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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| These escalators will contribute to a rising and sustainable NOI growth profile over time |
| We also continue to drive contractual rent growth with escalators on new leases averaging 2% over the last 12 months as we realize the benefits of our high-quality portfolio |
| So we see a lot of that ancillary income and marketing events and digital signage as -- that's a great payback return |
| Continued robust leasing demand and our track record of quickly backfilling spaces vacated by troubled tenants at superior economics gives us great confidence that 2023 will be another year of solid performance for the company |
| So despite the uncertain macro environment, return of select national retailer bankruptcies, we believe RPT has the balance sheet and internal growth levers to strengthen our cash flows |
| Amy brings a deep network and a proven track record and will be a great cultural fit at RBT |
| Renewal spreads improved to 7% in the first quarter and were also up 7% on a trailing 12-month basis |
| During the quarter, we also continue to realize the benefits of our below-market rents, achieving a 39% and 23% rent spread on new leases over the trailing 12 months and during the quarter, respectively |
| Given our proactive approach, we believe we can create significant value with top-tier tenants that better credit, higher rent, stronger sales and more relevance with our consumer |
| We continue to experience strength in the leasing environment, highlighted by our third consecutive quarter of over 500,000 square feet of signed activity, compelling new re-leasing spreads of about 25%, and substantial progress on backfilling our Bed Bath concepts where we have strong demand and activity on all locations |
| See Slides 14 and 15 in our earnings presentation for more details on why we are so bullish about this market and the near-term opportunity there |
| It will be all incrementally positive as we get signed leases and redevelop both those centers |
| We ended the quarter with a strong 95.3% same-property leased rate, up 150 basis points year-over-year |
| That's a deal where we greatly improved the credit quality of the sales per square foot |
| Sales are over $1,500 per square foot, up nearly 63% since 2019, which equates to a low 4% cost of occupancy, reflective of the significant future mark-to-market upside at MBV |
| So we're really excited about the value creation and incremental NOI at both assets, considering that one asset was really 40 years old in Delray, and that's sitting in a $45 ABR market |
| We're making really, really nice returns on a lot of these Bed Bath deals, but also other opportunities within the portfolio, which really can lead to better growth in '24 and '25 |
| Fundamentals are clearly exceeding our expectations |
| And at just 83% leased, we have a unique opportunity to capitalize on one of the fastest-growing markets in the country, where rents are up 25% over the past 5 years, including an 8% increase in 2022 |
| We see enormous growth from those boxes in '24 and beyond |
| That $0.06 is without the $10 million in legal, which is robust with 681,000 square feet of new deals, which is extremely sizable |
| Same-property NOI growth for the quarter came in ahead of plan as well at 3.8%, fueled by 3% base rent growth after adjusting for some offsetting accounting movements between base rent and rental income not probable of collection highlighted on Slide 20 in our earnings presentation |
| Obviously, tenant sales are very strong |
| It's curating the optimal mix of tenants that will generate the highest level of sales and allow us to maximize rents |
| I'm more than pleased with the leasing team's execution and our proactive approach |
| And really just the migration of people and businesses to the submarket, it's thriving |
| With $1.7 billion of committed capital to deploy between our 2 joint venture platforms, we are excited to see the efficiencies of our now consolidated investments team under her leadership |
| Leasing pipeline is robust |
| Yields are good |
| The demand is good |
| Statement |
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| The lack of quality new supply is driving broad-based demand that includes grocers, off-price, general merchandise, home improvement, health and beauty, medical and sporting goods tenants |
| We do expect our operating FFO and same-property NOI to decelerate in the second quarter as we recapture space from Bed Bath & Beyond but to reaccelerate in the back half as our signed not commenced tenants begin to open and pay rent |
| I do think costs could come down over time |
| So it's going to be choppy at certain times |
| Our in-place rents for Bed Bath are near the lowest in our industry at about $11.50 per square foot, which we expect to grow by 30% to 40% |
| So there, the costs for underwriting have come down substantially as well |
| Floris Van Dijkum If I can follow up on that, just presumably, I know that some communities, in particular, in California are very difficult about granting zoning rights for those kinds of digital boards |
| We had about $425,000 or so, which is -- which equates to about 100 basis points of NOI, so 200 basis points shy of the 300 that we had estimated for the full year and continue for the full year |
| Our SNO pipeline was down slightly versus last quarter as we opened almost $3 million of gross rent on schedule, partially offset by $1.2 million of new leasing activity |
| We're very, very hesitant just given the capital markets has clearly given their signal, of patience is key |
| So it's going to be a bit heightened, but we fully expect to have that come down in '25 |
| Recent tenant bankruptcy filings, the elevated rate environment, and concerns of a potential recession serve as reminders of the importance of disciplined balance sheet management |
| The challenge here is not filling vacancy |
| We are tactically recapturing substantial space at 3 properties that are in active redevelopment or being prepared for one, which is temporarily impacting our leased and occupancy rates for our aggregate portfolio |
| There's disruption in that space |
| Those are what I've just been hearing from people in the credit markets of their concerns |
| Listeners to any replay should understand that the passage of time by itself will diminish the quality of the statements made |
| The midpoint of our operating FFO guidance continues to assume lost rent totaling 300 basis points of NOI, which is comprised of our typical bad debt reserve of 75 basis points as well as an additional 225 basis points tied to bankruptcies, primarily for Regal and Bed Bath & Beyond |
| It's still an unknown |
| For the most part, grocery deals, especially the smaller check sizes, have kind of held steady |
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