Financial Data and Key Metrics Changes - The company reported strong same-property NOI growth of nearly 5%, driven primarily by base rent growth of 4.7% [10] - Full-year earnings growth outlook has been raised, with anticipated same-property NOI growth of 5.25%-5.5% and mid-7% growth for NAREIT FFO [17][20] - The company has increased its dividend by more than 7% this quarter, reflecting strong performance [8][17] Business Line Data and Key Metrics Changes - The same-property percent lease rate stands at 96.4%, with expectations to exceed prior peak levels due to strong demand and limited new supply [10] - Cash-free leasing spreads were strong at 13% in Q3, while gap rent spreads reached near record high levels at 23% [12] - The company signed three new grocer leases in Q3, enhancing foot traffic and merchandising at key assets [11] Market Data and Key Metrics Changes - The company has a robust leasing pipeline, with 1 million sq ft of leases in negotiation, indicating continued strong leasing activity [12][68] - The tenant base remains healthy, with historically low bad debt levels and strong sales performance [7][10] Company Strategy and Development Direction - The company emphasizes ground-up development as a key differentiator, being the only national developer of grocery-anchored shopping centers at scale [8] - The development pipeline is expected to reach approximately $300 million in starts for 2025, with a total of $800 million over the past three years [14][15] - The company is focused on maintaining a strong balance sheet and generating significant free cash flow to fund external growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive advantages that position the company well for sustainable cash flow growth [9] - The outlook for 2026 anticipates same-property NOI growth in the mid-3% area, with continued contributions from development projects [19][30] - Management highlighted the importance of tenant health and strong demand in the retail environment, which supports future growth [10][20] Other Important Information - The company has successfully integrated acquisitions, including a five-property portfolio valued at $350 million [15][16] - The balance sheet remains strong, with leverage within the target range of 5x-5.5x and nearly full availability on a $1.5 billion credit facility [18] Q&A Session Summary Question: Can you provide some color on the 11 asset distribution transaction with your JV partner? - Management indicated that the transaction allowed for better capital recycling and alignment of interests with their long-term partner [22] Question: What's changing from the environment that you're seeing for 2026? - Management expects credit loss provisions to remain similar to 2025, with a healthy tenant roster contributing to stable growth [26][28] Question: How should we think about the potential on development and redevelopment starts into next year? - Management expressed confidence in finding investment opportunities, with a shift towards ground-up development [34][36] Question: Can you provide more color on the mix of new leasing being done on the anchor side versus shops? - Management noted that the increase in anchor transactions was coincidental and not development-driven [40] Question: What are you seeing in the market regarding cap rates or IRRs? - Management indicated that cap rates are trending lower due to increased capital flow into the sector, with a focus on maintaining quality investments [44][46] Question: Can you give a sense of where you're underwriting rents for anchor and small shop versus current market rents? - Management emphasized the importance of relationships with grocers and the expertise in underwriting to ensure successful developments [76][78]

Financial Data and Key Metrics Changes - The company reported strong same-property NOI growth of nearly 5%, primarily driven by a 4.7% increase in base rent [7][14] - Full-year earnings growth outlook has been raised, with anticipated same-property NOI growth of 5.25% to 5.5% and mid-7% growth for NAREIT FFO [13][14] - The dividend has been increased by more than 7%, reflecting strong performance and commitment to shareholder returns [5][14] Business Line Data and Key Metrics Changes - The same-property percent lease rate is at 96.4%, with expectations to exceed prior peak levels due to strong demand and limited new supply [7][8] - Cash-free leasing spreads were strong at 13%, while gap rent spreads reached near record high levels at 23% [9][44] - The company has signed three new grocer leases in Q3, enhancing foot traffic and merchandising at key assets [8][9] Market Data and Key Metrics Changes - The company is experiencing significant demand across nearly all retailer categories, with a healthy tenant base and historically low bad debt [4][7] - The leasing pipeline remains robust, with 1 million square feet of leases in negotiation, indicating continued strong leasing activity [9][60] Company Strategy and Development Direction - The company emphasizes its unique position as the only national developer of grocery-anchored shopping centers at scale, focusing on high-quality developments [5][11] - The development pipeline is expected to reach approximately $300 million in starts for 2025, with a total of $800 million over the past three years [11][15] - The company aims to leverage its strong balance sheet and competitive advantages to drive sustainable cash flow growth [6][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, citing strong retailer demand and favorable leasing fundamentals [10][15] - The company anticipates continued above-trend same-property NOI growth in 2026, with expectations for total NOI growth in the mid-6% area [14][15] - Management highlighted the health of the tenant base and the positive impact of capital allocation strategies on earnings growth [4][13] Other Important Information - The company has successfully integrated newly acquired properties and is actively working to source attractive investment opportunities [12][13] - The balance sheet remains strong, with leverage within the target range and significant free cash flow available for funding growth [14][15] Q&A Session Summary Question: Can you provide some color on the 11 asset distribution transaction with your JV partner? - Management indicated that the transaction allowed for better capital recycling and alignment of interests with their long-term partner [18][19] Question: What are your expectations for same-property NOI growth in 2026? - Management expects a mid-3% growth, driven by base rent and a healthy tenant roster, with credit loss provisions similar to 2025 [21][24] Question: How should we think about the potential on development and redevelopment starts into next year? - Management expressed confidence in finding investment opportunities, with a shift towards ground-up development expected to continue [26][29] Question: Can you provide more color on the mix of new leases between anchors and shops? - Management noted that the increase in anchor transactions was coincidental for the quarter and not development-driven [32][33] Question: What are you seeing in the market regarding cap rates and IRRs? - Management reported that cap rates are trending lower due to increased capital flow into the sector, with a focus on maintaining quality in acquisitions [36][39] Question: Can you elaborate on your leasing pipeline and expectations for rent spreads? - Management highlighted strong rent spreads and the importance of embedded rent steps in their leasing strategy [43][44] Question: What is prompting early discussion about 2026 expectations? - Management clarified that providing early guidance has been a practice to ensure transparency, especially following the COVID period [80][81] Question: How does retailer sentiment today compare to previous high occupancy periods? - Management indicated that current retailer sentiment is strong, with a healthy tenant base contributing to high occupancy levels [88]