Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.35 per share, a 6% increase over the first quarter of last year, marking the highest quarterly earnings result in the company's ten-year history [4] - Same property NOI increased by 3.8% compared to the first quarter of last year, benefiting from improved recovery ratios and better-than-expected collections [4][18] - The company has approximately $800 million of total liquidity, including $98 million in cash, with a manageable debt maturity profile [19] Business Line Data and Key Metrics Changes - The company executed 42 leases totaling 434,000 square feet, including 18 new leases amounting to 118,000 square feet with same space cash leasing spreads of 34% [4][13] - Tenant retention ratio remains high at 95%, and SHOP occupancy grew to a record 92.4% [5][14] - The same property lease rate stands at 96.6%, reflecting a 50 basis point decrease over the previous quarter [13] Market Data and Key Metrics Changes - The investment sales market is showing early signs of slowing down, with limited CMBS issuance since April [6] - Transactions with private buyers remain active, highlighted by a successful $25 million sale of land approved for residential units [7] - The company plans to reinvest capital from property dispositions into accretive acquisitions to enhance portfolio quality and growth rate [8] Company Strategy and Development Direction - The company is reiterating its 2025 full-year guidance of achieving FFO as adjusted of $1.37 to $1.42 per share, reflecting growth of 4% at the midpoint [8][20] - The company has a large redevelopment pipeline totaling $156 million, expected to generate a 14% return [10][15] - The company is focused on capital recycling, having acquired over $550 million in assets at a 7.2% cap rate while selling approximately $450 million at a 5.2% cap rate [11] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative outlook for the back half of the year due to economic volatility, despite a stronger start to the year [9][21] - The company is confident in its ability to navigate economic cycles, emphasizing the strength of its tenant roster and balance sheet [22] - Management noted that the overall health of retailer balance sheets is strong, with no significant bankruptcy risks anticipated [48] Other Important Information - The company has no corporate debt other than $50 million currently drawn on its line of credit, isolating market risk to individual assets [11] - The company has built in more conservative assumptions for the remainder of the year, incorporating contingencies for potential volatility in rent collections [21] Q&A Session Summary Question: Impact of macro uncertainty on leasing timelines - Management has not seen any slowdown from retailers, with ongoing strong demand across the portfolio [26][27] Question: Details on dispositions and acquisition opportunities - The company has successfully announced $66 million in dispositions at a 5% cap rate, with plans to pursue acquisitions [28][29] Question: Caution in guidance due to market volatility - Management has added to contingency measures in guidance but did not specify any particular tenant concerns [35][36] Question: Rent growth context and impact of bankruptcies - Management indicated a 5% to 10% increase in market rents, with no significant impact from recent bankruptcies on overall demand [44][46] Question: Performance of the portfolio in recessionary environments - Management believes the portfolio is well-positioned to perform better than typical grocery-anchored centers during economic downturns [51][52] Question: Bad debt assumptions and exposure to Kohl's - The company reiterated bad debt guidance of 75 to 100 basis points of gross rents, with no near-term bankruptcy risk for Kohl's [60]