Financial Data and Key Metrics Changes - The company reported NAREIT FFO of $0.27 per share, representing an 8% increase over the $0.25 reported in 2024, with projected year-over-year NAREIT FFO growth of about 10% at the midpoint of guidance [40][37] - The total core occupancy increased by 50 basis points to 92.2%, with expectations to further increase occupancy to 94% to 95% by year-end [41][37] - The company anticipates same store NOI growth of 5% to 6% for the year, with a potential acceleration of 200 to 300 basis points as below-market spaces are reclaimed [41][37] Business Line Data and Key Metrics Changes - The company completed nearly $160 million in acquisitions during the quarter, focusing on core pillars of external growth, including FFO and NAV accretion [29][30] - The leasing activity in the street retail portfolio has shown significant momentum, with approximately $7.5 million of new leases executed in 2025, nearly 100% higher than the $3.8 million executed during the same period in 2024 [39][37] - The active leasing pipeline now stands at over $7 million, with a significant portion coming from high-growth streets [21][39] Market Data and Key Metrics Changes - The company noted that reported comp sales have increased double digits both quarter-over-quarter and year-over-year, with year-over-year growth on the majority of its streets well north of 20% [20][18] - The company is seeing strong demand from affluent consumers, which is reflected in the performance of its street retail portfolio [11][12] - The competitive landscape for street retail assets remains favorable, with institutional investor interest strong, but the market for street retail is less crowded compared to other segments [67][66] Company Strategy and Development Direction - The company aims to build Acadia into the premier owner-operator of street retail in the U.S., focusing on strong contractual growth and frequent accretive mark-to-market opportunities [12][13] - The strategy includes maintaining a solid balance sheet with liquidity and flexibility to drive both internal and external growth [16][15] - The company is focused on acquiring properties in key markets where it can achieve economies of scale and drive higher rents [30][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about avoiding serious economic headwinds despite concerns about tariffs and consumer spending [54][53] - The company is confident in its leasing fundamentals and the secular tailwinds in street retail, including the migration from wholesale to direct-to-consumer models [54][53] - The management highlighted the strength of the balance sheet and the ability to fund growth opportunities, projecting continued NOI growth in excess of 5% for the next several years [37][16] Other Important Information - The company raised over $800 million prior to the last quarter, providing flexibility for growth [16] - The debt markets remain strong, with a new five-year $250 million term loan executed to reduce borrowing costs [49][50] - The company has approximately $600 million of available liquidity, with net debt to EBITDA at 5.5 times [49][50] Q&A Session Summary Question: Disconnect between stock performance and portfolio health - Management noted that leasing activities are holding up well and that the market may be underestimating the secular tailwinds in street retail [53][54] Question: Comparison of landlord scale in suburban vs. street retail - Management highlighted significant benefits of scale in street retail, allowing for higher rents and better tenant relationships compared to suburban shopping centers [56][58] Question: Mark-to-market opportunities in Williamsburg - Management indicated that there are 20% plus mark-to-market opportunities in Williamsburg and other key markets, driven by strong tenant demand [63][64] Question: Changes in the transaction market for street retail assets - Management observed an increase in seller interest in the market, with more sellers willing to engage due to improved fundamentals [66][67] Question: Pipeline for investment management deals - Management confirmed that large-scale investment management deals are being underwritten, with a focus on disciplined execution [69][70] Question: Performance of suburban assets - Management noted that high-quality suburban retail is holding up well, although growth is not as strong as in street retail [73][74]

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.55 and core FFO per share of $0.53 for Q1 2025, benefiting from a $0.03 contribution from a large termination fee [15][16] - Same property NOI grew by 3.1%, driven by a 350 basis point increase from minimum rent and a 90 basis point increase in net recoveries [16][18] - The company raised its 2025 NAREIT and core FFO per share guidance by $0.02 each at the midpoints [10][18] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q1 were just under 14%, with non-option renewal spreads at 20% [9][10] - Starting rents for comparable new shop leases were nearly $41 per square foot, approximately 20% higher than the current portfolio average [9] - New and non-option renewal shop leases signed in Q1 had weighted average rent bumps of 360 basis points, nearly 100 basis points higher than three years ago [10] Market Data and Key Metrics Changes - Demand for space in high-quality centers remains healthy, with strong interest from larger format tenants [8][10] - The office component of Legacy West is 98.7% leased, while retail is at 95% [25] Company Strategy and Development Direction - The acquisition of Legacy West in a joint venture with GIC is seen as a pivotal step forward, enhancing portfolio quality and solidifying the company's position in lifestyle and mixed-use assets [11][12] - The company aims to pivot its portfolio towards mixed-use properties while still maintaining a presence in grocery-anchored centers [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to produce strong results in 2025 and deliver long-term value for stakeholders [13] - The company is optimistic about the mark-to-market opportunities within the Legacy West acquisition, expecting significant rent growth over the next three years [24][47] Other Important Information - The company has increased its general bad debt reserve midpoint by 15 basis points to 100 basis points of total revenues, reflecting increased economic uncertainty [18] - The acquisition is expected to be immediately accretive to FFO per share while modestly increasing pro forma leverage by 0.2 times [12][20] Q&A Session Summary Question: Expected NOI growth rate for Legacy West and current occupancy rates - Management indicated that the embedded rent bumps for Legacy West are 2.6%, above the portfolio average of 1.7%, with office occupancy at 98.7% and retail at 95% [23][25] Question: Office demand and tenant turnover - The office product is described as extremely strong, with high tenant satisfaction and a submarket lease percentage of around 95% [26][27][29] Question: Relationship with GIC and future investments - Management confirmed interest in expanding the relationship with GIC for additional investments and joint ventures [31] Question: Shift in bad debt reserve and tenant conversations - The shift in reserves was attributed to better-than-expected outcomes for bankruptcies, with no significant increase in aged accounts receivable [38][40] Question: Transaction environment and asset sales - The market remains healthy for larger format deals, with competitive cap rates and active acquisition buyers [41] Question: Sales productivity comparison among Legacy properties - Legacy West is expected to have similar or slightly better sales productivity compared to Southlake, with a higher concentration of luxury retail [115][118]