BPG(US:BRX)2024-10-29 20:20Financial Data and Key Metrics Changes - NAREIT FFO was $0.52 per share in Q3 2024, driven by same-property NOI growth of 4.1% [24] - Same-property NOI growth contribution from base rent accelerated from 380 basis points to 520 basis points [25] - The company expects same-property NOI growth for 2024 to be in the range of 4.75% to 5.25% [31] Business Line Data and Key Metrics Changes - The company executed 1.1 million square feet of new and renewal leases at a blended cash spread of 22% [18] - Record overall anchor and small shop occupancy rates reached 95.6% and 91.1% respectively [18] - The signed but not commenced pool totaled $59 million, with an average rent per square foot of $22.12, which is 27% higher than current in-place rent [29] Market Data and Key Metrics Changes - The company completed $64 million of acquisitions during the quarter, with $81 million completed year-to-date [11] - The market for open-air retail is described as healthy, with increased institutional interest [37] - The company has $250 million of value-add acquisitions under control [13] Company Strategy and Development Direction - The company is focused on capital recycling and leveraging its platform for continued growth [46] - A regional realignment was implemented to enhance operational efficiencies [9] - The company aims to drive value through accretive reinvestment, with a pipeline of over $500 million at a 9% expected yield [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business plan, citing strong demand from retailers and a favorable leasing environment [23] - The company anticipates continued growth in 2025 and beyond, driven by a robust forward leasing pipeline and attractive rent basis [15] - Management noted that the credit quality of the tenant portfolio continues to improve [74] Other Important Information - A one-time severance cost of about $2.5 million was recognized due to the regional realignment [10] - The company has a total liquidity of $1.7 billion and a debt to EBITDA ratio of 5.7 times [30] Q&A Session Summary Question: Comment on the investments market and rationale for raising equity - Management sees an improving outlook for external growth and has $250 million of accretive assets under control [35][38] Question: Contribution of signed but not commenced pipeline to 2025 - Management indicated that they are not seeing tenants push out lease commencements and are encouraged by demand [41][42] Question: Future acquisition activity and balance with dispositions - Management expects a ramp-up in acquisition activity funded through a mix of dispositions and ATM issuance [46] Question: Impact of rising rates on the transaction market - Management noted that the market is currently healthy, with a slight slowdown due to the election but expects continued activity [50] Question: Split between anchor and shop in the signed but not commenced pipeline - Approximately $27 million of the $59 million is from anchors, with encouraging rent levels [57] Question: Total redevelopment pipeline and pre-leased percentage - The redevelopment pipeline is at $500 million, with about 80% pre-leased before projects are brought on [60][62] Question: Expectations for same-store growth next year - Management expects to exceed the 4% growth rate, driven by rent commencements and reinvestments [66][88] Question: Uncollectible income and Big Lots impact - Management is pleased with the activity on Big Lots spaces, with seven out of ten boxes already resolved with new tenants [124][125]