Q4 2025 Federal Realty Investment Trust Earnings Call

February 12, 2026

As the Federal Realty investment Trust fourth quarter 2025 earnings Conference call.

Operator: Good day, and welcome to the Federal Realty Investment Trust Q4 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Jill Sawyer, Senior Vice President, Investor Relations. Please go ahead.

It will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions.

I'll ask a question you May press Star then one on your telephone keypad withdraw. Your question. Please press Star then two please note. This event is being recorded.

I would now like to turn the conference over to Jill Sawyer Senior Vice President Investor Relations. Please go ahead.

Thank you Asher good evening, everyone. Thank you for joining us today for Federal Realty's fourth quarter 2025 earnings Conference call.

Jill Sawyer: Thank you, Ayesha. Good evening, everyone. Thank you for joining us today for Federal Realty's Q4 2025 Earnings Conference Call. Joining me on the call are Don Wood, Federal's Chief Executive Officer, Dan Guglielmone, Chief Financial Officer, Wendy Seher, Eastern Region President and Chief Operating Officer, and Jan Sweetnam, Chief Investment Officer, as well as other members of our executive team that are available to take your questions at the conclusion of our prepared remarks. A reminder that certain matters discussed on this call may be deemed to be forward-looking statements. Forward-looking statements include any annualized or projected information, as well as statements referring to expected or anticipated events or results, including guidance.

Joining me on the call are John <unk>, Chief Executive Officer.

Ganglia money Chief Financial Officer, when do you see your Eastern region, President and Chief operating officer, and beyond Sweetener, Chief investment officer as well as other members of our executive team are available to take your questions at the conclusion of our prepared remarks.

Under that certain matters discussed on this call may be deemed to be forward looking statements.

Forward looking statements include any annualized or projected information as well as statements, referring to expected or anticipated events or results and guidance.

Although federal Realty believes the expectations reflected in such forward looking statements are based on reasonable assumption.

Jill Sawyer: Although Federal Realty believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Federal Realty's future operations and its actual performance may differ materially from the information in our forward-looking statements. We can give no assurance that these expectations can be attained. The earnings release and supplemental reporting package that we issued tonight, our annual report filed on Form 10-K, and our other financial disclosure documents provide a more in-depth discussion of risk factors that may affect our financial position and operational results. Given the number of participants on the call, we kindly ask that you limit yourselves to one question during the Q&A portion. If you have additional questions, please queue. With that, I will turn the call over to Don Wood.

Federal Realty's future operations and its actual performance may differ materially from the information in our booth.

We can give no assurance that these expectations can be attained during.

The earnings release, and supplemental reporting package that we issued Tonight. Our annual report filed on Form 10-K, our other financial disclosure documents provide a more in depth discussion of risk factors that may affect our financial condition and operating results.

Given the number of participants on the call. We kindly ask you limit yourself to one question during the Q&A portion. If you have additional questions. Please re queue with that I will turn the call everyone.

Thank you Jill and good afternoon everybody.

Strong quarter strong year strong 2026 guidance.

Don Wood: Thank you, Jill, and good afternoon, everybody. Strong quarter, strong year, strong 2026 guidance. 6.4% bottom line FFO growth in the quarter, 4.3% for the year, and guidance close to 6% at the midpoint for 2026. All those numbers, of course, eliminate the impact of the one-time New Market Tax Credit last year, as reflected in our new Core FFO metric. More to come on that from Dan. Business is good, with strong demand for our assets in both our historical locations as well as the newer markets. We ended the year with the overall portfolio 96.1% leased, 94.1% occupied, about 50 basis points higher than that, excluding newly acquired centers. No surprise that leasing drives these and future results.

Six 4% bottom line <unk> growth in the quarter four three.

Four 3% for the year and guidance closed close to 6% at the midpoint for 2026.

Those numbers of course eliminate the impact of the onetime new market tax credit last year as reflected in our new core ethical metric more to come on that Dan.

Business is good with strong demand for our assets in both our historical locations as well as the newer markets. We ended the year with the overall portfolio of 96, 1% leased 94, 1% occupied about 50 basis points higher than that excluding newly acquired centers.

No surprise that leasing drives these and future results.

With 601000 feet of comparable deals done in the quarter at 12% rollover and $2 3 million feet of comparable deals done for the year at 15% rollover and.

Don Wood: With 601,000 feet of comparable deals done in the quarter at 12% rollover, and 2.3 million feet of comparable deals done for the year at 15% rollover, an incremental $11 million of new rent is under contract. Starting rent on the new 2025 leases was $37.98, compared with ending rent on those same spaces, after years of contractual bumps, by the way, of $33.12. We also did 20 non-comparable deals in 2025 at an average rate of $48.18, resulting in an incremental $6.3 million of new rent under contract, and the deal pipeline continues to look strong. Wendy will talk more about that in a little bit. Leases signed in Q4 included weighted average contractual rent bumps of 2.6%.

An incremental $11 million of new rent is under contract.

Starting rent on the new 2025 leases was $37.98.

Compared with ending rent on those same spaces after years of contractual bumps by the way.

Of $33 12.

We also did 29 comparable deals in 2025 at an average rate of $48 18.

Resulting in an incremental $6 3 million of new rent under contract and the deal pipeline continues to look strong Wendy will talk more about that.

Bill.

Leases signed in the fourth quarter included weighted average contractual rent bumps of two 6%.

Our strong as operations were transaction activity was equally robust in the fourth quarter and thus far into 2020.

Don Wood: As strong as operations were, transaction activity was equally robust in the fourth quarter and thus far into 2026. We closed Annapolis Town Center in Maryland and Village Pointe in Omaha, adding nearly 1 million sq ft to the portfolio for $340 million at an initial cash-on-cash yield in the low 7% range. Re-merchandising and rents commensurate with the strong sales at these locations are the focal points of these two A-quality assets over the next 5 years, with targeted unlevered IRRs approaching 9%. Both have started out as we've underwritten. Acquisitions completed early in the year—earlier in the year, including Del Monte Center and two Leawood, Kansas properties, are looking like excellent additions, particularly in Leawood, where tenant demand and expected rents are exceeding our underwriting.

We closed the Annapolis Towne Center in Maryland, and village point in Omaha, adding nearly 1 million square feet to the portfolio for $340 million at an initial cash on cash yield in the low 7% range.

Re merchandising and rents commensurate with the strong sales at these locations are the focal points to a quality assets over the next five years with targeted Unlevered IRR is approaching 9%.

Both have started out as we've underwritten.

Acquisitions completed early in the year earlier in the year, including del Monte Center and to Leawood, Kansas properties are looking like excellent additions, particularly in leawood, where tenant demand and expected rents are exceeding our underwriting.

On the disposition side, we closed on the sale of Bristol Plaza in Connecticut, and palace, the peripheral residential building at Pike <unk> rose in the quarter for a combined sales price of $169 million.

Don Wood: On the disposition side, we closed on the sale of Bristol Plaza in Connecticut and Pallas, the peripheral residential building in Pike & Rose in the quarter, for a combined sales price of $169 million. Just last week, we closed on Misora, the peripheral residential building at Santana Row, for proceeds of nearly $150 million, along with another small asset sale for $10 million. The overall combined cap rate of these dispositions was in the low fives. As we've talked about over the last several quarters, we're also finding opportunities to intensify our properties with development, usually residential products that is complementary to our shopping centers with little to no incremental land cost. The math works in the right locations.

Just last week, we closed on this shortly.

Residential building at Santana row for proceeds of nearly $150 million along with another small asset sale for 10.

The overall combined cap rate of these dispositions within the low Fox.

As we've talked about over the last several quarters. We're also finding opportunities to intensify our properties development, usually residential product that is complementary to our shopping centers with little to no incremental land cost the math works and the right locations.

If 2025 has taught us anything about value.

Set high quality apartments adjacent to great shopping environment strong suburban locations create a more desirable living environment.

Don Wood: If 2025 has taught us anything about value, it's that high-quality apartments adjacent to great shopping environments and strong suburban locations create a more desirable living environment. That translates into higher residential rents, stronger growth, and ultimately lower cap rates on sale. The 2025 and 2026 sales of Levare and Misora at Santana Row and Pallas at Pike & Rose unlocked an unmatched cost of capital for us to reinvest in material amounts at sub-5% overall. We've previously disclosed the allocation of a total of $280 million for new residential development of The Blair at Bala Cynwyd, which is nearly complete and ready for lease-up beginning this quarter, 301 Washington Street in Hoboken, and Lot Twelve at Santana Row, which together will add more than 500 units to the portfolio.

That translates into higher residential rents stronger growth and ultimately lower cap rates on sale.

$1 25 in 2026 sales of laboratory and Masora at Santana row, and palace at Pike <unk> Rose.

Unlocked, an unmatched cost of capital for us to reinvest in material amounts at.

<unk>, 5% overall.

We've previously disclosed the allocation of a total of 280 billion.

For new residential development of the player at Bell at Kingwood, which is nearly complete and ready for lease up beginning this quarter three.

301, Washington Street in Hoboken.

12 at Santana row, which together will add more than 500 units to the portfolio.

And just this quarter we've added another residential project to our development schedule that you can see in the 8-K.

Don Wood: In just this quarter, we've added another residential project to our development schedule that you can see in the 8-K. Willow Grove Shopping Center in suburban Philadelphia will be completely redeveloped and include an additional 261 apartments to complement a modernized and re-merchandised shopping center. Our experience with residential development at our retail-centric properties is a skill set developed over 25 years and is certainly a unique differentiator of our business plan. After enjoying the 6.5% to 7% or higher income contribution from each of these residential additions for a period of time, we have the optionality to take advantage of cap rates well inside those yields and reinvest them tax efficiently. Just as we've done so effectively last year and this. 2025 is a very special year for the trust, and 2026 and 2027 look to capitalize on that.

Willow Grove shopping center in suburban Philadelphia will be completely Redeveloped and include an additional 261 apartments to complement a modernized and Remerchandised shopping center.

Our experience with residential development at our retail centric properties is a skill set developed over 25 years and is certainly a unique differentiator of our business plan.

After enjoying the six 5% to 7% or higher income contribution from each of these residential additions for a period of time, we have the optionality to take advantage of cap rates womens side, those yields and reinvestment acts efficiently.

Just as we've done through effectively last year and this.

425 is a very special year for the trust in 2026, and 2027 look to capitalize on that.

First of all core leasing was exceptionally strong and looks to remain that way in 2026, our expanded geographical reach is proving particularly fruitful with strong retailer demand anxious to be part of our property improvement effort.

Don Wood: First of all, core leasing was exceptionally strong and looks to remain that way in 2026. Our expanded geographical reach is proving particularly fruitful, with strong retailer demand, anxious to be part of our property improvement effort. The last of the COVID-era office leasing effort has been largely completed, with meaningful rents starting in 2026 and 2027. In fact, at the mixed-use properties, we should have zero office product available for lease, and that means 100% leased within the next 30 to 45 days. Our asset recycling effort is validating the long-term value creation that our business plan has created. And all of this is wrapped in a relatively stable interest rate environment that could result in lower rates as the year progresses. We'll see.

Lastly, the kovar their office leasing effort has been largely completed with meaningful rent starting in 'twenty six 'twenty seven in fact at the mixed use properties.

Should have zero.

Office product available for lease and that means 100% leased within the next 30 to 45 days.

Our asset recycling effort is validating the long term value creation that our business plan has created and all of this is wrapped in a relatively stable interest rate environment that could result in lower rates as the year progresses, we'll see.

The refinancing of our one quarter percent bonds.

1.25%. This month represent the last major component of our debt portfolio with such a large market rate adjustments.

Don Wood: The refinancing of our 1.25% bonds, yep, 1.25%, this month represents the last major component of our debt portfolio with such a large market rate adjustment less likely. Even through that, we're guiding to near 6% growth. Later this spring, we'll showcase our plan through an Investor Day at Santana Row. Jill has the details, and I think the save the dates have been sent out. Really looking forward to seeing most of you there. Enhanced internal and external growth, using all the tools at our disposal, is the name of the game. Quarters like this Q4, and in fact, all of 2025, increase my confidence of our ability to do so. Let me now turn it over to Wendy and then to Dan to provide additional color. Wendy?

And even through that we're guiding to near 6% growth.

Later this spring we will showcase our plan through an investor day of Santana row. Jill has the details I think the save the dates have been sent out really looking forward to seeing most of you there.

Enhanced internal and external growth using all the tools in our disposal name of the game.

Quarters like this for us and in fact, all of 2025 increased my confidence of our ability to do so.

Let me now turn it over to Wendy and then to Dan to provide additional color.

Thank you John and.

In 2025, our leasing platform achieved record breaking volumes delivering the highest annual square footage leased in company history.

Wendy Seher: Thank you, Don. In 2025, our leasing platform achieved record-breaking volumes, delivering the highest annual square footage leased in company history, alongside the strongest comparable rent spreads achieved in over a decade. As we head into 2026, with an overall lease rate of 96.1%, our strategic focus will continue to be all about driving rent growth, disciplined expense management, and capitalizing on our quality real estate to provide continuous opportunities for multiple year growth. For the quarter, we signed 105 comparable deals, achieving 12% rollover. Fifteen anchor leases and 90 small shop deals drove a 90 basis point increase in our total comparable lease rate sequentially. Looking ahead, the breadth and durability of demand across all categories remains strong, reinforcing my confidence in our outlook for the year ahead.

Alongside the strongest comparable rent spreads achieved in over a decade.

As we head into 2020 with over.

With an overall leased rate of 96, 1% our strategic focus will continue to be all about driving rent growth disciplined expense management and capitalizing on our quality realized Inc.

Continuous opportunities for multiple years.

For the quarter, we signed 105 comparable deals achieving 12% rollover.

15 anchor leases and 90 small shop deals drove a 90 basis point increase.

Total comparable lease rates sequentially.

Looking ahead, the breadth and durability of demand across all categories remained strong reinforcing my confidence in our outlook for the year.

Go ahead.

Increased leased and occupied rates in Q4, I trial bar signed not occupied spread to 200 basis points.

Wendy Seher: Increased leased and occupied rates in Q4 drove our signed, not occupied spread to 200 basis points, representing a contribution of an additional $27 million to our in-place portfolio. Robust anchor demand, particularly in California, is fueling momentum. While we anticipate seasonal occupancy shifts in the first half of 2026 while anchors transition, most of these deals are already executed at higher rents, positioning us for improved occupancy levels by the end of the year. Small shops remain a highlight at 93.8% leased, up 50 basis points, providing mark-to-market opportunities to drive rent growth while continuing to prune and tweak a premium merchandising mix. Leasing production from our expanded acquisition initiatives over the last few years continues to exceed expectations. In 2025, we executed 49 deals, nearly 200,000 sq ft at 34% increase from prior rents.

Representing a contribution of an additional $27 million to our in place portfolio.

Well, thus ankur demand, particularly in California.

Fueling momentum while.

While we anticipate seasonal occupancy shifts in the first half of 2026, well anchored transition most of these deals are already executing on.

Higher rents.

<unk> improved occupancy levels by the end of the year.

Small shops remain a highlight at 93, 8% leased up 50 basis points, providing mark to market opportunities to drive rent growth, while continuing to prune and tweak our premium merchandising mix.

Leasing production from our expanded acquisition initiatives over the last few years continues to exceed expectation.

In 2025, we executed 49 deal nearly 200000 square feet.

At 34% increase from prior rents.

Over the next 24 months, we are targeting accretive capital allocations to better align these centers with our core operating standards and the high income profile.

Wendy Seher: Over the next 24 months, we are targeting accretive capital allocations to better align these centers with our core operating standards and the high-income profile of the respective submarkets. Top-tier additions to these centers since acquisitions includes names such as Solidcore, Alo, Design Within Reach, Lovesac, Free People Movement, and State & Liberty. More to come in 2026. Turning to our suburban portfolio in the greater Washington, DC area, we are continued to be encouraged by the resilience across our Maryland and Virginia assets. Foot traffic momentum remains strong, with quarterly traffic increasing 3% and up overall for the year. Annual sales moved higher year-over-year, while the Q4 sales remained stable from a strong prior quarter comp. What is especially encouraging to me is the outperformance of the hard goods category.

At the sub market.

Top Tier addition to these centers since acquisition includes names such as solid core allo design within reach low Sac free people movement in state and Liberty more to come in 2026.

Turning to our suburban portfolio in the greater Washington D. C area. We continue to see we are continued to be encouraged by the resilience across our Maryland, and Virginia assets.

Foot traffic momentum remains strong with quarterly traffic, increasing 3% and up overall for the year.

Annual sales moved higher year over year, while the fourth quarter sales remained stable from a strong prior Twitter com.

What is especially encouraging to me is the outperformance of the hard goods category. Please.

We saw robust demand in furniture and home furnishing.

Premium brands, such as Serena <unk>, Lily and West Elm in Charlotte.

Wendy Seher: We saw robust demand in furniture and home furnishings from premium brands such as Serena & Lily, West Elm, and Sur La Table. We view this as a strong indicator of the underlying health of our consumer base. Given that home furnishings are highly discretionary, our core customer in this region continues to invest in their home, signaling confidence in their personal financial position. Now, let me turn it over to Dan to dive into the numbers.

We view this as a strong indicator of the underlying health of our consumer base.

Given that home furnishings are highly discretionary our core customer in these regions. In this region continues to invest in their homes signaling confidence in their personal financial position.

Now, let me turn it over to Jan to dive into the numbers.

Thank you Wendy and Hello, everyone.

Our <unk> per share of $1 84 for the fourth quarter reflects six 4% growth versus last year and highlights a really strong underlying quarter operationally.

Don Wood: Thank you, Wendy, and hello, everyone. Our FFO per share of $1.84 for Q4 reflects 6.4% growth versus last year, and highlights a really strong underlying quarter operationally. This result came in slightly below the midpoint of our guidance range, solely due to a non-cash charge related to Saks filing for bankruptcy post-year-end. Comparable POI growth, excluding prior period rent and term fees, averaged 3.8% for the year and 3.1% for Q4. On a cash basis, this metric was 3.6% and 4.3% for the full year and Q4, respectively. Now let me move quickly to the balance sheet. Liquidity at year-end stood at $1.3 billion under our available bank facilities and cash on hand.

These results came in slightly below the midpoint of our guidance range solely due to a noncash charge related to tax filing for bankruptcy post year end.

Comparable POI growth, excluding prior period rent term fees averaged three 8% for the year and three 1% for the fourth quarter on a cash basis. This metric was three 6% and four 3% for the full year and fourth quarter respectively.

Now, let me move quickly to the balance sheet.

Liquidity at year end stood at one 3 billion.

There are available bank facilities and cash on hand during the fourth quarter, we closed on the.

An additional $250 million.

Don Wood: During the fourth quarter, we closed on an additional $250 million delayed draw term loan, providing us with enhanced financial flexibility. The facility has a five-year maturity into 2031, and an interest rate of SOFR plus 85 basis points. With respect to our $400 million bond maturity next week, we will utilize this term loan and available capacity on our revolving credit facility to refinance it on a near-term basis. A possible unsecured note or convertible bond offering remained under consideration for later in 2026.

Elaine draw term loan, providing us with enhanced financial flexibility.

The facility has a five year maturity into 2031, and an interest rate of sofa, plus 85 basis.

With respect to our $400 million bond maturity next week, we will utilize this term loan and available capacity on our revolving credit facility to refinance it on a near term basis.

Possible unsecured note or convertible bond offering remained under consideration for later in 2026.

As lease up of the larger commercial components of our redevelopment pipeline nears completion with Huntington shopping center fully stabilized 915 meeting Street, a 100% leased and one Santana are 100% committed our free cash flow after dividends and maintenance capital is expected to exceed one.

Don Wood: As lease-up of the larger commercial components of our redevelopment pipeline nears completion, with Huntington Shopping Center fully stabilized, 915 Meeting Street 100% leased, and One Santana 100% committed, our free cash flow after dividends and maintenance capital is expected to exceed $100 million in 2026, and add higher in 2027 as we convert straight-line rent to cash paying rent. With these $600 million of projects behind us and essentially complete, our ongoing redevelopment pipeline moving forward stands at about $500 million. This pipeline includes 780 residential units, all at existing retail properties. During Q4, we closed on asset sales of $169 million, and added another $159 million subsequent to year-end at a combined blended low 5% cap rate.

<unk> hundred million dollars in 2026 and had higher in 2007, as we convert straight line rent to cash paying rent.

With these $600 million of projects behind us and essentially complete.

Our ongoing.

Redevelopment pipeline moving forward stands at about 500.

This pipeline includes 780 residential units all that existing retail properties.

During the fourth quarter, we closed on asset sales of $169 million and added another $159 million subsequent to year end at a combined blended low 5% cap rate.

We also have an additional $170 million of sales in process with expected closings in the first half of 2026 with cap rates targeted in the low 5% range.

Don Wood: We also have an additional $170 million of sales in process, with expected closings in the first half of 2026, with cap rates targeted in the low 5% range. While we have been active over 2025 deploying capital externally through our disciplined asset recycling program, we continue to maintain strong leverage metrics. Fourth quarter annualized adjusted net debt to EBITDA stood at 5.7 times at year-end, but is now inside 5.6 pro forma for the most recent asset sales, and should trend further to the low to mid 5 times range over the course of the year. Fixed charge coverage now stands at 3.9 times and should eclipse our target metric of 4 times over the course of the year. Now, on to a discussion of our new core FFO metric and guidance.

While we have been active over 2025 deploying capital externally for our disciplined asset recycling program.

We continue to maintain strong leverage metrics.

Fourth quarter annualized adjusted net debt to EBITDA stood at five seven times at year end, but is now entitled inside five six pro forma although most recent asset sales and should trend further to the low to mid five times range over the course of the year fixed charge coverage now stands at three nine times in <unk>.

Eclipse, our target metric of four times over the course of the year.

Now onto a discussion of our new core <unk> metrics and guidance.

After much discussion with the analysts and Investor community over the course of 2025 regarding recurring <unk> and significant one timers.

Don Wood: After much discussion with the analyst and investor community over the course of 2025 regarding recurring FFO and significant one-timers, on a go-forward basis, we will be reporting both NAREIT FFO and Core FFO. Core FFO is defined in our 8-K financial supplement on page 10. It is also outlined in a table on the fourth page of the press release. It will be GAAP-based and simply adjust our NAREIT FFO for non-recurring one-time items in order to provide an enhanced comparability across periods for Federal's underlying operating results. Such one-time items include New Market Tax Credit, transaction income, executive transition costs, collection of COVID-era prior period deferred rent, and other items such as gain or loss on early extinguishment of debt.

On a go forward basis, we will be reporting both NAREIT <unk> and core <unk>.

Or <unk> as defined in our 8-K financial supplement on page 10, and as also outlined in a table in the fourth page of the press release.

It will be GAAP based and simply adjust our NAREIT <unk> for nonrecurring one time items in order to provide an enhanced comparability across periods for federal's underlying operating results.

So it's one time items include new market tax credit transaction income executive.

Transition costs.

Collection of code Europe prior period deferred rent and other items, such as gain or loss on early extinguishment of debt.

As we look forward.

For 2026, our guidance from both NAREIT and core <unk> is $7 42 to $7 52 per share with no one time adjustments in the forecast.

Don Wood: As we look forward to 2026, our guidance for both NAREIT and Core FFO is $7.42 to $7.52 per share, with no one-time adjustments in the forecast. At the midpoint of $7.47 per share, this represents about 5.8% growth for core when compared to 2025, and 3.5% for NAREIT-defined. 2025 Core FFO is $7.06 per share, and NAREIT FFO is $7.22 per share, with the material difference being the $0.15 of New Market Tax Credit income. Guidance drivers through 2026 include comparable POI growth forecasted at 3% to 3.5%.

At the mid point of $7 47 per share. This represents about five 8% growth for core when compared to 225 and three 5% for NAREIT defined.

2025, <unk> to $7 <unk> per share and NAREIT <unk> to $7 22 per share with the material difference being the 15th of new market tax credits.

Guidance drivers through 2026 include.

Comparable POI growth forecasted at 3% to three 5%.

This assumes the trajectory of occupancy in the first half of 2026 moves into the mid 93% range before returning above the current 94% level and up into the mid and upper 94% range by year end 2020.

Don Wood: This assumes the trajectory of occupancy in the first half of 2026 moves into the mid-93% range before returning above the current 94% level and up into the mid- and upper-94% range by year-end 2026. As a result, we are set up well for a strong 2027 on a comparable basis. Comparable lease rollovers are forecast in the low to mid-teens. Incremental POI contributions from our development and expansion pipeline is forecast in the $13 to 15 million range. Please see some additional disclosure that we've added in our 8-K at the bottom of page 29 with respect to the quarterly cadence of POI for 2026 from the development pipeline.

As a result, we are set up well for a strong 2027 on a comparable basis.

Comparable lease rollovers are forecast in the low to mid teens.

Incremental contributions from our development and expansion pipeline is forecast in the $13 million to $15 million range. Please.

Please see some additional disclosure that we've added.

In our 8-K.

At the bottom of page 29.

With respect to the quarterly cadence.

For 2026 from the development pipeline.

And guidance reflects a full year's contribution from $750 million of dominant high quality assets acquired in 2025, roughly a 7% blended cash cap rate and a seven 5% GAAP cap rate.

Don Wood: Guidance reflects a full year's contribution from the $750 million of dominant high-quality assets acquired in 2025, at roughly a 7% blended cash cap rate and a 7.5% GAAP cap rate. We are assuming our 1.25% unsecured notes are refinanced at a 4.25% to 4.5% interest rate under our available bank facilities. Please note that this represents a 170 to 180 basis point financing headwind, without which our midpoint core FFO for 2026 would be growing at roughly 7.5%. We've assumed a total credit reserve of roughly 60 to 85 basis points of rental income in 2026, given our limited exposure to credit issues.

We are assuming our one on a quarter percent unsecured notes are refinanced at a four and a quarter to four 5% interest rate.

Under our available bank facilities.

Please note that this represents a 170 to 180 basis point financing headwinds.

Without which our midpoint core <unk> for 2026 would be growing at roughly seven 5%.

We've assumed a total credit reserves of roughly 60 to 85 basis points of rental income in 2026, given our limited exposure to credit issues.

And additional guidance assumptions that we usually talk about here are outlines for capitalized interest redevelopment spend G&A in term fees on page 29 of our 8-K supplement.

Don Wood: Additional guidance assumptions that we usually talk about here are outlined for capitalized interest, redevelopment spend, G&A, and term fees on page 29 of our 8-K supplement. This guidance does not include any acquisitions in 2026. None are probable enough at the moment. With respect to asset sales, it assumes only the dispositions announced last week in Santana Row and Courthouse Center. For all other acquisitions and dispositions, we will adjust our guidance, likely upwards, as we go. With respect to quarterly cadence of FFO in 2026, the first quarter will start with a range of $1.80 to $1.83, with the normal Q1 seasonality and at-site recycling activity impacting sequential cadence from Q4. The second and third quarter will be in the mid-$1.80s, and the fourth quarter in the mid-$1.90s per share.

This guidance does not include any acquisitions in 2026.

None are probable enough at the moment with respect to asset sales and assumes only the discipline dispositions announced last week and saw it in courthouse them.

We're all other acquisitions and dispositions, we will adjust our guidance likely upwards as we go.

With respect to quarterly cadence.

<unk> in 2026.

The first quarter will start with a range of $1 82.

183, with a normal <unk> seasonality and asset recycling activity impacting sequential cadence from <unk>.

The second and third quarter will be in the mid <unk> when the <unk> and.

In the fourth quarter in the mid 190 <unk>.

Sure.

And with that operator.

Please open the line for questions.

Don Wood: With that, operator, please open the line for questions.

Thank you.

Ask a question you May press Star then one on your telephone keypad.

Operator: Thank you. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. At any time your question has been addressed and you would like to withdraw your question, please press star then two. We ask that you please limit yourself to one question and rejoin the queue if you have any further questions. The first question comes from Michael Griffin with Evercore ISI. Please go ahead.

Using a speakerphone please pick up your handset before pressing the keys, but anytime Youre question has been addressed and you would like to withdraw your question. Please press Star then two.

We ask that you please limit yourself to one question and rejoin the queue. If you have any color at that question.

The first question comes from Michael Griffin with Evercore ISI. Please go ahead.

Great. Thanks, maybe just turning to the investment pipeline, Don or maybe Jan can you give us a sense of what deals in the hopper are looking like today, you know I realize youre not guiding to anything this year, but is this more of what we've seen at town center in Kansas City or at the village point in Omaha.

Michael Griffin: Great, thanks. Maybe just turning to the investment pipeline. Don, or maybe Jan, can you give us a sense of, you know, what deals in the hopper are looking like today? You know, I realize you're not guiding to anything this year, but is this more of what we've seen at Town Center in Kansas City or at the Village Pointe in Omaha? You know, is it stuff in kind of your core coastal markets? You know, what are you really targeting, I guess? And, you know, do you have a feeling that we could see some deals close, you know, at some point this year?

Uh huh.

Is it stuff and kind of your core coastal markets. What are you really targeting I guess.

Do you have a feeling that we could see some deals close at some point this year.

Hi, Michael Yon.

Well thanks for the question.

Don Wood: Hi, Michael, Jan. Hope you're well. Thanks for the question. Look, we're still targeting large, dominant shopping centers. We're focused on new markets in the middle of the country. We're still also trying to acquire, you know, in the coasts, in our existing markets. So, you know, right now there's a couple of acquisitions that we're working on. We expect to see a lot more opportunities coming in the next several months, larger transactions. So, you know, some real reason to be to be optimistic. It's a little too early to kind of forecast what you know, how much we'll be able to buy this year. But based on where we are today and, you know, similar to last year, I would expect that the bulk of our activity will occur in the second half of this year.

But we're still targeting large dominant shopping centers were focused on new markets in the middle of the country still also trying to acquire.

Most.

In our existing markets. So right now Theres a couple of acquisitions that we're working on we expect to see a lot more opportunities coming in the next several months larger transactions.

So some real reason to be.

It's a little too early to kind of forecast.

How much will be able to buy this year.

Based on where we are today and similar to last year I would expect that the bulk of our activity will occur in the second half.

From my perspective reasons to be optimal.

Don Wood: So from my perspective, reasons to be optimistic.

The next question comes from Cosmos <unk> with Wells Fargo. Please go ahead.

Operator: The next question comes from Cooper Clark with Wells Fargo. Please go ahead.

Great. Thanks for taking the question I wanted to talk about the multifamily development and is also ongoing recycling plan curious how much more peripheral multifamily you could potentially market for sale. This year, if youre able to source attractive opportunities on the acquisition side and also where yield stand today on the entitled multifamily development pipeline.

Cooper Clark: Great. Thanks for taking the question. I wanted to talk about the multifamily development and also ongoing recycling plan. Curious how much more peripheral multifamily you could potentially market for sale this year if you're able to source attractive opportunities on the acquisition side, and also where yields stand today on the entitled multifamily development pipeline?

Sure Michael Let me, let me start with you on that I'm sorry.

Let me start on that.

Don Wood: Sure, Michael, let me start with you on that, or Cooper rather, sorry. Let me start on that. You know, it's such a kind of unique thing that we have here by having that value in there. There are still opportunities for us to monetize some residential product. And I'm not gonna go into the specific ones right now, but you could probably guess. Again, they're peripheral to our primary mixed-use assets and our shopping center assets. But you know, that stuff is at 5% or lower in terms of those cap rates, and that's just, you know, it's just a real advantage.

As such a kind of unique.

Thing that we have here by by having that value in there. There is there are still opportunities for us to monetize.

Residential product and.

I'm not going to go into the specific ones.

Right now, but but.

You could probably guess.

Again their peripheral to our primary mixed use.

Assets and.

R R.

Our shopping center assets, but you know that stuff is is at 5% or lower.

In terms of those cap rates and that's just.

It's.

It's just a real advantage now in total there is probably another $4 million to $500 million to be able to do.

Don Wood: Now, in total, there's probably another $400 or 500 million to be able to do of that of that ilk. Not sure that we will do that. We don't have them in the marketplace yet. But I'm pushing hard, frankly, to start doing that come the Q2, Q3, and Q4 of this year, to the extent we find the assets that Jan was just talking about a minute ago. You have one other-- you had a follow-- you had a backup question, I don't remember what it was. Anybody?

Of that.

Of that ilk.

Im not sure that.

That we will do that we don't have them in the marketplace yet but.

Im pushing hard frankly to start doing that.

The second quarter third quarter and fourth quarter of this year to the extent, we find the assets that <unk>.

I was just talking about a minute ago.

You have one other you had a follow up you had a backup questions that I don't remember what it was anyway.

Yields on development pipeline was at Neocon residential development.

And then on the reserve.

Greg McGinniss: Yields on development pipelines.

Basically.

Don Wood: What's that?

Greg McGinniss: Yields on residential development pipelines.

We're able to underwrite the new development pipeline of somewhere between six five and 7%.

Don Wood: And on the, basically, we're able to underwrite the new development pipeline somewhere between 6.5 and 7%, on most of them. The reality is those are low fives cap rate assets today. If what happens, as what I think will happen, is while we enter into it 6.5 and 7%, you'll see strong growth in those assets. Because the one thing that is crystal clear is, at fully amenitized shopping centers, those rents are higher, they tend to have more retention, and they tend to grow faster. So I'm just real encouraged about this program, which I don't think anybody's got the expertise that we do, on the shopping center side to be able to do this kind of stuff. We've been doing it for a long time.

Most of them.

The reality is as those are low fives.

Cap rate assets today, if what happens as.

What I think will happen is while we enter into at six five and 7% you'll see strong growth in that was that the one thing that is crystal clear is at fully amendatory shopping centers. Those rents are higher they tend to have more retention and they tend to grow faster. So I'm just really encouraged about this program.

Which I don't think anybody has got the expertise that we do on the shopping center side to be able to do this kind of stuff we've been doing it for a long time I think you should just look hard.

At that portfolio, and we will be talking to you more about that in the quarters to come.

Don Wood: I think you should look hard at that portfolio, and we'll be talking to you more about that as the quarters come.

The next question comes from Andrew <unk> with Bank of America.

Operator: The next question comes from Andrew Reilly with Bank of America. So please go ahead.

Please go ahead.

Hi, good afternoon, Thanks for taking my question.

Wendy highlighted that 2025 delivered the strongest rent spreads and I believe over a decade.

Andrew Reale: Hi, good afternoon. Thanks for taking my question. Wendy highlighted that 2025 delivered the strongest rent spreads, and I believe over a decade. I, I'm just wondering, is that pricing power being driven by any specific property types or regions, or, or is that really truly broad-based? And do you view these levels of, of pricing power across the portfolio as sustainable throughout 2026?

Just wondering is that pricing power being driven by any specific property types or regions or is that really truly broad based.

And do you view these levels of pricing power across the portfolio as sustainable throughout 2026.

Thank you for the question, Andrew I do consider than broad based.

Wendy Seher: Thank you for the question, Andrew. I do consider them broad-based. You know, it's a good time to be in a COO position with this high demand that we're having across the board, and limited supply, and the kind of premier properties that we own. So, you know, it doesn't get any better than right now. I will say that what you're seeing on being able to drive rents, if you look at our last three years, we are consistently overall driving rents higher and higher percentage-wise every year for the last three years. So I'm really thrilled with that. And then, when you look at, you know, the demand on the anchor side, you're gonna see that our occupancy is going to be kind of driving up as we head into the latter part of the year.

It's a good time to be.

And our CLO position with this high demand that we're having a pasta board in limited supply and that kind of premier properties that we own so.

It doesn't get any better than right now.

I will say that that's what you're seeing on being able to drive rents. If you look at our last three years, we have consistently overall driving rents higher and higher.

Percentage wise every year for the last three years, so I'm really thrilled with that.

And then when you look at you know the.

The demand on the anchor side youre going to see that.

Our occupancy is going to be kind of driving up as we head into the latter part of the year. So yes. All metrics are good right now and I do think about Dan's kind of look at me I do think given what I know today and we look at our rollover for next year.

Wendy Seher: So yes, all metrics are good right now. And I do think, although Dan's gonna look at me, I do think given what I know of today, and we look at our rollover for next year, we should be able to be equal to where we are today.

Be able to be equal to where we are today.

The next question comes from Greg Mcginniss with Scotiabank. Please go ahead.

Operator: The next question comes from Greg McGinniss with Scotiabank. Please go ahead.

Hey, Thanks for taking the question.

And Dan I was just hoping that you could kind of give us the breakdown on the same store NOI growth and then the primary pieces that are kind of adding on top of that to get to the 6% growth.

Greg McGinniss: Hey, thanks for taking the question. Dan, I was just hoping that you could kind of give us the breakdown on the same-store NOI growth, and then the primary pieces that are kind of adding on top of that to get to the 6% growth. That'd be appreciated. And if there's anything in the term fee, which is bigger this year than last year, that's like known and in particular, it'd be appreciated. Thank you.

We appreciate it and if there's anything in the term fee, which is bigger this year than last year.

That's like known and in particular I appreciate it. Thank you.

Yeah.

Yes, so with regards to kind of getting to the 6% <unk> growth roughly and hasnt been talked about a three to three 5%, but I had been talking to folks about over the course of 2025, roughly about 30 30.

Don Wood: Yeah. No, with regards to kind of getting to the 6% FFO growth, yeah, roughly, and as I've been talking to folks, the 3 to 3.5% that I've been talking to folks about over the course of 2025, roughly about $0.30 of growth there, represents probably a good, you know, more than half of the growth in FFO drivers there. You know, and then with probably net from acquisitions and net from redevelopment, you've got about $0.12 each there. So very, very consistent with kind of, you know, the guidance we have been giving. The refi headwind is roughly $0.12 in terms of refinancing the 1.25% bonds, the way we're planning them out.

Of growth there represents probably a good more than half of the growth in <unk>.

The drivers there.

And then we'd probably net from acquisitions and net from redevelopment you've got about 12.

Each there so very very consistent with kind of the.

Guidance, we've been given a refi headwind.

As roughly.

It's kind of roughly 12.

In terms of refinancing the 1.25% bonds. The way, we're planning them out that gets you to kind of almost at 6% of <unk>.

Drive and.

Don Wood: That gets you to kind of almost that 6% FFO drive. And, yeah, our comparable growth is pretty broad-based. It's rent bumps, it is rollover, it is parking, it is across the spectrum of kind of what we, you know, create in terms of a comprehensive shopping center growth profile. You know, nothing stands out there. And with regards to term fees, it's slightly higher than last year. We're just under $6 million. We're guiding to $7 to 8 million. And we kind of feel like, you know, there's some things that are identified. You know, we'll see how that comes out. That's an estimate, and that's why we give a range. But, you know, kind of in line, our 20-year history is probably in and around $7 or 8 million.

Our comparable growth is pretty broad base rent bumps. It is rollover it is.

Arcing it is across the spectrum of kind of what we are.

Create in terms of a comprehensive shopping center growth profile.

Nothing stands out there.

And with regards to term fees.

It's slightly higher than last year were just under $6 million.

We're guiding to seven to eight.

And we kind of feel like yes, there's.

Theres some things that are identified.

We'll see how that comes out that's an estimate.

And that's why we give a range.

But kind.

Kind of in line, our 20 year history is probably in and around.

Seven or $8 million.

The last 10 years, probably more in the $5 million to $6 million.

Don Wood: The last 10 years, probably more in the $5 to 6 million. So, you know, you are kind of right in line with the historical levels on term fees.

So you are kind of right in line with.

It was historical levels on term fees.

The next question comes from Craig Mailman with Citi. Please go ahead.

Operator: The next question comes from Craig Mailman with Citi. Please go ahead.

Hey, everyone. Just just curious Don as you guys ramp up.

Craig Mailman: Hey, everyone, just curious, Don, as you guys ramp up the sales here and acquisitions take a little bit longer or more back-end weighted in a given year, just from a timing perspective, do you have enough cushion in the dividend to either 1031 these from a timing perspective or absorb some of the gains, or could there be a bit of a special potential here as we move on later through the year?

The sales here in acquisitions take a little bit.

There are more backend weighted in the given year.

Just from a timing perspective, do you have enough cushion in the dividend to either 10, 31 thing from a timing perspective or absorb.

Some of the games or could there be.

A bit of a special.

Potential here as we move on later through the year.

I think.

I think Craig that you can count on us managing tax efficiently through the through the dividend and sales of gains and 10 30 ones all of those tools are.

Don Wood: I think, Craig, that you can count on us managing tax efficiently through the dividend and sales of gains and 1031s. All of those tools are available to us to manage our taxable income and our dividend in line with what we've been doing for a bunch of years. That's what you should expect, not a special dividend.

Are available to us to manage our taxable income and our dividends in line with what we've been doing for a bunch of years. That's what you should that's what you should expect not a special dividend.

The next question comes from Alexander Goldfarb with Piper Sandler. Please go ahead.

Operator: The next question comes from Alexander Goldfarb with Piper Sandler. Please go ahead.

Hey, Good evening, Dan you were among the standouts sticking with the NAREIT <unk> not going to core real estate has a lot of there's a lot of cost there is a lot of benefits right. Sometimes you win on revenue, sometimes there's added costs from various things.

Alexander Goldfarb: Hey, good evening. Don, you were among the standouts sticking with the NAREIT FFO, not going to core. Real estate, you know, has a lot of, yeah, there's a lot of cost, there's a lot of benefits, right? Sometimes you win on revenue, sometimes there's added costs from various things. But as you run the company and look at your team, you don't judge them and say, "Oh, well, take out these items, take out those items. I'll give you you know, I'll, I'll let you hit your number." You judge your team based on, you know, how they perform.

But as you run the company and look at your team you don't judge them and say Oh, well take out these items take out those items I will give you you know.

I'll, let you hit your number you judge your team based on how they perform so when you switch to the core I get it that theres volatility and at the same time isn't the whole point to judge the company based on the results they deliver.

Alexander Goldfarb: So when you switch to the core, I get it that there's volatility, but at the same time, isn't the whole point to judge the company based on the results they deliver, you know, as sort of the ball lies, not where, you know, you'd like it to be?

As sort of a ball lives not where you'd like it to be.

Aleksey.

<unk>.

Adding on a core <unk> metric is truly simply a tool that that's aimed not having anything to do with this team at all but everything to do with with being able to better analyze the financial results of the company.

Don Wood: Alex, adding on a core FFO metric is truly simply a tool that's aimed not having anything to do with this team at all, but everything to do with being able to better analyze the financial results of the company. Making it easier for you to see, kind of missing some of the missteps that we've had with in the past with simply using NAREIT FFO. And so that is completely what this is all about. What is important in our view is that this is not used as a nickel and diming, if you will, of the NAREIT FFO result, but rather big items, consequential items that just plain old distort the operating results of the company. That's all that's about.

Making it easier for you to see kind of missing some of the steps missteps that we've had with in the past with with the simply using NAREIT.

<unk> and so that is completely what this is all about what is important and.

Our view is that this is not used as a nickel and diming. If you will of the NAREIT <unk> a result, but rather.

Big items.

Consequential items that just plain old historic.

The operating results of the company. That's all that's about his team is judged on their performance.

Based on on what they do day in and day out.

Don Wood: This team is judged on their performance based on what they do day in and day out, and changing to a Core FFO metric will have no impact on that whatsoever.

And changing to a core metric will have no impact on that whatsoever.

The next question comes from Michael Goldsmith with UBS. Please go ahead.

Operator: The next question comes from Michael Goldsmith with UBS. Please go ahead.

Okay.

Good afternoon, Thanks for taking my question.

Comparable <unk> growth in 2025, and three 8% initial guidance for 2026 of three to three 5%. So just a couple of questions. On this can you bridge the gap from 25 to 2026 and the headwinds that would drive a deceleration and then is that three to three 5% is that the right way to think about.

Michael Goldsmith: Good afternoon. Thanks a lot for taking my question. Comparable POI growth in 2025 of 3.8%, initial guidance for 2026 of 3 to 3.5%. So just a couple questions on this. Can you bridge the gap from 2025 to 2026? Any headwinds that would drive a deceleration? And then is, is that 3 to 3.5%, is that the right way to think about this steady state runway rate of the business? Or as you continue to reposition the portfolio to higher growth assets, can it accelerate from here? Thanks.

This steady state run rate of the business or as you continue to reposition the portfolio into higher growth assets.

Salary from here thanks.

Yes, the big driver in terms of the deceleration is just we will be all turning over as Linda alluded to.

Don Wood: Yeah. The big driver in terms of the deceleration is just, you know, we will be turning over, as Linda alluded to in her comments, a significant amount of anchor space that's already leased at much higher rents, but there will be downtime as leases end, and we position the spaces to give to the incoming tenants at higher rent. That's about a 75 basis point drag of comparable POI. So the 3 to 3.5 is got 75 basis points of drag from that temporary disruption in occupancy. And so we'll see a spike in SNO as a result over the course of the year. So, you know, we're at 200 basis points. It's been increasing as both metrics increase, occupied and leased.

In her comments a significant amount of anchor space that's already leased.

At much higher rents, but there'll be downtime as leases and we.

Physician the spaces.

<unk> to the <unk>.

Incoming tenants.

Higher rent that's about a 75 basis point drag.

Comparable Oi, so the three to three and a half.

As Scott 75 basis points of drag from that temporary disruption in occupancy and so we will see a spike in <unk> as a result over the course of the year.

So we're at 200 basis points has been increasing as both metrics increased occupied and leased so we expect that to.

Balloon a bit in the middle of the year and then come back down by the end of the year as occupancy levels get up into the 90 back up into the 94% mid 94 is upper 94 from the 94% level today, that's probably the biggest driver.

Don Wood: So we expect that to balloon a bit in the middle of the year, and then come back down by the end of the year as occupancy levels get back up into the 94%, mid-90s, upper 90s, from the 94% level today. That's probably the biggest driver. The second question?

The second question.

No.

Steady state Yeah, I would say look I think historically when you look back where.

Michael Goldsmith: No.

Don Wood: Steady state? Yeah, I would say... Look, I think historically, when you look back, we're in the 3 to 4% range. I think with some of the acquisitions, $2 billion of acquisitions, and we're seeing that we're operating these assets, I think, better than we had expected, and with growth rates that are higher than the kind of 3 to 4%, that we've historically seen in our portfolio. I would hope that that would move up into the upper end of kind of the 3 to 4% range. And, you know, I think next year, 2027, we're well positioned to kind of be in and around that 4% level, from where we sit today.

We're in the 3% to 4% range.

I think with some of the acquisitions $2 billion of acquisitions and were seeing that were operating these assets I think better than we had expected and with growth rates that are higher than the kind of 3% to 4% that we've historically seen in our portfolio I would hope that that would move up.

And so the upper end of kind of the 3% to 4% range.

I think next year 2027, we're well positioned.

Be in around that 4% level from where we sit today.

The next question comes from Ravi ICF.

Please go ahead.

Operator: The next question comes from Ravi Vaidya with Mizuho. Please go ahead.

Heather Hope you guys are doing well I wanted to ask about cutting credit.

Ravi Vaidya: Hi there. Hope you guys are doing well. I wanted to ask about tenant credit. It seems like the reserves are a bit conservative. Can you provide a bit more color here? What was the amount realized in full year 25, and are there any tenants or categories that are on your watch list? Can you add color on the mark-to-market opportunity for some of the recent bankruptcies, Container Store-

Given that the reserves are a bit conservative.

Provide a bit more color here what was the amount realized that FLIR 25, and are there any tenants or cat or categories that are on your watch list can.

Can you add color on the mark to market opportunity for some of the recent bankruptcies container store.

Pardon me.

Sure.

Basically there were too many there were too many questions in there. So let me just.

Don Wood: Sure. Sure. I'm gonna copy that. There were too many questions in there, so let me just start here with regards to the tenant credit. You know, 60 to 85 is lower than we were at the start of the year. Last year was 75 to 100. We were about 80-ish, finishing up the year. You know, kind of in that ballpark. It's not a very precise number, but yeah, that's kind of where we end up, kind of 80 to 85 in 2025. The 60 to 85, we don't have a lot of exposure to tenant credit issues. We just don't. We do have Saks. Saks has got two exceptionally strong locations.

Let me just start here with regards to the tenant credit <unk>.

60 to 85 is lower than we were to start the year last year at 75 to 100, we were about 80 ish a fit.

Finishing up the year.

Kind of in that ballpark is not a precise number but that's kind of where we ended up kind of 80 to 85.

In 2025 to $60 to 85, we don't have a lot of exposure to tenant credit issues just don't we.

We do have sacks.

Saks has got two exceptionally strong locations.

One, we're getting back or expect to get back or close for going out of business sales.

Don Wood: One we're getting back or expect to get back, or it's closed for going out of business sales, a Saks Off Fifth at Assembly Row, which is a gray box facing the power center right on a corner. It's probably got 100% roll-up in rent from what's current rent to where market rent is, so it's a huge opportunity. And the other location is a Saks Fifth Avenue store, a flagship location on Greenwich Avenue, hugely productive in the uber-affluent submarket of Greenwich, Connecticut. Arguably, one of the best pieces of real estate in the portfolio. So yeah, we'll see how that all plays out, but you know, really, really great real estate with respect to that. The other thing that we keep an eye on is, and we've talked about it, is Container Store.

And off chip.

<unk> sat at Assembly row.

Which is a great box facing the power center right on a corner.

It's probably got a 100% roll up in rent from what's current rent to where market rents is such a huge opportunity in the <unk>.

The location is.

Saks Fifth Avenue store.

Our flagship location on Greenwich Avenue, hugely productive and eat at Uber App affluence Submarkets Greenwich, Connecticut.

Arguably one of the best pieces of real estate in the portfolio.

So, yes, we will see how that all plays out but.

Really really great real estate with respect to that the other thing that we keep an eye on is and we've talked about it in our store.

Oh, yes.

All five locations they rent all five locations we feel good about.

Don Wood: Both, you know, all, all five locations paying rent, all five locations we feel good about. You know, I think that that's kind of the color we can give there. We'll see how this all plays out. I think we're well covered in the 60 to 85 basis point range that we've given.

I think that that's kind of the color we can give there.

So we'll see how this all plays out I think we're well covered in the 60 to 85 basis point range that we'd given.

The next question comes from Rich Hightower with Barclays. Please go ahead.

Operator: The next question comes from Rich Hightower with Barclays. Please go ahead.

Hey, good evening guys.

I want to go back to one of the comments <unk> made in the prepared commentary about California, being especially robust.

Rich Hightower: Hi, good evening, guys. I wanna go back to one of the comments Wendy made in the prepared commentary about California being especially robust, I guess enough to make it into the comments. So, just tell us what's going on there. I guess we're hearing that from other property types as well, so perhaps it's all sort of singing the same chord, but I'd like to hear what, what you guys are seeing.

I guess enough to make it into the comments.

So Todd just tell us what's going on there I guess, we're hearing that from other.

Property types as well so.

Perhaps it's all sort of singing the same court, but I'd like to hear with what you guys received.

We tier tier, but Jeff crusher.

Answer that Jeff I'd Love, you jeopardize our west coast operations as our President Jeff.

Don Wood: Can we tee up Jeff Kreshek to answer that? Jeff, I'd love you... Jeff runs our West Coast operations, as our president. Jeff, I'd love you to talk about that.

Jeff I'd Love you had talked about that yes.

Yeah sure rich thanks for the question.

Simply put California is going to be our largest source of growth for the next few years, given the backlog of leasing and development activity and the strategic capital recycling, we're seeing out of Santana row, and gross might so, California is going to be a big contributor going forward for a number of years.

Jeff Kreshek: Yeah, sure. Rich, thanks for the question. Simply put, California's gonna be our largest source of growth for the next few years, given the backlog of leasing and development activity and the strategic capital recycling we're seeing out of Santana Row and Grossmont. So California is gonna be a big, big contributor going forward for a number of years.

Yeah.

Next question comes from Linda Tsai with Jefferies. Please go ahead.

Operator: Next question comes from Linda Tsai with Jefferies. Please go ahead.

Hi, just a question on timing.

In terms of the $13 million to $15 million for the development expansion pipeline, what's the timing of that.

Linda Tsai: Hi, just a question on timing. In terms of the $13 to 15 million for the development expansion pipeline, what's the timing of that?

Yes, we've given some additional disclosure.

That hopefully will make it easy for everybody to understand at the bottom of page 29.

Don Wood: Yeah, we've given some additional disclosure that hopefully will make it easy for everybody to understand. At the bottom of page 29 in our 8-K supplement, at the bottom of the guidance page, there is sequential quarterly cadence of the increase over the course of the year. It'll be pretty pro rata. It'll be pretty close each quarter, and you'll see the ramp up from the $17 million coming from the properties in the development pipeline up to roughly a midpoint range that gets you to kind of 30 to 32 or a 31 midpoint. And so that $14 million, the cadence is outlined there. Anybody have any questions with regards to this additional disclosure, that I think it'd be welcome by most of you, feel free to give me or Jill a call, we'll walk you through it.

Our 8-K supplement at the bottom of the guidance page.

There is sequential quarterly cadence of the increase over the course of the year it'll be pretty pro rata would be pretty close each quarter.

You'll see the ramp up from $17 million coming from our properties in the development pipeline up to roughly mid point range. It gets you that kind of 30% to 32 or 31 midpoint and so that $14 million. The cadence is outlined there.

Anybody have any questions with regards to this additional disclosure, but I think it would be welcomed by most of you.

Feel free to give me your July call will walk you through it.

The next question comes from clients in that group.

With random Mark. Please go ahead.

Operator: The next question comes from Floris van Dijkum with Ladenburg Thalmann. Please go ahead.

Hey, guys. Thanks for taking my question so it seems like Oh.

Floris van Dijkum: Hey, guys, thanks for taking my question. So, it seems like, you know, some people, based on the questions you've had, the comp NOI growth, you know, perhaps is understating the true growth that you expect to get from this portfolio and, and, and from this portfolio in 26. Maybe, and I know that in the past, your comp NOI as a percentage of overall NOI was actually pretty robust and pretty high. What percentage of your NOI is being captured in your comp pool today, and how does that impact the SNO pipeline as well?

Uh huh.

Some people based on the questions you've had.

The comp.

NOI growth.

Perhaps is understating the true growth that you expect to get from this portfolio and from this portfolio in 2006, maybe and I know that in the past your your comp NOI as a percentage of overall NOI was was actually a pretty robust some pretty high.

What percentage of your NOI is being captured.

In your in your comp pool today, and how does that impact the the ethanol pipeline as well.

Yes, I would.

I would estimate that kind of what's in the pipe.

The comparable pool is probably <unk>.

Don Wood: Yeah, I would estimate that kind of what's in the comp pipe, the comparable pool is probably 85, 90 percent. We can kind of refine that, but that feels about right. You know, with regards to... Yeah, oh, SNO. Yeah, sorry. With regards to SNO, our SNO within the existing pipeline is growing, and significantly growing. With the commencement of the PwC lease and, being-- getting to recognize that in the fourth quarter, what's coming from the development portfolio is not gonna be as high as it was in past years. So SNO is probably around $27 million in the existing portfolio, and another $5 or 6 million in the development portfolio. And so-...

80, 590% we.

We can kind of refine that but that feels feels about right.

With regards to.

Yeah.

I'll start.

With regards to <unk>.

Our <unk> within the existing.

Our pipeline is growing and significantly growing with the commencement of the Pwc lease.

And are beginning to recognize that in the fourth quarter, what's coming from the development portfolio is not going to be as high as it was in past.

So <unk> is probably around $27 million in the existing portfolio, another five or $6 million and the development portfolio.

And so.

Yes, the cadence about 75% of that will come on.

Don Wood: You know, the cadence, about 75% of that will come on next year, so roughly call it about $25 million. That'll be roughly kind of, $10 to 11 million in the first half of the year, and call it $14 to 15 million in the second half. And then the balance in 2027.

Next year, so roughly call about $25 million.

Roughly.

$10 million to $11 million in the first half of the year and call it $14 million to $15 million in the second half and then the balance in 'twenty seven.

The next question comes from Juan Sanabria with BMO capital markets. Please go ahead.

Operator: The next question comes from Juan Sanabria with BMO Capital Markets. Please go ahead.

Hi, Good afternoon, just hoping you could talk a little bit about the anchor movement.

Juan Sanabria: Hi, good afternoon. Just hoping you could talk a little bit about the anchor movement, kind of what's driving that. Is that proactive by you, or is that something else that's going on? And then you kind of mentioned a one-time hit that otherwise you would have hit your expectations related to Saks. If you could just quantify that dollar amount, that'd be helpful. Thank you.

Kind of what's driving that is that proactive by you or is that.

Is that something else that's going on and then you kind of mentioned a two.

The onetime hit otherwise you would have hit your expectations related to stocks. If you could just quantify that dollar amount that would be helpful. Thank you.

One first of all on the anchors.

Simply timing.

The way the explorations were working particularly on the west coast assets.

Don Wood: Yeah, Juan, first of all, on the anchors, it's simply timing. The way the expirations were working, particularly on the West Coast assets, there were expirations that were coming due a lot last year and in the first half of this year, et cetera. So we've been on top of that to try to make sure that we've got either new tenants coming in. Grossmont is basically a redevelopment of the entire asset there, that's happening. Best Buy at Santana Row, which you may remember going out after an extremely productive period of time, for a new Life Time deal there. It's simply the timing that you know, we've got all leased up, but they'll be a hit in the meantime.

There was there were explorations that were coming due a lot last year and in the first half of this year et cetera. So we've been on top of that to try to make sure that we've got either new tenants coming in.

Gross margin is basically a redevelopment of the tire asset there.

That's happening bestbuy at Santana row, which you may remember going out after an extremely productive period of time.

For our new lifetime.

Deal there.

It's simply the timing that that.

You know, we've got all leased up but there'll be there'll be.

In the in the meantime, but we're.

<unk> right through that and it's still going to grow.

Hopefully at 6% next year, so that's what's going on with respect to the anchors nothing more than timing and what was the Saks charge. There was a noncash charge writing off straight line rent.

Don Wood: But we're plowing right through that, and they're still gonna grow, hopefully at 6%, next year. So that's what's going on with respect to the anchors, nothing more than timing. And what was the last-

Dan Guglielmone: The Saks charge was a non-cash charge, writing off Straight-Line Rent, roughly around $0.03 a share.

Lee around the <unk> a share.

The next question comes from Polly narrow Hudson Clean State. Please go ahead.

Operator: The next question comes from Paulina Rojas with Green Street. Please go ahead.

Good afternoon.

My question is about acquisitions and so while acquisitions are shaped really by what comes to market. If you have full discretion.

Paulina Rojas Schmidt: Good afternoon. My question is about acquisitions. So while acquisitions are shaped really by what comes to market, if you had full discretion, would you cap your exposure to new secondary or tertiary markets? Or are you truly taking a fully market-agnostic approach, assuming property quality meets your standards?

Would you tap your exposure to new secondary or tertiary markets or are you truly.

Taking a fully market agnostic approach assuming property quality meet your standards.

Yes first of all totally and I Love that you started this off with of course it depends on how much supply is available because that's a really important point.

Don Wood: Yeah, first of all, Paulina, I love that you, you started this off with, of course, it depends on how much supply is available, because that's a really important point. The, you know, acquisitions get lumpy. We are so completely committed to the plan that we talked about last year, which is a combination of the new markets that we talked about, and I think you've seen our buy box of what markets effectively apply to that. And, you know, it's 1 million people in a marketplace and very affluent, all of the stuff that we've talked about. But yes, I would be the agnostic to whether we find those assets in those places or in our existing market set that we have, because real estate is local, and it really comes down to the sub-market.

Acquisitions get lumpy, we are so completely committed to the plan that we talked about last year, which is a combination.

The new markets that we talked about and I think you've seen our buy box of what markets effectively.

Applied to that and you know its 1 million people.

And then.

In a marketplace and very affluent all of the stuff that we've talked about but yes, I would be agnostic to whether we find those assets in those places or in our existing.

Market set that we have because real estate is local and it really comes down to the sub market and so to the extent we find those opportunities in places that that we know inside now.

Don Wood: So to the extent we find those opportunities in places that we know inside now. We're looking at some right now, frankly, that are adjacent to our existing assets, love that kind of stuff. But in addition to the new markets that fit the buy box, yes, we're agnostic as to which of those opportunities come to fruition. I hope that helps.

And we're looking at some right now frankly that are adjacent to our existing asset love that kind of stuff.

In addition to the new markets that fit our buy box, yes, we're agnostic as to which of those opportunities come up come to fruition I hope that helps.

Once again, if you have a question. Please press Star then one the next question comes from Mike Mueller with JP Morgan. Please go ahead.

Operator: Once again, if you have a question, please press Star then One. The next question comes from Mike Mueller with JPMorgan. Please go ahead.

Yes, Hi, I think you mentioned you had another 4% to $500 million of non peripheral residential left that you need to fund acquisitions and it seems like the acquisition opportunity is greater than that so what's next on the pecking order after those remaining resi assets.

Michael Mueller: Yeah, hi. I think you mentioned you had another $400 to 500 million of non-peripheral residential left that you can sell to fund acquisitions. It seems like the acquisition opportunity is greater than that. So what's next on the pecking order after those remaining resi assets?

Well no question and it's not even next it's in conjunction with Michael It would be those assets retail assets, where we've done all we can.

Don Wood: Oh, no question, and it's not even next, it's in conjunction with Michael. It would be those assets, retail assets, where we've done all we can. And to the extent we've done all we can and we can get a strong price for those retail assets, we'll use those to recycle into better growth opportunities. So having the opportunity to have both resi and strong assets, strong retail assets that have limited growth opportunities, all of those things are considered. So it's not which one is... It's not using up the resi and then moving to those, it's a combination based on market conditions and, you know, what it is that we can-- where we think we can effectively get paid best for. So you should see a combination of both as we move forward.

And and to the extent, we've done all we can and and.

We can get a strong price.

For those those retail assets, we will use those to recycle into better growth opportunities. So having the opportunity to have both <unk> and <unk>.

Strong assets strong retail assets that have limited growth opportunities all of those things are considered so it's about which one is it is not using up the resi and then moving to those it's a combination based on market conditions.

What it is that we get where we think we can.

Effectively get paid better for so you should see a combination of both as we move forward.

Yes.

This concludes our question and answer session I would like to turn the conference back over to Jill Sawyer for any closing remarks. Please go ahead.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Jill Sawyer for any closing remarks. Please go ahead.

Thanks for joining us today or you see many of you in Florida in a few weeks.

Jill Sawyer: Thanks for joining us today. We look forward to seeing many of you in Florida in a few weeks.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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