SPG - Earnings call 4 2023 | Simon Property Group, Inc.

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Operator

Greetings, and welcome to the Simon Property Group Fourth Quarter and Full Year 2023 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, Investor Relations. Thank you, Tom.

You may begin.

Thomas Ward

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

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

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

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

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

Simon. introduce I'm pleased to David

David Simon

Good Tom. Thanks, evening.

turning would company provide of our year. perspective on a celebrated like as anniversary mid-December the I we Before some company public our last to XXth results, to as

company dining, very managing our global grown have mixed-use times. premier through shopping, a We in entertainment and leader turbulent in into cases, destinations and some

approximately approximately last -- in Over resulting about acquired more assets. from properties, XXX properties portfolio disposed XXX have our domestic X we developed of decades, XX in XXX the base of our XXXX, XXX of of than current and

open our have type, by portfolio catchment large outlets globally including Asia. today geography air And world-renowned and located product you expanded dense outlets, differentiated international centers areas. and We enclosed and XX is in

supported balance a the by management sheet Our team. and strongest is portfolio top industry's

the largest accident. and most are by retailers landlords, We not important world's the

credit. current XX is fact only solid in tenants. is XX our adapting illustrated and best compared has always base top that still ago, X by mix And retailer the our changing tenant to diversified Our years

million $X.X Total Our team's annual $XX following: industry-leading nearly billion CAGR. increased $XXX a annual capitalization nearly to FFO annual in some market hard XXx generation FFO from generate from approximately our revenue from of results, billion. work including billion, billion, $X.X has resulted to million XX% has the $XXX $X increased our increased -- to

over We have paid in to $XX dividends billion shareholders.

have assets We No Those customer portfolio asset embedded years. have. been loyal growing more that that assets today including assets XX other The the are great in longevity, where want have base NOI in with These are the still our $XXX and type generation generating has business to in that these many locations. in than large NOI. are million the and assets be. retailers growth future for

evolve. Yes, Yes, Yes, they yes, also they they grow. adapt, they change. but

-- want be there to years opportunities I fourth always them. thank hidden collection within team me of And the of are a quarter to as assets Our let our to company. cannot turn And have contributed XX public success now Simon entire 'XX results. replicated. hidden who

billion $X.X funds billion per returned share $X.X dividends repurchases. from in or operation XXXX share shareholders to approximately $XX.XX generated in and in We and

billion or compared FFO per $X.XX quarter, $X.XX the or For share. share $X.XX billion $X.XX was to per

for through you compared highlights QX walk me the XXXX. of this quarter of to Let some

compared from this to quarter approximately income with performance Domestic operations year. higher growth, fourth operating were lower the activity contribution rental had primarily lower of comparison, year-over-year platform a investments contributed investment driven higher and in terrific last $X.XX a Gains by quarter and $X.XX in other $X.XX expenses.

'XX $XX.XX $XX.XX X.X% share real for FFO last the per from consumer per year. $X.XX estate last for X.X% from quarter to compared for leasing was resilient our to deliver our year, That's expectations. the exceeding growth momentum, spending, share in and the Domestic fourth the business year, $X.XX compared continued results for quarter initial year-over-year and property NOI operational increased X.X% excellence, year.

pre-pandemic which year NOI, and than year. X.X% ended the X.X% higher NOI grew XXXX the includes for levels. at our Our the for quarter Portfolio constant international currency properties

malls occupancy quarter of was fourth for end at million Occupancy in the year. signed an points XXXX the of platforms. year-end quarter minimum fourth to Average our mills X.X% more basis quarter. outlet the X.X%. for rent We than base occupancy year-over-year, XX X.X and increased XXX The Following above of or for increase is increased was compared square rent XX.X%. last all feet XX.X%, and mills the levels leases outlets approximately

leases, in foot activity $XXX square ] mills. for square per the rents of X,XXX renewals foot. going Leasing [ signed square and new for of for combined $XX over year couple deals $XXX last XXXX. were quarter million feet. XX of For momentum approximately in per Approximately had year, Reported $XX of the XX% the foot per rents into the outlets, continues for representing more going per than malls leasing we years square our and at retailer sales approximately was with

in of after-tax proceeds the $XXX million of a pretax million, our quarter, gains sold we of ABG and $XXX respectively. and gross During reported million for interest portion in and cash $XXX

Jakarta, Yes, in yes, We complete this major redevelopments significant Europe continues outlet opened We one last projects XX one other XX in year. our year. And on in Tulsa, Indonesia. outlets. development we'll completed Construction and X Oklahoma.

that redevelopments over of projects There're ones internally flow after X to and our Ann start Seattle Rosebel to some from cash Field. to generated expect billion we begin dividend spend fund of projects $XXX these Boston addition, construction around this payments. mixed-use $X.X Arbor year this year, to County Orange with planning million to on are we In and mixed-use representing to to expect X to

in our offering. $XX We to extensions. and including completed billion billion for billion $X offerings secured loan $X and we senior exchangeable billion, note facility $X.X XXXX, and activities revolver including During financing the credit upsized primary of recast refinancings completed Klépierre X approximately

strong ever. as as is sheet balance A-rated Our

have billion We $XX liquidity. of approximately

common X.X of in million repurchased a we for $XXX payable is our X.X%. We increase stock XXXX. billion our paid, The announced shares per as During year-over-year quarter, the of common share XXXX, $X.XX of over XX earlier, dividend Today, of of price average at we dividend XXXX. an I dividends. mentioned first stock per on $X.X in just March share

on to XXXX. moving Now

is Our per to $XX.XX FFO share. guidance $XX.XX

Our fixed the net assumptions market share, guidance on reflects current approximately NOI following X%, and expense per XXXX to increased property interest cash variable of $X.XX assumptions: at balances. of rates reflecting debt least interest both and domestic compared $X.XX to growth

approximately share. other Contribution activity acquisition our count million or from -- significant and disposition diluted share $XXX platform shares. investments other approximately property per $X.XX of $X.XX No to of current

safe enter to you as for XX it's public said, that say and to a for with time, excited we're Q&A. ready So your we're year Thank company.

Operator

is Sakwa with from question Instructions] [Operator Our Evercore Steve ISI. first

Steve Sakwa

And just dynamic maybe stand are XX% maybe talk ago? portfolio? the you pretty how the was year bit change tenants? today wondering pipeline you sort with I full in a maybe of about where little you're things the that conversations that given versus if and having leased is kind the can of pricing and what leasing of now And the kind

David Simon

team and there lot to we're obviously, always growth. generically, retailer beneficial spent mix. we're time we're XX% very and with to myself our of And remains a adjusting part Steve, though sorts demand so strong. on all looking people real doing. mean, my they're what on leasing We're is centers to interest retailers that our trying leasing of our mix I leased, would and be NOI I often We're even always improve a say and populate Well, I always by to shopping -- our just of

think foot our foot. new a as thereabouts renewals I probably So deals $XX or are you saw or $XX a

XX range. Our leases expiring X year the this in ] [

retail generally million our low favorite. spreads. properties big the to is demand Supply be So used year. and feet Historically I supply square country. real estate XX positive every we're in built mean, there across of seeing

essentially Now a million few here less and than there. there's

So there's supply well. shrink -- which and the obsolescence, been as then too, makes

the very new bricks -- there's stuff some So on of e-commerce And business the of all acquisition, just is mortar e-commerce, about wrong, to the -- -- said cetera, et things a the great -- to with. the continues West stickiness, me I of important. customer them returns, do critically retailers get we all don't of is been then that of and challenge. higher. never of cost that seeing importance we're all cost excited and has But Coast, about -- be was

you If they problems. at pure run online, looked the into marketplaces that

bricks a So they really for survivability. be need and to to really mortar you're connected --

couple mean continues improve terms even execution, across bounced We're in things those from are being function a finished continuing a of first, the we've not of not function we're And of very it's and years a our function but it's one had much across strong. all focused good pointing retail and really of It's lease-up category, back board. the and of one properties a which it's though positive depths demand But board. picture. a So the I pretty of pandemic. of to about. retailer, to the

Operator

Stack. question next Burrows with Caitlin Our is from Goldman

Caitlin Burrows

give more in you plan do much ABG could influence OPI the How decision? some your more what could that or you sales whether could worth? us remaining David, much that And to think how be own? still you on you you maybe detail 'XX maybe referenced, monetize

David Simon

stock. X% Sure. we sold Well, of let about me just -- ABG our

to of to continue have under growth to just then butter we but get priority not XX% we we be. that And a these the look well. will been, to I'd and that we ones, share. big investments. just So smaller where them of strict the under number call just can to deploy by monetize creating But good from there's if kind into adherence ones as capital are that, large, Obviously, And synergistic we'll from that's value. a us. essentially They've XX%. investments better And across #X what very our went the think

bigger us So surprise me, Obviously, wouldn't these continue of for Caitlin, are some monetize. value to to bigger of investments. it

So monetize it to if very get smooth, back a it's it easy to those not we're into business. on our core them, we can are And management stick return, of assets. one in going portfolio do focused plowing better but that we

Operator

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

Jeffrey Spector

the congratulations anniversary. there's a of First, initiatives. on David, lot

about key next as about excited a is probably know question, it's the there that next as you're I think about years, So X X X difficult you you the X think years? most or initiatives but

Craig Schmidt

of look, we're on There's the on in, bringing that exciting that Well, couple ground. a things department mixed-use the and our the we're doing of redevelopment store the as are interesting all that probably I'd plus no of level. most property the things stuff say question boxes

-- one. be would And number so that certainly

not that see in about China, where based incredible that. young Southeast -- when you can Jeff, it's incredibly -- robust an very It's not history Southeast we excited Number an in Japan population it's terms on our two outlet places I'm than is, market, the in growing. kind growing and of like in on like it's a and Jakarta do where not Asia. incredibly business say side. like that in I'm I anybody we're And with previous Asia, know outlet Korea better that of your probably we places what --

-- exciting. So that's very we

to I'd technology loyal enhance their bringing say experience are with still to also and now them that we us. shopping consumers in allow pursuit of the our

what can center building retailer, on a for lot there either of for our a if marketplace search property a this outlets. what black some in I great obviously, There'll in news And marketing, -- the be that they're premium is can loyalty, search the base got we've buy consumer, previsit, example we're our that ties year initiatives where or this dress, tenant looking front. with signed it? So on into we're

about interaction loyalty the system a that reinforcing making useful it rewarding trip their focus. customer big shopping So expediting more old behavior, and is their

business. and more got this that good great proving important, out is them The our number are our or coming for a realizing them job evolve exciting to is are there a retailers of more we've great with exciting And entrepreneurs centers then to really more more then up continuing place as concepts, and and is do that are X thing I retailer do mix. just think to

are So those that but mind, come haven't there'll thought be ones that the I'm ones to I certain even of.

Operator

Goldfarb with Alexander question next from is Stiller. Piper Our

Alexander Goldfarb

XX% at less is So you opening, that dividend than NOI think now pre-pandemic. exceeding The mentioned I the within pre-pandemic. of is

sort And reinvestment. thinking on questions Steve's about of and Jeff's

a demand, physical as back getting function a higher in that surpassing level, given just again getting opportunities, dividend the about that is think retail, with dividend that delta to expense people lack trajectory opportunities about investment you pre-endemic the investment of really supply, now? As meaning Or really the pre-pandemic, does growing meaning you is interest the especially the NOI back the rising interest once think to dividend change are of your really better that of are that's capital? function there pre-pandemic versus rates engaged

David Simon

Alex, mean, we is of tomorrow, okay? really So right? could free look, ridiculously pay have [ I So Well, flow financially hot, that's we dividend. cash yield -- after our our billion $X.X ] XXX and

like mean, don't trading So high it has with we like do financial we nothing we -- like at wherewithal. to yield. I would this

investors. the the center think So group. I to kind look again, rates We when XXX, as I strip is events. continue our look And that's high REIT stock yield we think anxious I how these We for buy additional at to S&P either still look at of the Our have look back. we it. at at -- still capital are peer what I plenty

-- of per high. is are before under without a right, our close yield look is we yield could ] all our we than be. it, you but tell X%, mean our REIT little lower Xs. investors, know trade pay Tom think on evening, S&P that there it higher certainly, basis, We're my will should X% if like yield. quarter at is too I strip the to to X%. I a Because X.X%, it it [ XXX centers, but So blink, okay, be in the tomorrow you And would

Alex, to the So pounding I you table. mean, be

Alexander Goldfarb

customers the nonpaying call. to ones are Yes. customer. questions. listening the asking Unfortunately, I'm just real We're a The the

David Simon

way, are the we your so -- there. just we you like welcome know, out By Absolutely.

the but of we tell you okay? end the of are, going west and We where exactly Hudson. may the not are west we're are Hudson, in not to we to We the night, be

Alexander Goldfarb

Vegas Sunday. I in this be assume you'll Las

David Simon

I you my can't tell Well, schedule.

Operator

with Goldsmith question Our Michael is from next UBS.

Michael Goldsmith

the foot your David, are low or sales up slightly. in healthily tenant while single-digit base down year-over-year, rents range are are

reflection before about their So are long rents have -- of dynamics? some these can experienced how And a these up straight of to that just tenants kind you just like of Is come the sustainable dynamics talk a to little catching the this? bit of have sales down? kind your started

David Simon

Good Sure. question.

rents, this, think renewals leases will new rent sustainable. much I So say I going-in or are the -- the very

If are so XX.X% most think sales are would and that historical our affected And to also our and tenants -- cost, XX-plus we reporting you get than range, also end to are at of they have us, ability they foot by don't. our they look We would the and actually to we're cases, still returns. In some cases, the at caution up our before. at I occupancy the per have I they somewhat these report -- low higher run -- offset percent In this. on. but sales returns or they are

out So I there. just that put

actually were returns. and a likes years sales higher that affected ago, So I Internet but they're wouldn't think from it, some know properties And maybe market mentioned X, I then returns. we the of -- this our somewhat X -- come pre-pandemic, our returns by think reported we are -- lot we probably those and I certainly sales

they even from our So don't properties. come

of spreads so we the feel and renewal just at like and we'll that again, of demand, over And new and retail generate couple low when seen to look able years. sales, high last we -- kind be occupancy leasing overall the supply cost, demand, it, we've

Operator

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

Group. question with Our Craig Mailman next from is Citi

Craig Mailman

team Just the going maybe back here. to reinvestment

today? a after X, how recent curious, closings, look good. the guys what -- of but talked what ANCHOR kind and you maybe plenty lot to portfolio next think of actually just you reinvestment X back over guys you just And is after And they were Macy's as guys the is environment years? -- to at do give cash just need kind the kind have of You I'm point, ultimately about get spared could you you leasing given at Box retenant just today, some dividend. have this what the and of do You of of the level the

kind of today? the doing backfill retaining be for the boxes And luxury to outlook the those to makeup option? able what's there? still What's Just be enough is kind targeted of primary

David Simon

-- own, department the it top ones basically of off the don't have on my the boxes, on Craig, Well, have work we head, but don't store I of ton the we do. a to

-- We have just was mentioned boxes that on in -- handful instance, We and for the process of former we call. that like, store. Sears I a own that a are that briefly

You tort now, now. down. under It's in development construction

are manning are actual stores construction not that process. or we either at So under point the currently under this probably XX own that in

of amount you that than boxes opportunity think. co Transform The small very does less so and Seritage. So some an of we owns of kind ones still

So role properties. in our

of So for eventually, could some that be evolves. we'll how buy mean to us I opportunities see redevelop. those and

on deals those these be But find theme I on and of dominant we boxes. has ask going on is don't to the -- mixed-use been made the a haven't sorry, think really We too just luxury -- I'm in great. because these -- lot

the be well. lot on and opening a development worked that's continue restaurants closed be doing. think obviously, so center of we're I entertainment opening up it's -- And will a very mall and to the up in it if with that mixed-use

be under back. buy that to It's more might pipe So number we big construction. you until don't boxes really construction as It's as that about under not -- of handful. deals think. the only make have we But or some to have existing the a we

none they you're announced store closings, of some which ours. Macy's are Now as -- right,

X went point would most customer. have [ how ] out, center are And portfolio. to whole matter back survive to to always out risk. and they're X So [indiscernible] operating of if the And us very exactly as boxes the business? a mall or it we've nonevent was going might importantly, it where between knowing the Department going X But very better. that Sears focused XX%, think you it? actually how frankly, time, the those stores the we of fact on to we and at you made of we've is the Sears survive I business, going The when I down the we're out No. are at market anything, gotten be believe

the a will -- the that something as basically look at as portfolio. about we box exist more in We in And -- progressively could don't enhance we aggressively really view that that So and as survive the Box look don't worried changes properties we're anymore. it assets portfolio concern. our that

So that question different a might have if me answer. I you years XX ask ago,

Craig, like But you your you've I'm sounds will. Sydney voice. prior to better I get conference, it hope the you sure lost

Craig Mailman

hopefully Well, then. be on mend Yes. to by the

Operator

Our with Vince from next is Green Street. question Tibone

Vince Tibone

or Could be better you should and later the expect stabilized how help projects FFO redevelopment in the understand me better any to us color from incremental we of development FFO in that or 'XX timing all helpful. activities development incremental slated to be would understand Does from either in 'XX finished NOI help much 'XX?

David Simon

Yes.

In fact, it's interesting.

building You have that's the back. time, actually example. but trivial take us 'XX, goods. Sears just outdoor now redeveloping, former shops. you we a -- third whole the for step Dick's to sporting I we're wing Brian department think mentioned a a some that We're store taking give connected we're less in I'll I

leading we'll Sears. fitness to in apartments had lifetime of 'XX have say it And say resorts XXX case. to roughly until We've it, they end do a de-lease But I'll open anywhere to ultimately that then put best We so. and remote won't but wing or

have the and -- which the of Tolson the would large, redevelopment that of And benefit but air, opening story. So shortly. redeveloping, 'XX. 'XX. the a is really I listed, there is, Ray's in handy 'XX the really do the we've late be really this well. its all summer. year, believe is with of is number just story. stuff the marginal we'll will that of the a of XX.X% don't I impact I have and it if see going gets don't None it as it advance opened will in with one and by more we see That of leasing the all near in We in U.K. this that have 'XX, that meaningful, kind a That's most most one But is a

Vince Tibone

is of how I start. annually, of, trying the there a plus billion that's maybe any model let's spend just that's for No, assumption stabilizing X% you're $X.X going that's like mean, call million I like we really what what's to stabilizing? $XXX how helpful. the today, level and in it's -- $XXX to Or terms terms for 'XX I like lost a out guess, acted it million it, 'XX, mean, fair yield in X%, mean, I'm get that assumption? fair -- of quickly I

David Simon

that. appreciate I No. Yes.

If million can bring you is development, lower ground a cases, if some would goal X%. million would than don't probably a say what I north create up it $XXX be that multifamily, and new at And you Obviously, in in $XXX saw, hopefully about at value include our that. I subbing building at we're north still we're if of between we're And big yield to there. year. But that we apartments be construction lower for be building Mall, yield hope and of round to a down about the -- the former like, you're instance, else, Northgate the so kind ones would start everything that. talking that, to in X%. We'll at that of basically both than

Operator

with from Kamdem Ron Stanley. is Morgan Our question next

Ronald Kamdem

Great.

really Just core a NOI. X-part starting the with quickly,

sense well core. of Just on much about should of what sort first touch that in the conversion? you how much on thinking investment, just trying as is then to tailwind be year for the to 'XX of of recovery the to touch tourist sort part we platform the other between how volume could there on is you 'XX, get the seasonality XQ? maybe a can And of and just and Just much as upside variable how centers to the fixed a and

David Simon

Sure.

you my chime in give here. then it thoughts we'll correctly. hopefully on will and I'll Brian, Brian head and just bring some -- So

in from centers. say would we really tourist decent a So bounce I saw 'XX the back

a Now I great give example. you

I good I around of and this Barry look bounce which, What the bounce is QX QX must -- $XXX my highest noticed in I were at had been doing -- back. have million, probably time. So was quarter back me, an for job, example quite just the but indicator to happy fourth real sales obviously, sales and to okay, a there is some in we've QX,

in I area really So an we'll expect I'd seeing impact do say, we're the the think Chinese centers. I on that generally, don't good before not they not the see the tourist bounce have come a U.S. back have obviously, had pandemic. back we to one Chinese will -- do the and think -- us. overall, way we the

And for tour outpace average. for the our sales did and 'XX our centers -- just our portfolio on

to the we back bounce vast on I the revenues we a would majority, both but it, the again, to our percent me, And won't and about that's lower available good need of think see continue then -- across board. correct me. as is that Brian So say increased way correct I hopefully, your think to is rent, to interesting variable Brian --

improvement $X.XX, our that Our had domestic went Q-over-Q. down. And That's $X.XX. income $X.XX within operations variable of

we're way getting gives leading working kind think still into and of barometer, of you rent. our So I that base down, that that kind we're a

most this And then and margin. QX but QX the $X.XX. to final it's usual, little only than QX relatively $X.XX your year, is then QX, of -- in lost on QX. on it So -- better OPI, a only and QX projecting flat

Operator

from is question next Our McGinniss with Scotiabank. Greg

Greg McGinniss

gains dig to last that cited similar $X.XX assume to it David, Is improve or to to year XXXX? into FFO I a the just contribution to the to at from in OPI particular. guidance $X.XX you the bit just monetization in includes fair expected $X.XX wanted minus or operations that

David Simon

for big we any 'XX and tough we're Yes. the operations. in budgeted And OPI. a our answer had a Thank we OPI, we And that of onetime or again, or we sale I saw -- mean, that -- kind mean there. it. is the just yes, had That's our year by no. are We -- in both meet I And with. team recalibrated no gains expectations didn't And of -- you question. when expectations and partners our pure

just this theme a efforts us, be And across a that dealing we're significant consumers within with performance. inflation own the embedded the cost to board. was it's lower-income to thing we should making still -- are has overriding figure inflation a again, to. the still their lot as news things have the with So that and improve not even they not but still subsided, increasing, than they The money is they're it's and partners deserve. was sensitive discretionary that and overriding income they is And used And that need good business their more in need out position they country. the we income to though

Greg McGinniss

So just clarify... to

David Simon

Yes. no. So

answered. So hopefully, I

of the the really and 'XX, where ourselves level outpaced think a I And getting this pre number We in kind 'XX is of kind are. in more the year step of extraordinary we're gains. back, now if time. of kind we're at where So stabilized cared. is, getting back of was and to nobody number. you numbers no go we're And just a 'XX, OPI This back more Hopefully, a conservative, where take -- that's kind 'XX. kind onetime being it extraordinary the of to

Greg McGinniss

operational do think this that going just And those and implies going going your driving what of be operational income? make But for to of growth. the standpoint to How guess, other you in be customer they the same clarify, to I sort so are retailers be of that the are some tenants to kind to improvements So terms operating, are year-over-year benefit able in performing? in portfolio? there's the to changes

David Simon

talking Or... our just now, you're base about question? that the Well, tenant is

Greg McGinniss

your yes. plus -- a tenants, guess I

David Simon

Again, hard -- Well, in Okay. ones that. the the mentioned with they to produce to kind of kind you used mean, plan we're place think like 'XX. we spoke of underperformed was. than right and the we're it we'll we the number very and we And outperformed ones said, look we're have 'XX/'XX, on in better where I really that's And track, Penny, back pre-pandemic where and really 'XX, to 'XX, all Spark be. the you, hopefully that I results do in and in and conjunction generally, I if working think getting these I we to. really in at I

any that. to very plan and are Businesses have simple the As moving. smart, I is -- so right are mean, I'll other retail questions. Penny, would as specific. move questions that's Brands your we're good. game then on I that,

reinvesting a spending So to and generally shape. they is or stores. the in buying doing of They're I about. are X really the us, There's bricks open or the financial the there all on mortar. good importance is think our for stores somewhat we on back putting proven But X retailers and their more nervous technology, money understand there credit return They're which less -- in that -- X stores. in they're tenants always good is they're in investment And that. model,

financial there all be There will I'd couple generally, the we're that that comfortable, issues. a with sort So say here doing always and retailers very through have their to comfortable with. business

Operator

Zhang JPMorgan. Our Hong next with question is from

Hong Zhang

this as the portfolio that I what Wondering if this that portfolio you rent drag saw year. quantify fourth and the Talman occupancy what strong expectations you development of drove the year guess was well? it and also, the like for your in growth I very wondering magnitude And could are quarter. a in seems

David Simon

demand really sales, NOI mean, X%. are right that I expectations things the mentioned all excellence, and is the earlier. tablet, drove I to What on on the roughly excess -- Just in comp both on retail of operational portfolios on supply

listen, but don't We not excuse. not so So being company. did redevelopment. it's -- it's about big -- some drag It an We not from have we're redevelopment, and worry it. much it's

or better You you some And year restaurants I've new tenant, -- is business before, be when as -- out have a we the the better X And mall, to over portfolio a build as cases, downtime. build at and least XXX this so. new know, year. mentioned you can months retenant next to the have And restaurants our close in out. you X the is restaurant the even

I a in Bay is where the Supreme So up they you cook the process, in you really hook getting gas. a had Berkeley couldn't And can Court bored, we arduous with center. Area to gas just encourage got it If a back overruling thing crazy read affected the read to We it for -- you're permits. like it. guests ore finally long mean, while, that you know, of as into the

say just that's number, X really the issue year a a to delay I -- make the is it $X.XX cost redevelopment was if costs retenanting. it on much I But us large, bigger But that's and would mean, downtime. And up to normal. So so just it months and probably not say I'd had -- us $X.XX guess. -- I on a

Operator

next Kim is Ki Our question Bin Truist from with Securities.

Ki Bin Kim

Just a questions. of couple

were XQ. what your just and that's down sustainable? drove Also expenses operating curious First, in that if

Brian McDade

to we seasonality some bit it's savings some yes, Yes, little Brian. There did expect was it's year-over-year. Ki, we sustainable. was it. a Weather do But lighter. Yes, see

Ki Bin Kim

Okay. partial billion the And a ABG round valuation mark $XX was on sale, versus previously? down the

Brian McDade

No.

David Simon

was that, the that enterprise value. They Remember, have Yes. debt. some

opposed was that that's you when It equity as enterprise value. an -- So value was billion, $XX value. so -- say to just

Operator

next from Haendel St. is Our question

with Juste Securities. Mizuho

Haendel St. Juste

pipeline. is yet side, have on I but your Question not open

I points open but side that think XXX basis of from pipeline. about you embedded previously last is not occupancy or quarter the outlined

and then maybe guide can debt fees where this us year? the also on bad So today? lease you an embedded update in that what's maybe give stands term And for

David Simon

So as Simon new We've that been of and basis opens stores points. of sign XXX a we leases. holding little bit kind open north

steady XXX hold points. around we're basis So

about would our are assuming is points be that. total expectation level of basis debt, revenue normal XX of on which a We bad

Haendel St. Juste

fees? term Lease

David Simon

the Normal lease year the fees, about answer the I rate think -- term of $XX number for million, estimate. is

Operator

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

Juan Sanabria

Just a for me. quick one

that curious the affairs with is progressing. state relationship talk and Just current More mix. Jamestown of on how about

them you're and curious in planning particular that how thinking about stages if anything So just in that doing there's with the works relationship? the you're or

David Simon

Yes. Thank you.

with investors. -- we partnership. of what very pipeline a they and the our to on quite the we relationship behalf both had we're do opportunities, And and within obviously, year So but belt, pleased continue look haven't under our at

and partners have corporate. of we level development than lot property have There's going are a that, lot the -- one of -- ways. more both corporate working we of it's on one strategic been corporate, more other we a development going in now we're through a haven't on more where discussion And project. specifics on and a in Southeast. process good that I So one feedback mean, project. other it's working than But We're together.

Operator

at I'd question There over closing management time. for this comments. to the are hand like to further no the floor

David Simon

appreciate And we soon. obviously, Talk participation. Brian Okay. everybody's Thank really you Tom available, to are you. and and

Operator

This conference. today's concludes

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

Simon Property (SPG) 5 Feb 242023 Q4 Earnings call transcript