Financial Data and Key Metrics Changes - The company reported a Core FFO of $14.4 million for Q1 2025, an increase of $3.7 million compared to $10.7 million in Q1 2024 [14] - On a per share basis, Core FFO was $0.46 in Q1 2025, down from $0.48 in Q1 2024, primarily due to reduced leverage and downtime from re-leasing anchor spaces [15] - The net debt to EBITDA ratio was 6.6 times at quarter end, slightly elevated from the previous quarter but a full turn lower than one year ago [14] Business Line Data and Key Metrics Changes - The company signed over 112,000 square feet of new leases, renewals, and extensions at an average rent of $24.14 per square foot, nearly 25% higher than the in-place portfolio average of $19.41 per square foot [7] - The portfolio was 93.8% leased and 91% occupied at quarter end [8] Market Data and Key Metrics Changes - The company acquired Ashley Park for $79.8 million, with a cash cap rate near the high end of guidance, indicating strong market interest [5] - The company has a signed not open leasing pipeline of $4 million in annual base rent, representing 4% of cash rents at quarter end [9] Company Strategy and Development Direction - The company continues to focus on acquiring properties in the Southeast and Southwest, with a strong pipeline of potential acquisitions [6] - The company is optimistic about re-leasing opportunities for 10 anchor spaces previously leased to tenants that filed for bankruptcy, expecting a positive cash leasing spread of 40% to 60% [8] Management's Comments on Operating Environment and Future Outlook - Management noted that leasing activity remains strong despite recent tariff uncertainties, with a well-diversified tenant base [9] - The company reaffirmed its full-year 2025 guidance for Core FFO per share of $1.80 to $1.86 and AFFO of $1.93 to $1.98 [16] Other Important Information - The company executed two SOFR swaps, fixing SOFR for $100 million of principal at a weighted average rate of 3.32% for five years, reducing the applicable interest rate significantly [11] - The company extinguished its 3.875% convertible notes for approximately $71.2 million, resulting in a debt extinguishment charge of about $20.5 million to be recorded in Q2 [13] Q&A Session Summary Question: Can you provide more detail on the anchor space negotiations? - Management indicated that leasing activity has been consistent and strong, with no pauses in discussions despite market volatility [21] Question: What drove the new lease spreads? - The new lease spreads were primarily driven by two significant leases that accounted for a large portion of the new leasing activity, resulting in spreads over 80% [23] Question: How much CapEx is required for the bankrupt tenant spaces? - The expected CapEx for re-leasing is in the range of $9 million to $12 million, covering all landlord work and commissions [30] Question: What is the expected timeframe for tenants to start paying rent after signing a lease? - A safe estimate for rent commencement is around one year, although some tenants may move in more quickly [31] Question: How does the company plan to fund new investments? - The company plans to handle funding internally with existing liquidity and is considering selling its remaining office property towards the end of the year [32] Question: Have cap rates changed since the tariff announcement? - There has been no increase in cap rates for traditional core assets, with the market remaining strong for retail shopping centers [50] Question: What is the mark-to-market upside for the Ashley Park acquisition? - The company sees opportunities for a mark-to-market upside of 10% to 20% for the Ashley Park acquisition, with significant leasing potential [58] Question: How much of the CapEx has already been spent? - Very little of the CapEx has been spent so far, as tenants need to complete their work before reimbursements begin [59] Question: Is the investment pipeline still primarily core property investments? - The company is starting to see more diverse investment opportunities and is excited about potential activity in the coming months [63]