Samir Khanal

Answer

CEO George Chappelle acknowledged that the storage pricing market is very competitive and will remain under pressure, but noted that value-added services create stickiness. He and President Robert Chambers explained that fixed commitment contracts are typically multi-year (3-7 years) with fixed monthly fees and no annual volume resets, providing stability for both Americold and its customers.

Ask Fintool Equity Research AI

Answer

CEO George Chappelle explained that while direct tariff impacts are modest, the indirect effects on consumer confidence have significantly worsened the environment in the last 30-45 days, prompting the guidance revision. He and President of Americas Rob Chambers affirmed their pricing strategy, citing the company's value proposition, contractual rate increases, and disciplined commercial approach as key differentiators.

Ask Fintool Equity Research AI

Answer

CEO George Chappelle identified partnership-driven developments with entities like DP World and CPKC as green shoots, as they are not tied to consumer demand. He anticipates a broader recovery in the second half of next year. President of the Americas, Rob Chambers, added that the new business pipeline for same-store occupancy is very healthy, representing over $200 million in probability-weighted revenue. Regarding pricing, management reiterated that comps will normalize in Q4 but expressed confidence in their ability to price ahead of inflation long-term due to value-added services and contractual GRIs.

Ask Fintool Equity Research AI

Answer

EVP Wendy Seher noted that retailers are focused on securing the best long-term real estate despite headwinds like tariffs, and listed a broad mix of tenants. CEO Donald Wood added that much of the activity is proactive 'blend and extend' renewals to lock in long-term cash flow.

Ask Fintool Equity Research AI

Answer

President & CEO Greg Lehmkuhl responded that the primary indicator they track is direct customer feedback and their own occupancy data, which already shows a bounce off the bottom. While their guidance doesn't assume a broad market rebound, he noted that factors like interest rate relief or finalized tariff deals could act as positive catalysts for inventory growth.

Ask Fintool Equity Research AI

Answer

CEO W. Lehmkuhl reiterated that the multiyear inventory stocking cycle concluded in Q3 2024, and warehouse activity has since returned to normal seasonal patterns. He expressed confidence in a second-half recovery due to easier year-over-year comparisons and analysis from their data science team, which shows current trends align with nearly a decade of historical data for core inventory holdings.

Ask Fintool Equity Research AI

Answer

CFO Robert Crisci explained that while near-term growth is against tough comps, the two-year stacked growth rate aligns with their mid-single-digit 'flywheel' target. He expressed confidence in achieving this long-term goal through cost controls and operating leverage, with a formal update coming in February.

Ask Fintool Equity Research AI

Answer

President & CEO David Cramer confirmed the ECRI program remains stable and effective, with recent data helping to refine the strategy. Regarding the dividend, he explained the Board maintains a long-term view, confident in the business's ability to improve its payout ratio due to the sector's dynamics.

Ask Fintool Equity Research AI

Answer

CFO Brandon Togashi confirmed that Q2 revenue and NOI are expected to remain negative year-over-year, with an inflection to positive growth anticipated in the back half of the year, though the exact timing is uncertain. CEO Dave Cramer added that while seasonality is a factor, atypical street rate improvements from late last year through Q1, combined with a productive ECRI program, indicate fundamental strength beyond just seasonal trends.

Ask Fintool Equity Research AI

Answer

CFO Brandon Togashi confirmed that the guidance implies continued sequential improvement, with revenue and NOI expected to turn positive in the back half of the year, though the exact timing is uncertain. CEO Dave Cramer added that while seasonality is a factor, the company has also seen atypical street rate improvements since late last year, driven by a successful rate program and ECRI, suggesting a component of fundamental strength beyond just seasonality.

Ask Fintool Equity Research AI

Answer

CEO Dave Cramer and CFO Brandon Togashi explained the guidance reflects post-internalization efficiencies, a return to normal seasonality, and improved operational tools. Cramer noted minimal impact from California fire restrictions, affecting only eight stores. Regarding capital recycling, he confirmed more non-core dispositions are planned in 2025 to improve the portfolio, with deal flow remaining strong and cap rates stable.

Ask Fintool Equity Research AI

Answer

CFO Timothy Martin explained that the high end of guidance was trimmed because an anticipated strong demand recovery did not fully materialize. President & CEO Christopher Marr added that the New York MSA is performing well, with net rental income accelerating, led by the boroughs and Long Island, while Northern New Jersey's recovery is more gradual.

Ask Fintool Equity Research AI

Answer

CFO Timothy Martin explained the top end of guidance was lowered because a stronger demand recovery, which was previously considered possible, has not materialized. CEO Christopher Marr addressed the New York market, stating that while net rental income accelerated, total revenue faced a difficult comparison due to fee structure changes made in the prior year. He confirmed strong performance in the boroughs and Long Island, with Northern New Jersey gradually improving.

Ask Fintool Equity Research AI

Answer

CEO Christopher Marr attributed the resilient demand to a diverse customer base with varied, need-based life events, rather than a single driver. He also confirmed that April-end occupancy was 89.9%. Marr noted that the year-over-year decline in move-in rates narrowed significantly, from down 10% in Q4 to down 8% in Q1, and further to down about 2% in April, indicating improving pricing power.

Ask Fintool Equity Research AI

Answer

CEO Joseph Margolis attributed the gradual progress to the time it takes for rate improvements to compound given monthly customer turnover. He confirmed the LSI portfolio is performing as expected and should add 60 basis points to same-store performance this year. EVP & CFO Jeff Norman added that Sunbelt markets faced headwinds from new supply and tough comps.

Ask Fintool Equity Research AI

Answer

CEO Joseph Margolis explained that leasing strategy is driven by dynamic pricing algorithms and has not changed. He detailed LSI integration progress, noting a 10.4% rental increase at former LSI stores and $1.3 million in paid search savings. CFO P. Scott Stubbs clarified the JV exchange had no Q1 impact as it closed on March 31 and will be reflected in non-same-store NOI going forward.

Ask Fintool Equity Research AI

Answer

CEO Joseph Margolis explained that customer move-outs due to ECRIs are tracked against a control group and remain within an acceptable range. Regarding the bridge loan program, he noted a strong 2024 but anticipates some downward pressure on the portfolio size next year due to significant maturities, though the company will remain active in new originations.

Ask Fintool Equity Research AI

Answer

EVP & COO David Jamieson explained the higher termination fee was primarily from a single large redevelopment project, not a broader trend. He and CEO Conor Flynn noted the tenant watch list is the smallest it's ever been, with strong operators actively taking market share from weaker ones.

Ask Fintool Equity Research AI

Answer

Glenn Cohen, CFO, attributed the strong recoveries to good collections, the structure of fixed CAM agreements, and favorable timing. He also highlighted that insurance costs came in lower than anticipated. Conor Flynn, CEO, added that the lower insurance costs demonstrate a key benefit of the portfolio's scale and diversity.

Ask Fintool Equity Research AI

Answer

CEO Conor Flynn did not provide specific 2025 guidance but outlined a positive outlook based on muted supply and strong tenant demand. He identified key growth levers as compressing the signed-but-not-open pipeline and accretively recycling capital from asset monetizations (like entitled units) into higher-growth centers, which could enhance the company's growth profile.

Ask Fintool Equity Research AI

Answer

CEO Conor Flynn declined to give specific 2025 guidance but highlighted positive fundamentals like muted bankruptcies and strong tenant demand. He pointed to differentiators like monetizing entitled units and recycling assets into higher-growth centers as levers to enhance the growth profile.

Ask Fintool Equity Research AI

Answer

EVP & CFO Mike Mas explained that while base rent remains the primary driver, the growth rate is expected to decelerate in the second half. This is due to the known timing of bankruptcy-related move-outs from tenants like Party City and Rite Aid, and an anticipated normalization of uncollectible lease income, which was exceptionally low in the first half. He also noted that Q2 benefited from some one-time items like shifted percentage rent and strong expense recoveries.

Ask Fintool Equity Research AI

Answer

CFO Mike Moss explained that while a deceleration from Q2's exceptional results is expected, base rent will remain the primary driver. He noted that the second half will be impacted by known bankruptcy-related move-outs and a normalization of uncollectible lease income, which was unusually low in the first half. Moss also highlighted that Q2 benefited from some one-time items like shifted percentage rent and higher-than-expected expense recoveries.

Ask Fintool Equity Research AI

Answer

EVP & CFO Steven Gallagher explained that about half of the increase came from a renegotiated parking agreement at Pointe Orlando, which now allows Brixmor to capture more revenue upside. The remainder was driven by the ancillary revenue team capitalizing on temporarily vacant spaces. President & COO Brian Finnegan added that this is part of a broader, recurring strategy to generate fees from sources like EV charging and solar.

Ask Fintool Equity Research AI

Answer

CEO Jim Taylor emphasized that the company has excellent visibility into future growth due to its large, contractual signed-but-not-commenced (SNO) pipeline. He stated this pipeline provides significant growth momentum through 2025 and into 2026, forming a key part of the company's 'all-weather' business plan that allows it to perform well even in volatile periods.

Ask Fintool Equity Research AI

Answer

CEO James Taylor explained that at the current share price, the company's focus for funding external growth is on capital recycling. He noted an encouraging increase in the availability of target assets that fit Brixmor's value-add framework and emphasized that the company will remain disciplined, viewing its equity as precious.

Ask Fintool Equity Research AI

Answer

CEO James Taylor responded that at the current share price, the company's focus for funding external growth is on capital recycling rather than issuing equity. He noted an encouraging increase in the availability of target assets that fit Brixmor's value-add framework and emphasized that the company will remain disciplined, viewing its equity as precious.

Ask Fintool Equity Research AI

Answer

COO Brian Finnegan detailed that the growth is driven by three main factors: embedded rent growth in existing leases, the compounding impact of the SNO pipeline (as 2024 commencements contribute for a full year plus new 2025 commencements), and contributions from the stabilizing redevelopment pipeline.

Ask Fintool Equity Research AI

Answer

President & COO Brian Finnegan explained that growth will be driven by the compounding impact of the SNO pipeline. Leases commenced in 2024 will contribute for a full year in 2025, layered on top of new leases that will commence during 2025. This 'layering impact,' combined with embedded rent bumps and redevelopment deliveries, provides high confidence in exceeding 4% growth.

Ask Fintool Equity Research AI

Answer

CFO John Caulfield clarified that the perceived slowdown is due to a difficult comparison against a strong Q4 2024 (6.5% growth) and that sequential NOI dollar growth is expected in 2025. Chairman & CEO Jeffrey Edison stated the acquisition mix is opportunity-driven, highlighting that acquired shadow-anchored centers feature high-performing grocers.

Ask Fintool Equity Research AI

Answer

CEO Jeffrey Edison stated that their approach to renewals remains unchanged, as they continue to expect significant rent increases. He detailed that they estimate only about 10% of their tenants would be significantly impacted by tariffs, with the vast majority being insulated due to their necessity-based and service focus. Edison confirmed that while there are always shifts by category, overall retailer demand remains strong enough that they have not altered their leasing strategy.

Ask Fintool Equity Research AI

Answer

President and CEO Marshall Loeb explained that after a strong start to the year, leasing for larger spaces slowed due to tariff uncertainty, though the prospect pipeline remains full. He noted a recent pickup in June and July, particularly for spaces 50,000 square feet and below. Loeb mentioned that some development leases have stalled at the corporate level but expressed optimism that activity can turn around quickly, similar to late last year.

Ask Fintool Equity Research AI

Answer

President and CEO Marshall Loeb responded that leasing for spaces 50,000 sq. ft. and below remained steady, but decisions for larger spaces have elongated due to tariff-related uncertainty. He noted that while the total number of leases signed was strong, the total square footage was down from prior record quarters. Loeb added that activity picked up slightly in June and July, but some deals near the finish line have been frustratingly put on hold by tenants' corporate offices.

Ask Fintool Equity Research AI

Answer

Executive Marshall Loeb clarified that the focus is on the speed of execution—turning around lease documents promptly—rather than conceding on economic terms like rent or tenant improvements. The goal is to finalize deals before macroeconomic news can cause prospects to hesitate. He noted that while they might 'stretch a little more' in a challenged market like Los Angeles, they are not compromising on credit standards or making bad deals.

Ask Fintool Equity Research AI

Answer

President and CEO Marshall Loeb reaffirmed that 4-5% market rent growth is still an accurate forecast for the year for their product type. He anticipates a future 'rent squeeze' that will push rents higher as the construction pipeline shrinks, noting that excluding Southern California, the portfolio is currently seeing growth around the 4% range.

Ask Fintool Equity Research AI

Answer

COO Laura Clark explained that while the mark-to-market trend depends on market rent growth, Rexford's growth is not reliant on it. She emphasized that only 15% of the portfolio rolls annually and pointed to significant embedded growth from other sources, including $70 million in incremental NOI from redevelopments and 3.7% average contractual rent steps.

Ask Fintool Equity Research AI

Answer

COO Laura Clark explained that while the mark-to-market trend depends on market rent growth, Rexford's growth is not reliant on it. She highlighted that only 15% of the portfolio rolls annually and pointed to more significant growth drivers, including $70 million of incremental NOI from redevelopments and contractual rent steps averaging 3.7%.

Ask Fintool Equity Research AI

Answer

COO Laura Clark explained that while the mark-to-market trend depends on market rent growth, Rexford's growth is not reliant on it due to the small portion of the portfolio rolling annually (15%). She highlighted more significant growth drivers, including $70 million of incremental NOI from redevelopments and strong contractual rent steps averaging 3.7%.

Ask Fintool Equity Research AI

Answer

COO Laura Clark responded that while the future mark-to-market depends on market rent growth, only about 15% of the portfolio rolls annually. She emphasized that Rexford's growth is not dependent on mark-to-market, highlighting $70 million of incremental NOI from redevelopments and strong contractual rent steps averaging 3.7%.

Ask Fintool Equity Research AI

Answer

COO Laura Clark responded that while the mark-to-market trend depends on market rent growth, Rexford's growth is not solely dependent on it. She emphasized that only about 15% of the portfolio rolls annually and pointed to other significant growth drivers, including $70 million of incremental NOI from redevelopments and strong contractual rent steps averaging 3.7%.

Ask Fintool Equity Research AI

Answer

CFO Michael Fitzmaurice explained that the guidance was sensitized against historical downturns like the GFC and the pandemic. He confirmed the low end of the range already incorporates conservative assumptions, including a longer lease-up time for redevelopments (9 months vs. 6 months historical) and a bad debt assumption of 75 basis points, which is double the portfolio's recent average.

Ask Fintool Equity Research AI

Answer

Co-CEO Howard Schwimmer noted that Rexford's smaller-sized product in the Inland Empire is outperforming the broader market, with rent declines slowing. Co-CEO Michael Frankel identified a 'green shoot' in tenant behavior, pointing to their willingness to sign leases with high annual rent escalators (3.9-4%) as a sign of long-term confidence and the essential nature of their spaces.

Ask Fintool Equity Research AI

Answer

President Dan Letter noted the transaction market has been resilient, with capital chasing high-quality assets and driving core returns into the low 7% range. He said Prologis is focusing on value-add opportunities with 150-200 bps better returns, such as broken developments or vacant properties. CEO Hamid Moghadam added that returns in Europe are even lower, in the low 6% range.

Ask Fintool Equity Research AI

Answer

Dan Letter, President, explained that this smaller-space segment typically has the lowest occupancy due to shorter lease terms and higher churn. Christopher Caton, Managing Director, added that market strength is broad, not isolated. Hamid Moghadam, CEO, also pointed out that while these tenants may have lower credit, the high replacement cost for smaller buildings provides a barrier to new supply.

Ask Fintool Equity Research AI

Answer

Managing Director Christopher Caton addressed the question, explaining that unexpectedly healthy holiday consumption pulled goods from the supply chain, causing a temporary dip in utilization that is not representative of the underlying trend. He added that customers are reporting that their utilization is actually rising and inventory building is expected in 2025.

Ask Fintool Equity Research AI

Answer

CEO David Simon stated that it remains 'business as usual' for lease negotiations, as tenant demand is still strong and supply is constrained. He mentioned that while he has some concern for smaller 'mom-and-pop' retailers if uncertainty persists, they have not seen any broad-based issues or changes in their leasing strategy.

Ask Fintool Equity Research AI

Answer

Jackson Hsieh, President and CEO, advised to trust the process, explaining that significant investments, the addition of 26 new anchors, and an influx of best-in-class brands are designed to drive traffic and sales productivity over time. He expressed confidence that these actions will lead to the desired results, even if not immediately visible in current sales metrics.

Ask Fintool Equity Research AI

Answer

Senior Executive Vice President of Leasing Doug Healey responded that there has been no correlation between flat sales and retailer demand, which remains robust and is up 40% in terms of square footage reviewed compared to last year. He explained that rising occupancy gives them more power to push rates, balanced with merchandising needs. President and CEO Jackson Hsieh added that the focus is on upgrading specific underperforming spaces to drive rent growth. Regarding sales, Home Furnishings was the weakest category, while most others were slightly negative. Hsieh also confirmed The Oaks sale was at a 13% cap rate.

Ask Fintool Equity Research AI

Answer

Executive H. Boyle stated that the existing customer base remains strong, with consistent price sensitivity and performance. The guidance midpoint assumes consistent ECRI contribution from markets outside of Los Angeles. For the high end of the guidance range, Boyle specified that the embedded assumption is for an average move-in rent decline of about 3% for the year.

Ask Fintool Equity Research AI

Answer

Executive H. Boyle projected that move-in rents would likely hit a seasonal trough at year-end and would require a seasonal demand lift in the spring to improve meaningfully. CEO Joseph Russell explained that lower payroll costs are a direct result of operational efficiencies from their digital e-rental platform, now used by 75% of new tenants, which enables better labor optimization and creates new specialized career paths for employees.

Ask Fintool Equity Research AI

Answer

Chief Financial Officer Mark Langer explained their G&A reduction involved a three-pronged approach: managing headcount, conducting deep dives on third-party vendor costs, and streamlining processes with automation tools like AI and RPA, noting they will continue to seek further efficiencies. Chief Operating Officer Jeff Mooallem addressed the Sunrise Mall question, stating that given the large 78-acre site, they are exploring multiple use categories beyond just retail. He called the Macy's closure a significant step forward and hopes to announce more definitive plans during 2025.

Ask Fintool Equity Research AI

Answer

Chief Operating Officer Jeffrey Mooallem clarified that the lease termination was with a national tenant that had not yet commenced paying rent, minimizing any revenue drag and presenting an accretive re-tenanting opportunity. Chief Financial Officer Mark Langer explained the same-property NOI guidance range reflects potential tenant fallout risk (e.g., Big Lots) at the low end and better-than-expected rent collections and commencements at the high end. Regarding G&A, Langer advised not to expect further declines in 2025 after significant reductions over the past two years, citing inflationary pressures.

Ask Fintool Equity Research AI

Answer

Executive Patrick Waite affirmed the strong long-term demand for MH. Executive Paul Seavey specified that the slowdown in MH rent growth is a technical matter: a portion of leases are tied to CPI, and the CPI from 2024 (which dictates 2025 rent increases) was lower than the CPI from 2023 (which dictated 2024's higher increases).

Ask Fintool Equity Research AI

Answer

Patrick Waite, EVP and COO, explained the seasonal revenue decline was mainly driven by a reduction in transitional workers in Florida who were present after Hurricane Ian. Paul Seavey, EVP and CFO, added that while a majority of properties saw seasonal growth, the overall decline was driven by a minority of locations. On payroll, Patrick Waite confirmed savings were driven by the summer RV business through managing open positions and overtime, but hesitated to say if further significant efficiencies could be gained, though they will continue to seek improvements.

Ask Fintool Equity Research AI

Answer

Gary Shiffman, Executive, clarified that the savings are a starting point combining both OpEx and G&A, with a primary focus on the MH and RV segments. Fernando Castro-Caratini, Executive, added that the company is evaluating an additional $100 million to $200 million in potential near-term dispositions from non-income-producing land and non-core assets.

Ask Fintool Equity Research AI

Answer

CEO David Lukes noted that buyer interest has remained consistently high for the last nine months and has not notably changed with interest rates, as many buyers have been unlevered. CFO Conor Fennerty stated that the GAAP cap rate on Curbline acquisitions has been around 6.5%.

Ask Fintool Equity Research AI

Answer

CFO Conor Fennerty explained that the wide range is primarily due to the small denominator of the Curbline portfolio, where a small dollar variance can significantly move the percentage. He also noted his generally prudent forecasting approach and mentioned that while it is May, there is still much of the year left. He confirmed there have been no credit issues in either portfolio year-to-date.

Ask Fintool Equity Research AI