Financial Data and Key Metrics Changes - The company reported same-property NOI growth of 6.3% for Q4 and 5.7% for the year, exceeding guidance [30] - Earnings per share for Q4 was $0.34, which included $0.03 from the sale of Albertsons shares, resulting in a clean run rate of $0.30 [30] - Economic occupancy increased by 30 basis points to 93.9%, with street and urban occupancy rising by 80 basis points in Q4 and 370 basis points over 2025 [31] Business Line Data and Key Metrics Changes - The company achieved over 90% economic shop occupancy, up from approximately 81% at the end of 2021 [8] - The street retail segment outperformed other segments, with significant rental growth captured through leasing strategies [7][8] - The company signed $3.5 million of ABR in Q4, with nearly 75% from high-growth markets [17] Market Data and Key Metrics Changes - Year-over-year sales growth for tenants ranged from 10% to as high as 30% to 40% in some markets [16] - The company signed 90,000 sq ft of leases in San Francisco, indicating a recovery in that market [21] - The company is seeing strong demand in key markets like SoHo, Gold Coast Chicago, and Melrose Place [19] Company Strategy and Development Direction - The company aims for multi-year NOI growth of 5%, with a focus on leasing up vacancies and capturing rental growth [8][9] - Investments of approximately $700 million over the past 24 months are aimed at enhancing scale in key corridors [11] - The company is transitioning its investment management model to focus on multiple JV channels, executing over $800 million in JV acquisitions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail real estate sector, citing a fundamental shift benefiting open-air and street retail [5][6] - The company anticipates continued tenant demand and a robust pipeline of leases exceeding $9 million [20] - Management noted that while credit loss assumptions are conservative, the overall outlook remains positive for 2026 and beyond [35] Other Important Information - The company has a pro-rata debt to EBITDA ratio of about 5x and significant liquidity on credit facilities [38] - There are no material debt maturities in 2026, and the company is well-hedged against interest rate volatility [38] - The company is targeting a penny of FFO accretion for every $200 million of incremental gross asset value acquired [37] Q&A Session Summary Question: Can you expand on the acquisition environment and pricing perspective? - Management highlighted active markets including New York and D.C., noting that pricing is tricky due to rising rents and the potential for significant mark-to-market increases [44][46] Question: What are the main factors influencing same-property NOI growth guidance? - Management indicated that rent commencement dates, credit loss assumptions, and the pri-loose strategy are key factors affecting guidance [48] Question: How do you determine what to include in guidance versus lower probability outcomes? - Management stated that they set realistic goals and do not include assumptions that are outside their control, focusing on external growth for potential upside [52][56] Question: What is the target for street occupancy by year-end? - Management aims for 95% leased occupancy within 18 months, emphasizing the economic impact of high-value leases [64] Question: How have tariffs affected retailer results in 2025? - Management noted that retailers have navigated tariff challenges effectively, maintaining traditional rent-to-sales ratios and profitability [66]