Paulina Rojas

Palmer gave the three-part JV framework and noted Regency does not currently need capital access, but did not engage the fee income versus partial ownership complexity tradeoff directly.

Mike acknowledged recent track record of outperformance but noted internal growth levers are narrower now, commenced occupancy upside more limited. ULI, acquisitions (not in guidance), and continued SNO pipeline compression could drive upside.

Lisa traced the evolution from post-GFC expansion to retail apocalypse fears to post-COVID physical-store renaissance. Current demand uniquely strong due to limited supply tailwinds.

Lisa said no strategic geographic rebalancing planned. Acquisitions are driven by individual asset quality and trade area, not market exposure targets.

Nick clarified the yield spread is for risk-adjusted return, not for sale. Grocery partnerships remain the primary development driver.

Lisa provided comprehensive response citing resilient trade areas, necessity-based tenant mix, and historical ability to grow through economic cycles.

Asked what characteristic most often disqualifies an otherwise strong center. Management said the absence of embedded growth from remerchandising or redevelopment is the key factor, showing up as a higher cap rate.

Acquisition strategy geographic constraints and market-agnostic approach

CFO framed it as continuation not turning point: harvesting gains in mature assets and redeploying into higher-growth raw material. Same business model applied to different land with same quality characteristics.

CEO said competition is lighter for large dominant centers in non-institutional markets vs coastal grocery-anchored centers. Not competing against bid sheets of 15-20 bidders.

CEO praised the deal structure and said it validates mixed-use integration value, reinforcing his view that FRT mixed-use assets trade below private market value. Didn't know exact cap rate or IRR.

Ross said cap rates remain very competitive with convergence across formats and geographies, including tighter pricing in secondary markets and unanchored strip.

Flynn cited 15% multiple discount to sector, NAV discount, and Blackstone's high conviction in open-air grocery. Referenced ROIC/Alexander & Baldwin/Whitestone privatizations. Over 5% then 6% organic earnings growth without cost of capital advantage. Now 86% grocery anchored, up from lower mix historically.

Northtown Plaza: Weingarten legacy land adding 23K sq ft Sprouts with ground-leased outparcels. Gordon Plaza: demolishing defunct center for Home Depot, ALDI, and Chase with construction passed to tenants.

Flynn argued very few locations have multiple boxes coming available in the same submarket, so pricing power is unaffected. Record occupancy and historically low vacancy rates support rent growth.