Greetings. Welcome to Bricksmore Property Group, Inc. 3rd 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. Please note this conference is being recorded. I will now turn the conference over to Stacey Slater, Senior Vice President, Investor Relations and Capital Markets. Thank you. You may begin.

Thank you, Operator, and thank you all for joining Bricksmore's third quarter conference call. With me on the call today are Brian Finnegan, interim CEO and the company's president and chief operating officer, and Steve Gallagher, 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 non-GAAP financial measures. Further information regarding our 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. Before turning the call to Brian, please note that out of respect for Jim's privacy, we will not be addressing any questions regarding his medical leave, and we refer you to the company's October 16th press release. We do ask that you join our Brixmar family in wishing Jim good health. 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 Brian Finnegan.

Thanks, Stacey, and good morning, everyone. I first want to say on behalf of the entire Bricksmore team, we care about him deeply and are grateful for the well wishes and support for him that we have received from across the industry. The team he built remains focused and continues to deliver outstanding. Results begin with leasing, instead of 18%. New leases during the quarter were signed at a record rate of $25.85 per square foot, as our team continues to capitalize on healthy demand to be in our well-located shopping center. activity in both anchors and small shops. Occupancy hitting another record at 91.4% with room to run as we deliver our reinvestment progress on backfilling the spaces recaptured over the past year with new leases executed during the quarter on those spaces with the likes of Mark Furniture and Cavender's Boot City. Thanks to the continued strength in leasing, the signed but not yet commenced pipeline remains above $60 million despite commencing a record $22 million of ABR during the quarter, which Steve will comment on further. New tenant openings are among the most exciting aspects of the farmer's market in Knoxville, Tennessee. Trader Joe's in suburban Denver, local redevelopments, California, and Block 59 in suburban yield of 11%. Plaza in Long Island, New York, Chick-fil-A out parcel, and reconfigured existing inline space for ShopRite Supermarket. This stabilized the first phase of Barn Plaza in suburban Philadelphia, where earlier this year we opened Bucks County's first new Whole Foods Market. Thanks to the successful execution of the initial phase of that project by our North Region team, we're adding a second phase into our active pipeline this quarter, which includes first the portfolio new leases with Pottery Barn. Williams-Sonoma is a portfolio where our reinvestment program is enabling us to attract a much higher caliber of tenant than we have historically. Bucks continues to grow as we announced our second new project of the year in Hilton Head, South Carolina, with several more to follow in the future pipeline. Our percentage of ABR from Grocery Anchored Centers now sits at 82%, and as we've seen a 35% increase in year-over-year traffic when we add a grocer, we're thrilled with the opportunities to add more grocers to the portfolio as we execute our reinvestment program. Switching to transactions, as we discussed at length on our second quarter call, we closed on the $223 million acquisition of La Centera at Cinco Ranch in suburban Houston and are pleased with our team's progress out of the gate with seven new leases either signed or in processional underwriting. Mark and team continue to raise attractive capital as we exited eight assets where we had maximized value since our last earnings call, bringing our total disposition volume year-to-date to $148 million. We continue to evaluate opportunities to put our expect to be net acquirers at year-end. Approximately $190 million of value-added acquisitions under control and look forward to sharing more about these exciting acquisitions soon. Our team continues to execute on all fronts, attracting great tenants in a supply-constrained environment at the highest rents we've ever achieved. Our redevelopment platform continues to deliver low-risk, compelling returns for future growth. And on the transaction front, we're well-positioned to continue to recycle capital out of low-growth assets into those where we see the opportunity to create value. Here's more, team, for your continued focus and effort as we continue to create value for our stakeholders. Over to Steve for a more detailed review of our financial results.

Nareed FFO was 50% driven by St. Property NOI growth of the base rent growth decreased to a 270 basis. We expect base rent growth to accelerate into 2026, as additionally, revenues deemed uncollectible contributed 80 basis points, and we trend to the lower end of our historical pricing on the strong lead, but not yet commenced pipeline 2025 4.85% issuance, which pre-funded our June 2026. One note on the capital markets front, our SEC shelf registration state shelf registration. As part of that process, we'll also be reviewing our existing AP extending our buyback program for another three years, which together will contort the long term. We are pleased to announce a 7% increase in our annual dividend to a rate of $1.23. The revised dividend, which approximates taxable income, allows the company to retain as much. In terms of our forward outlook, we have updated our FFO guidance and affirmed our same property NOI range of 3.5%. Our increased FFO expectations is driven by higher-than-expected lease settlement income in the foractively recapture and accretively backfill space. As such, we expect lease settlement income to be a headwind to 2026 FFO. We are excited about how we are positioned heading into next year with significant tailwinds from 2025 rent commencements, a strong snow pipeline, and remember to the operator.

Thank you. If you would 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 would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions. Our first question is from Michael Goldsmith with UBS. Please proceed.

Good morning. Thanks a lot for taking my question. And Steve, question for you on the implied acceleration of the same-through NOI growth in the fourth quarter. Can you walk through kind of the contributing factors there? You know, is that a function of the snow pipeline being activated, what you've already done, what is due in the fourth quarter? And then also, can you just talk about the role of the comparisons in the acceleration and just the sustainability of that?

Sure. on the commencement front, too, is some of these larger redevelopments starting to come online, like Block 59 in Chicago, which I mentioned. We're also seeing the first of the boxes that we backfilled last year that we took back at the end of the year starting to come online as well, two Roth boxes that we opened last week. So everything that Steve said, again, gives us good visibility to the end of the year, but some anecdotes.

Thank you very much. Good luck in the fourth quarter.

Thanks, Michael.

Our next question is from Sneer Canal with Bank of America. Please proceed.

Thank you. I guess, Brian, in your opening remarks, you talked about shop occupancy hitting another record in the yields of state and there's more room to run. Maybe expand on those comments as we think about occupancy into next year.

Yeah, we've been pleased with the progress on the shop front, as I mentioned. But if you look at that future reinvestment pipeline, we're several hundred bases. I feel like we have several, and then you think about the nature of those projects in that future reinvestment pipeline, a great future pipeline that we have with Publix, think about Plano, Texas, which gives us real good visibility.

Thank you.

Our next question is from Craig Melman with Citigroup. Please proceed.

Hey, good morning, guys. Brian, you had mentioned some additional acquisitions that are in the pipeline. Could you just go through what the opportunity set looks like and, you know, where cap rates are trending and kind of are these going to be more like loss and terror that are longer term opportunities that maybe aren't initially accretive or are there some stabilized in there that can kind of boost FFO in the near term as well?

Craig, I'll hand this some more, but I would just say with not just a lot of that capital is actually seeking smaller, simple grocery anchor deals. And so what's interesting is that that's really allowing us the opportunity to be efficient when we capital recycle. And we're selling some assets where we see low-hold IRRs from our perspective, well below IRRs than we'd like to generate. We've got the ability to recycle that capital into assets like Los Antares where we see really strong growth and the ability to drive and really drive to the deals that we're buying. We really try to focus on the ones that were in the pipeline today to continue to grow, strong growth opportunities. where we're going to leverage our platform to drive strong cash flows through occupancy gain, through rent mark-to-market, and some redevelopment. I would say the ones that we're looking at today are not lifestyle centers. They're more traditional open-air retail centers that fit right into our platform. That's reusing a platform to drive an immediate increase in an anchor rent that's giving us better growth through the term of that anchor rent and increasing the going-in cap rate by about future acquisitions.

Our next question is from Michael Griffin with Evercore ISI. Please proceed.

Great, thanks. And first of all, my thought to Jim and his family wishing him a speedy recovery. Brian, maybe you could talk a little bit about how the leasing pipeline looks as we head into next year. I mean, are retailers still looking to expand and grow their business? You guys have done some pretty strong new leasing year to date. But just give us a sense of what those conversations are like, kind of caveating that while it seems like we've gotten some trade deals done, there is still this macro uncertainty as it relates to tariffs and the potential impact to retailers. Thank you.

Pipeline, the retailers who locations and where they have additional white space. If you listen to those second quarter calls, you saw, you heard some of the retailers that we continue to grow with. They've been able to navigate this with, as we think about our operators who continue to have 26. And interestingly, we have a full slate for New York ICSC coming up in a few weeks, those discussions will be primarily around 27, right? There's still deals that we're signing towards the end of the year that we're going to get open in late 26. Part of that focus, too, is 2027 pipeline. So we remain very encouraged. We continue to keep a close eye to see if there are any cracks in that. But to date, we're really not seeing it.

Great. Thanks so much.

Our next question is from Todd Thomas with KeyBank Capital Markets. Please proceed.

Hi, thanks. I wanted to go back to the same store growth and ask a bit about the building blocks for 26, if I could. You talked about the headwinds from bankruptcies and tenant disruptions for the year. I think you noted it was about 230 basis points last quarter. Any early thoughts about how we should think about that drag today as we look into 26, whether you expect that to alleviate or do you see a similar level of drag?

Yeah, I mean, as we sit here today, right, I think the one thing we've talked about a lot over the last couple of quarters is just the reduced exposure we have to average tenancy, right? When you look at our watch list today, even versus our peer, but especially compared to 5, 10 years, you all were worried about, as were we, big loss.

Thank you. Thanks, Todd.

Our next question is from Greg McGinnis with Scotiabank. Please proceed.

Hey, good morning. Brian, I just want to touch back on the tenant health commentary. You know, looking at the bad debt expense, guidance was maintained, and despite previously trending towards the low end, Q3 was up versus Q2. Could you just provide some insight on that increase? And then generally, more generally, how you're feeling about the range in the year.

Well, I'll let Steve hit the guidance piece, but just worries that we're keeping a close eye.

Okay, thank you.

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

Hey, good morning. And just echoing the speedy recovery thoughts for Jim. Mark, you know, the cap rates in the acquisition world have definitely come in, even Power Center. I know you guys really aren't looking at that, but even that's getting a strengthening bid. As you look at your opportunity set, do you sort of have a minimum threshold where you're like, we can't buy below X yield because the deals need to be accretive from day one? Just trying to understand, you know, with more focus on REITs delivering earnings growth, true, you know, true earnings cash flow growth. Do you find that you have a floor that you won't go below or how do you balance that given the increased competition for assets? communities in that asset.

So we're not going to pass up the ability to buy something like a Plaza Britain in the future. With that said, the assets are working on going in yields and growth.

We're funding that into assets. With everything Mark said, we feel that there are a lot of compelling opportunities out there for us today, despite the fact that it is.

We continue to mine out things like land parcels in this portfolio, which are not yielding any cash flow today. We're yielding native cash flow given the carry cost. We did that earlier this year. We have some in our pipeline today that, again, will provide us some really well-priced capital to put the work in the acquisitions market.

Thank you.

Thanks, Al.

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

Great. Thanks for taking the question. It looks like G&A came down in the quarter around $2 to $3 million. Curious what drove this and if $26 million is a good run rate moving forward or if it was driven by a more one-timing item.

Yeah, I mean, obviously not going to provide, did have a charge.

Great, thank you.

Thank you.

Our next question is from Juan Sanabria with BMO Capital Markets. Please proceed.

Hi, good morning and thoughts with Jim and his family. I just wanted to ask about the public's relationship you kind of noted at the top in your prepared remarks and what we could see going forward, any opportunities for some greenfield developments?

On the public's relationship line, our South region team has a longstanding relationship into the double-digit projects in terms of in place St. Pete with them, and we've got a long pipeline. The team in the South, as it relates to new development, our focus is on redevelopment. We've got several years of runway of future growth in that future reinvestment pipeline. As Mark touched on, he's adding additional opportunities to that as well. Never say never, because we do have great relationships with the likes of Publix, Kroger, HEB, I could go down the list, that we have a lot of, we've had a lot of good rapport, not just rapport with, but we've been able to execute with historically. So we'll continue to look at things, but generally that focus is going to be on redevelopment.

Our next question is from Handel St. Just with Mizuho Securities. Please proceed.

Hey there. Thanks for making my question. Best wishes to Jim. I wanted to build on the last question. It looks like the average yield for redevelopment projects ticked down a bit sequentially to 9% versus 10% last quarter. Is that a mixed issue? Are you starting to see the impact of tariffs or higher costs, and maybe this is a new level we should expect near term? And then some thoughts broadly, I guess, on minimum yield or hurdles in light of the lower debt costs. I'm curious if you're changing that at all in light of lower debt cost. Thanks.

Juan, I'm sorry, hand out in the quarter. As we look out in that future, but we're getting it back and we continue to be able to, including in those returns, we continue to see and very encouraged by what the nature of what those returns look like. We're not changing our thresholds, if anything, as we've done some of these larger projects. We want a higher pre-lease threshold from where we've been historically to limit our risk.

Thank you. Our next question is from Caitlin Burrows with Goldman Sachs. Please proceed.

Hi. Good morning, everyone. A big part of the Bricksmore story is your ability to, quarter after quarter, achieve large leasing spreads as you bring rents up to market rates. So I guess with Jim having become CEO almost 10 years ago, it would seem like a lot of this opportunity has been realized by now, but maybe that's not true. So could you give some detail on how you think about what portion of that upside, the outsized leasing spreads, has been realized, how much is left, and how long leasing spreads can continue in the mid-teens rate.

Trends in the portfolio, both with what we've been able to execute as well as what we see coming down the pike. So if you think about the quarter, we signed the highest rents we ever have in overall as well. Leasing pipeline, it sits at about 40% higher than our in-place rents today. And as we continue to reinvest in the portfolio, we expect to continue to drive rents higher. And we still have a low rent basis in terms of the spaces that we are taking back, and we're backfilling these boxes accretively. So we still see a long runway for future rent growth. You could see some fluctuation in a given quarter, but really pleased with what we're seeing from the team.

Thanks.

Thank you.

As a reminder, just star one if you would like to ask a question or a follow-up question. Our next question is from Floris Van Dykem with Ladenburg Salmon. Please proceed.

Thanks for taking my question. And, Jim, I hope you're enjoying the Cavaliers and your time off because the football season is a little bit special. We haven't had that in a couple of years. I wanted to ask about, you know, the recycling of capital. One of the unique elements that you guys had is selling, you know, stabilized, low-growth assets at, you know, attractive cap rates and reinvesting into your significant redevelopment activity. As I noticed, you haven't sold that much year to date. I think it's $190 million-ish or thereabouts, less than what you've acquired. Could you talk about the pipeline of dispositions and, you know, what the impact of that is going to be? Because you do have a significant redevelopment pipeline as well, you know, that is in the works and you're adding on to it.

Well, Flores, I'll really drive that ROIC for us over time.

And just to make sure, the cap rates on the dispos are broadly in line with what you're acquiring, except maybe the lifestyle center, but, you know, that it should be on a, you know, sort of a cap rate neutral basis, or is there a little bit of dilution involved there?

Yeah, our year-to-day cap rate, like it's been for many years, is in and around a seven, that the acquisition, so it depends on the mix of what we're selling. But importantly, we're really focused on that long-term hold IRR, and we think that growth, and we're seeing that through.

Thanks, guys.

Our next question is from Linda Zayet with Jeffries. Please proceed.

Hi. Thanks for taking my question. Can you comment on the yield for La Centera? And then, In terms of traditional open-air centers being in your acquisition pipeline, I'm just wondering why you highlighted that they are not lifestyle centers.

Well, I'll take the second part first, Linda. Sorry about that. And we did touch on La Centera a bit last quarter, but Mark has spent a little bit more time on that. I think what Mark was saying is we're looking for asset profiles. And if you look at that in terms of what we bought historically, it's been a mix. And so when Mark was comparing it to La Centera, these assets are very similar in that they're going to put our platform. Maybe Mark, I don't know if it's a little bit.

Yeah, I wouldn't really point to the comments we made. Thanks, Linda.

As a reminder to ask a question or a follow-up question, it is star one on your telephone keypad. Our next question is from Hong Zhang with J.P. Please proceed.

Yeah, hey. I guess your lease-to-occupied spread has gone down throughout this year, but still remains above historic levels. Just given the strong rent commencements you expect in 4Q and 2026, do you expect to be back to more historic levels by the end of 2026 going to 2027?

I'll take that. I would expect the pipeline remains elevated. We like what we're seeing from a demand perspective. It remains somewhat elevated, but it is exciting.

Thank you.

There are no further questions at this time. I would like to turn the floor back over to Stacy for closing remarks.

Thank you, guys, for all joining today.

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