Greetings and welcome to Bricksmore Property Group's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Daisy Slater. Thank you. You may begin.

Later, and thank you all for joining Bricksmore's second quarter conference call. With me on the call today are Jim Taylor, Chief Executive Officer, Brian Finnegan, President and Chief Operating Officer, and Steve Gallagher, Executive Vice President and Chief Financial Officer. Mark Horgan, Executive Vice President and Chief Investment Officer, will also be available for Q&A. Before we begin, let me remind everyone that some of our comments today may contain forward-looking statements that are based on certain assumptions and are subject to inherent risks and uncertainties as described in our SEC filings, and actual future results may differ materially. We assume no obligation to update any forward-looking statements. Also, we will refer today to certain further information regarding a use of these measures and reconciliations of these measures to our GAAP results are available in the earnings release and supplemental disclosure on the Investor Relations portion of our website. Given the number of participants on the call, we kindly ask that you limit your questions to one per person. If you have additional questions, please re-queue. At this time, it's my pleasure to introduce Jim Taylor.

Thank you, Stacey, and good morning, everyone. I couldn't be more pleased with more teams' outstanding execution of our value-add plan, execution that drives our improved outlook for $25 and provides excellent visibility on outperformance in $26 and beyond. Brian and Steve will review our results and outlook in more detail, but I'd like to highlight a few points that underscore, one, our unique visibility on growth, two, the fundamental and accelerating transformation of our, three, the opportunities for future growth that we continue to unlock through disciplined capital recycling. As always, it begins with leasing, where we once again drove robust volumes and spreads, leveraging broad tenant demand to be in our centers and capitalizing on recent tenant disruption to bring in better, more relevant anchor tenants that in turn, as we all know, drive out performance in traffic and rate for the balance of the shopping center. In fact, this quarter, we not only drove our average in-place ABR to a new record, we achieved a record high per square foot rate for new and renewal leases. Our robust leasing activity drove our signed but not commenced pipeline to 67 million, or 7% of total ABR, despite commencing 15 million again of new ABR in the quarter. This represents eight quarters of average commencements of 15 million, while the forward pipeline has consistently exceeded 60 million. As Steve will detail in his remarks, this consistent delivery of new rents is part of what's driving expected 4% this year, despite the drag from recent tenants. Speaking of value-add, our reinvestment pipeline continues to deliver, and we now expect to be at the upper end of our annual goal of $150 to $200 million of project deliveries at compelling returns. These projects include the Davis Collection, a Trader Joe's and Nordstrom Rack Anchored Center on the doorstep of UC Davis. Farm Plaza, a Whole Foods anchored center just outside of Philadelphia, and Wynwood Village, a Target anchored center just south. Where we have delivered reinvestment projects, we also continue to benefit from the flywheel effect in growing occupancy and rate on the balance of the shopping centers impacted, reflected in the records we have set in small shop occupancy. Importantly, in addition to the $370 million of accretive projects we have underway, way. We have a future pipeline of identified projects of several hundred million with assets we own and control that provide visibility on growth. Finally, we continue to opportunistically recycle capital, harvesting lower growth assets and redeploying the proceeds into assets where we see substantial upside through our leasing, operations, and reinvestment platform. We are particularly pleased to announce the acquisition of La Centera, an iconic grocery-anchored lifestyle asset that we've long targeted in the Houston MSA, our third largest. With great tenants such as Trader Joe's, Athleta, Ikea, Lovesack, Lululemon, Sofality Dining and Service tenants, La Centera drives over 5 million visits annually, putting it in the top decile nationally of comparable lifestyle centers. Priced well below replacement costs, La Centera offers us tremendous the NSF side as we capitalize on below-market rents expiring over the near term. In sum, our value-added plan continues to fire on all cylinders. With that, I'll turn the call over to Brian and Steve for a more detailed discussion of our results.

Thanks, Jim, and good morning, everyone. Our team delivered another quarter of outstanding results, once again validating the demand to be part of the Bricksmore portfolio and the momentum of our value-added plan. Leasing activities stood out, with recently recaptured space not only resolved at speed, but upgraded with stronger, traffic-driving tenants at significantly higher rents. The message is clear. Top-tier retailers want to grow with us. This quarter, we executed 1.7 million square feet of new and renewal leases at a blended cash spread of 24%, including over 900,000 square feet of new leases at an impressive 44% spread. That new lease activity generated the highest quarterly annual base rent in our company's history. Much of this record performance came from backfilling space. Party City already resolved 80% of those spaces. 70 basis point drag from bankruptcy growth to 90%. Small shop leasing continues to be a strength, reaching a new portfolio high of 91.2%, which, as Jim highlighted, more upside as we deliver accretive reinvestments. Improvement in our intrinsic lease terms, setting a record for new lease annual rent growth at 2.8%, while our disciplined approach in eliminating burdensome CAM provisions and deploying fixed CAM where appropriate has continued to improve our recovery rate. number of tenants joining our portfolio, retailers that are expanding with purpose and conviction. This quarter, among the tenants we added were new locations with Sprouts Farmers Market, Nordstrom Rack, Ross Dress for Less, Burlington Stores, Barnes & Noble, Chick-fil-A, Dave's Hot Chicken, and PNC Bank. As Jim mentioned, and as highlighted by our La Centera acquisition in Houston, we're also seeing a clear trend as best-in-class, mall-native, and elevated brands are moving into high-traffic, grocery-anchored centers. Thanks to our proactive portfolio transformation, we're capturing this momentum, adding first-to-portfolio deals with Sephora, LoveSack, and J. Jill during the quarter with several more exciting names in our forward pipeline. Looking ahead to the second half of 2025, we're confident in the trajectory of our business. Our traffic and collection trends are strong. The consumer remains resilient, and our forward leasing pipeline is larger than it was at this time last year, with credit-worthy tenants focused on growing store count. We are exceptionally well-positioned to capitalize on this environment and deliver compelling growth in 2025 and beyond. That's a direct result of the outstanding execution by the entire Bricksmore team, and we're grateful for their continued efforts. With that, I'll turn the call over to Steve for a deeper dive into our financial results.

Steve? Thanks, Brian. As both Jim and Jim continue to deliver consistent, base rent growth contributed 360 basis as the momentum from the snow commencements at higher rents continues to out-of-return billed occupancy. Anseling us lives on tenants and also negotiated a revised agreement allows us to further capitalize on the growth and traffic at that center. As expected, net expense reimbursements detracted 110 basis points from same property NOI growth due to the prior year benefit related to tax assessments in Cook County, Illinois. As Brian noted, we signed a record high $21 million of new ABR in the quarter and ended the second quarter with a 450 basis point spread between leased and billed occupancy. Our signed but not yet commence pool totaled $67 million, which includes $59 million of net new rent. We expect to commence $41 million through the remainder of the year and now expect total commencements of $69 million in 2025, as compared to the $53 million we expected at the end of last year, which will provide a tailwind to growth in 2026. From a balance sheet perspective, at June 30th, we had $1.4 billion of available liquidity, no remaining debt maturities until June 2026, and our debt to EBITDA on a current quarter annualized basis was 5.5 times, providing us flexibility as we execute on our business plan. In terms of our forward outlook, we have updated our same property NOI growth guidance to 3.9 to 4.3 guidance to property NOI are driven by the increase in same property NOI as well as increased lease settlement and other income as we continue to operate the portfolio, capitalizing on opportunities in this strong leasing environment to proactively backfill the space. We have consistently said rent basis matters and we're at the top of the peer group while also reducing exposure to our at-risk tenants and providing unparalleled visibility into growth in 20 years. And with that, I'll turn the call over to the operator for Q&A.

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. As a reminder, we ask that you please limit to one question and re-queue if necessary. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Todd Thomas with KeyBank Capital Markets. Please proceed with your question.

Hi, thanks. Good morning. I wanted to ask about leasing in the quarter. New lease volume in particular was really strong. And I'm wondering, Brian, do you see a path to getting the portfolio's lease rate back to 95% and what's the timeframe for that? And then with this year's bankruptcies and known move outs largely behind you at this point, I was just wondering if you could comment on this year's tenant disruption and drag relative to the forward outlook for tenant risk and vacate activity and the remainder of 25 and sort of an early view into 26.

Hey, Todd, it's Jim. Before we answer that question, I just really wanted to comment at the start of the question that our hearts and prayers go out to those families and loved ones.

Yeah, and thanks, Todd. We had talked about coming out of ICSE, just what we were hearing from our retailers in terms of continuing to be folks for retailers was constructive and positive in their business, and we really saw it come through, which we're seeing. We're continuing to see better operators there. So it was pretty broad-based, and particularly to your pull-ups on space that we recently recaptured. And we're really proud of how the team has gotten after that and filled that with much better tenants. I think to your second part of your question, as Steve touched on in his remarks, this has given us the opportunity to improve what has already been the best that this portfolio has ever had. So really on the other side of this, that watch list is a lot. There's always categories that we're watching. you think of drugstores, they're certainly closing some locations. It's a very small part of what we do, less than 1% of our ABR. You think of theaters, there's some good trends there, but also a very small part of what we do as well. So we feel pretty confident on the other side of this, and from a trajectory standpoint, remain really encouraged by what we're seeing in the leasing pipeline.

Steve, was there an amount of rent collected in the quarter that's worth considering as we think about 3Q that will create a little bit of drag or do you anticipate an inflection in economic occupancy and ABR growth moving into the back half of the year?

Yeah, I mean, if you just think about the rent, you're talking on the bankrupt spaces, obviously you would have had a stub period for some of the Joanne locations. And then, you know, going forward, we will be getting back a couple of at home. But I think more importantly, and what Brian highlighted was getting the rent commenced on those backfills within the third quarter and into the fourth quarter, we'll start to accelerate that base rent growth.

Yeah, and Todd, I would just remark, we're particularly pleased to be at a place where we're growing better than 4%, despite as implied, the rent commence.

Thank you.

Our next question comes from Michael Goldsmith with UBS.

Please proceed with your question.

Good morning. Thanks a lot for taking my question. I'm laughing, Tara. Can you talk about the opportunity here? Seemingly, you can benefit from scale in the Houston market and it brings you closer to some of the growth tenants that you're working with across the portfolio. Presumably, there's some leases that are up for maturity for the first time where you can sprinkle some Bricks for Magic and re-merchandise. So what are the benefits from this property? And if you can provide the cap rate, that would be helpful.

Sure. Well, I think you've got the sales, for example, the in-place occupancy here at certain Thank you very much.

Good luck in the back half.

Our next question comes from Samir Canal with Bank of America. Please proceed with your question.

Good morning, everybody. I guess my question is around the same story in OI growth in the second quarter, which was a very strong number. But can you elaborate the other revenue line there, which did pick up from a year ago? So what's kind of driving that? Thanks.

To renegotiate from an operations perspective of how our team just takes advantage of driving revenue throughout the asset. And Steve mentioned parking. We have a great fee generation business, whether it's EV charging, solar. That's been a growth initiative for us. We've got a great focus.

And as Steve mentioned, as it relates to that point garage deal, that is going to be as we commence $15 million quarterly and continue to keep that snow pipeline. It gives us a high degree of visibility to me, or not only into growth, even better growth.

Got it. Thanks a lot, guys.

Our next question comes from Greg McGinnis with Scotiabank. Please proceed with your question.

Hey, good morning. Just looking at the bad debt expense, looks like you're tracking at the low end of your guidance range. Is there anything that, you know, is standing out as potential headwinds for the back half, or is this just some conservatism on your part for maintaining that range?

Yeah, I mean, I think Brian hit on his comments. You know, we continue to be really pleased with the underlying credit quality of the portfolio. Obviously, in the first half of the year, there was a little bit more tenant disruption and some of that pre-petition debt or bad debt is sitting within that amount. And then there is always sort of the normal core seasonality to when we look to the back half of the year, we continue to be really, you know, no real concern.

Okay, thank you. And then on the leasing demand, I'm just curious how that's trended through the year, whether you've seen any sort of changes from, you know, the April tariff announcement through today and the types of tenants that you're finding to backfill. some of these anchor spaces and what you expect to be filling with what we were seeing kind of real time because we thought it was prudent and then we came out of ICSC conversations and what's been interesting over now turned into LOIs and leases and you can see that come through

in the quarter more GLA than we've leased in the last two and a half years and Steve had as a company and despite all of that volume we still have more in the pipeline today than we did a year ago. So we remain really encouraged. Our team is focused on, you can see that we're taking, that we've taken back here over the last few months. And then I touched on a number of the categories earlier, but I would add kind of to Mark's point, we are seeing this trend accelerate of more elevated brands. It's not just at Alas and Terra, right? We've seen it in suburban Philadelphia and Marco Island. It's recently in Davis, California. And whether that's maybe lifestyle tenants that have been performing at grocery anchored centers or higher quality food and beverage that we continue to add to the portfolio, opening our first locations with Tate Bakery and Mendocino Farms and Urban Plates. So it's been fairly broad based. And with all the work that our team's done across the portfolio, we're just attracting a better caliber of tenant today. And it's something that we're really excited about.

All right.

Thanks, Brian. you got it. Thanks.

As a reminder, we ask that you please limit to one question and recue if necessary. Our next question comes from Craig Mailman with Citi. Please proceed with your question.

Good morning. I just want to focus a little bit here on the cadence of earnings. I think you guys are run rating to at least hit the midpoint of guidance for the back half of the year, could you just talk about some of the puts and takes as we think about kind of the first half run rate into the second half, and then just maybe give some additional color on the contribution of La Centera and maybe how you guys think about financing that kind of more permanently with dispositions or other financing sources?

Yeah, Craig, we were really pleased on how we performed. Obviously, lease settlement income was a little higher than our historical run rate there. And, you know, I think that should, you know, as we...

What should we think about on the kind of the net spread on that investment from a GAAP perspective? Sure.

It's basically a new position to be able to create a low market round.

Great. Thank you. Our next question comes from Michael Griffin with Evercore.

Please proceed with your question.

Great. Thanks. Appreciate the commentary so far. Just wondering if you could give us a sense, you know, in your conversation with retailers, you know, obviously we've seen some trade deals come to fruition recently, but has there been kind of this understanding of, hey, we're still burning off the inventory that we brought in sort of pre-tariff announcements? Have they thought, oh, you know, we're going to absorb some of this tariff cost versus pass it on to the consumer? I just want to get a sense as we look to the back half of the year, you know, could we see some pressure on retailer margins as it seems like this tariff scenario of 15%, whatever you want to call it, starts to really materialize.

Yeah, let me start the answer here. You know, one of the things that we've been really encouraged by with the retailers is their commitment to the store. They're really making a long-term decision by entering into a tent and their commitment.

Yeah, I would just add, I mean, the commentary that you heard from national retailers, in terms of how they're navigating tariffs, suppliers, or also the commentary around how the... Last thing I'd mention, you saw it again last week, another very active auction where retailers are bidding for space, where there's no downtime, all their own costs. It kind of gives you a window into that demand environment, into how tight the supply environment is as well. Constructive, we're keeping a very close eye on it. Could there be some impacts down the line? Sure, but from what we're seeing to date, we're very...

Great. Thanks so much.

Our next question comes from Cooper Clark with Wells Fargo. Please proceed with your question.

Hi, thank you for taking the question. Following the acquisition in Q3, could you talk about how the current acquisition pipeline looks moving forward? Wondering if there's an appetite for more transaction activity in the back half of the year, and also what type of buyers you're competing with on deals you're currently underwriting?

Work you should expect.

Our next question comes from Alexander Goldfarb with Piper Sandler.

Please proceed with your question.

Hey, good morning. Good morning down there. So my one question is on the S&O, the aggregate of the S&O that's coming online with the 200 basis points of drag that you enter the year, meaning the known move outs that you started the year with and the known bankruptcies and your pace of leasing and getting this $40 million of S&O open this year, Stacey, I'm not asking for 26 guidance, but still when you hear your commentary and all these good things happening, why should we not think the back half of next year is going to show a really strong ramp? I'm trying to understand what are the offsets that we should think about that would sort of limit the upside benefit of all this stuff that you're talking about. I mean, presumably, interest rates will come down, not up. So I'm just trying to understand what contains next year from showing sharp acceleration in the back half.

Well, we're not prepared to give guidance at this, given the stack. It's not only what we have in the sun. It gives us a lot of – it continues to work. It's an all-weather strategy that provides visibility on growth. And, of course, the deducts from that growth, as we look out, will be any additional tenant disruption. But we like how the portfolio is positioned from a credit standpoint.

Our next question comes from Juan Sanabria with BMO Capital Markets.

Please proceed with your question.

Good morning. Thanks for the time. You talked a little bit in the prepared remarks about opportunities on the CAM side to get more favorable setups in the leases. Just curious on how we should think about that impacting margins on a go-forward basis, kind of all else equal.

Yeah, again, it's been something that we've been focused on really throughout incremental rent. I think you can see it comes straight. That's ahead of where build occupancy sits. It's something that our team has conversation.

It's something we're going to be continuing to find opportunities to harvest.

Our next question comes from Handel saying, just with Mizuho Securities.

Please proceed with your question. hey there uh good morning so uh i guess my question somewhat dovetails on the last comment you made jim about finding these great opportunities in the portfolio um you guys have done lots of great things uh lately strong stats some all-time highs in abr small shops spreads uh and it looks as though you have some pretty sustainable tailwinds uh into next year with a lower occupancy and lower rents um but your multiple still sits well below the pure set So I guess I'm curious, you know, why you think that is and what you guys are focused on to drive down that gap versus your peers in trade closer to the peer set or maybe even a premium at some point.

Well, we would agree very much that our multiple doesn't reflect appropriately the upside in growth that we're going to continue to deliver. And our plan on this side is to continue to deliver that growth and outperform and chip away at that relative multiple. I think it presents, frankly, the investor a compelling opportunity from a total return standpoint that we have a business plan that's not predicated upon external growth, that's not predicated upon the pricing of our currency, but much more predicated on the continued ability to fund accretive growth through internally generated cash flow. That's why I often say it's an all-weather business plan. And I'm proud of the fact that we're delivering growth where I'm also excited about what continues to happen to the composition of this portfolio as we execute our value-added strategy. We're confident in our ability to continue to deliver, and I think as we do that multiple differences.

Our next question comes from Caitlin Burroughs with Goldman Sachs. Please proceed with your questions.

Hi. Good morning, everyone. So it sounds like leasing and pricing remain really encouraging. I was wondering if you could go through how the year so far is turning out versus your expectations, any additional color you can give on how you set guidance? Do you think of it as being conservative versus realistic? And what's making the previous high end of same-star NOI growth no longer attainable?

Yeah, thanks, Caitlin. I think we continue to be really impressed by the underlying portfolio. I think you hit on a lot of the leasing items that Brian went through. or some of my comments, our ability to remove our midpoint.

Our next question comes from Flores Van Dykem with Ladenburg-Solomon.

Please proceed with your question.

Good morning, Flores.

Hey, Jim, how are you? So my question for you guys is regarding shop occupancy. Again, your most valuable space, presumably, in all your centers. It's, I think, at an all-time high right now, 91.2. But my question is, you know, and I think this is sort of what was alluded to in one of the previous questions, where can it go to? And maybe if you can talk about what your shop occupancy is on all the assets that you've actually redeveloped, presumably that's higher. And then the second question, or the related question is, what percentage of your S&O pipeline represents shop space?

And I'll let Steve add additional color, but one of the things we're particularly encouraged about is not only that we've reached a record in terms of small shop occupancy, but we've got great visibility in more than a couple hundred bases, particularly as we deliver our in-process redevelopments, which can drag that as we bring in the new anchors and then obviously lease off the success of the anchors. So it's an important lever for our look ahead, and we're very excited, as Brian was talking about, in terms of the types of best-in-class tenants that are traffic drivers themselves. And tremendous opportunity and visibility on being able to continue to accrete that occupancy percentage. As we often say, we don't manage the portfolio for occupancy, but rather for growth, which is part of why our in-process redevelopment pipeline drags that number a bit. But in my mind, it just provides us tremendous visibility on how we'll continue.

And if I were to, you know, the first part of my question, which is the occupancy in shop space on the assets that are, you know, redeveloped and stabilized, how much higher is that than your average today in your portfolio?

Our next question comes from Keebin Kim with Truist Securities. Please proceed with your question.

Thank you. Can you guys provide a progress update on the releasing efforts on the Big Loss and Joanne's activity?

Yeah, sure, Kevin. Like I said earlier, we've been very pleased with the back half of this year, but you start to see it come online.

And just broadly speaking, when you think about the potential basket of other retailers that might be a little bit challenged, whether that be like a Michael's, Kohl's, or some pet stores, when you look at that collective basket of troubled retailers versus what you've already gone through this past year does it feel better worse or the same going forward it actually feels much better and that's the point steve was really trying to underscore in his remarks is the fact that we've worked our way through some of the more significant weaker credits in an environment that's been strong from a leasing perspective and importantly with the business plan, we continue to prove that it's an opportunity.

And we're proud of the fact, again, that we're growing better than Ford because we look forward to disruption, of course, but we like how the port works.

Thank you.

Our next question comes from Mike Muller with J.P. Morgan. Please proceed with your question.

Yeah. Hi. No, Lasintera is a grocery anchored center with the Trader Joe's. But if Trader Joe's wasn't there, would you have had the same interest in the property? And do you think pricing would have been materially different if so?

Look, it's a great question. I'm not necessarily just about having a growth flexibility.

Okay, thanks.

Our next question comes from Linda Tsai with Jeffrey's Group. Please proceed with your question.

Hi, good morning. On the Les Sentara acquisition, a two-parter on your strategy. With five million visits a year, how much higher is the annual traffic statistics in the HHI demos versus the rest of the Bricksmore portfolio? And then just in terms of buying in a master plan community, are there any nuances to think about why disasters would be more attractive relative to a center that is not in the master plan community?

Well, I can start with, and we had tremendous visibility, as Brian can give some color.

Yeah, I mean, somebody mentioned earlier, our team has got a great portfolio in Houston. We've already, and we had some of the folks team as well that does fit into what we do from a growth perspective. These are tenants, the portfolio, like I mentioned, Sephora and others, some great food and beverage operators there. And just overall, we're really excited about it and really proud of how our team's gotten after it out of the gate.

With great existing traffic, as you highlight, but we think the pro forma traffic as we bring in these better tenants to replace some of the first-generation lifestyle tenants will continue to drive that traffic and continue to drive the pro forma.

Great. Thanks for the color.

Our next question comes from Paulina Rojas with Green Street Advisors. Please proceed with your question.

Good morning. A follow-up to a prior question. You mentioned that cap rates for grocery-anchored centers are compressing. Can you clarify the timing around that comment? Specifically, have you seen pricing continue to become more competitive at the margin over the last two or three months? Or were you really referring to a broader trend over a longer period? Yeah, it does.

Our next question comes from Cooper Clark with Wells Fargo. Please proceed with your question.

Great. Thank you for taking the follow-up. The incremental NOI yield from the redev pipeline and process has remained strong at 10%. As you talk about the future redevelopment projects you spoke to earlier on the call, could you walk through some of the puts and takes as we think about a strong leasing environment coupled with some continued uncertainty from tariffs? Wondering if we could see yields move north of 10% moving forward if the current leasing environment remains steady?

I think you highlighted a couple of the drivers. Obviously, you've got demand, and that's robust. And we continue to surprise even ourselves in terms of the rents that we're able to achieve. On the other side of that, you could have cost and inflationary pressures impacting those returns. So, as we look out, in particular, look at the opportunities that we've identified in the shadow pipeline, we're reasonably confident about our ability to continue to deliver that incremental return in the high, single, low, double digits, basically in line with what you said.

Great.

Thank you.

As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. One moment, please, while we poll for questions. Our next question comes from Michael Griffith with Evercore ISI. Please proceed with your question.

Great. Thanks for taking the follow-up. Just a clarification question on the Loss and Terra property. I believe it's in a mixed-use development with an office and resi component. Did you just buy the retail portion, or did you also buy the office and resi as well?

Yeah, it is in a mixed-use environment. We do not own the multifamily.

It's been well- Our next question comes from Caitlin Burroughs with Goldman Sachs. Please proceed with your question.

I feel like this has been talked about a few times, so sorry. But just on the watch list, it sounds like you've said a few times that it's smaller than it was historically. I was wondering if there was any way you could quantify, like, today it's X amount of ABR, and last year over the X amount of years, historically, it was some other level?

I think it's important. We use the watch list as a tool, right? We look at it not just with near-term credit. We look at the names we've grown, how Whole Foods just got the call on the other side of this. You got it.

Our next question comes from Paulina Rojas with Green Street Advisors. Please proceed with your question.

Hi. Again, a very specific follow-up side of La Ventura. Could you please provide some numbers around it? Where are current in-place rents and what do you think the market rents are? percentage. And is the type of space comparable there in that mix that you are referencing?

Interestingly, the tenants that are performing that we want there, they're driving a ton of traffic, are doing well, the asset. And we've been pleased with what we've been seeing just a few weeks out of the gate in terms of we do feel that there's a tremendous...

Thank you.

Our next question comes from Alexander Goldfarb with Piper Sandler. Please proceed with your question.

Hey, thank you for the follow-up. Just going back to my question, you know, as we look on page 30 of the SUP and, you know, you have 41 million of S&O that's going to commence this year, 21 million next year, and presumably, you know, that will, those numbers in the outer years will grow as you guys do more leasing. So far, you haven't described anything that would say these aren't fully additive. And I guess that's what I'm trying to get at is in shopping centers, we often get excited and then have to revise down numbers. And I'm just trying to understand if there are any negatives to us adding fully like the 41 million this year, the 21 million next year, in addition to your normal course, you know, NOI growth.

But the importance, not just for this year, but as you point out, into next year.

So what is normal course move-outs, Jim, that we should be thinking about? Is it $10 million, $20 million? I'm just trying to get a sense.

Alex, I mean, that shifts in a given year relative to what the expiration...

Okay. Thank you.

We have reached the end of the question and answer session. I'd now like to turn the call back over to Stacey Slater for closing comments.

Thanks, everyone.

Enjoy the rest of your summer.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.