Viktor Fediv • Scotiabank

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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