Financial Data and Key Metrics Changes - For 2025, the company delivered $1.05 Core FFO per share, up from $0.86 in 2021, representing a 5% CAGR [4] - Debt-to-EBITDA improved from 9.1x in 2021 to 7.0x in 2025, indicating a stronger balance sheet [4][5] - Same Store NOI growth for 2025 was 4%, with guidance for 2026 set at 3% to 4.75% [6][20] Business Line Data and Key Metrics Changes - The company achieved a record occupancy of 94.6% by the end of 2025, with leasing spreads for Q4 at 18.2% [10][20] - Bad debt was reduced to 0.55% for 2025, significantly lower than pre-pandemic levels [11] - The company acquired World Cup Plaza and Ashford Village in Q4, while disposing of Kempwood Plaza [6][7] Market Data and Key Metrics Changes - Foot traffic to the company's centers increased by 3.9% year-over-year [10] - The leasing pipeline remains robust, with strong demand in the markets served [10][20] Company Strategy and Development Direction - The company focuses on enhancing long-term value through strategic acquisitions and redevelopments, targeting properties with significant gaps between neighborhood strength and tenant quality [8][12] - A significant emphasis is placed on shop space, which requires less capital expenditure and provides greater cash flow durability [9] - The company aims for long-term Core FFO per share growth of 5% to 7% [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate long-term growth despite interest rate headwinds, citing fixed interest rates on most loans [5] - The company anticipates continued strong demand in its markets, with limited supply of neighborhood centers [9][10] - Management highlighted the importance of adapting to demographic changes and urban development in property planning [12][13] Other Important Information - The company reported cash flow from operations of $50.8 million and dividends of $27.8 million for 2025, indicating strong cash flow after dividends [22] - The dividend was increased by 5.6% for Q1 2026, with intentions to continue growing in line with Core FFO growth [22] Q&A Session Summary Question: Impact of Pillarstone settlement on balance sheet - The proceeds were used to pay down the credit facility, improving leverage immediately [24] Question: G&A guidance for the year - G&A is expected to remain at similar levels with normal cost of living increases [26][27] Question: Expectations for Q1 and beyond - The company anticipates a similar distribution of earnings growth, with Q4 typically showing higher results due to percentage rent clauses [30][31] Question: Signed, not open pipeline quantification - The company does not report signed, not open due to quick tenant turnover, but leasing traction is improving [40][42] Question: Upside potential from recent acquisitions - Ashford Village is in a growing area, while World Cup Plaza will undergo remerchandising efforts [56] Question: Increase in property expenses - The increase was due to planned maintenance and timing, not indicative of a run rate for the portfolio [58] Question: Future occupancy expectations - The company believes there is still room for occupancy growth, particularly in small spaces [66][50] Question: Redevelopment opportunities and timing - Redevelopment projects are expected to provide benefits mainly beyond 2026, with ongoing projects contributing to growth [87][91]