Simon Property (SPG) 2 May 232023 Q1 Earnings call transcript

Greetings, and welcome to the Simon's First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce to your host, Mr. of SVP the Ward, Investor Relations. Tom and you, you may sir. proceed, Thank

Claudia, Thank for joining thank us you you, and this evening.

Presenting on Brian David and and on Simon, Chairman, Accounting Chief Chief is today's Officer. Executive Adam Reuille, President. the Chief McDade, Also are call Financial Officer; call Officer

accurate differ be Reform actual the A and of refer safe SEC of that date. other to may to note that factors. the during due We only you Act factors within and statements be materially Private this made call risk for reminder forward-looking today's of those discussion may as press the detailed and of this Litigation of variety release statements. Please harbor information that our results XXXX today's quick a call forward-looking Securities relating risks, statements deemed to filings includes meaning the may of uncertainties,

the included in release comparable financial the Reconciliations directly at GAAP available most supplemental non-GAAP X-K information Form today's the are measures press and IR Both are filing. measures release of investors.simon.com. website our the and press the supplemental to on within information

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

you in to who to like those ask our question-and-answer limit respect participate For we session, that yourself would to question. please request the one

introduce, to pleased David I'm Simon.

you. pleased And quarter to I'm Good afternoon. results. Thank report our first

results our plan. exceeded start that We with are good to off a

share. quarter $X.XX funds per or First from were operation $X.XX billion

income. variances for primarily contributed had growth, through quarter $X.XX some operations and rental a of by me Let quarter Domestic higher driven to good walk this compared QX very XXXX. of

XXXX. investments declines quarter, XXXX, U.S. the contribution were $X.XX $X.XX, of of QX platform interest of a dollar our partially from settlement rate $X.XX lower the headwind other and from gain for securities operations international offset we QX These had growth. contributed strong of Our $X.XX compared compared positive lease performed of $X.XX, expense higher a a well mark-to-market contributions from and by $X.XX on to publicly-held and to of income lower also

that everyone generally on very our QX. of we against some was from through you last and walk comparisons up for OPI results, tough mind year's that me remind keep OPI plan. in Please Let are

fourth ABG's one-time their in and and a deployment which with accordingly. JCPenney's includes year, new part first similar investments transaction compared FFO beauty -- and also XXXX quarter activity, the and the quarter our the beginning modeled expect to FFO expenses, XXXX. through will which was generally should similar is cost OPI OPI Overall, physical provided related in we seasonality be continued stores, from number. associated guidance to quarter all retailer recent the our the profit to initiative, that of acquisition has our majority of we at investments with This The of one-time contribution reorganization losses of our flowing be meet IT, it to

Now, domestic the property properties currency X% international the our for NOI, includes which for X.X% grew quarter. increased constant quarter. Portfolio NOI at year-over-year

XXX first and the was basis occupancy the XX.X%. Our was mills, Mills end an compared malls, of increase to of XX.X%, points outlets XX.X%, the was at year. prior and quarter TRG

average X.X% of $XX.XX increase foot, minimum was square Importantly, base per year-over-year. an rent

X.X the million more X,XXX We for more continued the leases portfolio. quarter. across signed Leasing momentum feet than than square in

gross expiration. the pipeline, deal our new many was strong categories. including continued demand the with We By the strength we from first be to renewals leasing retail XX% for We're seeing the complete expect $XXX occupancy of deals More in including second for XXXX of end quarter, community, approximately broad-based our our activity in have XX% approximately additional in than an cost. X,XXX volume. million quarter

a premium outlets per Retail another foot record platforms quarter $XXX $XXX TRG malls increase $X,XXX the portfolio was at a mills foot, X.X%. returning level, in average per square an of Good at square reached square and a outperforming tourist-oriented the sales. per in news X.X%, combined, increase. first and with sales of sales terms continued. sales momentum is, X% the our achieved including foot Reported centers All retail foot, tourism record for is

Our the at first the occupancy quarter end was cost of XX%.

our Outlet West center. We opened week, in Paris Normandy, international last France XXth outlet Designer our

upscale construction During the the Tulsa, of quarter, XXXX. fall now our which Oklahoma, in open restarted on outlet in center will

projects several construction units that densification pipeline hotel and rooms. residential have includes We X,XXX under a and approximately identified projects of

Now, maturity average on XX in our completed U.S. credit facility of a a X.XX%. dual-tranche a XXXX. billion at new totaled combined with at notes billion turning to average We of sheet. an multi-currency $X coupon the years $X.X term balance senior offering closed that We revolving

prior Importantly, to secured The the types. continued is traditional from geographies unchanged mortgage our assets pricing refinancing of the and support our facility. markets across property

as ever. ended billion Our as with A-rated balance We of strong is sheet the liquidity. quarter $X.X

for dividend XX increase second The a the X%. Today, year-over-year payable this of dividend share per on is we quarter, of quarter. announced our June of $X.XX

share for full midpoint, Guidance per of year the per $X.XX guidance the and end excuse range at share quarter the the our the of me. $XX.XX to to from at range to to year, of increase year view This compared of $X.XX $XX.XX. is the $XX.XX quarter XXXX $XX.XX last this bottom of current are an of we $XX.XX and given -- this remainder results increasing our

And we where with I'm Tenant our be. our pleased demand even internal to and results. plan. And with running shoppers ahead uncertainty, brick-and-mortar are economic want is of first the are stores excellent, quarter

ready my throat, Excuse me, we're frog for some I have here. a kind of questions. in but

sir. much, very you Thank

from will Please The question, comes question session. be Caitlin. Burrows first Instructions] Goldman a proceed Caitlin from Sachs. We your [Operator with now question-and-answer conducting

and that is portfolio the evening, Maybe regarding versus everyone. at around for flow potential maturities changes upcoming $XX. maturities the lease cash overall what good $XX ABR Hi, means forward, for 'XX going

an then fair have $XX, 'XX which I'm significant the So, but of have a would not the renewal, are ABR straightforward. that it's face maturities, guessing the of say 'XX on opportunity? to you think XX% may of that it's rest and rents maturities headwind

you wondering if rent could outlook. maturity and So, discuss mark-to-market that

for Yeah. question. Thank you, Caitlin, the

out during of I renewals there In renewals, I add while and was, my included numbers threw One of the leases million that which new income. is the will rental that numbers coughing roll-off is was gross $XXX presentation quoted. some our basically of the you

We are renewing above expiring rents. above our our overall --

rental of So, 'XX. said, continue for balance in we that year with even number certainly expect positive to have to the the even and higher with this spreads

that since So, year last commentary on and is fourth and positive certainly of year well. the very of this -- the our outlook beginning at at quarter the front unchanged as

Thanks. Okay.

comes Evercore your with from question. ISI. Please question next The Steve Sakwa you. proceed Thank from

Yeah. Thanks, evening, David. good

Steve? you, are How

the I the that and more if by product the moderate outlets, us seeing. maybe leasing type, whether could light Good. demand shed of there anything looking it's you malls? region, telling was kind just are on wondering price you're kind with either given your mills, or discuss the Is you tenants could point of luxury a color more that little anything by for Just versus going traditional little we're what through you. a tenants, anything what on

weak extent and the strongest would of call that curious out? what are to the maybe spots, is where kind there any you demand Just

is a but economic this changed know lot kind iota. has not uncertainty, really face demand of of I one mean, I in Well, the of

long-term. at talk all when tough And open example those But against of at of I those Nothing think QX let's is -- long-term LVMH a comps last brands store stores 'XX, like 'XX, in compared they're whether -- Street, you year. there that. those they're to Richemont, the we're view XXth looking of on making mean, you really have if abated. Group, the we 'XX, Now, Kering, to about cetera, up take companies the luxuries and were brands commitments. opening et is, Clearly, And running side. best Tiffany

go to up tough systems all that So even they front, are though QX. compared on comps against running

lots strong the from brands. demand, You of price points of lots Factory Cheesecake of across to look at new the some deals very Chang's, chef-driven P.F. restaurant category,

So, all systems go there.

of demand you new athleisure, the board, stores. [shields] the the happening. the of look Dick's, Fitness, ALO, best with seeing [indiscernible] Department that Time is Then across new Life demand. Brothers, Lots got all Vuori, much Brooks the You've at by store pretty of business Lululemon, best we're (ph). box

even the back, on leasing of going I of be -- year So, tougher this not the in concepts end this this is has said even demand are come to terms seeing positive. with comps We're last year, though entertainment year, early really year, last sales at changed. theatre to compared the business

all they're sales 'XX down, expect check and noteworthy. -- cautious. So, don't good. and over North and accordingly. but and it's we were Obviously, Cotton couple Timberland, demand, that VF, we here really we planned or all like pretty We healthy. feel a Face, feeling certainly there there's every they it's we're day On, But very slowed nothing we're 'XX, growing

Thank Great. you.

Thank you.

from comes question next Stanley. with question, Morgan Please Kamdem The proceed you. your Thank Ronald from Ronald.

we growth domestic least X%. about Thanks. Great. property last quarter I talked NOI of remember at

thinking XQ Thanks. at other that update year? NOI the much how you looking looking can the you're property give You're us guidance core -- maybe raise, that about rest maybe an X%, of at for thinking how just And number the versus factors? about already property at is

I an first positive, more of economic Sure. we macro out think X%. X%. will the some point-of-view, I uncertainty we -- do sales the tough. we comps plus. be things. budgeted, hopefully six better. to X% at be very from But initially would for the with interesting, we hope least there And have second way big months lots assuming going sales, retailers the be at mean, half the in would come least will we'll there But Yeah, If it's we in is uptick the we're should retail do be

you. Thank

you. Thank

with Thank comes Piper Please question, Alexander you. Sandler. proceed Goldfarb from next from Alexander. The question your

and Thanks, David. good evening,

How are you?

doing I'm -- well. So

you platform all emphasis is that's seasonality, question detail on So, My and for on bigger. first, helpful. the the the retailer the thank

competitors coming lot seem obviously, trends with to back, healthy, are redevelopment You capital side, your retailer guys strengthens some the the have your demand trouble program portfolio. it of of on a having positive

on look invest next capital? are your use are existing sense may focus whether internal and few years that's starting or more question you is, capital, to abroad? my in of as best And external adding densification? to where over make returns So, see the incremental malls it your is Sort Or opportunities to you curious. some domestically still the

in our no making pieces do is see better -- feel do best our use Yeah, -- and I with let see order. better. it still existing particular strongly the I portfolio that I do me capital don't of

have several the development. we new last that $X-plus the doing think billion portfolio I and over spent years upgrading

see that are we to attractive in really have that X,XXX values our accretive best a in mentioned really looks hotels -- as don't I pipeline I we call, So, of the good around use. as units. that see continue and mean, I residential generating

the over happen few to going that's but years. overnight, happen next to going not that's Now,

us So is opportunity. for that a real

I the development we're redevelopment has that -- I really our time, accretive much any we whistle our kind new make of portfolio of development. domestically external here and I opportunities and don't think, wet acquisition International capital that, capital, to over say we'll where Okay, there And essentially, everything Asia new recycling I grow this doing here here nothing say see -- our think with looking internationally. cash have the can flow nothing we that us would... still could and -- right? at so I outlet

You said it.

jumping point. Nothing external here said like really and do that we're Yeah. down good to not true, I would transaction. it, up

we And listening that markets. the look, companies to just be that. So capital are stuff all are to we've and investments, respect do have doing it's and been the think capital markets The on more telling closely to accretive very same that. prudent, we plugging more keep I to do mostly away

you. Thank Okay.

you. Thank

question from Vince. The Please next Tibone you. Vince Green proceed your from Thank with comes question, Street.

Hi, the good in follow afternoon. comment and I your up hotel the on upcoming wanted X,XXX residential pipeline. to units regarding

much balance could color potentially these ventures any start some how spend this this sheet? would you're could helpful. or Just be curious of represent, of will and maybe through wholly-owned that quickly you do on Kind is how projects, points something going the joint on to be these

Sure. All right.

the do JVs will on we think I residential certain development. So, of selective

also we that bring be So, may and third-party equity that's -- potentially it in too. may -- it could

probably And So five-year at then would possibility. we'll units. It's Vince, a really at think, each process. looking -- look deal those essentially, we're X,XXX but that individually, reach I all to a build that's certainly

California year. yet, We being little We're expect this things But start in a permitting several cautious. Northwest. we're, to bit still the frankly, some and

how So, we we're a to -- see just don't decision but world is, the don't going make yet. we to have

would are scientific a -- I really at And stuff, of hotel you I'd can number, but in of instinct to -- would And number, $X.X go detailed part so but a Brian to to some isolate California more want these or billion. But I rental Texas Seattle, residential give you about somewhere lot end apartment Austin, give Brian multifamily. in my think the Florida, you more of be the give hotels I redevelopments think, from to number, Orange and the range. County, probably these day that in Florida, because some rather too,

a kind demand to is where of expect because we're a it in and imbalance supply-demand where you'd it's favor. considering there. good we So in be our Cape building supply think there's But hotel Cod,

it is really So, across.

a what the can having our estate. did say of that And estate add as impact real every, on mixed the we think value Buckhead generally because like redevelopment in focus through efforts, some we tremendous is uses, overall I'd back we where real on get we big is do

it So, view what's of on benefits the we but value on to the a just -- all. value after from see of point from the is not the only the that build residual is it's them cost accretive built, also return that does versus

then, helpful. question. that's super follow-up No, Got And somewhat all it. related

could outlet Carson updates the curious forward and if project, the Just moving on term? you be you think share if near any there you'd in

That's a complicated one.

a -- make one, every day, we're progress. that's we complicated are We -- but

be So, terrific progress. one over do real transaction, very but But months. made But has it. final next no decision the complicated been continued to few it's make I to to expect estate, we made

you. Great. Thank

you. Thank

question next from Craig. your Mailman question, Please Craig comes The Citi. from with you. proceed Thank

one Craig. Thanks. with It's million just the proxy analysis $XX on it. least David, actually of related and the cash bonus has Nick on executive OPI, to here Joseph know some comp firms concerns one-time I raised on at

the rationale hoping terms So, of -- of could it more if behind structure you of on week? some it the the give vote in both I and was this ahead color amount later

'XX, I February, fully 'XX ago, was Yeah, XX X-K. disclosed paid so essentially this think months look, executives in an about last

disclosed proxy reasoning Our lever by fully was as in rationale shareholders. and our our committee to supplemental the comp well as filed

value, look moment -- you this, totality, is take if at why I that, look company which in the of at think but to mean, a in history can the you the always why look we I if time important say you you function look at our our at program, NOI at rate, asset G&A lowest our of low. at our we the look the burn comp, stock a you of are you executive look the at as or company,

look one are up you they But it number pick run we can particular of Anybody don't like. business. proud totality, if we this absolutely in at how

of that we're history shareholder our whatever from would to can Head anybody to or to detail, of they If do very think. Independent to then our like Committee totality But view. at to a more talk go the look encourage would point everyone that. to I to it talk through and come And shareholder conclusion you Lead encourage to happy Comp get want I of Director, any you

you. Thank

Thank you.

comes The proceed from Please question, Greg. next Greg McGinnis from question Thank with Scotiabank. you. your

is David. timeframe all evening, to that and I understand make sure of that Is renewal I it incremental a rental much of and Or you then guess, good of that gross How income [indiscernible] I to $XXX TRG? on rents? Is what's Hey, And new want is pro-rata that in-place that, million international it? inclusive basis number mentioned. the just contributing? leases?

questions. just here. All scope of give that a that's we of And the the going business terrific to sense you highlighted on

lease exist companies huge it's number. today. a That's and one that in activity -- a of than bigger one that's level So some year just

SPG. really business, to the And year, the 'XX domestic. you uptick income It's a in growth if and us me new the really renewals incremental just sense think future I in-place not up not let of kind portfolio. in 'XX include renewals. just of in and in a it try break renewals It quarters. you'll is flow in come get to that that. does it a this NOI existing the It's at through new upcoming our front And there look unpack but the position But will that from see we our just it. So, business. those from on good between And opened. that stores adds see as of But I'm over

Okay.

$XXX though, of So, you new it is of new mentioned both million because last income quarter NOI.

Correct. Yeah, it includes both, correct.

Thank you.

you. Thank

next go Thank you. Derek question with Deutsche The comes from Johnston from your question, Please Derek. Bank. ahead

below the given is weighing that's rates is gap XX how is expect Do afternoon. this and Good so occupancy XX.X% you the that narrow? bps we've now And year? Occupancy levels. Hi, to XX.X% team discussed, leasing just XQ everyone. now surpass the 'XX's demand pre-pandemic versus occupancy at

me -- are is the different, would good down. every part that first. take the and we're is lease different, renewals above expiry news some seeing we let I say, relationship rollovers finally go rents. that are Well, -- that every again -- overall I is speaking, generally do when think rollovers But

going in retailers we're seeing, do doing to better properties these are that maintain is we point want are So grow they from so. just survived bricks-and-mortar, business. is, their for it's we're real one. in and that we thing think, having landlord the and part they to of to appreciation -- -- I that shape in reinvest the Two in view, favor -- know of demand and can one of have and supply-demand is and and and right more our rely because on And is that retailers' are the we're generally, the capability that is COVID there a getting a

So is that all happening.

this not next the not in am close. hopeful -- to will reasonably year? it point, economic guarantee it, It into we I'm your that certainly within assuming conditions. will that I can't continue XX getting I the months, beat beat we can number, -- decent maintain will we but And first be

All you. right. Thank

you. Thank

from The your Please question, next Floris. question Compass with Dijkum proceed comes from Floris Point. van

guys. pipeline little evening, being so around update, know, David, bit talked maybe, in non-open I XXX Good Thanks. signed about past you've us the can a if more basis of give you an points. your

Your that occupancy basis leased Is similar? just XXX relatively by SNO pipeline points. increased

-- correct. maybe, and going my your look leasing X.X% I be spreads, business. get up it that are should base you healthy mean, it we about of XX% in core if if at I space back, pretty the math the mean, your Clearly, then how thinking? appears is by approximately And spreads if re-leasing I assumes I accelerating mean, rent

a that's the fair think to what is it's I Brian? I statement. pipeline say that And would been. similar Right,

Floris, around XXX year. the Yeah. in point right this we're hanging points basis still at

which demand, to spreads get wanting during So, got have I better saying all the finally spreads, to. retailers good few back more bounced on pre-COVID. we more quarters, we're as corner do driving we've I But the demand, were more we we've properties, stores, us to been nicely. from last lease accustomed allows and and mean, commitments hurt think over open flat-lining to pretty of we couple that COVID turned -- retailers, Obviously,

So standpoint, it's from that good to see.

near a particular, And those the can that external how acquisition -- like can in? embedding Jamestown, synergies Atlanta about in your How -- is David, potentially how fortress two out, you malls? if bring you are working of right And Jamestown is the mentioned are the hotel up, you street I some capital I'm capital. into external retail thinking between follow two or of on the with investments, apartment that maybe that source businesses and/or and thinking

clear. just Yeah. Look, be separate, to to

the Two into highlight bought partnered a business but that's can we is, to of for we that they we they're management managers. interesting good several reasons, a have Jamestown excellent -- and And really with business. to institutional our relationships. a bought asset couple -- here. we they is, One we development with think very So, And have us. capability asset partnership, couple grow

I their the development we there It's where in plan good by They XXnd master development better And there, the Charleston very I buy German we them a the a days of we to see Eventually, think community learn had money -- process managed I -- of with -- or estate -- that partner us, thesis relationship raising owned funds that's of that not to just partner Jamestown will Charleston big build be account that XYZ interest. we're think future directly. not early because is and big or have We by than will us working or any with Jamestown I real going more. with get fund. in, that build North very, did in separate is partnering existing to it's XYZ investors institutional really those the will institutional is they're did for buy but us grow. be premier that Charleston. a did continues We other in This long-term funds, various whether fund. think a valid. the German their lot on

have a yeah, So, of are as our we platform. management with potential growth just toe the at elements estate look dipped landscape and for We of But all owners the do think, it. business like think We out Jamestown I again, we real managers, asset of as into I there. what asset role to ultimately the -- some when the we that's our in we at for some Group. after. will we're at And Simon that to benefit business, scale own, Brookfield, they we they think us Property or Blackstone, the looked image I obviously, think when annur look

David. Thanks,

you. Thank

Bank with Please America. from Craig. The Schmidt comes next of from question, question Craig your proceed

Thank you.

the quarter you Given do to positive? turn business, OPI number seasonality the of that which expect

retailers. it no, you know think about will I -- be Craig,

we but and of that including that and just are Penny profitable retail have reinforce on. is other so the both vast part business value our to OPI the with ABG SPARC, and OPI, in the very remember, a then still majority RGG So in the stock, of investments

put to important just context. in So, it

retailer comparison 'XX part, part retailer So the really pure whatever -- the QX tough part, and of retail retail Last of was SPARC, just the was Penny quarter, for is OPI. seasonal. stimulus

it in -- and will QX to the vast but profitable the we -- retailers. the it said, vast like -- QX. be QX, other -- it And of the will of expect majority be that majority all With

report quarter retailers or more last we comps this will comps see it's worse. part that's other QX, case, public, year. better of out In for better, probably -- profitability worse, have the information fourth map business all QX that does will quarter that much it have -- earnings no easier. in in and little -- This just then retailers create think does quarter, a this -- generally, three against create lot be you'll lot cash you this when XX%, map are is XX% Yes, QX. and a a I they'll the a volatility of So, tough a and little remember, it QX investment of our for out But be volatility. it like loss OPI see XX% will where get

Thank you.

Thank you.

Juan. question next your with question, Please Juan Markets. comes with Sanabria from proceed Capital BMO The

good Hi, afternoon.

X.X% month-to-month and X.X% basis the get hoping rest in leases, that? you the on little a in increase what's a quarter job did the to from expiration. the color behind wood while about just of chopping on curious why the and to they 'XX on reducing going Just the But sequentially month-to-month up ticked fantastic first

Yeah.

to it's are committed end basically a a operating. of going by we're the One a -- but open are already retailers of to XX% I the, made expect the stores the be lot process -- that just process. through just we're QX. and typical negotiation, of the is negotiating, so art we processing just It's the drawn-out we handshake speak, negotiating, It's of that just comments to now. and But was, that's the

items of the year. Juan, point time normal historically, line seasonality that If you look this of it's at

Great, that my follow-up. was Thank you.

you. Mike from question, next Thank from Mueller question Please proceed comes with The Mike. J.P. your Morgan.

lease wondering, you're I last year? in any signing notable in far XXXX Thanks. what been has there so compared to duration for was change

Not really. at Not all.

Thank Okay. That was it. you.

Thank you.

next with Juste Mizuho. you. Thank question proceed your comes question. from from Please The Haendel

why mentioned renewal is up that versus volume if leases first And near new I new I term? if that also in a leasing new the -- David, the I'm quarter. X% think you expect were evening. good Thanks. picked deal this quarter. that's Hey, guess, XX% earlier curious should you level in CapEx

tough Did that? We you have hear guys a connection.

You your can please? Haendel, you kind repeat there. broke a of question, up bit

Sure.

Sorry about that.

of quarter. question was the you XX% first leases the deal in volume I David, on, in my So the that think earlier call new were mentioned

if in forward? I'm Thanks. think right the would up going versus be X% level So or renewal leasing about that's if the why so quarter. of leases, think of CapEx And way XX% was curious also I to first new new kind this

on line, Yeah, some more I the deals. think -- I TA guess is we there -- are doing

there TA associated probably with So is it. more

cases more the not mean I'm are is sure TA So generally, a But TA. in answer little the at doing more you does yes, or the some CapEx line that bit looking line. we're a lot new and business

answer had the it, we're anybody hear No, back didn't part. hard call that, that. on we last -- unfortunately, we with if hear it? time but you want hear still a to I to And Did didn't happy

Thank you.

proceed Moving question. question Please with The next Ki with on Kim your Truist. from comes Bin to question. next the

good afternoon. Thanks,

however, remind And portfolio your international what to that today back where let's for David, return international earnings, to are versus, Simon's tourism, for you us if normal or you comments levels on to your level, look it? can that NOI does Going want it at say, mean tourism pre-COVID? should

right, speaking, identify say, sales you quarter-over-quarter, for our X% we that our generally generally? properties -- just sense, up I Well. to was tourist a would give we

Yes.

to rent it really is, probably line flat-line on in going bottom properties. that the overage So, we've is result more those or less

I we're reach more I'd breakpoint, area been but our tourism. manifest there. strong, -- -- Woodbury, more more more once more and pretty is year. a we have kind will California tourism international been property the New weak itself New see later So see starting seeing But has and has here say, we're international But we're we of seeing in in link. but in here the the so Florida, which starting in like and -- the we're lot in area, there. Indianapolis, to mean that Vegas, to tourist the York to starting sales York really see,

And have Vegas Forum as really then, movement what's just going Vegas we exposure between on Vegas California to going -- gets. with city, the -- important in from It's and good and -- it casinos, is Vegas is as the our crazy. Nevada. two we outlet the centers. Crystal,

activity, that. seeing we're sporting real baseball, football, of in and place to the real One, of a it lot a it's -- benefits retail just All great have Formula estate,

this reached So, helps, all that, have seeing weaker don't dollar we're and back whatever we will I news, States. the you to the come as kind today the of the as or finally itself quarter all think, vaccine as seeing manifest tourists in -- Little breakpoints, the but we're but international a yesterday. fourth come is card to yesterday's of or of finally, here, that required obviously to

starting we're I -- that was think we're So, back come see to like pre-pandemic. finally it

question Okay. for And Brian. quick a

pretty just guys a answer pretty still to of balance a over curious. have is in you simple revolver. carry sure You I'm there healthy this, logical balance a a but billion, cash $X yet

did this a year in net euros are Yeah, the Europe. balance of outstandings and right, that's balance offering our for the denominated cash -- a We exactly our maturities have as heavy we on revolver a hedge this earlier against year. they unsecured do sizable asset as investment base pre-funded in serve our in and our

par off and the at maturity. carrying cash June at we're So, maturities we'll pay

Thank you. Okay.

Sure.

Please Michael Michael. with question, Thank from comes The UBS. from your proceed you. question next Goldsmith

rent a my is for question. Thanks base Good minimum accelerating. taking David, afternoon. lot growth your

You nice have SNO a pipeline.

it long have? weigh I how How momentum year. is to factors past NOI that talking the great. the going guess your are X% about growth the continue? that guidance this All on is, algorithm? You're blowing can this question What for ultimately are sustainable sounds you

Well, look, We it think I I see mean -- I see continuing. good demand.

We condition, tied are but the our general to supply-demand is favor. economic in

I our established. spot is in our well think industry

-- we our not the where to time, we don't we with have properties. retail know X,XXX, know want the We We're our but do what want we to we mistakes make partners. We confidence them. position with [indiscernible] all

external recession the going slow do that down, environment I And or really meaning -- a so, happens, we of do I using but hate that? could be it's kind this, this to what

much, when some think markets may may we that are be do don't will Florida's, a into don't I see actually I of they Nevada's people I them think the go as honestly see going they into "kind grow don't markets regional just it I recession, I now, ask recession. of of world, me but not these And see them right see -- Texas, Georgia's, if I flatten, just don't recession." slowing.

be So what go is who if a I one. don't well, always think heard, but do to will have slows do -- I of But kind one have one, rates. some going headwinds Obviously, regional deal us cost us this to but with really just we've some it's maturity that's know, We we have rates, higher it. at rollover might through and But low that there one, debt be interest down. growth. we with

you very Thank much.

Thank you.

question, with your Tsai The comes Jefferies. from from next Linda. Please question proceed Linda

it business returns? portfolio the about you before think overall versus stable you profile of more more investment Do Hi. How longer-term requires OPI generates OPI think the the growth NOI? business in consistent do growth

Well.

I have a buying are like growth Brands left a brands buying for Billabong. pipeline. you They're Vince. They machine. got Group investments. to Authentic individual and think They're right. at the buying is huge look They've it, And instance

growing. getting integrated. hasn't still they is to that operating. opening SPARC company its So, SPARC I've at -- year, better stores, really Penny growing, growing, and new sure I'm Reebok are been portfolio better fully getting seen -- added ecommerce, that last

I 'XX. in of later expect to and So, EBITDA half the accelerate growth 'XX

La good Rue maybe retailers the we Premium GMV fire. in as have We're but -- on think by and We smaller importantly, growing leaps Gilt, which all got ground, this rocking We and merged was off it years got off is Shop got [indiscernible] we the to an up Outlets. as rolling. venture. that it's Remember investments the time. some We've got ground. kind to we're we Premium RGG, really bounds. And great That's good that it of in it it. that. I Shop contributed And we not signing our La a quite the story really Outlet RGG. joint and idea includes had and ago.

of Penny a growth in think real I pattern I those. reinvesting. So, all is see

that's in growth better brands store. making beauty investing. the think I stores in It's its getting better. mojo. It's found the Penny has We're got look

side will own -- in our in other retailer fair or transactions of but got the just they little animals their company in to add story. a OPI all that does. you has lots more retail think value. the exposure extent of that growth own invest value. their because know So opportunities We've what, I economy But get we're way, economic have And to we

So, very look clinical. we these at

created with it's money. means outstanding. very sign we've small just it look if of return remember given because what's And on our the just on been it's to been in earnings capital. it's now and lot amazing, you and return little a earning And which earnings -- it's a investment, good I is our value want And investment, here on

I yet, So, very a the I good of used companies very while We've leverage board. profitable. it, here the to intellectual partners those cetera, job. our our proud to et and better had done darn pretty we've firepower, focus Not -- across team capabilities, think make good core executive

any to years I five that it growth own it line, done now, us growth and been for very straight a but prudent and beneficial we've have these we companies. expect ups or continue. -- have more from I have from very in to be more it's don't expect and I now from downs, time We'll won't same a category, way So years XX of

could become much for that. NOI? just us represent a that And of Thanks you sense a today? of mixed-use then might of a percentage a as how portfolio Do what development you could And sense have follow-up. give

big like is It's X%, today, X%? not very it what

Yes, about X%.

X%.

big So, we're a company.

in XX%, a but road, get would we So to get why we see years reason of up range, like to don't X% but to the certainly to X% to there to, the we do that of I X% would to -- kind lot, any NOIs. take it if this a few should try be lot, accretively down a can do strive be roughly million $XXX-plus

not it's take -- time. it's So to going

you. Thank

you. Thank

the from Mizuho. next final Thank from question. comes Haendel Juste with your proceed you. The Please question -- question

in. get question, then to to the Hey, back and I part of wanted me there, thanks have second more. I my for one letting

expecting XX% of my near lease part term? in the you the new volume of it first question are over was, the to second be overall about the earlier if quarter were So leasing as volume

Yeah.

I think reasonable in that that's yes, range. a number,

recent I'm indicating March. coming if of at Okay. traffic foot environment? consumer a have for the year-over-year lease traffic. foot and question foot in on curious properties? saw in the Thanks. you second trends placer if March, traffic that's retail you're current And in the data some I that enclosed negotiations that's down We similar then at reflection your seeing is was And year-over-year X% think malls up

In XXX% month-over-month. glad last Yeah, you you I ourselves. because were XXX.X% are Well. we year have March mills that this February, XXX.X% that's much of above -- for actually 'XX, XXX.X% for time. malls, keep asked that to I'm January -- over and for we just And March for March higher over outlets give we track 'XX and --

month-on-month. it So, we're time year, was where this year-to-date, portfolio, our above we above last -- is -- for traffic

Okay, thank you.

you. Thank

Thank you.

to further for back Thank the Thank sir. There I turn questions closing like are you much. to remarks. Simon very at you, floor would time. this David no over

I and questions, appreciate and you we'll talk thank the Okay, you. soon. Thank

conclude much, teleconference. does today's very you sir. Thank This

at participation. you disconnect very this time, may thank your lines for and your You much