Oct 28, 2026 earnings call — Regency Court acquisition and FFO guidance increase
Reported Q3 FFO as adjusted of $0.38 per share and raised 2026 FFO guidance midpoint by $0.01 to $1.52-$1.54.
Revenue $0.1B (est $0.1B) · EPS $0.41 (est $0.12)
Key quotes
"In the third quarter, we signed 37 leases totaling 463,000 sq ft. That included 26 renewals totaling 406,000 sq ft at a 12% spread, and 11 new leases totaling 58,000 sq ft at a 27% same-space spread."
"Earlier this month, we closed on the $90.3 million acquisition of Regency Court in Boca Raton, marking our entry into Florida."
"Our active redevelopment pipeline now stands at $152 million, with $57 million left to fund and an expected yield of about 12%."
Analyst Q&A 6
South Florida growth plan
Q (Michael Goldsmith · UBS): How quickly can you build scale in Florida and would you buy more even if yields are compressed? Also, what drove the higher same-store NOI guidance and the Q4 acceleration?
A: Management said Regency Court is an exceptional, supply-constrained asset that can open the door to more opportunities in South Florida and that they grow presence slowly by being visible and buying selectively. They said the same-store NOI lift is mainly from full stabilization of rents that began in Q3 and incremental rents from the SNO pipeline in Q4, plus seasonal percentage rent and ancillary income.
"The biggest building blocks are what you said, really the full stabilization of rents that commenced in Q3 that will roll over, as well as what I mentioned for the incremental rents from the SNO pipeline in Q4." — Mark Langer (CFO)
Development and expense trends
Q (Ronald Kamdem · Morgan Stanley): Will you only buy in South Florida or also develop? Will you go beyond Florida? And are expense increases this quarter elevated or in line going forward?
A: They said they want more Regency-type centers but such deals are rare; they will be opportunistic and may extend to other parts of the state. They said they favor repurposing older centers rather than ground-up development. On expenses, they noted a year-to-date true-up on tax appeals reduced tax expense this quarter and said a 3% escalation for property OpEx is a reasonable go-forward assumption.
"In terms of other expense categories, Ron, I think on a go-forward basis, it's fair to assume we've been renegotiating, looking hard at those, but I think a 3% escalation in general for property OpEx is a reasonable assumption." — Mark Langer (CFO)
Regency yields and capital costs
Q (Michael Griffin · Evercore): What do you expect stabilized yields at Regency Court and how fast can you push below-market rents? Also, how should we think about capital costs as a percent of NOI going forward?
A: They would not give specific stabilized yield numbers, but said the anchor leases expire in six years and rarely go full term, so they expect some deal before then and pointed to an 8%-9% unlevered expected yield as a modeling guide. They said capital costs are trending lower across leasing and maintenance, with more as-is leasing deals and a smaller renovation/deferred maintenance run-rate going forward.
"But you can sort of do the back of the envelope math looking at our 8%-9% unlevered expected yield, and that sort of gives you, I think, enough guidance for you to put into your model." — Jeff Olson (CEO·CHAIR)
GAAP yield, Publix option, Bruckner timing
Q (Floris van Dijkum · Ladenburg Thalmann): What will the GAAP yield be versus the cash yield at Regency Court? Would you sell the Publix box to Publix or mark its rent to market? And when will Bruckner Commons stabilize?
A: They said the GAAP purchase price allocation is not finalized but expect the GAAP yield to be in the 5s. On the Publix question they said options are ongoing and depend on price. For Bruckner Commons, they expect the new tenants (Chick-fil-A, Chipotle, BJ's, Ross, dd's DISCOUNTS) to open in the first half of 2027 and feel good about that timing.
"Well, we haven't finalized the purchase price allocation, Floris, but I expect the GAAP yield to be in the 5s." — Mark Langer (CFO)
Shop mix and parcel sale update
Q (Michael Gorman · BTIG): Why do the deals this year have a higher shop component—market supply or strategy? Any update on the Sunrise parcel sale and has the Publix at Regency Court been refreshed recently?
A: They said the shift is driven by capital recycling: selling lower-growth, high-credit assets to buy higher long-term NOI growth assets, so it is about growth potential not format. On the Sunrise parcel sale, they have a publicly noticed site-plan hearing in about two weeks and feel prepared, though additional hearings could be required. They confirmed the Publix at Regency Court has not been redeveloped.
"Once that is completed and that goes through the process, and with these things, it's impossible to say if it's going to take one hearing or two or three, but we feel very confident that we're prepared and ready for it." — Jeff Mooallem (COO)
Buy box, out-of-market assets, scale needs
Q (Paulina Rojas · Green Street): What is your general buy box and will you target similar demographics in Florida? Are assets outside your D.C.-Boston corridor candidates for recycling? Do you need scale in South Florida to operate efficiently?
A: They said they favor densely populated, first-ring suburbs with high affluence and constrained supply and expect to keep deploying capital where those demographics align. They said out-of-area assets could be candidates for recycling, price dependent. They also said they can operate with one to a few centers in South Florida given their market experience, although adding two to four more centers would be nicer.
"Look, we favor densely populated markets, first-string suburbs, highly affluent areas where supply is severely constrained, and where we can do something with a shopping center that makes it unique." — Jeff Olson (CEO·CHAIR)