Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| But we're very excited about what we're getting done |
| We finally convince them to give us an improvement in our outlook |
| At the same time, the incremental rent from all new leasing activity begins to peak, resulting in a meaningful earnings and dividend growth plus a dramatic increase in AFFO per share |
| So the value creation there is really excellent, and that's why we're plotting away |
| In closing, KRG produced another year of operational outperformance in 2023 and we intend to exceed expectations again in 2024 |
| So we’re making great progress there |
| It's improved dramatically, and our people have improved dramatically who are executing this plan |
| And if we can keep doing those deals and we spend 200, probably a little over 200 in the next two years to do that, well, you can imagine why we're so excited about AFFO and cash flow growth when we get to the end of 2025 and into 2026 |
| We are understandably proud of what we’ve accomplished in 2023 and over the course of 2024 we will continue to operate from a position of strength |
| So, we feel good about it |
| And in fact, given the normalization of credit and the movie theater, your FFO guidance looks better than where it is |
| It's such an advantage, especially in this volatile environment that we have a home at 25% to 30% returns to put our money to work |
| Last year we beat FFO by $0.11 |
| On Page 7 of our investor update, we detailed a compelling opportunity for investors based on the current share price and the potential prices at various capitalization rates taking into account the $31 million of signed-not-open NOI |
| I think that the demand is strong |
| We will aggressively lease up our vacancy while achieving higher embedded growth and enhancing the merchandising mix |
| We delivered NAREIT FFO of $2.03 per share and grew same-store by 4.8% |
| While we are very pleased with the execution and demand, we see an opportunity for further spread compression as our bonds become more liquid and our ratings improve |
| During the quarter, same property NOI grew by 2.8%, primarily driven by 170 basis point increase in minimum rent and 120 basis point increase in net recoveries |
| But as we laid out in the prepared remarks, the upside here is very substantial |
| We spent a year reintroducing KRG to the fixed income community and successfully navigated a very tight issuance window |
| So, long story short, it's just way better |
| And if you look at our occupancy versus the peer group, fortunately, we have more upside there |
| We have duly recaptured space from poorly capitalized or lower growth tenants and replaced them with tenants that have superior balance sheets, better offerings and higher growth |
| And we're already quickly making progress, because when you look at Q4 over Q3 sequentially, you see that we're growing in each category |
| We continue to have success pushing higher embedded rent bumps primarily in the small shops |
| The weather looks good |
| Improving our long-term growth trajectory will take time, but we remain focused on elevating the growth profile for the entire portfolio |
| And there's great opportunities there and it's an incredible piece of real estate, which is, of course, why we will also highlight it on our foreign 2024 tour |
| Our leverage improved to 5.1 times net debt-to-EBITDA, one of the lowest in the sector and our liquidity remains at $1.1 billion |
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| But as I explained in my opening remarks, or certain discrete things that happened, that's putting undue pressure on our same-store |
| So again, and plus, we had pressure from theater and we had pressure from Bed Bath & Beyond |
| The net impact of the bankruptcy of Bed Bath & Beyond, the failure of a large theater tenant to renew its lease in November of last year and during 2023, the company experienced a historically low level of bad debt at 42 basis points of revenue, while the mid-point of our bad debt assumption for our 2024 guidance is set at 100 basis points of total revenues |
| A lot of those line items were same-store pressures as well |
| Again, I think it’s just another area that is very misunderstood in the sense of what we’re doing to prepare to create that value |
| But I would say that in the last post COVID, there was some disruption |
| So, I think this is an aberration |
| Again, they failed to renew at the end of November, Craig |
| And as I said, it’s an aberration |
| I know it’s an aberration |
| And our leverage is one of the lowest in the space and will go lower during this period of time |
| So going through on S&P, for example, it was just about them being slow |
| And if you look at over the next five years, this year's role is pretty low |
| Again, something we can’t promise |
| That's a 90 basis point drag on same-store |
| I gather there is a bit of conservatism, both John and Heath sort of alluded to that in your initial guidance, which is always good, but it can scare people a little bit sometimes |
| It’s worth recognizing the longer-term AFFO cash flow and leverage implications due to our elevated leasing activity and associated capital spend |
| Over the first half of 2024, we expect the SNO pipeline to remain elevated, reflecting the velocity of new lease execution against the rapid pace of tenant openings |
| It's not like you see it going there |
| For more information about the factors that can adversely affect the Company’s results, please see our SEC filings, including our most recent Form 10-K |
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