Phillips Edison & Company(PECO) - 2024 Q3 - Quarterly Results

Introduction Supplemental Information Phillips Edison & Company (PECO) is a leading owner and operator of grocery-anchored shopping centers in the US, with this disclosure supplementing SEC filings and not covering all GAAP items - Phillips Edison & Company (PECO) is one of the largest owners and operators of grocery-anchored neighborhood shopping centers in the United States[3] - This supplemental disclosure should be read in conjunction with the company's Form 10-Qs and Form 10-Ks filed with the SEC and is not intended to disclose all GAAP-required items[3] Cautionary Note About Forward-Looking Statements This supplemental disclosure contains forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations - This supplemental disclosure contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations[4] - Risk factors include changes in economic climate, market conditions, vacancy rates, rent changes, competition, tenant financial stability, increased borrowing costs, environmental issues, natural disasters, REIT qualification, tax law changes, IT security breaches, loss of key executives, portfolio concentration, health crisis impacts, renewal ability, tenant bankruptcies, and inflation[4] - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[5] Notice Regarding Non-GAAP Financial Measures This supplemental disclosure includes non-GAAP financial measures that should not be considered substitutes for GAAP requirements, as they may not reflect overall operations, liquidity, or capital availability - Non-GAAP measures should not be considered substitutes for GAAP requirements and may not reflect the company's overall operations, liquidity, or capital availability[6] - Reconciliations of non-GAAP measures are available on pages 16-20, with definitions provided starting on page 62[6] Pro Rata Financial Information The company may present pro rata consolidated financial information for unconsolidated joint ventures, which has limitations as an analytical tool and should be reviewed with GAAP measures - The company may present pro rata consolidated financial information for properties owned through unconsolidated joint ventures[7] - Pro rata financial information has limitations as an analytical tool, as amounts may not represent legal claims and may differ from other REITs' calculations[7] Financial Performance Earnings Release Phillips Edison & Company reported strong Q3 2024 financial and operating results, updating full-year earnings guidance with notable performance in rent growth, occupancy, and acquisitions - PECO announced third-quarter financial and operating results for the period ended September 30, 2024, and updated its full-year 2024 earnings guidance[8] Key Financial Metrics for Q3 and Nine Months Ended 2024 | Metric | Q3 2024 (Million USD) | Q3 2023 (Million USD) | Nine Months 2024 (Million USD) | Nine Months 2023 (Million USD) | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Net Income Attributable to Shareholders | 11.6 | 12.2 | 44.5 | 43.3 | | Diluted Net Income per Share (USD) | 0.09 | 0.10 | 0.36 | 0.37 | | Nareit FFO (Million USD) | 81.6 | 72.5 | 240.0 | 224.7 | | Diluted Nareit FFO per Share (USD) | 0.60 | 0.55 | 1.76 | 1.70 | | Core FFO (Million USD) | 84.4 | 77.0 | 246.0 | 232.8 | | Diluted Core FFO per Share (USD) | 0.62 | 0.58 | 1.80 | 1.76 | | Same-Center NOI (Million USD) | 107.7 | 104.4 | 320.0 | 310.9 | Q3 2024 Operating Highlights | Metric | Q3 2024 | | :--------------------------------- | :------------- | | Same-Center NOI Year-over-Year Growth | 3.2% | | Leased Portfolio Occupancy | 97.8% | | Same-Center Leased Portfolio Occupancy | 97.9% | | Leased In-Line Occupancy Year-over-Year Growth | 10 basis points to 95.0% | | Portfolio Comparable New Lease Rent Spreads | 55.0% | | In-Line Comparable New Lease Rent Spreads | 28.3% | | Portfolio Comparable Renewal Lease Rent Spreads | 19.8% | | In-Line Comparable Renewal Lease Rent Spreads | 19.6% | | Fixed Rate Debt Percentage | 93.2% | | Acquired Shopping Centers and Land | 5 shopping centers and 2 land parcels, totaling 95.7 Million USD | | Full-Year 2024 Acquisition Guidance (Net) | 275-325 Million USD | Full-Year 2024 Earnings Guidance Update | Metric | Q3 2024 YTD | Updated Full-Year Guidance | Previous Full-Year Guidance | | :-------------------- | :---------- | :------------- | :------------- | | Net Income per Share (USD) | 0.36 | 0.48 - 0.50 | 0.49 - 0.54 | | Nareit FFO per Share (USD) | 1.76 | 2.35 - 2.39 | 2.34 - 2.41 | | Core FFO per Share (USD) | 1.80 | 2.40 - 2.44 | 2.37 - 2.45 | | Same-Center NOI Growth | 2.9% | 3.50% - 4.00% | 3.25% - 4.25% | | Acquisitions (Net, Thousand USD) | 211,082 | 275,000 - 325,000 | 200,000 - 300,000 | Overview of Results This section summarizes Q3 and nine-month financial and operating metrics compared to the prior year, highlighting growth in revenue, NOI, and FFO, alongside detailed leasing and portfolio performance data Summary of Financial Results for Q3 and Nine Months Ended 2024 | Metric | Q3 2024 (Thousand USD) | Q3 2023 (Thousand USD) | Nine Months 2024 (Thousand USD) | Nine Months 2023 (Thousand USD) | | :-------------------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Total Revenue | 165,527 | 152,474 | 488,344 | 455,675 | | Net Income Attributable to Shareholders | 11,602 | 12,245 | 44,543 | 43,315 | | Net Income per Share - Diluted | 0.09 | 0.10 | 0.36 | 0.37 | | Same-Center NOI | 107,724 | 104,390 | 320,031 | 310,917 | | Adjusted EBITDAre | 108,953 | 98,526 | 318,702 | 295,313 | | Nareit FFO | 81,554 | 72,466 | 239,978 | 224,700 | | Nareit FFO per Share - Diluted | 0.60 | 0.55 | 1.76 | 1.70 | | Core FFO | 84,410 | 76,987 | 246,049 | 232,800 | | Core FFO per Share - Diluted | 0.62 | 0.58 | 1.80 | 1.76 | Summary of Operating Ratios for Q3 and Nine Months Ended 2024 | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | | :-------------------------- | :------------- | :------------- | :------------- | | Same-Center NOI Margin | 72.7% | 72.5% | 72.3% | | Same-Center NOI Change | 3.2% | 3.2% | 2.9% | | Comparable Rent Spreads - New Leases | 55.0% | 26.3% | 37.7% | | Comparable Rent Spreads - Renewals | 19.8% | 16.9% | 19.0% | | Portfolio Retention Rate | 91.9% | 93.1% | 89.3% | | Leased Occupancy (as of Sep 30) | 97.8% | 97.8% | N/A | | Economic Occupancy (as of Sep 30) | 97.3% | 97.6% | N/A | | Leased ABR PSF (as of Sep 30) | $15.45 | $14.74 | N/A | Financial Summary Consolidated Balance Sheets As of September 30, 2024, total assets were $4,950,258 thousand, reflecting an increase from December 31, 2023, with higher net real estate investments and corresponding changes in total liabilities and equity Key Consolidated Balance Sheet Data (Thousand USD) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--------------------------------- | :------------- | :------------- | | Land and Improvements | 1,842,671 | 1,768,487 | | Buildings and Improvements | 3,977,380 | 3,818,184 | | Net Real Estate Investments | 4,697,532 | 4,616,091 | | Investments in Unconsolidated Joint Ventures | 27,294 | 25,220 | | Cash and Cash Equivalents | 6,446 | 4,872 | | Total Assets | 4,950,258 | 4,865,666 | | Debt Obligations, Net | 2,104,788 | 1,969,272 | | Accounts Payable and Other Liabilities | 129,517 | 116,461 | | Total Liabilities | 2,371,200 | 2,212,315 | | Total Equity Attributable to Shareholders | 2,249,237 | 2,310,308 | | Total Equity | 2,579,058 | 2,653,351 | Consolidated Statements of Operations In Q3 2024, total revenue increased year-over-year, while net income attributable to shareholders slightly decreased; for the nine months, both total revenue and net income grew due to increased rental revenue and controlled operating expenses Key Consolidated Statements of Operations Data (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | | Rental Revenue | 161,780 | 149,566 | 478,134 | 446,274 | | Total Revenue | 165,527 | 152,474 | 488,344 | 455,675 | | Property Operating Expenses | 27,528 | 24,274 | 81,461 | 74,010 | | Real Estate Taxes | 19,569 | 19,028 | 57,897 | 55,481 | | Depreciation and Amortization | 68,328 | 58,706 | 189,706 | 176,871 | | Total Operating Expenses | 126,539 | 112,393 | 363,124 | 339,966 | | Interest Expense, Net | (24,998) | (21,522) | (71,954) | (61,663) | | Net Income Attributable to Shareholders | 11,602 | 12,245 | 44,543 | 43,315 | | Diluted Net Income per Share | 0.09 | 0.10 | 0.36 | 0.37 | Consolidated Statements of Operations (Quarterly) This section presents the company's consolidated statements of operations for the past five quarters, illustrating quarterly trends in revenue and operating expenses, with Q3 2024 total revenue at $165,527 thousand Consolidated Statements of Operations Quarterly Data (Thousand USD) | Metric | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Rental Revenue | 161,780 | 158,286 | 158,068 | 151,227 | 149,566 | | Total Revenue | 165,527 | 161,515 | 161,302 | 154,449 | 152,474 | | Total Operating Expenses | 126,539 | 119,178 | 117,407 | 115,962 | 112,393 | | Interest Expense, Net | (24,998) | (23,621) | (23,335) | (22,569) | (21,522) | | Net Income Attributable to Shareholders | 11,602 | 15,271 | 17,670 | 13,533 | 12,245 | | Diluted Net Income per Share | 0.09 | 0.12 | 0.14 | 0.11 | 0.10 | Nareit FFO, Core FFO, and Adjusted FFO In Q3 2024, Nareit FFO and Core FFO both increased year-over-year, reflecting sustained operational improvement, with Adjusted FFO also growing significantly, indicating enhanced core business cash flow Key Nareit FFO, Core FFO, and Adjusted FFO Data (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | | Nareit FFO Attributable to Shareholders and OP Unit Holders | 81,554 | 72,466 | 239,978 | 224,700 | | Core FFO Attributable to Shareholders and OP Unit Holders | 84,410 | 76,987 | 246,049 | 232,800 | | Adjusted FFO Attributable to Shareholders and OP Unit Holders | 70,252 | 57,703 | 208,040 | 180,000 | | Diluted Nareit FFO per Share | 0.60 | 0.55 | 1.76 | 1.70 | | Diluted Core FFO per Share | 0.62 | 0.58 | 1.80 | 1.76 | - Nareit FFO increased by 12.5% to $81.6 million in Q3 2024, primarily impacted by a $1.2 million loss on extinguishment of debt from term loan repayments[12] - Core FFO increased by 9.6% to $84.4 million in Q3 2024[13] Nareit FFO, Core FFO, and Adjusted FFO (Quarterly) This section provides quarterly data for Nareit FFO, Core FFO, and Adjusted FFO over the past five quarters, showing a consistent positive trend with increases in Q3 2024 compared to the previous quarter Nareit FFO, Core FFO, and Adjusted FFO Quarterly Data (Thousand USD) | Metric | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Nareit FFO Attributable to Shareholders and OP Unit Holders | 81,554 | 78,368 | 80,056 | 74,843 | 72,466 | | Core FFO Attributable to Shareholders and OP Unit Holders | 84,410 | 79,976 | 81,663 | 77,870 | 76,987 | | Adjusted FFO Attributable to Shareholders and OP Unit Holders | 70,252 | 66,704 | 71,084 | 65,502 | 57,703 | | Diluted Nareit FFO per Share | 0.60 | 0.57 | 0.59 | 0.56 | 0.55 | | Diluted Core FFO per Share | 0.62 | 0.59 | 0.60 | 0.58 | 0.58 | EBITDAre Metrics In Q3 2024, both EBITDAre and Adjusted EBITDAre experienced significant growth, reflecting the company's strong operating profitability before interest, taxes, depreciation, and amortization Key EBITDAre and Adjusted EBITDAre Data (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :----------------- | :------------- | :------------- | :------------- | :------------- | | EBITDAre | 107,769 | 94,942 | 315,193 | 289,197 | | Adjusted EBITDAre | 108,953 | 98,526 | 318,702 | 295,313 | EBITDAre Metrics (Quarterly) This section provides quarterly data for EBITDAre and Adjusted EBITDAre over the past five quarters, showing an increase in Q3 2024 compared to the previous quarter, indicating continuous improvement in operational efficiency EBITDAre and Adjusted EBITDAre Quarterly Data (Thousand USD) | Metric | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :----------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | EBITDAre | 107,769 | 103,187 | 104,237 | 98,289 | 94,942 | | Adjusted EBITDAre | 108,953 | 104,335 | 105,414 | 100,788 | 98,526 | Same-Center NOI Analysis In Q3 2024, Same-Center NOI grew by 3.2% to $107,724 thousand, driven by increased rental revenue, with a 2.9% increase for the nine months and a Same-Center NOI margin of 72.7% Same-Center NOI Analysis (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Year-over-Year Change (%) | Nine Months 2024 | Nine Months 2023 | Year-over-Year Change (%) | | :------------------- | :------------- | :------------- | :----------- | :------------- | :------------- | :----------- | | Rental Revenue | 113,290 | 108,458 | | 338,207 | 324,123 | | | Total Revenue | 148,250 | 143,994 | 3.0% | 442,545 | 430,509 | 2.8% | | Property Operating Expenses | 22,394 | 20,674 | | 68,168 | 64,237 | | | Real Estate Taxes | 18,132 | 18,930 | | 54,346 | 55,355 | | | Total Operating Expenses | 40,526 | 39,604 | (2.3)% | 122,514 | 119,592 | (2.4)% | | Total Same-Center NOI | 107,724 | 104,390 | 3.2% | 320,031 | 310,917 | 2.9% | | Same-Center NOI Margin | 72.7% | 72.5% | | 72.3% | 72.2% | | Joint Venture Summary and Financials The company holds shopping centers through two unconsolidated joint ventures, Grocery Retail Partners I LLC (GRP I) and Necessity Retail Venture LLC (NRV), which collectively owned 21 shopping centers as of September 30, 2024, contributing pro rata Nareit FFO and Same-Center NOI Unconsolidated Joint Venture Portfolio Summary (as of Sep 30, 2024) | Joint Venture | Investment Partner | Ownership Percentage | Number of Shopping Centers | ABR (Thousand USD) | GLA (Thousand Square Feet) | | :-------------------------------- | :----------------------------------- | :--------- | :----------- | :----------- | :--------------- | | Grocery Retail Partners I LLC (GRP I) | The Northwestern Mutual Life Insurance Company | 14% | 20 | 32,743 | 2,213 | | Necessity Retail Venture LLC (NRV) | Cohen & Steers Income Opportunities REIT, Inc. | 20% | 1 | 2,795 | 121 | Unconsolidated Joint Venture Financial Summary (Nine Months 2024) | Metric | GRP I (Thousand USD) | NRV (Thousand USD) | | :-------------------- | :------------- | :------------- | | Pro Rata Nareit FFO | 2,166 | 62 | | Pro Rata Same-Center NOI | 3,150 | 108 | | Pro Rata NOI | 3,150 | 108 | Supplemental Balance Sheet Detail This section provides a detailed breakdown of "Other Assets, Net" and "Accounts Payable and Other Liabilities" on the balance sheet, with deferred leasing commissions and costs at $53,830 thousand, net accounts receivable at $40,812 thousand, and net debt obligations at $2,104,788 thousand as of September 30, 2024 Other Assets, Net (Thousand USD) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--------------------------------- | :------------- | :------------- | | Deferred Leasing Commissions and Costs | 53,830 | 53,379 | | Deferred Financing Costs | 8,984 | 8,984 | | Net Depreciable and Amortizable Assets | 42,171 | 39,917 | | Accounts Receivable, Net | 40,812 | 44,548 | | Deferred Rent Receivable, Net | 68,888 | 62,288 | | Derivative Assets | 1,809 | 12,669 | | Prepaid Expenses and Other | 16,095 | 10,745 | | Investments in Third Parties | 6,742 | 6,875 | | Investments in Marketable Securities | 9,299 | 8,566 | | Total Other Assets, Net | 187,033 | 186,411 | Accounts Payable and Other Liabilities (Thousand USD) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :----------------- | :------------- | :------------- | | Accounts Payable Trade and Other | 34,131 | 30,682 | | Accrued Real Estate Taxes | 43,313 | 33,379 | | Security Deposits | 16,991 | 15,426 | | Accrued Distributions | 1,292 | 1,093 | | Accrued Compensation | 11,062 | 15,983 | | Accrued Interest | 17,487 | 9,684 | | Accrued Capital Expenditures | 5,100 | 9,892 | | Total Accounts Payable and Other Liabilities | 129,517 | 116,461 | Supplemental Statement of Operations Detail This section provides a detailed breakdown of revenue, interest expense, and other expenses in the statement of operations, with Q3 2024 total revenue at $165,527 thousand, net interest expense at $24,998 thousand, and net other expenses at $1,068 thousand Revenue Detail (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :------------------- | :------------- | :------------- | :------------- | :------------- | | Rental Revenue | 121,156 | 110,016 | 357,602 | 328,048 | | Recovery Revenue | 38,235 | 36,448 | 113,332 | 107,952 | | Straight-Line Rent Amortization | 1,893 | 2,095 | 5,718 | 7,686 | | Lease Asset Amortization | 1,729 | 1,281 | 4,688 | 3,746 | | Lease Buyout Revenue | 393 | 587 | 844 | 1,016 | | Collectibility Adjustments | (1,626) | (861) | (4,050) | (2,174) | | Fees and Management Revenue | 2,856 | 2,168 | 7,943 | 7,192 | | Other Property Revenue | 891 | 740 | 2,267 | 2,209 | | Total Revenue | 165,527 | 152,474 | 488,344 | 455,675 | Interest Expense, Net (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | | Interest on Unsecured Term Loans and Senior Notes, Net | 16,008 | 12,216 | 44,800 | 34,500 | | Interest on Secured Debt | 4,252 | 4,536 | 13,252 | 13,600 | | Interest on Revolving Credit Facility, Net | 1,255 | 2,212 | 6,302 | 6,800 | | Non-Cash Amortization and Other | 2,252 | 2,183 | 6,370 | 6,500 | | Loss on Extinguishment or Modification of Debt and Other, Net | 1,231 | 375 | 1,230 | 375 | | Total Interest Expense, Net | 24,998 | 21,522 | 71,954 | 61,663 | Other Expenses, Net (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--------------------------------- | :------------- | :------------- | :------------- | :------------- | | Transaction and Acquisition Costs | (1,181) | (580) | (3,501) | (3,179) | | Impairment of Investment in Third Party | — | (3,000) | — | (3,000) | | Federal, State, and Local Income Tax Expense | (446) | (120) | (1,047) | (357) | | Equity in Net (Loss) Income of Unconsolidated Investments | (10) | 115 | (7) | 310 | | Other Income (Loss) | 569 | (1,298) | 838 | (316) | | Total Other Expenses, Net | (1,068) | (4,883) | (3,717) | (6,542) | Capital Expenditures Total real estate capital expenditures in Q3 2024 were $23,395 thousand, a decrease from the prior year, with nine-month expenditures also lower, primarily in capital and tenant improvements Capital Expenditures (Thousand USD) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :----------------------- | :------------- | :------------- | :------------- | :------------- | | Capital Improvements | 7,185 | 8,546 | 11,833 | 18,336 | | Tenant Improvements | 5,376 | 7,636 | 18,723 | 20,484 | | Redevelopment and Development | 10,834 | 8,832 | 18,182 | 29,276 | | Total Real Estate Capital Expenditures | 23,395 | 25,014 | 48,738 | 68,096 | | Corporate Asset Capital Expenditures | 177 | 324 | 690 | 817 | | Capitalized Indirect Costs | 810 | 895 | 3,052 | 3,078 | | Total Capital Expenditure Activity | 24,382 | 26,233 | 52,480 | 71,991 | | Cash Paid for Leasing Commissions | 2,714 | 2,665 | 8,964 | 5,919 | Capital Projects The company is undertaking several capital projects, including ground-up development and redevelopment, with a total estimated cost of $45,607 thousand and an estimated project yield of 9%-12%, with redevelopment projects targeting 11%-20% Active Capital Projects Summary (Thousand USD) | Project Type | Costs Incurred | Future Spend | Total Estimated Cost | Estimated Project Yield | | :------------- | :--------- | :------- | :--------- | :------------- | | Ground-Up Development | 6,038 | 5,435 | 19,334 | N/A | | Redevelopment | 8,194 | 18,022 | 26,217 | 11%-20% | | Total Active Projects | 14,232 | 31,376 | 45,607 | 9%-12% | | Projects Stabilized in 2024 | N/A | N/A | 33,682 | 13% | - Ground-up development projects include The Shoppes at Windmill Place in Batavia, IL, and Murray Landing in Columbia, SC, with target stabilization from Q4 2024 to Q4 2025[48] - Redevelopment projects include Hilfiker Shopping Center in Salem, OR, and North Pointe Plaza in North Charleston, SC, with target stabilization from Q4 2024 to Q4 2025[49] Capitalization and Debt Ratios As of September 30, 2024, the company's total equity market capitalization was $5,138,063 thousand, total net debt was $2,156,043 thousand, with a net debt to annualized Adjusted EBITDAre ratio of 5.1x and net debt to total enterprise value of 29.6% Capitalization and Debt Ratios (Thousand USD) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--------------------------------- | :------------- | :------------- | | Total Common Shares and OP Units Outstanding | 136,252 | 135,000 | | Share Price (USD) | 37.71 | 36.70 | | Total Equity Market Capitalization | 5,138,063 | 4,955,000 | | Debt Obligations, Net | 2,104,788 | 1,969,000 | | Total Net Debt - Consolidated | 2,127,557 | 1,981,000 | | Pro Rata Share of Unconsolidated Joint Ventures | 28,486 | 24,000 | | Total Net Debt | 2,156,043 | 2,006,000 | | Total Enterprise Value | 7,294,106 | 6,961,000 | | Net Debt to Annualized Adjusted EBITDAre | 5.1x | 5.1x | | Net Debt to Total Enterprise Value | 29.6% | 28.8% | Summary of Outstanding Debt The company's total outstanding debt was $2,134,003 thousand, predominantly unsecured, with 93.2% of total debt at a fixed rate, a weighted average interest rate of 4.4%, and a weighted average term of 6.0 years as of September 30, 2024 Summary of Outstanding Debt (Thousand USD) | Debt Type | Outstanding Balance | Contractual Interest Rate | Maturity Date | % of Total Debt | | :----------------------- | :------- | :------- | :----- | :------------- | | Secured Debt | | | | | | Single Property Mortgages | 68,155 | 3.45%-6.15% | 2025-2031 | 3% | | Secured Pool Maturing 2027 | 195,000 | 3.52% | 2027 | 9% | | Secured Pool Maturing 2030 | 200,000 | 3.35% | 2030 | 9% | | Unsecured Debt | | | | | | Revolving Credit Facility | 36,000 | SOFR + 0.94% | 2026 | 2% | | Term Loan Maturing 2026 | 161,750 | SOFR + 1.10% | 2026 | 8% | | Term Loan Maturing 2026 | 100,000 | SOFR + 1.04% | 2026 | 5% | | Term Loan Maturing 2027 | 158,000 | SOFR + 1.10% | 2027 | 7% | | Term Loan Maturing 2027 | 165,000 | SOFR + 1.10% | 2027 | 8% | | Senior Unsecured Notes Maturing 2031 | 350,000 | 2.63% | 2031 | 16% | | Senior Unsecured Notes Maturing 2034 | 350,000 | 5.75% | 2034 | 16% | | Senior Unsecured Notes Maturing 2035 | 350,000 | 4.95% | 2035 | 16% | | Finance Leases, Net | 98 | N/A | N/A | 0% | | Total Debt Obligations | 2,134,003 | | | | Interest Rate Swaps (Thousand USD) | Swap Type | Notional Amount | Fixed Rate | | :----------------------- | :------- | :------- | | Interest Rate Swap Maturing Nov 2025 | 125,000 | 2.84% | | Interest Rate Swap Maturing Dec 2025 | 150,000 | 3.45% | | Interest Rate Swap Maturing Sep 2026 | 200,000 | 3.36% | | Total Notional Amount | 475,000 | | Debt Overview & Schedule of Maturities The company provides a detailed debt maturity schedule outlining repayment plans for secured and unsecured debt over the coming years, with 91.9% of total debt at a fixed rate, a weighted average effective interest rate of 4.4%, and a weighted average maturity of 6.0 years as of September 30, 2024 Debt Maturity Schedule (Thousand USD) | Expiration Year | Mortgage Principal Payments | Mortgages | Secured Portfolio Loans | Unsecured Term Loans | Senior Unsecured Notes | Revolving Credit Facility | Total Consolidated Debt | Pro Rata Share of Joint Venture Debt | Total Debt | Weighted Average Interest Rate | | :------- | :------------- | :------- | :----------- | :----------- | :----------- | :----------- | :----------- | :--------------- | :------- | :----------- | | 2024 | 600 | — | — | — | — | — | 600 | — | 600 | —% | | 2025 | 1,956 | 35,680 | — | — | — | — | 37,636 | — | 37,636 | 4.0% | | 2026 | 1,908 | — | — | 100,000 | — | — | 101,908 | 24,358 | 126,266 | 3.7% | | 2027 | 1,905 | 3,690 | 195,000 | 323,000 | — | 36,000 | 559,595 | — | 559,595 | 4.2% | | 2028 | 767 | 16,600 | — | 161,750 | — | — | 179,117 | — | 179,117 | 5.6% | | 2029 | 805 | — | — | — | — | — | 805 | — | 805 | —% | | 2030 | 844 | — | 200,000 | — | — | — | 200,844 | — | 200,844 | 3.4% | | 2031 | 560 | 2,840 | — | — | 350,000 | — | 353,400 | — | 353,400 | 2.7% | | 2032 | — | — | — | — | — | — | — | — | — | —% | | 2033 | — | — | — | — | — | — | — | — | — | —% | | 2034 | — | — | — | — | 350,000 | — | 350,000 | 4,632 | 354,632 | 5.8% | | 2035 | — | — | — | — | 350,000 | — | 350,000 | — | 350,000 | 5.0% | | Total | 9,345 | 58,810 | 395,000 | 584,750 | 1,050,000 | 36,000 | 2,104,788 | 28,589 | 2,133,377 | 4.4% | Debt Type Overview (Thousand USD) | Debt Type | Total Debt | % of Total Debt | Weighted Average Effective Interest Rate | Years to Maturity | | :--------------------------------- | :------- | :------------- | :--------------- | :------- | | Fixed Rate Debt | 1,988,155 | 91.9% | 4.2% | 7.5 | | Floating Rate Debt | 145,750 | 6.7% | 6.3% | 2.5 | | Total Consolidated Debt | 2,104,788 | 98.6% | 4.4% | 6.0 | | Total Consolidated + Joint Venture Debt | 2,133,377 | 100.0% | 4.4% | 6.0 | Covenant Disclosures The company discloses its compliance with debt covenants for unsecured credit facilities, term loans, and senior unsecured notes as of September 30, 2024, demonstrating adherence to all key financial ratios Unsecured Credit Facility and Term Loan Covenant Compliance (Thousand USD) | Covenant | Requirement | Sep 30, 2024 | | :--------------------------------- | :--- | :------------- | | Leverage Ratio | =<60% | 30.5% | | Secured Leverage Ratio | =<35% | 6.9% | | Fixed Charge Coverage Ratio | >=1.5x | 4.35x | | Maximum Unsecured Debt to Unencumbered Asset Value | =<60% | 28.7% | | Minimum Unencumbered NOI to Unsecured Interest Expense | >=1.75x | 5.62x | | Dividend Payout Ratio | <95% | 49.2% | Senior Unsecured Notes Covenant Compliance (Thousand USD) | Covenant | Requirement | Sep 30, 2024 | | :--------------------------------- | :--- | :------------- | | Total Debt Test | =<65% | 34.0% | | Secured Debt Test | =<40% | 7.3% | | Debt Service Test | >=1.5x | 4.84x | | Maintain Total Unencumbered Assets | =<150% | 318% | Transactional Summary Acquisition Summary For the nine months ended September 30, 2024, the company acquired 9 shopping centers and 4 land parcels for a total contract price of $211,082 thousand, with a weighted average capitalization rate of 6.8%, aiming to create value through increased occupancy and rent growth - For the nine months ended September 30, 2024, the company acquired 9 shopping centers and 4 land parcels, with a total contract price of $211,082 thousand[17][59] - In the third quarter, 5 shopping centers and 2 land parcels were acquired, totaling $95.7 million, including one shopping center purchased through a pro rata share in Necessity Retail Venture LLC[17] Key Acquisitions for Nine Months Ended 2024 | Property Name | Location | Total Leasable Area (Square Feet) | Contract Price (Thousand USD) | Leased Occupancy at Acquisition | Grocery Anchor | | :----------------------- | :----------- | :-------------------- | :---------------- | :--------------- | :------------- | | Shoppes at Lake Mary | Lake Mary, FL | 74,234 | 26,100 | 95.7% | Publix (Shadow) | | Memorial at Kirkwood | Houston, TX | 104,887 | 27,775 | 97.0% | N/A | | Loganville Crossing | Loganville, GA | 149,188 | 32,500 | 97.9% | Kroger | | Walden Park | Austin, TX | 90,888 | 26,700 | 100.0% | Super Target (Shadow) | | Ridgeview Marketplace | Colorado Springs, CO | 22,759 | 10,100 | 90.0% | King Soopers (Shadow) | | Des Peres Corners | Des Peres, MO | 120,673 | 7,680 | 87.7% | Schnucks | | Lemont Plaza | Lemont, IL | 119,013 | 16,650 | 96.6% | Pete's Fresh Market | | Rue de France | Edina, MN | 63,331 | 26,400 | 92.3% | N/A | | Bethel Shopping Center | Bethel, CT | 101,205 | 30,500 | 91.0% | Big Y Foods | - The weighted average capitalization rate was 6.8%, excluding non-income-producing assets[59] Disposition Summary For the nine months ended September 30, 2024, the company did not complete any property dispositions - For the nine months ended September 30, 2024, the company did not complete any property dispositions[60] Portfolio Summary Wholly-Owned Portfolio Summary As of September 30, 2024, the company's wholly-owned portfolio comprised 290 properties with approximately 32.9 million square feet of GLA across 31 states, featuring a leased occupancy of 97.8%, with grocery anchors contributing 30.5% of ABR and an average remaining lease term of 4.4 years Wholly-Owned Portfolio Key Data (as of Sep 30, 2024) | Metric | Data | | :--------------------------------- | :----- | | Number of Shopping Centers | 290 | | Number of States | 31 | | Total GLA (Thousand Square Feet) | 32,902 | | Average Shopping Center GLA (Thousand Square Feet) | 113 | | Total ABR (Thousand USD) | 497,082 | | ABR from Necessity-Based Retail and Services | 69.6% | | ABR from Non-Grocery Anchors | 13.5% | | ABR from In-Line Space | 56.0% | | ABR from Omnichannel Grocery-Anchored Centers | 96.6% | | ABR from Grocery Anchors | 30.5% | | Occupied GLA Leased to Grocery Tenants | 46.2% | | Grocery Health Ratio | 2.4% | | ABR from Grocery-Anchored Centers Ranked 1 or 2 in Sales | 84.3% | | Reported Grocery Sales per Square Foot (USD) | 711 | | Total Portfolio Leased Occupancy | 97.8% | | Anchor Space Leased Occupancy | 99.4% | | In-Line Space Leased Occupancy | 95.0% | | Total Portfolio Average Remaining Lease Term (Years) | 4.4 | | Grocery Anchor Space Average Remaining Lease Term (Years) | 4.4 | | Non-Grocery Anchor Space Average Remaining Lease Term (Years) | 5.0 | | In-Line Space Average Remaining Lease Term (Years) | 4.0 | | Total Portfolio Retention Rate | 91.9% | | Anchor Space Retention Rate | 97.6% | | In-Line Space Retention Rate | 81.2% | | Total Portfolio Average ABR PSF (USD) | 15.45 | | Anchor Space Average ABR PSF (USD) | 10.25 | | In-Line Space Average ABR PSF (USD) | 25.48 | ABR by Neighbor Category As of September 30, 2024, the company's portfolio ABR is primarily derived from necessity-based retail and services, accounting for 69.6%, with grocery contributing 30.5%, while other retail stores contribute 30.4%, including soft goods, full-service restaurants, and fitness services ABR by Neighbor Category (as of Sep 30, 2024) | Category | % of ABR | | :--------------------------------- | :---------- | | Necessity-Based Retail and Services | 69.6% | | Grocery | 30.5% | | Quick Service - Restaurant | 11.3% | | Medical | 6.6% | | Health & Beauty | 5.3% | | Banking, Insurance & Government Services | 3.5% | | Pet Supplies | 2.4% | | Dollar Store | 1.9% | | Education & Training | 1.5% | | Hardware/Automotive | 1.4% | | Wine, Beer & Liquor | 1.4% | | Telecom/Cellular Services | 1.3% | | Pharmacy | 0.6% | | Other Necessity | 1.9% | | Other Retail Stores | 30.4% | | Soft Goods | 13.1% | | Full Service - Restaurant | 7.5% | | Fitness & Lifestyle Services | 6.2% | | Other Retail | 3.6% | | Total ABR | 100.0% | Occupancy and ABR This section illustrates the quarterly trends in leased and economic occupancy, as well as ABR, for the company's wholly-owned portfolio over the past five quarters, with total leased occupancy at 97.8%, total economic occupancy at 97.3%, and total ABR at $497,082 thousand as of September 30, 2024 Wholly-Owned Portfolio Occupancy and ABR Quarterly Trends | Metric | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | | :----------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Leased Occupancy | | | | | | | Anchor | 99.4% | 98.8% | 98.4% | 98.9% | 99.3% | | In-Line | 95.0% | 95.1% | 94.8% | 94.7% | 94.9% | | Total Leased Occupancy | 97.8% | 97.5% | 97.2% | 97.4% | 97.8% | | Economic Occupancy | | | | | | | Anchor | 99.0% | 98.3% | 98.1% | 98.5% | 99.3% | | In-Line | 94.1% | 94.5% | 94.3% | 94.2% | 94.4% | | Total Economic Occupancy | 97.3% | 97.0% | 96.8% | 97.0% | 97.6% | | ABR (Thousand USD) | | | | | | | Anchor | 217,232 | 213,427 | 211,286 | 209,985 | 203,904 | | In-Line | 279,850 | 274,109 | 267,873 | 260,834 | 249,124 | | Total ABR | 497,082 | 487,536 | 479,159 | 470,819 | 453,028 | | ABR PSF (USD) | | | | | | | Anchor | 10.25 | 10.21 | 10.20 | 10.12 | 9.98 | | In-Line | 25.48 | 25.21 | 24.99 | 24.66 | 24.19 | | Total ABR PSF | 15.45 | 15.34 | 15.24 | 15.03 | 14.74 | Top 25 Neighbors by ABR The top 25 tenants in the company's portfolio contribute 34.2% of total ABR, with Kroger, Publix, and Albertsons as the largest grocery anchors, demonstrating their significant presence across multiple locations Top 25 Neighbors by ABR (as of Sep 30, 2024) | Rank | Tenant Name | Wholly-Owned Property Locations | Joint Venture Locations | ABR (Thousand USD) | % of ABR | Leased Area (Thousand Square Feet) | | :--- | :----------------------- | :--------------- | :--------------- | :----------- | :---------- | :-------------------- | | 1 | Kroger | 58 | 6 | 29,022 | 5.8% | 3,546 | | 2 | Publix | 52 | 9 | 26,622 | 5.3% | 2,520 | | 3 | Albertsons | 30 | 2 | 19,701 | 3.9% | 1,781 | | 4 | Ahold Delhaize | 23 | — | 17,905 | 3.6% | 1,249 | | 5 | Walmart | 13 | — | 8,823 | 1.8% | 1,770 | | 6 | Giant Eagle | 9 | 1 | 7,390 | 1.5% | 759 | | 7 | Sprouts Farmers Market | 14 | — | 6,732 | 1.3% | 421 | | 8 | TJX Companies | 18 | — | 6,298 | 1.2% | 516 | | 9 | Raley's | 5 | — | 4,599 | 0.8% | 288 | | 10 | Dollar Tree | 38 | 4 | 4,545 | 0.8% | 424 | | Total | Top 25 Tenants | 627 | 43 | 171,834 | 34.2% | 15,650 | Neighbors by Type and Industry The company's portfolio tenants are dominated by national and regional tenants in terms of leased area and ABR, with grocery stores holding the largest share in both categories by industry, followed by retail stores and services - By tenant type, national and regional tenants account for 42.6% of leased area and 36.4% of ABR, while grocery tenants represent 46.3% of leased area and 30.6% of ABR[69] - By industry, grocery stores account for 46.3% of leased area and 30.6% of ABR, retail stores for 21.6% of leased area and 23.7% of ABR, services for 29.0% of leased area and 19.7% of ABR, and restaurants for 18.8% of leased area and 10.3% of ABR[69] Properties by State The company's properties are located across 31 states, with Florida, California, Texas, and Georgia being the largest contributors to ABR, holding significant shares in property count, leased area, and ABR Property Overview by State (as of Sep 30, 2024) | State | ABR (Thousand USD) | % of ABR | ABR / Leased Area (USD) | Leased Area (Thousand Square Feet) | GLA % | Occupancy % | Number of Properties | | :----------- | :----------- | :---------- | :-------------------- | :-------------------- | :---------- | :--------- | :------- | | Florida | 61,940 | 12.3% | 15.19 | 4,163 | 12.5% | 97.9% | 53 | | California | 54,071 | 10.8% | 21.92 | 2,505 | 7.5% | 98.5% | 26 | | Texas | 47,621 | 9.5% | 18.29 | 2,670 | 8.0% | 97.5% | 22 | | Georgia | 44,665 | 8.9% | 14.26 | 3,183 | 9.6% | 98.4% | 32 | | Illinois | 30,631 | 6.1% | 16.76 | 1,934 | 5.8% | 94.5% | 17 | | Colorado | 27,096 | 5.3% | 19.29 | 1,428 | 4.3% | 98.4% | 13 | | Ohio | 25,881 | 5.1% | 11.19 | 2,340 | 7.0% | 98.8% | 19 | | Virginia | 22,930 | 4.5% | 17.27 | 1,358 | 4.1% | 97.7% | 13 | | Minnesota | 22,303 | 4.4% | 16.63 | 1,392 | 4.2% | 96.3% | 14 | | Massachusetts | 17,467 | 3.5% | 15.59 | 1,148 | 3.5% | 97.6% | 9 | | Total | 502,224 | 100.0% | 15.45 | 33,236 | 100.0% | 97.8% | 311 | New, Renewal, and Option Lease Summary In Q3 2024, the company executed 268 leases covering approximately 1.6 million square feet, achieving a 55.0% rent spread on comparable new leases and 19.8% on renewals, demonstrating strong rental growth capabilities New, Renewal, and Option Lease Activity Summary | Lease Type | Period | Number of Leases Executed | GLA (Thousand Square Feet) | ABR (Thousand USD) | ABR PSF (USD) | Weighted Average Lease Term (Years) | TI/TIA Cost PSF (USD) | Number of Comparable Leases | ABR PSF Growth (USD) | Rent Spreads (%) | | :------------- | :--- | :----------- | :--------------- | :----------- | :------------- | :---------------- | :-------------------- | :----------- | :----------------- | :----------- | | Total | Q3 2024 | 268 | 1,576 | 25,656 | 16.28 | 6.3 | 6.44 | 222 | 2.01 | 15.0% | | | Q2 2024 | 277 | 1,700 | 27,696 | 16.29 | 6.5 | 6.16 | 224 | 2.47 | 16.1% | | | Q1 2024 | 245 | 1,307 | 23,585 | 18.05 | 5.5 | 4.86 | 203 | 1.97 | 12.9% | | | Q4 2023 | 217 | 1,146 | 19,391 | 16.92 | 5.9 | 7.62 | 174 | 1.77 | 12.4% | | New Leases | Q3 2024 | 78 | 334 | 7,437 | 22.27 | 10.4 | 27.89 | 32 | 8.08 | 55.0% | | | Q2 2024 | 93 | 412 | 8,749 | 21.23 | 8.8 | 24.98 | 41 | 5.75 | 34.4% | | | Q1 2024 | 84 | 255 | 6,443 | 25.24 | 8.5 | 24.08 | 43 | 5.78 | 29.1% | | | Q4 2023 | 74 | 248 | 5,882 | 23.73 | 7.9 | 32.94 | 31 | 5.41 | 21.9% | | Renewal Leases | Q3 2024 | 136 | 307 | 7,853 | 25.59 | 4.4 | 0.73 | 136 | 4.23 | 19.8% | | | Q2 2024 | 148 | 578 | 9,625 | 16.67 | 6.6 | 0.30 | 147 | 4.20 | 20.5% | | | Q1 2024 | 118 | 381 | 8,935 | 23.47 | 4.8 | 0.54 | 117 | 3.40 | 16.9% | | | Q4 2023 | 107 | 488 | 8,962 | 18.37 | 5.8 | 1.17 | 107 | 2.28 | 14.2% | | Option Leases | Q3 2024 | 54 | 935 | 10,366 | 11.09 | 5.5 | 0.64 | 54 | 0.46 | 4.4% | | | Q2 2024 | 36 | 710 | 9,322 | 13.14 | 5.1 | — | 36 | 0.77 | 6.3% | | | Q1 2024 | 43 | 671 | 8,207 | 12.23 | 4.9 | — | 43 | 0.42 | 3.6% | | | Q4 2023 | 36 | 410 | 4,547 | 11.08 | 4.9 | — | 36 | 0.63 | 6.0% | Lease Expirations The company provides a detailed lease expiration schedule, outlining total, anchor, and in-line lease maturities over the coming years, with 2025-2029 being periods of concentrated expirations, and 2028 having the highest percentage of expiring leased GLA at 15.7% Total Lease Expiration Schedule (Thousand Square Feet and Thousand USD) | Expiration Year | Number of Leases | Expiring GLA (Thousand Square Feet) | % of Leased GLA | ABR PSF (USD) | % of ABR | | :------- | :------- | :------------------- | :-------------------- | :------------- | :---------- | | MTM | 52 | 150 | 0.5% | 15.15 | 0.5% | | 2024 | 144 | 525 | 1.6% | 15.30 | 1.6% | | 2025 | 705 | 3,474 | 10.7% | 14.63 | 10.1% | | 2026 | 903 | 4,642 | 14.3% | 15.82 | 14.6% | | 2027 | 917 | 4,509 | 13.9% | 15.60 | 14.0% | | 2028 | 834 | 5,118 | 15.7% | 15.34 | 15.6% | | 2029 | 787 | 4,931 | 15.2% | 15.72 | 15.4% | | 2030 | 312 | 2,577 | 7.9% | 14.75 | 7.7% | | 2031 | 257 | 1,387 | 4.2% | 17.42 | 4.8% | | 2032 | 198 | 1,595 | 4.9% | 14.55 | 4.6% | | 2033 | 180 | 972 | 3.0% | 18.28 | 3.5% | | 2034+ | 305 | 2,627 | 8.1% | 14.52 | 7.6% | | Total | 5,594 | 32,507 | 100.0% | 15.45 | 100.0% | Anchor Lease Expiration Schedule (Thousand Square Feet and Thousand USD) | Expiration Year | Number of Leases | Expiring GLA (Thousand Square Feet) | % of Leased GLA | ABR PSF (USD) | % of ABR | | :------- | :------- | :------------------- | :-------------------- | :------------- | :---------- | | MTM | 4 | 48 | 0.2% | 10.71 | 0.1% | | 2024 | 8 | 222 | 0.7% | 7.30 | 0.3% | | 2025 | 55 | 2,185 | 6.7% | 9.24 | 4.0% | | 2026 | 77 | 2,894 | 8.9% | 10.19 | 5.9% | | 2027 | 81 | 2,721 | 8.4% | 9.45 | 5.1% | | 2028 | 83 | 3,493 | 10.7% | 10.13 | 7.0% | | 2029 | 95 | 3,386 | 10.4% | 10.83 | 7.3% | | 2030 | 51 | 1,948 | 6.0% | 11.37 | 4.5% | | 2031 | 30 | 821 | 2.5% | 11.60 | 1.9% | | 2032 | 28 | 1,138 | 3.5% | 9.75 | 2.2% | | 2033 | 18 | 575 | 1.8% | 12.19 | 1.4% | | 2034+ | 54 | 1,988 | 6.1% | 10.22 | 4.0% | | Total | 584 | 21,419 | 65.9% | 10.26 | 43.7% | In-Line Lease Expiration Schedule (Thousand Square Feet and Thousand USD) | Expiration Year | Number of Leases | Expiring GLA (Thousand Square Feet) | % of Leased GLA | ABR PSF (USD) | % of ABR | | :------- | :------- | :------------------- | :-------------------- | :------------- | :---------- | | MTM | 48 | 102 | 0.3% | 17.20 | 0.4% | | 2024 | 136 | 303 | 0.9% | 21.17 | 1.3% | | 2025 | 650 | 1,289 | 4.0% | 23.76 | 6.1% | | 2026 | 826 | 1,748 | 5.4% | 25.15 | 8.7% | | 2027 | 836 | 1,788 | 5.5% | 24.96 | 8.9% | | 2028 | 751 | 1,625 | 5.0% | 26.54 | 8.6% | | 2029 | 692 | 1,545 | 4.8% | 26.45 | 8.1% | | 2030 | 261 | 629 | 1.9% | 25.23 | 3.2% | | 2031 | 227 | 566 | 1.7% | 25.85 | 2.9% | | 2032 | 170 | 457 | 1.4% | 26.50 | 2.4% | | 2033 | 162 | 397 | 1.2% | 27.09 | 2.1% | | 2034+ | 251 | 639 | 2.0% | 27.89 | 3.6% | | Total | 5,010 | 11,088 | 34.1% | 25.48 | 56.3% | Property List This section provides a detailed list of the company's wholly-owned properties, including name, location, ownership percentage, GLA, occupancy rate, ABR, ABR PSF, and information on primary grocery and additional anchor tenants, primarily grocery-anchored community shopping centers across multiple states - The company's wholly-owned property list details each property's name, location, ownership percentage, GLA, occupancy rate, ABR, ABR PSF, and primary grocery and additional anchor tenant information[73][74][75][76][77][78][79][80][81][82][83][84][85][86][87][88][89] - Properties are located across Arizona, California, Colorado, Connecticut, Florida, Georgia, Iowa, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maryland, Michigan, Minnesota, Missouri, North Carolina, New Jersey, New Mexico, Nevada, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin[73][74][75][76][77][78][79][80][81][82][83][84][85][86][87][88][89] - Many properties feature well-known grocery brands as anchor tenants, including Kroger, Publix, Sprouts Farmers Market, Safeway, King Soopers, Jewel-Osco, Pete's Fresh Market, and Trader Joe's[73][74][75][76][77][78][79][80][81][82][83][84][85][86][87][88][89] Additional Disclosures Earnings Guidance The company updated its full-year 2024 earnings guidance, raising the expected range for Core FFO per share and net acquisition activity, while maintaining or slightly adjusting other key metrics, reflecting the latest assessment of market conditions and operating performance Full-Year 2024 Earnings Guidance Update (Thousand USD, except per share amounts) | Metric | Q3 2024 YTD | Updated Full-Year Guidance | Previous Full-Year Guidance | | :--------------------------------- | :---------------- | :------------------- | :------------------- | | Net Income per Share (USD) | 0.36 | 0.48 - 0.50 | 0.49 - 0.54 | | Nareit FFO per Share (USD) | 1.76 | 2.35 - 2.39 | 2.34 - 2.41 | | Core FFO per Share (USD) | 1.80 | 2.40 - 2.44 | 2.37 - 2.45 | | Same-Center NOI Growth | 2.9% | 3.50% - 4.00% | 3.25% - 4.25% | | Acquisitions, Net | 211,082 | 275,000 - 325,000 | 200,000 - 300,000 | | Interest Expense, Net | 71,954 | 96,000 - 99,000 | 98,000 - 106,000 | | General and Administrative Expenses | 34,060 | 45,000 - 47,000 | 45,000 - 49,000 | | Non-Cash Revenue Items | 11,3