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 .