Simon Property (SPG) 6 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the Simon Property Group First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tom Ward, Senior Vice President of Investor Relations. Thank you, Mr. Ward, you may begin.

thank for and evening. us Camilla, you, you joining all this Thank other Adam of risks, Officer; on Simon, made within McDade, President; due and actual David call of results during factors. Chief Chief differ Chief Officer; Presenting be are and this Chairman, safe materially call the today's that quick uncertainties of Private A reminder deemed Executive may Officer Financial Reuille, statements Accounting forward-looking the Act and statements Securities a XXXX of variety to and the meaning harbor Litigation Reform may Brian

be to release note only detailed Please relating date. today's We today's refer as for risk those filings to our that a this you of of factors accurate the press may and call statements. SEC includes forward-looking discussion that information

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

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

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

introduce David I'm pleased to Simon.

with We're results Good good exceeded a off evening. our plan. to that start

billion funds from $X.XX operation $X.XX First or quarter compared were or $X.XX year. share billion $X.XX to per per last share

NOI was quarter per our X.X% year-over-year. to $X.XX contributed good income. in year-over-year. and period, approximately last quarter the QX rental compared higher real of to investment prior quarter activity for X.X% domestic share contribution in a of had 'XX. by estate compared from year. Funds compared walk property had quarter me the this first rate some operations a through were OPI from operation growth Let very highlights after-tax to a you growth year $X.XX increased Gains in the Domestic first lower from higher $X.XX driven $X.XX business $X.XX

delivered resilient the these operational momentum our consumer results that spending quarter. leasing above excellence plan for and were first continued have We

grew which in quarter X.X% includes in NOI, currency OPI quarter. at includes the and constant onetime million restructuring first SPARC for Portfolio a $XX charge NOI our from international at charges JCPenney. properties the

onetime these January was transaction They year, from quarter. charges plan XX, OPI Remember, for the improved last year-over-year from NOI not purchase of bargain million closing Reebok and gain $X process. and Excluding year on on fiscal are year-end the budgeted. these a of end charges and were part the a were retailers

XXX the continued. the Average malls the at rent quarter and Mall of prior end points compared increase. X.X% and year-over-year increase Mills Leasing occupancy momentum of to was year first X% outlets increased at for basis XX.X%, Mills, XX.X%. and our an was the minimum base

our quarter I Approximately square of deal first mentioned, we than new X,XXX X.X million XX% As activity leases the feet. volume. was in approximately signed for more leasing

We XX% to we demand and lease broad-based are approximately complete from continue expirations, retail see with the XX community. our strong

year. increased Retail X.X% the sales quarter last across the to compared portfolio volume first for

for square -- our retailers per reached increase this in year-over-year, all-time Our tourist-oriented retail sales high outlet was was sales. which in $XXX the square foot the with retail flat a quarter foot per a excluding first sales and properties an Reported our quarter. platform malls X% outperformed average X the portfolio from outlets in combined, foot quarter premium

first quarter was at costs Occupancy the the XX.X%. end of

million, $X.X close sold investments a respectively. and $XXX in OPI. gross first affectionately the known remaining about million pretax let and billion during gain We Brands of our Authentic to as quarter proceeds me after-tax recorded and other Now of platform talk for interest $XXX Group

capital Xx fourth combined value with a short We net multiple proceeds from the investment ownership in generated sale The quarter, invested the gross the ABG sale substantial billion. and period. our in yielded of during on quarter, the our first $X.XX

a Penny around mentioned and to quarter, I of $X.XX. at the earlier, As sale year initial compared in we SPARC first onetime of breakeven and the to this the nature that OPI contribution ABG in be from charges guidance to of restructuring now $X.XX the result expect FFO

-- For your around at OPI, FFO reference, share. the we ABG per budgeted $X.XX the from

half was of that roughly ABG. associated So with

on development John moving Now to an and redevelopment. at opened We Hotel Center. new St. AC

this ] expansion going is summer, are have at We in significant [indiscernible] South Premium leasing the opening Tulsa of premium end the a and we Korea [ this fall. great. At outlets cost our quarter, underway X%. new platforms blended $XXX were in U.S. as of of million and net of at across our a development share with redevelopment the yield internationally well projects and Outlets

construction start as shortly, for construction Northgate to when next interesting additional at in our what's Station need residential to months, us expect projects just is, you to project able Seattle, build we're on in is now. which lending few the difficult imagine, others We right rely very market, on including might

$XXX this around million We our to expect year. be starts

property senior $X view full year-over-year balance the on the of the our our in results business ABG made for directions. right macro in is a and and of dividend is year. payable The full Despite the an I'm $XX.XX -- ended very of investment, range that. of end in to with the year, pleased X.X%. the June $X.XX profit all of of kind year everything range Needless let at the on We're $XX.X XX increasing transactions increase bottom the share strong. and -- growing. with XX. $X.XX sorry, announced $XX.XX our notes guidance quarter of of we quarter guidance for range XXXX to to And remain per on say, our We the our first environment, quarter demand NOI remainder dividend tenant significant is million retired $XX.XX results $XXX our our the our and increasing, range at given cloudy quarter. this continues second me we current occupancy is and we're of to share moving I'm the is for midpoint. for a per quarter, increasing restate We this sheet, Today, increase $XX.XX quarter of our Now billion last approximately to the to compared liquidity. This a

We're Thank questions. ready for you.

Our Sachs. Instructions] comes question line Caitlin Goldman from the with of first Burrows [Operator

and the solid Congrats operationally I ABG involved quarter execution guess sale. in been you on get on that could the there reports Express. have news

brands, Simon volatility? potential current are So whether you the of your Express how it's attractive type ownership related insight terms to what to to you you give on Can earnings with going some strategy in the thinking having and that balance forward.

okay? to start. But unless add offered at in because it's in and for in and I you but been Express client, to overly and comments we So with Listen, in likes one no no they SPARC. volatility the have valued also we've owner always our don't done by historically, it's knowledge ABG think what not Express, opportunity. the with sense the both thank participate the earnings expertise what we we've And a past we approached jumped Well, volatility as the Caitlin, saw we us I volatility that's with were capital, IP complicated that either. retailer our and right SPARC like as -- had what done the direction, on a

it, control. we it's again, turnaround to be end expect don't expect and part But up to process, WHP be Express. getting expect the through participate does any we'd don't go of -- if capital participation. that we got in that's bankruptcy to of pleased we our So out as And of

value the and value at from good So the our of see save great we able to brand it we company investment. to create get a situation brand our it, brand. value In standpoint. that like comfortable no a given fact the a we're it's look opportunities add were when capital and It's And and -- it. the turn Express jobs, as we win-win can that, the evaluate we this case, hopefully around from with retailers we is that we

Our next with Spector line from Jeff comes of question the America. Bank of

on of it the bit your about talk centers. for and outperformance we year was like curious a sales key from Jeff. as started by could This you some I seems good been driven especially is drivers -- retailer -- if little there's more the tourism-driven [indiscernible]

that this there is just year? from how upside tourism? wondering has much of into much a remaining factor So And first the been quarter how I'm

on in the an portfolio and Sure. in in We been to Northeast market And seeing time very strong unbelievably Florida general. bullish to feel then centers, be see are continues California especially our the for some as starting in finally we obviously, And tourist have our Florida. well. quite that improvement

they whole and at as the holiday, shopping love and tourism has strong families as excel. we're a pick a We're on inhibitor of resurgence Northeast kind that with part seeing day, finally experience, I that of And the up. domestic dollar effect -- I feel comeback effect. said, earlier, even But when as of vis-a-vis currency where mean, we seeing -- product. So to Obviously, a people, of big -- their made said dining, physical go mall of like being the a have think California, I or stores continues does it's an the the part happening. with they shopping, reinvigoration end certain that

seeing So of we're pleased things. it's we're where kind

income moderating, toll. consumers So very inflation taken some pressure And for the inflation focused daunting. income its We're been under quite lower that. deal dealing certainly, that though Obviously, with the quite the time. prices on consumer is lower has now has are even

of was quarter, we'll a to more of extent, the the our and year of guys? go of cost continues and discretionary consumer right, we we So around And see that can We're it's example that continue up income think, to their hoping up cost first spend see living X% a their there. visits for good. I that traffic down, wages the area is the moderates and higher-income properties for volatility anticipate. so some or to goes living in good

Yes.

also that's a good So sign. very

question Khanal of next our Evercore. with comes line from Samir the And

least the announcements we've seen you strong, You're Express Route guess a first quarter. of that provided some last guide at feel Brian, how today? doing guide been quarter. in Clearly, guide X.X% you I do that about I you leasing from XX. David, how X% about guess, today. feel same-store but also do has

that's we quarter don't know, in feel do we on like that's unanticipated goal that But our under year. for we've know, though I pressure -- still every some you we do we update some others it income rental you we got create to think extent, I that come the feel don't our some don't We Look, year. bogeys might even on the -- might. Yes. update retailers as as stream mean, probably

feel achievable. very So is of our We kind we dealing still budgeting like on those. our do with that guidance in adjustments process, have initial

would we highlight think update could don't But some see we achieve if we with every I but overachieve but -- we the we still we initial it don't So that. we even the want quarter, to not we like can of feel deliver I it, as would I that mean, guidance. didn't might think always we

Our line next with Morgan the question of Ronald comes Kamdem from Stanley.

Great.

the mall on assets? space about sort $XXX talk is a And opportunities sell buying appetite Just be there see X peers you if go of Are quick sort and of offense that to starts you that just to given the going And assets? more offense of million sort sort fundamentals still looking the on on to opportunities go back? could there development opportunities on do are to on of there? coming

Sure.

was to environment, or but or a seen we we're at that. was stabilized not prior at to make volatility that like we've predict easier investment reduction least it to decisions. hard less think rate now. in less stable a rates it rates, I now. more We're We're feel makes more -- There anticipating a a

I would break X I up would So it buckets. into

is going and of you're the years, always supply bringing redevelopment X about demand, properties, you're wins. about X- first talking to do being our job understanding in product effort, a any on, it's X Remember, very bucket frankly, we good process, better in new that on feel be on We most The a if bullish and mixed to of X-year that. use to our bringing product the very and not talking supply.

just in as use, of be GMP are we mixed about to unabated mentioned, our we'll our XXX both County. whole Station that signed redevelopment. we as in Bray build some units Northgate and So doing multifamily part and at Orange development And I

doing the of with external that So the I goes lot our to sure and I we're say, new what just think get to a you ahead unabated right, would have we prioritize, we're opportunities off environment, deal with really make valuing job is existing take eye we when ball the And don't that opportunities, our of us. our portfolio.

a venture could it's story cash where for short, and But more to is I them. at us. say add we opportunities great to expertise price growth there external long to quality probably be our think got again, So can would assets that be have fair flow

Our Michael Goldsmith next question the line from with comes of UBS.

highlighted managing or the all David, consumer? through the health It you right of environment. like doing seems the

occupancy you another slowdown, has how space? consolidation you've think Just kind was that way, -- place able as do the given where have, said you do positioning, maybe or macro you if power there's gains it become bit sensitive consumers think less been the where -- pricing be and in the as business and you your luxury little that there of navigate of a do to reached some you you've macro become sort think you would you the

-- are we Look, about mistake no it. make Sure.

-- We to are macro macro immune environment. the not

would led to not it immune from consumer and we stress. to retail it, have with spending client ultimately deal if to less more So both We're it.

environment. is -- as my this big of the others dealing work and underlying have our comments we and earlier. when a from macro mentioned, with I And are standpoint. liquidity big the best have billion $XX done felt we've However, like our always I

and So up. here if think frankly, through go mean, coming I we -- when may realistic reasonable a it's to slowdown assume and I

is think work. and but very the rejuvenated, think really best we I when and I think throw we years, luxury get we we're that's the Hopefully, that's I in towel do where when times others our work That's spot I as tough. being of tired rejuvenated the in had back this get now, do get XX and when for when best motivated the we our get

will wishing us immune on from or be not think for it's company this our I'm further but So I it, a separate we anyone, but won't probability peers. that realistic

know, separation. have XXX% I that if happen, does confidence that I So that that in have further we'll

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

a just David, said But way. In Caitlin's go lucrative. deny a but like you right volatile, I these they in can't to you retailers, to use French of guys tone, of but I they've have that Obviously, the you question. volatility. lot I brings ton. a a to guess have guys billions made to retailer from it back ton money, could want are the word all you response we volatility describe made Yes, the been investments. that

get if So future understand better it's put the you volatility short clearly, versus source you've a the you. I want to term is that the sense, trying success made for sort weigh quarterly just express Or how of the because model you no just of where a guys or earnings a to you participate capital? been will money in

for in -- understanding overall on the our totality by It's our And Alex. we absolutely Yes. question. do new That's of means we very we interesting, good shopping extent honestly, also it's -- and it investment, it's addition center. like driven just put focus a I really building on a think, return to in company, what fresh the to -- capital, business,

again, in depreciation. yes, Well, I'll of again, the scheme hope most net you by And are fully the that is made on we again, understanding the and the And plus is income get that retailers have net money, from just -- And give the income, But example. margin. we we've really volatility. depreciation. good we volatility folks as fact things, is take is I know, you our FFO, a burdened contribution which

So add there's no back.

you an a analysis as simple on give to example. But ABG just

essentially. that share net cleared of only only we we would We just -- about produced picked tax cash. a earnings shareholder, we got we our And of It's $X.XX income. as as -- distribution. So up only because of the a billion $X.XXX get only subchapter

So we'd which amounted quarter. to $X a only get tax our million distributions,

that's So if at and the X.X%, that's bank million. invested $XX And take billion $X million. the you in $X.XXX

$XX selling million $X from went to we cash million, So flow in that. just

every we'll it, it. into it it to is -- don't have what look We analysis. the of volatility, we of it's mean it investment. goes kind at accept thrilled want pretax, we'll certainly with market the is be what we aspect understand we to good think a the if not after-tax, -- going but And So portfolio, does all

So really we can we it do try a enterprise we to that on the way does will do in but store. to these value also the add investments. make it But margin, the the not and is margin. be on some of it by think It always

new say, that, it's don't that. I that know say say investment each to it's model that's because idiosyncratic Express can happens, if again, the so hard to I that hard And is

I about. idiosyncratic, we're is more company Korea, more in X lease the we're what but we We someplace. Alabama in we're do building think all somewhat opportunity this is we're of do every in these in apartments to Seattle. Jakarta. building That's in We're have things Tulsa, space do than -- -- South

of real somewhat here, I'm little others when thinks I it hope so different could us incumbent OPI, ourselves I think you the but up that's And some think So waxing I better broader track line bit -- not of what time, we're at than we do. I than disclosures on relax us. to mean I our what from time. upon a estate, see the of we same we you us have market over that gotten but do you think do some of to

just was of made unique lot sort a if this like cash. their that the away it was volatility because it'd a special retailer and It's point be Kimco to have shame do that you it's has guys you with And it clearly, thing. of thing

line Citi. from the Mailman next of Craig comes Our with question

for of to luxury ask and just or opportunity Nick you the what income and And David, here seeking? out that you're I'm the Woodbury. just we drive kind remainder opportunity clientele some at of to from retailers, kind wanted It's of roll suites portfolio on what I the that curious did will either demand higher on VIP these of the you Craig. Joseph for additional think do saw

Listen, of think got up but consumer in the to right we can't is the think that to need of services really really that a the provided all it game consumer. Sawgrass I on the the consumer. that make I the an And they're are very word, And And It's really that estate I fine that retailer income right to I great we've need all step of It's portfolio mix. our to, high to right think -- Woodbury, having dining. focused real of be to access. entertain think services beginning the it's effort special. it's the accustomed ease just

So centers appeal -- -- XX that that we way them. team the and properties to to XX really to great broader -- -- But And have but that flows. -- ebbs best in have high we to And in obviously that's are got the to or so our meaningful landlord preferred around it we certainly is special the definitely in dedicated XX probably want want we're like the that's We've need that stay are a diversify spot. a those we retailers which XX, you really attention. world. many the consumers, cases, of range also big, they a to centers this because

very us all on step it's a So levels. sorts push game to high-end the of our dealing up with consumer for big when

will Colonnade at And just so ] Sawgrass Boca but Raton and our with think already game happens we're The you Florida. going what's the on And Houston did saw and what up and in at we [indiscernible]. Phipps Woodbury [ happen I if and at happens stepping at Oasis what at Atlanta what

me few to Just jump is a really, at for a priority really high name the company. out that

the our of next Dijkum Point. Floris Compass with And line question comes Van from

ongoing Presumably, your but mean, the have guidance just David, development, ask you And I obviously, sale, if essentially about I going that in some retained -- but flow, will. I billion your cleared there on ABG $X.X was cash. going to you luxury, capital to I'm you do ask about you cash [indiscernible] from recycling. sitting you funded was

else I cash So were that redeploy guidance getting rest if the is there uninvested assumes to what you there the higher-yielding is Or I'm essentially do further is sits to the for with investments? that guess, something of upside, that cash year? into at

you we as question. X good Very billion, Floris. Yes. in cleared $X.XXX months, I know,

right down So to just that. basically wanted mention that's bank, sits our yes, debt. now, assume it But guidance But the it. in pays I just or and

no at So our contemplated Brian, want anything? add real you numbers if is to no this really redeployment in point.

assumed the September for coming due We that we have Yes. hold maturities being. No, right. the time in would October. here that's And just and we cash debt

cash so could use the to we And that. on fund hand

markets our activities We also from our year. last were carrying cash -- activities capital

combination upcoming of will the So it maturities. our address

next line Our comes Green with Tibone the from Street. Vince of question

to JCPenney? elaborate terms you then And in and your not in that, Could in been just first foot SPARC recent is the taken trends kind great. charges near-term traffic has related outlook of the on JCPenney quarter given years closures, what of store related to possibly

So just fleet the current store and you think how sustainable? count is long curious

Yes. were $XX The charges million. pretax

are not So because of kind you the millions -- know charges funny in towers. of most most of hundreds -- it's

really perspective. to dealt with with inventory. that said, personnel it I have put So it think in and But you

X side clearing were factors that the some because focused we was of So inventory it clearance FXX that Penny in had out the and SPARC, really some on really inventory on inventory. primary and on basically more just

I'll able about don't sales, a talk -- closings. -- Penny. even to not they I just high interesting. with They EBITDA pleased we're the produce do positive there's -- Penny They're think out store no So box. is the very if of moment Penny

and think stores I few a to but will positive new here I'm there their there, as of sure can Penny opposed stores. all So EBITDA. I be a closing -- opening stores always beneficiary most really fact, are don't in be

I call good very a have low-volume of out they of stores. so having And way positive what EBITDA

public. And us, interesting again, to not this Penny's what's is

very flow, important, EBITDA there's and sales me the sales narrow stores, as out that, we're as of Vice, necessarily comp very the cash to long but But hard pressure count. -- -- it's care to I very I to enough, long what history, achieve So no it. can not It's It's you you right? long, it's believe achieve. grow. Street don't matters -- to we've do. hard are profitable that it's Wall my don't know overly what Maybe got to obviously, industry store shrink

Some by have -- to a if positive it but there's community. me, for with nothing done maintaining the store the it's that wrong EBITDA,

want lower your create You can standards but in elements if of to to you certainly can don't to business. of it how flow and have you operate necessarily that you cash in use flow reinvest mean much reinvest it, other you cash that

I So don't long story real at estate portfolio much don't the short. JCP I anticipate activity really anticipate level.

unlock a ownership just just boxes foot your Or structure. to mixed-use how you best would of that. Brookfield? guys helpful I quick Maybe able curious, given ownership follow-up really color. on properties that development these given your opportunities? That's mean pursue with the are at recapturing I'm as work to some

Yes. excellent Well, see But we -- of JCPenney look, certain eye-to-eye we how both opportunity operates deal now very both little ABG investor basically from reclaim in we I we got say all, when restructuring the relationship Brookfield on my is of first us originally, it reclaim think both did there and as us And it. that get JCPenney space of an operate in the and could how our as -- memory well. redevelop with much But and we our and bit -- I a cloudy. or should of did we it. part is to would the

about are we So near the an are we at in going a redevelop our the are see of that one embark we it's JCPenney you'll where a is fact And question. upon good ultimately to centers. future to one announcement

much So the each part I other, we each I the of exact bankruptcy process did that. give and exactly as remember how remember other count. the to with negotiation do right Brookfield, but don't don't

to then we lease. we already in what there documented, we and notice a the so it's we it's get company, -- is this get happens case, can And -- --

We So just cancel there's nothing pay. lease. the to

stores -- profitable obviously, very bit a Now little for profitable JCPenney.

new have but to of finding for all opportunities some up that's to going part make we're it, So the to deal.

Brookfield think that and there's But be I negotiation, that, be of a and we'll To that's able pretty -- X that they relationship our come with would with up part have or appropriate a value come us that And with would the straightforward, value. management to there'll JCPenney do. redevelop value to to we that. all prenegotiated. Brookfield that pretty given they be -- like was So wasn't a project. that up get the that team both from the Obviously, handful again, part extent of

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

all? impact -- said the X basis or debt, on Just you hoping assumed you now foot comments, bad if per had the and watch to basis quarter. flat, being talked prepared about if break believe so, sales in tenants. ask out about -- at I you And list your XX points a Express could you out square maybe last tipping Has changed that

any those Just tenants curious on the if color out, stripped were there's X interesting... of why

Yes.

that. answer me Let

returns. -- like we X color remember, thing the to most focus out total whole tenants the look get number sales again, And Internet about look reported were are into was the volume retailers' sales the we we even think, the the portfolio I it. with -- I we you, also, That's think you didn't for we on we know I some What is to I'd quarter-over-quarter. of this important diatribe it's flat. at. really number don't X.X%. just again, can was generally, point these if so up I that think name mean We or and to tenants, don't credit

was you months information. So the it, it's But what it's X.X% just want XX X the rolling if XX. retailers with last our okay? sales, down information, a you include on but Do just

because X.X%. total all total comp And up not the those was But is are which important number. more

But our we'd discussion. just will on talking we'll that finish. here, -- I'm leases We -- lot and don't were goes just can get and of We rejected into for what part have a on never add lot and that obviously, in a specific bankruptcy happens. on has a retailer also to Brian of where miles -- they on, be Now tenants to now -- don't response. as depending

we our our in we expense. So debt have comp bad NOI,

I think We achievable. still it's color. I like you feel gave some

to really year, So this -- retailers when Brian try to and I be for bankruptcy not but our ultimate case, lot to of are color under but But business pressure. We're we for can and was think we much Express on we budget remains in do that kind you that the spot. add. seen how -- do the put again, we Express model in don't Express, of -- appropriately impact. unforeseen out we in a too going And put comes knew circumstances. financial In give

question our Haendel from And line of next comes St. the

Mizuho. with Juste

A quick X part here.

First, on question Floris' $XX on than for cash or on the is the back. I stock the retail you wanted to lost follow uses higher The monetization. up so what

what the dropped of assume then here? the need there game? question to is less assume it's quarter, I be there? paid And And my second last properties that likely to stock fair count part XX any XX back special versus to that we buying that noticed fair that are TRG So property that is dividends on happened

let you Brian, hope expect I I -- I'll you you to... all these. answer can can

our property With X% count there were One I respect to... X went with down so can properties. buying the partner respect a was quarter. in -- interest, to TRG, the out by

the him X. Tell

-- the sheet, us capital Club, capital our of use sheet, appropriate to that and would amount and free But and certain buyback. or to flow that when a we allocation the Oaks at capital back is of relative certainly, is balance throughout that it buying are generating would balance buying X our we bought an cash stock Country the With assets us still the out what's we stock levels. in both out. of on on the capital with balance interest the decision Fair respect it's partner expect have year

QX of from were out remember And but don't near And to the ABG because happened. exactly, blacked earnings. Yes. that, just I we were I quarter add would we end. sale that

that sheet read into I too much the wouldn't that on to read that. So it's sitting the fact balance

. dividend, special Got it. the And Appreciate that anything on that. front

we There in subsidiaries. These taxable our interest this was special were required -- the REIT dividend. owned

actual payment So there will a special not actual a tax due, be dividend.

Tsai question of next line Jefferies. the with from Our Linda comes

capital fact would I just provide to give color you on you more won't that but you how assistance to could appreciate Express, providing brand? the the be

Well, I couple elements. is there think obviously, of a

the X important is most have bankruptcy. a of coming out running retailer -- the first history that we The

in doing partner and I think So we've worse, certain And we -- think our bring with sees what table. better, can others may there's better is for on not it's think agree that, the expertise but I potential that I had. to or me a that we

That's that. So underestimate wouldn't I one.

going of bankruptcy a part as negotiation. we're any is, X Number to have lease

restructured, Some get won't. some will leases

existing rent what pay so is will the Some on. and

that but happens not. or not we're -- So involved or regardless of whether

so that. leases, to other of So rent is adjustment maybe want do, on in that's do brand landlord alone financial what to by to conclusion footing. their solid process. out space the they find We just come part -- will of not But like on go part is -- necessary forth. to but that we'll and find we'd own get to what short-term have so kind we're space Any on the we of and out bankruptcy

clarity much XX% store And stores do of to smaller you all? have one close expects peers any your of XQ? at the closures in its on Because

We are involved That's that process. really not management. in

part view -- is of bidder. all. we're So opinion approved or really horse stalking I on until the won't that as That have no get point process we of at no whole involved

going the is that's all on dip team. the everything all part of else existing -- and today all it's management So with

that involvement whatsoever. in no have We

question Mike And Mueller comes of with from line JPMorgan. the our next

the give Mike. and since It's I'm it other was -- Is in from where guess the just of I it what us can Hong it's wondering, an you categories? for much I on kind is malls? seeing most idea broad-based your how CAGR wondering -- apparel versus you're of if -- of of demand or

with Sports, because few -- diverse. great of encouraging [ ] across it's to new through [ of ] at bigger go close is a Well, Zara lot doing it's the very, ], number a of we're doing opportunities Primarks Our sports-related it's boxes, restaurant Net allow out upsizing growing Abercrombie restaurants, board, [ just the Mango, is properties Golden ], world, is give House the of it. name because Rick Honestly, it's this is business very tours, where But ], very, he to JD -- us, a Lululemons unit -- seeing so to it lot the -- a we're restaurants, [ with Goose, I -- used that [ shout company [ ] we're it entertainment, it leisure a with Pinstripes

Got it. other foot portfolio X If is weighted question. sneak And square $XXX I weighted? the or guess I NOI sales, that could

just pure, It's sorry, to it that. [ or used ] like do Portfolio higher. weighted, was weighted I'm NOI XXX if we portfolio,

XXX plus or minus.

XXX [ ] thereabouts. Okay.

McGinniss comes next of question Scotiabank. from Our the line with Greg

SPARC would David, on sell near the are investments? just opposed you those future? ABG to as and the balance the retail investments, the on of looking in volatility at drivers JCPenney to And sheet to what keep the look

Well, again, accounted. equity they're

our just make on not really clearer. they're balance So sheet to us

they're a are Listen, nothing is is we them. -- in investments where everything core built So and company core. they

So at right whether would XYZ people and JCPenney, that only we other any don't and is the bid. for I we that sheet, the the every but assets balance hit company mall. and most it's hit its an sale ABG. people for assets saw SPARC, offer. the not bet, thing have, that's core and its price. my David but We Call all got We [indiscernible] view

or long there. company $X.XX is on and been again, the we're So mostly critical the volatility here nothing and again, upside. term. the we're has is that volatility look, And or reality talking And talking earns we're $XX about guys, about

put wouldn't or So sell of But it's everything want there's end and I Because the just nothing company in I simple. period the to story. that very right less perspective. worldwide and across price more the at

find really our cash, replace buy if investment we we earnings the lost. that You I back. would shareholders got to stock It's give because appropriate it we the an know why? would I know the think that simple or we or

see. I indifference you'll monetizing So am of level I asset an the am at of as highest point the about --

reached And Simon would floor over the our back like turn to of with have any I session. to Mr. question-and-answer for the We end David closing that, comments.

Thank Okay. you.

late it know the good and the it's your But interest we're thank in it. QX to Thank on you you. questions. of very always your earnings our because I we annual tie Sorry. end season, Appreciate for Wednesday. questions, We meeting -- next

today's concludes teleconference. This

Thank your for your time. disconnect may lines you participation. at You this