RE:RE:RE:Looking good but a question Ya they got asked about the restaurants and gyms and if there was an option to move towards only grocery with less exposure to in the conference call. But groceries don't have turnover and you get these long term rent spreads between market prices and the lease contracts. So the smaller ships add volitility but turnover reduces rent spreads.
Jenny Ma, BMO Capital Markets Equity Research - Analyst [17] -------------------------------------------------------------------------------- Back end. Okay, that's helpful. With regard to the name change, I'm just wondering if you could share your thoughts on stand-alone grocery boxes versus grocery-anchored shopping centers. Is that something that you've explored? Or is there an opportunity that's readily available in the U.S.? -------------------------------------------------------------------------------- David Dunn, Slate Retail REIT - CEO [18] -------------------------------------------------------------------------------- Jenny, yes, it's certainly something that we look at. We like deals that do have some in-line space. That's how we create our value. Obviously, anchoring in grocery, we want a high percentage of our rent roll to be comprised of grocery. But to create value and hit the returns that we're seeking, we do tend to like a shopping center that has maybe a half dozen to 10-shop tenants, something that would be south of 100,000 square feet, where you can put a solid merchandising mix together and increase your NOI organically. -------------------------------------------------------------------------------- Jenny Ma, BMO Capital Markets Equity Research - Analyst [19] -------------------------------------------------------------------------------- I guess, that leads to my next question, which is when you think about these kinds of shopping centers, I know that Slate Retail portfolio was fairly defensive. But given the impact of the pandemic, is there a thought to, I guess, evolving your tenant mix a bit to reduce the exposure to restaurants and gyms? Or do you think this impact is more or less transitional, and you're happy with the balance right now? -------------------------------------------------------------------------------- David Dunn, Slate Retail REIT - CEO [20] -------------------------------------------------------------------------------- We like our tenant mix. I've said before. These types of neighborhood grocery-anchored centers have a very good variety of tenants. We are adding medical users. There are certain tenants we'd like to grow with, but, overall, no, we're not looking to reposition this in any way. We're doing deals with regional health care providers that are supplying urgent care and primary care to communities, and we continue to add a few of those deals. I think we like where we are right now.