In the fourth quarter and throughout 2024, the company achieved multiple record-breaking results in leasing and overall performance, setting strong foundations for future growth. They completed 100 comparable leasing deals with significant rent increases and maintained high occupancy rates, marking their best performance in nearly a decade. The company also increased its dividends per share for the 57th consecutive year and exceeded revenue milestones, surpassing $300 million for the quarter and $1.2 billion for the year. Despite a one-time charge, their FFO per share reached new highs. The company attributes its success to the robust retail real estate market and its diverse, resilient portfolio, noting minimal impact from struggling retailers.

The portfolio is showing improved occupancy rates, with expectations for further growth. Despite economic uncertainties, there is a strong outlook for 2025, driven by a demand for modern office spaces in mixed-use communities. The back-to-office trend is increasing interest and lease agreements, particularly at Santana West and 915 Meeting Street, which are largely committed. While the benefits might not reflect in the 2025 financials, they are expected to positively impact 2026 and 2027. Development activities are also gaining momentum.

The paragraph highlights the progress and future plans of a real estate development company. It mentions that a $90 million residential over retail project at Bala Cynwyd Shopping Center is progressing on budget and ahead of schedule. The company has approved two new developments, one in Hoboken, New Jersey, with 45 residential units and retail space, expecting a 6-7% yield and a 9% IRR. The other is a $32 million redevelopment in Philadelphia's Andorra Shopping Center, featuring a Giant supermarket and renovated facilities, anticipated to yield 7-8%. Additionally, the company is actively pursuing acquisitions, including a $123.5 million shopping center in Northern California, which will enhance their West Coast portfolio. Further developments are anticipated later in the year.

The paragraph announces the promotion of three new vice presidents in the company's executive ranks: Sarah Ford Rogers, Bob Frond, and Vanessa Mendoza, highlighting the company's commitment to developing leadership talent. Additionally, Porter Baloo is promoted to Senior Vice President of Information Technology. The promotions are made to recognize their contributions and expand their roles. Following these announcements, Dan Gee reports the company's financial performance, including NAREIT FFO per share and POI growth, noting strong performance and momentum in 2024 driven by increased tenant demand and favorable rent conditions.

The paragraph outlines the company's financial performance and strategic activities. Redevelopment and expansion projects, such as Huntington and Darien Commons, are nearing stabilization, contributing $12 million to POI. The company has acquired $1.4 billion in assets since mid-2022, surpassing underwriting expectations, especially in Florida and Virginia. However, property expenses and interest rates have increased. Comparable POI and rent growth were strong, with the residential portfolio, particularly Darien Commons, performing well. In 2024, $300 million in retail assets were acquired, and with a new asset under contract, it totals over $400 million. The company focuses on acquiring and developing under-managed properties, with an ongoing development pipeline of $785 million, requiring $230 million more in spending.

The company is actively pursuing growth opportunities through projects in Hoboken and Philadelphia, and plans to further expand its pipeline in 2025 and 2026. They have strengthened their financial flexibility by improving leverage metrics and utilizing equity issuance and asset sales. The fourth quarter annualized adjusted net debt to EBITDA has improved to 5.5 times, ahead of their 2025 target. Liquidity is robust with over $1.4 billion available, and there are no major debt maturities in the near term. For 2025, the company forecasts FFO per share to grow by approximately 5.8% at the midpoint, driven by comparable POI growth and excluding certain prior period rents and fees.

The paragraph discusses financial projections for the company through 2025 and into 2026. It anticipates occupancy levels to increase to 95% by the end of 2025, despite an initial decrease in the first quarter due to seasonal trends. One Santana West will contribute a short-term net drag on financials due to the end of interest capitalization, but is expected to provide significant benefits starting in 2026. In 2025, the company anticipates $0.14 to $0.15 of revenue from new market tax credits, offsetting timing challenges and prior period rent impacts. The 2025 financial outlook includes projected incremental POI contributions of $3.5 to $5 million from development projects and $175 to $225 million in redevelopment and expansion spending. General and administrative expenses are forecasted to be between $45 million and $48 million, with term fees expected to remain consistent with 2024 levels.

The paragraph discusses financial guidance for 2025, including a total credit reserve assumption of 75 to 100 basis points due to limited exposure to bankrupt tenants, aligning with historical averages in the retail sector. The guidance excludes acquisitions or dispositions, except a confirmed $123.5 million acquisition in Northern California expected to close soon. Quarterly FFO for 2025 is projected to start at $1.67-$1.70 in Q1, $1.71-$1.74 in Q2, $1.90-$1.93 in Q3, and $1.82-$1.85 in Q4. Comparable growth will be slow initially but improve sequentially. During a Q&A session, Juan Sanabria from BMO Capital Markets asks about tax credits included in FFO and their offset of $1.6 million in costs, to which Dan Gee and Don Wood confirm the net number reported accounts for these expenses.

In this excerpt from an article, Dan Gee and Don Wood discuss how the federal government's tax credits have historically incentivized development projects, such as Freedom Plaza in East LA. They highlight the complex transactions involved in monetizing these credits through sales to banks and anticipate recognizing earned revenues later in the year. The conversation also shifts to current transaction volumes and funding strategies for acquisitions. Dan Gee notes that their balance sheet is in strong condition, with significant financial flexibility and access to various capital markets, positioning them well for upcoming opportunities.

In the discussion, Dan Gee and Don Wood talk about their active pursuit of acquisitions in the market, noting that while competition for larger assets has increased, they are focused on properties in great locations that can add value through leasing and enhancing the sense of place. They expect a busy year with numerous bidding opportunities, although they are cautious about pricing and potential returns. Steve Sakwa from Evercore raises a question about leasing dynamics with a highly leased portfolio, prompting Gee to express optimism about the business environment.

Don Wood discusses the competitive nature of leasing desirable property spaces, emphasizing the importance of securing not just rental income but also control provisions in leases. He highlights the success of these efforts, noting that their properties are 96% leased. He mentions that reaching 100% occupancy might not be ideal, as it could mean missed opportunities, suggesting a slight vacancy can be strategically beneficial. Dan Gee and Wood further discuss the importance of redevelopment, development, and acquisitions in their business strategy.

In the paragraph, the speakers discuss their acquisition strategy, noting an increase in available assets on the market compared to six or nine months ago. This is partly due to higher, prolonged debt costs forcing some sellers to act, particularly those with pending loans. They are exploring new markets, such as Cleveland, Ohio, where they recently evaluated an asset that ultimately did not meet their criteria. Overall, there is heightened activity due to the greater availability of assets and the widening of market exploration.

In this paragraph, Alexander Goldfarb from Piper Sandler asks about the credit quality and watchlist of a portfolio, specifically noting concerns about retail bankruptcies and whether there are specific risk tenants. Dan Gee responds, saying that they have minimal exposure to troubled retailers like Big Lots, Party City, and Joanne’s, with most concerns being longer-term or medium-term. The credit reserve is maintained at 75 to 100 basis points due to economic volatility, but there are no specific issues identified. The operator then introduces Craig Mailman from Citi, who inquires about the company’s interest in pursuing large mixed-use deals and possibly joint ventures for high-profile assets. Don Wood appears to start responding.

The paragraph discusses the company's interest and capacity to invest in mixed-use assets, emphasizing the importance of the internal rate of return (IRR) and effective management by previous owners. They evaluate each property on a case-by-case basis, considering factors like deferred capital needs and rent levels. The possibility of joint venture partnerships is also mentioned as a way to manage larger investments, provided the numbers make financial sense. The paragraph ends with a transition to a question about tariffs from Haendel St. Juste of Mizuho, directed towards Dan Gee.

In this discussion, Don Wood and others address the impact of tariffs on tenants, particularly in the retail sector. Despite concerns, many tenants appear less concerned about tariffs than the news suggests, as they have diversified their sourcing since the Trump administration and COVID-19. This diversification helps them manage costs, especially for retailers targeting less affluent consumers who are more affected by tariffs. Higher-end locations are better able to absorb these costs. Each business adapts differently, but savvy retailers have improved their margins since COVID-19. Wendy confirms that all major points have been covered.

In the paragraph, Dan Gee, Don Wood, and others discuss the impact of tariffs on their business, framing it as a challenge they have been handling well. They also discuss projected growth figures, indicating an expected acceleration in comparable portfolio income driven by strong occupancy. Questions from analysts like Michael Goldsmith and Mike Mueller highlight interest in growth projections and potential shifts in development strategy. The response suggests that while there is no definitive pivot towards more development, owning land enhances their ability to develop effectively.

The paragraph discusses the financial advantages of low or no-cost land for construction projects, highlighting the Bala Cynwyd asset as an example. Land typically represents a significant portion of project costs, so reducing this expense provides an advantage. It also mentions that contractors are currently willing to accept lower profit margins due to a lack of business. There's a shift from a focus purely on acquisitions to potential development opportunities. A discussion on the financial impact of the Santana West project follows, noting that the expected contribution in 2026 will be after the costs of capitalized interest are burned off, affecting profits in 2025 but leading to a positive impact afterward.

In the paragraph, Dan Gee and Don Wood discuss the process of locking up construction costs for projects, particularly focusing on materials like lumber and steel. Don Wood mentions that they try to secure construction costs as soon as a project is fully designed, moving towards a Guaranteed Maximum Price (GMP). He highlights a Hoboken project that uses concrete and does not anticipate cost issues. However, they must wait for complete designs to lock down costs for projects primarily using lumber since they do not warehouse materials. The conversation touches on uncertainties related to construction costs and potential impacts from political changes during the Trump presidency. They emphasize not taking risks on announced projects, as costs are already locked. The discussion concludes with an introduction to a question from Floris van Dijkum about Don Wood's achievements in developing valuable mixed-use projects in the shopping center sector.

In this discussion, Don Wood explains the approach to capital allocation within their investment strategy, emphasizing that decisions are based on internal rate of return (IRR) and risk-adjusted returns rather than personal preference for specific properties. Despite their proficiency and experience in mixed-use developments, they're not willing to overpay for assets just to accumulate such projects. Wood clarifies that theoretical comparisons like choosing between multiple smaller projects and one large one are unrealistic, as they focus on actual opportunities and diligent underwriting. Their expertise and reputation enable them to perform well with certain types of assets, particularly mixed-use, due to their understanding of the operations and tenant relationships involved.

The paragraph is a transcript of a conference call discussing capital allocation strategies, transaction environments, and leasing. It features multiple speakers, including Linda Tsai, Dan Gee, Don Wood, Jeff Berkus, Juan Sanabria, and Wendy Seher. Linda Tsai inquires about transaction opportunities across different regions and retail formats, to which Juan Sanabria responds that opportunities are judged on a case-by-case basis without clear regional or format preferences. Omotayo Okusanya asks about leasing strategies at 96% occupancy, prompting Wendy Seher to explain that high occupancy allows them to focus on strategic merchandising and sales growth.

The paragraph is from a discussion about the financial management of shopping centers, focusing on the improvement of rental income through quality merchant growth and strategic contract management. The company is emphasizing the importance of sales performance in extending contract terms. Additionally, there's a conversation with Juan Sanabria regarding financial guidance, mentioning a $5 million impact from disposed properties in 2024 which affects the 2025 guidance. It reflects income from past sales like those in Santa Monica. Juan also queries about acquisition offsets, and Dan Gee commits to providing further details later, referencing a recent acquisition in Virginia Gateway.

In a discussion about exploring new markets, Alexander Goldfarb asks whether the company is reconsidering its traditional market strategies and how they aim to achieve meaningful market concentration despite limited deal flow. The operators, Don Wood and Dan Gee, clarify that although they are open to smaller markets compared to major coastal cities, they will maintain a focus on high-quality assets, targeting only the best available centers in those smaller yet still sizable cities. They express commitment to maintaining quality while exploring these new opportunities.

The paragraph consists of a discussion among Jeff Berkus, Dan Gee, Don Wood, and Steve Sakwa. The conversation centers on the challenges and strategies of owning multiple centers in a market. They explain that while it's difficult to manage five to seven centers within a market, they find it viable to focus on the best one or two centers in specific locations, especially those not on the coasts but with significant affluent populations. The approach emphasizes working closely with retailers to ensure they can effect changes where demand exists. Steve Sakwa then asks Dan Gee about the projected financial performance, noting a potential sequential drop from the fourth to the first quarter and the expectation of improvements in the second half. Dan Gee explains that this is due to seasonality, particularly tenant move-outs affecting occupancy rates, which are expected to decrease to the mid to upper 93% range.

The paragraph discusses the seasonal impact of expenses like snow on business operations, particularly in the northeast, affecting customer traffic and hotel income. It mentions the influence of cold weather on parking and rent, as well as the transition from COVID-era deferrals to normal operations, contributing to financial changes. Additionally, it highlights occupancy improvements expected in the second quarter and a steady growth trend. A follow-up question from Floris van Dijkum concerns the rental impact of a "S and O" pipeline, with Dan Gee noting that rental from the comparable pool is over $25 million, with additional leases expected to bring total rent to $41-$42 million by 2025-2026.

The paragraph discusses the scheduling of starts, with 55% planned for the second half of the year and 25 points of 80 occurring in the first half. The question and answer session has concluded, and Leah Brady ends the presentation by thanking attendees and expressing anticipation of future meetings. The operator announces the conclusion of the conference.

This summary was generated with AI and may contain some inaccuracies.