Oct 28, 2026 earnings call — Leasing, acquisitions, and raised FFO guidance
Raised 2026 Core FFO guidance to a range of $2.11 to $2.14 per diluted share; Q3 core FFO was $0.53 per diluted share.
Revenue $0.0B (est $0.0B) · EPS $-0.19 (est $0.20)
Key quotes
"Of the 11 spaces, 9 have been re-leased at approximately 70% positive spread."
"Zona Rosa, which we acquired in the third quarter for approximately $63 million or $82 per square foot, well below replacement cost."
"We are raising our 2026 Core FFO guidance to a range of $2.11 to $2.14 per diluted share up from $2.09 to $2.13."
Analyst Q&A 6
Leasing demand and New Mexico office sale
Q (Jay Kornreich · Cantor Fitzgerald): The analyst asked about general demand across the portfolio and whether landlords have pricing power now and into 2027. He also asked for any update on the New Mexico office and timing or marketing for a potential sale.
A: Management said leasing activity is still good and coming from quality tenants, though not a frantic rush. For the New Mexico office, the State has committed, they are talking to Fidelity about space needs, and they will wait for the new state administration next year to optimize the property rather than hastily sell.
"Yes, we are seeing still good activity on the leasing front." — John Albright (CEO)
Zona Rosa acquisition and leasing plan
Q (Matthew Erdner · Raymond James): He asked what opportunity they see at Zona Rosa and how much space they can bring online in the next years. He also asked how much of the 2028 expirations are from Zona Rosa and where rent upside will come from.
A: They said Zona Rosa had been owned by a foreclosing entity with little leasing outreach, but it has high-performing tenants and clear opportunities in health/fitness, entertainment, restaurants, and hotel pad sites. They bought it at an opportunistic current yield and plan to lease up vacancy; separately, they said Zona Rosa is not a large part of 2028 expirations and most rent growth will come from small-shop renewals and a few large renewals they feel good about.
"And so I just, you know, really attacking on all sides and, you know, given that, you know, we bought it at a nice opportunistic current yield." — John Albright (CEO)
Equity funding, asset demand, and lease timing
Q (Robert Stevenson · Janney Montgomery): He asked how they think about raising equity with the stock under 20 and whether higher rates hurt demand for assets they want to sell. He also asked when the $5.6 million signed-not-open will start to hit revenue and how it is weighted into 2027/2028, plus what drives the high end of guidance.
A: They said they do not need to rely on the equity price now and will focus on recycling assets if they can get premium pricing. They said there is still strong capital demand for retail shopping centers despite rate-related pricing adjustments. They said of the $5.6 million, about $3.2 comes online in 2027 and most of it is online for 2028; guidance variance depends on signed-not-open rent commencement timing and fourth-quarter percent rent.
"But of the 5.6 million about 3.2 comes online in 2027." — Philip R. Mays (CFO)
Zona Rosa details, capex, preferred investment, swap
Q (Craig Kucera · Lucid): He asked if the 100,000 underutilized square feet is part of the 250,000 vacancy at Zona Rosa and whether significant CapEx is needed. He also asked if they will keep the $32 million preferred equity or sell part, asked about the swap maturing in 2027, and asked about the Harkins termination fee recognition.
A: They said the 100,000 is included in the total vacancy but is underutilized because there is no anchor to drive traffic and they are working to activate it. They said deferred maintenance is not huge and most meaningful capital will be tenant-driven revenue investments. They expect to hold the $32 million preferred, one swap on about $100 million rolls up 180 basis points and is the only swap changing in 2027, and the Harkins early termination involved rent relief in exchange for an option so there was no one-time income this quarter.
"So it is it is in total, but there is a 100 that is just very underutilized where it sets and not really activated because there is not an anchor to really drive people back there currently." — John Albright (CEO)
17% loan yield and loan portfolio target
Q (Gaurav Mehta · Alliance Global Partners): He asked why the $32 million commercial loan yields 17%, higher than prior loans. He also asked what the target size is for their commercial loan investment as a percent of assets.
A: They said the high yield reflects the transaction complexity and speed — the borrower needed capital by a date certain and had little time to shop, so it was priced higher and is expected to be a shorter, roughly two-year duration investment. They said the loan portfolio is around a 15% level of undepreciated assets and they do not expect it to go higher than that.
"So, you know, I do not anticipate that is going higher than the level where it is right now." — John Albright (CEO)
Leverage, dispositions, Summit Wood, Pompano runway
Q (John Massocca · B. Riley): He asked about moves since quarter end, the capital markets outlook, current leverage and whether they will do systematic dispositions or opportunistic sales next year. He also asked if Summit Wood has re-tenanting upside and how much more square footage can be added at Pompano.
A: They said leverage was a little under 6 times at quarter end and may push to about 6.5 times with recent activity, but the sign-out-open pipeline and pad sales should reduce leverage about 0.2 so they would be in the low sixes and are comfortable with that. They said they will opportunistically recycle assets and expect something in the next six months; Summit Wood is a high-quality asset with very below-market Kohl's and Lowe's leases, and Pompano still has leasing runway with AMP taking much of the unfinished space and driving energy.
"With all that activity, I think we go up to maybe 6.5. Times debt to EBITDA." — Philip R. Mays (CFO)