Financial Data and Key Metrics Changes - NAREIT FFO was $0.56 per share in the second quarter, driven by same property NOI growth of 3.8% despite a 260 basis point drag from tenant disruption [13][16] - The company updated its same property NOI growth guidance to 3.9% to 4.3% and increased FFO guidance to $2.22 to $2.25 [16] Business Line Data and Key Metrics Changes - Leasing activity included 1,700,000 square feet of new and renewal leases at a blended cash spread of 24%, with over 900,000 square feet of new leases at a 44% spread [9][10] - The signed but not commenced pipeline totaled $67 million, which includes $59 million of net new rent [14] Market Data and Key Metrics Changes - The company reported a sequential occupancy growth to 94.2%, despite a 70 basis point drag from bankruptcies [10] - Small shop leasing reached a new portfolio high of 91.2% [10] Company Strategy and Development Direction - The company is focused on a value add plan that includes disciplined capital recycling and reinvestment projects, with an expected project delivery range of $150 million to $200 million [5][6] - The acquisition of La Centerra is seen as a strategic move to capitalize on below-market rents and enhance the portfolio [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, citing strong traffic and collection trends, as well as a larger forward leasing pipeline compared to the previous year [11][12] - The company remains optimistic about its ability to deliver compelling growth in 2025 and beyond, despite tenant disruptions [12][16] Other Important Information - The company has a future pipeline of identified projects worth several hundred million dollars, providing visibility on growth for the next several years [6] - The company has $1.4 billion of available liquidity and no remaining debt maturities until June 2026 [15] Q&A Session Summary Question: Path to getting the portfolio's lease rate back to 95% and tenant disruption outlook - Management noted strong leasing activity and a smaller watch list of at-risk tenants, indicating confidence in achieving higher lease rates [21][22] Question: Rent collected in the quarter and expectations for Q3 - Management indicated that rent commencements from backfills will accelerate base rent growth in the latter half of the year [24][25] Question: Same store NOI growth and driving factors - The increase in other revenues was attributed to a renegotiated parking agreement and efforts to capitalize on temporarily vacant spaces [35][36] Question: Bad debt expense and potential headwinds - Management expressed confidence in the underlying credit quality of the portfolio, with no significant concerns regarding bad debt [42][43] Question: Leasing demand trends and tenant types - Management reported strong demand across various retail categories, with a focus on high-quality tenants [46][47] Question: Earnings cadence and La Centerra contribution - Management expects acceleration in same property NOI growth in the second half of the year, with La Centerra financed through capital recycling [54][55] Question: Retailer conversations regarding tariffs and inventory - Management noted that retailers remain committed to physical stores and are navigating tariffs effectively, maintaining strong demand [60][61] Question: Acquisition pipeline and competition - Management acknowledged increased competition for grocery-anchored deals but emphasized a disciplined approach to acquisitions [66][67] Question: SHOP occupancy and future growth - Management indicated potential for further growth in small shop occupancy, particularly as redevelopment projects are completed [87][88] Question: Progress on releasing efforts for Big Lots and Jo Ann's - Management reported being about 80% resolved on backfilling spaces from recent bankruptcies, with strong leasing activity [94][95]