Financial Data and Key Metrics Changes - The company reported a same-store NOI growth of 8.2%, with the street retail portfolio delivering 13% growth during the quarter [27][28] - The quarterly FFO increased to $0.29 compared to $0.28 in the previous quarter, despite short-term dilution from the City Point loan conversion [34][35] - The company maintained its FFO guidance for 2026, moving to a simplified reporting metric that excludes investment management gains [36][37] Business Line Data and Key Metrics Changes - The company executed $3.7 million in new leases during the third quarter, bringing total signed leases year-to-date to $11.4 million [16][21] - The average GAAP spread for new and renewal leases was 32%, with a notable 36% spread in high-growth markets [16][18] - The leasing pipeline increased to $8 million, indicating strong tenant demand and leasing velocity [16][21] Market Data and Key Metrics Changes - Sales in SoHo increased by 15%, Bleecker Street by over 30%, and the Gold Coast of Chicago by over 40% year-to-date [21][22] - Despite concerns in Washington, DC, sales on M Street rose by 16% year-over-year, showcasing resilience in urban markets [22] - The company noted a resurgence in foot traffic and consumer spending, particularly among affluent consumers, driving demand for street retail [6][9] Company Strategy and Development Direction - The company aims to become the premier owner-operator of street retail in the U.S., focusing on internal growth and external acquisitions [12][13] - The strategy includes enhancing the leasing portfolio in key urban markets and capitalizing on the demand for direct-to-consumer retail locations [6][12] - The company is confident in its ability to invest accretively despite rising costs of capital, leveraging its reputation as a buyer of choice in the street retail space [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery in consumer spending, particularly among affluent consumers, which is expected to continue driving demand for retail space [46][47] - The company anticipates achieving 10% REIT portfolio NOI growth in 2026, supported by strong internal growth and a robust acquisition pipeline [33][38] - Management acknowledged the importance of adapting to market conditions and maintaining flexibility in funding strategies to support growth initiatives [64][66] Other Important Information - The company has raised approximately $212 million in equity to fund its acquisition pipeline and redevelopment projects [38] - The investment management platform is seeing increased interest from institutional investors, indicating a strong demand for retail assets [70] - The company is focused on simplifying its financial reporting to provide clearer insights into its core operating results [27][36] Q&A Session Summary Question: Can you provide details on the acquisition pipeline? - Management indicated that the $500 million pipeline is gross and includes specific negotiations, with a focus on street retail opportunities [56][57] Question: Are you seeing signs of slowing tenant demand? - Management confirmed strong tenant demand, driven by affluent consumers and the shift towards direct-to-consumer retail strategies [46][47] Question: What factors will influence the 5% to 9% same-store growth range in 2026? - Management highlighted that achieving the higher end of the range depends on the speed of leasing and market conditions, with confidence in surpassing 5% growth [51] Question: How is the company managing its balance sheet for future investments? - Management emphasized maintaining a pro-rata debt to EBITDA ratio and leveraging both equity and debt markets to fund acquisitions [64][66] Question: What is the level of demand from institutional partners for the investment management platform? - Management reported broad demand from institutional investors seeking retail opportunities, indicating a strong interest in partnering [70]