PresentationSo welcome to the Kimco roundtable. Joining me is Conor Flynn, who is the CEO of the company. And Conor, I'll turn it over to you to introduce the team and provide some opening remarks.Conor FlynnCEO & Director Thanks very much, and thanks for having us today. With me today are my partners here, Ross Cooper, our President and Chief Investment Officer; Glenn Cohen, our CFO; and Dave Bujnicki, our Head of IR. We're really happy to be here today. For those of you less familiar with Kimco, we are th ...

Summary of Phillips Edison & Company (PECO) 2025 Conference Call Company Overview - **Company**: Phillips Edison & Company (PECO) - **Industry**: Real Estate Investment Trusts (REITs), specifically focused on necessity-based retail properties Key Points and Arguments Market Environment - The market has experienced significant volatility, particularly influenced by tariff updates [3][4] - PECO emphasizes a long-term business approach, focusing on stability rather than short-term fluctuations [5][6] Portfolio and Business Strategy - PECO operates in the necessity-based retail sector, which is less volatile compared to discretionary retail [6][7] - The company has a strong position due to its focus on essential services, such as grocery stores and health and beauty retailers [6][14] - PECO's strategy includes maintaining relationships with top grocers to drive foot traffic and support tenant success [14][20] Retailer Sentiment and Demand - At the recent ICSC conference, 85% of PECO's retailers reported low to minimal impact from tariffs, leading to a generally positive outlook [11][12] - The company had over 400 meetings at ICSC, indicating strong engagement with retailers and a positive sentiment towards expansion [9][10] Leasing Environment - New leasing spreads were reported at 28.1%, with renewal spreads at 20% and retention rates around 90% [16][17] - The occupancy rate is at its highest level, driven by strong demand and a lack of new construction in the sector [20][21] - PECO anticipates continued growth in occupancy and leasing activity, with a strong pipeline for the remainder of the year [17][22] Financial Metrics - Foot traffic in April increased by 6% year-over-year, indicating strong consumer engagement [28] - Renewal spreads are among the highest in the industry, with potential for further growth in rental rates [29][31] Challenges and Opportunities - PECO has limited exposure to larger box retailers, focusing instead on necessity-based retail [33][34] - The company is actively managing its portfolio to address potential headwinds from specific retailers like Party City and Big Lots, with plans for replacement and reopening [32][35] Acquisition Strategy - PECO aims for $350 million to $450 million in acquisitions, targeting properties with a 9% unlevered IRR [51][53] - The company has already closed on approximately $267 million in acquisitions this year, with a focus on grocery-anchored projects [53][54] Redevelopment Initiatives - PECO invests $40 million to $50 million annually in redevelopment, focusing on smaller buildings in existing shopping centers [60][61] - The company has a strong partnership with Publix for store rebuilds, enhancing its portfolio's value [62] Financial Health and Future Outlook - PECO maintains a strong balance sheet and flexibility in accessing debt and equity markets [57][58] - The company is optimistic about achieving 3% to 4% same-center NOI growth in the coming years [55] Conclusion - PECO is well-positioned to navigate market uncertainties due to its focus on necessity-based retail, strong tenant relationships, and strategic acquisition and redevelopment plans [65][66]

Financial Data and Key Metrics Changes - Same-center NOI increased by 3.9% in Q1 2025 [7][35] - Nareit FFO rose to $89 million or $0.64 per diluted share, reflecting year-over-year share growth of 8.5% [33] - Core FFO increased to $90.8 million or $0.65 per diluted share, showing year-over-year per share growth of 8.3% [33] Business Line Data and Key Metrics Changes - Comparable renewal rent spreads were 20.8%, with in-line renewal rent spreads reaching a record high of 21.7% [19] - Comparable new leasing rent spreads for Q1 were 28.1%, with in-line new rent spreads at 27.5% [19] - Portfolio occupancy ended the quarter at 97.1% leased, with anchor occupancy at 98.4% [21] Market Data and Key Metrics Changes - 71% of the company's ABR comes from necessity-based goods and services, providing insulation from potential tariff disruptions [10] - The average population in PECO's 3-mile trade area is 68,000, with a median household income of $92,000, which is 12% higher than the U.S. median [24] Company Strategy and Development Direction - The company aims for gross acquisitions in the range of $350 million to $450 million for the year, targeting an unlevered IRR of 9% [13][14] - PECO's strategy focuses on grocery-anchored and necessity-based formats, which have historically outperformed during economic uncertainty [14][15] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the current environment, citing strong cash flows and retailer demand [15][39] - The company does not anticipate a recession but is prepared for potential economic challenges [132][146] Other Important Information - The company has approximately $760 million of liquidity to support its acquisition plans and no meaningful debt maturity until 2027 [35] - 86% of PECO's total debt is fixed rate, aligning with the company's target of 90% [37] Q&A Session Summary Question: Can you provide insights on leasing seasonality and expectations for May ICSC? - Management noted that while there is typical first-quarter seasonality, leasing activity remains strong with more leases out for signature than last year [50][52] Question: What factors could lead to higher or lower FFO guidance? - Management indicated that improvements in capital markets could push FFO to the higher end of the range, while uncertainty may lead to a conservative outlook [58] Question: How is the company managing variable rate exposure? - The company is comfortable with its current variable rate exposure and plans to maintain a fixed balance sheet [66] Question: Are there any changes in tenant demand or bankruptcy-related activity? - Management reported no significant changes in tenant demand and noted strong interest from retailers despite some bankruptcy activity in the market [110][128] Question: What is the company's approach to acquisitions in the current market? - The company remains focused on acquiring high-quality assets with a target unlevered IRR of over 9%, despite tighter initial investment spreads [99][100]