 200 basis points spread today.

Speaker #21: Hey good morning everyone . I just want to go back to the development . You're doing a lot more . It looks like this quarter with master planned communities or next to master planned communities .

For my comments earlier I do think we are we have to set up to continue to compress.

<unk> pipeline into 'twenty six.

Speaker #21: Are there grocers leading you there or are you putting more emphasis on being next to those projects ? And then for a development start , are you still targeting around a 50% pre-lease level ?

That being said in the comments that I want to share about our prospects for setting new levels of percent lease.

There is a scenario during at which we also maintain or potentially expand that's no pipeline. So.

Speaker #7: Appreciate the questions , Wes . So all the above and so we are targeting master planned communities . Our grocers are targeting master planned communities and to be quite frank , master planned developers are reaching out to us and it really goes back to the question I answered before , which is if you're a master plan developer , the most one of the most important aspects of any of these projects is having a great community grocery anchored shopping center to be an amenity to your project .

I hope that's helpful. Linda I think I think as we normalize or stabilize our occupancy.

I think you are.

I think the comments around snow pipelines will start to dissipate and this will just become regular leasing activity, where we're replacing.

Part of the GLA every year just from natural attrition.

Speaker #7: And not only is it important that you can count on your retail partner to build a world-class project, but you also want to know that they're going to own it and operate it in perpetuity.

Some of which is decided by the tenants themselves a lot of which is decided by our leasing teams who are looking to.

Speaker #7: And so we love the opportunity to sit down with master plan developers. It creates a really, really win-win partnership on both sides.

Upgrade the tendency in our shopping centers.

Okay fair enough.

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

Speaker #7: And you've seen in many cases we've done multiple transactions with the same master plan developer . And so for all of those reasons , I think that will continue .

Yes, Hi, Mike.

Mike what's prompting you to talk about 2006. This early is it something looks off with the 26 estimates that are out there where you just don't want people to have sticker shock with the.

Speaker #7: When you look at our go forward pipeline , as you as you indicated , led to success , this quarter . And so forgot the second part of the question .

Three to three 5% same store number after this year's great great print or is it something else.

Speaker #21: Oh . Yeah .

Speaker #7: The pre-leased . Absolutely . Again . And when you talk about de-risking , that's what we're also excited about in our program is we really do de-risk these assets .

Mike.

Maybe a little bit surprised by the question I feel like we've had a track record of sharing and outlook.

Speaker #7: And so they're fully entitled . They're designed , they're bid . We have a real understanding of the visibility on the cost side .

At this point in time.

Every year and you've got to take the Covid area out of it maybe thats whats.

Speaker #7: And to your point , they're tremendously pre-leased . And so the anchor is always in place . And so depending on the size of the anchor compared to the overall project , it's not always right at 50% , but it's a large portion of that .

Some of our memories are missing is during COVID-19 and all the rules were off but.

<unk> and our ability to provide some transparency on a forward basis.

Speaker #7: NOI is guaranteed . But again , if you look at our in-process pipeline , the team's just doing a phenomenal job . I'll point to two projects where our anchors aren't even open .

Some time in this period in this quarter in the fourth quarter of the year.

Speaker #7: Shops at Stonebridge . Our Whole Foods anchored project in Connecticut , and Jordan Ranch . Our H-e-b anchored project and Houston . Neither of those anchors are open yet , and both of those projects are already over 90% leased .

Long time ago, and the way back machine, we used to do December investor days, and we would.

Put out forward looking guidance today, where we're doing that together with Q3 results and we've done that for a year or two at this point so nothing more than that practice I hope. It's helpful. I know, we want more details behind the headwinds that had not that we provided we look forward to providing those details later.

Speaker #7: And so it just gives you , again , the sense of the demand in the market for these new projects . We're building .

Speaker #21: Thank you .

Speaker #3: Our next question comes from Lynn Desai with Jefferies . Please proceed with your question .

Speaker #22: Hi . A two parter regarding your snow pipeline , the 1,000,000ft² of leases in negotiation . Any initial thoughts on how much that could further contribute to your snow pipeline ?

And I'll just leave it at that.

Thank you Mike.

Our next question comes from Floris Van <unk> with Ladenburg Thalmann. Please proceed with your question.

Speaker #22: And then with your snow pipeline , having compressed in three ? Q is the expectation that it continues to compress in 26 ?

Hey, thanks.

My question sort of related to the to the occupancy obviously your 10 basis points off your peak in both leased and commenced.

Speaker #8: I'm happy to take it . For Alan . You can color up the pipeline . I would so we're sitting at 200 basis points spread today for my comments earlier .

You've got a big pipeline coming up.

Not a whole lot more you can push it in terms of your anchor sheet. I mean, you did allude to the fact that 98% of your peak is probably close to 99%.

Speaker #8: I do think we are . We have to set up to continue to compress that snow pipeline into 26 . That being said , and the comments that Alan has shared about our prospects for for setting new levels of percent lease , there is a scenario at which we also we maintain or potentially expand that snow pipeline .

My question is.

Partly related to your most valuable space your shop space, how much more can you push occupancy in your shop and maybe also talk about your renewal percentage.

Speaker #8: So I hope that's helpful . Linda , I think I think as we normalize or or stabilize our occupancy , I think you're I think the comments around snow pipelines will will start to dissipate .

Today, and where do you see that trending going forward. It sounds like you think there might be more churn going forward as you as you keep raising rents, but I'm curious to hear your comments.

Speaker #8: And this will just become regular leasing activity where we're we're replacing a lot of the GLA every year just from natural attrition , some of which is decided by the tenants themselves , a lot of which is decided by our leasing teams who are looking to upgrade the tenancy in our shopping centers .

Floris. Thank you for the two part question I don't know, maybe it's a trend here for us to always answer the second one first just from a memory perspective, but.

The renewal retention, we've always hovered around 75 ish percent.

And I am very comfortable with that number it's an opportunity to retain exceptional retailers and it's an opportunity to also infuse.

Speaker #10: Thanks , Linda .

Speaker #3: Our next question comes from Mike Muller with JPMorgan . Please proceed with your question .

Additional higher quality merchandising and higher rents in our portfolio. So.

Speaker #23: Yeah . Hi . I guess , Mike , what's prompting you to talk about 26 this early ? Is it something looks off with the 26 estimates that are out there , or you just don't want people to have sticker shock with the , you know , 3 to 3.5% same store number after this year's great , great print .

On the edges, sometimes at 70%, sometimes its 85%, but typically we're in that 75% and I'm really really comfortable with that in terms of active.

And engaging leasing.

Speaker #23: Or is it something else ?

So you will also find that from a new leasing perspective, we are leasing occupied space. We have a few tenants on our watch list.

Speaker #8: Mike, maybe a little bit surprised by the question. I feel like we've had a track record of sharing an outlook at this point in time.

That for some time, we've been thinking we're getting space back we have Lisa sitting there executed waiting to get some of those spaces back so.

Speaker #8: Every year , and you got to take the Covid area out of it . Maybe that's what's some of our memories are missing , is during Covid , all the rules were off , but we've we're we're prideful in our ability to provide some transparency on a forward basis .

Again, thats the proactive mindset I am not going to guide to a percentage per se in terms of where we ultimately can go but we're going to continue to be creative and one example, I would give you is this.

Fact that we are invoking some relocation provisions in leases to relocate a successful tenants at the community knows is there that's doing really well such that they can occupy a perhaps more challenging space to us to lease on the market, which then unlocks the ability to lease their space right. So the team is out there I think really creatively doing everything they can.

Speaker #8: Sometime in this period in this quarter , in the fourth quarter of the year , long time ago , in the Wayback Machine , we used to do , you know , December Investor days .

Speaker #8: And we would we would put out forward looking guidance today . We're we're doing that together with Q3 results . And we've done that for a year or two at this point .

To continue to still grow occupancy and pierce through that and again in this environment I feel really comfortable and confident coupled with the quality of our assets to continue to be able to do that.

Speaker #8: So nothing more than that practice . I hope it's helpful . I know we want more details behind the the head . The head nods that we've provided .

Speaker #8: We look forward to providing those details later, and I'll just leave it at that.

Thank you Floris.

As a reminder, if you like to ask a question. Please press star one on your telephone keypad.

Speaker #10: Thank you . Mike . Okay .

Speaker #3: Our next question comes from Flores Vanderkam with Ladenburg Thalmann . Please proceed with your question .

A moment, while we poll for questions.

Speaker #24: Hey , thanks . My question is sort of related to the to the occupancy . Obviously , your ten basis points off your peak in both lease and commenced , you've got a big pipeline coming up .

Our next question comes from Paulina Rojas with Green Street Advisors. Please proceed with your question.

Good morning.

So as it has been mentioned a few times your commenced occupancy is near peak levels.

Speaker #24: There's not a whole lot more you can push in terms of your anchors . I mean , you did allude to the fact that 98% in your peak is probably closer to 99% .

When I look at your presentation. The last time you.

Your occupancy levels were at these high once around 2014 2018.

Speaker #24: My question is , is partly related to your most valuable space , your shop space . How much more can you push occupancy in your shop ?

Commenced occupancy actually stayed elevated for.

You had.

So I'm curious.

Speaker #24: And maybe also talk about your renewal percentage today ? And where do you see that trending going forward ? It sounds like you think there might be more churn going forward .

How does a retailer sentiment today compared to that period.

Similarity or difference are you seeing between then and now.

Speaker #24: As you as you keep raising rents . But I'm curious to hear your comments .

I believe I heard consumer sentiment is that retail settlement sentiment I think.

Speaker #6: Flores , thank you for the two part question . I don't know , maybe it's a trend here for us to always answer the second one first , just from a memory perspective .

Paul in the way I would address that is there.

Speaker #6: But the renewal retention we've always hovered around 75 ish percent , and I am very comfortable with that number . It's an opportunity to retain exceptional retailers , and it's an opportunity to also infuse additional higher quality merchandising and higher rents into the portfolio .

A lot has kind of changed over that period of time and that retail is always evolving we have seen that.

So coming out of the GSE there was a lot of demand for new store growth.

And then we saw a little bit of a dip when we all saw the headlines on this retail Apocalypse in house e-commerce going to affect our business.

Speaker #6: So , you know , on the edges , sometimes it's 70% , sometimes it's 85% , but typically we're in that 75% . And I'm really , really comfortable with that in terms of active and engaging leasing .

And then Covid hit.

And when the pet with the pandemic did and we said this a lot is it really generated a renewed appreciation from our retailers for the importance of a physical location. So while they may have been dialing back in that 17, 18, 19 timeframe of new store expansion coming out of the <unk>.

Speaker #6: And so you also find that from a new leasing perspective , we are leasing occupied space . We have a few tenants on our watch list .

Speaker #6: That for some time we've been thinking we are getting space back . We have leases sitting there executed waiting to get some of those spaces back .

The endemic.

They realize the importance of having that location the last mile close to the consumer at the same time on a renewed appreciation from the consumer for shopping for not just buying online, but actually enjoying what we at regency offer with regards to our fresh look connecting place making.

Speaker #6: And so again , that's the proactive mindset . I'm not going to guide to a percentage per se in terms of where we ultimately can go , but we're going to continue to be creative .

Speaker #6: And one example I would give you is the fact that we are invoking some relocation provisions and leases to relocate a successful tenant that the community knows is there , that's doing really well , such that they can occupy a perhaps more challenging space to us to lease on the market , which then unlocks the ability to lease their space .

And having a curation of.

Great.

Merchants at our shopping centers.

Over that period of time from 2014, so today, there's been really limited supply so.

Speaker #6: Right . And so the team is out there , I think really creatively doing everything they can to continue to , to , to still grow occupancy and pierce through that .

We've had the tailwind is coming out of the pandemic, we've had retailers understanding and really appreciating the need for and importance of a physical location.

Speaker #6: And again , in this environment , I feel really comfortable and confident , coupled with the quality of our assets , to continue to be able to do that .

And we are again it gives me another opportunity to say we have been the only national development platform at scale for a period of time. So was that limited supply. It's the supply demand is in our favor. So as Alan has said repeatedly today. He believes that we will have the ability to.

Speaker #10: Thank you . Flores .

Speaker #3: As a reminder , if you'd like to ask a question , please press Star One on your telephone keypad . One moment . While we poll for questions .

That percent commenced for all of those reasons and.

Speaker #3: Our next question comes from Paulina Rojas with Green Street Advisors. Please proceed with your question.

Hi.

The utmost confidence in the team to be able to do that.

Speaker #25: Good morning . So as it has been mentioned a few times , your comments , occupancy is near peak levels . And when I look at your presentation , the last time you you're occupancy levels were this high was around 2014 , 2018 when comments occupancy actually stayed elevated for for a long period .

Thanks, Paul.

We have reached the end of the question and answer session I would now like to turn the call back over to your host Lisa Palmer.

Thank you all for your time with US today and once again just want to get.

A shout out to the regency team.

Really proud of our results year to date. Thank you all.

This concludes today's conference you may disconnect your lines at this time.

Speaker #25: Some curious how does retailers sentiment today compare to that period ? What similarities or differences are you seeing between then and now ?

And we thank you for your participation.

Speaker #5: I believe I heard consumer sentiment is that retail , the retailer sentiment , I think that Paulina , the way I would address that is there's a lot has kind of changed over that period of time in that retail is always evolving .

Speaker #5: We've seen that . So coming out of the GFC , there was a lot of demand for new store growth , and then we saw a little bit of a dip when we all saw the headlines of this retail apocalypse , and how was e-commerce going to affect our business .

Speaker #5: And then Covid hit and when the what the pandemic did and we've said this a lot , is it really generated a renewed appreciation from our retailers for the importance of a physical location .

Speaker #5: So while they may have been dialing back in that 2018, 2019 time frame of new store expansion coming out of the pandemic, they realized the importance of having that location, the last mile, close to their consumer.

Speaker #5: At the same time , a renewed appreciation from the consumer for shopping for not just buying online , but actually enjoying what we at Regency offer with regards to our fresh look connecting place , and having a curation of great merchants at our shopping centers over that period of time .

Speaker #5: From 2014 until today, there's been really limited supply. So we've had the tailwinds coming out of the pandemic. We've had the retailers understanding and really appreciating the need for, and importance of, a physical location.

Speaker #5: And we are the again . Gives me another opportunity to say we have been the only national development platform at scale for a period of time .

Speaker #5: So with that limited supply , it's the supply demand is in our favor . So as Alan has said repeatedly today , he believes that we will have the ability to push that percent commenced for all of those reasons .

Speaker #5: And I have the utmost confidence in the team to be able to do that.

Speaker #10: Thanks , Paulina .

Speaker #3: We have reached the end of the question and answer session . I'd now like to turn the call back over to your host , Lisa Palmer .

Speaker #5: Well , thank you all for your time with us today . And once again , just want to give a shout out to the Regency team .

Speaker #5: Really proud of our of our results year to date . Thank you all . .