Acquisition Strategy and Market Expansion
Q: Are you seeing more acquisitions, and are you looking at new markets?
A: Yes, we've never been busier underwriting acquisitions, with a lot more products on the market due to sellers needing to transact amid higher debt costs. " We're also exploring new markets we hadn't considered before, such as Cleveland, focusing on acquiring the best one or two assets in those cities. " " Our strategy is to pursue great locations and larger assets where we can create value through leasing and merchandising. "

Leasing Dynamics at High Occupancy
Q: How are leasing discussions changing with over 96% occupancy?
A: It's a good time to be in this business. With occupancy over 96%, we often have multiple tenants interested in the same space. " We're achieving not only higher rents but also stronger control provisions in our leases, giving us more flexibility for redevelopment and other opportunities. " We expect occupancy to potentially reach 95% on an occupied basis. "

Expected Property Operating Income (POI) Growth Acceleration
Q: Is there a fundamental acceleration in POI growth expected for 2025?
A: Yes, we're projecting comparable POI growth of 3% to 4% for 2025, after accounting for a 40 basis point headwind from prior period rents. " This acceleration is largely driven by strong occupancy gains we've achieved and expect to continue into 2025. "

Development Opportunities and Strategy Shift
Q: With new development announcements, are you shifting focus back to development?
A: While it's not yet a full pivot, we're starting to make development projects work, especially where we already own the land, reducing costs by 15% to 23%. " Contractors are currently accepting lower profit margins, which helps project feasibility. " We have a couple more projects likely to commence later in the year, indicating a potential start to a new development cycle. "

Credit Quality and Tenant Exposure
Q: How confident are you in your tenants' credit positions amid retail bankruptcies?
A: We're confident in our portfolio's credit quality, with minimal exposure to troubled retailers. We have no Big Lots, only one Party City, and two Jo-Ann stores, which are leaving and reflected in our forecasts. " Given economic volatility, maintaining a 75 to 100 basis point credit reserve is prudent, but we have no specific concerns at this time. "

Guidance and Earnings Outlook
Q: Can you explain the factors behind a weaker first half and stronger second half in your guidance?
A: Our first-quarter FFO guidance of $1.67 to $1.70 is down due to seasonal factors like lower occupancy—common in Q1 due to tenant move-outs—and higher expenses such as snow removal. " We also issued shares at the end of the year, impacting FFO by a few cents. " We expect occupancy to ramp up in the second quarter, leading to steady improvement and peaking in the fourth quarter. "

Impact of Tariffs on Tenants and Development Costs
Q: How are tariffs affecting your tenants and development costs?
A: Our tenants are generally unfazed by tariff talks, having adapted by diversifying their supply sources since previous tariff implementations. " Retailers serving higher-end consumers can absorb costs more easily. " On development costs, we lock in construction costs as soon as projects are fully designed, and current projects have costs locked in, minimizing tariff impact. "

Capital Allocation Preferences
Q: Do you prefer acquiring large mixed-use assets or several smaller ones?
A: We focus on the best risk-adjusted returns rather than property size or type. " While we have strong experience with mixed-use projects, we won't pursue them unless the numbers work. " Our capital allocation strategy is about achieving the best IRR, whether through large assets like Assembly Row or multiple smaller assets. "

Joint Ventures and Funding Strategies
Q: Is now the right time to consider joint ventures for large acquisitions?
A: Yes, for sizable deals, joint ventures could make sense to maintain balance sheet flexibility. " There's capital available for partnerships, and we'll consider JVs if it aligns with our overall investment strategy and the numbers make sense for the property. "

Lease Terms and Tenant Sales Performance
Q: What initiatives are you implementing in lease terms to build your business?
A: With high occupancy, we're strategically focusing on merchandising and growing sales. " We're including provisions where tenants must meet certain sales thresholds to exercise lease options, ensuring strong performance. " This approach helps us fine-tune our shopping centers and drive rents. "

Santana West Contribution and Capitalized Interest
Q: Is the $0.12 to $0.14 contribution from Santana West net of capitalized interest burn-off?
A: Yes, we're taking the hit from shutting off capitalized interest in 2025 and will recognize the benefit of rent starts, resulting in a net contribution of $0.12 to $0.14 to earnings, primarily in 2026. "

Signed Not Occupied (SNO) Pipeline Impact
Q: Can you quantify the rental impact of your SNO pipeline?
A: Our comparable SNO pipeline represents over $25 million in rent. " Including non-comparable leases, the total rises to around $42 million, with 80% expected to commence in 2025 and the remainder in 2026. " The lease starts are weighted towards the second half of the year. "

Construction Cost Management
Q: How far in advance do you lock in construction costs amid tariff concerns?
A: We secure construction costs once a project is fully designed, moving towards a Guaranteed Maximum Price contract. " While we can't lock down costs before design completion, current projects like Hoboken have costs locked in, and we're not experiencing issues due to tariffs or material costs. "

Regional Opportunities and Asset Types
Q: Do you see better opportunities in certain regions or retail formats?
A: Not specifically. We like larger centers and evaluate opportunities on a case-by-case basis, focusing on where we can achieve good yields and add value. " The attractiveness of an asset depends more on its individual characteristics than its region or format. "

Guidance on Disposed Properties and Offsetting Acquisitions
Q: How should we interpret the $5 million POI reduction from disposed properties in guidance?
A: The $5 million represents POI from assets sold in 2024, like Santa Monica, that won't contribute in 2025. " Offsetting acquisition benefits are included but require detailed calculations we'll provide separately. "

Maintaining Quality in New Markets
Q: Are you rethinking property quality as you enter new markets?
A: No, we won't compromise on quality. Even in smaller markets, we target the best one or two centers with strong affluence and population density. " While it's harder to own multiple assets in these markets, we apply our expertise to run them effectively. "

Leasing Strategies with Retailers
Q: How are you adjusting leasing strategies with retailers amid high occupancy?
A: We're capitalizing on high occupancy by pushing rents and securing stronger lease terms. " We've become more successful in obtaining control provisions, enhancing our ability to redevelop and optimize our properties. "

Overall Tenant Sales and Performance
Q: How are tenants performing, and what's your approach to supporting them?
A: Tenants are performing well, and we're focusing on merchandising strategies that boost sales. " By aligning lease terms with sales performance, we ensure our centers remain vibrant and profitable. "