Core Insights - CTO Realty Growth, Inc. announced the grand opening of two new tenants, Barnes & Noble and Boot Barn, at Plaza at Rockwall, enhancing the retail offerings in a high-growth suburban market [1][2][3] Group 1: New Tenants - Barnes & Noble opened a 20,388-square-foot store on August 27, 2025, in a repurposed Staples location, aligning with CTO's strategy to attract destination-driven retail [2] - Boot Barn launched its 15,000-square-foot store on September 2, 2025, in a space previously occupied by JoAnn's, enhancing the Center's merchandising mix [3] Group 2: Plaza at Rockwall Overview - Plaza at Rockwall spans 446,487 square feet on 42 acres and is located in a rapidly growing suburb of Dallas, anchored by major retailers like Dick's Sporting Goods and Ulta Beauty [4] - The occupancy rate at the Center has improved to 99.1% following the openings of Boot Barn and Barnes & Noble [4] Group 3: Company Strategy - The openings of these retailers reflect CTO's ongoing strategy to curate a vibrant tenant mix that meets evolving consumer demand and creates long-term value for stakeholders [5]

Financial Data and Key Metrics Changes - FFO excluding certain expenses was approximately $87 million or $0.33 per share for Q2 2025, with a notable increase in NOI for the go forward portfolio centers by 2.4% compared to 2024 [29][30][31] - Net debt to EBITDA at the end of Q2 was 7.9x, nearly a full turn lower than at the outset of the Path Forward Plan [32] Business Line Data and Key Metrics Changes - Year-to-date leasing volume reached 4.3 million square feet, significantly higher than the same period in 2024, with a 40% increase in lease signings and 75% more square footage [20][21] - Trailing twelve-month leasing spreads remained positive at 10.5%, marking 15 consecutive quarters of positive leasing spreads [19] Market Data and Key Metrics Changes - Traffic through the portfolio increased by 1.6% year-over-year, with the go forward portfolio traffic up by 2.1% [18] - Occupancy at the end of Q2 was 92%, down 60 basis points from the previous quarter, primarily due to the closure of Forever 21 stores [18] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with a target of 4 million square feet of leasing in 2025 and 2026 [7][10] - The acquisition of Crabtree Mall is seen as a strategic move to enhance the portfolio and drive shareholder value, with plans to increase occupancy from 74% to closer to 90% by 2028 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing momentum and the ability to achieve targets ahead of schedule, despite macroeconomic uncertainties [66][67] - The retail environment remains strong, with many national retailers actively seeking new spaces [25] Other Important Information - The company has made substantial progress on asset sales, with over $800 million in mall sales completed to date, and a clear path to achieving a $2 billion disposition target [35][36] - The Snow Pipeline has grown to $87 million, with expectations to exceed $100 million by year-end [13][27] Q&A Session Summary Question: Can you provide more background on the Crabtree acquisition? - Management highlighted the unique market position of Crabtree and its potential for NOI growth, emphasizing the need for leasing efforts and capital to enhance the merchandising mix [40][43] Question: What benchmarks need to be hit before reinstating guidance? - Management indicated that asset sales are crucial, and they prefer to focus on executing leasing and sales without being constrained by guidance numbers [51] Question: How is the bad debt trending? - Bad debt has decreased year-over-year, with the watch list at an all-time low, and management is confident in re-leasing spaces previously occupied by Claire's [52][54] Question: Can you discuss the tenant improvement (TI) expenses in the quarter? - Management noted that TI expenses have increased due to new leasing activity, with expectations for continued increases as they address vacant anchor stores [59][61] Question: How does the Crabtree acquisition impact external growth activities? - Management expressed confidence in pursuing additional acquisitions, citing strong leasing momentum and the potential for significant NOI growth from Crabtree [66][67] Question: What is the rationale for keeping South Plains Mall in the portfolio? - Management is currently negotiating with lenders for an extension, believing that with the right terms, they can create NOI lift at South Plains [103][105]

Financial Data and Key Metrics Changes - FFO excluding certain expenses was approximately $87 million or $0.33 per share for Q2 2025, with a notable increase in NOI for the go forward portfolio centers by 2.4% compared to 2024 [27][28] - Net debt to EBITDA at the end of Q2 was 7.9x, a decrease of nearly one full turn since the start of the Path Forward Plan [30] Business Line Data and Key Metrics Changes - Year-to-date leasing volume reached 4.3 million square feet, exceeding the target of 4 million square feet for 2025 and 2026 [8][18] - Trailing twelve-month leasing spreads remained positive at 10.5%, marking 15 consecutive quarters of positive leasing spreads [17] Market Data and Key Metrics Changes - Traffic for the portfolio increased by 1.6% compared to the same period in 2024, with the go forward portfolio traffic up by 2.1% [16] - Occupancy at the end of Q2 was 92%, down 60 basis points from the previous quarter, primarily due to the closure of Forever 21 stores [16] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with a roadmap for achieving 2028 targets [6][7] - The acquisition of Crabtree Mall is seen as a strategic move to enhance the portfolio and drive shareholder value, with plans to increase occupancy from 74% to closer to 90% by 2028 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing momentum and the overall retail environment, despite macroeconomic uncertainties [22][23] - The company is optimistic about achieving its leasing and asset sales targets, which are crucial for reinstating guidance [50] Other Important Information - The company has made significant progress on its balance sheet initiatives, including a recent $160 million term loan for Crabtree Mall [29] - The Snow Pipeline has grown to $87 million, with expectations to exceed $100 million by year-end [12][25] Q&A Session Summary Question: Can you provide more background on the Crabtree acquisition? - Management highlighted the unique market position of Crabtree and its potential for NOI growth, emphasizing the need for leasing efforts and capital to enhance the merchandising mix [38][41] Question: What benchmarks need to be hit before reinstating guidance? - Management indicated that asset sales are crucial and that they are balancing asset sales and leasing without constraining guidance numbers [50] Question: How is the bad debt trending? - Bad debt has decreased year-over-year, with the watch list at an all-time low, and management is confident in re-leasing spaces previously occupied by Claire's [52][54] Question: Can you discuss the tenant improvement (TI) expenses in the quarter? - Management noted that TI expenses have increased due to the high number of anchor stores being reconfigured, with expectations for continued increases as they drive traffic [60][62] Question: How does the Crabtree acquisition impact external growth activities? - Management expressed confidence in pursuing additional acquisitions, citing the positive leasing momentum and the potential for high returns [66][72] Question: What is the rationale for keeping South Plains Mall in the portfolio? - Management is currently negotiating with lenders for an extension, believing that with the right terms, they can create NOI lift [102][104]

Financial Performance - FY25 FFO was 20.7 cents per security, slightly above the guidance of 20.6 cents per security[17] - Distributions were also 20.7 cents per security[17] - Net property income was $46.445 million in FY25 compared to $48.350 million in FY24[74] - Portfolio valuation increased by $16.6 million, representing a 2.3% increase[41] - NTA per security increased by 2.2% from $3.56 to $3.64[32] Portfolio and Operations - Portfolio occupancy remained high at 99.9%[12] - The portfolio Weighted Average Lease Expiry (WALE) is 7.9 years[12] - Like-for-like income growth was +2.9%[17] - Average rent review achieved +3.1%[17] - $38.8 million of strategic divestments were executed[15] Capital Management - Gearing was 29.4%, at the lower end of the target range of 25-40%[14] - Average debt hedged was 72%[14] - Total borrowings amounted to $215.5 million[35] Future Outlook - FY26 FFO and distributions are expected to be 20.9 cents per security, reflecting growth of 1.2%[54]

Financial Data and Key Metrics Changes - Core FFO was $0.58 per share, a 9.4% increase over the prior year, driven by robust same center NOI growth of 5.3% [6][13] - Occupancy increased sequentially to 96.6%, with blended leasing spreads of 12% over the trailing twelve months [6][13] - Tenant sales increased by 6.2% to $465 per square foot on a trailing twelve-month basis [6] Business Line Data and Key Metrics Changes - Same center NOI increased by 5.3%, driven by higher rental revenues from strong leasing activity [13] - Other revenues continued to grow, contributing positively to overall financial performance [13] Market Data and Key Metrics Changes - Traffic to the centers was up compared to last year, indicating increased consumer engagement [9][10] - The company is seeing population shifts and residential densification in core markets, leading to increased demand for restaurants and service uses [9] Company Strategy and Development Direction - The company is focused on maximizing value through peripheral land activation, merchandising optimization, and investments in existing centers [9][11] - A strategic approach to leasing and marketing is being employed to attract new brands and expand store counts with existing tenants [8][12] - The company is leveraging AI technology to enhance customer service and optimize resources [11] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's strategic approach amidst macroeconomic uncertainties, including inflation and shifting consumer sentiment [12] - The company raised its full-year guidance for core FFO per share to $2.24 to $2.31, reflecting strong operational execution [16][17] Other Important Information - The company has approximately $614 million in total liquidity, including cash and available lines of credit [15] - 95% of the company's debt is at fixed rates, with a weighted average interest rate of 4% [15] Q&A Session Summary Question: Can you elaborate on the merchandising strategy and its impact on sales? - Management noted that there is significant demand for retail space, with many retailers actively seeking to expand into Tanger's shopping centers, leading to increased traffic and sales [21][22] Question: How did the early back-to-school strategy perform? - The early back-to-school initiative resonated well with consumers, resulting in increased traffic and sales, particularly during tax-free days [25][26] Question: What is the status of the remerchandising process? - Management indicated that remerchandising is an ongoing process, with continuous efforts to attract new brands and improve tenant mix [31][33] Question: How is the company addressing the tariff situation and its impact on leasing? - Management reported strong leasing activity despite tariff uncertainties, with over 2.8 million square feet leased in the past year [35] Question: What are the growth prospects for the company in the coming years? - Management expressed optimism about continued growth driven by internal and external initiatives, with a focus on enhancing tenant quality and customer experience [39][40] Question: Can you provide insights on tenant credit exposure? - The company maintains a manageable watch list for tenants, with minimal exposure to those filing for bankruptcy [104][105] Question: What is the outlook for outparcel opportunities? - Management highlighted a growing outparcel business, with several deals in the pipeline expected to generate significant NOI in the near term [109][111]

Financial Data and Key Metrics Changes - Core FFO was $0.58 per share, a 9.4% increase over the prior year, driven by robust same center NOI growth of 5.3% [5][12] - Occupancy increased sequentially to 96.6%, with blended leasing spreads of 12% over the trailing twelve months [5][12] - Tenant sales increased by 6.2% to $465 per square foot on a trailing twelve month basis [5] Business Line Data and Key Metrics Changes - Same center NOI increased by 5.3%, driven by higher rental revenues from strong leasing activity [12] - Other revenues continued to grow, contributing positively to overall financial performance [12] Market Data and Key Metrics Changes - Traffic to the centers was up compared to last year, indicating increased consumer engagement [6][10] - The company is seeing a shift in demographics, attracting a younger consumer base while maintaining its core value-seeking shoppers [6][51] Company Strategy and Development Direction - The company is focused on maximizing value through peripheral land activation, merchandising optimization, and investments in existing centers [7][10] - A strategic approach to leasing and marketing is being employed to attract new brands and retail categories, enhancing the overall shopping experience [6][11] - The company is leveraging AI technology to optimize customer service and enhance data analytics [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic approach amidst a challenging macroeconomic environment characterized by inflation and shifting consumer sentiment [11] - The company raised its full year guidance for core FFO per share to $2.24 to $2.31, reflecting strong operational execution [14][15] Other Important Information - The balance sheet remains strong with low leverage and ample liquidity, providing flexibility for future growth opportunities [13][10] - The company has successfully assimilated recent acquisitions and developments into its portfolio, contributing to NOI growth [11] Q&A Session Summary Question: Can you elaborate on the merchandising strategy and its impact on sales? - Management noted that there is significant demand for retail space, with many retailers actively seeking locations in their shopping centers, leading to increased traffic and sales [18][20] Question: How did the early back-to-school strategy perform? - The early back-to-school initiative resonated well with consumers, leading to increased traffic and sales, particularly during tax-free days [22][24] Question: What is the status of the remerchandising process? - Management indicated that remerchandising is an ongoing process, with continuous efforts to attract new brands and improve tenant mix [30][32] Question: How is the company addressing the tariff situation and its impact on leasing? - Management reported that there has been no significant hesitance from tenants regarding leasing decisions despite tariff uncertainties, with strong leasing activity observed [34] Question: Can you provide insights on the occupancy metrics and future expectations? - The occupancy figure of 96.6% reflects physical occupancy, and management expects continued strong demand for retail space [44][92] Question: What are the growth prospects for the company in the coming years? - Management highlighted a positive outlook for growth driven by internal and external initiatives, with a focus on enhancing tenant quality and customer experience [38][97]

Company Overview - Tanger is a leading owner and operator of outlet and open-air retail shopping destinations with over 40 retail centers and 16 million square feet of space[7,8] - The company has a market capitalization of $3.6 billion and an enterprise value of $5.3 billion[7] - Tanger's net debt to adjusted EBITDAre is 5.0x, and interest coverage ratio is 4.6x[7] - The portfolio is 95% open air and 93% of outlet square footage is in leading tourist destinations or top 50 MSAs[7] Financial Performance and Growth - The company anticipates 2025 Same Center NOI growth between 2.5% and 4.0%[17] - Tenant sales per square foot were $465 in 2Q25 TTM[17] - Rent spreads were up 12.0% in 2Q25 TTM[17] - Core FFO per share 3-year average growth is 7.5%[17] - The company expects net income per diluted share to be between $0.93 and $1.00, and Core FFO per diluted share to be between $2.24 and $2.31 for 2025[41] Balance Sheet and Capital Structure - The company's capital structure includes $3.6 billion in equity and $1.7 billion in net debt[31] - The company has $528 million in line availability and $70 million in undrawn forward equity[31] - 87% of the company's financing is unsecured[33] - 95% of the company's debt is fixed rate[33] Portfolio and Operating Metrics - The company's occupancy rate is 96.6%[56] - Blended cash rent spreads for executed comparable leases increased by 12.0%[56] - Same Center NOI increased by 3.8% in 2Q25 compared to 2Q24[56]

Financial Data and Key Metrics Changes - Real estate FFO was $3.05 per share in Q2 2025, a 4.1% increase from $2.93 in the prior year [6] - Second quarter funds from operation totaled $1,190 million or $3.15 per share, compared to $1,090 million or $2.90 per share last year, reflecting an 8.6% growth [9] - Domestic property NOI increased by 4.2% year over year for the quarter and 3.8% for the first half of the year [6] Business Line Data and Key Metrics Changes - Approximately 1,000 leases were signed for over 3.6 million square feet in the quarter, with nearly 90% of leases expiring through 2025 completed ahead of last year [7] - Malls and premium outlets ended Q2 at 96% occupancy, up 10 basis points sequentially and 40 basis points year over year [7] - The mills achieved a record occupancy of 99.3%, an increase of 90 basis points sequentially and 110 basis points from the prior year [7] Market Data and Key Metrics Changes - Average base minimum rent for malls and outlets increased by 1.3% year over year, while mills increased by 0.6% [8] - Sales for malls and premium outlets per square foot were $736 for the quarter [8] - Traffic increased by 1.5%, although some centers near borders experienced flat sales and traffic due to restrictions [67] Company Strategy and Development Direction - The company focuses on long-term value creation through disciplined investments and operational excellence, driving growth in cash flow, funds from operation, and dividends per share [5] - The acquisition of Brickell City Center was highlighted as a strategic move to enhance operations and drive NOI growth [10] - The company is optimistic about future acquisitions, emphasizing a selective approach based on product quality and pricing [36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, acknowledging the impact of tariffs and geopolitical uncertainties [58][60] - Despite challenges, management noted strong retail demand and traffic, indicating a positive outlook for the remainder of the year [20][64] - The company raised its full-year 2025 real estate FFO guidance range to $12.45 to $12.65 per share, compared to $12.24 last year [12] Other Important Information - The company announced a dividend of $2.15 per share for Q3, a year-over-year increase of $0.10 or 4.9% [12] - The company completed 21 secured loan transactions totaling approximately $3.8 billion, with a weighted average interest rate of 5.84% [11] Q&A Session Summary Question: Leasing velocity and demand insights - Management noted that despite geopolitical and domestic uncertainties, retail demand remains strong, with increased shopper traffic and sales holding steady [15][20] Question: Demand from smaller tenants - Management indicated that smaller tenants are performing well, with demand remaining strong despite concerns about tariffs affecting their cost of goods [25][26] Question: Acquisition opportunities and Brickell asset potential - Management expressed excitement about the Brickell acquisition, highlighting its unique market position and potential for growth [32][34] Question: Future acquisition strategy and market dynamics - Management clarified that they remain focused on both internal reinvestment and external acquisitions, emphasizing the importance of price sensitivity [44][50] Question: Impact of tariffs and economic outlook - Management acknowledged the cautious approach due to tariffs but expressed optimism about the US economic landscape and potential growth in 2026 [60][62] Question: Traffic growth quantification - Management reported a 1.5% increase in traffic, noting some centers near borders are experiencing flat performance due to restrictions [67][68] Question: Supply and occupancy trends - Management confirmed that the S and O pipeline is at 340 basis points, with a focus on optimizing tenant mix to enhance property performance [74][76] Question: Interest in acquiring anchor boxes - Management discussed the complexities of acquiring anchor boxes, emphasizing the importance of price and the relationship with Catalyst Brands [84][90]

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.51 and core FFO per share of $0.50 for Q2 2025, reflecting strong operational performance [14] - Same property NOI grew by 3.3%, driven by a 250 basis point contribution from higher minimum rents and a 50 basis point improvement in net recoveries [15] - The company increased its NAREIT and core FFO per share guidance by $0.01 each, primarily due to lower than anticipated bad debt and higher than anticipated overage rent [15] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q2 were 17%, the highest quarterly blended spread in the past five years [5] - Leasing spreads for non-option renewals were nearly 20% in Q2 and 16% over the last twelve months [6] - New leasing volume more than doubled sequentially, driven by 11 new anchor leases executed in Q2 [6] Market Data and Key Metrics Changes - Over 80% of the boxes recaptured due to recent bankruptcies are leased or in active negotiations, indicating strong demand in the market [11] - The small shop lease rate increased by 30 basis points sequentially and 80 basis points year over year, reflecting a disciplined approach to leasing [8] Company Strategy and Development Direction - The company is focused on capital recycling efforts to reshape its portfolio and reduce exposure to at-risk tenants, with significant steps taken in executing its long-term portfolio vision [10] - Strategic partnerships with GIC now comprise over $1 billion of gross asset value, indicating a strong focus on lifestyle and mixed-use assets [11] - The company aims to enhance its long-term growth profile by prioritizing credit quality and strong starting rents in its leasing strategy [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing momentum and the potential for significant occupancy gains in the coming quarters [14][45] - The company is focused on delivering strong results and creating long-term value, despite short-term disruptions from anchor bankruptcies [12][18] - Management believes that the current market conditions present a great opportunity for growth and investment in the stock [49] Other Important Information - The company has comprehensive flood insurance for Eastgate Crossing, which suffered flooding due to Tropical Storm Chantal [12] - The company opportunistically returned to the public debt market by issuing a seven-year $300 million bond at a coupon of 5.2% [17] Q&A Session Summary Question: Have you seen any meaningful changes in lease gestation periods? - Management noted that leasing activity has picked up substantially, indicating strong demand across the board [20] Question: What are you hearing from prospective tenants regarding higher embedded escalators? - Management reported success in generating higher growth, with embedded growth in the overall portfolio at 3.4% for the first half of the year [23][24] Question: Can you comment on the forward leasing pipeline and July activity? - Management expressed confidence in the strong demand and the quality of opportunities available for retailers [27] Question: What is the latest on the sale of City Center? - The property is still being marketed for sale, with new leasing activity providing some positive momentum [37] Question: How are you seeing investor interest in larger community centers? - Management indicated strong demand for larger format centers, with institutional investors showing renewed interest [43] Question: What is the appetite for share buybacks today? - Management stated that they are always considering buybacks but are currently focused on capital investments with high returns [102]

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.51 and core FFO per share of $0.50 for Q2 2025, reflecting a year-over-year growth despite temporary disruptions from anchor bankruptcies [15][16] - Same property NOI grew by 3.3%, driven by a 250 basis point contribution from higher minimum rents and a 50 basis point improvement in net recoveries [16] - The company increased its NAREIT and core FFO per share guidance by $0.01 each, primarily due to lower than anticipated bad debt and higher than anticipated overage rent [16] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q2 were 17%, the highest quarterly blended spread in the past five years, with non-option renewals showing almost 20% leasing spreads [6][7] - New leasing volume more than doubled sequentially, driven by 11 new anchor leases executed in the quarter, including grocery leases with Whole Foods and Trader Joe's [7][8] - Small shop lease rates increased by 30 basis points sequentially and 80 basis points year-over-year, with embedded escalators on new and non-option renewal small shop leases at 3.4% for 2025 [8][9] Market Data and Key Metrics Changes - The company reported that over 80% of the boxes recaptured due to recent bankruptcies are leased or in active negotiations, indicating strong demand in the leasing pipeline [8][12] - The strategic partnership with GIC now comprises over $1 billion in gross asset value, reflecting strong investor interest in lifestyle and mixed-use assets [11][12] Company Strategy and Development Direction - The company is focused on capital recycling efforts to reshape its portfolio and reduce exposure to at-risk tenants, with a strategy to increase focus on smaller format grocery-anchored centers and select lifestyle and mixed-use assets [11][12] - The management emphasized the importance of upgrading tenancy to bolster the durability of cash flows, trading short-term earnings disruption for long-term growth potential [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing momentum and the potential for significant occupancy gains in the coming quarters, despite the challenges posed by recent bankruptcies [15][46] - The company is confident in its ability to accelerate rent commencement timelines through proactive engagement with tenants and efficient permitting processes [32][46] - Management believes that the current market conditions present a great opportunity for growth, positioning the company well for the next few years [46][50] Other Important Information - The company has comprehensive flood insurance for Eastgate Crossing, which suffered flooding due to Tropical Storm Chantal, ensuring coverage well in excess of estimated damages [13] - The company opportunistically returned to the public debt market by issuing a seven-year $300 million bond at a coupon of 5.2% [18] Q&A Session Summary Question: Have you seen any meaningful changes in lease gestation periods? - Management noted that leasing activity has picked up substantially, indicating strong demand across the board [21] Question: What are you hearing from prospective tenants regarding higher embedded escalators? - Management reported success in generating higher growth, with average escalators for anchor tenants improving from around 1% to 1.5% [23][24] Question: Can you comment on the forward leasing pipeline and July activity? - Management expressed confidence in the strong demand and the quality of opportunities available, indicating a significant increase in new lease volume [27][28] Question: What is the latest on the sale of City Center? - The property is still being marketed for sale, with recent leasing activity providing some positive momentum [37] Question: How are you seeing investor interest in larger community centers? - Management indicated strong demand for larger format centers, with institutional investors showing renewed interest in the retail space [44][66] Question: What is the appetite for share buybacks today? - Management stated that they are always considering buybacks but are currently focused on capital investments that yield high returns [100] Question: Can you provide guidance on the equity and JV line for the rest of the year? - Management explained that the JV activities will be reflected in the income statement under unconsolidated subsidiaries, with detailed information available in the supplemental materials [93][94]