Capital Allocation & Share Repurchase
Q: What are your capital allocation priorities and thoughts on share repurchases?
A: Our objective is to create value for shareholders, utilizing every tool for capital allocation. We believe the best use of our capital is in development and redevelopment programs. This quarter, we had the capacity to execute share repurchases at an implied cap rate of 7%, highlighting the disconnect between public and private market pricing. In the acquisition market, high-quality grocery-anchored centers trade at cap rates in the mid-5% range, making share repurchases an excellent use of capital.

Cap Rate Outlook
Q: Where are cap rates in the shopping center sector headed?
A: We do not believe cap rates are rising in the future. With potential decreases in financing costs, our product type offers sustainability and stability of cash flows, keeping cap rates sticky. With more capital entering the sector, cap rates could go down, not up.

Share Repurchase Authorization
Q: Is there $250 million left on the repurchase program?
A: No, our activity this quarter exhausted the previous authorization. We've refreshed the authorization for another $250 million over two years.

Occupancy Growth Potential
Q: How much more can you push occupancy for growth?
A: We have 220 basis points of commenced occupancy opportunity compared to our prior peak. This aligns with a $50 million SNO pipeline to be delivered starting Q4 this year and into 2025. We see no reason we can't replicate past occupancy gains over the near term.

Institutional Capital & Competition
Q: Are you seeing more institutional capital entering the space?
A: Yes, bidding pools are much deeper now, with 15 to 20 bids on assets compared to 2 to 5 before. Many bidders are institutional investors like pension funds and private equity. There's definitely increased institutional capital pursuing assets.

Tenant Credit & Watchlist
Q: How do you evaluate tenant credit pre-signing?
A: We have a very rigorous process and do not lease just for occupancy. Our watch list exposure is roughly 150 basis points of ABR. Recent industry bankruptcies had minimal impact on us, reflecting our thoughtful alignment with the right retailers.

Liquidity & Financing Plans
Q: Are you planning to term out the revolver draw?
A: We're comfortable with our liquidity, having recently recast our revolver to $1.5 billion capacity. With $300 million drawn due to investments and repurchases, we're monitoring capital markets and have a bias towards public unsecured financing.

Development Competition
Q: Will lower rates increase competition in development?
A: If capital becomes available, it may open opportunities for others, but relationships and expertise are crucial. We have the best relationships with key tenants, brokers, and landowners, and feel confident in securing opportunities regardless of capital markets.

CapEx and Tenant Improvements
Q: Are elevated CapEx and TI levels expected to continue?
A: We're prudently managing capital, with net effective rent as a percent of GAAP rent in the 80% to 85% range. Total comparable capital for the quarter is lower than our trailing twelve months. We don't see any shift in underlying fundamentals or trends.

Geographic Opportunities
Q: Are acquisition opportunities geographically diverse?
A: Yes, we're seeing opportunities coast to coast. Recent activity in the Northeast is due to timing, but we have opportunities across all regions, including the Southeast, West, and Central.