Viktor Fediv

Viktor Fediv inquired about SmartStop Self Storage REIT's baseline assumptions for move-in rates and average customer rent increases (ACRI) at the midpoint of their same-store revenue guidance, and the expected cadence of move-in rate growth throughout the year. He also asked for the actual achieved move-out rate for the entire portfolio in Q4.

Answer

David Corak, Senior Vice President of Corporate Finance and Strategy, provided a framework for 2026, noting that over half of their markets have seen positive year-to-date move-in rents, with Asheville skewing some numbers negatively. He anticipates a neutral inflection point by the end of the rental season for move-in rents. Occupancy is projected to be slightly positive relative to 2025, and ECRIs are expected to be at or better than 2025 levels, excluding California wildfire-impacted assets. Michael Schwartz, Founder, Chairman, and CEO, added that the portfolio's move-out rate in December was approximately $1.39 monthly, and for the entire fourth quarter, move-out rates were down about 5% year-over-year.

Viktor Fediv inquired about SmartStop Self Storage REIT's baseline assumptions for move-in rates and ECRIs at the midpoint of their same-store revenue guidance, and the expected cadence of move-in rate growth throughout the year. He also asked for the actual achieved move-out rate for the entire portfolio in Q4.

Answer

David Corak, Senior Vice President of Corporate Finance and Strategy, outlined a framework for 2026, expecting over half of markets to have positive year-over-year move-in rents by year-end, with occupancy slightly positive and ECRIs at or better than 2025 levels, excluding California wildfire impacts. Michael Schwartz, Founder, Chairman, and CEO, specified that the December move-out rate was about $1.39, and Q4 move-out rates were down approximately 5% year-over-year for the entire portfolio.

Viktor Fediv inquired about AH Realty Trust's long-term growth trajectory, specifically how the company plans to finance the projected $10 million in annualized commercial NOI additions from 2027, which implies approximately $150 million in acquisitions at a 6.5% cap rate, and the key assumptions regarding share price and debt cost for this growth to be achievable. He also asked about the anticipated retail to office NOI split five years from now and the scope of acquisition opportunities.

Answer

Shawn Tibbetts, Chairman, President, and CEO, emphasized maintaining appropriate leverage and a disciplined, consistent growth approach. He noted the need for shares to trade at the right level relative to NAV for equity financing. Matthew Barnes-Smith, CFO, concurred. Regarding the NOI split, Mr. Tibbetts stated a focus on areas where they add most value (retail and office), with a current emphasis on retail. Craig Ramiro, EVP of Asset Management, added that they seek acquisition opportunities with strong fundamentals in target markets, focusing on population and income growth, below-market rents, and value creation. Mr. Tibbetts further clarified that they target secondary markets with strong demographics to build a competitive moat.

Viktor Fediv further inquired about the breadth of the acquisition opportunity set, particularly for the planned $50 million in acquisitions this year, and the key metrics the company prioritizes.

Answer

Shawn Tibbetts, Chairman, President, and CEO, clarified that the company focuses on markets with strong fundamentals, including population growth, that meet their investment thresholds. He emphasized operating in secondary markets to build a competitive moat, rather than competing in Tier One cities.

Viktor Fediv of Scotiabank asked for details on the wide range for the reaffirmed full-year guidance and inquired about the potential downtime for the office floor recently vacated by WeWork.

Answer

CEO Shawn Tibbetts explained that the guidance range is appropriate due to potential upside from the Allied asset leasing up ahead of schedule, balanced against general market headwinds. CFO Matthew Barnes-Smith added that the timing of construction revenue recognition can cause fluctuations. Regarding the WeWork space, Tibbetts noted they are early in the marketing process for the 31,000 sq ft floor and are considering demising it, though a full-floor user is the preference.

Viktor Fediv from Scotiabank asked for details on the retail tenant watch list beyond those already mentioned and questioned potential risks in the Baltimore multifamily market, including impacts from Johns Hopkins financing and cannibalization from new assets.

Answer

CEO Shawn Tibbetts identified Joann's, Party City, and Conn's as the primary tenants of concern but noted that 85% of that space is already under lease or LOI with higher-quality tenants at a 25% rent premium. Regarding the Baltimore multifamily market, Tibbetts stated there has been no discernible impact from Johns Hopkins' situation. He views residents moving to the new Allied property as a positive sign of asset quality and reiterated a deliberate 18-24 month lease-up strategy to maintain market rents and avoid cannibalization, supported by increased traffic from T. Rowe Price's new headquarters.

Viktor Fediv inquired about the reasons for the occupancy decline at the Southgate Square property, the expected downtime for re-leasing the vacant spaces, and whether the company is actively marketing any retail properties for capital recycling.

Answer

CEO Shawn Tibbetts clarified that the Southgate Square occupancy drop was due to closures by Jo-Ann Fabrics and Conn's HomePlus. He reported positive progress, stating they are 'at lease' with a backfill tenant for the Jo-Ann space and in 'active negotiations' with a sporting goods retailer for the Conn's space. While a precise timeline is difficult, he noted that income from these tenants was largely removed from 2025 guidance, making any new leases accretive. On capital recycling, Tibbetts mentioned they have put the mixed-use asset 'Providence' on the market to test pricing but are not committed to a sale, continuing to evaluate the portfolio for strategic dispositions.

Viktor Fedun asked if the Q4 acquisitions, which aligned with a traditional grocery anchor mold, indicated better risk-adjusted returns in core grocery assets compared to the value-add lifestyle opportunities discussed earlier in 2025.

Answer

EVP and CIO Mark Horgan clarified that Brixmor's focus is on finding assets within their footprint that offer outsized return on invested capital (ROIC) opportunities, regardless of asset type. He cited examples like Britton Plaza (opportunistic redevelopment), a Houston Lifestyle Center, and Chino, emphasizing the goal is to apply the Brixmor platform to drive higher yields and long-term growth.

Viktor Fediv asked for details on the signed-not-occupied (SNO) pipeline's contribution to 2025 results and whether tenants are delaying their expected lease commencement dates.

Answer

COO Brian Finnegan stated that the company is not seeing tenants push out commencement dates. He noted that demand is strong, with 2025 getting full and discussions for 2026 already beginning. He emphasized that the $59 million SNO pipeline provides excellent visibility for future growth.

Viktor Fediv asked for details on the signed-but-not-commenced (SNO) pipeline's contribution to 2025 results and whether tenants are delaying their expected lease commencement dates.

Answer

President & COO Brian Finnegan stated that tenants are not pushing out commencement dates; rather, demand is strong, with 2025 leasing schedules becoming full and discussions for 2026 already underway. He noted the SNO pipeline remains robust at $59 million, even after commencing $18 million in the quarter, which provides strong visibility for future growth.

Viktor Fediv asked for details on the 11-asset distribution transaction with Regency's JV partner and what new options this opens for the company.

Answer

Nick Wibbenmeyer, West Region President and Chief Investment Officer, explained that the transaction with GRI, a long-term partner, was a 'mini DIK' allowing the JV partner to gain full control of six assets, while Regency now owns five assets at 100%. He emphasized the continued alignment of interests with the partner.

Viktor Fediv asked for color on the 11-asset distribution transaction with Regency Centers' JV partner and what options this transaction opens for the company.

Answer

Nick Wibbenmeyer, West Region President and Chief Investment Officer, explained that the transaction with their long-term partner, GRI, allowed for a 'mini DIK' where the partner took six assets and Regency Centers gained 100% ownership of five assets, aligning with their long-term strategy.

Viktor Fediv from Scotiabank inquired about the competitive dynamics of the Southern California portfolio acquisition and what gave Regency an edge in securing the deal.

Answer

West Region President and CIO Nick Wibbenmeyer revealed it was a truly off-market transaction. The seller, a family, specifically chose Regency due to the quality of its stock for the UPREIT transaction, its reputation as a best-in-class operator, and the potential for future development partnerships within the master-planned community. President & CEO Lisa Palmer emphasized the long-term relationship building by the entire team that made the deal possible.

Viktor Fediv, on for Greg McGinniss, asked about Regency's future plans for the Nashville market following the Brentwood acquisition and which other markets are current areas of interest for expansion.

Answer

Nicholas Wibbenmeyer, West Region President and CIO, clarified that acquisitions are not necessary to meet business objectives but are pursued opportunistically. While Nashville remains a focus in a very tight market, he emphasized that the company is actively seeking best-in-class retail opportunities in all of the high-quality markets where it currently operates across the country.

Asked about the company's future acquisition plans, particularly whether they intend to expand further in the Nashville/Tennessee market or what other markets are current areas of interest.

Answer

The company does not need to acquire assets to meet its business objectives but remains focused on growing in high-quality markets across the country. While Nashville is a target market, it is very competitive with few assets trading. They continue to look for opportunities in all the strong markets where they currently operate.

Viktor Fediv from Scotiabank, on behalf of Nick Yulico, asked about the cause of the quarter-over-quarter decline in 'other income' and requested an update on the company's $1 billion disposition target for the year.

Answer

CFO Matthew Diliberto stated that the full-year forecast for other income is unchanged and the quarterly dip was due to the timing of fee income. CIO Harrison Sitomer confirmed the disposition plan is actively being pursued, noting that while specific assets in the plan might shift, the team is working tirelessly to achieve its goal.

Viktor Fediv of Scotiabank asked about the 2026 and 2027 lease expirations, inquiring if the assets are comparable to the 2025 roll-overs and what the potential for rent spreads might be. He also asked to identify any specific tenant types showing higher interest in the current development pipeline.

Answer

CFO Scott Musil noted that the 2026 expiration profile is consistent with 2025 but has a higher proportion of leases in the strong markets of Dallas and Atlanta. EVP Peter Schultz stated that tenant demand remains broad-based, with notable activity from food and beverage, 3PLs, automotive, consumer products, and e-commerce, highlighting Amazon's activity in particular.

Viktor Fediv, on behalf of Nick Yulico at Scotiabank, inquired about the comparability of assets expiring in 2026-2027 to the 2025 pool and asked if any specific tenant types are showing heightened interest in current developments.

Answer

CFO Scott Musil stated that the 2026 expiration pool is consistent with 2025 but has a higher concentration in the strong markets of Dallas and Atlanta. EVP Peter Schultz described tenant interest as broad-based, with notable activity from food & beverage, 3PLs, automotive, and e-commerce, highlighting that Amazon is particularly active.

Viktor Fediv requested more clarity on the company's plans and expectations for managing SG&A expenses in 2025.

Answer

CFO Robert Crisci emphasized that driving operating leverage is a key focus. While there is some growth in administrative costs due to being a new public company, he stated that Lineage has made advance investments to support future scale. This positions the company to grow significantly without a proportional increase in administrative spending.

Viktor Fediv, on for Greg McGinniss, asked for details on occupancy declines at specific centers like Hilton Head and Rehoboth Beach, and inquired about the viability of redevelopment or greenfield development.

Answer

President and CEO Stephen Yalof explained that the occupancy dips were due to 'frictional vacancy' from strategically replacing less productive tenants, which involves temporary downtime. CFO and CIO Michael Bilerman added that due to high construction costs, acquiring existing assets at a discount to replacement cost is currently a more attractive use of capital than new development.