RPT Acquisition Synergies
Q: What's driving the upside in RPT integration synergies?
A: Management reports that the integration of RPT is ahead of expectations, leading to increased G&A synergies now estimated at $34 million to $35 million, up from the initial $30 million to $34 million guidance ". This improvement is driven by a faster-than-anticipated integration, allowing for cost savings in staffing, professional services, and subscriptions ". Additionally, early leasing success in the RPT portfolio is enhancing revenue growth ".

NOI Upside from RPT
Q: What is the upside potential in NOI from the RPT portfolio?
A: The company has exceeded its initial leasing velocity assumptions for the RPT portfolio ". They anticipated a 6- to 12-month ramp-up but have already leased up space quickly and at higher rents ". This acceleration suggests potential upside in NOI beyond initial expectations ".

Transaction Market and Cap Rates
Q: How do current cap rates affect acquisition strategy?
A: Management notes that cap rates for core grocery-anchored shopping centers are around 6%, which doesn't align with their cost of capital ". They remain disciplined in acquisitions, focusing on assets where they can add value and achieve attractive yields ". They expect more opportunities in the latter half of the year, potentially at higher cap rates ".

Small Shop Leasing Momentum
Q: What's driving small shop leasing momentum?
A: The company is implementing programs to activate small shop leasing, including national account management and relationships with franchisors ". They've seen increased leasing activity, partly due to new grocery anchors like Publix and Trader Joe's boosting demand in RPT centers ** " " **.

Same-Store NOI Guidance Increase
Q: What factors are influencing the same-store NOI guidance raise?
A: The guidance increase is due to earlier commencements of leases and lower-than-expected credit losses ** " " **. While some non-recurring items contributed $0.01 this quarter, they feel confident about reaching the upper end of the guidance range ** " " **.

Multifamily Development Plans
Q: Are there plans to start multifamily developments this year?
A: Given current cost of capital, the company is cautious about starting new developments ** " " **. They prefer contributing entitled land to joint ventures or using ground leases, minimizing capital outlay while retaining ownership ** " " **.

Pharmacy Space Outlook
Q: How is the company adapting to changes in the pharmacy sector?
A: Management acknowledges disruption in the pharmacy sector but sees opportunities in health and wellness trends ". They note that pharmacy spaces, often on valuable real estate, can be repurposed for uses like drive-throughs, potentially capturing higher rents ".

Expense Control Measures
Q: What drove lower landlord expenses this quarter?
A: The team achieved cost savings by scrutinizing expense line items and adjusting operating strategies ". This led to lower expenses and improved efficiency, contributing to better financial results ".

SNO Pipeline Expectations
Q: Do you expect the SNO pipeline to change by year-end?
A: The SNO pipeline may remain elevated due to ongoing lease-up activity ". While the pipeline compressed by 20 basis points this quarter, continued leasing and event-driven factors could keep it elevated ** " " **.

Disposition Plans and Cap Rates
Q: What are the plans for remaining dispositions this year?
A: The company doesn't have specific assets identified for sale but plans to continue portfolio pruning ". Future dispositions are expected to be at cap rates below the current range, improving portfolio quality ".

Transaction Market Outlook
Q: Has there been any change in the transaction market recently?
A: Management notes continued volatility and uncertainty in the market, impacting transaction activity ". They hope for more stability to facilitate increased transactions in the latter half of the year ".

New Market Opportunities
Q: Are you considering opportunities in new markets?
A: The company is open to acquiring in new markets where they have conviction and operational expertise ". They've recently expanded into markets like San Antonio and Nashville ".

Leasing Volume Trends
Q: What explains the lower leasing volume this quarter?
A: Despite high occupancy of 96.4%, leasing volume is consistent with prior years when considering deal timing ". There's strong interest in available spaces, including long-term vacancies ".

Structured Investment Pipeline
Q: What's the status of the structured investment pipeline?
A: There's high demand for their capital in structured investments ** " " " **. They're engaged in dynamic conversations and expect more activity as the year progresses ** " " **.

Complacency in Retail Market
Q: Could current retail market strength lead to complacency?
A: Management believes the strength is due to long-term supply-demand dynamics and the importance of omnichannel retail ". They see enduring demand for brick-and-mortar stores and don't view the current environment as complacency ".

Expense Rate Guidance
Q: What factors are affecting expense rate guidance for the rest of the year?
A: They anticipate some impact from prior bankruptcies like Bed Bath & Beyond in the second quarter ". However, early commencements and strong credit performance are contributing positively ".

Seller Financing Impact
Q: Did seller financing affect the cap rates on RPT dispositions?
A: Seller financing did not impact pricing or execution ". The structure allowed them to retain an attractive yield while achieving desired cap rates ".

Retail Redevelopment Plans
Q: Will you start new retail redevelopments given high yields?
A: They consider redevelopment opportunistically, activating projects when timing and market conditions are appropriate ". Currently, they see high returns in retail repositioning and focus capital there ".

Expense Seasonality
Q: Is lower expense performance partly seasonal?
A: There is some seasonal timing in expense recognition ". However, the overall reduction is due to proactive cost management ".

Leasing Programs and Tenant Mix
Q: Has there been a change in small shop tenant mix?
A: They continue to see growth in food and beverage, dollar stores, and personal care services ". Their programs are driving demand across various retail verticals ".