Taubman Centers (TCO) 5 Nov 172017 Q3 Earnings call transcript

Thank you for holding. And welcome to the Taubman Centers Third Quarter 2017 Earnings. The call will begin with prepared remarks, and then we will open the line to questions.

On the call today will be Robert Taubman, Taubman Centers' Chairman, President and Chief Executive Officer; Simon Leopold, Chief Financial Officer; and Ryan Hurren, Director, Investor Relations. I would now turn the call over to Ryan for opening remarks.

Operator. you, Thank third our call. Welcome quarter to conference

future may you statements within discussion see during yesterday's differ statements forward-looking our respect and underlying conference of performance, SEC various securities and earnings subsequent and this forward-looking statements. make Please latest our reflect to with views we'll call, current and our the These risks including XX-K materially. financial reports although results As laws. know, events meaning release our federal actual filings, of for a uncertainties

our During as measures this measures G. these financial possible supplemental call, we'll historical financial also and earnings financial included are discuss Reconciliations SEC defined non-GAAP measures our filings. to non-GAAP GAAP our in Regulation by comparable when the SEC release, of information

call our include through measures and of EBITDA, not of link our from measure, periods. to In which a the section may replay or has the Non-GAAP NOI, of due Web NOI of Investor our site. addition, may the call net for and estimates a income, is this investment provided corresponding FFO Relations depreciation differ significantly performance all of non-GAAP Such and tax future after-tax on the referenced interest expense, GAAP expense management our some properties. future quantified amortization, measures forward-looking on

to your Following today's prepared remarks, Please call two. question for we'll limit open the question.

to ask have up everyone question. If the again a queue more, opportunity that you so has

turn me let over Bobby. Now call to the

quarter. Thanks, we our Ryan, released third for earnings good and the Yesterday, morning, everyone.

share line FFO generally our diluted expectation. in common adjusted was $X.XX per Our of with

lease quarter, X.X%, NOI excluding comparable Year-to-date growth respectively, NOI million NOI of up up the down and NOI growth. income flow million. quarter, X.X%, an total cash XX.X%, $XX X.X% portfolio significant portfolio was including generate was to X.X% the excluded. continues more and $XX In than In portfolio cancellations. was year-to-date. nearly X.X%, including lease and comp was increase cancellation Our Total center

quarter we the quarter, higher half debt last the to impacted As expected We second XX foot in we Trailing bad NOI comparable at expense Year-to-date, the had X.X%. made our X%, year. in points also consistent bad tougher were the per in up centers we was which quarterly last X.X%. be guidance comp. for for mentioned the square basis were rent it spreads expense third quarter. of by Average and XX-month year, our debt up a with re-leasing year, no the

X.X the to our made less points was last for was shorter we've represented all over this As signing we at choice but X.X% year, XXth, cash months. environment centers to basis XX order these of last to to flow. down the compared from last leases, maintain merchandising occupancy, spreads about September openings terms comp leases Occupancy centers talked years previously, averaging our XX.X%, were bridge up Without over in quarter. year. XX%. these XX last XX.X% Ending occupancy of the flat which by nearly were XXX consciously deals, in certain circumstances in X% XX There than and

Saje comparable points the this Intimissimi, There $XXX been XXX,XXX on announcements new from of of transition to the basis feet. greater received but September square the for of XXX,XXX we accelerated, feet absorption centers closures, last number are occupances. store in Round Since XXX that, few We otherwise. whole or few space a about Amazon be APM comp The One, the [Shoeshop], last Tempur-Pedic, expect demand occurred a stores X%. XX Wellness, to foot, achieved as bankruptcies by square Monaco, just tenant has through Natural backfilling those tenants late [Bold either remained majority in XX.X% in-place was in square continue good more up in our a released. of names. created centers a again added we've have progress have and for XXXX, sales we comparable our late and than call, will opened XXXX. Trailing Brash] the square feet totaling Of this XX%. and store closure but quarter. White we occupancy closures make months, XX, closed the the Since are is remaining by when XXX,XXX space back bankruptcies and about to tenants. be early nearly strong. space year-end, XXXX Leased Everroof, centers (ph) Casper, Demand XX or space close, Company, were XX-month The net positive Throughout interesting over in that expected UNTUCKit, spaces, center per

the of For this per X.X%. sales square tenant from foot We're the and growth. consecutive building quarter sales up positive comps ago, fifth a upon quarter, were marked year

our and Lanai. Our compared benefited best-performing quarter. restaurants Market throughout September on and In sales International important new during Japanese Baku very up comparable from joined openings opened in footwear. the center, Place, a double, restaurant, XXXX, same Herringbone August. the the XX% sales collection from sales categories growing up were total to Seafood over the are sales sales Group specialty Grand centers, at Sales Hakkasan newest positively restaurant last trended our of in August developments more July, than the XXX% contemporary jewelry, up were At tenant August number by electronics, women month Outside and nicely. were the we center's September of X% were quarter. volumes of successful year.

XX center, and bringing XX%. with quarterly sales center, to to in Crabtree to total and than more XX% Both build In that International be we leased operation. and of volumes million second at is adjoining the Place quarter which having in The rate completion. Market to Sales their averaged traffic also about tenants. year Intercontinental Inn XX% connects its addition, to CityOn. of The has XX% reopened in occupancy mall nearing XXXX. rooms, center Holiday At its ASICS, enters The March, XXX-room and development occupied, is were fourth occupied healthy foot assets XXX% year. occupancy opened, will of the the a year-end, By expect Zumiez the XX%. a Evelyn X highest China third mixed-use last open our over posted part Xi'an, quarter XXX date. up sales remains X-star continue Hotel, & which square

to who now XX and for its grew Zhengzhou, operations daily In the addition, is sales the the in strong traffic opening creating X,XXX have steadily has and traffic XX% of that center. opening are brand March. second to At institutional quality companies nearly attached office in building different sales those employees quarter. with project been Xi'an over equal since center's its the Total quarter growing of CityOn.

a center In is Starfield occupied delighted XX destination. months store, its Mercedes-Benz renovation a We're as context, again XX is experiencing, entertainment, the team. million we're Asia-Pacific fully malls being proud value center this May continued recognized and well for bolstering we're strong of addition newest retail added and first luxury global BMW, over traffic in centers best in future performance put unique its investments of less months U.S. Vegas. sales center category. will at and the automotive in last than there only robust. three in To award. this In welcomed as one will We're generated center Cooper, of this almost generates success recently during Asia the debut December, Zhengzhou, Hyundai announced grand for the center's early Hanam Mini the the our operations. in recently ICSC's first shopping Las $XXX won center's with and with opening With CityOn. Zhengzhou represents This probably for the our attracts of which in received sales. XX expansion and Hanam and vacancy there. to anniversary. center nearly be the this focus to visitors operation. on Sales award The ICSC's joining in in innovative in first operational gold now million Tesla, honor further and next the year generations center million what more celebrated to the in-demand $XXX its XXX Genesis, once award, we've top be the contended many be. will shopping Starfield the tenants. are food, significant brands, of that very shoppers than With brought

as are Puerto During the and impacted quarter, you all two Florida aware, hurricanes Rico.

September our employees first, The not and five and and impacted. were Rico and in trees, landfall Florida was our one September in to signage. were Hurricane landscaping Puerto fallen Irma Thankfully, Puerto in Xth. significant safe was Damage limited six Rico in on properties, and minimally made uprooted on Florida Xth

days. XXX XX per power to in hurricane end between as were Puerto category Hurricane due Two made later, XXX. high centers miles and and outages, landfall Maria to Rico sustained with the weeks four winds up of gusts a closed X hour However,

As our but that less the across the well were Rico staff without was of on damage. to most confirm sustained XXX% has Rico many been of was infrastructure documented, and were power We Puerto fortunate. thankful island safe, significant Puerto

in plant and of power, damage management team by intrusion along was During condition. the beginning with who impact initial storm, storm. some center roof understand The damage building, managing tenant during and to humid hurricane south that the hot the the by water our the center lessened and the disaster extremely spaces. followed, recovery on an to its areas the had In and other the We physical experts and the seven Juan exterior particularly the to The worsened site have we Without side. certain post center did actively and assess person and the October. ready incredible of conditions both worked San reopen security to days Mall teams of damage, into

unstable exception to with a However, and to additional reopen several due XX, resulted power operating with October loss, The hours did of X the a.m. closures power p.m. XX the few on reduced island's center delays. day. in each of

Saks the well as during are not they as significant damage, open given agreements, reopen. reopen will Under proceeding they're line center's it possible. But soon to be will temporary Last as reliable each before XX can and of week, to operate able retailers even of traffic, with shopper mall XX the X hours of day. generators that Nordstrom so more large a.m. reopened, sustained anchors, reopen Nordstrom to they required Avenue, the without has reopening. their to indicated damage we quickly been Fifth has provided we to were expeditiously our Given the for tenants working XXXX Saks since are power. store and as department the able. able to a are approximately p.m. expanded the estimate time rebuild autonomously a and season. any into source have by storm. Both holiday have XX they install

we have as complete to such, in to be of As yesterday, and ready for repair Superior occupancy properly Saks Puerto Court expeditiously reconstruction of Rico complaint its commence a compel the to filed, as possible. to reasonably as building the

We Again, over to I are litigation. are to difficult on Simon. answer worked have I'll Puerto to that want Puerto to tirelessly team any questions condition. you not now in discuss under turn Rico Rico, able but our so Saks very call we the happy thank the

Bobby. Thanks,

time. I effects we tourism As disrupted echo what residents significantly have, both operations the people to Rico, talking but to long-term the some with and Puerto about be impacted, island. being concerns our It's will I the know, will for comments business and too on Bobby's early for begin hurricane do want predict

While the fourth the impacted quarter hurricane results, in not foreseeable for and center's third the the that we materially will did performance be affect quarter future. anticipate

For damage removed flood hurricane San The cover this center Mall interruption our $X pool. comp to with from as single we've maintain of We deductible insurance well of million. business as and substantial Juan reason, a

During depreciation of $X the expense an we to damage the property. recognized physical estimated quarter, related million the

likely not does to same will the of anticipate interruption operating in substantially by lag resulting period. timing affect the be but that to proceeds future operations mall likely insurance business hurricane of this The the irregular. from received reminder, be and expected the is FFO. a impact insurance, be will mitigated not will We the As expenses adverse

earnings outcomes previously we San for our Now, found end we which quarter. be feel to the Page quarter rest on AFFO per guidance guidance of sufficiently the results XX more said, year, in covers San of for fourth Mall an reaffirming our of guidance, likely contribution the today, fourth We $X.XX are the likely in assumptions. the assumed know update $X.X all Based what NOI disrupted. of be That range can share. on on range including as as a We're to of would $X.XX range our will that likely our we our previous be million the reminder, Juan's the of The supplemental about lower be Juan. center's with key along the AFFO

insurance However, revenue as lag I the pointed mall experiences. any proceeds in out, declines will

differences, So proceeds be likely there items will for XXXX guidance insurance our XXXX. Percentage year's coming of lease roughly our will in the be business meaningful Other very in of rents and are they rent note the year, and with timing half impacting income recorded occurring percentage interruption rents. be AFFO and quarter cancellation in typically to difficult the to percentage final of can results. predict range

our the in performance is tenants it's upon usually the we've past, bulk relatively specific number tenants of a of dependent As noted sales in given by highly any centers the paid period. specific and in small

fourth compared the will year. quarter, rent last in that flat assumes guidance to roughly percentage as be Our

-- land lease Lastly, cancellation.

of be guidance. changed. $X be FFO about that million equates the will or hasn't us. assumes penny roughly on through of earnings We guidance final quarter could million $XXX,XXX million. million One income for Our $XX to cancellation a as end. $XX our that as believe as note for it high lease We've low received $XX as year, Remember, share

results remain So full year fluctuations our revenue. in small to sensitive very

As maintaining guidance. NOI also we our center we're release, said comp in the

anticipate X% growth, of NOI We lease continue to cancellation to including income X%.

growth. Excluding to flat cancellation income, expect lease we X%

our As range, not growth our positive center comp limits our removed Mall to projected I The this to this ability of end. be mentioned, from NOI us been top center shift from did it San year. a pool. cause we pool reach The Juan contributor center Removing the to comp had the our have however, to

$X.XX. supplemental. $X.XX to our results, charges on found Moving the quarter. next be our year-over-year our recognize on review in the for share quarter the FFO unrelated XX variances of $X.XX business Page restructuring I'll per They and and quarterly of We was FFO quarter. advisory can for to legal the costs of

result other in $X.XX generally a the of expense Excluding to items, the centers. sales quarter $X.XX. for combination of debt some a about was down at those variances. challenging XX to tenants of unknown Taking Bad our X/X unfavorable, few expenses in-process and roles AFFO from Percentage lease was Chapter bankruptcies today's environment lower attributable due outcomes. specific retail $X.XX rents currently the with the a look a

variances comp $X.XXX to were centers number items in The operating which Mina from reminder, centers, seven currently cost incorporates related Asia. Asia Center, XX Club Next, success of assets, initiatives. A assets. results two totaling G&A tower, our partnership International Market our includes in year. our the were Country been the included year. of development expenses you've including our non-comparable XX Plaza, positive and a Mall $X.XXX to for and $X.XX San NOI our Place, onetime Michael savings also in was the with favorable Valencia adjustment which a sold Juan, weighted The These restaurant statistics due of It of onetime last about sale XXXX of Beverly asking unfavorable combined this of a March fee post-closing as

average First, sales. rent growth quarter to XX, per compared to growth to $XXX per X.X% trailing weighted Average be compared foot would Through per square NOI X.X%. XX-month Year-to-date, rent be would the square foot foot as X.X% our September be compared square sales in would $XXX. X%. about

to when small volatility not rent our be weighted be in as that be surprising acknowledge quarterly Our comp X.X%. in turn a results. now underscore NOI And pool, center observers to particularly most these XX.X% XX as These would to top re-leasing square This weighted NOI at per looking our U.S. least at statistics industry inherent in in the statistic it the centers trailing Bobby. are shopping relatively spreads of assets back XXX all should I'll when XX-month average the $XX $XX. opposed foot would opposed of

Thanks, Simon.

have we're to Place and International While it adding traction. a remains assets environment, it. core Market Including continues a gain to challenging we terrific of

are Our track. at is in our significant our assets Beverly redevelopment on grow, and continue shareholders. for confident and properties, to we Center creating platform Asia, Hills, of And X Green are both Mall The great our value

up it the comment price of about to open our one to I we more stock today. Before questions, want make

assets Simon As country. amongst largest best the our are highlighted, the in NOI contributors

of Our our today, cap share total rates of assets excess means stock. and that the investors. not for as applying preferred fewer opportunity yield than cap rest income-focused Further, XX have well value-oriented as our debt at including assets, a at a free for we're the are much as value investors that today's portfolio used as in or analysts just as represents X%. share price, an That getting of least dividend market for whole,

more believe, to We NOI are $X The our as produce in growth billion, years. over in next growth three peers disproportionate well. core will to our recently spent, a capital we company we be the will than that addition

take Amy, that, there? we'll with you your Again, questions. are So

time, this our will we Instructions]. At conducting session be [Operator Yes. question-and-answer

comes question is with McElroy your first of line Your line Citi. Christy from Christy, open. the

dealing Bilerman done little color other It's most and bit quarter. Can equation? thought a the that Christy. you with the us buildings? had you Is activist Or just been in that there more on proxy. was the in give Bobby, million activist I another related? Michael land what $X.X cost given of had and that of also is

previous as in It's the rate. investment and not guidance, continues, predict. that we're to difficult not We've at run very all, should look quarterly. going It's Litigation really update you quarterly quarter's rate the a our to community Mike. you told it run

And happen. as I to predict So exactly is going said, continuing. we can't what's litigation

sort only us now. just Rico. you couple for appreciate I color can give the here. of of on people expanded shopping, sense are happening what for going hours. they a terms a the on Maybe Christy stores been I restaurants. I reopened it's you know are shopping, it's traffic, in of the what's mentioned are Puerto all they shopper know ground Bobby, to weeks

on you maybe can So expand that.

on good. waits week's I Last XX. new. There traffic it's has very opened Traffic the We so October Yes, hour-long actually been restaurants. at mean, was strong. were

been their went of said we restaurants out want to All then food. to them we XX XX what extend restaurants, fact, to open. with in We to beyond ran four started The X that have hours we to even have of X, able X.

we're So do extend how hours can discussing actually now and to that. best we

-- there their said, We've Nordstrom's very the right Saks we're got actively is now, that traffic holidays. as dozen get we even and there at open working now a now. space than more a we XX mall. the in without -- opened with So to is well, than trying for good opened XX, few less And in are with right we

think some we get we're But was So will their take that damage because pleased. to longer open greater.

up actually were sales August year-over-year. our XX% hurricane, the Before

was Rico capita really little the long and how square So the predict thesis center very in feet foot back. come will about take Puerto -- and Puerto Rico. to per traction, Puerto capita it There's square really very But see -- gaining in Juan what San remains, basic it less X there's is and per it's hard investment to Rico.

seeing and that positive today positive the of the shopper we So a remain is we're that. sign very about assets traffic

maybe a then bit And just Christy, color little I'll there. add more

stats so actually the reported worse. out sales shade of and are rent center of better. our pulling shade pulling were pool, them stats, by Occupancy growing portion little a comp got by good NOI it Our a worse. the out a and average

average Year-to-date is is points. portfolio. were were than about by -- XX rent as the quarter growth basis was was low result. of bit by they growth a points. as our average third out. occupancy a that they the So affect all maybe worse now rent basis worse pulling well, piece XX as sales about about But it didn't It in points. lower about our And much basis it, a small It are better XX $XX

from Sakwa next Steve of line the question comes ISI. with Your Evercore

And maybe First, of have seeing the what hoping the of give guess, on I then talked about NOI. sales. Simon, secondly, guys ramp I kind update Beverly an progress kind us you on could was you're Center you in there,

was still sort I somewhere about I'm million do $XXX $XXX that you it Rico that how just the think how million number in of play to feel does wondering Puerto multiyear and today? over period. into number range today a

in we're made as So large We're square really It's much in of rents. opening be lineup any States terms on leasing, announcements absolutely with a project. a of the there lineup announced merchandising, We delighted we cost, will around of almost feet. any Beverly, and we terms had will that in on are The way. Zara be anywhere in store as on We've track. that the believe year. very along number good very track XX,XXX of restaurant the first the United restaurant

center. So is expanded and existing XX we're would fully of the about and tenants -- in terms Center of to We component luxury the to growing. we ones we number XX have many before had Sin in the started remerchandising And place. re-imagination XX luxury that luxury be the expect tenants

excited asset this light, in been very we're we that positive the the Los I all papers, way with the come Beverly, well go And in are we've are with progress. pleased encourage about. very the getting really what The trips retailers the that done the local you new about tenants Angeles into way the please shoppers air, that progress space, accolades. emerging is and as at we're take have the local look we're where everything very -- to we're responding, of to doing. The have putting tremendous that So

on very where Beverly. we are we're So pleased with

is years. then bridge in, to the piece, second additional lot three a up there And tenants center to coming traffic just talked pretty the are cover I NOI two a and that business. We're your about doing They're and there. then still doing And lot still of to Beverly well. really we the the sales, of in million hanging of which in turning, guess, sales seeing $XXX Steve, in next

recent going projecting that. of projects, half there's our and three one of of About Asia. were from in the one you was development to it. calculating we it, going core, that About X coming projecting the be growth will from number the activities. Juan San recall, that Hawaii redevelopment are includes and million from in And come that core If was remaining, million in components the to to way we come properties, and the are the $XX call three third just which $XX

breaking lot those well. in Asia down, sales. So We're of developments, of proceeding a in traffic components seeing the leased, there. four are There's of being made great terms progress all in we're are them seeing XXX% Hawaii, and the great three

to numbers the three to all reminder, we're growth to assets. requires significant a that As about, to still get yields, sales Asia in of stabilized very it talking those the get

growth In Bobby as in to get about depending some that box tenants We've already environment a the Hills retail going to we a needs San quickly more be. huge doing risk we Saks on probably get mentioned quickly environment volatility chance the a we're backfilling. includes an at of do we'd summary we costs look stabilizing There's the we're the we're retail element rate and the Beverly a numbers at Sports get stabilizes assume and there. there. you talking number you. well. where to mid-three's the of and help hard would that a and in we're the terms ways spaces, Short that the good Obviously, on fulsome is Hills, in feel there. everything Juan think give But projection of to that there. got was boxes Hills, going it we we're vacated that there. give can the growth to there's retenant and made, stage, also guidance And definitely to at how identified well. there additional three to can persists best this We really track and Green 'XX. But of give for to the process as core, We're the going be about. We're to Beverly, adds the Authority I reduce it's to last the able we're this redevelopments, Green risk think We if on way how to hopefully rate when update piece

Stanley. Your of with comes the Rich question line Morgan your Rich is next Hill from open. line

if shorter color a be and of negotiating question. you is Bobby, shorter talked any we about the you to of tenant terms of could maturities for releases? quick lease about give wondering I about maturities might those any you're there sort you what obviously can sort where themes of type had tenants bridge gap. the was the in lease I looking that think mix shorting

Well, it's very very tenant-specific and it's center-specific.

As we tenants. out XX said, tenants of it's XXX

But the very is tenants our the the in have in decisions in than But XX individual of we're making less our last quarterly XXX that again, X% So especially given is specific centers. months we size results, and it when impacting portfolio basis. the at our and of it's that report. centers impacting you look opened it statistics it on a

these one end doesn't judicious may deals years. worked be up being our as it we're very them to again, make years are X.X the statistics. direction, about We've on sector companies literally several taken for less so year than average, make So they decisions. us certainly we it to in a Other where back. determining in just and different And

to can that's So do I now. the I it best answer think

that's course, really of No, helpful.

any in for. in in looking You'd sales seen are leasing was Have something environment Or that you that improving well? leasing you your seeing you an you've mentioned changes uptick that was malls, the philosophy? mentioned and are know I as the velocity

as heard. There's you good demand,

leased. We are XX.X%

emphasis backfilling and space, able great into overall by of only centers. our And not improve find to point are leasing. concepts. very new of we comments. that continue the to leasing XXXX we being for at this well an has I team that. do merchandise the we're end XX% be year. think our There with to prepared but I say in of planning a this of mentioned are ways look their that XX% complete to finding feel We bunch XXXX I actually we job we're lots occupied is opportunities, that and done to would a in that our And non-apparel our them leasing,

one I may. in final Any question, progress? Teavana that then just And a still if work or updates on is

It's square They're near locations, We in we with them. with XX,XXX deal them. have XX made not very almost all no, are feet. good center court. yet all the of have stores them generally a And about

is question Your America. with the line of from Craig Bank of comes your open. line next Craig Schmidt

replacement I Saks was on just wondering It rather, -- the currently don't on with yet? just And your under know at is can tenant tenant you redevelopment. mentioned for wondering or tenants if what redevelopment do, that any I'm Short there you work the news Hills. can supplemental was when this

We the last to continue majority and to of couple be expected in fall with XXXX box said the we that the opening on calls on we that of be track. of the Saks space

a experiential stores store And level, everyone at of bookstore XXX We the that's building along. the Canada. U.S. on the have which in that going be but to is really Indigo, looking level, called large This over and don't going on you the is their two for those we reinventing they tell And the be Canada, you classic bookstore. lower on for. tenant process expected what is Short have they're that lower one know of level Indigo, to first Hills. in in they're to we're that all going store largest which is the one happy tenants, one The going upper a

going they're As demonstrations. in an example, cookbook be the doing to section, cooking

creates reason unique. kind It's a I the interactivity totally mall. market. It unique center. to a the come lots the the It customer. within will for of be So anchor destination mean, another with totally really It's to that new

So ready we're large all luxury yields. Hills could though the yet to space expand more tenant we Short important in accretive rework happy even to and has that. to the for than able it demand merchandising the in previously accommodate. mall is tenants and much several improve going be Overall, at of There the Saks doing not We're box allowed very announce to know us a we tenants having about be. to number second it's who

having allowed also -- of XXX% to Saks store supply now was actually for really would we apparel, do that this. the So space non-apparel. represents incremental in has XXX% us which interested be of say you the the are box, I those that will this, Saks

been shifts it's in industry all some now. have our the people So time talking that again, for about of

any And for repurposing you possible other portfolio? your just, looking are at possible anchors in

where doing have of these multiple stores good. just get Well, few we -- that And in Their centers anchors have only has to is times fact flow we we three most and we the limited they're that mentioned. in we by a are the talked the have doing many well. that well are Sears only Penney shopping have four fact really a stores, about but the places over stores, tried number just enough And they Macy's stores, years cash I back of these locations. our

to they sell want don't So them.

delighted time, And we if would good and anticipate have the to of would we we all them. in with were that us come be over that case. some So Penney's will ideas this, of or back the Sears boxes

of BMO Metz question Capital with Markets. the Your comes next from Jeremy line

spreads, sounded the in terms the here more the XQ. you like shorter-term some it leasing continue do of margin In on deals of to

trajectory of about to as think think from So we we as move the about should here, continuing them decelerate spreads forward? we

sensitive just across number Re-leasing it about. at stat, that number us, But not We spaces a shorter broadly, see small leases, relatively center. small materially a space. don't environment a you with a deals whole same decelerating of represents I about sector, that that terms Simon. they're which the XX XXX period to mentioned to of any you're seeing in already same In not impacted think at the with in versus telling spreads for Because a rent as you think, retail, lower you and a growth. volatile reflects we opened it's really and It's time. sales it And it's look over the we've had. of not moderating told you closed. have lower have that the quarter, the of period It's impact lease obviously out Jeremy, given tenants stat. of spreads, talked stat and

on that's an XX-month over you really and we've We if And is also an coincidently, NOI that way. it at indication that sale also that well. are lot spreads where a few lower got weighted taking on of looked rather, that that at strong very, XX%, down. deals number There those productivity doing are do scale our very you're -- basis, look of it centers trailing are

the at or going I forward, look really you're could the should the should retailers. of in It's on As you going at you to terms to we what's or not the deceleration what you right tell growth. now is environment at what dependent look further volatility see sales a you in be look volatility to if in happen should stabilization and and dependent it with sales environment. going going on see largely to

And same quarter. today? few can update during your here We you just watchlist had us a sticking of with restructurings just the line, kind an that give on

just really the where and bankruptcies? more So relates to holidays into feeling today sits heading how it and kind of wondering as broadly, it you're XXXX in closings

there slowdown I'll has of and not actually are bankruptcy in for into bankruptcy there's reorganizing really the of bankruptcies six are Four have their any end going to they themselves to and in occurred debt half are forward. go of names that file the question new tenant been those they and Well, six no resetting but did that quarter. We this 'XX. with 'XX are they closings stores, a in, of close and the at names first say,

had almost a open that all But now six that us. we it's we've all with the first We again, we locations have call. sense starting That's six, think the said, them year. I had on for and to have, I the But those XX we half stabilize. of of things space it keeping see in now. So bankruptcies already as and about talked the it the lot really are another is this demand -- and in four of their

question is line Alexander next your O'Neill. with Sandler Alexander Goldfarb comes the of line Your from open.

$X.XX forward? First, know Simon, you somewhere goes the was don't than higher on the rate in it a going the Do restructurings should of that expect to, that's is it's think do see you where if the guys so have I quarter. that you taken, there run you we that the improve or right that's savings Or now? $X.XX that $X.XX savings mentioned

continue thoughtful going $XX really-really we're -- lower important you terms can't to the how of Alex, It's that. of down of the it's why the us In money. our come with a trending you, be I over meaningful to I time. We're to going ways of period that you're looking see is that, for the end million we for I $XX And toward can spend quarter. always one we actually reasons We're guiding to tell that. that run out think, last has to going tell G&A substantially do to cost. It's about rate. We're year. play be What manage million a

this because we we to this we about something to to As as guidance efficient plug rate, how we we're rate going to that for run to important a is 'XX, looking G&A G&A. costs continue for as be lower run spend can you What as ongoing as at and exact environment. in dollars Clearly, I when and would the as can we're we're to an it's effort it's see be to give not in for yet. going give thoughtful

both And beyond costs also capitalized reduced. how still who Simon, of of folks you've any includes just that, much is the P&L where that

it it P&L, on basis, an you've in of that? a -- So sense absolute you we Is may the can but not give reduced. see

give for place that a Alex. that we're now, is focused. I you number But right can't it a

stuff And then well. the is second question doing your Asia's is

what's -- capital timing the in decisions stabilizing regards -- the the the to China from profits try partner recapitalize totally decisions sort to of have harvest gained. pushback Puerto in Does and are any that There's affect spoke or been Does of you way you've on there's mall the going projects. extract Asia bring from if that capital You another highly two with and any there? spoke Bobby or for Rico with the to two discussion there independent? that extracting or

talked Asia. people. Alex. a Asia independent, we've we next We there. But in project to are sometime very institutional We've totally capital really terrific on great They're And the platform anything come bringing augment with would in we about that there talked about Korea do focused in from 'XX. also likely built

anything that So have we Asia, number for that's of of San be independent there Juan. occurring but a are ideas in they would

Asia project we what you or is another you that to -- 'XX just And Okay. then, be in did Bobby, in say should we expect announced say? that's heard

that's XXXX. things looking projects. at and Well, I've number multiple in project project. Korea for that we've been not That's next one one been in project. That's time one come of saying some the a That's likely -- Korea in would

with next Deutsche Your Vincent from question comes of the line Chao Bank.

any traffic trends. to curious Rico, back to then the you're back from the but are, commentary or the sales just go pre-hurricane wanted below assets a to about levels sales We still And and quarter-to-date Just that? just talked Florida Puerto some perspective, traffic trending if specifically of was you commentary. I have if on might

spending when and immediately a obviously, it's that, Florida of anticipation, this But in again typical a properties the big they Florida very -- extremely occurs the lot in having And of storm, the and during afterwards, terms storm and that there, also is this in and are assets, historically documentation down is occurring there also the in there but but our -- in unbelievable storm afterwards high. is of quarters there's some before now. two So some after right like issues. are the it right before of fact,

this better average, year-over-year and in going actually sales period, on So on that a hurricane post basis. generally see, are better to think, I the we're

first question. -- question? that there So was a was the that second the -- What is was

weather the significant just in for front so you trends seeing a fall. the been here across like It on has portfolio fourth might this far retailers Yes, far be the seems so sales headwind quarter. many

the a an people to is be that's brick-and-mortar show season. positive that ICSC in prognosticators whether as guys, any are talk be all is X.X% to you there very expectation And surveys or Deloitte or in all going Well, that as to going strong When are there area. all of plus-X% their of these the to buying range, well in or sort Bain a are NRF, online. holiday whether that's

say general shoes, home, talked food, all of strong. about that well very Just electronics, cosmetics, in as And would been a I has been statement, luxury doing we late. already have

you're basis. of think environment, So X%, positive think, seeing in This were row XX-month that. and our a better so, I up quarter on is we nearly and it's a a fifth I comps,

starting that. to you're think I So see

NOI was interruption that And then, a not between and quarter. on get percentage percentage forward? business million or down that in Can to and Puerto will of rent break expected base going just rents $X.X fourth the rent cover the Rico, whether you question clarification the

pieces. really not it to we're going break down into the No,

covers down in number can the a get over So worth that increase of was you be going the the like There all to what we're I something there that's feel through the But now. good interruption a direction different tell an terms it is each we're to -- that, in was the and of terms how before, of about I of lot that trajectory reiterating. before. go number. it's and that, NOI quarter growing to right and in of that into business going said lot number for breaking it reasons foreseeable working future. component not was and into of mix to there's a insurance that things It's

comes open. Jefferies. line Tayo Tayo question your Okusanya the from next is Your of line with

The talk a was that the portion of on a you that. believe debt and of from kind the of and of to quick what it things I me. kind you basis? up number year-over-year some it bankruptcies couple vacancies, part of Just ones bad related expense, Simon, drove Could some tenant other about of like mentioned

bad with sometimes expense. debt incur bad while. debt and the numbers bankruptcies a pretty And we don't in takes have tenant, overall. that's I we million result But you late in as the all We we're the A to tenant take large very in in that -- really comp negotiating their it's payments. the really us, an may of It third where that of sometimes small numbers. we the negotiating on based year. That's expense And third centers. really million to are versus amounts last the what mix remainder some payment. be significant generally debt, it the useful $X.X number any of negotiation significant didn't a year owed a one rest payment That's a quarter understand charge. certain got was is debt third $X.X tenants they owe. recover were tenant receivables. what's was of a with a bad If date, the third a dollar bad accounting to of to us attributable our portion to when case item is third people a on charge of number receiving because of the and a of pretty of a XQ the the again, a bankruptcies It or then So where rest by nothing we small or with. quarter you take really where also we have convention. to the is tough get pay single and one recover was tenant really decides some then last that litigation of bankruptcies. of some of about from piece gave one We quarter. that really attributable Most a tend against a coming We it bankruptcy were comp you prevents through can And for small that

of case continuing you of kind do kind of of prove to do when theory? then is kind certain current for is when of investors you execute some basically prove discuss the out you to like of strategic it you a that? the comments could get you free. think members good a at in and Is guess, kind to type to And valuation, indeed that, take doing portfolio how management way to investors transaction? Is the would really of I amount be with other you of kind want question a What it of that look about that of kind case? your appreciate able Bobby, I that it just the be a

to to to for execute. -- that community sort our sort asset Well, execute. using or And is an really do just of but not mean, uses print feel that have we're not number have I were entire the we said, it's no of We going to for question do. that as to analyst I that sell joint And the average is, portfolio, to going average number think I venture we us. the better. a There's make everybody we're a

nine, better So that we average. XX talk about you think I when would would best the assets, our than be

I So mean, I we And the the you extremely [indiscernible] a statement of it's very it's positive to our seemingly where rest well think as about get your made, share low. free. make priced price said, is, the assets you statement for

the place capital said, we we as in will So put produce income.

will years. core, And three very a over a so on that grower, be the combination next of with especially our good we relative basis the think

is question Todd from your open. line of comes next the line Thomas Capital. Your with Todd, KeyBanc

This today. is Drew on for Todd

if by reopen mind. more Just you the there remaining and is ones a holidays? Rico, stores the Curious on opening XX Puerto outlook don't for up what the couple quick

sometime in of They already. won't process most the their have about But substantial are They incur in to that by the that. be doing that won't entirely the they're rebuild damage first all will stores. instances are would of And XX, after started holidays I because year. open there holidays. they've mean, say, tenants, the I make did they several the going to make

XX will now. are process in -- is to There be XX that know probably that we

will Yes, that yes. I holidays. the hope mean, dozen there's at we a least by open

XX XX, to let's that substantially get are Then were that say, So damaged. you that would there range. up mentioned, XX as I is

the have the But would surprised be others XX upwards to by are holidays. north I we So didn't if in between. XX of

to by the of do that possibility hurricane is any form lease the at that And from cancellation anything damages aftermath -- any chance have like all? or any anchors the options due there any of

clear to the legal absolute. is that very No, expeditiously, rebuild they have and obligations

of Boenning. with Floris Dijkum line the from comes question next van Your

two it of going $X,XXX would that you one publishing be of square Are Hanam, appears foot. in a the Starfield got some On forward? sales to these excess statistics you've one probably that be transparency going Obviously, per are get square that's The not assets commitment the operations. of year in there to how those can assets? more quite we a on But yet. sales get foot trending and China

that. It's reiterating to Good of form come -- one business Hanam need three will of as has how how make that Xi'an generally I comp and prepared on be morning, information to been right calls, We and prepared it we in about not other the center and We're ours. to them we it's with to do what out we're centers center are -- because a the we XXXX. Asia and on how going will comp disclose be Asia XXXX come bring to in stats we'll two those decisions not be, those some Floris. publicly, the in on that focus facts, pool, to going that's something into tell or exactly Zhengzhou well. way And but shape be report going assets the be it now. is I've of some need to in think of we be but will to said you then worth

final Mueller question of from Michael JPMorgan. comes line your And the with

mentioned A wait an your to insurance or this carry $X.X partial are of along running diminution into of Simon, offsetting whatever Number to kind So how you you setup? at you where insurance that some couple that with until And tenants have on see tenants when of one, of that. to that in that QX one, is end check? way? collecting to and the back open type of are and during tied those you're period? collecting be you QX that. have during Do to are insurance million your Is could during hours. get going check over you and Number the questions at have have how setup rent you the Puerto back is you're period you even, Rico, are this mechanics all at up time setup the where point it then it just budgeted. going you whatever may end, we'll offsetting interruption

Yes.

may a billing rent ability the And are -- their rent the we basically, cases business tenants period paying during their interrupted. rent, for in they of and evade a been cases So give in our are of of number them leases number the has rebuild. to

those pay expenses So are We're the we have incurred. as incur we going expenses center. that to they for

insurance. But It's how we impossible lag rent are real. expenses It right we from receipt one an of recover will be the we for to significantly. take insurance will the through will FFO have interruption differences a that accounting include the tell that's interruption, now of that's Because we received. believe business proceeds. way as a we as loss the incurred, rent the that recover we expect of would result We to be them, will reasons those will the of also end to business could you anticipate lag Otherwise, do will proceeds those rent a lower for impact. of That there timing range. adjust lag. the That though certainly get it the going me to will business of the and the So that will be our get amount will will the pay XXXX rent. towards certainly be book think do it amount corresponding not interruption but lag. why long we that that It's

back everything that going and standpoint. offset. XXXX, theoretical to XXXX So would XXXX have a but this really and it know present that I you're assume guidance think is as works about If in you out running from up in how that? never way, you you

So necessarily significantly Rico that statement have negative impact a negative no? wouldn't have Rico fair Puerto that you would guidance is impact, or a Puerto or

to places. right power now of It's still of of There's really uncertainty on a Mike. lot amount in island. the tell lack There's hard a for you, fair me still

our at in there's still a center, disruption there. market We have power the but lot of

Puerto XXXX how way terms me it's So of treat we're for too Rico guidance. really tell in our you early going to to

the tenant theory, Mike, or to business whole. But theory the be interruption insurance. theory, In insurance. in made interruption the the we business that is through expect through And of rent

all all So but before, we'll of storms involved like this. ground us. nothing been see. It's we've And new for in

So..

the last And just clarification question.

got. that So in cash it your your the as terms rents think should we of collecting with of rent you booking book,

and what period, that's It's for booking. else cash you a correct? everything if get check, your is this not interim So that receivables

Yes.

coming We question did line Haendel St. have the one of final from

Juste with Mizuho. Haendel, your open. line is

peers? And signed any this heard will at point, that is of Yeah, confidence by occupancy are much point you much the bit be implies environment you. driven I to ramp a XX% seeing year-end maybe giving you I estimate then business delays where thank guess, on you guess, also, any given current how your the tenants? ended the how what's Bobby, tenant temporary also, basis a quarter. seasonal delays, we've occupancy from provide some of XXX from of

material. some but had delay, we've it's not Well,

why We open, XX. we too. increase tenants point do are question tenants in your look there. It's XXX is already season-to-season, There tenants component in it. the, that past Typically, think ready September tenants I is basis a about that quarter-to-quarter, opened have tenants when in other getting see the you estimates. to there's can construction, of think temporary seasonality important,

of can points XXX XXX to terms temporary in anywhere be basis tenants. You from

of at XXX about be years been the I fourth X% the we We're or at about, X.X%. We third in the last have end at sitting traditionally of quarter, number quarter. think, may the in year-end

based XXX consistent what So what not history. temporary on we tenants, in only not it's for is It we XXX point basis increase with expect, contracts. it's another know us to only to see

in our of opened centers that, tenant at called that up to September square large Round Great addition Lakes foot Crossing. not we've XX,XXX reflected have the in would tenant is a which So recently been very one XX in a numbers, One

So about we're the tenant, we permanent other take as when that's of you planning, take as the tenants temporary you the get well how opening big XX%. tenants that to the

I on the of a what's Stamford, to -- of quite leasing this properties sense just and bit. down spreads Noticed going give JV more, wanted us with one unconsolidated if I related your a item. then may. And get assume probably but is ABR we to that line

so comment We we'll maybe individual any pin generally specifically aren't to going on to not sort -- of question But any after of one on I'm it But the going call. center. them. answer that

ring, can in with we'll You more go give you. us through number a detail the

back now question-and-answer turn Robert concludes I over call session. the Taubman closing for This remarks. will our to

NREIT. at we you, joining on Amy, in and for look of Dallas couple call. in Bye-bye. Thank forward you weeks you all us And to thank a seeing our

call. conference today's concludes This

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