Cooper Clark

Multifamily disposition pipeline and pricing expectations

Multifamily development recycling plan and development yields

CFO explained temporary funding via credit facilities/term loans with permanent funding from asset sales. Accretion driven by spread between mid-to-high 5% selling yields and 7%+ GAAP acquisition yields.

CEO outlined two development tracks: retail redevelopment at high single-digit/low double-digit returns, and residential development targeting 7%+ on existing portfolio land. Lower rates would accelerate pipeline. CFO confirmed residential at ~7% yields.

Jamieson cited gross yields in low-to-mid 5s for new multifamily projects, but Kimco's pref structure generates 8%+ on invested capital (Coulter example). Cooper noted disposition pricing in high 4s to low 5s for best locations with retail amenity premium.

Cooper acknowledged cost of capital challenge for larger acquisitions. 2025 acquisitions all sourced from existing investments with ROFO/ROFR. Door remains open for M&A opportunities should conditions change.

Cooper noted portfolios pricing as aggressively as one-offs currently. Best risk-adjusted returns from existing JV and structured investment programs. Flynn highlighted value-add buyers seeking watch list tenants for mark-to-market opportunity.

Jamieson identified pension funds, sovereigns, and JV partners investing on own account. Primarily unlevered acquirers targeting mid to high single-digit IRRs. Portfolio pricing as aggressive as one-offs currently, unlike RPT acquisition timing.

Tim provided specific back-half new lease expectation of approximately -4%. Confidence factors: renewal strength visible through September, 95.7% current occupancy, exposure 10bps better YoY, declining recession probability, strong absorption, and easier YoY comps (cumulative new lease rates down ~8% in Q3 and ~15% in Q4 of prior two years).

Brad emphasized continued commitment to Sunbelt high-demand region, investing in both large and mid-tier markets. Recent development yields 6-6.5%. Kansas City stabilized acquisition in high 5s NOI yield, combined with Phase 2 development expands to approximately 6.3%. Direct with specific yield numbers.

Tim: Urban/suburban performance converging after suburban outperformance during supply surge. Urban has more upside as supply declines since it received more of the new deliveries. Atlanta still seeing better suburban performance. Direct.

Brad: Pre-purchase developments have construction cost guarantees from partners. In-house developments ~95% locked in at construction start. No tariff impact to date. GCs actually offering better pricing due to reduced starts. Tim: Redevelopment appliances locked in through next year, 25% of cost. No pressure this year. Direct.

Lisa drew on 30-year tenure: only two same-property NOI declines ever (GFC and COVID). Neighborhood center format is defensive, necessity, value, convenience. Referenced 1998 mini-recession and 2001 tech bubble where Regency 'chose not to participate' and grew through.

Mike provided the split: 2/3 ground-up, 1/3 redevelopment. Nick added that 75% of 2025 starts were ground-up, expects ~75% ground-up going forward. Visibility to $1B in starts over next 3 years.

Nick noted $800M started in 3 years vs original $1B/5-year target. In-process now tilted toward ground-up, expects continued shift in that direction.

Nick described cap rates in low 5s to low 6s range with stability over recent quarters. Emphasized development-first strategy with acquisitions additive.

Risoleo declined to specify preferred use for remaining proceeds. No immediate pressure to deploy, will evaluate based on how market, operating performance, and acquisition market evolve through the year.

Ghosh provided specific Maui group pacing: 67K room nights on books for 2026 vs 55K prior year and 73K in 2019 (92% recovered). EBITDA range for 2026 described as wide between $110M and the $160M peak target. Very encouraged by group pace at attractive rates.

Joe detailed: main-and-main acquisitions mid-4s cap, older/challenged up to 5s, development mid-to-low 6s. LaSalle deal expected by July.

Joe confirmed shift to opportunistic mode: DPE recycling, development starts make sense with supply down, JV growth, funded by dispositions.