Vince Tibone • Green Street

Answer

CEO Greg Lehmkuhl and CFO Rob Crisci outlined a plan to convert 10 sites by year-end, followed by a dramatically accelerated rollout over the next 2-3 years to cover the majority of their conventional facilities. They confirmed that the primary technology investment has already been made and do not expect a 'CapEx bubble' associated with the implementation.

Ask Fintool Equity Research AI

Answer

CEO Stephen Yalof stated the outparcel business value is comparable to a top shopping center and offers high-teen to low-double-digit returns on capital that is only committed after leases are signed. EVP of Leasing Justin Stein named several brands in the pipeline, including Portillo's and Shake Shack. Regarding Forever 21, Yalof explained that they are strategically deciding whether to demise the large boxes to maximize rent and attract exciting new tenants, viewing the vacancies as a significant value-creation opportunity.

Ask Fintool Equity Research AI

Answer

President and CEO Stephen Yalof reported that April foot traffic has been 'extraordinarily positive' and strong. CFO and CIO Michael Bilerman explained that NOI is not highly sensitive to sales fluctuations because overage rent is only about 3% of total revenue, as Tanger prioritizes converting it to fixed rent. He noted that rising fixed rents from higher portfolio productivity are a much more significant driver of NOI.

Ask Fintool Equity Research AI

Answer

CFO & CIO Michael Bilerman stated that the 2-4% NOI guidance range incorporates a wide variety of operational assumptions, including leasing spreads and timing for the 20% of the portfolio rolling this year. Executive Leslie Swanson added that the company continues to find operational efficiencies to mitigate expense growth and is committed to maintaining this discipline.

Ask Fintool Equity Research AI

Answer

Chairman, CEO & President David Simon described the situation as complex, clarifying that Simon Property Group has no direct relationship with Copper Property Trust. He stressed that "purchase price matters" and that this specific transaction is not an indication of a reduced appetite for acquiring anchor boxes, urging against drawing a direct link between the two.

Ask Fintool Equity Research AI

Answer

Chairman, CEO & President David Simon clarified that the situation is complex, as Simon has a relationship with the operator (Catalyst) but not the property owner (Copper Property Trust). He stressed that "purchase price matters" and that the lack of a transaction should not be interpreted as a diminished appetite for acquiring anchor boxes at the right price.

Ask Fintool Equity Research AI

Answer

CEO David Simon reported that overall tenant sales were 'relatively flat' after adjusting for weather and the Easter calendar shift. He noted no unusual trends among top retailers. Regarding department stores, he stated the tariff impact is specific to their private label business and he does not anticipate any major changes in closures beyond what has already been announced by Macy's.

Ask Fintool Equity Research AI

Answer

Chairman and CEO David Simon estimated the pro-rata spend at $400 million to $500 million. He specified that the initial projects are all structured as 50-50 joint ventures and include a mix of residential, hotel, and office components at properties like Roosevelt Field, Brea, and The Domain.

Ask Fintool Equity Research AI

Answer

David Simon, Chairman, CEO, and President, estimated that about 30% of the current development investment will be delivered in 2025, which can be used to forecast income based on the 8% blended yield. He also confirmed that two major projects were added to the pipeline in the quarter: a residential project at Briarwood and a redevelopment at Tacoma.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Wilson Eglin stated the JV portfolios should be considered static for modeling purposes. He emphasized that reducing leverage to 5x net debt-to-EBITDA is the top priority over share repurchases, though buybacks could be part of the mix. An executive clarified the $2 million in guidance relates specifically to leasing opportunities at three development projects.

Ask Fintool Equity Research AI

Answer

Executive James Dudley provided a detailed breakdown of the competitive supply in the submarkets for its large vacancies in Indianapolis, Greenville, and Central Florida. Chairman and CEO T. Wilson Eglin outlined the capital allocation strategy, emphasizing a focus on build-to-suit opportunities on owned land and prioritizing leverage reduction to a target of 5x net debt to adjusted EBITDA to enhance valuation.

Ask Fintool Equity Research AI

Answer

President and CEO Marshall Loeb stated that the company has shied away from value-add or leasing-risk acquisitions recently, given the slower leasing environment for its own development pipeline. He suggested that to take on the leasing risk of an existing vacant building, the company would likely need a yield premium of 75-100 basis points over a stabilized asset, but emphasized they have not seriously pursued such deals lately, preferring to buy new, leased assets with below-market rents.

Ask Fintool Equity Research AI

Answer

Executive Brent Wood estimated that the FFO contribution from yet-to-be-signed development leases is in the '$0.05 to $0.06 range' for the full year. He emphasized that this income is heavily back-end weighted to the fourth quarter and that the figure is lower than in a typical year due to the company's more conservative development pace.

Ask Fintool Equity Research AI

Answer

Executive Brent Wood provided specific figures, stating that the 2025 guidance includes approximately $15.8 million in total NOI from the development pipeline. Of this amount, about 53% is from leases that are already signed, while the remaining 47% is from speculative leasing that is expected to occur, with this activity heavily weighted towards the third and fourth quarters of the year.

Ask Fintool Equity Research AI

Answer

CFO Tim Arndt explained the deceleration is primarily due to tougher comps in the back half of the year. Specifically, there will be more of an occupancy drag compared to 2024, and some unfavorable comps from strong one-time income items in 2024 that will not repeat. CEO Hamid Moghadam added that many second-half deals are already locked in, reducing variability.

Ask Fintool Equity Research AI

Answer

Hamid Moghadam, CEO, used the historical example of Brexit. He explained that the event forced companies to duplicate previously optimized cross-border supply chains for the UK and the continent separately. This duplication led to a net increase in inventory levels and, consequently, a greater need for warehouse space in both regions.

Ask Fintool Equity Research AI

Answer

Managing Director Christopher Caton noted international markets outperformed the U.S. in 2024, with Southern California rents down 25% while the rest of the U.S. was down only modestly. President Dan Letter stated that despite interest rate volatility, transaction volumes are returning to pre-COVID levels and the company targets a 125-150 basis point spread over market cap rates for new development yields. CEO Hamid Moghadam added that the market is adjusting to a 4-5% treasury environment, which is historically normal, and that development margins remain healthy.

Ask Fintool Equity Research AI

Answer

Chris Caton, Managing Director, reported Q3 U.S. net absorption of 40 million square feet against 63 million square feet of completions. The full-year forecast is for 160 million square feet of absorption and 300 million square feet of deliveries, resulting in a market vacancy of 6.8%. He highlighted that with deliveries falling and starts low, the under-construction pipeline is at its lowest level since 2017.

Ask Fintool Equity Research AI

Answer

Brad Miller, SVP of Portfolio Management, clarified that the 1.3% same-space renewal spread is the more appropriate apples-to-apples comparison, as it includes temporary tenants. President and CEO Jackson Hsieh added that a large anchor renewal also weighed on the overall renewal metric during the first quarter.

Ask Fintool Equity Research AI

Answer

CFO Daniel Swanstrom indicated the debt yields on givebacks are in the 'high single digits' and the other dispositions (outparcels, land) should achieve sub-8% cap rates. President and CEO Jackson Hsieh described Los Cerritos as a major opportunity, stating the current focus is on maximizing residential entitlements with the likely plan to sell the entitled land to a developer.

Ask Fintool Equity Research AI

Answer

CFO Daniel Swanstrom stated the debt yields on the assets identified for giveback are in the high single digits, and the $500 million of other dispositions (outparcels, land) are expected to transact at sub-8% cap rates. President and CEO Jackson Hsieh explained that for Los Cerritos, the current focus is on maximizing residential density entitlements with the likely strategy being to sell the entitled land rather than developing it on-balance-sheet.

Ask Fintool Equity Research AI

Answer

President of Americas Rob Chambers detailed that contract terms are typically 3-7 years for existing sites and 15-20 years for new builds, with pre-negotiated annual rate increases. He and CEO George Chappelle expressed confidence in defending pricing upon renewal, citing the value of their best-in-class service and broad value-add services as a competitive moat that justifies their pricing structure.

Ask Fintool Equity Research AI

Answer

CEO George Chappelle explained that the drop from 11 to 9 turns was primarily a structural result of the Agro acquisition, as that business has inherently slower-turning commodities. He clarified that the legacy Americold business is turning in line with historical activity. He and President of the Americas, Rob Chambers, noted that turns will increase from current suppressed levels as consumer demand returns and as new, high-churn partnership facilities (port and rail) come online.

Ask Fintool Equity Research AI

Answer

CFO Matts Pinard and an executive noted that some sellers have pulled portfolios from the market due to price volatility, but retrading is minimal. CEO William Crooker added that acquisition guidance is unchanged and back-end weighted. Pinard emphasized their strong capital position, citing a recent $550M debt issuance at 5.65%, significant retained cash flow, and accretive capital recycling, such as selling an asset at a 4.9% cap rate to fund acquisitions near a 7% cap rate.

Ask Fintool Equity Research AI

Answer

CEO William Crooker acknowledged a recent pause in the private market. Investment Officer Michael Chase elaborated, stating that a slower end to 2024 carried into January, but activity saw an uptick in February and is expected to accelerate through the rest of the year.

Ask Fintool Equity Research AI

Answer

CIO Jojo Yap confirmed the 6.4% cash yield was based on their net purchase price of $120 million, which is net of their JV profit, and that the market-clearing cap rate was estimated at 5.25% in Q1 2025. CEO Peter Baccile clarified that the new developments are not a strategic shift to light industrial but are designed to meet the deepest demand in those specific submarkets, a strategy they apply across all markets.

Ask Fintool Equity Research AI

Answer

Chief Investment Officer Jojo Yap clarified the 6.4% cash yield is net of the company's JV profit, comparing it to a market cap rate of around 5.25% in Q1. CEO Peter Baccile explained the new developments are not a strategic shift but are designed to meet specific submarket demand. He clarified the buildings are highly functional and divisible, not necessarily light industrial.

Ask Fintool Equity Research AI

Answer

Executive Vice President of Operations Christopher Schneider confirmed a previously discussed 700,000 square foot move-out in Central PA but no other large ones, expecting retention to be similar to 2024's 77%. Chief Financial Officer Scott Musil reported that 2024 bad debt was minimal at 10 basis points of revenue and the 2025 assumption remains conservative at $1 million. He also noted a key tenant on the watch list is current on rent and secured by a 12-month letter of credit.

Ask Fintool Equity Research AI

Answer

CEO Peter Baccile described the legislation as a long-term tailwind that will increase the value of existing assets. Chief Investment Officer Jojo Yap provided details, confirming that all of First Industrial's land is exempt from AB 98 as it was already in the entitlement process. He stated the law will constrain future development, which should increase the value of their existing sites and buildings and be positive for market fundamentals like rent growth.

Ask Fintool Equity Research AI