Oct 28, 2026 earnings call — Leasing-led growth and updated FFO guidance
Company raised full-year NAREIT FFO guidance to $2.05 to $2.07 per share.
Revenue $0.1B (est $0.1B) · EPS $0.25 (est $0.03)
Key quotes
"Turning to our portfolio results, we executed 86 leases during the quarter covering approximately 549 thousand square feet."
"We have raised our return hurdles and are taking a measured approach until pricing better aligns with our cost of capital."
"We are updating our full year same property NOI gains range to 3.75% to 4.25%. We are also raising our FFO per share guidance to $2.05 to $2.07 for NAREIT FFO and $1.94 to $1.96 for core FFO."
Analyst Q&A 6
investment return targets
Q (Todd Thomas · KeyBanc): He asked how much they raised required returns and whether sellers are adjusting expectations. He also asked about the pipeline and potential asset sales to meet revised guidance.
A: They said they are targeting higher initial yields and return expectations to match changes in their cost of capital. They described the change as "anywhere between 25 to 50 basis" depending on property type and said they have not yet seen private seller expectations move. They expect to be active in 2027 and said there are 2 assets in the market with at least 1 likely to close by year-end and a pipeline they referred to as "$2.52 billion."
"Just making sure that we are targeting the right initial yields, the right return expectations, as it relates to what is changed in our cost of capital." — Daniel Joseph Busch (CEO)
small shop occupancy and NOI growth
Q (BofA): He asked about shop occupancy, health of local small-shop tenants, and arrears or delayed payments. He also asked if same-store NOI can accelerate and how visible that is from current leasing.
A: They said local tenants are "just under 20%" of the portfolio and have been resilient, with minimal exposure to recent bankruptcies. They expect small-shop occupancy to remain strong and said bad debt is "trending towards the low end" of guidance. They noted "140 basis points" of visibility into 2027 and reiterated a long-term same-property NOI trajectory of "3% to 4%," saying free cash flow acceleration will come from higher tenant quality, strong renewals, and portfolio curation.
"I think implied in our guidance with from a bad debt perspective is we are kind of trending towards the low end." — Daniel Joseph Busch (CEO)
rent timing and leverage capacity
Q (James Feldman · Wells Fargo): First, how much of the remaining $4.3 million will start paying rent in Q4 versus 2027, and are there move-out offsets and spread rebuilds? Second, how much net investment can they fund while keeping leverage below 5x and when would they consider equity or a JV?
A: Mike said about "1/3" of the $4.3 million should come online in fourth quarter, 2026, and "about 75% of that should be online by full year 2027," with no known move-outs embedded. Daniel said net debt-to-EBITDA is 5.3 trailing and 4.9 on the current-quarter annualized, with a "sub-5" times target by year-end and a forward leverage tolerance around "5 and 5.5x" (able to push toward 5.5x if needed). He said they believe they can grow NOI substantially—"almost 50%" over five years—using the current balance sheet and that they prefer a wholly owned strategy, though partner capital is available if they chose it.
"And about 75% of that should be online by full year 2027." — Michael Douglas Phillips (CFO)
anchor lease updates and vacancies
Q (Linda Tsai · Truist): She asked whether the anchor leases referenced were the three hoped to be done by year-end and for updates on the former Painted Tree and Dallas Party City spaces. She also asked if tenants request more concessions for 16% renewal spreads.
A: Christy said they signed a lease with Nordstrom Rack at St. Johns Town Center that will open in late 2027 and produced over 70% spread. She said there are 6 anchor vacancies: 3 (including Belk's) at the St. Pete property are held for a larger repositioning and expected to break ground in 2027; of the other 3, one has an LOI and the two former Party City spaces are expected to have signed leases by year-end. She added they have not seen tenant requests for unusual concessions on those renewal deals.
"With respect to the St. Johns Town Center space, and we were able to sign a lease with Nordstrom Rack, which would come online and be open in late 2027." — Christy L. David (COO)
what drives free cash flow gains
Q (Michael Gorman · BTIG): He asked whether free cash flow upside as occupancy reaches frictional levels will come more from lower turnover (retention) or from lower tenant capital demands and reduced leasing costs.
A: They said it is "much more of the former"—free cash flow gains will be driven by retention and lower turnover rather than lower build-out capital. They explained build-out costs still depend on format and tenant type (local/regional generally less costly, large format more expensive). Keeping quality tenants and high retention reduces recurring TI and landlord work, which preserves capital for value-add redevelopments.
"it is more of a retention than the capital required to build out some assets." — Daniel Joseph Busch (CEO)
external growth approach and pricing
Q (Paulina Rojas Schmidt · Green Street): She asked why they are not giving external growth guidance for 2027 and whether they will stay opportunistic given rising IRR expectations and sticky private-market pricing. She also asked if pricing has moved at all.
A: They said they remain opportunistic and will match pockets of capital and cost of capital to the returns available in the market. If market pricing does not make sense they will focus on internal growth and wait for better opportunities rather than change their core strategy. They described private-market pricing as "very sticky" so far but said pricing can change quickly as more price discovery occurs; their stance is to lean in when opportunities meet their return thresholds.
"I think we are always going to be looking at things that make sense to the portfolio." — Daniel Joseph Busch (CEO)