BPG(US:BRX)2025-04-29 14:00Financial Data and Key Metrics Changes - The company reported NAREIT FFO of $0.56 per share in Q1 2025, driven by same property NOI growth of 2.8% despite a 160 basis point drag from tenant disruption [15][16] - The debt to EBITDA ratio was reduced to 5.5 times, with $1.4 billion in available liquidity and no remaining debt maturities until June 2026 [10][17] - The signed but not yet commenced pool totaled $60 million, which includes $52 million of net new rent [16][17] Business Line Data and Key Metrics Changes - The company executed 1.3 million square feet of new and renewal leases at a blended cash spread of 21%, with new leases at 48% and renewals at 14% [12] - The occupancy rate declined to 94.1% due to the recapture of space from bankrupt tenants, but the company expects to address this with better tenants at higher rents [12][13] - The reinvestment pipeline reached $391 million with a weighted average return of 10%, and the company stabilized $28 million of reinvestment projects during the quarter [13] Market Data and Key Metrics Changes - The company continues to capture a significant share of new store openings in core categories such as grocery and specialty grocery, with strong tenant demand [8][9] - The traffic in the company's centers showed year-over-year growth, reflecting the positive impact of reinvestment and tenant performance [8] Company Strategy and Development Direction - The company is focused on capitalizing on tenant disruption to bring in better tenants at higher rents, which is part of its all-weather value-added plan [6][7] - The management expressed confidence in the ability to outperform in 2025 and 2026, supported by a robust leasing pipeline and low rent basis [9][10] - The company is well-positioned to navigate potential disruptions and capitalize on growth opportunities in the current volatile market [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the looming tariff uncertainty and potential economic slowdown but emphasized strong tenant demand and the ability to generate robust leasing activity [6][9] - The management remains optimistic about the growth visibility provided by the signed but not commenced pipeline and the ongoing leasing efforts [17][18] - The company expects base rent to accelerate in the second half of the year as new leases commence [17] Other Important Information - The company has maintained a conservative approach to guidance, allowing for additional tenant disruption while still expecting to meet its financial targets [19][20] - The management highlighted the importance of maintaining a strong credit profile and the resilience of its tenant base in the face of economic challenges [86][87] Q&A Session Summary Question: What is the exposure to Big Lots or Party City at quarter end? - The company experienced a 140 basis point impact from bankruptcies, primarily from Big Lots and Party City spaces [21][22] Question: What is the outlook for same store growth and potential risks? - Management expressed confidence in achieving growth targets, with a strong pipeline and tenant demand, while acknowledging potential risks from economic conditions [26][28] Question: How has leasing activity trended post tariff announcements? - Management noted that leasing discussions remain strong, with tenants focused on growth despite tariff concerns [31][33] Question: What are the expectations for occupancy and leasing activity related to Joann's? - The company expects to recapture Joann's spaces in May, with strong leasing activity anticipated [95][96] Question: How is the transaction market responding to current volatility? - The market has slowed slightly, but there remains strong demand for open-air retail, and the company is positioned to capitalize on opportunities [42][44]