Simon Property (SPG) 3 Aug 212021 Q2 Earnings call transcript

Thank you for standing by, and welcome to the Q2 2021 Simon Property Group Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. [Operator instructions] I would now like to hand the conference over to your host, Senior Vice President, Investor Relations, Tom Ward.

begin. may You

call (ph). this Lateef Simon, you for Chief on all Chief Officer, Chief Thank Adam and Presenting And on us Reuille, the Also President. evening. Officer, Officer. David Brian today's joining McDade, Executive Financial you, Accounting and thank are call Chairman, is

this Form Reform may press and forward-looking And reminder, of today's meaning variety Please the the that investors.simon.com. and of results non-GAAP those other Reconciliations Safe the harbor a on at supplemental Before website made date. includes this comparable within we to quick the begin, XXXX. differ for of risks, factors. We of GAAP process call, information in due to statements included during still relating materially, call a of filing may our Private measures IR the directly information in are Act X-K filing. supplemental and is of as Securities only information forward-looking the be filings most uncertainties, Litigation the refer press statements release SEC with note discussion factors actual that are and the you our Please the may statements. our available X-K release accurate note, of detailed today's financial to measures be that SEC. press Both today's deemed to a risk in release the

the as has posted been However, website. it been X-K the has mentioned to previously, date. yet to meantime, not accepted our In

request allow interest question, that and the in you who so to one follow-up ask question those the participate. we of we to you question-and-answer yourself participate for to Now, to with might limit like please opportunity everyone respect our one session, would

introduce to Simon. For pleased David remarks, I'm our prepared

space some our pleased I I'm turn our demand properties to will report improving, highlights. and is well-located evening. for and is to business solid our increasing. Good

significantly increased. and flow cash profitability Our have

were billion, share. operations $X.XX from or per Second-quarter funds $X.XX

operations domestic had an quarter. excellent Our

which international equivalent roughly to Our per governmental of for by restrictions, a share of cost us be the and capacity due compared and two to continue months $X.XX half to quarter operations closures. affected our expectations closure orders this

growth combined, from the to or include Second the These due gain $XXX for and any an Domestic the settlement our end NOI results our increased last As to million Taubman share quarter billion from do which compared XX.X%, XX.X% pandemic. of was or compared per press of first tax Klepierre. over the first contribution release, reversal year. unaffected from than X.X% half income. international million the first points. and by of First increase a of the relatively in quarter for non-cash We the of least quarter Quarter COVID-XX in Quarter $X $X.XX from included said the the of XXX property operations quarter, cash we basis liability Malls at portfolio $XXX of the generated cash was at outlets quarter. XXXX deferred more year-over-year year, the the not Remember, the quarter. lockdown. occupancy And rates to was second the was break-even flow in operations the additionally,

day-by-day. and our We for see and mixed-use portfolio restaurateurs, tenants, continue national across demand entrepreneurs, ever to demand, healthy regional, space from increasing local, so

is tenants. The was team signing rent base and new minimum leases exciting with in average Our active $XX.XX.

would activity half are COVID were now that our in due has of approximately of lower metric. by as add the recognized to the mix Leasing were it base nature given XX-month of deals the exchange as included, base the per to certain and base declined in agreed spreads Our that breakpoints, rents out again that for we the in year tenant, average negotiations addressing its average variable rents fallen rents initial were lower $X the sales impacted that spread, foot to well rent. rolling minimum first included,

spread retailers. reduced large our entertainment, affected in These include fitness, footprint, big-box New as all and deals, our large-scale metric. -- leasing activity boxes opening are has they spread that the included rate

of sales, the our quarter. recently. -- and we have As I'm rate XXXX months, mentioned percentage in a approximately in first reminder, million the for activity X.X income Through square opening calculation does over include based just We XXXX for X.X million leases for XXX sorry, number pipeline. nearly in rent-based feet. any our leases Leasing included a not feet, X spread square significant accelerated estimates I on signed signed the as leases

or Our X of XXXX. first over feet to sorry, the year, XXX million approximately as the to as for -- months leases compared first deals team months I'm square X well more six compared this more executed

what that nearly is folks active completed by have deal the had I'm We years. And leases XXXX. leasing XX% We expiring that that a my of committee. for recently deal most committee told had several they've our in was

for XX% year. continue of approximately X% were And equal to Total to June than higher compared were the sales sales. XX/XXXX, last sales retail increase. Now, May to month and up

to to and Paris Outlet, quarter, of and tenants, If the new compared France. end redevelopment all opened third development. U.S. We're second new active in volume the redevelopment construction our and you sales West levels. for higher development in XXXX outlet exclude we platforms. were our suburb in across June was for the At up Western the We XX/XXXX. the Designer quarter underway started our in Midlands mall X% Multiple two regions well-known more sales recorded compared our than in

retail results. posted For share investments exceptional our million, $XXX of our

Realty sales, Aeropostale, SPARC outperformed not Bauer, quarter credit. margin, expectations. have balance to portfolio do brands is outperform their our the Group Penney in are as this Forever June, later are XX% private initial sales line Group budget they any is will their continue its a initiative. underwriting. on results. pre-pandemic budget our above $X.X the We're several XXXX And also as the above ‘Year-to-date billion, liquidity JCPenney beauty half operating outperformed shows sheet. plan. XX All of position than brands as and launch pleased gross outstanding their our with well and level to Taubman EBITDA, their also very national debt -- They year, of at of returning through higher XXXX by on now SPARC's first the and growing, Eddie Their led retail quickly levels. sales brand, global within resilience portfolio newest the our balance new and

of very for $X.X a capital the which in average $X.X is total, billion. our half year total of we've the X.X%. share first billion, As been markets. in XX mortgages expect, interest of you active in would an We the of at rate refinanced

on share more is dividend XX.X% per which quarter-end. of and of July dividend X.X% increase than our $XXX XX. consisting of XXrd Dividend. per again, the second is liquidity credit That liquidity JV of $X.X million billion billion X.X% third-quarter cash, on X.X an our in year-over-year. we cash $X.XX of We year-over-year. XX.X% sequentially, commercial of our for increase sequentially share payable available Today, facility, and share September quarter. outstanding -- on our cash, and and Our dividend net billion, in announced is is The was a cash, including paid of $X.XX U.S. $X.X of at that's paper

our cadence our know declaring we as returning You quarterly forward, are that will earnings. going historical of dividends to we announce

Now, guidance.

guidance Given for from per $X full-year our remainder $X.XX approximately per to increase our as well share to and at first XX% $XX.XX half range the midpoint, increasing XX% per share. $XX.XX the to of of the share to range growth is results are compared view This the as growth FFO results. XXXX of the we $X.XX an XXXX for represents year, to our XXXX,

it additional open we to Before I to Q&A, provide wanted up perspective. some

be billion last expect year. to X% that XXXX establishments, the testament FFO is last a a portfolio people. to given increase XX unlike we to over XX, our in to just significant we X% a us down, compared orders to governmental real will $X year months, just generate many and and our approximately endured team Simon XX% including all shut other that have number. the force First, testament below restrictive and XXXX, To below this be approximately That

$X Second, this this year. dividends and fact, pandemic expect our Keep not did to have in suspend we twice more mind, billion in during our increased in the now year. already we distribute any point than we at dividend dividend

was Now, today. appropriate really it, just it tend a to I and I point on but felt talk never valuation, about

And yield our valuation reach retail point. other and FFO our to XXX by below the dividend than you, it a is basis and the the S&P XXX. And than as to XXX-basis multiples by compared well treasuries is XXX more REIT to XXX S&P I comes growing. be by higher historical averages Our continues to basis retailers dividend our industry points, mentioned points, when

diverse possesses has growth, a Our product that earnings sheet multiple drivers our creative investment to balance and opportunities, Company support the capital of many, offering growth. many

our cash ready increasing for return And and to are shareholders. performance, We our profitability, we're questions. flow,

comes Instructions] of line ISI. of the Thank you. [Operator question Our from Evercore Sakwa first Steve

Your line is open.

of was us for Thanks. Good nicely to afternoon, the pipeline. Could David. expectations that had you in by this leasing and with the from embedded up on XQ. occupancy you in start XQ quarter share occupancy just just are year, your pretty the the end the And in activity trend, about the talked you to which I wanted maybe what's guidance? what

is Well, uptrend. the by continuing guidance affected the

with Look, more restaurants, I in deal am are in my to pink the with levels I demand you, that we you, deals leasing with had surfacing. doing we overstatement, had committee have the to leasing, dig because don't retailers have mentioned pandemic. I an than the that our -- tickled mixed-use to of, that a mojo right occupancy mentioned hole our to tenants we but now. expect going by many, maybe it's Steve, a are there. opportunities The creativity, specifically, from as many years. increase talking it's But are very year-end the bankruptcies encouraging. by and heads you new the we that have is had of that by pretty out I'm to activity, confront, number personnel the to give pleased that developments, work of We few with a The to that still I the this the we we're the and have our have we to

And just to rent. I accommodations just lowered Okay. guys to a leasing you and percentage know the make that base you more as follow-up, rent had commentary. the took and retailers some maybe on the

more take seem your do Or leasing? having you do going you kind base dynamic is a Given coming be upside to all that that at anticipate about these still to changing of very have lower future that discussions and sense sales back forward? as quickly, current having

approach. by tenant think the business bathwater, to pundits, is on and is, move. the it's there the in my adopted the TV. retailers confidence with. we're properties, playing retailers their our We physical look renewals Physical on got stay. strategy doing Look, the kept bet we retail, on the confidence done. not We a they're got We our to of to retail accommodated I we hear a properties they seeing bet better in the where the vast that we're like I'm as people have here expected. height we always because that. is the We with world. situations the We've job could you bet the rebound, pandemic we'll would out reasonable were at right lot. tenant. come, back, really have The got And the And done. And I assuming in functioning. the handful be read throwing Don't retailers, when than listen have baby to change I of majority going out made certain we of the in the physical is evidence. few lips. and reality everything shop on I We believe to benefits And the We

it me. for Thanks. That's

Thank you.

you. Thank

question next Goldfarb Sandler. ahead. Alexander Piper of Your Please, from comes go

you guess really I not, -- have good had hope a I guess. And guys David. afternoon, Good --

But dividend negative it you had people just see things on buck. good. quarter, rebound, people about, have good But limelight, growth deals think to the continuing is through, and widening. you do But few makes guys really this through to and the the and quarters a Steve's up you on clearly, pulling the did look the and spread, think from would how releasing your the leasing recovery is on question amazing spreads, activity else guidance negative guys by between cash spread believe cash relate I You and metrics? versus the guidance on you out negative sense. get to a David, negative there. that a that amazing flow an expectation at will understand of about Because, see negative, flow everything do the talked disconnect that's spread when next XX% the or we not, some they what in over cadence there's on? everything going Company that this Amazing is standpoint, and

-- stats cash Look, more than goes much flow lot Alex, to spreads. a as that because I look Yeah. a there's into mean I growth, flow they to cash don't as lot do growth. at me Because you

so rolled And numbers. the benefit that's of sole is higher the is the that that was as reason out and a And boxes and the now rent, Now, that. because the deals down now, that thing. than had got we probably of we out mix leasing we that those is were -- -- lot we it of the did. that of our the XX% mix and that The is COVID sole and we're -- because we spread doing the spread in were to new low XX-month

So, understand that. spread. that with expiration you deal have see rollout not encourage would in would entertainment what investors space. by foot it not a space know and that or near we're a it. If to the months not with of Dick's box about our I But ago may don't $XX but an was our ago, It's I XX $XX the I it's space, was months afoot, If by still XX I get mix. $X a would to -- space paid the box made a all trend because be be percentage anywhere they do that

XX, explained? low boxes we leasing the So, do because pre-COVID for had were you we just that of understand I Remember, But last lot what box months a of pandemic. the do rents. at didn't XX

sole So the that's reason.

You follow what Alex? I'm Right, saying.

for I wasn't do. saying. a rehash space-by-space. do I I Yeah. about Tom, you're volunteer to understand what But

This is by they that that that -- reality but was space. I space those if low ago, that got add is XX the boxes closings were space back were not I at are But gone. months numbers

number, we've over new you really jerks got spread. lease really jerks that's it have the I But time, number. of that at So a up low a period down. And longer then if Follow the positive it a that compare me?

next total Yeah, it makes sense. The topic, David, obviously --

more make the it's sense, It should than math.

in growth. No, evidence I the math can cash the growth, earnings see the as flow

there demand, question when You've going clear on of that on of explained seeing there, COVID space-by-space The demand, restaurant and so based next other obviously. it explains well it's not that rising it you're what's Delta, makes that is But whatever out on. the et crystal variance cetera. are understanding life. leasing tremendous this, Facts

therefore, -- just and and, tenants what part mall is their pull saying, most that your managers interfere your shopping people is activity, people restaurants and their malls accept the it are may life we've this activity back are the increased of COVID or and are managers some there country. start Your it doesn't of their or Is a outlets throughout is view concern that saying, or from with seen to year? that

which guess, it. I be opinion, this, only But the factual it's personal technically, is could I'm most so -- my would you important wrong. think going very But give question. I Well, actually a it's to good an this checked I opinion, I shouldn't and wrong. be say it

of in hotspots, these So, have Delta hotspots. Delta, actually we know, as you some to malls our

of the Ozarks Missouri. the in Springfield, So, is land

the reality that. mall there Show, Netflix back mistreated I all And but it. and been there, get in Ozarks. underline I've at only know no in that report I is talk we there. Have been a checked The right? haven't question, mall? ball, but your you to the The about Because there's our But the I now retailers Springfield, in an XX-month uptick starting We we're seen battlefield place. from we it it's it COVID going upticks. think, wonderful Missouri? the Have haven't. our You been seen staff. Florida science which through is mall. we We've where checked I've about are it Even And is, And this to what whole is see in In safe. indoors, ordeal, some the is. the counties though cases personally

the team, management No that. enclosed cases story. in the are an retail We COVID have in for of a or uptick that in mall, it's about the period, seen staff, not an the question whether end people a mall

our just I mandate We're I'm got are hopeful personally vaccines; forward need we're possible people to just going not with with going environment we going up. as I people mask that So, Delta. think will in it that to have safe vaccinated. moving think to are And going all think to we're going with dealt I and and being encourage the get keep on we've And lives. now. to right folks deal consumer And the where mask that them. to up,

on hopeful did studied France mean; lockdown. France, lockdowns not We a the Sweden we I'm these COVID I all mean. get at lockdown, reverts they So, lockdown, if the produced. did. you that COVID into as reverts -- don't look studied cases, And I no to Sweden, country the it have chart to

mall So our next you mask us safe, business, do if is up to, the let need question.

David. you, Thank

Thank you.

Hill comes question Rich Stanley. from of Morgan Our next

please. question, Your

pretty the healthy retailers. Taubman some maybe item, the the looking includes along I obviously numbers got specifically increase which right, the with unconsolidated line a I'm in If David. want that afternoon, Good entities. and to at on focus income of from just you just numbers

more the looking last us what prepared around was it I you're that beyond items. can year-over-year. a pretty bit depreciation XXX.X I went give in million remarks? That it's those approximately just and suggests seeing like hoping you transparency despite what there said little something is XX quarter line driving amortization, think you to what's me million flat the in to happening healthy maybe and versus

transparent. queue. that. deferred we Klepierre tax Well, through we're But gain have our always That'll be in running our

also had that, retail because at pieces And major or We joint of our increase. running through venture that's not-overly positive that want that lunge we in investments increase. two That's our say? obviously, else of well, with through material we've what really amortization And properties. big Fellas, then have do the a but operations that it. as associated and in increased it? have That's to depreciation all that Taubman we

That's it.

Okay. Fellas agree my with assessment.

Thank follow up soft I that. Tom yours, on core you. I'll guidance back do and I'm with my come want to on to, offline not sure Brian words NOI.

I to be X, said maybe past, it I'm to X, was closer in you've in transcript to the the going X quarter if correctly. last reading think

How now? for quarter. big about potential really a And that the feel you upside had do do see just obviously from you You that X%?

that. Yes, we should outperform

Okay, that's X my questions.

So, will David. the get I Thanks, back queue. in

you. Thank

comes Citi. of The Bilerman go next from Please ahead. Michael question

Great.

quick bit little quick a longer. one Just one X and maybe One ones.

the $X.XX of first about core, dollar you be and leaves to retailer investments, that can can on you of part deferred $X.XX, buck just the to I increase The this bucket increase, Maybe its helpful. The if major another would just assume others it would liability like unaccounted quarter, maybe that into for. the tax just XXX which booked one, you million. buckets? some just break down guidance

right. You're

which beating going we're news of got the of same out we're core-plus spot. $X.XX from not core initial $X.XX the plus same the that -- in -- is because that deferred retail, and But budget. but just our I good tax is right. is, the You're break which. our retail. to we've is And then

investment your quarter. It appear through $X.XX because was just like that in that would you original to blown Yeah, retailer may have $X.XX. this

that I volatile, what lot was one's -- more that's little a get trying to So just right? and bit they a

XX, which there and retail will the beat that, other don't the right. is we It's are and no out increase, It's $X.XX, I on qualms other the as core. be entirely not that. breaking just than should I then hope And and or it be a question so really fair than we're -- the plus will legitimate say, and

Right. a And supporting the [Indiscernible] line. is

multiples, -- retailer core? core. retail I what's mean, non-core? is don't that's What's I the maybe a

That's a longer discussion.

perspective retailers landlord that a what what you retailer. own a you getting a now, with from second David, is, as dirty sort the turning I you're obviously, you think Because said being pink. this your to as environment The it now question, you're tickled curious been forever, hands are your and a, landlord, right? dealing I'm your and seeing you've relative at given but of around increasingly

you If retailer, a you're would different seeing be a it description use. must as that that

about are with time retailers So relative the side type to can trying to the assets, little a to people talk the what people to omnichannel doing that maybe bit you and the you your what brick-and-mortar, into on of trying as you just world just a landlord? understand you're whole bring retailer lure to I'm promotions own.

question justice, right. That's if did that a you're be a long -- answer. Well, would I it long

say and retailers we that is Let me gone. them, really this, we buy important, if would be didn't the bought, just this

kept Penney, XX,XXX done. from turn maybe one I'm those should knows very And for not Brian you employ underestimate -- would our we over focus And worried roadkill. focus have were, that cash money, very, and on the what this companies focus what found people. most be the patient consumer, these I'm liquidated. save financially, then And -- just them. that, stabilize we the I'm well most on frankly, otherwise operations people. SPARC because business, because, that but, So, if when dead, about know forget out we us got basically and thousands it's is, comp most could thankful. could quarter buried, We're I on we've we alive what but business, -- you we're to of flow, And proud meant we the were not XX,XXX, what, companies for you've numbers Don't know, add next. proud proud about around. and patient We

and So I'd just more tell is to -- think, generally that's One is into it's can Michael, I things. much then, get credit. I X one. this store detail, say too And the in you now.

If didn't to taking most to Internet the particular, have capital So, in because these that and really good these the operators. retailers the the in run and at businesses, in to We're it the of physical store in be omni-channel. our level, turned you talk these case companies invest okay? store are

Now, Eddie is that really that Bauer than some in gets of is in bought sophisticated when really, other we more got today's ones we the component E-commerce store them. But a world. the important

alive prosper For about companies we footprint, do overlooked. but us. is, business? I'd a They're partner lot that's the right what What what -- we've has basically marketing rest been discussions? surviving not their well of it that do like we and stuff. these they've what for the very And important these e-commerce. but companies converted they've How the of that to say the it future, know-how Brookfield and of then prospering a adds Omnichannel, because of terrific is others, level-headed as gets in deals, some to been is to lot are clearly, a keep and important do very because been the And physical had ABG was adds a all They're we also sourcing partner in and have. great value. in

versus do what difference. Simon you me a wouldn't want. I but vote, know probably I give would they multiple retailer there's think vote, earnings, market and a the The I say can if core a ascribe I on have

other you a just in leases end different have and You're contracts, retailers of model. on a -- the business

would are, retailer that, the look right where I the you if -- you're reverse. traditionally, but you to compared ours, at multiples in argue

clear pieces then I it's concise I argument get a that the where, said I way. -- the information to don't That's valued, bit can helpful about details And more of don't piece an a to think have having having components, to the want a in us very should of us tell but street just is going It and individual earn. can conversation. I the market that we at how think why allows not into least becomes be the adversarial. things but all little

got see sense. materiality But we'll We we'll the to as it. understand partners well, respect market it. saying. of let's to what market. if the level I it, hear the have end don't We've is -- at think in and the got well. -- We of day, see it We But the the I issue. there makes you're

appreciate I Okay. David. time, the

Thank you, Michael.

a one. good Have

you. Thank

Our Burrows from Caitlin next question comes Goldman Sachs. of

question, Your please.

just everyone. retailers. with Hi, talk was the I about little if we conversations bit having a you're maybe could wondering

impacting quarter, going, also or the whether negotiations. and even time like think hard I conversations fees. in were a the are lease past, still an give last can and it maybe you sounded that Wondering is termination about there update payment retailers were on you giving that retailers if rent rent those how the with

we're our now, we do and as how it's up how do way more I or right caving way, and say, better, say it's to we we there, really of basically, other really things do X couple down. business, down business Everybody would how would I lived do a folks, COVID grow really strategically. to usual than folks, do business X deal. has

of So, that I tough think dealing It events. -- them. that was sequence for We're us. all unprecedented the was hopeful I unfortunate with am tough whole it for --

it's think all behind us. I

it if we've to with rates -- to we so Our deal we there, -- pretty -- and like did we'll much there's moving is, we But out are stay collection it's out is yes, got still that last it we forward, are in what can't folks normal, all and X if or had the that we're there. behind year. nothing us, they assuming X back

it. Got

and bucket maybe Okay. quick was up the settlement also lease the then for both And on income income. a income, in decently quarter other other the the just one

you if items. some could wondering few line give just was detail these I on So,

we Yeah. I is property remember number. Brand a residential is probably we the bigger at sold a increase few gain Maybe had, cents. lease which business, our not -- a settlement much. of had and in grower that we Venture couple Simon a significant income of also And that was X up million dollars, which

Absolutely. Caitlin, it's Brian.

If our some our quarter gift saw you a the in business, of substantial increase were Simon card and non-existent. mall of Brand year, -- we second last operations, pretty which, Ventures, obviously, in food

Got it.

Thanks. Okay.

Thank you.

question of Johnston Deutsche next from Our Derek Bank. comes

open. is line Your

earlier, especially evening. green-light Plaza Hi, never order to on additional a but component I projects, you beat. Phipps in and in share? projects, assets everybody. do it see transformational being program additional missed we to temporarily looks think place ongoing, lot David, Clearly, you a of transformational-type I track. shelled, Taubman need but Good any can What see back And in-process need sense? request there you a is to entitlement it's do Northgate make recall Maybe now, skipped development ramp which or to laddered mixed-use like what office the the really material

Sure.

right You're there. about go basically systems all Phipps. We're

Class to We office, the by 'XX, Time be A everything expect end which Nobu of new finish the would Life Hotel, athletics.

So, going it's all back.

-- three finishing of We did don't know, right. down really You're stuff earlier, I months some projects. the two, We we commenced want it this, to the restarted COVID. We during are ago. shut we approve but

really -- be So I'm about that. -- that'll really that's excited

a proud you really or XX took something less. of. show XX, would XX be we right? hopefully and that I So we're we'll to more of -- say really And months. Brian, able be hiatus months,

So, at we're it. back

space. last in in Northern front got see. But the the process to few nice than new mixed-use call, -- just permitting permitting restarted. get we're maybe back just and we're the on area demand mixed-use name decreasing retail to in be I the it's process And The ever. at has really amount Brea of think Stoneridge we've really, Orange probably, I more going would the were cases, that to some it County, been mentioned the California in a

Some buying. we the plans again plans ended old of got that those or but But them of very to so The front, We're grandiose, things it's back start that have board. a maybe on up speak, store idea because less that to redevelop, a the across lot to we active the are the boxes we different. little department going.

there, -- there. a really are to there. portfolio, of -- as think the movement the maybe those pipeline in through increase and you're we more didn't lot mentioned for activity. And Taubman the but with look go and to process. the we our properties, they There's right. our of do betting So, -- They And more I do last are I well think. this, don't not opportunities in, real be silver that I we really markets was And like plethora in might the keep that and to to have suburbs -- we're working are the the But think boxes That there's of there a some, as but that lot you empty general be going especially -- saying the we're think so location. otherwise not of working mean, both by estate, we're call, do a appreciated. we're think center I its great I any communities and lining I I think there's of I great going they,

you pre-leased you are my follow-up follow-up feel general? there? this just of you. coworker ahead tenant you Thank question. in office gave space I that anchor better And and move Life is to Or any you Or XX-story them? guess the have will sign ahead? a great. this be building, Okay, Time the because confidence Is Class-A moving just you Did to quick

leasing there's Time just we going. The foot not Life It's building square are signed It's building. will -- yes, built doing XX,XXX We're hall food own. world-class its clear. lease. Time Let its on XX first a on stories. their on CX. The actually is have athletic, though office spec, with is own top short Life Life co-working. is, me building answer It's be our the inside that of no Time we And it own we're separate they that.

Thank you.

Sure.

you. Thank

Craig Our Please next Schmidt Bank question of go from comes of America. ahead.

Thank you.

Looking to from your harder previous XXXX, guidance than you the be you that the have at second work wondering the that FFO the if, loss to going recovered for first I'm half easier? or share. peak as on on be per of income half, creating half get to could back is you'll the

Just quarter-over-quarter? a

-- just I'm

really didn't anybody think really I understood -- connection's good, Not not I -- your Craig. don't -- that your

So please? maybe, it, you can restate

Sorry, can now? me hear you

Yes.

Okay.

Thinking to you is half, your for be the FFO guidance peak second easier. recover that share. XXXX per back about or brings to already halfway to going harder Your

say, to But I Adam 'XX dealt comprehend the it. QX relief sure abatements that's I would that's if I'll But maybe, answers really, and big it a we I brunt of the The go question, not to and 'XX QX defaults for hopefully, remember should COVID you of gap with most I'm of comparison that pretty and be just -- Brian If if QX, quarter-over-quarter, completely. your If had let weigh stuff. and like your had we in in. QX correctly. question, compared of

grow previous foresee some Great. any or just other to -- of limitations? that businesses the your retail rules beyond do And in might then allow REIT you you your changes

Well, know, Craig, that's I'm There hopeful. hard are to limitations.

XXX% to stuff benefit right, And basically saved that limitations. we've we've will families are because that understand folks the the legislate working right. these There this hopeful retailers. You're that provided I'm do

complicated. our rules should are a it that taxable REIT investments there yes, are subsidiary. They retail So Remember, make be in less.

the a and and And employment try really not P&L, that would there's see big that that they is otherwise hopefully, of do a community. our the write gentlemen? at and create we're fact paying at Correct, full TRS ago. the corporate then look keep companies benefit long try you to what will rule legislation expense. That's you retailers frankly, around you for level. exist If in that alive when look others stuff time all its that with arcane an the at rate taxable, -- this folks associated the will a that and we've see was tax good benefit that our that and is these done And to real the tax

no hopeful, am on that. but I So, there's certainty

Understood. Thanks.

Craig. you, Thank

Point. from Our van next question of Dijkum Compass comes Floris

is line Your open.

Thanks too. for the encouraged Maybe breakdown you some equaling course, levels? XX portfolio great that, statement if are lifeblood in bit. from were XX% the, those to quarter, crisis. -- your ahead Very and sales taking my following ' in seen by to particularly did give correctly? times of what my first regarding levels and different -- before Taubman equaling question. things retailer more question financial hear key of comes it to tenant of David, -- is your May. this picture you out XX can reliving Maybe of to Deja vu, like as if Did retail malls it's you in key a a I have Obviously, you I seems also up can the it and but profitability you we're feeling the June sales. Again, the that your sales obviously, the of say X% we've

Correct, yes.

Does that --

force think predictions. is hard I we little I number. I think is shopping do deal to a very any of to it's all physically us mean, it's like a it in all tough said people predict really should tell -- shop. I But a that, a good earlier, -- Look, what physical bit and make

have no by cylinders. of on stretch than don't are, imagination, hitting all We tourist tourists, domestic. other the that We still have centers

-- to and you, think and, that time up, communities. that your than it. you it just and about it to shops the is and about that?" anymore And And of people California, point is others. I think board. clients the will physically well parts we're listen, question, most have say this? across I open sure the hear you defend -- getting physical what it to i.e., we're try the maybe you We nobody shopping, to region showing that ask consumer were but slower I'm will important get hopefully, -- What I just Your say, Or you'd is to this, these the like "Yeah, all And continue. that it matters

I I'm to tell I It's which lower it's be know the allowed. So, it if might you, Aeropostale, also a for is the it's don't allowed what -- but -- retailer. not tell but luxury retailers, you, yes. I'm the AUM luxury won't AUM than is

Forever a AUM. Okay? lower it's just So, XX, which has

that that's go to I the encouraging. continue. the consumer the a place. So, just think I But think idea will likes Hopefully, physical can shopping trend they

what you if I I that reported to wonder if had get the impact you is talked And XX can your average -- getting are levels, not the to I up, lease your Great. And about rents you guess, fact like-for-like. follow relative they're wanted also, have if sales about? on that you've the talked would impact you be I if effective -- that that. space-for-space, rent to not spreads the what's -- the

based what retailer. mean, we because easiest number base by rent got to months. we the got six $X that's Well, I complicated go We for lowered our due think breakpoints that, a I of base the you've upon the be did our first rent to COVID way estimate more There's not reliefs. And -- the retailer to our would benefit. had do

to indication of interesting maybe stat that's So you. if that gives you an it's interest an of

So, don't I --

you Have --

by the do way space-by-space. but encourage and space people Most I'd do few you guess it's I burdens give the I it to very number want would So, I it on my analytic then we not you; it head. A again a do of off the really that a really people space. just you be don't lot And it. community, might spreads, can't on of people, the really what on and the be. know and top do It

calculation. flow as vacant good was of it's getting I reality can spreads could yeah, people Some out, of boxes of not in normal. and growth and that sales Mike, on boxes. spreads a big also they if spreads already what? they forward growth mix and matters is, sales as the The because the is and growth, rent bunch going base -- growth, bottom because cash manifest -- we of the occupancy that back include flow story. the -- you rent. went the SPB had spreads. have to itself that then will these a and put And explained the is cash story you We and space the line. think flow in percent growth, that Focus but their it's looked out It That's of and include to so the flow. spread you cash big I have their And -- all estimate going look just in They they're to all acts in do be up know cash lease historically, growth

Appreciate Thanks, it. David.

Sure.

Thank you.

question JPMorgan. Our next Mike comes Mueller from of

open. is line Your

year. reversal. the of going XXX recur of looks into What So was XXX-a look average the What if - without the balance about you guidance, incomes of the recur And won't the for no, the XXXX forward? that quarter -- number at QX won't like that it it income level of level was implies XQ about a sorry? was the the in back

I'm not sure.

question Say Can that one more please? you time, again, that through Michael. go

-- Yeah

that's But be. going way. Again, are thing property. that These that's exactly of deferred -- but what articulated things settlement are in thing I the only only thing we going a income, it what the have of Klepierre one-time will tax that's year, The retail That's only to press There release deferred recur non-recurring, going this -- $X.XX. always -- lease tell and say non-recurring gain. the gain, can't an tell our to income-producing can't going to only clearly you is not I flow. tax. not is every recur only our the The always me certain you be, things thing let sales to sale the is investments retailer is sales. retail ebb

significant? What were that were there about there prior period collections, any in

the P&L through come wouldn't they either. No,

We saw no Michael. recovery,

Yeah.

it. Got

Okay. you. Thank

Thanks.

you. Thank

next comes of Tibone question from Vince Green Street. Our

open. is line Your

rent afternoon. you before -- how between in different contractual the rent expected I'm the is split And rent frame that could you negotiating leases It portfolio. component? is from clear seems is shifting? Good what As pandemic? just Hi. variable much are help the variable today, is the and the that growing how this for

extent -- that willing in lower again, of cautious retailer. say way if in we're majority. lease -- rollovers. prospect look, bet if rolls we with simple have because cases, to And of our the accept are this a willing the that average, what anywhere cases, near we cases, the our lease had well, that dealing year on XX% if we over. an cases. as say not And the only think those It's the upside is to some let's they other Well, are and they that on deal we artificial certain to And property rent in with to get it's have some to the answer base happen certain I rollovers

bankruptcies, had more, with we all only lease’s to in you leases. year, Now, dealt because we you're your theory, when which bankruptcy, rollovers because have of reject in last right the

back I get back-ups the they the we is more rent which of normal to generate rent. were with the break sales bit of much to will appropriate little it, pretty last the set. we going I are low year was the the cautious with percentage brands breakpoints a the way pandemic, made to through make did forward, -- of and do would height that at we trying artificially some to to some over plan. So, that natural it because say and And base went with income But bankruptcy, a their

it. Got

this. -- I say will

won't not seeing have are still used big, not of outlet still overage really still the and through foreign stuff. important. we're to rent that portfolio tourism the pandemic had from we and with we numbers We years go that. strong I cetera. -- all Obviously, of our the Then because big et couple We're dropped dollar the relationships during pre-pandemic, last restriction. tours, countries,

in it's really how itself not-too-distant to play unique and which percentage anything point, all things I additional growth Delta But should high-quality the of future, is our or some to good we're in that So, rent. the manifest going one tourism not at centers, think see knowing I in hope, out. else, going

that yet to shop. like properties but outlet, see forum a for as Vegas our well. also primarily have We're our We

That's Thank more like towards sounds mean, No. available lease I is secular the you. shift the a rent. it structure helpful versus more really temporary color.

in just maybe there. months. market more So, fairly mean, shifting you in recent I color One were appreciate the for me, gears. the active I mortgage

to high-quality you other non-recourse financing get was for just there industry the and some on trends today. recent color provide you Just malls and the hoping both the than ability could on

couple mirror, market a in expect of at difficult. important. to to for still still The unique an mortgage dramatically I but necessarily pandemic us normal, look, other has about and easy. a not. been. we it's day really, the it's I'd this, not That to it's say needs still like and where it really it the Sponsorship Not we but back be, is thing us be, is -- a significantly should it's improved, but need not market. I unsecured it it where have But rearview think improved, market the is where quarters, don't is quarter beach. get Retail

Yeah, sense. that makes

line already able get If sale foot there? there or per you debt, terms with of throw to to for is had a being out anything in maybe, quality square to draw, them want you

solid the Look, pretty the good of and stability shouldn't under a those town. pentagon that think a we've good I We've mall not of cities really it our the It's done in frankly tougher [Indiscernible] done world. be management cash flow because in ownership. is and

in domain. is So the still world fine. But had over-financed like if -- smaller my really you really estate have be, but -- should often a old solid, it. parlance. to mall more We though opinion. did is Pentagon it's of We good, The really stable, traditional than even we market, difficult it and real City that

Well, Interesting. you for the thank time.

Vince. Thanks, Sure.

Thank you.

Your Kim next Ki question comes from Bin of Truist.

open. is line Your

level quarter. XXX about of income of that I you would've the investments, talk NOI? of have would afternoon. Good type fourth the million Can gotten Thanks. retailer you the thought, towards

You've seasonality inherent the in that us just given that's retail.

your that previous fourth XXX time strong million we the a to of trying quarter guidance happened expect compared is or of think similarly that just in about there quarter, I'm So, around? this something and should EBITDA, to unique

in below be six the remember, back-end Well, -- way. you're again, know we're retailers, to so will But we'll we I first it traditional exactly lot on a Ki budget, way see well. a months. right, in above of ramp up as it this you're ramp whether is that next outperformed budget but budget. we Bin, too, mean months. X is budget, budget it's -- We our up to XXX% what budget We hard right, all the same It's like weighted. that

Okay.

to anything quarter wasn't unique appear that? or one-time like anything that like this a there item would So,

about That than what's was unique dramatic outperformance. Other it.

No Yeah. one-time perform. [Indiscernible] items

Yeah.

your All right. compares your to thoughts acquisitions? just can a bit that how are hurdles, And what any on that. on latest out there you color It's internal ask share

-- I this -- I action. if but mean, there's late there's little it's really to a should now. mean that I for We've really publicly, know of. action, looking on -- I -- it Well, got don't know say me really no I not we anything no hard There's comment we're really so because happening. it's it's really not just at there's much

Okay. Thank you.

Sure.

Thank you.

Jefferies. of Tsai Linda from comes question next Our

is Your open. line

Hi.

With and in-store, the the to do ratios? approach a pandemic also similar more occupancy way approach is buy ratios? the occupancy think considering how cost cost you've retailers their invested And pickup are you retailers driving this in online

excluded, that so that's our to our than like it's if of we going to there's part sales no into goes that other say that's pickup Well, answer our standard and goes It's cost are, be in-store, online like discussion. buy they sale through calculation. not lease, occupancy sale

Got for the months it. past And comps investments XXXX trended as retailer levels? your the have how relates to then sense any it of couple maybe of

did to the How 'XX? retail investments -- how retail our

Yeah, like a same-store sale.

unaffected they We're handsomely. lot levels, above They generally, were in went bankruptcy. in still XX say, year. really ' of XXXX. XXXX, would XX in having except levels for I less pretty, JCPenney rest below into pretty 'XX, We're ' are bankruptcy because the early 'XX. a not but had above bankruptcy them Yeah. They still

Thanks.

Sure.

Thank you.

question Haendel next Our St. from comes

of Juste Mizuho.

Your line is open.

there. out Hey. Good evening,

We're out here.

are gone leasing come deals more are here assess from you become the more bit more rent, year. to don't rent are that percentage bumps, they a wanted U.S. in I'm and some for business leases back with guess last rent you here go like in they Few Percentage year done. in at to perhaps leases through the the Asia and deals as maybe nature. do industry back curious, 'XX two, to shorter to next are changes likelihood mall or about being look thinking the more necessarily shorter-term has prevalent. over I'm fixed-rate the being perhaps I a in period where contractual I the second. long-term the especially or 'XX. Clearly, how

change And the tone couple as and here your in what months. maybe so, of the being you average are portfolio in the on conversations, I'm curious, on some term last you there, seeing of the the seeing, I thoughts are lease guess what color signed

market to hasn't agree I big don't on changed look, would The When value shift. would tend because you -- short-term, the you I term say is I there what go all that you significantly. fair a can is. fundamental it's think that think

you get over And, cautiousness there's do a we because we're again, retail going I deal. assuming deals. of so, from it's some And short-term I community long-term the But, see think, the this, think pandemic. to --

the of that better are has personnel. that think we There when go And short-term short. long-term levels, think -- many, We long-term want changed more also on so leases. I Company. there store want different the long-term to move in as concept, leases. leases that let's to use are around. we fundamental long-term short-term their nature store, store motivation while look a is, leases. of people retailers straightforward the when want is reasons cases, Listen, simple leases personnel deals committed retailer one find is investing want to through don't redevelopment, advantage many But good, there. go the the the in to right, to strategic the in tenant. new to better know long, we Personnel I they because retailers do is there retailer want leases the our to have like are sorts be may of that's at There's we they're are rent business a we they because They the are if don't to want they in be terms our keep they one that testing all offering, is, the answer don't

see a just than capabilities I want short-term de on going to So, in store retailers it. the No the And pandemic, to better a good industry. the do the they're the all long-term without their and are with put nature don't other of to facto think that All invest the omnichannel All don't of short-term leases. in that physical plan. not I really lease. because new leases retailers. going

or understand you concern next of just been anniversary especially the and signed I have that I in years, any on over here, on which the your I adding be part that's the leases of over lease to to you'll expiration two, the comments. some you have shorter-term trying got that building normal top appreciate that period again. last of exploration with up lease those perhaps if in was couple by year XXXX the schedule, 'XX schedule

leases some think X-XX signed I tougher years from ago. comps

action position I think, because be is, reality the about where dissipated Look, a our because from in again, People great. Yeah. not of that. concerned physical lot has we quality negotiating great. The the properties a Sales look may of portfolio, our of retail are better the -- is. markets I'm position of the

don't future make future. And the bets bet -- long-term all make on we're those betting we time, on the short made to deal. a than that But and bets. going we've have if wrong that we're in can't been So, my the We because it But we more it that's right. we've opinion. we judgment we've to always make we well we're right the those not in been and reasonably make

enough. rent impacted leases doing the provide thresholds, the with by are Fair leasing you I that that's spreads, on understanding of curious. Okay. -- guess I I'm some And if been could, a follow-up, these you When lower-percentage

-- it's -- say mix that, as of as bit I've little a It's but I'd the stated. again And primarily

Okay.

straightforward it's not -- spreads.

here with have figure you a curious these leases net provide done I if able were lower-percentage was to newer been just Understood. rent that thresholds. the of

just we we we paint just number there, good put this, mean, an say the picture but stuff and could could all is let -- in, I the unbelievably me number. the

of it's So, if over focus what's we a if went there did would our space-by-space, a on. sorts you just ways of number number It's business. to driving are to we want you time, -- if But the period could certain we not all it we us. create

Okay?

you. Thank Alright.

you. Thank

Thank you.

comes question Scotiabank. of next from McGinnis Our Greg

open. Your is line

Hey, David. team. Hi,

thinking value the to How drag maybe most one not within you think long-term today about for remain longer-term primarily they is from potential concerns assets, assets? those quality least of at extract investing, key I are the or investors the maybe the retail. portfolio lower-quality if not investing, different from bands your in

of a like an much not It's other de Really issue for any us. Company. minimis number and it's

you our and are portfolio, breadth the depth the we initial you better the if and the a business. my don't flow. invest is investors of meet in if But think of If have you maybe about and that, there our don't is you growth should profitable explaining a do quality reaction concerned it job business, cash of

you questions we than margin. them to think don't being have happy that. through We'd us. it. like real any it's to happen, they $X.XX, answer does walk a be call on on the more away $X.XX, that encourage they that something with I after But would that, portfolio, that the So, come If have concern.

call set concerned asset them Tom. you it or the base. can Brian, please through that's that, anybody walk we'll and up Or about me, So,

NOI used you which Could performance the touch to how maybe higher that helpful, performance lower but how that. were weighted end those between numbers, today. just Appreciate right. going curious end? All is the get and We on the differs possibly operating

the irrelevant. higher, better. let's or pretty when rolling about have it's weighted sales XX, rent And rolling I to can't remember, the little so XX, most minimum somewhere. average consistent important have Basically, rolling the have spreads and base is of them obviously, on are EBITDA the is same. number see. is I and XX.X. total the -- the occupancy -- But X percent downtime, them bit but it's basis. you in a rents occupancy XX Yeah, same, the they're But months XX, we a And pretty -- about

and or a higher what address maybe as I'm are how of any all. Okay. coming or Really post-pandemic understand, what there's them just is to level trying to whether is understand, dispositions retail the for and others market not to evolves, the portfolio trying need

retail just earmarked Markets there. that We got a We've -- couple sold we've the you. sub-X not are rate. quite at been cap We'll are a see thing like below There what properties sale. residential a selling. of always -- happens. for Thank we've

All thanks. right.

Thank you.

comes Sanabria BMO of Our Please, question next Juan Markets. ahead. go Capital from

Hi.

just that back Or conservatism in given that volatility on number? like the because hit implies sequential expectations retail rate on is the from have time for from just run x another think the again de-sell we kind is to seems for your clean but implied wanted Just second Klepierre. guidance investments, on the half second-quarter built-in side retail it outperformed the reason half, a you side? that on the Should the one guidance the of question the decline there guys

look, the we to midst pretty and positioned. fourth, think hope of Well, the third feel beaten I can in I it I second we beat we're the to feel, but good of in how is as all mentioned -- third But fourth, and we our you first midst to the We quarter, we're beat you the have our we where that quarter. tell out. see we're how we'll it and to shakes earlier, hope as

to operating pre-pandemic back just levels those terms if follow-up is a -- not to mall and Just hours. Are in of

yeah. -- or back normal. an we're toward through to much excuse be -- on Friday, me. a That's but more may be Wednesday, on hour They're short is good It Yeah. less. an back We Saturday hour basically may it, Thursday, We Monday inching pretty question. short

Is something that of just a or lack of it at availability this issue labor point? is else

pretty it's normal. to back No,

the always more hour think an a different retailers normal, of like it's in -- interesting me gives It's It it. monitoring the maybe somewhat, subject -- pretty the is the I part we're think I because back. about that, short But and back very much opinions. retailers hours week. in headache when some go to a love to there all early something it's it's some it cases,

you. Thank

our with we -- and But important significant increased has consultation retailers. manage is it it's of point in weekly, since monitor daily, And reopening. -- days materially the and early is the it something something

you. Thank Understood.

you. Thank

Thank this you. -- At time

Operator. go No, ahead,

Simon David Yeah, would remarks, at sir? I turn call the over this to closing for time, like to

Thank Thank This you. you. of for today's Thank Have concludes soon you participating. All talk call. and right. summer conference rest great your a we'll

You disconnect. may now