Financial Data and Key Metrics Changes - Nareit FFO was $0.50 per diluted share in Q1, driven by same property NOI growth of 4.9% [87] - The company ended the quarter with a debt-to-EBITDA ratio of 6.1 times and total liquidity of $1.4 billion [10] - The occupancy level reached a record 94%, with a sequential increase in the anchor leased rate to 96.1% and small shop leased rate to 89.3% [101] Business Line Data and Key Metrics Changes - The company achieved new and renewal leasing spreads of 43% and 14% respectively, with an average rate on new and renewal leases exceeding $22 per foot [83] - The signed but not yet commenced lease pipeline adds $56 million of annualized base rent, with $36 million expected to commence during the remainder of 2023 [88] Market Data and Key Metrics Changes - The company noted a significant demand for retail space from various tenants, particularly in the off-price, health and wellness, specialty grocery, and restaurant sectors [99] - The market remains constrained in terms of supply, with retailers actively seeking space despite economic uncertainties [99][120] Company Strategy and Development Direction - The company is focused on capturing an outsized share of retail demand by proactively recapturing at-risk tenant space and advancing new leases with high-quality tenants [33] - The strategy includes maintaining a disciplined approach to acquisitions while leveraging a strong balance sheet to capitalize on potential opportunities in the market [60][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing momentum and the ability to navigate macroeconomic volatility, highlighting a strong demand for retail space [34][129] - The company anticipates some occupancy pressure due to recent retailer bankruptcies but believes the signed but not yet commenced leases will mitigate the impact [129] Other Important Information - The company has narrowed its 2023 guidance for same property NOI growth to a range of 2% to 3.5% [66] - The recovery ratio in Q1 was reported at 89.6%, with expectations for moderation as the year progresses [47] Q&A Session Summary Question: What is the outlook for acquisitions given the current market? - Management is closely monitoring the market and is hopeful for opportunities in the second half of the year, while remaining disciplined in their approach [56][106] Question: How is the company addressing potential occupancy pressures from recent bankruptcies? - Management believes the signed but not yet commenced leases will help minimize the impact of retailer disruptions on operational metrics [129] Question: Can you provide insights on the demand for retail space? - Demand remains strong across various sectors, with retailers committed to their store opening pipelines despite cautious outlooks [119][165] Question: What is the company's strategy regarding portfolio recycling? - The company continues to focus on disciplined asset management, looking for opportunities to maximize value through strategic dispositions [60][123]
BPG(BRX) - 2023 Q1 - Earnings Call Transcript