TCO - Earnings call transcript Q4 2018

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Operator

Thank you for holding and welcome to the Taubman Centers' Fourth Quarter 2018 Earnings Conference Call. The call will begin with prepared remarks and then we'll open the lines to questions.

On the call today will be Robert Taubman, Taubman Centers' President and Chief Executive Officer; Simon Leopold; Chief Financial Officer; and Ryan Hurren; Vice President, Investor Relations.

Now, we'll turn the call over to Ryan for opening marks.

Ryan Hurren

Thank you, operator, and welcome everyone to our fourth quarter conference call.

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

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

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

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

If you have queue up more, please again.

to call Bobby. let me turn over the Now

Robert Taubman

year earnings large We positive morning, good in and newest from to centres. XXXX. everyone. Yesterday, and we for Ryan, contributions full fourth very Thanks, this due our good released produced part year, results our quarter

Company. tremendous our CityOn.Zhengzhou agreed three and a $XXX interest at Blackstone in for this valuing several morning, our of reasons. We total to was and quarter the CityOn.Xi'an million, partnership for Hanam, believe Blackstone. represents about the achievement to transaction Company whole, sell get our we at million. for transaction $XXX a valued Before This Starfield half key detail we into centres, as this more announced Asia We a our interest, XXXX

First, the value have created we Asia with it our confirms platform.

Second, as capital. we've recycling done historically, we're

will It yet, Taubman liquidity per re-financings knowledge, value grow. like years that network accretive a always serve associated and we billion. to Asia recognize dedication partners, improve and transaction team in leverage Their nearly significantly, to this partner will expertise, and importantly, And market strategic our Blackstone. inside $X.X for benefit has come. gained our by local relationships, our the as have share. Blackstone to Third, demonstrated. Taubman the platform valuable will for Asia continues reputation shareholders their still FFO will be confident I'd to and to I'm along now to create capability with of continue efforts the reduces

all for let's lease X.X% recoveries our including growth since Comparable were FFO XXXX. rate results. rents, was Adjusted termination Now to favorable. the operating was move growth expenses up year. In net and our NOI center X.X%, XXXX, $X.XX, annual best

lease for X.X% quarter. the and centers year. per our was X% termination up X.X%, our Average second comp in In quarter guidance to to U.S. foot Excluding results comp up same this very X%. rent rent X.X% all for the XXXX foot initial square was favorably over up Both our period. highest X.X% result income of compare square per was centers the average NOI

For to year, high. X.X% the was it all-time an $XX.XX, up

represent by spreads month basis XX average a points spaces number releasing rent. base XX XX basis Our points of The impacted were just X.X%. of GLA that trailing of spread and small remains

spread nearly releasing leases, trailing XX Excluding up our was XX%. those month short-term

to was year. XX.X%, essentially December last year, As occupancy lease XXst, center comparable compared of was XX.X%, comp center down last our X% to flat space

growth $XXX, continues growth month foot tenant rate best comparable XX sales per centers sales overall to was annual Turning our in be square X.X%, Trailing sales, to portfolio throughout strong. our up it XXXX. foot were of a solid marking sales number, per XXth is since our and the up obviously a square growth. great quarter, This quarter XX.X% positive was in consecutive quarter. Sales

delivered XX% than pace. only was, XX and month total that XXXX. the number significant quarter, in comparable be sales sales centers non-comparable US In CityOn.Zhengzhou, grew disproportionately quarter their our third high. portfolio, Xs tough foot However, another center Tesla, sales and per the one of more Asia, sales report Total tenant, a our in on at at a twice up that foot which a will for were fourth had Model quarter positive that for square a sales per Asia comp trailing the sales reached lag impact a In of all-time square XXXX. and

category of best Works. Forever Locker, far Vans, quarter Shoes largest fourth up and post apparel $XXX was Louis square Vuitton, nearly in Eagle, in digits. growth Women's per healthy all largest In X.X% centers portfolio increase productive the most positive our our centers growth. were fourth an Lululemon, few quarter. our posting consecutive last foot, A of performance 'XX, quarter, up XX%. delivered the Fabletics & Nearly Restoration electronics American gain. XX, over the in continue positive Gucci, sales newest Now were merchandise double to square per our the by Bath categories Hardware, the increases our and up of comp Tumi, Body individual of and key foot X.X%, Foot with year. Generally, included

seems following XXXX the last stabilizing for late months, assets. XXXX, elevated landscape retail the higher-quality and number Over of store closures to throughout be the XX experienced

is to three bankruptcies exposure relatively recent has of Our low. Gymboree brands. state the

In that UNTUCKit, digitally Indochino, We Charlotte portfolio stores last It's that bankruptcies Casper tenants occupancy. XX center. the improve fourth seven XX as to nine one add In At the are have XXXX. basis Jacks, open. like remain brands the Remembered. continued we our true we added last and call and but we It's have Peloton, estate, they vacancies, throughout mentioned emerging high-quality surpassed Bonobos, provide to there deals quarter our native total, were XX half the points will year, in eight of others with merchandising six about year, that of to and representing US and with likely Gymborees, Things also opportunity create real that our Janie locations Crazy amount, portfolio. X, Russes, have

and can very accomplished, We TV based the strategically and continue Google what learn both the the location Short and new like incorporate we've successfully. demo Peppa latest pleased for at devices a products about an the has with Great Home technologies preschoolers opened physical will land, operationally Crossing Hills US, at where we're show customers Overall, this in in British experiential year. -- successful uses. their on location data, play Pig, to here And indoor also open Lakes suburban Detroit. second

Now to the Simon. over I'll turn call

Simon Leopold

Thanks, listed the Valentine's Bobby. our Day. I'll page for variances Good quarter. They're morning, first review supplemental. everybody of nine the on FFO and happy year-over-year

restructuring our Property For of per a Group AFFO value to shares, the was was related our activism, which market in and per quarter, the 'XX. share to $X.XX. share After of share fourth $X.XX, FFO fair per of shareholder our Simon $X.XX for cost in adjusting change charge compares the AFFO quarter

cancellation combination primarily expenses. was due recoverable borrowings. down of Interest were recoveries As and expense higher due interest expected, the $X.XXX of the primary expense, recoveries were Net income. rates to unfavorable, the $X.XXX, and to variances timing lease

$X.XXX net $X.XXX up For Also for recoveries was income were cancel the It $X.XXX down the was lease due year. timing. favorable. year, to

of when due higher compensation favorable, were We follows. rents. expenses fourth operating due lower variances higher as for senior rents bonus to Minimum pre-development compared to was compensation a the bad year-over-year very had up quarter average other XXXX, executive to unfavorable Other debt primarily expense. $X.XXX. of recognized. performance-based G&A Our lower the was and $X.XX $X.XXX by little quarter expense

our up San and CityOn.Zhengzhou non-comp Center, Mall The Lastly, Juan Beverly centers, in were aggregate, $X.XXX. of

with expectations, guidance fourth NOI our in and in implied accelerated. our line As annual

quarter. We two the occurred in the U.S. the of are to in the net fourth year's which in recoveries retail is significant third they this Thanksgiving Asia, in Hawaii. in Chuseok, up whereas ramp in against quarter last in of occurred the past holidays challenging due Korean Also Chinese Moon XXXX, year, timing and NOI up Festival China and comps

earnings the fourth XXXX. not was expect sometime in We in now receive discussed timing our at XXXX. our business San of those we last uncertain. proceeds We interruption the of on As Juan of to proceeds receive call, The of quarter Mall in receipt did

our balance At the proceeds we sheet. shares. last Property earnings of October, week third to $XX we end an about $XXX the down results we of an transactions no Since last our our of both going The share the shares our the price we liquidated a Moving January, call, longer or we collected won't Group were a Simon remaining $XX a share, owned of have have at average million. FFO sold the from quarter, average additional an generating our shares, In $XXX of these remaining Since the late credit. in of of volatility to liquidated million mark-to-market price In own forward. XXX,XXX XXX,XXX. in used about pay proceeds. XXX,XXX proceeds we at lines

agreement $XXX that about equates implied This Company. on million, are that creation is entered created definitive into is million. Asia $XXX three In in the valuation this total confirms deal we've available is we've basis value to the transaction which website million. talked our the with we in investor value clearly These value assets a Asia. the -- in about benefit Blackstone of Bobby in our morning. the As significant earlier, The highlighted presentation, aggregate, $XXX to made

million capital equity have in which the million equity. will the value to this almost majority re-financings four in common approximately capital initial the China our all, times $XXX property IPO three $XXX continuation Out but the level half projects. our Company only of expect projects, property initial million interest since grow is allowed is the $XX of the its continue $XXX returned, $XXX strategy, been of demonstrating level we our will no Company planned equity. over agreements recycling while Beyond million issuing assets, current these and and debt. and equity about our the market of of After creation, of net This the has XXXX transaction investment recycle allow million of we is

$XXX of We significantly million total China transaction of expect re-financings, credit. from which on will associated proceeds the and borrowings revolving our lines roughly reduce

to forma term, after be past ratio did of X we'd the About not XX ratio to where times EBITDA the or completed. times. we basis occur. we in a expect are debt said X target we've have points pro the X slightly As if times be, On above transactions half this transactions a basis, to

million XXXX, from will Finally, higher The accretion for management $X.XX two-thirds of about this majority of $XXX to On our of incremental lower impact call, FFO on toward of in provided last all the to cost. our $X.XX our these XXXX. come and of accretive from borrowing progress earnings commentary and we income place transactions our XXXX the about will we at meeting per between NOI rest fee share estimate target share. detailed

we three about and the the reminder, Authority assets, at components former $XX from $XX core target, CityOn.Zhengzhou Short targeted of Generally, in growth a same the our the quarter components. as million of Hanam. Market boxes. Green of Hills all recent are four Hills, Center, CityOn.Xi'an, our And $XX most finally, box view million from As progress our to million Hawaii, Place Beverly this three there from call, to NOI an of share Saks expressed million additional Sports redevelopment third three remains of $XX our $XX International million our and Starfield for projects, in development

in upon be and our in on growth to XXXX, in target. noted would the Based required of and growth a this meet 'XX 'XX $XX rate for First X.X% XXXX challenges the X% results expectations core million to we actual about meeting target.

the that disruption grow in unlikely the it's core at level. environment, Given this retail will

at near to are NOI Next, post-renovation growing. the positive online Center outperformed on we of historic and of year, momentum our on target majority schedule continues be our XXXX. expectations at with Hills continue range. they're peaks to the Green in reach our June The and expansion this open in redevelopments Beverly remains coming track Mall The sales to

Box Saks the open retail well. two the tenants and on the are floors Short Hills Lastly, at first of performing

be We occupied XXXX. the to in level third expect

recent our we target, to although $XX $XX million growth million would million required. in four track to strong developments, trajectory above Recognizing we our XXXX Finally, what which of the we're NOI of on XXXX million reach produced be these continued -- in at $XX to $XX expected. grew well believe projects, XXXX,

in interest target the Blackstone, sale centers of following longer Asia is However, of our no to half applicable. our three this

this and is Given This our believe of the final to track share of this the of Company made modelling changes now the NOI. our beginning an XXXX our since will environment you quarter the in we rate goals, progress being our facilitate will pro overall Company the progress Company. in and against first said, these XXXX, allow retail time we and valuation to update. appropriate make we've tremendous That disclose and will

Finally, the guidance.

As release for to share full of per we FFO midpoint XXXX, with the stated in the range an $X.XX $X.XX. to expecting the $X.XX be year we're a in of

assumptions, range supplemental. six Our be which based can of is the on our following on page found

year, expect the we NOI, X%. line our XX% cancellation XXXX. in be For income lease comp-center comp-centers is be at is in with excluding about to Occupancy year-end, expected to which about

and cancellation $XXX unconsolidated XXXX. our at lease unconsolidated $XX.X interest these supplemental. share million We've our down million of XXXX. be XXXX, For $XXX of $XX included to of estimating breakout $XXX our compared expense share, We're and approximately expected will in also the be ranges to in portion in consolidated from million that consolidated is million the to million

run to XXXX compared expect our million average to $X down to We quarterly G&A rate $X million in XXXX.

Our also the of guidance lease expenses. adoption additional range $X standard, resulting an of in accounting $X the million to million includes new

I'll million this item the will respect Mall have of excludes XXXX refinancing With proceeds the in other of back associated And San closing determined. $X statements. as in finally, operating Juan. in that and expense of insurance note And Blackstone to As a not the level yet occurred with for China, XXXX call our to receive we -- classified that, The financial transactions our turn as interruption please expect the range been Bobby. business impact reminder at days hurricane in be property the about

Robert Taubman

some build equity capital will It and industry about find which get also reinvest, be been for assets to estate the debt Thanks, NOIs. Simon. will We've and Great their talking sales in the real bifurcation retailers, grow time. best the required. both will continually their

quality this In As the in not Today's reinvents evolution, retail the recycle what years. struggle. lesser announcement to of transition, technology, positioning an dramatically demand capital. been a for we've industry, context, step that Company continuing this shopper is only and driven our important by will we're assets number

As create throughout for terrific takes our sheet and further history, our does in the patient added done we we which development this balance showing the With done continued Company have positioned a Blackstone. partner are when improved value. we've transaction, properly, growth,

Company believe the We have as great people, rate outperformed. have assets and our dust settles, will

to Before tremendous and to the been will case add On our and transitioned Craig Company. same shaping Craig Board. sincerely impressive committed the products public the Board thank Hatkoff, welcome They the missed. integral experience they value consumer to delighted and well XXXX, backgrounds governance, questions, as from Chazen time, we January we many At company IPO Fields Jan will are get deep and since to to for Jerry two Nancy since Killefer and Board. Company's be in Their as of like in would of In I retail, very outstanding the leadership who've years. formally Board Jerry, our strategy XX, XXXX. members, our areas

The been success each have four all below Board tenure appointments, of over our now, within involved in the execute of independent to to whom worked would accelerate of three skill to tenure diversity five of about these bringing appointed Board, of an directors I while shareholders of members year. the and years, tirelessly augmenting like sets years. Board its refreshment of very commitment our Board. Company members last average Company's years. the of women, eight tenure, have With Seven the average the been whom the nine reducing the on continues to relevant are X.X directors last and have will the enhancing all thank

that, with So your we'll take questions.

to As Ryan said, questions please two. Operator? limit your

Operator

Alexander Your Goldfarb first question Sandler comes Instructions] [Operator from of line the O'Neill. from

open. is line Your

Alexander Goldfarb

So two questions.

just first, the First, to But transaction the FFO. going to congratulations. -- to accretion $X.XX $X.XX

huge growers sounds FFO a Asia $X.XX numbers this, to overall for sort like $X.XX XXXX. that So, on our impact it to the negative to have and no the like it portfolio. all been need with But NOI we sounds properties to helping Simon, there's of add

NOI $XXX think how So about it up that sounds can of off then also I just that guys to understand FFO impact million had, transaction. want just there. that help doesn't you table, you sure It's goal is goal understanding. that the like us and no giving you as in because part longer this I'm make

Simon Leopold

way, basically on share we way for it to it's make calculate obviously of an have XXXX, debt make The time you on need if going make to had the and a to assumption $X.XX have this it an accretion February which way take calculate you to to transaction, $X.XX did these would already an and to assumption will you count, full levels. you not close on this in said place The assumption is the in it's we this Alex rates, some you transaction because we things, have because be accretive. year you

accretion close will transactions close. You you these continue do until That will get as from we update will XXXX. this as they accretion we and

So, without how be, tell transaction. pro the other but entirety debt, we're on sold a count assuming, NOI Blackstone that on you it the today I talked view putting be can't I've that will that the the that takes into it exactly refinancings and about, of takes rata will into the you account, into two things just place accretive share assets the rates, account

piece first accretion. on the answers that hopefully So,

number, clearly million to are from which million. The for which number, of is second the anymore developments. that China, not in the on applicable the million that $XXX We three are four of reason. The piece targeted coming that $XX $XX bulk

the not report part is the we're on million anymore. why going to $XXX that of So reason

of performance and portion of that. we've least good million effect, for part alluded, this you guidance -- involves or the guidance core continue guidance XXXX their year given be of on we'd giving that, We of reporting also core, to that $XXX in a portion of on at you XXXX goal large a are

NOI. right is all What so put in investors giving or it, you our we this in it pro going rata number. is track of returns, terminate the our time to specifically are So can doing we that we're guidance giving think to together and on statements start suspend share you us for financial actually

to of on will you ability growth quarterly our a NOI So NOI against a basis. share time real growth, have our are where track we

Alexander Goldfarb

And is a Okay. is you project, anymore. the about in partner, so not that. second or you guys question Blackstone refill then second on Korea bringing continue is there with on spoken signal Asia expanded going has this you're basically just go-forward, And a guys are a a going to the had two that curious platform

Simon Leopold

been Asia. will one partner Anseong latter into community scheduled at the telling Alex, open we're we've to a its Blackstone for some bringing for number deal The portion another. capital of was say in XXXX. and So, started a has investment now Anseong time options looking the that of was obviously, I

that and optimistic with we're will be budget. experience Shinsegae our time it Hanam, Given on very delivered and on

feel We about job a on based Hanam. team great also all there brands the brings in the table. And that leasing to in our Shinsegae very the good strength did

that but leasing be able a some our have and we're a with sheet lot that really to point. a evaluating at project, we in be could of gives Anseong the more to factors partner intent to of into the considered, Blackstone decision development for timing. replicate This bring view said, the involves, balance deal Anseong. flexibility That A realize. our it on remains us pricing expect risk our that to We number of

you leased shows, in better deal a get creation, assets bringing built, once successfully. partner Blackstone value the and are operating pricing and the As

we'll it's we'll is of which final a fund, it point, Blackstone pockets Blackstone's Asian fund stabilized development Alex. focus that most And see. that Anseong, us So I with we'll this what is of the investment One development. relates generally amount of said, through on not be would us very number but partner like it on possible not as with capital, specifically that, an the the on see. will see in makes future, plus core so source, likely assets has to

Robert Taubman

the of as in recycle would future, that self-funded, far as the sort in announcement the Asia point base Taubman make step to the but of able Alex, to costs have we to eventually the -- clearly And build capital today's to think asset platform economies U.S. like to get create scale. I we and and a is need where continuously more clearly as spread we're direction, and greater

capital not model. the it model, asset management than our less US it's per require but fund does Now,

as Now, add long but be for absolutely Clearly we're our investments to is higher high reconfirms which to have to a committed platform. and that we obviously assets. believe assets strongly China, We to to commitment this time, for continue good time. over profiles Asia fourth to Korea the and demand hope we transaction are and our going Blackstone, exposed expertise our growing quality Taubman to project, to with GDP the in continue build very going really growth Anseong we're higher is the selective opportunities for

sets So again and is our to transaction for a really it us key future. the this Company

Operator

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

open. line Your is

Jeremy Metz

talk paper little How long if you before you in Blackstone? were were you a through went have with wondering so, process could actually on with Blackstone? discussions just was you Were trading And you properties? you marketing other about the the ultimately bit Asia I bidders, settled actively transaction. been if the there

Robert Taubman

deal many with I partner. work think, that to better marketed, made were We a of year, there with that we JP a the us. announced widely this very was spent we've great interested part We the Morgan very parties. confident strong had

very is most with good made we've any partner that great deal, a thing look we're important you well. it. at can I as got that comparables think as the but And a pleased we've you find, So,

Jeremy Metz

at meaningful be X% noted, impact Sales been contributor as have and assets, comp And you therefore NOI strong, NOI what transaction? can you from would to about to were comp post been a you look if your to forma Asia talk look continues this on the a has the the pro sale, for growth. the like

Simon Leopold

NOI, do comp do a it we we way at XXX%. The

they So, comp stat in forward. remain NOI going will our

So really there. no impact

the sheet perspective. We of thought value We still assets us all to and it do a right their we these with right venture was landed was the thought the of Blackstone. the thing the reasons right as thing feel the as joint is it -- is, to balance terms do good give thing structure we've do in structure partnership this thought good from why But is well. One confirming created. that We balance because We of trajectory. growth do thing and from thought to we for this about want sheet a we on this that's to right from a this up very perspective. was that very a liquidity we standpoint to about didn't we feel get right

will as time. assets. growth to these we as this Bobby high the as find to projects be already we said, assuming will over base believe we're maintain can as we asset have projects going good still exposure we to there, that add And So and Anseong

Lastly it's that think perspective. continue to talked about create run we and the do of on is an right for Blackstone accretion -- from earnings generate a And these thing to equity think better just -- in from assets we from return portion us, that we're throw fee to to would that a we it's and to the the that income there, way, by significant. management good comes we investing

Operator

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

Your line is open.

Michael Bilerman

into relative getting Whether it they Wangfujing your two do to refusal fund are stake? offer here sort Bilerman was then done. forward they of Michael it's to, if that. to a it don't a had the you want you now secondarily, or I their Hey, Christy. the that had right Morning, of they you your seem relation things? wanted if And Bobby. were have and to at to first One, what Blackstone right it? or to what deal some What going right Congratulations first exit. back, in point. as talk right going Can had structure with buy marketing your it about rights partners holding of on know, Shinsegae stake, is to sort They're just you they buy partners?

Robert Taubman

Well, first of partial in transaction. Wangfujing both any in and the all, Blackstone Shinsegae, this, have -- a the with sale, because essence rights front not it was did of

this core As sort plus There are of life, their as opportunity context between much ongoing, funds. that in exit, It then are in of has classic far very again the a is fund. certain us they market kind are longer arrangements that have would of I rights those, And we in them we're market with. have very context and -- that they the very the would much I think that comfortable of rates. and I call both of again,

Michael Bilerman

you've where probability million we above assets that of should and received, that, about think so share And for. happening? $XX about what the bit beyond for currently if the can $XX think capital north of then how is that million in How terms you a of we can the you $XX million develop earn-out triggers of performance, already these based on that little that incremental and which about and XXXX

Simon Leopold

is fairly Michael, above NOI, is NOI the a The it's incremental it's earn-out Simon. amount structured, way It for budgeted simple. XXXX.

right give to on lot that to have, a of what whole some budgeted that the really have for stage, create the know about. these absolute more good difficult these recognize we us individual deal to this we actual really you we early will a We can a of growth. feel and is We're we that XXXX. levels but believe disclosing amount At I have than will performance assets. I to think it numbers, of give for believe terms to the be will over in at continue three part ability this you we going are going deal much now, that assets not the we time. of comfortable based these earn-out. it's But that don't It's give more budgets

Robert Taubman

significant assets some Blackstone be to would of all increased they're I be based well. thing on I NOI that happy the going them portion if because how is, as disappointed say And going us, we're add to to only growing. been get to will don't the would very that of have The that earn-out we pay enjoy

Michael Bilerman

an And yesterday? into in clarification, for accretion number. that you guidance numbers, the realize Right. $X.XX to just XXXX steel? last, there $X.XX Or I presented any you in the is baked But just the -- out it's have you was completely put accretion any excluded? baked annualized

Robert Taubman

guidance. No. It excluded is from completely

Michael Bilerman

excluded. Completely

numbers. things to these close, adding as So, we'll be your incremental additional earnings

Robert Taubman

absolutely right. That's

Operator

line from of question Your comes KeyBanc Todd Thomas Capital. next the from

open. line Your is

Todd Thomas

following-up the sort of transaction maybe phased maybe the described whether assets in can assets? better closings of moving each of two a a close on Just the China us timing which also you bit some the expected refinancing give throughout and timing to separately the and around the just little of parts of sense here you XXXX, being the as of

Robert Taubman

close type of different slightly We do expect times. and one them closing rather We're highly will would all got at probably they that which things. later. three has characterize requirements, that probable of these I close assets year very the course generally in normal than different hopeful earlier of will Each as

take to assets. a us The do it U.S. of offshore in going you'll start really collapse sitting assets, have structure to that to you'll that's we in to capital what into the onshore -- done, them send that later. after the where that's challenges So of us collapse we non-recourse back right complicated do the announce actually will the China. some three capital in very got and something moving mortgages And to result actually. year and fairly rather non-recourse offshore to the The in the we accounts will being low on now We'll China. structure able allow that us that are bank LTV. In allow than are that there earlier you've And re-financings LTVs. basically traditional, is assets at to Where, you're have closings low do anticipate which capital of very have a is in Korea, all mortgage see re-financings largely on

forward. going simpler it think we much so And will be

the because and assets that We attract ability levels. proceeds and to now mortgage have are rates these good will do stabilized

is thing for does capital. I is back out coming all leave I leave for not capital get these proceeds. think, no to is offshore that, the need This need to does should U.S., risk us not Korea repatriation to to point the there other that here China, it this

no there, which So risk we important -- no risk of was this. thought piece all an

portion all sale just the the accretion about, the important is cost this and from itself, liquidity from of the I the accretion the refinancing and for structure talked of are the the comes assets. sale additional as themselves but Lastly,

Todd Thomas

we Bobby, plan. Anseong expedite Asia? in suggest any And or Asia future to developments should this And of comments way, your growing part additional is XXXX you does future that help announcements expect transaction continue the but under have for Starfield in

Robert Taubman

that. pipeline. do this partners, as the China at able be at not Asia, a no, ways having they've of our your to of point, to say, as as capital. raised would in I Blackstone want capital, lot they looking Shinsegae and working but well they might clearly We're Korea, put Wangfujing We're in both partner, the in out with one

begin additional do XXXX. expect have right assets expect do we to that come high-quality else will us. not no, in that now overtime, we we to So But anything

Operator

Your question Stanley. of Richard from line next Hill from Morgan the comes

Your line open. is

Richard Hill

good Would which up to term is Asia about changed it's the this By in long guys. your assets? of lot something transaction Hey, How the your capital. I experience your you has go this all US maybe of a tremendous States? to your at views in similar a doing bit. negotiating sidelines. on sidelines. comments amount the locked to back consider United morning A of want the ever on the unhedged capital flip discussion capital amount account, Wanted there on little

Robert Taubman

to continue supply as I new Well, ways other the we calls, and dramatically. the that retail think US that actually believe said we've demand for that we is in retail on think other pretty frankly, will reduce and extremely limited in supply

challenged, centers of that believe ultimately going will a are we so, that And be close. lot they're to

more in to going. investments So beginning retail than we Asia, fashion really Asia really the on that us ability of. and identify to we're and as to we now we are demand ago, sort that a are build supply, would capitalize we've made decade build led It of this off in the be

we demand in question don't space of at your the properly, I States. see United if lot So, understand all a for new

all. really don't, opportunity I so don't at we see the same And here

Richard Hill

Yeah. my little Thanks, like would Beverly something Center private a you maybe equity question, I Bobby. On Maybe long-term can ask differently. bit that with JV capital?

Robert Taubman

with, Yeah, actually to be and the happy look joint but I we certain be would and assets. interest and And, overall assets. high-quality venture liquidity think have we yes, I is at sheet certain everything don't we specific, and would that in assets but else. -- our needs there to we balance have that want

earlier, to said As I high-quality assets. equity is debt the and flowing

you find got If a equity. debt time you quality a lesser have hard asset, or

Simon Leopold

of only portfolio. say to at of at is, assets the This nearly opportunistic Rich, be if every the I ability transaction look we liquidity, that in gives wholly opportunity do assets one assets the if And of would you high-quality add and them category have to would US, and the own to -- that be fit I'd reinvest folks. are our that. us you interest certainly to the would if with the in look thing more gives in Yeah. owned Blackstone us our

up. think if less but we it -- you never makes that a certainly lot although the it say demand, would opportunity right do of never we would So, it you that, say, there's comes likely never

Richard Hill

that two one Simon, was questions I that question or -- that asked? was

Simon Leopold

another You have Rich. question,

Robert Taubman

way, high quality. Either with

Richard Hill

that bunch you NOI were your guess my is up other on in based to sort the share, of you that understand would just sort report of I assets and free Look, you I of doing share Here just portfolio. Or highly, off highly at overall productive over some question. economic XXX% JV creation a Why the cash did NAV why consider and focus the table is term? NOI flow on point? longer but

Ryan Hurren

but at planning to first Ryan, Hey, in the the in may one it things opening share. quarter, the we missed the are Rich, at you comments, of noted he NOI beginning Simon's have Company's that it's begin our providing

So look QX. in that for

Operator

Scotiabank. the McGinniss comes question next Greg from line Your from of

Your line is open.

Greg McGinniss

about is for well has Gymboree, thinking rest been, for so Russe, the your have kind as Remembered, exposure I'm the announced far Things year, what year of what bankruptcy expectation of Just that your closures. Charlotte bankruptcies curious and this

Robert Taubman

stores, recent-stated pretty in overall in specific inline think our how XX but total, bankruptcies about, basis prepared many of comments are all were of XX, the Greg, our about points I space. we and was it

XX seasonably highest it's the you quarter If typically and the always been the bankruptcies and between points, think somewhere of be year. first quarter XX% that probably XX% other in about has basis entire

if -- that's -- space, space. maybe the XX%, high So it'll as have you X% XX be X.X% of as

decade X.X%. has over think last I Our the been historic average

to we're think So thus of going far, out thus really average sort you far. in we the quarter. first extrapolate year we're if What looking see

is their we for So six that higher think do I Remembered. again percentage in to quality be going stores lesser assets. we mix Things seven have Russe, but of have Charlotte There spaces, these

you So, if every you belong have they shopping in don't means have Things X,XXX centers, Remembered, only and seven it center.

your in Things going you're of have every If assets, to you assets. Remember lesser one have quality

is types So, of retailers assets. struggling, I think of in them are with that number what there less seeing these you're that our

we statistics -- think bankruptcy historic we historic in very our go, as are comfortably, ranges. our far as So,

Simon Leopold

general, started were we've tenant and tenants. we the bankruptcies that cases, expectations, that In some in that to only reduce the watch add from thing to we list, we levels these -- on most have cases And thus were the Greg struggling. our that in actually rent is, that far, our I'd reduce seen knew

the exposure less it occupancy a is from from perspective. perspective is actual financial an than in So even terms us, of

level in feel reserves seen all year. outperformed reserves those last did The like 'XX, already 'XX, thing in what the pretty good and because we for So see. an we what think appropriate built we to for significantly we we've It's similar in built reserves. but may in of we've we that need we've

see happens will We in XXXX. what

Greg McGinniss

Right.

Okay.

And this store number on say comp so, else from of NOI, kind the let's a but thinking impacting is an platform bit then X% wondering year? that which and more of Asia what I'm contribution the about outsized bankruptcies, the US same average includes,

Simon Leopold

I would environment. the is first, the say, piece Well, biggest the retail

clearly is our volatility. While of still quality we feel the our like assets through, are coming clearly, assets

said, So there is we if we'll see reserves this we'll still amount And -- like see substantial of year. need it. I

by results Our definitely developments. we're helped out-performance the new four in 'XX

happens to that we'll there. So, of will Asia one the year. think out-performance in But Hawaii. not continue level NOI on the grow. We we're three those what again in assets and counting this Again, see

growing sort portfolio there throw I'd our that's our remains the bulk say nicely. last of bulk The is are it. really the doing best They're that, of solid. in really great. assets piece, I'd of so And The

this small assets declines have some expect of meaningful do NOI number year. We a where we

little One couple issue through, of a what competitiveness repositioning of is and and I them them a really of think a has going are a a of bit remerchandising.

all of of X% all are bit where small you take you a portfolio I'd these just assets guidance brought down being of the number say, are a you put top with are sort bulk by now, but is is real we that the bottom. things together, So really that that the good, little very great, really at right the together, figure.

Operator

of comes Deutsche question from Bank. line next the from Derek Your Johnston

Your line is open.

Shivani Sood

Sood for Derek. Good morning. on Shivani This is

growth little figure trailing the sales you sales, Bobby, XX and about might bit Tesla. a been skewed bit impressive had have it Just little by spoken month a that

So I'm of that excluding morning. if then retailer share amounts. of traffic sentiment wondering that sort was this released just Tesla the so retail trends you sales And seeing could the far that you're was light what and figures in year, this

Robert Taubman

part the growth. be this substantial one In did a because it we was it specific Well, bring up, of can't Tesla. tenant. We about case,

So, and it comp. be difficult will a

now. from You know, year a

is assets. leasing good leasing there with efforts, our As -- pleased demand complete. environment XX% this good goes., I we're the for is far about year's mean, very we're tenant as of leasing

actually Occupancy out of beginning very has away. up. We think emerging years strong grow over these ability supply as closed a which around that is the it's goes now our 'XX, And will That's brands. that you in volume way, sign very has We we're remains, just a continue to volume heard for for going weaker the to year-end good where XX% again this last been pool, improve is few year XXXX. we and very important good. to growth rent at in increased positive the think rents deal average some has grow certainly tenant Our X.X%. deal We shrunk 'XX, year-over-year.

So But of the And literally show, is our gains, market, market bunch and are its that, there ultimately NOI. our sales beginning close we're a there occurs. to shopping what a centers into that big in -- we Detroit, way this seeing now is and will the they're had make up. -- transition share

Shivani Sood

you you sort mentioned And for on the within of when business of and The do Juan, a the insurance then, expectation as Mall be should can well. us general year update recognized any give had you interruption have San Simon there

Simon Leopold

we're I that really, very can't -- going will on feel the going deal be give you an it timing. not until very, to sign XXXX. not done to update try good in we that the But in We're as we XXXX we're to hard right way. we and feel it like it's right the in amount the to be can. believe will do We soon get working

Robert Taubman

good I hurricane you at which the 'XX momentum. And and San had Juan. to if if look post look not against 'XX The comment of general And hurricane, continues disruption it, center at a have the just you but would about very 'XX. make

we up year, is got your were in almost total sales current now. XX%. and base your 'XX our We've open So our XX square stores per sales is foot 'XX year and XX% up were

was this open. news We stores another is really critically last just We But, always have Banana our it four to have element don't the our or don't be recovering. going call, we we tourist opened and there. XX kiosks which We including thought important yet. -- still since Republic, have we really

shoppers our remain local. primarily So,

calls it. the are of supply and we get And other can it reasons, So and we we the are things not of and on grab dramatically of over will about recovers, remains going that. the talked think improve. to was before retail people that, significant space. improve. piece And that, if lack we've really than to other insurance business rebuild able hurricane we less It for And a time, tourist that

we're process, long a progress making it's we, but So against that.

Operator

Your next BTIG. of from line comes the from Sullivan Jim question

Your line is open.

Jim Sullivan

congrats and the you. on questions Thank deal way. Two the by the me on from deal

you the all, Can 'XX, assets? has Hanam deal versus at rate the cap given rate is. for strong Hanam was cap on X.X% cap a lower of Chinese confirm priced but rate asset First the presumably, that two a how

Robert Taubman

of out was really -- break The an other kinds are the reasons are there We overall basis, allocation cap that made all can't tax and of was The kinds rates. individual deal reasons. for there you on are all reasons, make there allocation.

rate break and out. feel we a So we XXXX can't it very cap X.X% was income on it pricing. good Overall, about the

Jim Sullivan

you did transaction, regarding the for selling the bigger private sold you a process? question, goal Blackstone besides process engage or slice the here you other players did during and equity smaller with Second of half goal consider your always your Blackstone the potential Was and of or interest. that

Simon Leopold

be handful down of terms it thought that And we this whittled in that than and in We talk We that also infrastructure we investors We marketed would but we Morgan in would we what were we JP flexible different different assets. type terms the have somewhat Simon. clearly We amounts would GDPs to were that of remain XX to deal more like. process. partners deal. in of widely to terms exposed these we deal different say the do -- flexible great we be we in entirely, would think a the ultimately think which accept. forward. it's to of that idea to biggest for Bobby great of one we whole a would We been I a terms, of us going landed to Jim, And mentioned, which that is hired run will is, wanted for host and partner going the reasons. sell a it never on structures. I Blackstone of

Jim Sullivan

the type interest comments, that deep? you fair given would demand So this interpret as Simon, to fairly the for of say is it

Simon Leopold

actually. very interested pleased that and strength the with were the amount we're people investors quality the of of in the We

Operator

comes the question next Morgan. of J.P. from Mueller line from Your Michael

is line open. Your

Michael Mueller

Yeah. Hi.

spreads. about like My you've reported these for mean you congratulations year. X% XX well. and depressed of on question a X% spreads, seems the over as talking it First transaction all is levels trailing I month to on been well lease

they So, should and on curious point, anniversaried why just basis? number not I'm at have go-forward this about how a think we that

Simon Leopold

incomplete take incomplete, know We is, it for an Simon. least. an it part I'll really bigger this manage relates And the really of NOI lease at to to it's Company for our Mike, folks, it's the is stat tells merchandising. picture. as it occupancy important but story the and for first spread we

of by take there. -- doing spreads. and clearly centers, we good NOI merchandising is you piece compared may your tenant hurts still occupancy a merchandising, said, your and fabulous of piece typically a currently in to reasons, some an centers. As outcome we're have our what that great think doing center host we're lease All norm what of -- terms it's whole leasing have and some for of handful a but right unoccupied that are may that, that great for deals think, very don't because for in NOI, important. And put taking and thing, a those is you It's good the we example, critically a it it's a well you

better spreads get terms. better to these translate certainly future, will into sales leasing do so that expect we in particularly the So growth, as as

'XX this effect a deals points negative still 'XX, on partially that spread. we at overall meaningful really they're at some a said did that we doing we but impact up, is it's have only that of occupancy but where and the If what basis here, XX deals in you look burning on spread, of are some in the

Robert Taubman

We and about rent, but take rent focus points NOI Mike, spread. almost more on XX XX%. a is with of an basis, said. you would weighted you I And the spreads, what up always business average for manage the XX% it's points which basis is basis growth, XX out, on end we've which don't

location, maybe said, it the smaller decision, dramatically large spread. quarter vacant all So a Simon for it you they're -- maybe as can one accretive, to impact there merchandising it's a is portfolio, in numbers, stores or the decide the in make that also two that

Michael Mueller

is So about ago? batch of small quarters the leases today the batch six of leases a arguably answer that is about it you're were seems small talking different that you like talking

Robert Taubman

yes a it's would the general I say, in your but question yes. to answer is continuum,

Operator

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

open. is line Your

Caitlin Burrows

a cost. just one quick occupancy guess, terms I in of

are companies. compared of your guys years, at other is few You the but to some low which XX.X%, than higher past public own

I that today. signing you're do just I you how was So does to compare trend leases kind wondering And guess to forward? -- going where you do XX.X% it how of expect

Robert Taubman

through had -- your XXX strong to, tend Well, down. when quarters, grown that cost you since the come over growth that our And XXX sales last trailing to see XX sales it from have period. the occupancy will we've XX

So that's about a XX% increase.

mid is in seeing up little particularly, we in opportunity. 'XX, the for it in it's than -- but us believe going environment has, And catch of is rents time some a the to there are take have take it -- now we do think that sort we for to making room the We to and right longer our -- it best grow.

Simon Leopold

says And I occupancy slowing lower, sort has in sales XX% would, in And over it times the of goes growing Simon sales circled. goes times we've number the the as that years the it been total higher. of of

do become feel tenant be higher. we going and as footprint, brick more expands, number digitally pricing guys will that they're mortar improve. And to -- why the these native pool can So

are time So, good both things sales and demand, but moving it fronts. those over good takes combination and on positively of

Caitlin Burrows

And then maybe just another one.

but anchors, of there guys have you give to redevelopment JCPenney you boxes, I medium extent could term opportunities? some be that you what any to don't know terms near In could think or many Sears comment

Simon Leopold

in only three, owned Fair that's Oaks, one Seritage, redeveloped two process We them. that by of by we stores. them Well Sears is at is had really being the have of

very rent Sunvalley, us for nominal two, location. in other from and our both The Oaks Twelve see Sears we

really not is issue And which operate. Sunvalley, it's they a continue for ceased So Oaks and have recent. at to and they us Twelve huge operating

exposure. sort that's our So Sears of

revenues and all it it's a exposure X%. When amount. percentage not and you our our stores pending a you huge store again overall, about of department at at look of We is look have four as

over less full all reliance Forever the the seeing pool there generators. you're specifically So with XX, with that your what Beverly tenants nominal, the and when Macy's, and seen on I and as we're is representation you years luxury fairly not Beverly, focused department very Center, us, that And nominal. at the really Sears stores UNIQLO, less traffic anchor and that the in stores. you've And big and but way industry generally Penneys, have think and what from within focused NOI the across it's on just is what's so the really on the creating Zara tenant that's a at of and destination to we street Beverly, look not we

Robert Taubman

that other realize to both. in think been plans had able And -- for We the we've yet. may years cover forward that but your on different been to response about we three Caitlin, Sears And we haven't medium those opportunities now. boxes plans near We've question certainly come at haven't just for opportunities have that and up, our opportunities the in working we may looked get those those going term. in off we

have we could right nothing time we to and be We it now did. announce some before do think

Operator

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

open. is line Your

Craig Schmidt

this on Thank you. still from tax is money free? but, may touched bring have Simon, to this been back able the you

Simon Leopold

a a is overall scheme for I'm after and growth costs about $XXX that, China a of transaction. Korea, above or about very little, do proceeds is in tax gets expecting transaction need to to onshore we before not proceeds It Blackstone We're Craig in small sorry, that an small the is million, this. little in We $XXX shade there million. net talked easy number to down Blackstone, of a pay the taxes, from That is that repatriation. bit that process

million. number, a between delta there in $XXX So tax million is is and that small $XXX

little but bit not a So much.

Craig Schmidt

yield measure Nordstrom changes regarding this club? on Okay. just and are will accompany other the of Plaza, addition addition Country this then And the there you Club Country addition how to to

Simon Leopold

changes, you When other mean say the they -- I Craig, are...

Craig Schmidt

More shop or... added

Simon Leopold

minimal. very There is

What the $XXX as And New space as is making do experience, for event. center the off, and think the shop different solidifying The associated center no of altogether. something be or really one-stop center, food well really net is we're market. which asset the of I is that shopping with a store that with over being we absolute the combination restaurants doing tremendous blocks with seventeen there's created Nordstrom million Nordstrom actually a merchandise -- in XX us going over are Remember -- really is there group department really anchor store destination. the list that today. come to today the

along destination. but to the really we, priority center. with our there, the there. is the food department So this becomes There into in-line actually opportunity space critical is the space store first The expand to retail as the bring two Nordstrom's

Operator

next Jefferies. of question comes from Your the Tayo line Okusanya from

line open. Your is

Tayo Okusanya

idea up of levels for there that And for exposure the I versus I'm are understand why could kind making all year-over-year part the bankrupt, in the a Is of you was about just different given was guide that don't higher I'm NOI it to trying to provisioning Simon, just go you buckets be in growth. 'XX, kind of part that also to the just driving wanted provisioning 'XX levels lot and trying the of also provisions to back lease down. modifications same question the of there tougher understand around have talked reason that, retailers something what see the NOI slowdown to 'XX. in currently decline of same-store store comps that? going you just

Simon Leopold

to given in portfolio. occur need of and didn't number it. put you X% X% knew appropriately we fact we we stuff the include before, bankruptcy and I were your really the with are therefore, you could and that -- that the in XX We a that ultimately we think other trying talked be things for is not that know the of don't like said, as could number here similar of materialize, We And thought that expectation X% $X.X we thing XXXX we that it's lease in the Well, only size, conservative yet. about stuff know started to for company to to well to all stores XXXX about got but think have is don't that if cover about, in market, in that that things about makes movement north $X.X that built of important Tayo, Really remember we've we X%. NOI. we but you of only an the million you in a And million year. comp our cancel

to direction. lot So it doesn't in that a take move either number

to already the that at we think things about, how every We pretty we're said. talking where whole an for for much really it's decide way. we detail our need do. take be we've space. then we that me them It's at look about hard going So provisioning and But to there granular look more every to lot other look a extraordinarily are portfolio. outcomes give you it that tenant. the we We at We look dimensionalize you important at

Tayo Okusanya

include from does very just Juan, accretion anything any That again, confirm, in nor the one does current proceeds one the transaction context from helpful. was last BNI San guidance, regards include then to correct? to it not And Asia

Robert Taubman

it that's expectation does the any in the include million interruption not include insurance Blackstone insurance. But the doesn't interruption NOI FFO. accretion from does business business It an FFO, from include not of transaction. an It $X the the that's

Operator

of line Your the McElroy next -- question Citi Christy comes Citi. of from

Your line open. is

Michael Bilerman

consistent pro Hey, I'm start on its Simon, if Michael going to wrong, the again. NOI pro guidance the rata, page a dealing me Bilerman next Just rata with NOI? same a NOI going store on with the you're and from showing quarter starting so same and six, correct you'll to to about that's giving number basis up rata all doing switch been are you pro the store start X%

Simon Leopold

We XXX%. continue are going a to at give growth -- we're going NOI to comp-center to

NOI We quarter on starting quarterly our are actual next you basis. also a give going to

NOI of pro actual quarterly share basis. on rata a Our

Michael Bilerman

say would guidance care and the mean, us it So, ties about what you're own we're it's us right. XXX%, pro managing they ultimately but that shareholders If we don't think basis I should it. own to and not both, to XX% of that going here's I portfolio give NOI they own mean, to and our you total on rata total, that they the doing give a only

So, wouldn't a the give pro why what basis to on you want? rata guidance you

Simon Leopold

NOI That's that? NOI, that's to in our I mean, I Ryan, our FFO. you how The is would that add share answer want to question, of

Ryan Hurren

for of deal, particularly comp-center more NAV acknowledging -- that share for growth reasons, performing. consider XXX% has the of look slightly that Sure, joint guidance I another say, quarter, different, at NOI would one ventures, times, calculation of had it that, acknowledging historically not it, but they're and plan purposes plan historically we'll a of how with also this for assets to the do XXX% not to we because can share our represents we but with this for be our and now but it measure provide at we'll those to NOI, that we next have give NOI I NOI guided it our time, Blackstone reasons, industry consider. recognize

Michael Bilerman

the Yeah, numbers -- have And to of in I well NOI. have the are doesn't matter strongly substantially they're your numbers you doesn't the in contribute What's store not total do is same a care what ventures we helpful performing? but on performing mean growth an providing if is I right. that that's about what own? lot joint better, what a And portfolio but don't whole, doing, of that Right. it it's basis. is, doing. All to share would your NOI how it advocate So the NOI be is I it

the and lead sales Asia asset about gets I'm in joint of you about. you market in asked, right wondering or owned some demand of would terms I that has in which the to assets than whether assets owned came US bank is was, saw an your another you wholly take venture stake question today in at question the the to that opportunity in and look same waiting. Asia in about or the to second is The rather that what analyst some if you higher, seek think and approach response see stakes assets the why investment that, wouldn't

be, where they your profile probably trading think big shares. still you than you discount Bobby, are know your think leverage like it I to a is I higher at NAV. to

demand US fund brokers money, the to make shareholders move back assets, buy banks, be with and to sell take US not and your more and engage why engage So to the development that for the Company. the distribute of assets to that high-quality start stock, the move assets make aggressive and it the the some delever

Robert Taubman

It always -- it doesn't Michael. John said, out -- work always you way the

Michael Bilerman

called John get always get, sometimes. I know You I

Robert Taubman

the is history? Where

Michael Bilerman

There is.

Robert Taubman

done out assets, their way, all the are are important buy is. as base what time, you can And always it's all it and our assets, in These work the we -- doesn't critically have can that to make stock. Michael. We've new build capital. that capital. you to you over It obviously we could decisions the invest with things back These do years recycled

frankly certainly but done the in, anyone more right And in else than think effectively. I mall it the in space. we've space, very

said So equity. not by on we've any before, basis, a basis, we a this have issued net net

is other share the tax absolutely is asset capital move the price. there a you priced, and years. in time issues had related But of all sort process. these over our of part when bag of you idea grown consider to to the have as we the back sort often But it shares can't and breakage and that stock that will is them, sell something believe issues kinds we not is are have way deal we with, that idea of ignore but pressured, you new of there an tools the under over in all buying in are You also

Michael Bilerman

the be clearly all, think want that the at the did Company all I to And you late assets And the done, you've this transaction. you think 'XXs. work I transaction, today, to back don't Starwood them, performing undermined way own go transaction, all about the where back if mean in to still the GM would those

trying more that comment to will doing there delever So is make Asia either capital I about take to in and did I a shareholders. what demand return more or have quality capital for high of was market power, just get assets to exactly all we that staying retail that. to using

a take So as don't to trying to want positive. I'm you a I it as negative. say

Robert Taubman

comments, your Michael. appreciate We

Michael Bilerman

should not earnings line you Yes, to why that have that on that aware the of be last know that here stuff going why just personally. put future be in was The done on, was know didn't that's there costs thing, that release that guidance all or a on, other I related incurred line. shareholder I thought activism. I in, we stuff any guidance is don't there the in does include may

Robert Taubman

be that XXXX. that the been awards future. amortization a some will that in longer of of for now, be be no, of incur large It's the will years to we've that are It adjustment what some while same in incurred into is may I costs them that It's Past while we've everybody been amount kind the don't not small should life may there there, terms in way. sort a retention along in it. half the There we that we've putting Really, we've as that for into been for two very some for have our a guidance not anything we really There fair a go that, and kind forward. now. our comment shouldn't saying any a putting now. on we just in we've XXXX. read employees guidance, think thing, we number. go consistently Well, in of been of some include And read what line that knows it or likelihood as

Michael Bilerman

Right. sure, sure because I make wasn't there. I wanted wasn't why, And why that's to it

to new concerned So that. we I'm about. you glad that it's something be not clarified But need

Operator

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

Your line is open.

Samir Khanal

Simon. Hi,

in but -- Sorry guide the the if in provide lower reason interest for the last for versus was call. what this, I the you expense missed 'XX what

Simon Leopold

would course told the year. the that rates, average in an look rate it's of where rate to LIBOR everybody were very we now outlook the very we We have we that, that think simply It's back on different a we thought over unlikely X% than of October, where is materialize.

will so And we be think lower. rates

in we've incorporated way. conservative a Still, we into So, guidance. think our now that

day. really guidance we've but us, rate the are, comfortable we of for the given is we very at like it end So feel it's we that, feel

Samir Khanal

then 'XX rate And helpful. guys was the what on it on did transaction, on the That's basis, on color a Okay. numbers? any maybe cap you provide forward

Simon Leopold

didn't. We

we or don't there As performance anybody, generally assets as of specifically on assets you know, as as even well subset. guys on

we you of So a we in we able -- we the which performance We're be will in on order 'XX, those guidance, thought assets do. for a were to rate achieve. not was the giving to make what happy the three comment cap our that, on is something rate, guidance that cap very

Operator

We have call no will further in the questions turn queue. presenters. to back I over the

Robert Taubman

Conference announcement comments or you, forward you We're and delighted down with to hearing We look Citibank forward the you know, at whatever you we seeing operator. obviously thank to, have today. our Well, look questions soon.

you, So, bye. Bye, everybody. thank

Operator

conference This concludes today's call.

You may disconnect. now

Taubman Centers (TCO) 14 Feb 192018 Q4 Earnings call transcript