BPG(US:BRX)2020-08-04 18:00Financial Data and Key Metrics Changes - The company reported NAREIT FFO of $0.32 per share, with same-property NOI growth at negative 9% [37] - Cash rent collections totaled $155 million, representing 73.2% of billed base rent as of June 30, with $56 million accrued but uncollected [32][34] - The company recognized $27.8 million of revenue deemed uncollectible, which included $22 million related to current period base rent [34][37] Business Line Data and Key Metrics Changes - The company signed over 400,000 square feet of new leases this quarter at an average cash-on-cash spread of 19% [14] - The forward leasing pipeline reached its highest level in several years at 1.3 million square feet, with $23 million of new ABR at an average rent of over $18 per foot [15][24] Market Data and Key Metrics Changes - Approximately 94% of tenants are currently open, with a corresponding recovery in traffic levels compared to last year [8] - The company has seen a concentration of closed tenants in bars, restaurants, and entertainment, particularly in jurisdictions with re-closure orders [9] Company Strategy and Development Direction - The company aims to capitalize on below-market rents rolling over the next three to five years, with an average rent on anchor space rolling over the next three years at $9 [17][18] - The strategy includes focusing on essential hybrid and non-essential tenants to enhance cash flow resilience [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's balanced business plan and its ability to outperform despite the crisis [16] - The company anticipates an increase in tenant failures, which will create opportunities for better and more relevant concepts [25] Other Important Information - The company suspended its third-quarter dividend to ensure adequate growth capital and to position itself for future reinvestment opportunities [27][41] - Total liquidity improved by $200 million during the quarter to $1.4 billion, with no debt maturities until 2022 [39] Q&A Session Summary Question: What categories or specific retailers are driving new demand? - Management highlighted strong demand from grocery retailers and mentioned leases signed with Dollar Tree, Five Below, Chipotle, Chase Bank, and BofA [46] Question: How do you view the potential for dislocation in transaction markets? - Management indicated they expect significant dislocation in the property market but will be patient in identifying opportunities [49] Question: What is the outlook for rent commencement dates? - Approximately 40% to 50% of the $39 million in leases expected to commence will do so in 2020, with the remainder in 2021 [66] Question: How do you expect occupancy to trend by year-end? - Management expects occupancy to be lower by year-end due to anticipated tenant failures [70] Question: What is the outlook for small shop occupancy? - Management noted that while small shop occupancy has remained stable, they expect it to decline as tenant failures materialize [86]