Financial Data and Key Metrics Changes - Funds from operations (FFO) for Q2 was $297.6 million, representing a 7.3% increase year-over-year to $0.44 per diluted share compared to $0.41 in the same quarter last year [23][24] - Same site net operating income (NOI) increased by 3.1%, driven by contractual rent growth and contributions from ancillary income [25][28] - The company ended the quarter with over $2 billion in available liquidity and a consolidated net debt to EBITDA ratio of 5.4 times [27] Business Line Data and Key Metrics Changes - Executed 174 new leases for 916,000 square feet at an average spread of 34% and completed 332 renewals covering 1.8 million square feet at a 9.6% spread, contributing to a blended spread of 15.2% [9][10] - Small shop occupancy reached a record high of 92.2%, with the RPT portfolio's small shop occupancy climbing to 90.3% [8][10] - The company reported a slight dip in overall pro rata occupancy to 95.4%, primarily due to anticipated lease rejections from Joanne and Party City [9] Market Data and Key Metrics Changes - The company noted strong tenant demand translating into robust leasing spreads, with a blended pro rata leasing spread of 15%, the highest in nearly eight years [8] - The market for grocery-anchored shopping centers remains strong, with 86% of annual base rent now coming from these centers, an all-time high [10] Company Strategy and Development Direction - The company is focused on enhancing execution through innovation, including deploying AI to improve leasing processes and reduce costs [11] - Capital allocation remains disciplined, with a strategy to recycle capital from low-growth assets into higher-yielding investments [12][22] - The company aims to maintain a strong balance sheet while pursuing growth opportunities in well-located markets [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving FFO growth of over 5% for the second consecutive year, supported by strong leasing momentum and a robust pipeline of rent commencements [14][28] - The management team acknowledged the current market volatility but highlighted the opportunities it presents for Kimco due to its strong balance sheet and industry relationships [16][20] Other Important Information - The company has proactively repurchased 3 million shares at an average price of $19.61, reflecting a 9% FFO yield [27][90] - The company anticipates selling between $100 million to $150 million in low cap rate properties annually to reinvest in higher growth opportunities [18][22] Q&A Session Summary Question: Can you help us understand the outlook for the back half of the year regarding same property NOI growth? - Management increased the annual guidance to 3% or better, accounting for the impact of bankruptcies and positive operating performance [33][34] Question: What is the outlook for the structured finance book and its sustainability? - Guidance incorporates expectations of repayments, and management believes the structured finance business has viability through all parts of the cycle [39][40] Question: Is there a desire to expand the joint venture platform for acquisitions? - Management indicated ongoing conversations with partners about potential co-investments while focusing on internal recycling of capital [46][47] Question: Can you provide an update on the backfills of the Joann's and Party City boxes? - Management reported strong interest in backfill opportunities, with over 90% of spaces either leased or in advanced stages of negotiation [76] Question: What types of private buyers are competing for new deals? - Competition includes pension funds and sovereign wealth funds, with aggressive pricing observed across both single assets and portfolios [96][100]

Financial Data and Key Metrics Changes - The company reported a 12% increase in FFO as adjusted year-over-year and an 8% increase year-to-date [4] - Same property net operating income (NOI) increased by 7.4% for the quarter and 5.6% year-to-date [4][14] - Same property occupancy rose to 96.7%, up 10 basis points from the prior quarter, while SHOP occupancy reached a record high of 92.5%, up 270 basis points year-over-year [5][10] Business Line Data and Key Metrics Changes - The company executed 42 leasing deals totaling 482,000 square feet in the second quarter, including 27 renewals at a 12% spread and 15 new leases at a 19% spread [9][10] - The redevelopment pipeline totals $142 million with an expected return of 15% [7][13] Market Data and Key Metrics Changes - The investment sales market for retail assets is thriving, with the company selling $66 million of assets at a blended cap rate of 4.9% [6] - The company has acquired $552 million of high-quality shopping centers at a 7.2% cap rate and sold $493 million of non-core low-growth assets at a 5.2% cap rate [8] Company Strategy and Development Direction - The company’s strategy is anchored by five key strengths, including a concentrated portfolio in the densely populated DC to Boston Corridor and a strong redevelopment pipeline [7] - The company anticipates a substantial decrease in future capital expenditures due to high occupancy rates and significant property improvements [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the retail sector's recovery, noting strong demand for space in shopping centers and upward pressure on rents [5][6] - The company increased its 2025 FFO as adjusted guidance by $0.02 per share to a new range of $1.40 to $1.44 per share, reflecting a growth of 5% over 2024 [6][18] Other Important Information - The company has a resilient balance sheet with $1.5 billion in nonrecourse mortgages and only 9% of total debt maturing through 2026 [8][17] - Management highlighted a favorable trend in G&A expenses, projecting a reduction of 3% from 2024 [18][19] Q&A Session Summary Question: Can you discuss the upside potential for occupancy and how it translates into lease contracts? - Management indicated that they believe they can achieve between 93% to 94% SHOP occupancy, which would require additional leasing activity and noted that they have real pricing power in negotiations [21][24] Question: What are the current trends in capital recycling and cap rates? - Management noted that the acquisition market is heating up, with banks becoming more active and competitive in pricing, leading to higher expectations from sellers [26][27] Question: Any updates on Kohl's? - Management is monitoring Kohl's closely but does not see an imminent decision regarding store closures, as Kohl's is reportedly profitable in most of its stores [32][34] Question: How does the improvement in markets affect redevelopment plans? - Management expressed confidence in redeveloping existing assets due to strong tenant demand and noted that many large tenants are looking for new space [40][41] Question: Can you elaborate on the expected decline in CapEx? - Management explained that the replacement of struggling tenants with high-quality credit tenants and the completion of significant renovations have led to expectations of lower future CapEx [60][62]

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 [15][17] - The company expects to update its same property NOI growth guidance to 3.9% to 4.3% and increase FFO guidance to $2.22 to $2.25 [17] 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 [10][11] - The average in-place annual base rent (ABR) reached a new record, with a signed but not yet commenced pool totaling $67 million [7][16] Market Data and Key Metrics Changes - The company reported a sequential occupancy growth to 94.2%, with small shop leasing reaching a new portfolio high of 91.2% [11][12] - The acquisition of La Centerra, a grocery-anchored lifestyle asset, is expected to drive significant traffic and enhance the portfolio's performance [8][32] Company Strategy and Development Direction - The company is focused on disciplined capital recycling, targeting lower growth assets for sale and redeploying proceeds into higher potential assets [8][9] - The strategy includes enhancing the portfolio through value-add projects and capturing opportunities from tenant disruptions [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the strong demand for retail space, indicating a positive outlook for 2025 and beyond [13][14] - The company highlighted the importance of maintaining a strong credit profile and reducing exposure to at-risk tenants [24][25] Other Important Information - The company has a robust pipeline of identified projects worth several hundred million dollars, providing visibility on growth for the next several years [8] - The management emphasized the importance of capturing additional revenue through ancillary services and renegotiated agreements [37][41] Q&A Session Summary Question: About leasing in the quarter and future tenant disruption - Management noted strong leasing activity and expressed confidence in reaching a lease rate of 95% in the future, with a smaller watch list of at-risk tenants [20][24] Question: Rent collection and economic occupancy - Management indicated that rent commencements from backfills will accelerate base rent growth in the latter half of the year [26][27] Question: Opportunity at Lafayette and cap rate - The acquisition of La Centerra was highlighted as a classic example of value-added investing, with a cap rate in the low-6s and significant growth potential [30][33] Question: Same store NOI growth and other revenue drivers - Management explained that renegotiated agreements and backfilling vacant spaces contributed to the increase in other revenues [36][41] Question: Bad debt expense and leasing demand trends - Management expressed confidence in the underlying credit quality of the portfolio and noted that leasing demand remains strong despite potential headwinds [46][48] Question: Acquisition pipeline and competition - The company is focused on high-growth opportunities and remains disciplined in capital recycling while facing increased competition from private capital [72][74] Question: Future growth and tenant disruption - Management is optimistic about the portfolio's positioning and the potential for growth despite the possibility of additional tenant disruptions [106][107]

Financial Data and Key Metrics Changes - Same center NOI increased by 4.2% and core FFO per share increased by 8.5% year-over-year [5][26] - NAREIT FFO for the second quarter increased to $86 million or $0.62 per diluted share, reflecting year-over-year per share growth of 8.8% [26] - Core FFO for the second quarter increased to $88.2 million or $0.64 per diluted share, reflecting year-over-year per share growth of 8.5% [26] - The company raised its full-year 2025 earnings guidance for same center NOI, core FFO per share, and NAREIT FFO per share [5][29] Business Line Data and Key Metrics Changes - The company reported strong leasing momentum with comparable renewal rent spreads of 19.1% and comparable new leasing rent spreads of 34.6% for the second quarter [18][19] - Portfolio occupancy remained high at 97.4% leased, with anchor occupancy at 98.9% [19][20] - Bad debt increased from a year ago but remained within guidance range, indicating strong retailer demand [21] Market Data and Key Metrics Changes - Approximately 70% of the company's ABR comes from necessity-based goods and services, providing predictable cash flows [10] - The average population in the three-mile trade area is 68,000 with a median household income of $92,000, which is 15% above the US median [22] - The company has limited exposure to distressed retailers, with the top 10 neighbors on the watch list representing about 2% of ABR [23] Company Strategy and Development Direction - The company focuses on a grocery-anchored portfolio and necessity-based neighbor mix to drive growth and stability [6][17] - The acquisition strategy emphasizes disciplined buying and targeting high-quality centers below replacement costs [14][30] - The company aims for mid to high single-digit core FFO per share growth annually on a long-term basis [9][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the portfolio's ability to outperform despite potential tariff impacts [15][72] - The company anticipates continued strong demand from retailers, particularly in grocery-anchored centers [12][99] - Management noted that while consumer sentiment appears negative, sales continue to grow, indicating strong foot traffic at their centers [99][100] Other Important Information - The company has approximately $972 million of liquidity to support acquisition plans and no meaningful debt maturities until 2027 [27] - The weighted average interest rate on debt is 4.4%, with 95% of total debt being fixed rate [28] - The company completed a bond offering of 5.25% senior notes due in 2032 to replenish liquidity [28] Q&A Session Summary Question: What has allowed the company to win transactions in a competitive market? - The company has been active in multiple markets, acquiring properties one at a time, which has contributed to strong acquisition volume [33][34] Question: When will the headwinds from tenant turnover be resolved? - The company has backfilled about 70% of vacancies and expects continued strong leasing demand, with rent coming online in 2026 [36][39] Question: What is the outlook for same store NOI growth in the second half? - The company projects consistent growth for the remainder of the year, with expectations for sequential improvement from Q2 [44][46] Question: How is the company managing variable rate debt? - The company maintains a target of 90% fixed rate debt and is cautious about increasing variable rate exposure [58][61] Question: What is the impact of tariffs on the company's portfolio? - The company has limited exposure to tariffs, with most tenants able to pass costs onto suppliers, resulting in minimal impact on leasing [72] Question: Are there any grocers expanding in the company's markets? - Grocers such as Sprouts, Kroger, Publix, Whole Foods, and Walmart are actively expanding, with Kroger's store closures being managed effectively [107][108]

Core Viewpoint - Simon Property Group (SPG) is well-positioned to benefit from strong demand for retail real estate, with increased leasing activity, high occupancy rates, and continued rent growth [1] Group 1: Business Strategy and Growth - SPG emphasizes enhancing omnichannel retail capabilities and expanding mixed-use developments, which supports its long-term growth outlook [2] - The company has signed 259 new leases and 550 renewal leases in Q1 2025, with an occupancy rate of 95.9%, indicating strong leasing momentum [4] - SPG has invested billions in strategic acquisitions and redevelopment projects, modernizing its properties and aligning with its evolving retail strategy [5] Group 2: Financial Health - As of Q1 2025, SPG has $10.1 billion in liquidity, a total secured debt to total assets ratio of 16%, and a fixed-charge coverage ratio of 4.6, indicating strong financial flexibility [6] - The company has increased its dividend 13 times in the past five years, with a payout growth of 9.09%, reflecting a commitment to boosting shareholder wealth [7] Group 3: Market Challenges - The rise of e-commerce and cautious consumer spending amid economic uncertainty pose challenges for SPG, despite its strong operating performance [2][9] - Elevated interest rates are a concern for SPG, with a substantial debt burden of approximately $30.86 billion as of March 31, 2025, leading to increased interest expenses [11] - Mall traffic has rebounded post-pandemic, but the convenience of online shopping may adversely impact brick-and-mortar stores and retail REITs like SPG [10]

Core Viewpoint - Regency Centers Corp. is positioned for growth due to its premium portfolio of grocery-anchored shopping centers, strategic acquisitions, and a strong development pipeline, despite facing challenges from e-commerce, high interest rates, and a concentrated portfolio [1][10]. Group 1: Portfolio and Acquisitions - The company recently acquired Brentwood Place Shopping Center in Brentwood, TN, enhancing its portfolio quality in high-growth markets like Nashville [2]. - Regency's shopping centers are located in affluent suburban areas, attracting top grocers and retailers, with anchor tenants making up 42.4% of its portfolio as of December 31, 2024 [4]. - The company has a high-quality portfolio with over 80% of its centers grocery-anchored, ensuring consistent traffic, and six of its top ten tenants are high-performing grocers [5]. Group 2: Financial Performance and Management - Regency Centers executed acquisitions worth $92 million in 2024 and initiated over $250 million in development projects, with expectations for similar success in 2025 [6]. - As of December 31, 2024, the company had nearly $1.4 billion in capacity under its revolving credit facility, with a pro-rata net debt to operating EBITDAre ratio of 5.2X [7]. - The company received an 'A-' credit rating from S&P Global Ratings in February 2025, enhancing lender confidence and access to favorable debt market conditions [7]. Group 3: Dividend and Shareholder Value - Regency Centers declared a quarterly cash dividend of 70.5 cents in November 2024, a 5.2% increase from the previous quarter, with a CAGR of 3.7% in dividends from 2014 to Q4 2024 [9]. - The company has increased its dividend four times in the last five years, demonstrating a commitment to boosting shareholder wealth [9]. Group 4: Market Challenges - The shift from brick-and-mortar retail to e-commerce is expected to negatively impact retail REITs, including Regency Centers [10]. - High interest rates may dampen consumer sentiment, affecting demand for retail space and limiting rent increases and occupancy growth [10]. - The company's properties in California and Florida represent 23.1% and 18.9% of its annual base rents, making it vulnerable to market fluctuations in these regions [11].