TCO - Earnings call transcript Q2 2018

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Operator

Thank you for holding. And welcome to the Taubman Centers Second Quarter 2018 Earnings Conference Call. The call will begin with prepared remarks, and then we will open the lines 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.

Now, I will turn the call over to Ryan for opening remarks.

Ryan Hurren

operator. you, Thank to everyone quarter call. conference And our welcome second

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

this In replay of will a a addition through link website. the of section call Relations be Investor provided on our

our GAAP non-GAAP Regulation possible when FFO measures our this for on we'll these to filings. are earnings measures of in During depreciation may information supplemental referenced has release, of future measures the SEC all expense, due as this or comparable defined estimates measure income EBITDA, tax of significantly net differ measures quantified periods. corresponding financial management historical financial NOI, call Such G. also and and/or of include some financial GAAP from Reconciliations and not Non-GAAP by after-tax our SEC discuss performance non-GAAP may which the forward-looking and included non-GAAP investment future call, our the interest our expense NOI amortization, measures properties. to

limit that remarks, prepared questions you ask today's we'll two. Following your We call open the questions. to up for

If have you please queue more, again. up

call turn me the let to over Bobby. Now,

Robert Taubman

center Place CityOn.Xi’an South fees. comp quarter, Korea excluding in FFO strong of newest results. centers, last we NOI our and Hanam comp quarter adjusted were in morning, our International They solid Yesterday, everyone. Thanks, Starfield and X.X% Like with Hawaii, especially Market lease growth produced of good growth. in China, released Ryan, and termination $X.XX second

we're occupancy of quarter, At was and expect end, our least comp in X.X% a year-to-date sales greater higher center benefited foot and X.X% strong rents, On and up variance comparable bringing comp all was quarter year, growth leased from centers per U.S. rent continue year. and is up basis, about X.X% the X.X% in U.S. result also last We recoveries. timing centers. XX% net from comp to centers at The average tenant all an Average occupied. comp and currently as centers, X.X%, for XX.X%, end XX% to overage down X.X% in weighted the rent was NOI the quarter, to X.X% for square up respectively. in largely

XX-month trailing ago. from was June at spread up X.X% Our re-leasing XXth, X.X% year a

Our year-over-year comparability is difficult.

As a causes is in stat ago addition The was CityOn.Xi’an restated center always, the the the year statistic restatement year. pool all assets our in naturally The in space. occupancy there now to leased XX% XXX% and openings of it tenant openings center as quarter X.X%. stat essentially the no were XX-month X.X% XX, was the trailing to accounted XX% period openings XX% approximately and The rents during in and several about ramped months In later opened XXXX. lower April center of are Xi’an filed, for the closing occupied approximately China. up or to from this statistics. often our primary reason comp of of mix same changes, a prior same not June The which XXXX a

average the per hurt rent So, thus foot addition of and statistics. re-leasing spread the overall center opening square the lowered the

would our with of and small been as In terms average those recent June have of Without of the an impact. X%. continues two deals than re-leasing number half of years less XXXX, terms to XX, leases, spread spread a have

In summary, term volatile for spread re-leasing NOI XXXX, shorter and with us. deals, period XX-month nearly is the trailing very all re-leasing mentioned, June ended X.X% spread an was excluding statistic for basis, XX%. on a reasons the portfolio, the Finally, weighted our XX, our it coupled for smaller was

tenant XX-month foot square X.X%. now centers [ph] NOI-weighted up Trailing square include two Note, sales were these sales. Xi’an years $XXX, foot to the an sales sales sales in up per Moving center basis, comparable per of X.X%. was On history. statistics full $XXX, as has

X.X% in quarter. with comparable Easter X.X% XX-month And Electronics, Trailing third broad-based remained Hanam shifting last quarter, sales We XX%; jewelry, the and categories up Year-to-date foot, every is will Despite our the years. up the growth. quarter up XX.X% be first to both XXXX. once shoes quarter. per foot again to up best a will now increase, in quarter’s, quarter domestic square increased next $XXX sales up sales strong, increased the two were the this centers since then they growth per our adding X% open quarter Staying and the quarter our X.X%. most Hawaii last that were Tenant portfolio, in square U.S. Sales have record two XX%. high. aside as sales women years. from X% quarterly rate hit for increased second

which X%. strength Importantly, we than saw apparel, increased in more continued

expanding year-to-date. the were our even in Madewell, Luxury also half outstanding our Saint Fendi, reported were average, and were On Many Burberry [ph] performers. and XX% Sales retail productivity. sales XX% over XX, a square who still these in tourist oriented were also Place our XX% The very centers our traffic project Beverly very XX% non-comp Hollister, double best growing encouraging. the community. in sales sales is in the the has up last sales the and four seeing International first second were shoppers foot At by quarter comp XX% of We Louis better with quarter Market from project, Zara, Athleta, Forever nearly Tiffany results also portfolio. growth Center UNIQLO, embraced year. tenants are a we’re square strong, centers centers sales materially more per very quarter we clearly Gucci our Dolce foot over Sales today. Even centers. per and led up in our Angeles, just & been unfinished Vuitton, up were portfolios among At in and newest Gabbana, J.Jill and by saw and had and per foot strong. were in digits. was Fabletics Hawaii, sales Los total increase than square Laurent, by best for our yet. improved

historic on trend this reach and sales As will on continues, schedule The project year. levels remains peak budget. this

results been aid remained large-scale tourism an not as the in or of strong, the November Mall which industry hurricane not continued reduction new above These to recovery. We’re and with Xst. of from solidly year-to-date. occupied Traffic close they our return. to per reopening tenants in looking without is strong island’s center reopened reopen appears with have much is estate center achieved last benefiting have the be yet real restaurants retail to due on pre-hurricane have still has San square levels sales year's event, overall hurricane, fall. benefit to its likely post as in occupied many the renovation. The its resorts XX% largely total by of XX% ongoing forward sales higher Juan foot island Elsewhere, and workers celebrating the either is to center were due hotels the to The The

and Last and Anecdotally, In suggest pre-bookings Nordstrom November this island. will this be fact, XX% between the for the will season announced center season. benefit in over tourism holiday tourism the January holiday will again the they was reopening down Xth, and year. on week, return April time

per our combined three of assets, Moving Sales up and continues. up of Total were improve in sales comparable Zhengzhou, XXXX. centers, up XXX%, comparable at period continue Hanam since first opening momentum growth to merchandising. in a are Asia. assets, occupancy foot its sales our and At is In square very centers its with we in was in increased robust to March quarter. three productivity XX% all the square and year-to-date. effectively Xi'an our The XX% nearly though foot sales XX% strong XX.X% per

substantially million entertainment of with square and assets. lower brands remains world the We one venue. more. occupied thrive million mentioned feet our XXX $XXX the Starfield On Nearly sales quarter volume centers of lease exceeded fourth as making call, tenants productive XX luxury tenants Hanam the are year, the is one continues and retail space. including we with terms. more-productive nearly at earnings months rate Sales food million replacing million, it feet square center X.X line in first It most $XXX retailers total the have X XXXX, cutting-edge million $XXX at strongly and in for better XX actively the anywhere. of trailing are in fully to its grown now

space retail just Asia Retail over square U.S. is in opportunities As capita, than in continue outlook dramatically for the XX XX% for capita. has net time, have U.S. South about invest we’ve In supply discussed supply per anticipated feet new it for feet less Korea, to some of as the per U.S. the in is X diminished. we to

building indicated, upon exploring in in we have Korea, to with projects our Shinsegae. our partner, success additional opportunities we’ve been invest As

major Further, in immense Samsung already over the well-developed center and Anseong collectively of of We’re inflow Area. next project to in will is expected million committed few operational first draw The infrastructure highway adjacent foot Busan, and which is be pleased true to at a and XXX,XXX, we the bordering in constructed Greater provinces housing and in largest links expected radius generate Starfield cities announce project Asia. growth Phase site of our X years. is nearby plant least XXXX. city population an in site southern Seoul railway nearby. next expected located draw. Gyeonggi largely fourth with a the high-tech X-mile X.X and the expected there, of a other major building Nine end high-speed province, plan by at shopping our phase in semiconductor to Metropolitan about Shinsegae, X a line creating Together we’ve world's two of the and is that square within be has to are The significant surrounding Seoul other to completed The including the bring create to will four opened development with Electronics employment to construction the XXX,XXX of the is The regional jobs. Anseong, plans high-growth area Pyeongtaek. are with the site developments half from people.

leased an environment. basement, The Traders Starfield about modern E-Mart the will to in the $XXX XXX,XXX concepts anchored addition, exclusively is U.S. estimated expected the planned South of the and almost shopping ElectroMart, center’s of is to Monster, total, The million and cinema entertainment to Anseong and XXX,XXX of and will Korean international people. relocation hypermarket population in of XX% X expected PK In of The is cost population expected Toy opening, several between first XXX,XXX combined expected Starfield was XXXX, include year In of half a market, own Shinsegae’s center. stores. four The million and XX,XXX size GLA will will XXXX Hanam of representing an the Pyeongtaek brand. Aquafield The Kingdom. to two including the increase XXXX, Sports in nearby, project reach base in the be upscale people. and to and XX% also Army bringing successful of be people is center, is million. be years. population department about Anseong merchandising by retail Shinsegae in total XX% By provide to grow growth Shinsegae is retail. Anseong Currently, the $XXX older and between

own the $XXX of our million. center, XXX investment, anticipated to We making XX.X% expect to

are own As the we we did project. that of investor of to institutional we with currently the with and discussions as the has in expect Hanam, our not been own finalized. are with partnership [ph] co-investor XX% funding remaining yet We XX.X% an cost

stabilization unlevered Simon. at investor. the X.XX% call that, and We around unlevered IRR institutional a over XX-year promotes and expecting before to X.XX% related I’ll to to With XX% are a fees after-tax the return turn

Simon Leopold

Adjusting change included of value item, nine market page FFO by quarter. was in settlement and the expense result per reviewing and AFFO $X.XX compared activism Interest of the this everybody. borrowings principal income. to expense down higher in the This this by quarter $X.XX. Lease down variances an unfavorable $X.XXX of $X.XXX, Group the for was start interest Bobby, a to favorable variances The resulted $X.XX, per occupied common primarily a last shares shareholder you, year. FFO They national chain for termination received good last cancellation due $X.XX are due costs, in which year quarter. with listed fashion that combination XX significant I’ll second of of year-over-year was income our rates. Simon fair were the to on supplemental. for share along from share had Thank Property and our lease morning, portfolio. locations $X.XXX cancel impact higher

up number non-comp our centers variances result grow. at other Recently, San Juan, Other minimum year-over-year and of rates Hawaii $X.XX our base savings results. to were initiative. in last were Beverly The impact half about G&A in rents questions currency we which which $X.XX, lastly, Center, of include The foreign primarily to the our aggregate centers penny Asia rents our Mall continue a of received and comp operating due compared expense favorable, and expenses to a on And a CityOn.Zhengzhou year. of favorable exchange corporate newest each

so rates RMB restated, year-over-year won strengthened results. our GAAP, Korea period. FX Prior in rate China in last results periods accordance fluctuations the centers of are translated by the the Our impact the our reported are have South versus in and both average at will year, Korea results not which U.S. exchange means dollar. South approximately the Since X% and for Chinese are with

NOI on offset growth. Although the XX the growth corporate XXXX full to basis is roughly FFO results Comp is estimate taxes NOI business. NOI to be been on will Asia the We year-over-year impacted year, basis impact points our by the to-date. interest strengthening center negligible benefit and has to as on XX favorably, the year benefited related impact our the expenses, a for approximately negative comp has points NOI benefits that

balance the sheet. to Moving

Oaks non-recourse loan. a of new used million loan $XXX were During we Proceeds The completed at and the of Fair pay rate five the previously in bears DC $XXX fixed joint is refinancing owned the XX% quarter, the venture off discussed interest Mall, to years area. our million X.XX%. Washington previous

key our we unchanged. Hawaii million, by the as we principal $XXX During $XX of on down we finalize terms the facility construction quarter, the also extension, the balance financing. paid longer for we working the in XX Place line approximately capital million. Market days loan are million July, loan to term extended extended International of $XX credit, XXXX, bringing to with the November the the Along In

in one-year be December asset-based After LIBOR fixed-rate plus We complete significantly to expected financing NOI will until XXXX. of do asset which response extension banking The second year. positive next our Market loan for long-term year extend We’ve We loan, at years mortgage project with loan, December a after extension Once continues Hills options. U.S. rate in Green of maturity the $XXX we Place on the intend as options to expect property. has had two we community put the only new is the of three Once have redevelopment stabilizes, oversubscribed. XXXX complete, tremendous Green not million a to another we’re quarter August. a new in the Hills, one-year the of maturity two loan refinancing is International this a from this and the the is remaining maturity X.XX%.

until Our matures. the when net maturity November in Asia of Hanam refinancing isn’t of XXXX Starfield

new million. South range As Anseong we $XXX be to of million project meaning Korea, to of our to in equity expect total finance the XX% the to up investment cost, the in $XX will project

existing Our with sources equity liquidity. will investment funded of be

shape. remains good sheet balance Our in

forward will to range currently which our a in our that times. peak basis, toward on development, X that is believe growth from to the And NOI, back continue will with high of in delever particularly eight, We X naturally our target newest year. debt-to-ratio, this

results, to center for increasing X% our range comp our XXX guidance. the up NOI our Now, points. basis solid X% guidance on are an to year, we growth year-to-date With update

by also AFFO We’re $X.XX range at both ends. our narrowing guidance

$X.XX Our new range is to $X.XX.

primarily between less We’re We year. and interest $XXX expect the up increasing of from million, $XXX our now range slightly interest the share due for expense be guidance our $XXX somewhat. to to to million of interest previous $XXX expense million capitalized million, the

San annual results. for significant Finally, remains of Juan potential a variable The our Mall

sales As Bobby positive and quarter. seeing discussed earlier, we’re encouraging this turned NOI

business from of Juan insurance the some NOI guidance proceeds million You'll for year. plus San our that total will $XX recall that the assumes interruption

business We continue amount that date receive have to but proceeds be insurance the received and determined. been we will case, interruption will believe and the to we’ve timing not not

can As shareholder in fluctuation a activism on we SPG key value summary assumptions of found six include supplemental. reminder, with our for a fair guidance the the of that associated assumptions note future be of costs all page do shares. not common or Please any

estimate Before I companies next in internal standards. today, of the the currently XXXX, to accounting been. I reducing personnel, standard are it adopting you Bobby. compared a FFO for year. this be portion We on expensed. I'll lease effect which $X.XX per refine be for that touch wanted turn public leasing $X.XX to Please consider by back of share turn have models it to what salaries new it year will XXXX. capitalized All new have will accounting quickly will this With your next change to Beginning as Bobby, back being would to otherwise

Robert Taubman

Simon. Thanks,

NOI happy have with for the quarter. quarter's and We’re Sales growth to strong center now Sales Xth consecutive Comp broad-based. this results. was be continues growth solid. increased

pleased now new there? delighted you Lisa, project. you are year kindly to our limit take and which for are we we we Starfield with are our two. announce We will the your With Anseong to ask outlook questions, that

Operator

Capital Thank Todd the line you. comes our KeyBanc Thomas of Instructions] from Markets. from And [Operator first question

is open. line Your

Unidentified Analyst

Drew Hi. [ph] today. This Good is morning. Todd on for

or you expected else. or the stabilized there in Wondering in Could mid the little that below on characterize expectation? X.XX% expected a initially. bit yield X.XX%. you Starfield about It’s talk capital X% Hanam yield risk the that the Korea, South South question reflective new you a project yield to Just is of the profile range that of something as just development would markets environment if initially Korea, about

Simon Leopold

to cash yield, a yield of stabilization. clarification, just So, one that’s that X.XX% X.XX%

it’s do So, there. as to XXX by this cash it yield. that include a not we is yield boost favorably the which fee points. to not which cash XX does yield, basis initial make One, will would that Couple that of but points receive, typically income,

Second creating complicated. before, piece in lower were simpler and has really that than relatively the risk that’s that project This where for is, was project seen we a than this is do Hanam much that a more we is where asset project. larger profile and an market different believe

use a works. have We mousetrap that we know we that

slightly So, yield we healthy a that very from healthy a IRR, very slightly lower think the do do a and warranted here. think lower, yield yield risk perspective is still that very, but a we

Robert Taubman

Yes. half about that project it a said And leased also you Shinsegae, were They when -- you I leading are believe exceptional And say doing. feel have done starting with going now of they deal comfortable everything in market, do the going would very what retailer you're with is be did or are by have you partner. more. they to be the a to they an we and and to

Unidentified Analyst

guess, I future? that that beyond the might just going see could then, you about And beyond you growth, where kind talk of stabilization, in

Simon Leopold

much, single post on and what basis. be Yes. stabilization the digit we’re We high very similar not think to annual growth should an call it experiencing

Robert Taubman

projects, its stuff base just The And this nine happening this that’s people It’s moving. behind is given -- stuff are now. in all immense really about I doing the stuff happening. projects government happening. residential are is big market. growth not Samsung is is thinking especially it. project. it. The the that is mean, the And The

are household very So, going see in to significant market. growth you this

Unidentified Analyst

on in be quick there? on one box with Hills. old & And one of updates third the And what that? for on doing more on Short might the level space, updates you then, me line Saks also then, any Crate just Any Barrel’s guys

Robert Taubman

We anything now. don’t have to publicly say right

October. going store in the one’s and close be Crate think second Crate very first one’s on in the We opening on in to on September Both and Indigo Saks the I level are three-level old and the space. of are the fall, Crate,

it level planned office have third is very discussions And as our space. on been favorable. The initial

a going that of And at very accretive office lots of terrific. generate to we've will So, that income space important And of the moving we for restaurant [ph] opportunity be tenants, planned we frontage. bring at expand very in bring believe a them that the number into real and they’re significant foot out It is also move square there. XX,XXX able that we're yields the to also space. was to Crate

So, center. them and to able we then tenancies for accommodate in are and that to accommodate also demand be really pleased are that accommodate ourselves more

Unidentified Analyst

traditional space co-working? or office Is that

Robert Taubman

Probably closer to co-working.

Operator

from next Our of Craig from line the of question Bank comes Schmidt America.

Your line open. is

Craig Schmidt

a JV going sense of have the potential finalize take to you it's to how Anseong? long Do partnered

Robert Taubman

been on made and We terms these discussions structure. We've in on progress lot with them. a of

it's and we're investor. it get until it's chip So, time. a It's going to is be we optimistic, done. a think optimistic regarded done But, it's highly with Segmentation very blue institutional not But, not confident Craig. will do underway. done, long

Craig Schmidt

it, And just the regarding reopening of Juan? with Mall had Saks any you have progress San then,

Robert Taubman

in it believe possible. remediation rebuild as comment, We us. required begun the strongly, they’re not Well, reopen to and in did front that’s as efforts. in we’re haven't given a to But They of reconstruction. is position They litigation expeditiously begin litigation.

Operator

the of Stanley. from Morgan line Our comes Rich Hill from question next

open. is line Your

Rich Hill

more deceleration I guide for you we your it a And put want impressive maybe half in really second but hoping XH Obviously, little this as a little guidance the provide the the why than than -- XH. implying why prepared we more upon NOI just to to guide surprised a bit remarks, year? was. detail a expecting store see bit to maybe more the is of in the your were come bit. little is I are could guidance you a you I was back Maybe, bit touched think increased little to just not up same

Simon Leopold

NOI predict is to fourth the biggest the it's not exactly ‘XX, any quarter-to-quarter. deceleration hard it's everyone largely reminded, large when due second math. So, just to half But, come don’t in in of in is year. quarter items; things quarter; really to going of so give it’s the to the It toughest be the growth we tends quarterly are guidance. the

So, it there. math higher to harder by terms just -- be tends to in growth of just the that percentage have

going of backfilled tougher the first more the second the percentage closing, the was In half some half components portions ‘XX. as back-ended fourth We see little ‘XX And in to half that there are some by difficult as you the get to quarter, second it comps large of make a predict well. face are rent coming in.

projecting going year. that rent lower our a are quarter fourth little versus We percentage year the is in to bit be this last

You bad also in that. highest with is things talked yet of just before, which rent, sponsorship debt, have variability and some quarter, the year. the it about the revenue XX% like we fourth Overage

growth So, small really year. difference of can you the a during create remind one out the put we’re factors talking for lot in a first the up NOI that’s numbers the the the of at to that And first quarter, for we’re into second a the some fourth have guiding I’d half. now the when X is between -- lot floor half of paying that rent, role Asia, quarter. the in to seasonally it percentage X as part heaviest a if small different size downside whole well those that on large play we for into it. you tenants, base There And look

X NOI to a base, quarter. call million X $XX a million X% to growth or $XX X% to at it $XXX look million on you If that’s

in moving million has So, big at $X quarterly impact on one-way $X a a quarter very rate. or growth actually million

summarize, really and fundamental math it’s it any of to really So, is nothing big in A timing. way. lot

Rich Hill

like Asian development your expect. of you labor more that or making turning couple pretty And projects it past one fruits looks maybe quarters. the more out of you've optimism with seeing you’re to projects. to as you give do the maybe one the are play over announced comfortable delivers that it. expecting than then, sure to development Got Obviously, you’re you Does

Robert Taubman

successful. on focused clearly Anseong we’re Well, making

stabilization at on focused and Hanam. Xi'an, the also We’re Zhengzhou

we’re development said, growth NOI underperforming fund do to assets. have who and we’ve very in the more numerous program. fully these management engaged want what approached us. but by might But, blue we and partners we in really just an finding consider. to a And new level. like outstanding but about As just financing really more integrated Shinsegae fully ways been and tenants projects got with capital other might basis the take a we improve partners, chip in back on of help Wangfujing, a our also built in perhaps We’ve strategic is We’ve partners I'll creating say platform Anseong that’s things goal individual bring and us not not that to we capital self a of talked higher that at and

thinking these about we’re so, And having and real-time things, all we’re conversations on a basis.

in very States to space, retail supply that happening. lots in the So, that given we'll things e-commerce, the see things, are there few those of United of what are do are smart And happens. things But, of Asia. all it’s there look clear that growth opportunities opportunities

to that feel we're we so, able And continue. be well-positioned to

Operator

line Our Christy next question comes Citi. McElroy from of from the

line Your now is open.

Christy McElroy

of buying you would And new assets? stakes rather crystallize capital? some Asia value just you’re to created in realizing one the a and consider recycle discussions you’ve sort that have with Asia, on that than But, project project. as those to-date, project, capital with is differential in partner intuitional into something of new particular in on partners on new seeing a just this and -- the in follow-up invest discussions any in you interest are completed proceeds that Realizing you

Simon Leopold

And conversations level are having about. self financing a asset but of talked would conversations are of about, very investments, that business the where As our level. the a we platform now, our partners we And right basis. them existing Bobby includes that capital is talked announced okay free last well. that as capital, are assets structure to we are potential potentially extremely the project on like at happy really a time of those bring business. flowing also having with now. cash we that as creating into are very all optimistic capital are assets And is in just our leverage have broad evolution about capital we it with said, it development includes There we sheet are We with happy brining that balance In and recognition just right the we’ve way and [indiscernible], have part in less we a a few we calls, includes partners that to and recognition about we fourth the got in on where growing. little which recycling a platform real

Christy McElroy

the then, part And was And on foreign fact Simon, think impact basis your to guidance? to store What a the basis that before? you increase, basis-point you -- rata that something as rata calculate the is growth consider to larger pro XXX%, I range XXX the a would the calculated of economic better calculated same the impact it reflect a a at pro that you increase discussed, points regarding store much impact? budgeted had changing it year. same in in full to was the for the of XX how So, just currency factor then, initial

Simon Leopold

had I’d half better guidance range the of three as guidance, well is better Asia, look are other Christy about centers And the although to the about is originally and some FX, general. So, just is related in we of at in that our that points, than well. assets is say, all I’d included those that terms way half of it to as performance but XXX not of assets performing in Hawaii at in related our of performance basis

particularly mentioned. seeing helping FX those centers broad-based is outperformance just well. are we So, four I as portfolio, the And in

the that way same always are store, something we from relates plan. currently we we at. contemplating, it community. taking look That’s of that’s But, guide in we are to not the investment but currently terms the something changing not suggestions in can that’s As

Operator

next line Goldman Burrows Our the comes Caitlin from Sachs. question from of

open. Your line is

Caitlin Burrows

sequentially that quarter, just stabilizing. surprised Asia see the minimum the was still maybe declined projects I portfolio, wondering within with the was the to unconsolidated I in especially rents

occupancy how it was or wondering led was was something if played or anything that pieces moving out. just I particular So, and there that to if in

Simon Leopold

after best you think there I the with as Eric. most is really that Ryan pieces for a But it’s major want jumps Caitlin, and and walk nothing factor probably there. occupancy. part, specific call if But to it’s moving out the through

Caitlin Burrows

strong the going Beverly mentioned I NOI NOI end of you in have expect that outlook, sales that do guys just then guess, and you even to impact center, in contribution also, the you beginning you year forward, and been of how then, seeing. how on property? results And between guys terms of now the expect do

Simon Leopold

guidance terms of Beverly pool. that we we’ve certainly pool, The in our numbers to the the on in guidance changing our are Beverly is the non-comp related for center year, guidance, not in FFO comp got -- not remember,

with about we good very are where feeling are We Beverly.

we’re less stabilize we the open We are guidance. after NOI of with of growth covered an numbers good and as Like come that's growth whole to outsized Beverly in growth to expecting we the redevelopment, that we sale be lot of kind believe do But a feeling impact very as we're of I that, compared said, expecting on get, will in about clearly, a the this portfolio. year. really of already lot XXXX out

As to is think ‘XX, going I impact to the and no, don’t be it relates significant. specifically

Caitlin Burrows

would compared Okay. the ‘XX to portfolio? and the But, into have outsized we as expect it ‘XX, get of to you growth rest

Simon Leopold

Yes.

Caitlin Burrows

last G&A on one I guess, maybe jus one quick guidance. then, And

there reason X believe if guys is below half? both the any You pick XQ and XX million mentioned million you that to like it a up quarter, but second that XQ, wondering are in have should to of seems just

Simon Leopold

way. meaningful in costs continue. well doing Not to internally, we and U.S. any and expect both in on in the Asia, that We're really

end to I And lower materially? trending change reason any XX, we're should clearly, see why that towards the there. X don’t that So,

Operator

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

Your line is open.

Jeremy Metz

out? Going to there you wait potential are there. [ph] that reason go until Was deal? they drove And say is capital back that preleasing to up and on fallowing additional the project ownership taking that end to have fully decision partner then up that signed it announcing now? there not Asia there before new any institutional on partner ends that additional Was then,

Robert Taubman

interested we've X, each months we've extensive elsewhere been is that very partner XX the together. would this last is partners there asset. been are it's institutional X, this years. Well, a focused partners over other one discussion an in than been that that say in institutional more the to with This on over And being I

complete So, as down the Simon needed documentation we’re all a was agreed these the of in absolutely the go. ready take and process move will said, and to with some time the and the terms normal We in to permitting been take have period. investments. of project -- land that's It to move to and do; We very needed that kinds forward forward. to

if be was So, there to very sense that is our that ability a do going wait, no But, even good to is really again, very, that. was project. felt important we to this it

We But partner. fashion something prudent our very to what as to with did. arguably project this extremely Hanam own, returns we well did project. bring Hanam and in before, delighted a on on which in. is we could We performed are we did We we bring acting prudent partner that be in decided considered. a a it would with The and high partner do executed

we're So, next will own months, are is that in we expectation But and if complete even several XX%. the XX.X%. up comfortable our we we with high the ended where with very documentation

Jeremy Metz

to so given have I cost? out as appreciate we're that project point bid at of fully some in you material, seeing And this to the cost any rising just pressures labor there and exposure color. limit the

Robert Taubman

way the GMP in general if project construction ones contractor, bid the fully the we’re business, engineering a the under But, you’ll not out recall, having that sense Shinsegae and contractor which their that we’re budget. -- complete. It's brought is on in Hanam it E&C, of

our that was cost announcement and Starfield $X.X project came XXX% projection of a about original Our at going was to original the Hanam XXX. ultimately at billion; in they

a the today. for we project everything as in subs Korea Korea. them. It was for know didn’t a do before. We us Now, never it done project It and new in new has was

range we you done of and we’ve very because as confidence it bid E&C But we’re give of in yet So, fully largely comfortable with. have we group, XXX not to the estimating out. tremendous all XXX, the have is we Shinsegae it

Jeremy Metz

and quick can one Simon cost if one just I I for Great that. increase. on the appreciate And interest

the it’s of some about you a the your you about had expected better, But such increase, you interest? I talked is initial than budget sooner right way for You year. result the stabilization stop than financing guess, to or sooner of expected that be think to it’d completed. in at development, capitalizing your

Simon Leopold

the it slight higher. in Hills nothing interest slower of there lot rates it’s of things the it’s into general. That’s capitalized the and difference that a midpoint up of maybe made of interest. obviously, Beverly $X and $X lot and capitalization slightly up Jeremy, more in spend of that is little it’s That day, and related rate the capitalized lot reduction that range, to there significant is And a say, half about Green at But, end other midpoint number. little would at that a a little make I things, go the raise million, really difference. things to is a and is increase million on of less and partially

Operator

from from the of Samir comes question next Evercore. Khanal line Our

open. is Your line

Samir Khanal

sort which but XX%, even XX%, short-term seen. looking we’ve sort your is So, X% of certainly spreads were consistent leases, below the quarter mid-teens leasing to without at the prior spreads, the to with

point? XX% further see is at that decelerate you So, could this sort to of sustainable this or X%

Simon Leopold

some as while are leases also a on the months or that have lagging real we they about and instances. to compare based as Bobby talked ago time companies a XX as we prepared hard across could volatile it’s As stress. -- been indicator openings it’s in comments, closings are different the it’s think state, feel are signed use methodologies. Spreads because much But, to in we more are important the

given Our even stat make the subtractions we and same-store multiple more pool. to is volatile, the additions

paying an we It’s Xi’an and much impact are going Xi’an and of we because in this stat about pool year's rent had are than pool U.S. negative example, effect June in a end Xi’an. lower XXXX talked at came because naturally more that next tenants Hanam into Hawaii we stat bring get last as China previously. on in bringing Then, As positive results XX, the they this to the there the new we are quarter, the When higher the than this we’re that rents notable volatile on to had quarter. significantly tenants restated the quarter, a were

we actually and U.S., short-term than spread very and rent we’ve seeing on These the week reasons Cuts percentages. really comp think market lots to Tenant we total the there to spectrum demand good period now. in are a you other And demand coming lease is Sales centers, include important demand portion if in up accommodate. are the of entered we X%, to effect. growth holding important. much seeing times, square Asia. our X.X% Tax of got pricing own. very factors We stable and are starting say, a creating almost more our we bridge occupancy demand portfolio even What think to of And as have And lead more appear at We is good centers. probably based we out we strong. see And a centers. we’re There that traditionally so, all wealth growth, average stronger feel of the to the power, centers The going that strong best a optimistic. while to at stat. in growth. the in are lower are already. Rent leases some be stock in And strong the can are our be the in quality year-to-date per GDP doing foot is helping I consumer are rely and wouldn’t too period rent we’ve more that is tenant is is much

when, going really But, provide because about for not detail We of manage coming. do we stat to operations. acceleration you spread in are you. are future, tell it’s think instead manage the those. but an So, Exactly want FFO as better. much as the both I we do that’s quarter-over-quarter actually see how very can't of NOI we community our deceleration, and We we can we And to investor I spreads volatile we color better and see get gave business. the But think growth, going to wants a the and achieving it.

Robert Taubman

add the something We exceptional of in were we sales We growing. that something mid were many levels. five or about sales teens lower, all XX% me higher? the in for teens your growth spreads Is how that mid many at When where question be? were years, Let fundamental really four, years. was years it had should double-digit were number about rent X%, for

So, natural re-leasing at much see it to levels. spreads higher was

tougher had four years six of sales. And and we’ve now, ordering years so,

this all about tenant assets. Class a A there is about about ecommerce, in very assets, especially our I retail. about -- now, now, the lot narrative of and And mean, is talked A it’s conversations strong. Class So, demand Simon real

a broad-based. if to in two sales been in have majority it’s And and would hasn’t the eight which quarters a vast really row, been continue so center. and expect, It XX in we are last categories, is in quarters the So, increases, it but across strong grow, been really categories. positive is just of a apparel, important the shopping few -- including now showing categories

but So, we that would is on mid then, have get sustain, can't see sustained teens. we and expectation happy we think telling we be -- that very with would we XX, everybody double-digit a were kept every to no basis. And you I I above if there reason

happy below with now we that we’re would XX, very mid be So, teens.

will I but a increase again as transition think, beginning. we and we can sales little get there bit see take it’s

Samir Khanal

answered at Simon, of growth my look we sort XXX I of your have then this kind And it versus remained And basis lower But, midpoint store something a bit when that unchanged. you do the the same But, you how know FFO is But, up that guidance. at second guidance, about is question else expense prior an that’s sorry holding interest was think -- Just FFO, if up line I from mean perspective? the guess, that? you and was before. I points. look bottom when I’m there

Simon Leopold

Yes.

So, that for. feel math there a variables little you a but FFO in some we to we account are second, I’ll give still to need

the business San insurance we we terms on variable tightened didn’t in; year. the in have potential raise the certainly a range come of it. Juan timing We but So, interruption to still that’s proceeds see

at in to we receive for We that's in happen. optimistic to that but at expect, are Overage got and year the come what that levels year, that we typically half the got see still receive we expect the materializes quarter, to in we’ve that fourth this see that will the that we rents, the levels about fourth of quarter.

income still XX come our million, cancellation at potential number that's guided So, lease share variable. to out yet. to we've And not this that of year. We're

believe will reasons XXX% potentially at it in realize just we let's have million. variability I XXXX, will to important FFO. get call there, we that We don’t to a terms if $XXX math, create it's but NOI think for some And in of

that's about a you points, so, And basis million. XXX $X if raise

a Our share expectation call of midpoint. We $X expense about $X That's by our let's million. interest XX%, raised million. it's that, that

X that of X are it. be potential better that NOI; now going takes the on So, takes of that away to we

for stage didn’t been range reasons now raise remaining was has largely is about. as expectation. variability our talked a with right pretty So, it provide couple but we just at the million line we We with bucks. guidance, quarterly about, this feel And it to talked the the we the $X.XX in the FFO all don’t is of standard. proper all

Operator

line O’Neill. the comes Our next Goldfarb of question Sandler Alexander from from

open. line Your is

Alexander Goldfarb

questions. two Just

underwriting taking to as got the seems before look worked U.S. has pace about how projects the land guys risk? if maybe would out. But, you thought you've we like a that Board down derisk the next Board contemplated and Asia developments slower the at the partner you've would and waiting have think partner is, partner. prudence first with had, getting mentioned so those project, Bobby, you until The the be far it. I it the

changed cycle? this previous for So, private how a that the can process little have guys you new versus this just talk bit underwriting executed if developments development has the about you the

Robert Taubman

Well, I don’t think it’s changed, Alex.

projects. the I the of program think, we're looking at overall

we're We’re looking that markets at to going in. operate the

expect productivity we sales assets. We’re at the what in be looking to

We’re our looking partner. at

clear plus sheet. up obviously, risk at unit do that we are individual at we one of all talked that above within And contributes And of of or -- or from balance real about and balance range we've kinds to center IRRs. about project. expect, looking expect about we balance fall the we back increase. to talked overall deals are we look that. sheet, X overall on the yields adds the sheet. as range, what talk time looking it our a time. the multiple individual and not that for years. times This needs we under but We’re subtract happen in leased X the to it's that And stabilization very end, And NOIs we mean, at years we've in what was be And that as one project the yes, the I

site. process about in into we deal site what You have Board hope that the and room the the And publicly talked to deal. years make about several as we at Board decisions. And a do to the with talked for this Board also we all took on this Shinsegae of a it that looked lot, their frankly, thought was but

real how Board the world. you But how lined not surprised doing. wasn’t we it. anything want it yes, And to XXX% is that so, by better up happen were have in And always exactly deals that’s

unlikely and ended especially place. it accommodate we here. are it we our partner in if to it we with if and reward, did, it’s good can XX% we earlier that unlikely, going a risk think up I will But, our very I in said So, up, sheet, end again, we say it’s is which with very and balance very

Simon Leopold

add replicate maybe project long area that those rates. rates will not with an do rates Anseong we have can and and ago, within saying. feel Even as Bobby growth. five which I changed. for those in population hurdles it in mousetrap going is the We all Asia, have we’ve is And have time hurdles where And this out Board with partner in expectations retail hurdles a huge call project of coming said expectations changed. prudent return forward partnership under to a we our the well. years project. great said ago, that's hurdle Shinsegae what And we in not that, a project. out feel about We dramatically We ultimately And this have optimistic we meets what that return felt, proven very got about

Alexander Goldfarb

that have just elected, a Simon, you. parts this newest And an second member One your with going Board then, stock; took tax no source the you has that two see think now that recovered. stock forward, you Okay. is the a advantage of second, And question, end see near-term I then longer for activist the is Simon it So, may this? issues you harvest? when we’ll guys to expense? proceeds But, Is of in you converted. -- we the is already

Simon Leopold

the first. take will second I one Well,

total. We XXX,XXX have converted the units about we that receive, in

have share. We to converted those

units anticipated always in conversion. -- have would shares that that these source of future. tax sort the we We addressed be to So, the of would a liquidity us the -- related for be

look at that perspective. continue from We to it

stock so, And sale this from value undervalued. stock that efficient four in is this it really was the you years is We think But think very like undervalued, sort way of at our to the just end their an we the million. very $XX is should ago. think about of of well. investment a as Today’s receive day, not proceeds is us; tax for way

the Simon shares. So, that’s

costs this contest a had $X.XXX about ended June. saw in that costs, activism we lot of costs that related proxy terms of In that quarter the we covered of to the

forward. We see will costs similar activism going

agreements through year to We of have advisor that XXXX. some go full

that into Those We’ve to in last and competition agreements amortize is things paid. going retention effectively So, yet year. a related there is ways back some XXXX. out be some still put

seen they So, you though, last will I see some the than anticipate over really lower two significantly years. that All-in-all there. will we've costs be

they're not guidance, so, in you And know should that. our

less is from to than So, adjustments seen what to will we’ve the call AFFO next substantially deduction expectation. be our to six it but FFO really there some some quarters FFO or

Alexander Goldfarb

it’s just to running the out just just from going X But are all got you existing signed run and contracts. though said, -- that expecting Right? them costs. out date additional there. you like what you’ve contracts were not It’s through It’s

Simon Leopold

exception of accurate. That in litigation is some is the With that ongoing.

Operator

Our of comes line next Haendel question the from St.

Mizuho from Juste Securities.

Your line is opened.

Haendel St. Juste

versus I’m of bit New more -- curious more differential or as maybe are those Tax Jersey, the quick or seeing of less that any those per Just your the a benefited How in sales can couple in that here. if perhaps from you’ve performance then, to Perhaps luxury, ones in if recent malls like more front. the profile regional your states were And perceived and foot malls? a malls? the on Cuts some states seen you sales more they California? higher you growth of your about sales traditional compare higher-end, talk square regions losers,

Robert Taubman

Bobby. it’s Haendel, So,

would first Easter. versus in look the Remember, the half year XX.X% all first this first quarter; the early an second and look in quarter, X% quarter, X% of first were of we’re I you did quarter have you at say, the the overall when So, that roughly. we at you

the reform, January rate the participation you So, the you seen a and the in tax you’ve in long X and highest Tax that had Easter, employment had quarter, X-week first you unemployment, a Cuts, and early had that time. had lowest

was And we second was all period. this happen Easter earlier then my much because versus are I in the things increase. saw a those continuing yet are for through a So, more happening. to comp in quarter comments this ago, X% the mentioned that difficult, year they year

the -- think all are things earlier. that growth, confidence and They those things economy about all good is Simon are consumer with I happening. consumer very those all talked generally, spending So, an GDP you're seeing high, impacting

generally start extremely you where made comments tourism high. getting when about is and Now are having most? more it Florida We the granular,

a And reported extremely board that Luxury that my are tenants centers. weren't shopping expanding are XX%, luxury so, lot the been but our there outstanding. comment well has been doing they of they Gucci was across And up in good. alone, now about that’s absolutely and were

significant I two moderate big in and than that fashion really better past. haven't customer due doing the we is way three seeing you're tenants say, where the a luxury would a fast one in transition space or and this So, own had or segment take there guys is

is gain doing very a took they Arrow reporting and You saw on in it. Simon's that well,

keep starting that’s well. number the you're is stuff categories. categories are to It’s not it’s doing majority we So, of broad-based what talking of see more the the handful and about a categories, vast

are good. to end is higher centers going the outperform, moderate ones. more is So, good. it’s broad-based. Luxury The Tourism

to We have are end both, of is but more delighted say, we proportion others. higher our than the

Haendel St. Juste

it. Got

more While And I you have you thoughts are the net Bobby, a on passage some I here think be am of stand internet beneficiary. on bit luxury your to if of more portfolio maybe act. of perhaps a the curious, you balance fairness

Robert Taubman

I on years. worked this incremental positive. it's think XX personally I for Obviously,

returns, about. certainly So, not that it work we become in the even customer it's pricing the programs, long It’s shopping and itself It's really the all pleased better really availability habit. And especially -- things loyalty point. creates likely something all fair worked to more these a taken by but at easier on field. center. means of playing we’re so it this changed But the consumer

important. not it omni-channel so you’re way not to it's I'm but more think to world now in I supposed now versus going being lower But, And an the end collect higher anyway. makes certain, it Whether tax. I help the collect and -- think it's is to impossible historically it's recognized. going it's being recognized the a that So is finally tax end, it But, important. we're

Haendel St. Juste

one on may I Asia. if then, And just follow-up last

beyond Asia? are open to the sense Korea And China compare looking how and U.S.? in rates they of you what other retail then, quality assets, in and cap perhaps higher your Just curious are exploring here assets or you China, on Korea geographies to for

Robert Taubman

hands have Korea the Well, two we China. I think And full our now with that we've and think we’re right said those the I markets. And really before. on certainly focused

low traded there As limited they Asia cap trade, whenever rate. of asset. at very, very far of rates, as assets assets cap those And are sales good in really

that we'll And see see. hoping And to we're we're so, of. that's something evidence going

more U.S., retail there than in seen given for I is we've in the two. demand narrative assets last all or Asia over think today year the that that the

Simon Leopold

over what there, either there and build lot of Bobby who like If you there, is talk over been to sales in build you hasn’t markets. talk assets a haven't volume people right, of there asset to our value appraisers been we a those lot of

similar in growth NOI growth sorts seeing, the you kind pay in that flow you because somewhat assets have be of there, of So, dramatically valuers, we're they’re our marketplaces. When risk keeping certainly look of things. you better assets that the that in are unique versus -- the And centers and three very cash even maybe and they significantly large better some place rates cap cap of you you talk see is should will if in particularly it's ascribe people appraisers, those somewhat in best But what you for talk to U.S. than will lower, to part the U.S. quality Asia that rates those the cases in growth a for that unique and the if certainly

Operator

from comes line Hoglund George Jefferies. with question next Our of the

Your line now is open.

George Hoglund

guys. Yes. Hi,

potential how closures do at Given maturity? And overall retention bankruptcies then, historical overall think slowed avenues tenant specifically other much lease you the more has differs somewhat, averages? you nonrenewal store from tenant and pace forward view going associated from just closures of just just store for the do and

Robert Taubman

factor, were than tenant our kind Nine the our was we’ve the quarter of expectations we really space one quarter file built that got feet into only second X,XXX that portfolio in year. of in bankruptcies right better square where had of two You’re for second locations. much really in the not in We West

part we are a not of lease is for our second cancer -- And factor in So, the bankruptcies guidance still store were the year. closures, big quarter.

be. of We’re as believe is and much historical at bankruptcy share, expecting thing. XX will norms high But we our lease to cancellation income not compared that million we a where that’s continue thankfully

they term be. upon our deals closure addressed the or have with lower some about closure expiration shorter lot some we’ve would risk which We talked than keeping are otherwise of of that spreads

So, certain in locations. those we’re of some addressing

we me has read be a to forward, on I forward, we question expect that’s really real give it's nonrenewal, a but be your tell which to see. hard to right think you can’t meaningful we what I factor case. is going bigger but will you for if now been than the think going Going historically

Operator

JP of Morgan. comes question Mueller with from next Michael Our the line

Your open. line is now

Michael Mueller

or development Hey, on and the was then, Booby. prove up another for open seems kind How the the process project. follow announcement you the something this open are that this Asia like one? you one three go centers, after to the Are plan is up opens It basis, considering thinking concept to just another going and do to in of announced make thing you wait about forward new open, potentially open. same going you are to a until you have before

Robert Taubman

in a of to overall it’s or we’re on time Well, we’re process assets capital whether a potential partners talking process that in. real

So, tell to that I going you make we’re deal. actually can’t a

investor asking. about a really but you're Anseong different what feel we the strongly think that's question than I

of conversations we with know So, having don't exactly but a parties. are very positive we number interested

be So, your will fruitful and you’ve forward But steps see. you hopefully, to keep consider prove we will they options. taking as got to

Simon Leopold

of will and a before project add hurdle that talked before about high need The returns forward, We They are bar. return Mike. we high. expectations team over them we and go that creates rates projects And that to find those I that there for that looking meet to is -- clearly while over meet not And a going daily bar, our basis. over get that expectations you’re on there.

looking. that we think If want we’re keep So, those it. with meets going something forward can expectations, we find go to to

point our mindful not now. the be right in sheet are going that and process. balance that we liquidity to And We’re of at

Robert Taubman

And we’ve good there got team that’s doing stuff. terrific over a

Michael Mueller

last real hey Simon, here. one And quick one,

just you used typically already just Was you whenever one or a basically one is at seeing this to was point we’re proceeds, asset to one. it fully it refinancing, of levered Oaks what Fair this for this excess looks conscious the loan taking out On like replace lot refinance the there? have a decision

Simon Leopold

we CMBS say the reopened we and And really that closed. Fair the not talking market were robust. time up same been regional at did Oaks. Twelve Oaks still financing from for until with best And And The about structure Oaks the of Fair Fair the the really did. and it’s execution need malls Oaks we Twelve year time, I’d the it could earlier we have get in that we a think for was place, standpoint optimal was structure proceeds four more. didn’t term We the more. done levels the terms at do loan and to have five-year in and We from context a that that pricing everything Oaks to in to in that else put we didn’t

So, we do we did. to what that’s chose why

Operator

question McElroy the line with of Christy next comes Our from [Operator Citi. Instructions]

is now line Your open.

Michael Bilerman

if shareholders relative a Board and you’ve in are years campaigns. comment that following like it through XX million. total There the it sounds the year, recent company round on. no, of the activist the of on to recent spent the to they Company over the two shareholder here end this hint there's that the annual activism board coming most the just was to on Bilerman board. Christy. have at we feedback certainly still shareholders voting an million want -- changes, think spent at wondering was not it most just money at that person Michael perspective lot various of probably with The so I can last call bit you the this some actually to in of is business the fighting It’s $XX the Bobby, and on terms I point, onto -- odds. activist And said come little a in election dribble And

that move between from I Board in Chairman What this what CEO animosity you do shareholders not the taking here? and is you collaboratively -- believe the to forward company. have sort and as and how of are work So, feedback

Robert Taubman

And of a meeting the first Michael, our general voted He sit Board all, I think the wanted to actually technically rules. Well, director Xst it’s didn’t know Board as was we he Jon, on, that not even point was if that that under he an day, annual had at asked meeting. June though was observer.

or is program. went observer He also to quite for meet boarding as and same Mike we very for report, the that all they other people asked meeting presented the that the involved at a as that while things to sit where comprehensive we and and and bring recently with a day. meeting he and This interacting we an are the the Clark whole in So, joined onboarding was understand -- senior through Mayree two-day Board program are Cia it. the or like the Embler people that that Buckley people in company on and counting he

goal And obviously I think share got improve price. has goal, we the we've the nine Jon the our but directors same including have independent Jon years that Board. same himself, joined of And five of speak find think Board can lot have a ways for independent in Board including I I that whole the Mike to members our Board. members the last the of of the now are and Eight the mentioned. two to Mayree

will we see. so, And

we've new Board three grade on. high new to process. continue refreshment struggles a and further work commitment independent three our to directors, directors and to continual is Board bring with refreshment, [ph] our the fulfilled We

this pleased are quarter. results our we So, with

Our partner sales And continue in new the Anseong about with half of announcement the to pre-leased move up. excited center Shinsegae. project like We're shopping a very them. probably the with

road. down moving we're the So,

share we to goal think all the improve price. said, have I As same I our

just and much million was date, buckets activist have management to you we just stuff spent and million [ph] XX of how paid in the some you costs roll things the some sense, just bankers retention back can -- of in, between so categories? I bucket like much half going at that’s a into to total with year the get is let’s Do how can of assume us into you the and it three those this XX 'XX. On typical proxy Simon, to then that? round and least give terms to-date, much that Just that agreements how paid to being lawyers, to in was

Simon Leopold

that the do in in I really stage be total over that's a more of this some two and is it terms don’t not believe that I that. is to years, of the to There said, of at you paid I in Michael, in still to lots over amortized course down break I $XX want million And future. like range. there can tell we little left number those the is reasons buckets.

it crazy that million, in the today. know really like or... But I sound numbers a about individuals don’t doesn’t terms before pieces it down $XX break individual what number paid want you So, of through quoted are we of to --

Michael Bilerman

going I another to the analysts, there sure don’t things else. something other if comments those these outside said scope something that activism of or your line In about is litigation. if into you that wasn’t I know referenced campaigns are

Puerto You Rico on? or mentioned litigation. know I don’t litigation the if else that’s may Saks in that be something going

Robert Taubman

is that's we No, you against thinking are that to there Michael. about anything the unrelated to already know nothing expense Buildings The Land that what & than more related is of ongoing litigation lawsuit Company. and variable is

Michael Bilerman

you $X piece would to for hard say to I company, management million of that. It's most at been the be I part expense. G&A, because G&A, or activism management people that’s guess truly is down, and about an that million didn’t when the paid should think of million, least those why And retaining break retention? that's about know not a that think $X XX people that costs is the

helpful piece being is that’s senior least -- one to would that line at much that’s to I understand item? expensed management really how mean that be in So, being paid

Robert Taubman

a the is G&A not, that’s whether or about arguing not Without million. numbers expense you to or with as $X.X

Michael Bilerman

Perfect, thank you.

Robert Taubman

my brother myself. And none questions? are other of there it or went Lisa, to

Operator

There at queue are time. this no further in questions

Robert Taubman

everybody Well, to Bye, you, months. We for look thank forward bye. joining coming in talking to the us. you

Operator

does This call. conclude conference today’s

now may You disconnect.

Taubman Centers (TCO) 31 Jul 182018 Q2 Earnings call transcript