Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: You noted a blended cap rate for $1 billion under contract and negotiation of just under 7%, I believe. Is that in line with your initial expectations for these assets? Or has interest been better than expected.
A: David Lukes, President and CEO of Site Centers Corp, responded that the pricing has been a little stronger than expected six months ago, indicating a positive market response.
Q: How should we think of the pacing of dispositions ahead of October first?
A: David Lukes explained that the confidence level in the buyers is pretty high, suggesting a decent pipeline for the next few months, but an increase in the pipeline is unlikely.
Q: Last quarter you mentioned there might be a slowing in the pace of convenience acquisitions. Should we assume a few per quarter heading up to the spin?
A: David Lukes mentioned that while the focus has been more on dispositions due to higher demand, a couple of acquisitions per quarter leading into the spin is likely appropriate.
Q: Have you seen or had any shifting conversations with people who you thought you're going to get under contract or under LOI given any issues in the debt markets?
A: David Lukes, President and CEO, noted that the impact of capital markets volatility on cap rates has been pretty muted to date, with a significant amount of demand still present.
Q: What will SITE look like on October second post-spin, and who will be running SITE and Curb?
A: David Lukes indicated that some executives will have dedicated roles and some dual roles, with specifics to be announced closer to the spin date.
Q: Can you comment on whether there is a shift in the interest level for retail centers from new private equity and institutional investors?
A: David Lukes observed a surprising depth of demand from institutional investors and private wealth, particularly from local and regional families, which has been active in open-air shopping centers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
