Oct 27, 2026 earnings call — Strong quarter and Slate transaction
Raised full-year FFO per share outlook to $2.36 to $2.38.
Revenue $0.4B (est $0.4B) · EPS $0.28 (est $0.23)
Key quotes
"Starting with leasing, we executed 1.6 million square feet of new and renewal leases during the quarter at a blended comparable rent spread of 25%."
"During the quarter, we stabilized 4 projects $55 million of investment at a 10% average incremental return."
"Subsequent to quarter end, we are currently working on a delayed draw term loan with our broader bank group for $400 million with closing expected in the fourth quarter and drawing in conjunction with closing."
Analyst Q&A 16
anchor leasing and pipeline
Q (Michael Goldsmith · UBS): Analyst asked if the anchor occupancy pickup this quarter had any noise or was clean leasing, and whether the compressed SNO pipeline means leasing benefits will show over the next quarters.
A: Management said leasing was "clean" and occupancy bounced back strongly in the back half. They noted high-quality tenants are being added and that they commenced $17 million of rent this quarter while about $69 million remains signed but not yet commenced, giving visibility into growth next year.
"I think clean leasing is a good way to describe it." — Brian T. Finnegan (CEO)
funding Slate and leverage
Q (Mizuho): Analyst asked whether leverage will tick up or organically delever, how dispositions will fund the deal, and what transaction market conditions mean for near-term deployment.
A: Management said expectations are similar to a month ago and that as assets are sold heading into year-end cash will sit on the balance sheet and naturally delever, though leverage should remain "sort of where we are." They added the transaction market shows strong demand and that they currently have about $130 million under contract or in negotiations, including some land parcels, which makes them confident they can fund Slate accretively.
"So we are really, really confident in our ability to fund the transaction accretively here." — Mark T. Horgan
ancillary headwind and rent growth
Q (Todd Thomas · KeyBanc): Analyst asked for detail on ancillary income headwinds that imply Q4 same-store NOI deceleration, and whether the 4.8% base rent growth quarter can be sustained into 2027.
A: Management said renewal growth has been mid teens with higher retention and stronger tenant sales, supporting continued mark-to-market upside. They explained the ancillary headwind is mainly timing: in Q4 last year there was "1 large incentive payment from a redevelopment" that is hitting the fourth quarter this year rather than being spread, so the Q4 comparison is weaker but expected.
"When you think about the ancillary headwind, in the fourth quarter of last year, we really had 1 large incentive payment from a redevelopment that we did" — Steven T. Gallagher (CFO)
small shop occupancy upside
Q (Michael Griffin · Evercore): Analyst asked how much further small shop leased occupancy can move and whether tenants push back because occupancy cost ratios are rising.
A: Management said they have significant visibility on small-shop upside driven by their reinvestment pipeline and that small shop occupancy currently trails the portfolio by several hundred basis points and will improve as projects come online. They added tenants are performing well, retention is up 300 basis points year over year, move-outs are record lows, and higher-quality operators are signing, so resistance to higher rents has not been a material issue.
"We continue to have significant visibility on upside in our small shops." — Brian T. Finnegan (CEO)
who is buying retail assets
Q (Craig Mailman · Citi): Analyst asked about the makeup and depth of capital coming into open-air retail and whether deployment-driven capital raises might make pricing less sticky later.
A: Management said capital is broad, including pension funds, sovereign wealth, LPs, and high-net-worth investors, and that inbound interest appears to be in the billions of dollars today. They noted pricing has stayed relatively sticky and liquidity is strong, though pricing pressure is more likely in assets that require a lot of debt or new construction.
"What we are tracking from what we have just had inbound calls on is billions of dollars of capital today." — Mark T. Horgan
redevelopment pipeline size and nature
Q (Samir Khanal · BofA): Analyst asked about the roughly $330 million reinvestment pipeline at about a 10% yield and whether that opportunity size persists over the next years.
A: Management said the appeal is both size and the nature of projects, which have grown larger with similar risk and include Publix developments and outparcel densification. They stated there is about "a billion dollars just in what is in our active pipeline today and in the future pipeline we show you every quarter," and they expect reinvestment to remain a core strategy.
"But independent of that, you still have a billion dollars just in what is in our active pipeline today and in the future pipeline we show you every quarter." — Brian T. Finnegan (CEO)
speed from lease to rent
Q (Greg McGinniss · Scotiabank): Analyst asked how many days they cut from lease signing to rent paying and whether that acceleration is applied to the SNO pipeline disclosure for 2027 starts.
A: Management said it is hard to state days exactly because scopes differ, but they have materially reduced legal timelines and other steps and have improved relationships with tenants and municipalities. They noted "we are down about 25% in our time legal over the last 2 years," tenants take more existing conditions, and these changes reduced capital spend and pulled dates forward into the third quarter and will continue improving into 2027.
"So we are down about 25% in our time legal over the last 2 years." — Brian T. Finnegan (CEO)
bad debt and watch list
Q (Caitlin Burrows · Goldman Sachs): Analyst asked about bad debt in the quarter and whether the watch list has shifted.
A: Management said the tenancy health is the strongest it has ever been, and bad debt trends have improved so they lowered and maintained their outlook because Q3 went as expected. They added the watch list is lower, they still monitor categories that may close stores like drug stores, and they have reduced exposure to office supply.
"Yeah, I mean Steven can touch on the quarterly trajectory, but I would just say, Caitlin, the health of the tenancy is the strongest it is ever been." — Brian T. Finnegan (CEO)
scale and tenant relationships
Q (Alexander Goldfarb · Piper Sandler): Analyst asked whether becoming bigger with Slate improves negotiating leverage with national retailers or helps expand tenant relationships into new markets.
A: Management said their national tenant relationships are already broad and that discussions with retailers about Slate and reinvestment plans have been positive. They noted scale metrics: "We have 900 million visits over the last year. We have 8 thousand leases. We are we are among the top landlord to every major retailer in the country," and they will pursue accretive acquisitions where their platform can add long-term growth.
"We are we are among the top landlord to every major retailer in the country." — Brian T. Finnegan (CEO)
where lease economics improve
Q (James Feldman · Wells Fargo): Analyst asked which lease terms (escalators, options, guarantees, TI, landlord work) are driving improved lease economics and whether in-place contractual growth of 1.7% can move toward 2.6%.
A: Management said the improvement comes from multiple levers, including better CAM clauses and deploying fixed CAM, which is now 41% of ABR and growing at 4.2%. They noted average growth moved from 90 basis points in 2016 to 1.7% today, are reducing options especially for local tenants, introducing fair market value concepts for regionals, and believe continued tenant success and improved mix will drive further gains toward levels seen on new deals like 2.6%.
"You look at a portfolio today that is recovering a few hundred basis points ahead of build occupancy, that was the direct opposite in 2019." — Brian T. Finnegan (CEO)
does Slate change cruising speed
Q (Floris van Dijkum · Ladenburg Thalmann): Analyst asked whether Slate will add to or detract from the company's "cruising speed" and how many years of 2.6% new-lease growth are needed to reach a 2% portfolio average.
A: Management said Slate's team has strong growth history, with renewal growth in the mid teens and new lease growth in the "40% range," which makes them optimistic about what their platform can deliver on Slate assets, especially where redevelopment upside exists. They added it is challenging to model how many years to reach a given cruising speed, but they expect steady improvement and see a long runway.
"I mean, that team has been delivering renewal growth in the mid teens over the last year." — Brian T. Finnegan (CEO)
retention rate steady state
Q (Linda Tsai · Truist): Analyst asked whether the near-88% retention ratio is a new steady state or will change when Slate is incorporated and remerchandising happens.
A: Management said the higher retention rate is more a result of their portfolio work than an explicit target, and historically retention rose from the low eighties into the mid-to-high eighties. They said you can "expect us around this level probably towards the high end," but they will still recapture under-market or underutilized space when that creates more value at the asset level.
"I think you can expect us around this level probably towards the high end." — Brian T. Finnegan (CEO)
repeat JV/preferred equity template
Q (Paulina Rojas · Green Street): Analyst asked how willing management is to repeat the Slate-style JV and fee-income template and whether management fees will play a bigger role going forward.
A: Management said the answer is unchanged: they will consider such structures when alignment and the business plan justify the additional complexity, and they have done joint ventures with large institutions before. They called these decisions opportunity-dependent and noted they like having the bulk of the portfolio with no property-level debt, so such templates will be used on a case-by-case basis.
"I think the answer is the same as it was before the Slate transaction." — Brian T. Finnegan (CEO)
reinvestment returns vs rates
Q (Mike Mueller · JPMorgan): Analyst asked whether the reinvestment underwriting and return hurdle flex with large interest-rate moves like acquisitions do, or if reinvestments are different.
A: Management said they always view investments through the lens of rising rates, but for reinvestments they now require higher pre-leasing and better cost visibility and do not take spec projects. They noted material costs have moderated this year, labor pressure is limited, and the additional focus has been on pre-leasing conviction rather than rate moves alone.
"So I think if anything, that is been the additional focus versus the rates on the reinvestment investments." — Brian T. Finnegan (CEO)
term fees and FFO impact
Q (Greg McGinniss · Scotiabank): Analyst asked how much of the FFO increase to the midpoint came from same-store NOI versus term fees, and what term fees they expect in Q4.
A: Management said term fees were expected to be a headwind for 2026 and can be lumpy, but in the quarter the majority of the term fee recorded was actually for rent, which reflected tenant-credit recovery via a UK guarantor collecting over $2 million. They added the same-property move implies about "a penny, penny and a half" of benefit and the rest of the FFO increase is within their expectations for the year.
"If you actually look at the term fee that we recorded in the quarter, majority of it was actually for rent." — Steven T. Gallagher (CFO)
modeling notes for 2027
Q (Omotayo Okusanya · Deutsche Bank): Analyst asked if there is anything to highlight for 2027 modeling or whether next year looks like business as usual.
A: Management said 2027 will not be business as usual because Slate will be coming on and they will provide guidance in February. They also pointed out swaps burn off in July and that they put in $400 million of new hedges to cover when those drop off; otherwise they said disclosures show where they stand into 2027.
"I mean, it is definitely not going to be business as usual with Slate coming on." — Steven T. Gallagher (CFO)