Simon Property (SPG) 2 Nov 212021 Q3 Earnings call transcript

Greetings. Welcome to the Q3 2021, Simon Property Group Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instruction]. [Operator conference this being is note recorded. Please now Tom Ward, will turn Relations. the host, your to over Senior conference I Vice Investor President, Thank you.

may You begin.

press today's forward-looking and Also statements Securities on for during evening. call reminder Harbor are Chairman, statements And Reform may this that us deemed within Safe Chief And the Private be of Chief Executive a variety call Financial Accounting McDade, XXXX. on differ Quick Officer, Chief of meaning President. you Simon, Reuille, is made and thank of Officer, and Brian David of the may risks, refer materially Litigation Adam We to joining Presenting the Act the this results uncertainties, call actual factors. other due Officer. that filings note measures Form IR you only be within and of those release in detailed discussion available relating SEC information supplemental our the are risk information Please as forward-looking financial today's measures investors.simon.com. the statements. Reconciliations at the and includes a may our the call supplemental to of press today's are for factors included non-GAAP to information date. comparable accurate of most filing. release this and to release Both that on press the the website X-K GAAP directly today's

one hour. this to Our limited call be conference will evening

please respect to to like would pleased who Simon. request to participate ask in the those to session, you For question. David question-and-answer to the limit introduce I'm one we

Demand and platform and leasing traffic, is with recorded increased spectrum from billion consistent -pandemic pre to levels. and for volumes, investments growing, nearly strong a space gains, increased outperform. tenants $X broad occupancy flow various cash our of shopper our continue to retail sales. Our We year-to-date,

operation our in from quarter $X.XX XX $X.XX contribution the from after-tax and of Brooks share. in per Included were ventures. with or quarter interest results the of per the starts funds share third Brother’s billion licensing $X.XX from non-cash highlights Third gains Forever

now own equity of For additional from ownership and ABG, of senior debt in loss billion the extinguishment per redemption $X.XX XX% a approximately $X.XX notes. share of Group, we Brands of the of Authentic on

had have quarter, international operations Our our domestic improved. excellent another operations

Occupancy the you And our or These However, quarter properties, for $X.XX not COVID growth and XX.X% to roughly do below and Domestic Average to contribution was increased was did year-over-year year-to-date. which quarter second primarily at settlement budget quarter. basis was property an per rates of points portfolio by increase quarter TRG income. and was international the the from XX.X% various least share, NOI compared year-to-date. X.X% the include $XX.XX. base our rent increased TRG include XXX restrictions. XX.X%, XX.X% for if portfolio, NOI the a any due

that However, that, And excludes actually would add BMR. rent. another that included if $X to you percentage

XX%, compared For more XXXX square sales XX.X first quarter square to were XX% the quarter the to XXXX. first nine Mall XXX compared feet months leases of up deals X approximately for million million the for nearly was feet, or months, up X we third signed year-over-year. XXXX, third which

on peak XXXX after over given levels. week. which beginning will start believe tourism, next are results are sales strict of to lack Our impressive, international in the particular, we restrictions lifted travel These increase are international

yet mathematical it our spread are us Leasing are that point, because significantly what to levers time. allow spreads point calculated and dividend. contained has community X has simplication analytic in there is is metrics. would encourage increase flow opportunities a a close at you its as know, We focus, cash on growth, our and to growth fund Company's our many our open growth declined in flow cash contribute Our or cash to increased. beyond which operating A X and or should focus flow the

We have Spreads by highlight X. significantly real retail the studied tenant companies impacted and various the metric following: the are estate across mix, spread leasing X.

Our leasing is spreads include all same-space measure. not closing in openings and a

the months sales reporting, other many sector income lease we spend and We include to no next on disclose any calculation. does shopping this working subset use for their to calculations, much And we productivity not consistency center the uniformity do companies approach. only its However, for achieve metric, retailers. did still our sales the do. others believe We in intend variable there's not several like this for spread although

perspective refocus mind take We Let's that Premium encourage to the and our these opportunity keep opened in of of you all in importance flow. fifth to outlet to on this we put need our in tenth station we metrics, are many Korea, others. under construction, Northgate of at And Seattle our we accelerating, many King opened redevelopment developments there Kraken Prussia in Japan cash Community ongoing and is have activities itself, Phipps, Iceplex. at and

approaching billion. $X Our share cost now of is development of net projects

Penney, platforms results. Penney's well, ABG. SPARC stabilized exclusive and national private on the SPARC, we're added it. sales, EBITDA. And Our has margins, the with we've team improved very budgets results. and performing JCPenney their retail business The are including pleased gross brands And investment and to outperformed very financial

of joined day $X.X Our excited he's to Marc fact, liquidity in is and Company. position no the first outstanding today, credit. Rosen, his and balance And is we're at on there's announce, line billion our very

put results. growth higher. no Company not capabilities as background, sales, CEO, Stanley executive a the year. momentum is the with year how Much this example has and CEO operating leader, retail culture. an the is got but other occupancy, impressive nor and nearly industry above the results. has the of Penny Simon also in on to gains produce results we for the excellent flow very cash working look like the an to a our TRG an ago only underwriting, terrific variety he's role to he were This in our at interim testament, interim We success a understand Penny's of as investments, established our XX% great which look to better is As builds for appointed to and him Shashoua Stanley, forward Company. these posted

increase was in $X.XX and share September, paid and extended X.X% As share our billion facility. XX.X% number the will of increase which our you in $X of We fourth Today, sequentially, of cash. Dividend our December in announce $X.XX $X.X credit at is be our we refinanced sequentially, mortgages, know, rest XX% that billion a a revolving available and quarter a facility We credit XX. including and on of we liquidity $X.X stands of amended XX% our per dividend paid year-over-year. dividend cash, an year-over-year.

XXXX our $XX.XX $X on higher me results, posted quarter is basically growth last to the $XX.XX to $XX.XX date impressive from let XX% per share. and believe we year strongly than it guidance we has That's to budget $XX.XX compared to by year. XX% This midpoint. initial raised just conclude to Now the XX% increase saying still this stock our undervalue. our returns, following, is to though And even

XX in to of approximately very cheap historical is than times and multiple sector even X XX. the XX cases, our lower turns compared times, close average at REIT many current Our to and screams

our results year-to-date business shutdown dramatically, flow many back that doubted. we've We arbitrary had which have our overcome has cash proven unequivocally of our pandemic due bounced and with to the the

that unique Company. We are attributes of have our growth estate leverage real assets beyond our

income we investors, unique to have models streams. business diversity proven have and be We astute of

as industry-leading is strong sheet balance it's ever Our as and been.

well an is potential Our the in than covered, growing, dividend to have well X.X%, average very now and X.X% X.X%, yield of for inflationary and REIT perform S&P - the of higher a we yield We're ready cycle. and questions.

conducting question. be from question-and-answer time, Thank session. the of will with question you. Stanley. At your with Our Morgan this proceed first [Operator Please Rich Instructions] a we Hill line comes

-- good afternoon, Hey, guys. or good morning

the that Is a because portfolio. maybe only Congrats in there about modeling specifically we another I'm really day. should really a that maybe international been it's David. recognize asking think more sequential in -- to in of slowdown domestic I do about on forward long little TRG’s want quarter, bit on would I drive did just question -- that? the Sorry, portfolio guide how understand your good terms the anything

No, to last so -- no, It's share, showing number compared our gross quarter. just wrong. no, we you're were the

it's good our a it's but just No, Okay. share. question,

clarification. for Okay. Thank very you that much

no, Thank you. you No, glad out. no, pointed I'm that Yeah.

to then And to little did it. I entities. income want just a bit understand more maybe Got unconsolidated about from the

last the gain like quarter, in is was that non-cash clear, be number; to included that Just right?

Yes. Yeah.

up And the we retailers a we recognize about would went were Okay. talk in going how anything versus Obviously, I depreciation maybe significantly there Is we look the do as doing pretty just -- then prior should that forward? number pretty can that about went little well. that dictate think that seasonality why number bit? down quarter.

European our by probably mentioned No, it's business, impacted -- just as it's international I earlier. most and

good and it Thanks the That's me. from Thanks. quarter. again Great. on congrats

Thank you.

proceed next the question Please Craig line of from with America. Our comes your of with question. Schmidt Bank

I terms you. going investment, to make Taubman Thank third $XX total of you quarter, but second does increased Great. noticed redevelopment you of not to started investments that total Taubman. the about any million, your Have include your from in redevelopment?

that works it's a Cherry way but progressing in mean, will thought now, as the be years I there's planning making, good but portfolio There's well. in Creek, some master several happening the Yeah. on in that big the stuff we would. it

annual investments, your it Should in we at Great. should a quarter-to-quarter, And on that your how been should produce an to handle around. look about have retail? or basis, you able what investment in how then, on retail it get we we better think terms moves of of

a Well, you it always we I never results in, look and or to about compare think about as -- think historically. what that add should them worry you at annual and can should you Company quarter-over-quarter you invest should value should

think, but will And getting to quite when the pretty here return it's I mean, it I you different proven but think have growth important for investments is for to lots So investment, of their.com look other has and I'd are and us. look companies be exciting. and valuations that our our than retailers think that's e-commerce if we return just for at embedded Craig, some quarter-over-quarter that's in outstanding. on Company you I say I on those we've value -- most EBITDA we're businesses; thing at create gotten avenues a successful variability of just the actually companies where year-after-year, what extremely generally, businesses, our think most

over So quarter I about one would worry another. never

No. I'm an for APG about you. IDL. impressive. in might that particularly very and Thank the That's interest say what thinking people go on XX%

look, more that's focus we're what on. mean, that, -- a I'd proven to I -- -- us call an beyond even and be we've mall we're your you just think -- to we're Company, you Yeah. I just I not just encourage though, than

you. Thank Okay.

you. Thank

line Our please ISI, next of from proceed Evercore comes with question with Sakwa question. your the Steve

the year see at could about up XXX to end Thanks. you basis think discuss Good little maybe sequentially. occupancy a nice afternoon, a and David. wondering backlog, and recovery the just am pipeline of ends this leasing occupancy you your points if are It expectations for what occupancy. was I where bit in your

strongly of back it's I I we it's get our the have Well, there retailers. folks -- seeing. We're in seeing very board. then And But -pandemic -- know, of can't, were retailers, new that little it's Steve, bit -- would going we'll lots very think portfolio, I give users. what's action to amount high-end been a I good. and what upcoming, tell pleased demand. Never that busier. to a the -- increase just I the it's not retailers, it's And I increase to so with talking where we're of on of think was another this don't you our new you Lots as occupancy is exciting, we the specific a think quarter across value-oriented our tremendous to I guidance that. the is demand, when time take but, never It's we're next year. pre we'll

Great, thanks.

you. Thank

Goldman the Our question. Burrows of Please next Sachs. question comes from proceed Caitlin line your with with

be a from retailer there brands? just thoughts Just a existing just the And of can how was guess, the part this you this the current as perspective; and Hi. grow it any goal forward. go a if what's Good the own sell quarter. and the I just acquire question or part -- to more, maybe business. ultimate on for business another brands, evening I your REIT plans on business? could Is it? going of big is max how your big wondering through plan nice

still tax particular, obviously quarter to REIT, to tend in to you And REIT a Well, staying listen. the of very that and runway through businesses SPAC are in continue We're mention P&L. we grow business. we that sense is our this really in of growth. in a our all for REIT. that dedicated these have that to because a we'd -- see that a big you'll expense But to that see in buy these subsidiary. a being there flowing Not partnerships, out taxable And have is vehicle

I'm will we're take to So to unique record, Company, continue track going there. optimistic add that based to from it that retailer, our investments. and on Whether find our other businesses similar, -- we'll situated its that continue

Got it.

Okay. And quick then just maybe follow-up. a

tax I XX-Q or could income if learn related in to included? the there think the the is until on that we'll then, quarter, if just retailer number you taxable more anything is that once subsidiaries, but rate that one-time out, and clarify just was

ABG one-time the the transaction a number actually Hey through from $XX quarter. we million Caitlin, Brian. there in that coming had it's There's

you rest just our occurring operational X XX regular bifurcate the numbers. to then is So accrual. tax There's a got normal the and

you. Thank Okay.

you. Thank

the of your Our next proceed Michael Bilerman question. Citi, question comes from line please with with

McConnell again, Kenny out with They're that me is of into environment with date, Great. David, below sense sales the the gotten up behind everyone's on extraordinarily afternoon. know good but maybe retailers sales struggling back launched ships. bit we Hi, wondering keeping product are staffing. (ph) if struggling buying can the little little They're and line. -- strong a I as things it retailer struggling you are on to enjoyed the most bit a deeper as go was well. in with

approach you of how think from two of some standpoint are of on and and points. how e-comm of One, dealing are really understanding the some it given also problems thinking more And to sides? retailers going and in also the with more issues, now store sides the staffing sitting that own where that about some dealing these are product, you pressure retailers concerns that openings how giving some of melts together, with they're next you from of you too. the both equation the all So this year, their these

let does an Well, stores, which just impact product on us. getting backlog the in have the tackle me to

LA great do there -- because do it for said Ad I so "Well, will that's generally, are is I in to this we product season, but variability no as that. get he that going port but them have the was You tell going know, well to that's time with of Christmas. [Indiscernible] Penny that variability. a going he confident guarantees, there but I it's so trained it everyone for the to respect that product mean, did we're to did throw by cautious into idea, forget get felt for Stanley the know on had tenants. then out our probably unpack and there and I that. their they'll be There's too. bit don't that a that the we hands comfortable shout call a I to We're to know, said, would but he And I just is I as [Indiscernible] go the just was brands think some -- there's will don't they're tell better me of because though. variability, I -- way, little people should get or store, him, own. quarter, going you they'll into to just If pretty confident we reasonably that it. would the don't out in -- get if only fourth say on he But to to holiday I he boxes our help,

employment, respect this retail. with well to as beyond Now

Yeah.

going We've with it's worried But an are especially part it's our the really point-of-view they're the And retailers of that's finally our political of got that sure, folk’s not lack Could seen of I and talked obviously not correlated CEO its forth some issue, it. getting their back on because last have we've a a -- all mean, or And the and are the it? seen to open-to-buy from are to about on, -- about. employment economy it's the because and there's focus And answer it,” overall we but of it just -- I growing doing yet. someone to out just employment to of not growth. in clear there is figure people, growth. question, the growth, lack causing Michael, is one big not impact is GDP a have whatever we to root it shift, the Thankfully, salaries me time. I "Get Eventually, -- less got your they're increasing

So has salaries increase more employment and just it most picture maybe combating demand because concern. but right a out getting it's long-term loyalty And that of in good area -- way restaurant don't that's worry slow the they're phenomenal. demand an been the a is they're -- I could now, whether in ultimately, know, but that, raising I the about,

get but this throw be cash And more disclosure you when earnings at flow drivers so does all to you -- obviously it to your for Isn't section, pieces, businesses your on to about, disclosure, lot to which revamp talked into stepping know credit that all those stock your because ever to drivers there like you're investments undervalued. traveling an these and the each the would in opportunity the history; a and be been talking good to identify within have you to the XX-month value you level a these on little basis the supplemental it really to lease have credit so on timing for more to can are give able information and back? I today being more stuff business get breakdown rent there's pot, to a that about or FFF basis things point investment the overall? spreads, quarterly give of of of people the in community necessary metrics some more little that Street is of more really bit that's operating you a detail -- businesses

business XX% it It's it domestic property, It is to earnings. flow is just our we're rule Michael, put cash going around property to in not of our perspective, -- out.

however FFO, define -- However want it. you to

that worry into So I then get other we on we'll we XX% the have the time spend just XX%. do And stuff. if more that,

be years the X be be from better years could could from encouragement now may then, now articulated. that it And Now, with different, point-of-view agree it XX%. to your XX or be it needs different, XX% XXX% I

sell then other dot-com The a and you'll rule wouldn't and value we the our Believe business me, it. certain of number we like out huge others some to option there, could for that is the -- out. ascribe

were never begin with. You embarking business in to

selling and interest gone You back malls. I in about that have on

to never mark. You wanted the be in

You want to value. the end cash flow and

important I a mean, tail think admitted. it's say an think -- what and we and And do you doing. I I tail grow terrible we're wags I any -- as it's is as think it's friendly. seller think certainly -- it's but a I appropriate. I'm In wagging it's what dog, look, nice about more the it's you're a -- I I'm very and beautiful have tail it that, still excited event,

later. for I'll If a have on up quick Thanks. guidance time we right. queue All

Okay.

you. Thank

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

that's you men Beach realize that didn't I David. there, -- in work shore and Long out LA union the you long afternoon to on periods, both impressive. David pretty Stanley good are able and that Hey,

do our takes product to whatever get we'll it into stores. Well,

you that if think I Well need as well. know that you

join can Alex. us, You

join can You us.

you and sounds make two for sounds because comments, awesome, you if to so handedly don't that COVID it's it didn't property can work, opening gain, unless some your operators, you that beat. that ABG closures guys like I budget were question the little David, questions, My the get Hey, get backing guys bit work a of I intellectual of love you Tom, you experiencing. it you, said and good those money. pretty tough crane the which were is -- you in Despite still we up it. like behind

excited really you much hard I in doesn't do your I budget it's it -- when It were So guys openings with beat headwinds. all Michael run you guys different there answers -- it store to like your and all sounds shout, guys hard strong. to your David, career are and on know consensus any things, know say rebounding like under you team get the still, to really win. stuff and fun -- just and as labor But really that to you sounds, and sound like you

as below related So -- to as what budget far was the

Yes. Alex international our just ops. that was

I say it. that it's misread the it didn't our XXXX. if say business So just budget would the under only international, because I the just I said word it's is 'international', initial It's I've script. on for

Okay.

that the drilling then that So it's in rebound what international just seen are part, trends you seeing seeing? consumer into or the different? or we've Are rebound the Europe, like very Asia U.S. anything are you whether

and good -- by a a in question. sense. And country, I That's it's

So to I is answer would It's you. that there that no how much is simple very country. COVID impacting say

is was Asia Klepierre which them -- seeing vaccine but more how they is Korea thankfully enforce a had -- Pears a let the a our cards tell to pretty outlet And (ph) almost confident have fine. what Japan decent by in to LA generally Europe and you in we much we'd way, or whether which, feeling have seeing. had not would We're European did, mall, you, know, results shutdown, is pretty but tough no, doing more had almost it friends County prevailed they bit know, the much stringent and a just cooler about you a on as are is but at But deal they country-by-country. Clay strict, I little heads business -- in really to Italy, a open. generally people France with As

Other of outperforming. other U.S. just retail say. -- world, of parts I clearly than should I country sales other is -- the parts the think generally, the from

your on -- folks Asia, rest then And of by all should the Japan, the Europe. in the are France, different Xst, January is Everyone Or you, though, be they international back? all greatly of to telling mandates "Yeah, countries such punt countries a those on ease there and continue 'XX are on that concern that " as the impacted international to is COVID [Indiscernible] just going reopening’s continued of Europe,

better I'm will a for for just 'XX us. 'XX hopeful like them, be year was

So -- proactive if again, but gentlemen, I more say there many be but COVID I in will country-by-country, mean, it's they, spikes. proactive more spots we'll with be COVID

just [Indiscernible] then And a quick Okay.

[Indiscernible] say. should I restrictions

Just a for quick question Brian.

credit On switched paying from basically line net, -- the you impact, for switchover. are of the day, end to LIBOR of new you where cost are the still guys over SOFR? this The same economic the

You little maybe ending don't bit more, guys a up it's I little paying are bit less know. a

It's economic and it's an that push. economically The was be whole push design, No, the neutral. to Alex. a was so forth, intent

Thanks. Okay.

Thank you.

with question. proceed your of from line comes with Please JPMorgan. question Mueller Mike next the Our

one-time Yeah. break I items, increase outside of the of year? of you for balance can wondering, down was guidance XQ the the $X.XX net the drove which

Michael? repeat you that, Can

went called had domestic $X.XX of think You the I you one-time down, so versus items that so you how retailer of what increase, much could other or and drove $X.XX ops? break that $X.XX net out the guidance if up,

was it break down, a both. of don't but combination that We

it. Got

it. you. Okay. That was Thank

Thank you.

question. your next the BMO of line Sanabria Juan with from Our proceed comes Please Capital question with Markets.

Hi.

I'm movements, at Craig variances for but as guidance quarter, through then dipped the tying Mike at these if two to share. the apologize dipped for quarterly you back seem look it maybe volatility. to you that components retailer, share And was and quarterly I to and and pieces, not trying I does together, the -- walk this; question corporate NOI could but up, reported asked. those quarter it know pieces NOI so last like just retailer the this that the guidance that Just put is the well, went maybe corporate, get NOI just given checking told the

didn't here, year. annual you looking of that one, there to at even numbers remember were or Well, here last retailer we a numbers, got businesses quarterly variety own

that's close piece year-over-year That's when until of driver is didn't a So this. year noise it big of this you looking a which end this. part at quarter-over-quarter. year, or big last JCPenney of of

different So you a would. you population, got if

and on a retailer NOI for other focused just the -- corporate, numbers go sequential share I'm the it two NOI seems on those the s. because did basis, and down buckets investments

Sure.

have just timing corporate the and other, then it, quarter, a we termination side recognize on retailer large and amounts as seasonality that bigger and of last income. the You changes of

then just of on retailing. Okay. And conceptual a question more

about the guys the you an cash You your the or apply licensing, have, the of for think different talk typical of licensing do you the retailer the landscape property pieces own How -- licensing, you retailing. traditional that intellectual of margins. those in stickiness traditional could And would multiples the flows. if you

EBITDA is think pieces pieces two to those where coming as well. and those how sense Just you from of between about the a get two trying

coming the Whereas EBITDA from the retail?

about and licensing the which you is yeah, retail, business. traditional Between have because the Investment the talking licensing ABG

run the any Group. or income. just Property the retailer EBITDA the A more This the e-commerce way those than it's look operate lot multiple retailers an so less any retailer. you higher is Simon you reward the -- EBITDA stores, like I other the essentially be well, the ABG Company of value The brands retailers license at in and will valuation of owns multiples, other and should today, public tell from brands. to

licensing a is what retailing? the margin or the better traditional think you do business; And

margins if plus are a -- the but it's -- I brand of cost the range. business gross licensing, are -- the XX -- buying So the margin, don't they you mean, in amortizing of have the the you Well, a licensing not? that's -- license good higher retailers or

you. Thank Okay.

Our next question your questions. proceed Please Vince Green from of with the Tibone with Street. comes line

you inflation wage XXXX? How extra CAM or versus operating basis. given of most Hi. costs on Good cleaning from retailers pressure Are are trending fixed afternoon. experiencing expenses same any properties the a

all that Not costs we'll 'XX, how our see material. currently, it standpoint be 'XX think from not but shouldn't I impacts They've in got, a. rising -- --

you Are you changes [Indiscernible] 'XX are in in for like kind were or are or your it than of occupancy less adjusted much margins the kind of higher same where more or mind

operating, occupancy, pretty Well, than in of the terms 'XX. I probably other it's think drop in similar to

And you ahead, about sorry. I'm are thinking go --

that's think I it. No,

you the CAM or given saying any get I about And was are thoughts differently the structured to inflation way now, yeah, just there. prospect -- of your just higher is curious thinking

really, Not a.

with obviously cases see tied changing. the the in that think and it CPI, doing and don't an ease CAM, just I of fixed grows to business many is retailer I

last share Maybe quick think I the was it's growth from anything year? Thank NOI your clearly for at of Got you you. I latest just Could think at the higher the and last time from one year, for expectations property there. said you X% it. formerly one domestic me. beginning

be going Vince. to It's higher,

Any could you out throw for us? there number

-- now a put annual going on look Well, these what we things I where based number really, on we to in. But but were to we're an hate be at basis, we guided be and less, to or we to, like think, I that range. double mean, should we'll right? -- guide more it, I in So something what X% that? do we or should we I'd

Thank that. Appreciate you. Okay.

go. to get to Thanks. Vince, way it of Way out me

Compass questions. Point. comes your with next van the of Our Floris Dijkum question Please from with proceed line

seeing XXXX right suspect guys. -- is taking up to come I the not mean, the I consensus, those sometimes estimates, is numbers for to my are whether I people drastically. thanks Thanks the year through for here. have going now $X.XX Hey, guidance for wonder forest question. are which your over trees

XX about love question being seeing. about my get those the spreads negative, to get Obviously, many again, the to and because I'd tenants here. your about are me deals turnover, were to leasing X a we what ago, X It's wanting rent-based structures. were color obviously you to are months in on that different articles those and talked and There environment. sales, written negotiated when more Let you're leasing looking backwards environment

go comfortably, think Are You to Do to on negotiations as levels, some your and that, tenants? excess, in fixed a talked you back of I'd about and rent do to apparently. how want that. past what quarters excess are base? your in overage going sales rents turnover your that the thoughts now in for but get to do with you actually that's smaller offering that actually rent more love is also with impacting of XX about they capturing apparently,

Thank Floris. you

want this So not significant to would want rent say to going underline, -- but I overage I I international put we tourism. still do is to be look, do -- year, our have

the overage may good and do up of the I'd international not having is there's lifting it think breakpoints -- it a say of and another folks rent tourism. think this lot. seen I Floris, I We'll strengthened a couple rent pretty with structure all I deal. should even to if may So few the a leg two that but who get a maybe whether go large, cases, can we on of any come rent this it's have very year, offset the get still we And I as there and haven't very this I'd that think But the there's my X, But is say extent your -- rent. consistent. from we But, a now, make confusing. believe do not rules week and see. by another one another how I -- overage of there call to their has it the where basic international they whatever, a place -- next it, confused a of the about lease, are and -- and but international lease own and that the but we see X-X overage traditional, right? did next. doubt to impact do it's for year, what -- question pretty and I Having trips, select we negotiations go year years, don't lot. some overage, all that they in yes, wanted we'll to On tie to suddenly about some now, think dollar too back tourist

what's there. So on not a huge going change in

have specialty income. driven the Obviously, environment much leasing of And well. year, economic income malls billboards Obviously, when touch if kiosk couldn't -- as your last lot David, you a maybe were on closed, billboard growth. by is clearly, could you really

part is see? NOI. could year. was that be do mean, that, performing last What the to see of of do as I XX% low presumably, I you into So how -- 'XX? very head up mean, your you this business we

very side. think appreciation 'XX demand better there's is we're year good and have in growing for good going product on of just levels. previous that a again, traffic And to Because and kind I still a our there. reaching is

year of have had plan of our least 'XX, they're at this initial business year that very a in kind good that from recently. think I year, review we just So to a better going but

gains about more but mean, somebody asked leasing; ask mean the us of that the certainly, you're I because Great. sort Your in it also could if to backlog before, I the the sort of asked busy, what easy of bottom terms if and I the in can I right working line. clearly question any I with income, Any all certainly stretched down give what you -- that, now? in but will, terms of occupancy maybe that backlog to of was insight? know that's would imagine. 'XX because you leasing drops is max,

retailer worry always what demands, seeing with but is what tell I And a what -- a few to I want my telling having deal in demand I'm space Listen, me hear, me, good. okay? they own they're

number, give year. we folks uptick the last are is it's I but time. disappointed and future are if right? the is, demand So and they're interesting news as -- busy, very streets, the all making out, our our deals. a I an know in we occupancy good think the product didn't Again, world And different. the -- all I would be we an for is occupancy Floris, it's listen, mean, and have never The an next years But good. hitting several very uncertain no get just

Thanks, That's David. it for me.

Thank you.

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

here. question in terms of David, napkin bit the back a asking of differently math my

appears help items. you non-cash FFO adjusting Could after guidance for be the expectations? QX impacting to might a be in per QX take versus slowdown So those share us understand items what

Versus we're what what or doing? you doing were

XXX, non-cash in QX, have out You that the And QX? of XXX, assumes take kind then items. we XXX if

really quarter. see quarter by at look we it don't earn. We We'll what

rent Then the All to percent bit leases. maybe little shifting right. gears a

history? trying are deals. to there that year of How First, to sales year understand year, is portion just mentioned what last if just and going rent this with throughout of to And is overage signed that year? percent calculated smoother or significant seasonality also compared associated We I'm you rent should then tied next the leases be to will associated trying to understand should in it if pop be as sizeable we a Christmas renter are expect QX that? be

Well, overage rent does holiday -- is by shopping. impacted

all like, we are big not unnatural fixed, out to though, it. retailers fixed some in few give upside percent on get you'd seasonality have be leases on where rent. did And may we later, it's some your the don't some I I versus is I the unless that -- missed leases fixed deals what very I a with think high our question, But high, the our -- fixed, the high, greater a are odd overwhelmingly mean, we something. We can COVID, there So percent of of we answered where mechanics do maybe sales. are a but got XX -- lowered handful which specifics sometimes we is -- this into and percentage and breakpoints we a if number. of

No, did. you

signed number that of base about that should start back expect think we rent So number down how percent up coming if getting rent again? just we -- and maybe COVID, going go see now are to out leases those we're

of yeah, time. rollover. expire. on it's when over leases Sure, a Well, function Again,

right. All

Okay. you. Thank

Sure.

from Our of Haendel next the comes question St. line

Juste question. Please with Mizuho. your proceed with

Hi, David. Good evening.

you? How are

it. peg your but guess, cheap is piece we earlier point and missing a and mall X anything was characterize today? the that And would clarity. you there how negotiation refinancing’s haven't where is average, So XX seen values times appetite the lending refinancing your being you I'm you for in long-term mall guess asset curious cap out stock community Thanks. the I you value mentioned get mall rates mall the today, I FFO, was viewing about I recent market the informative how

Good.

do? many -- did we I how financing did think we

that's $XX supportive in -- almost billion. probably year, of XX market a high-quality It's open refinancing The perspective is this assets. from

would Look, we're assets, I'd I not not in a -- there's humble my in sell buyers, say I bore a want and are, sellers discussed five and no rate. A cap for before mean, of -- I -- this above and but valuable they low lot anything really you, how have opinion My they There's to cap asset where country, a think, there's that this opinion. A realized rate.

was the valuing also anything how any or could share other I looking variant? lenders there's from that. the from you appreciate I if are that side

you equity were you thought about lenders? I an Why analyst. care do

to. Well, there's loan is a value with described the

I they they're at debt -- Exactly. look mean, yield. look,

the Debt and yield in importantly, cash is flow that cover using deal more more they're metrics

And sponsorship to our resource.

Okay. to you Well, for on boxes. last pricing the on about could demand your my you and JCPenney Thanks. question. I One guess though. Thank move that? next Anything I'll share

selling because Penney own, ones the performing we not that we're Well, is terrifically well.

Okay. Thanks.

please. Alex, more have question, we for time one

Thank you.

Tsai the your Please from proceed line comes question with final question. with Linda of Our Jefferies.

my taking for Thanks question. Hi.

Sure.

base that -- included those rents that expect weren't you of to would how the of in variable number and to terms In fix? that minimum $X see in could improvement moved much be the of $X When rent.

You mean goes when too it improvement or fixed essentially, just right?

it pieces? Well, given too would see rent I base an and When the goes fixed guess, improvement when we moving in then X separate questions. overall minimum

it itself the manifests in recommend you Company know recommend to I I maybe you is opening would -- about overly Well, at compelling, it's wasn't a it flow my lease remarks. -- so metric you In by overly I I'd and not worry or on -- missed we're just up, just that cash. lease It but that flow. cash -- mean, all as again, of focused the picking number my our up. there. again, But missed build cash demand driving the look I here

overage rent in terms that going we're up traditionally, as really, functional percentage resource, said In of earlier, back be expires. that as or when of the is it to rent pretty that just garner end when And will when is base when above trying rent. to break-point base the of much that into particular does, usually effective I that rent

think down And around this is supply importance lower holiday of from retailers? given to store the retailers also some potentially you way then the challenges credit prior it. a years Got to do but chain, of threat closures are and smaller

profile profile is always so. the And but going -- pretty say not of I retail few there's credit pretty going the credit is think to good. honestly look I would out bad. generally community a there, be don't the mean, not I to

portfolio is pruning local stress going but and think it might and always are will -- regional on. cause mom or a it bigger the don't the pop so it some chain, cause don't think financial I cause a chain So retailers the to unfortunately supply But I calamity.

Thank you.

the call have we gentlemen, remarks. to and reached now the I for Ladies turn over of the end question-and-answer David closing Simon will session.

the right. you questions. all talk appreciate All and We'll soon. Thank

day. you. concludes you your for disconnect may conference have you this Thank and participation today's Thank your wonderful a This lines at time. and