Financial Data and Key Metrics Changes - Third quarter NAIRI FFO increased to $89.3 million, or $0.64 per diluted share, reflecting year-over-year per share growth of 6.7% [12] - Third quarter Core FFO increased to $90.6 million, or $0.65 per diluted share, reflecting year-over-year per share growth of 4.8% [12] - The company has approximately $977 million of liquidity to support acquisition plans, with a net debt to trailing 12-month annualized adjusted EBITDA of 5.3 times as of September 30, 2025 [12][13] Business Line Data and Key Metrics Changes - Neighbor retention remained high at 94% in the third quarter, with record-high comparable renewal rent spreads of 23.2% [9] - Comparable new leasing rent spreads for the quarter were strong at 24.5%, with average annual rent bumps of 2.6% [9] - Portfolio occupancy remained high at 97.6% leased, with anchor occupancy at 99.2% and same-store inline occupancy at 95% [10] Market Data and Key Metrics Changes - The market for grocery-anchored shopping centers remains competitive, with the company being selective in acquisitions due to economic stability concerns [5][45] - The company has acquired 18 assets this year for $376 million, with plans to sell $50 million to $100 million of assets in 2025 [15][61] Company Strategy and Development Direction - The company is focused on recycling lower IRR properties into higher IRR properties to drive strong earnings growth [16] - The development and redevelopment pipeline includes 22 projects with an estimated total investment of $75.9 million, targeting average estimated yields between 9% and 12% [11] - The company plans to share more details on its long-term growth strategy during a business update on December 17 [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the grocery-anchored portfolio, noting that 70% of annual base rent comes from necessity-based goods and services, providing predictable cash flows [3][4] - The company expects same-center NOI growth between 3% and 4% annually on a long-term basis, with a forecast for the fourth quarter of 2025 reflecting same-center NOI growth between 1% and 2% [13][14] - Management remains optimistic about the resilience of grocers and their ability to pass on cost increases to consumers [53] Other Important Information - The company has a healthy pipeline for development and redevelopment, including a grocery-anchored retail development in Ocala, Florida [8] - The company is actively expanding its joint ventures, with a recent acquisition of a grocery-anchored shopping center in Columbia, South Carolina [7] Q&A Session Summary Question: Can you share more on acquiring development land at this point in the cycle? - Management highlighted a partnership with a national grocer interested in the growth aspects of Southern Ocala, with 10,000 new homes expected in the next five years [19][20] Question: Can you provide more detail on the current acquisition pipeline? - Management indicated they are comfortable being at the bottom end of their acquisition guidance range, with $376 million in acquisitions year-to-date and plans for more before year-end [21][22] Question: What is the upper level on leverage and how do you think about it as a funding source? - Management aims to maintain net debt to EBITDA at 5.5 times or below, with a willingness to adjust if clear opportunities arise [26][27] Question: What is your view on grocery-anchored cap rates? - Management noted that the supply-demand dynamic for grocery-anchored properties is stabilized, with no major compression in cap rates expected [78] Question: How do you think about funding your acquisition pipeline for next year? - Management emphasized maintaining a strong balance sheet and using a mix of free cash flow and dispositions to fund acquisitions [85]