Simon Property (SPG) 30 Oct 232023 Q3 Earnings call transcript

Greetings. Welcome to Simon Property Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Tom Ward, Senior Vice President, Investor Relations. Thank you.

begin. may You

results McDade, refer of Thank made may harbor safe on Shery. the Executive Securities XXXX of joining this a a deemed and risk of quick within Act of and are us other and Reuille, actual today's detailed materially statements meaning and uncertainties Thank of Accounting the statements. forward-looking this Chief the call you call for release factors is Presenting variety Officer. A differ Brian call Litigation the today's Private Also SEC to that Chief Financial you due and Reform David to filings relating evening. press Officer; President. Adam forward-looking discussion our statements you, reminder on risks, for Chief during factors. Simon, the to Officer We be Chairman, those may

information of be this that may accurate that note as only call Please date. includes today's

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

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

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

I'm introduce pleased Simon. David to

report pleased to quarter results. third I'm our and evening, Good

share. Third quarter per funds from $X.XX $X.X operations or were billion

driven in $X.XX quarter the our some performance a primarily $X.XX to had you in of good quarter and walk ownership me were shares a this by ABG related the growth, operations of contributed as partial rental higher the of XXXX. quarter. noncash income, gains of of primary quarter through for ABG international in SPARC of selling to and this quarter and Let interest sale result same the after-tax third highlights compared Domestic the very

from We lower of traded our compared platform publicly $X.XX a a to was securities. other Higher and had QX mark-to-market of contribution investment interest a on setback XXXX $X.XX year-over-year. expense property loss $X.XX

real FFO in year. the estate share per prior third from compared $X.XX $X.XX our quarter business in period last to was the

So compared far, last from first $X.XX produced the share $X.XX per has for months to our X real year. estate

pleased reduced are was a during And that as we a a XX% basis. our we interest And demonstrated third gain with result, our the SPARC XX% as The with in completed partner. We significantly business. have the ultimately the as in the above transaction Shein value transaction in SPARC the that Shein admitted recognized corner. quarter created to from transaction ownership we that

Given we our in FFO fourth profitability the back-end fourth quarter, contribution lower SPARC now the expect this the ownership in from in of weighting quarter of $X.XX lower year. interest

a We family third X% interest, their TRG. portion in $X.XXX on put quarter, units interest we the million the XX% right exchanged own their During TRG. an partnership additional ownership of now interest exercised Taubman of for

quarter the the the to Domestic international compared of for Portfolio basis the year. property quarter the constant for occupancy outlet months quarter X% last includes for and our months. for year-over-year first X at currency, and grew the increased NOI, X.X% properties NOI X.X% which X.X% third year. X XX.X%, XX points increase at end first and of Mall an the was of

year-over-year, increased occupancy quarter XXXX all not was has fourth minimum Average for third above all for rent historically. outlets our was X.X% platforms. Mills year-end and year, than the occurred Our and X.X% is which is year-over-year. occupancy base last malls of levels occupancy quarter and higher of XX.X% Mills The

over feet, the in first which for X,XXX X.X more signed million generate of the million of XX than Through $X Leasing square revenue. leases momentum XXX continues leases We quarter. signed to XXXX, approximately billion across our than months square more X feet we is portfolio. expected for

We million $XXX in deals an revenue. X,XXX pipeline, have another our for in renewals including additional

strength including are for community retail many from demand categories. broad-based seeing strong We continued

Reported combined retail foot, was XXX sales square per outlets and Mills the Mills. for The third $XX quarter for and

continue to new active in development. redeveloping be We

During started at outlet new Jakarta, in redevelopment construction Brea outlet significant first Indonesia. upscale we a Mall the quarter, a on premium our in and center

refinancing mortgages rate We a of of million completed the months during of XX an year, X the first the X%. average $XXX total for property of at

dividend have common of approximately the payable on quarter, purchased a we stock our approximately increase million And $XXX $X.X for year-over-year share liquidity. for December we announced -- with sheet is billion strong fourth shares which $X.XX dividend X.X%, balance XX. We is of Today, also million. X.XX is per of our the a of

to our increasing is $XX.XX $XX.XX share. $X.XX $XX.XX XXXX to at This midpoint. year are per $XX.XX full increase from an the guidance of to We

conclude, So pleased with results. quarter to I'm our third

are is Tenant is plan. our and Our experienced at are very and of business levels, -- performing is work. our this through of as when levels minimum rent business ahead best well all at demand we time do levels some you volatile is of increasing, is record managing rent occupancy know, periods we base strong, and our

your So we're for questions. now ready

first Ron [Operator Instructions] is question Kamdem from with Our Stanley. Morgan

Great.

calendar some XXXX, about sort growth one organic on X% you've Just achievable. past, as the given as guideposts you the we're the of in to of flipping talked

potential of thinking that sort you're that think should and headwinds we about roles? cost as about how interest wondering how Just

Look, that Sure. we think I NOI kind feel of growth. -- about comparable good

Our reasonably laddered. debt is

interest next we'll some business have end we growing said. but up headwinds, we'll still our expense with think that year yes, So

Great. if and I...

ahead, Ron. Go

guidance just on I was $X.XX if I to just say a going ask can raise. follow-up the

about talked $X.XX I retailers. gain the think from lower and then you $X.XX

and is Just mindful other that puts there we of? takes sort of should any wondering, be

ends going Shein And our has mark-to-market fourth to business we up, real $X.XX lower deal. own significant but because thought of the from last public going We of the a of cents that I we're the SPARC have quarter. lost couple budgeted. we to we'll securities very originally on No, of estate what is what and -- Sure. couple to kind outperform essentially, our our a from business we'll quarter -- where been think we had of our it's our XX% growth see

Our is with Goldman next from Burrows question Sachs. Caitlin

on leasing strong. to David, I I really know you give permanent that gave context means maybe how activity occupancy? if that what could for how some numbers compares to was wondering activity, years. recent leasing additional and that pricing which you and impact could some Maybe sounds recent pre-pandemic

Well, thank you, Caitlin.

no let say particular would me address questions So I order. your in and try --

cautious. pretty to we're occupancy we'll the the doing with we're we shoes the we in higher over still performing those be all of Even 'XX, will it shape poor feel haven't it and front. we're lot's years. it's we the they're and seeing in I -- kind we're I name highest almost ever volatility retailers think a would world They're deals felt X was be for but of on and for ones mean ago, very through new categories, the don't expect lot from will our or due We're like close. the waiting in distance we where strong. on our retailers. luxury seen comparable still today. up, Obviously, we're still I But tenants, do to seeing say driving be new COVID. we some where do lot deals, our feel it I years us. be athleisure, high-end X, rents I demand than -- the -- we're a good we element. We would to X pricing X excited And and will market, guess, entertainment to business to era, it is deals with say, -- happened know in but drop, seeing cycled F&B making feel to just that that whether of in And 'XX, still obviously -- frankly, that terms year-end a are within but it's demand okay we that's I -- of is 'XX we're era way supply that favor. a that demand

direction, going pricing and is occupancy the going across tenant up for demand So the spectrum. sure pretty is is right strong whole in

luxury, that And plenty are even but stores. take cautious, are just more to being new categories, yes, growing there's in there that are certain some

really the to pandemic today conference proven bricks retailers. from calls it's Obviously, value sure through retail its I'm retailers. and you specific. on the to mortar has So that hear

So occupancy? in the making happen. of we're stuff sense, on lot that Brian, a good have something did you

quarter. was I see deals of going continue about to our just being to XX% deals the in say new we

well. consistent So quarter prior with as that's the

So there deal activity definitely is on basis. new a lots of

Khanal from Our Samir Evercore with next question ISI. is

see from differences provide if outlets. maybe a how color any versus performing your there's trying Sunbelt, leasing regional malls are a standpoint. from just David, to Maybe standpoint, coastal non-coastal on

sales tenant good outlet pretty seeing tourism we're say whether malls. on would I properties, or they're interesting. It's Sure. growth the

category. really pure our of outlet we're good the centers, in are most and the that seeing Now properties tourist growth

last slightly below Traffic up 'XX. slightly above than much generally way year. per conversion basis higher obviously, sales square a -- because are is foot on our is 'XX, Still are but

but given looking or little the in getting And back was whether growth maybe We There's in to more the people for of is tourism are outlet, good to had area business. been Sunbelt apparel Common is. no the good pretty sales question it lot inflation higher the actually has or encouraging, Woodberry I terms a that in more the consumers outlet mall which generally, pickup for really a a in California, has they're would value saw finally say, results deal strong where year-to-date. produced looking with. the decent that value

different and you there's know, difference malls between between The flat real bifurcation in number. huge that malls quarter-over-quarter. a outlets. Not as basically It's property outlets we -- no very specific. reported and And sales

quarter more QX, flatten retailers were across for didn't It had the a couple year the board. others it up. out a wasn't Luxury of tough in It probably probably. was third -- this sure. of But did specific

was So a it really retailer-specific.

to malls a little have may -- more exposure jewelry. Jewelry

chin was So some in yet a took the the our that well. performed on little category retailers of higher-end a that jewelry category more

not basically it So trend. a real was

to a seeing important lining others add? flat the And nice bit a the that is time come luxury of with Tom, bit say, lagging comeback. of Brian, They've been you than the in continues tourist and more little away little thing the a perform over that well. to make anything Let's kind the centers want most category. SunBelt we're

David. it, you I covered think

question Alexander is Piper next from Goldfarb with Sandler. Our

one -- you tenants, do and more favorable seeing terms. I'll to On with leverage So ability as get hold tangible the gain I'll you question guys the are follow-up.

et retail especially cetera? Curious in tenants if that, growth, or terms fashion like you're are which day with anchor-ish -- tenants, issues rent lease time traditionally. growth, the driving accelerate the the the to more of would has of change an ability or One translate a hot tenants the more been over seeing the larger to NOI

have don't leverage aside, I it's we for here. not We're away. What not that question a -- far of that not question, we thank over you see Well, Alex. put far really -- we retailers. away. mean, the out the that We're But

I we've for maybe built quarter, last remember, think Tom, And our many great in outlets to quarter. you diverse when going last scale, was -- It's don't many, as the years. it's the portfolio over I that what it's malls. transformation industry us was is went of but from best it Mills through up it's the unique, the was our we think size, to that's full-price we the a And have portfolio. quality it

good when today favor, And -- to that, retail So try the not of of market generating we're most I -- neither the And closing and to up, we've built. think the of demand lot so not you a malls obviously, kind good improve rents. lot or not supply nor quality say would in of retailers there. And here new our There's being done going versus a retailers bankrupt. and portfolio. and It's good. properties the stores add lot the no I is that and there's know a

the and thing -- quality, et the that addition going But have view. -- again, think they point a that in I we're most this I fact retailers or and to I'd be of interesting like is you to us for importantly, different they importantly going know think sure the that with But that I I'm -- most we -- interesting to have around. mentioned, cetera, address diversity,

going a make we'll we they do stick say and it it. deal, -- So we're happen. something we'll we that to When to redevelop know

the we job and factors know And that tend there I fair think get the they to when buys, than that or share been those to fact our more open X-way advantage as done. the quality, there's we're in going are because think that assess sheet look of some us hard, changes It's we mentioned, very we scale, that a of get of of And to I over also is but retailers, of the obviously, that. at that -- lot mall assess gives achieve. operations as I us. to They Balance we certainly both street. a you quality know, And ownership worked years. an

XX, I any sheet, that. quality do I measure back I earnings, a outpaced And I the And outpaced look take want of No -- XX our I to. and and going operations, the dramatically again, step But follow-up. stumped -- we've love peer don't we it XX, say Thank XX, what dramatically. really -- scale, X, braggadocious. if growth, mean, over this we we've XX, I go, focus you all a group group. got dividend, peer how yet, it. our for and you this, we've sounds mean, have I balance you you this you want know you. I last don't years and little quarter-to-quarter But if outpaced really you.

question Our with Spector from America. is Bank Jeff of next

David, about going the to more. are leasing the just, the to the capture comments, how are redevelopment ability continue of even Great. occupancy levels tie to thinking pipeline, increase deals the there Like in the high the and you that? satisfy seeing, the some you're And how you in share, of market maybe to want pipeline. guess, I and that needs some just pipeline to momentum out that

Jeff. you, Thank

our the we're we're capital I unmatched. to had But earlier, focused. develop of think to the be. ability got capital. look, is ability got some we constrained way what to be -- we're essentially listen, and I in not not because to And said our we've not be others We invest redevelop very So might portfolio stewards

to intend that. do we So

are Now up, us at for rates be to returns up. the same time, Jeff, have

takes in And a so X-K put our seen that stuff time but lot you haven't of redevelopment, a big was really the place. change in because

going still do because build But leasing everything I want something we're redevelop, we a to when and we have that warrant mean returns to we and to capital of just we do, new or better about job stock, amount And maintain our stock measure spend, as mind leadership saw, I mean, we position. capital every But stock just back. you to I own against about in we it back. of my have our buying our bought to

pretty is stock our So compelling.

but So jump redevelop. we want We hurdle that want got to new a got develop, we we've a high over. to

process, maintain we've what be find like and right So done -- historically, understands and to I to of But investing balance same for the expect that And us what time, alike. that's got continuing retailers the economic communities, properties in at leadership achieve. benefit shareholders, to that's everybody we position, our our here try and we between the animals.

Michael Our next Goldsmith question from is UBS. with

this some quarter, of SPARC. real estate time, same strong. of been you the David, [indiscernible] sold on mentioned you the call the performance business just this times At several specifically off

the parts about that show So to business so core continue we're you continue and to refine on ancillary you're the strength that how business seeing through? talking it that the of the of some can can

Well, and business. listen, it's very less of a it's less good and our question,

As you of X% under earnings. know, it's our

you add don't You these in it's of -- add also that when it you we which to many when we income, these have cases, the to to FFO, cases, net understand our of that add all don't add depreciation.

our contribution different. much EBITDA FFO So and are

it's don't to with Importantly, the we earnings we're -- power we in time. to to we're And investments over -- all is we amount that earnings SPARC going and over going our volatile. small our like total been earlier, get did the because profitable it. volatility. We'll these to our have -- But we'll monetize understand that, me People you harvest we going like if of endeavors. do that comparison as at because ask to even look accretive stock things buy today, continue time, we're wildly let's back

if trade You because what but And the give buyback. have do math, FFO. value investment you see a on I in us I investments, GAAP. multiple earnings a very the And we you at of would know get accretion of these little as could they

got from a invest into basically get of it's back I've a our the boy, made So money. -- earnings but But take buy they're era our time. the in them, cash, properties I or an value a of to that the at cash, get lot value no said, stock you job and it have and bygone asterisk with

that's hope strategy. answers So the I your question. that

Our next Van Compass question Dijkum Point. is from Floris with

TRG. so David, on was I curious

potential your issuing essentially are on the business? you And the puts noticed think implied how bit And there? the increasing you was ownership business what much going gets What it that in stock And I about the So also for then maybe, -- What's TRG as or a price by the little hurdles by terms cap we of sort of the at? that other you of should timing market. next -- buying? guess, interest opportunities flexibility relates OPUs. want have you in And how forward? I that rate your X% issued to was some in occupancy increasing yields the

Brian to about an you little no is then idea. can talk The Let but exchange and Brian occupancy me the go deal, big give through bit I'll a have that. just you

the value. trading is below we and Taubman faith. years. decided we is their It's the a Group has and X Simon trading to the -- reality in X% it's appraised issued firms the stock. appraisal appraised deal mean I we're a And equivocally then had made good next negotiate Property We get -- either to value. And negotiation So basically interest or interest right put for essentially their we

was stock in issuing the of not of stock a this I'm fan reasons big one at back our we time. So -- bought moment

So our the did to we'll we of issue. basically capital get that use rid dilution

had Taubman and made that negotiation, at their a it deal They right. Now had was good it appropriately. praise We faith exercised less value. or a more

And pretty the deal in with Taubman was of perspective to the where close value, put pre-COVID was where announced then our today's probably adjustment, at range us kind that it obviously, it to it's we negotiated deal but COVID publicly. for got and in we

said, is going the by We we're not? I don't once dividend that thing dilution the I I they undervalued, Group to stock will smart. pretty what Property be have and quarterize in and same but They so point, year. started back. stock know why And is family think I that buying -- left we like made next So And deal. our think Could the the at Simon happen XX% TRG. this

We're to of own XXX% happy TRG.

I think rest happen as and of on. can deal do next goes year But nothing they're doing, it's this that year all we'll they're recycles. what time to this happy the with it and sometime

answers that to hope I anything said, that, that if -- but please? that, I'll you with want So add to Brian,

Nothing on their on of come back But it fourth X commission are online really out There basis that. they major about they points. is spaces that quarter. Floris, back take to had occupancy, your that XXX question in the

So come fourth the see you simply timing. that quarter. then on in and It's just will some back

about if on my -- if had but deal was handle it. Is recall -- the rate if to mind, Got did the think may notes, if appraised the value that don't at I a it. [indiscernible] TRG? at the for correctly, time right And the way cap you -- the you you that look I

might a attributed started respect Well, number appraised per all share which range. pre-COVID, again, a go Taubman value than you due the higher back $XX that this Their to deal. we today, that time, in us, with in would you Taubman's have on view imagine. deal settled was for But negotiated if of much

ended if you So tell you at in somewhere there. NOI is $XX during that range we was in their change Portfolios share. COVID today than that up, here it a remember, 'XX. and will I higher

the but apple things, sense the of day, of far apple. an hard end not But at off. really do you that that it's and gives you're So to the

metrics the estimate. I that's of there. think all that kind a puts out reasonable But

of things under today. million And again, deal of couple huge a the a not in hundred scheme

it of perspective -- gives So but kind of you a that.

would go they the at. much did is value appraisal think not But I the ultimately than argue praise through we they higher exchange what process.

Tibone question next with Street. Green from Our is Vince

X% minimum which base year-over-year, about were level bumps. as about So same is the contractual rents

sense spread leasing metric are So in another? mean single-digit trying range? the factors here. influencing does also that or of economics Are leasing I'm there this just a to get spreads low other way Like one

Well, to is will Brian I And total mean, it. see remember, just if the I'll add this portfolio.

just thing moment and takes spreads lot, that leases go right? to a move this And So a come are out. in up

So that way. you can't really look at it

of entire So gives for leasing you a us portfolio sense spreads. to move the

page -- Now new -- driving the on that look minimum where information -- whatever some -- rent some base see at rent, are the include -- there going added there the that in are our that -- the if what you XX is driving are of some X-K, that the that rent these on we of up. new you'll now leases new numbers now XX those

touch mean only year, our of typically we a Vince. XX% I leases about

So to factor as that well. you in got

renewals are to are rents. said, leases, minimum about is really contributing XX%, which, So higher as higher balance our or the David base the average driving the new but

though fair lower than are portfolio? contractual around still that X%? But rent that my statement the my for base bumps are was they overall -- Or

Vince. in right No, they're that range,

this just bumps there overall [indiscernible] of the renewal too if they they But plus it's average extreme metrics. then And And away because like the with we I any not conversation color can means XX%, share kind know portfolio about the XX%. example, that move spreads? they're see you could is from contractual to in were far hard

some get here more ultimately renewal just economics. color I'm So trying to

again, okay, that can you're Versus of math that, from the to leases, through in no have for But that point there's XX% rent to you order Yes. that walk just going number the to we'll mathematically than you -- through higher average XX% spread, be guess, minimum base calculate just And spreads drive up I going a but rent X%. of have that go I that. we'll that way that mean, -- that XX,XXX later. X%. up, to are view, walk

you say have when drive to minimum more because much we than X% thereabouts, up the So not you're that's order over. -- that's or XX,XXX would in leases outperform to on not just say average you to what's base that, reality to going rolling rent

Our next McGinniss question is with from Scotiabank. Greg

this and Brian. keep David X.X I'll for questions you. to

being So last or the about facing about expectations with potentially quarter, the that reallocating capital. customers you today? active recycling estate Have are you spoke rates all? real at thinking more Or challenges asset financing impacting are And market higher how changed and those interest how tenants? your

Well, I'll -- the last first. it take

higher the portion would is good interest clearly rates/inflations I So out there. affecting a consumer say of

So the their I'd we're the most income brands the and that of this for on -- on kind call consumer the the affordability seeing are focused what -- more on moderate more consumer.

they're being employment So no got you is got is good cautious. and that, that's the definitely that growth question counter some having you that, wage more but news But impact. there's balancing

So that's lower not more extent income they're necessarily think. being being it's might affecting -- otherwise the affecting a they're or moderate more higher-income cautious. clearly to But you consumer the that that consumer

But view, their terms it standpoint, affecting that retail our seen point a of obviously every I demand, much plans. growth like too we earlier, monitor in said day. from from of haven't And we retailers

our cost our standpoint, from is of So capital up.

the back, or that I that's we change. don't is expect our in active that from that, given earlier, buying was get stock is investment why acquisition And we development. the return really -- I get measured any to mentioned haven't on would So return from against would -- redevelopment been make, we as and the front, we

estate monetizing to sales. us we that that work, back. at to do or it's looking through is can compelling our to always our the we're extent And assets, liquidity for real math addition, buy In we The and math the very otherwise. make whether create stock asset

see of that trend continue. you'll more so And

from Our next question with is JPMorgan. Mueller Mike

you have do if a one issue But of didn't this Just think to is you a bought a the would know back hypothetical. I shares quick stock bit Taubman? you here.

I'm way we question, think -- I the about I'm think And thinking good question. it's looking this, me let buy -- -- I would the fair sorry, a a say we're it.

development don't to real think additional that the that issuing issuance to our stuff. we dilution an stock sell I our of more buy could every have buyback with that So absent . To at answer against at we up I'm see to assets over to yet very TRG we're the case and/or price, other stock events have extent liquidity pipeline done And measured would in own buy whether very no of said, question our much, is right you much be pipeline for I've back. or the the at you'll dealing -- there's this back. stock or Taubman, on estate price have I of from redevelopment and the stock sales point. I going the this asset anything from I liquidity got, don't -- the but have enhanced extent us we time. happy that it like don't And asset to

it. Got

any I quick, just was your in guidance this, OPI outlook? And change FFO there embedded current to that's missed case Okay. the real in

you it -- Yes. less of than it We've other we understand lowered $X.XX -- the we've own the SPARC. lowered because

We guys... have lowered it for -- fourth quarter the roughly by

For would it the about be $X.XX. fourth quarter,

Yes. the in quarter. fourth Yes, roughly $X.XX

Lower contribution.

and you take we've about the roughly you in year, lowered share -- $X.XX. total $X.XX, the in if it -- look that out if for our Lower is

with question Mailman Citigroup. is next from Our Craig

rates? What's sales? and seeing to stock And are sounds an those answer are hope opportunity last you some buybacks, you've the that the markets sell David, are open to lot cap share opportunities. you of you on price a like Craig. other with question, here would disconnect in Where in Joseph your in talked to transaction you're monetization asset? What today to like? asset the to Nick terms it seeing of asset and between the buyer the crystallize an try where pool sales

investments throughout Two Well, That's our frankly, in domestic we've retail happening. lot have we But activity of some other maybe won't assets a our got is kind just not hotel stuff, but we of world. one. than is, see a there's the might think that would not assets transactions, domestic really category. some driving I think look, I be OPI the And lot stuff, residential that we but of anticipate. obviously, stuff,

question with Tsai Jefferies. next from Our Linda is

getting ABRs today? in stand grow? much leasing terms About where addressed How the then that should of month-to-month then 'XX, is permanent And been on expiring in you standpoint XX% X% to from the of what's 'XX. number or XX% and for expiring renewal of month-to-month from converted a

Yes, I of that agreed that the We're know basically in number just finalizing leases 'XX there's documentation. a are to.

the think that's generally, right first. papered that on than I would a XXs a not of now kind basis. through more halfway negotiated So we're And

you So know add be I would that's we of -- want don't to are but kind that generically. where to anything Brian, it, if

change processing see of in million effect There's matter about X.X about lag cleared And the can Linda, a just of you on call. a material square of feet the those We've over processing. It's just QX out leases. talked last our that to category. QX. it We

So expect we continue. do that to

Haendel from St. is question next Our

Juste with Mizuho.

line had retail consumer I of just a Dave, the earlier. sales quick question follow-up from on

wall from your you noted other a the hit portfolio September. apartments, We've third in retail then within consumer sales the near-term seemed a into curious sort expectations you during consumer in anything sectors, which quarter. head year. sales the your the of for if in heard like I and for what's season storage perhaps bit were next maybe think flattish as during quarter portfolio outlook quarter, your the we holiday and of that saw the September the of I'm

expect earlier less said be Well, we or Sure. we in generally, year, more as to flat. the

of be of couple of reported Again, feel higher-income last kind got also we terms consumer. about important role terms of maybe that's pretty act not will they a that our played to -- We've good in in the consumer retail have retailer balancing our sales. continue what might of expectations years. otherwise our play value-oriented So today centers for some more a

are beginning we're to obviously, extra taking -- But a it's rates through bit got inflation still unknown. little the still system. consumer. And cautious there, I is mean the filter economic that of the you've out bit I a being of because

a not fourth But downturn. cautious, relatively sales growth So the flat. anticipating for quarter, robust not We're flat. a

that. appreciate follow-up. squeeze I a could I it. in Got If

million mentioned some you talked think we started, what would projects on that a soon? hurdle well it the you to you think and higher was to where about batch continue new redevelopment need hurdle at Maybe rate. that or yields today rate $XXX is I I perhaps migrate earlier of and be redevelopment yields color where as X% and of next

think I dependent little upon Sure. it's the real Yes, -- a bit the estate.

benefits estate real we're and of trying -- for is where and that accomplish the So that. are the and what market what to

like make feel we that's do X that that's rate. the it creating might -- extent We're X, a we and we're an sell an They cap build asset that. Again, if building a we cap are. to be apartment for new kind that residential but where the So look obviously we instance, value for rates the may arbitrage, value. and we'll the got than when house. own, to We at of our lower

building an a On the happen. we're It X asset that's have we -- isn't other hand, if going to X. to

points trying view, -- we themes, is there's -- to of every else, estate. anything by have accomplish with we're just like there's what we every transaction, but do grounded we redevelopment really that real So no we do have

it of board. like capital to So because earlier, is the across up -- but again, regardless said we've I our overall, got push higher cost

in We've today. always anticipate dilutive doing dilutive, never we've that to the have spread built. don't the we and So what we quality of deals. luxury financing certainly built We've our we've And really through and to had know, as never really bought a don't you build dilutive.

that that raised. to but obviously, been expect continue, thresholds have those We

Markets. Our Capital is with BMO Sanabria Juan final question from

last, it. love Saving for the best I

list maybe could you of your commented 'XX? you as kind the watch on the comment you've if has perspective debt but in consumer, year-to-date the about about levels historical what with think curious the Just bad is been

watch list The on retailers?

sir. Yes,

There there going I'm low. weren't those. a relatively not It's are last that couple there that were probably Yes. to year. today name Obviously,

have all but grown X we're And probably there last are hasn't attention close certainly that year. it I paying that said or retailers much So wouldn't that X to.

anything? that that answer, So couple There that names. best it's a are today didn't -- but not add not they're to it's but yesterday, list on XX it very without naming there probably explain think way you names, to are couple. want mean, do a I exist a the but I good Brian,

right, a names. David. No, at but point that's or low has think relative it by X X relatively -- We've it's expanded, certainly I only And history. to

Yes. look at on? And confirm just page list to you is with I tenant what is our -- want as everyone that, that our top --

XX.

XX.

top none is top that of in XX. or XX certainly our category it's the know, You

there terms and that know, don't pay have -- don't department really as stores -- you Well, pay. they you much. rent the what in So of all pay our

Simon We I question-and-answer of have comments. our the to Mr. back session. like over reached to conference the for closing turn end would

little Well, and a thank you, finished bit early. we

enjoy think rest the of the I evening. So

you. This today's conclude conference. will Thank

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