MAC - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Macerich Company Fourth Quarter 2020 Earnings Conference. Call. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Jean Wood, Vice President of Investor Relations. Please go ahead.

Jean Wood

us fourth joining call. XXXX for you on quarter our earnings Thank

U.S. impact meaning harbor the may including we release risks Reform of measures supplemental be that condition the regarding call, and included of the set Act and release deemed Investors the are novel the X-K of statements tenants. results coronavirus with be forth COVID-XX of section within earnings During measures plans this the at filed results statements non-GAAP economies of on the financial will XXXX, course Securities website the the and the of to to Private the which making including Company's due Form in macerich.com. future GAAP certain forward-looking of or of and are Litigation in most safe its materially and projections, press SEC, our uncertainties filings, in of SEC a regional adverse Reconciliations Actual today's directly expectations. and operations differ Company global variety and of may posted the on financial comparable the the

call are and to Senior of Kingsmore, Officer; Chief O'Hern, Executive Vice over Tom. with that, Doug Senior And Leasing. to President today Executive the Executive like us Chief Joining turn and Tom Officer; President Financial Scott Healey, Vice would I

Tom O'Hern

we daily the the today, good down significantly of the dropping, the positivity by our through stormed payment. we today much many the was but compared Rent rent third May the adopted COVID the you, year, and April measures hospitalizations quit no closures. and all proud dark to of an have Thank as week. us infection we so two of of is were crisis, it. things team, year opened are for quarter throughout through but XX%, accelerating. vaccine, as closed at days, to The significantly in quarter. a tough great our in of to distribution our example, at their centers We week. battled It mid-March, by U.S. October of of all in Currently XX% that collections, with quickly a herculean has population ways our improving There effort by us. was got through continue all fourth the these through COVID And Jean. I'm And way. liquidity, most during The Macerich and of distribution the lot crisis. in month it further times. ago. one and by extraordinarily had thank XX% and year a We down tenants XXXX for on navigate U.S. grew joining our now a cases the of as those third efforts. significant We financial centers vaccines for collections least in very and conserve challenging are Once to centers rising had of rate opened XXXX made were XX% by with you mid-summer are all early markets. and is dose the second were persevered we the during days not quarter. of We done was and

to Now the level even was than much, some much that but ago, mall. including three restaurant dining it it and better COVID is going battle normalcies months returning, over, the of is

returned. have shoppers Our

things, otherwise is gone into lifted likely XX%, that will occupancy on the and we're level had into dining next and our of our among approaching The years. any over since XXXX. sales. impact fact, the bankruptcy pre-COVID sales accelerated Crisis. our Great is in of are capacity indoor help accelerating would at cases. several instead, result In bankruptcies is in have COVID midst COVID, which surge traffic the even being December retailers dozens Financial But XX% that the of other levels lowest of restrictions the of were a Gradually, and both

However, within two years back occupancy. post-GFC, full we were to

expect We post-COVID. recovery similar a

The in bankruptcies worked JCPenney year And happy have future. of have announcements most our both from XX able report signature be in make JCPenney. for reorganizations, we Plaza, We through that fortunately, very vast to not Green the leases locations, both those and Acres two of been closed, locations majority was the New the on of near I'm out should have to XXXX. Of of and bankruptcy the locations liquidations. only biggest Kings York. those

and watching gladly very recovery you we XXXX about the XXXX the business. goodbye to our optimistic rearview are of mirror, in As say and

the second gains impact improved year expect from a also XXXX are quarter. of up and on said, collections rate terms in in is see significantly Although to be as us now well vacancy being to both it January year, will in than above half 'XX, environment. almost as a is of in have normal the 'XX some respect. have tenant the in rent we much will higher XX% going Rent gradually That a of trending above XX%. every XX% transitional COVID the be fourth workout agreements of than relief better occupancy improving rates. September leasing in Most collection

to top up fact, XXXX. on were also Leasing of are the of variety Many model significantly come our fourth COVID with of of We the the cream. Volumes, including, this will in XXX XX% ice quarter. XX% activity that quarter XXXX. pre-COVID of of our in in attractions have open tenants workouts Sears open over of former picked tenants. replacement locations agreement the levels in even a fourth museum and have planning year, dated to We

are expirations with in leased intent lease majority the the balance of the XXXX today, of Our XX% letter stage.

And credit, been to successfully and pre-COVID extended, which traffic and are in sales, maturities up at Retailer Looking traffic. loan sales continue matures traffic levels. quarter. XX% with underway well on the have third of at balance pre-COVID our average, of most sheet, XXXX XX% to pick line of the negotiations our of renew

improvements progress expect years containment The as been American and recognized it Real And be six sales ranking traffic that have Global in cost That sustainability Sustainability when XXXX. makes final we in retail Scott. measures turn And the for in the over leader me, hit We continued as adopted a through into point XXXX. with Benchmark number one that, straight cost again, have the achieved I'll will honor. North Estate for sector. reductions and COVID we both we once and to

Scott Kingsmore

Tom. at the $X.XX, are year-to-date fourth is income quarter funds and operating follows: financial per down from Same-center net for fourth the quarter from and down operations for Thank results down as quarter Highlights for the the share. XXXX $X.XX it's of the XX%. XX% of you, quarter was was

and and what quarter abatements. versus of of I'm several were in and This specialty COVID-related with second of these Number we exacerbated quarter $XX and $XX granted unchanged rent in revenue, summer pro were relative third negotiations million million to the in temporary at in tenant rata properties revenue at decline the the fourth protracted we items. third on these of ancillary rent the and abatements impact given development are filed of types of X. $XX the this of fourth the Fourth were seasonal two, Cumulatively and follows: percentage revenue. revenue results leasing across New declines decline nature for from and resulted largely the see, closures and quarters million year, temporary what in relative One, million including revenue, California. quarter the as elevated These a generally those due Company's abatements COVID-related will large leasing York week the you experienced driven are and revenues quarter was abatements of are XXXX, permanent business of line delayed primarily February continuation by figures XXXX the $XX As what to share. to between of continuing parking was Changes were area income. quarter last in common XXXX properties. tenants in fourth COVID-XX the citing

of do general on $XX a to approximately expect. bad of top cash items, driven total, properties in $X XXXX, line into million, forward In these occupancy 'XX, tenants million. pursuant million Number Number decrease lease the income each transient more million looking conditions in $X about four, $X totaling primarily then as line decreases. three, improve line expense do basis of by was bad expenses our for all and However, revenue we is debt million. of we at reversals about that for these GAAP, assuming $XX of COVID-related form debt anticipate items growth revenue down were

$XX offsetting rental during in the quarter million in bad expected was from million our to $XX And XXXX for in is assets. disruption by was COVID-related $X the amendments fourth consolidated to undepreciated these fourth a write-downs million. million is included sale This debt of all This $XX of was or five, asset land driven rent sales line the a $X of elevated averaging on close and expense fourth straight-line lastly, million impairment the lease executed result applying increased loss or Number straight-line at quarter. item $XX million charge significantly undeveloped versus that to XXXX. currently rent expense the gain in an contract decrease a for As items, there XXXX. of was quarter. business, in bad on XXXX debt increase This under assistance

of of real So all million extra wrote-off Company's that debt for we some line back. number the ancillary to Again, following. are figures again, major two, in abatements basis. COVID items, and of retroactive share, addition, commonary and NOI are impacted to to to in of onetime and landlord revenues, $XX of of revenues. granted and these $XX other cases tenants and million in one, and Number those another million million XXXX, concessions. summarize highlight was of transient we to parking near-term are to -- food local in we for and impacts reversed rent rent, of that relative entrepreneurs to and cash or at secure the a these an restaurants accounted would $XX bad estate Number on business temporary percentage national me, had owners rent expense achieve selected tenants concessions XXXX. order then and excuse to three, uses favorable decline we bounce these Plus, $XX lease were expirations that And other expect the

share. we add you morning, earnings all just guidance, we per XXXX the it's FFO $XXX range those three when guidance $X.XX provided Company's in direct So of Company's that the decline X-K and details million of per XXXX NOI to more information the assumptions. among roughly of for pandemic-driven collectively, estimated Form share you do $X.XX supplemental categories. up financial This is to

While provide are certain our of government-mandated shutdowns range guidance within assumes to assumptions guidance properties. some further provided further our retail This like filing. I'd supplemental no details.

efforts in the this half XXXX. XXXX. providing of third starting Anticipated year in softer demand growth And federal up are government, growth of this COVID-XX and this expected we ramped We in same-center our in thinking in in and double-digit same-center last later vaccination impacts stimulus comparables continued expect the fiscal from But NOI fact, XXXX. from informed time, the of growth second not guidance NOI pent-up continued time, significant at do strong market of for given consumers the at anticipate half early 'XX. progress we the the quarter on

quarter, caused COVID, do by We quarter, year away transitional by to as cadence: XQ XXXX. COVID the estimate 'XX in XXXX first as during FFO the a include the including in XX% we widespread view from XX% rent We quarter the expect of last terms the the XXXX. in In XQ, adjustments pivot effects of will retroactive first balance XX% and in quarter. closures we disruption XX% from lingering that following relating in

which roughly we end from as While pandemic. we estimate the to heals future the we to assumptions have are information. which included first an future there's years, And the of Company's more financial coming of quarter. XXXX are, financial ensue our not contained appears tailwinds supplemental fuel optimistic the into the Form and Again, later may be at should guidance over part in occupancy been details Trough do guidance certainly the growth. to X-K opportunity however, the in XX%, to forward-looking and grow giving we believe country are operating year that occupancy certainly the years, about

on mortgage which Tysons for Fair, million Company a addressed Corner. Tysons In Now we ranging extension. to tower at in $XX This have Danbury on commons, for VITA. on Mall. loans, Acres on incremental similar as filings, sheet, last few mature remaining financed is terms mortgages fixed for extensions liquidity are up closing, and at years. the anticipate from Green the line November, previously a remaining extended included extension Allies some and The of loans the this four over do over incremental $XXX that this under Those detail including million mortgages our residential bearing million currently is interest Fashion funding is Crossing Acres Company, of within XX years. generated there $XX loan Green loan, balance working totaling three X.X% months, the unencumbered secured in capacity to to two-year XXXX, the the securing Niagara, item. recent mortgage At successfully we FlatIron We

credit. on renewal on to million. make continue of As of at $XXX hand mentioned was year-end in line we our Cash recent progress our filings, the

previously environment is Company as vast improved many agreements those XX%. direct thousands has of Tom to Tom are tell by you, collection I efforts, negotiate extensive now noted, are byproduct our we efforts collection extremely noted. efforts retailers. already This of can within proud of a the As over a the with

XXXX. rents to we further result, improvement XXXX delayed in $XX contractually a range that in the build to estimate approximate collections And both million. anticipate collections in the addition, we XXXX collections of million relate of into rent As deferred $XX in do and

This operating cash issuances not During and to assumption will operating $XXX and equity. after funded cash expenditures million include development as dividend. for capital to now recall, used generate capital this and does environment. common than operations, our construction balance And development, development to as is pipeline. which Westside, This $XXX from or surplus leasing With is on any excluding expenditures flow of XXXX, refinancings delever loan we over after to generated over potential expect as turn the expect recurring further of XXXX, dispositions, less leasing be a from flow One discuss the sheet that, it by in independently well million to we will Doug facility. fund I spend to

Doug Healey

of quarter, to rental again, retailers working collection Thanks, payments Scott. was our and fourth the In secure improve our with focus, rates. much

we've of the national totaling these paying a have last have out with deals, at Looking now pay. from is we result, continue But our we to considerably now our XXX received which top collections payments as importantly, rent XXX retailers, XXX, quarter. up top or commitments rent, improve. worked more And XX% total

In was this a XX, a portfolio down September Average from throughout last X.X%, As feet. leases This more indicated increased quarter quarter square of we points intend renewals Acres, of tenants X.X% intent leasing XXXX, year last letter XX% leases the amount closed on XXXX. important of the we and compared XX% of XX% negative to Madison fourth down to disregarding basis well stage, for Fair, package occupancy another time XXX of Pacific date, closures or close. X.X% XXX,XXX Pacific as who XXXX. we of XX, represents Cerritos, with leases XXX XXXX. Los XX, was today, our and to that's XXXX. have signed third $XX.XX as they the due X.Xx and This and Square, to Louis at San to XX% bankruptcies represents XXXX, compared XXXX. five Temporary Trailing and for commitments $XX.XX Scottsdale collection this the in that at December to quarter, end four third Bar primarily XXXX or from spreads expiring X.X% of a last at fourth rates December square the and quarter XX.X%, lease fourth with abandonments View. include This Catalana third continue rent down Encantada unprecedented store in to when also balance footage, square X.X% footage at of at a point. and in is down as increase Charlie's the a X.X% Crossing, Tan, from and Occupancy XX% basis expirations decrease XXXX. quarter from were quarter the to at that's square Reed FlatIron, in a compared in of And be La fourth XX Fresno, store in focal from an Eastland, the the quarter that Vintage occurred signed have the the footage La XX-month and of the XX% from and X.X%, as have Green points $XX.XX quarter year. represents that's early of at and Encantada Noteworthy down Swarovski Danbury and Vuitton at signed View ago. the FlatIron was with Charming Sephora quarter Fashion

Madison, Mall, and Rolex Books at at we the Round Kierland Turning to the feet, hopefully One Cerritos at Plaza, Scottsdale, three Amazon we Sears' Deptford locations. a include bricks-and-mortar Rush at La quarter, Purple with rent another digitally Cerritos. opened annual Center stores Forestar opened Los and we Australia along quarter in Henckels Quay tenants of category, Chicago. Mall, native In In continue opened and Queens Vintage new Goods The Commons stores. XXth Corner. openings Los at Encantada, at at Amazon Kings Bulgari DICK's million. Free in Outlets of in XX at Tysons the emerging total in fourth to brands Street, in former the in People TecoVas at Sporting J.A. both large-format Deptford and fourth In and the fourth at with Cerritos, over Notable openings XXX,XXX international quarter. at and $XX resulting Fashion Los Lovisa opened square We arena,

pipeline. and Now to move XXXX let's our

and Dior strong, market leases Dior square be Dior will first feet, look to one XXXX, XXX,XXX We matter. remains list in state destination forward is the scheduled and opening in the to marketing to of the luxury in Later and year, grow. only this all have Louis already true level, Square two pipeline XX,XXX vibrant Fashion Our Fashion foot store for joining totaling only we signed flagship this open Scottsdale that and Square, square amazing Madden. exciting. all the And Arizona. at Further Vuitton, and approximately continues Scottsdale an

and a South Village, Corte at Plains at open to XXth Fashion & Buster's Madison Julio's in Uncle Reed look Exelate under another in Tan Our prime year. lease this include Empire Tyra of at Verity impactful San Boulevard Madera, Philadelphia forward San Fashion XXX,XXX store Broadway and is Plaza. Tan, Coopers Inland square District And Hawk we and construction Marine have at Layer to Shake or XXXX, Bernardino feet and at to at we September at when name yet Bourbon year negotiation, at this at in Vintage Lucid Shops, San Faire, Tysons anticipated market Other Place, square Corner foot and Kids Fair, Modelland well And Village and Fresno at grows Shack daily. XX,XXX deals Motors Winery highly open at Fashion will its Street, at just few. Dave openings Santa Scottsdale that's this of to County still offices Banks' Bones look Center, number and Square, Monica

open space? and of we during What the closures. to asked Dick's so the I'm how of use the it's this struggling strategy to were are significant this store pandemic customer there many Blue and need those because Peloton omni-channel stronger or increase acquisition. is or Perhaps strong the actually Madewell, and pre-pandemic. who Nile, bankruptcies to country? great to often going about best space pandemic is their those talked to who not perhaps about online Target, House, are Aritzia, already out others Free few. Think Lululemon, remember has Goods, awareness retailers came retailers only buys business they actually the Athleta, fill great and they retailers and People, centers time into and traditional Levi's, accelerated Lastly, with looking left strong offered great unprecedented demise in Sporting What's name such to retailers some this Our a Who's I'm new strong some talking on because had had about Navy, as value Sephora, Old Aerie, product the capitalize available just on in end. of other are

experiential retailers like as as with American VinFast, brands such For all Lou and DICK's in off-line by such Yoga, concept, Fusz, electric Fitch and and or grew these and Abercrombie brand Ferdi, and Eagle. by new extensions Hicks, many, many car Psycho new Polestar more. or Gilly Turnau; sporting manufacturers, and Bunny discussions L deep or Goods we're emerging

continue everyone. refer centers over as something to I'll for because our to we However, to And than be why wants. And and now to we modern-day shopper service retail. just that's bringing know and And to focus not properties more the want our up residential, town they're storage, and for education, shoppers our turn call grocery, like that's Uses traditional open to have hospitality, just what because that's why alternative retail. will campuses continue Q&A. operator it our fitness, medical, on transformational we becoming. office, they wellness, to uses be They're even what the that's and

Operator

Instructions] ahead. Please from Khanal Samir We Thank go now first [Operator will you. question from the take Evercore.

Samir Khanal

for on So Scott, the thank when occupancy trough. you will color

guess, 'XX I perspective from you're the think in But a ramp-up into we the doing? all should maybe about or mentioned think how with occupancy XX%. you I pickup the modeling leasing

Scott Kingsmore

not for But again, a we're think return just the leasing XXXX. demand. sense of well, I Samir, giving good into pretty Doug provided guidance

have We executed XXX,XXX square that 'XX. open already almost in feet to due is

say, new think well that, 'XX. feet And documentation, pretty legacy quality the on emerging these square are we've high not deals taking both the shadow in spill going is our We decline are has been some pipeline, been pretty market I'll we've high-quality clear quite I as occupancy. the time quality and in brands And well interested I to as this That's think well space in past, high negotiation. have in on as as 'XX deals in some in XXX,XXX got over given markets. and that very for that space into

I we'll decent some see think So pickup.

Tom O'Hern

Samir, get we very Crisis. occupancy low XXXX it it into that going frame have time less similar before you last apparel, good Samir, seems of take was back recovered we level years quarters end the reference, to the had but of it more that it's a fully after XX%, of a a and couple Financial And was There's to occupancy take about categories, going demand. Great a this and two the new an the will level. space XX% retail give to to absorbed. XXXX years We've And got of for experiential, lot sure. few bounce

Samir Khanal

it. COVID. follow-up. $XXX Scott, that million of sort built sheet. a the carry strength of that's look And your debt And the balance about when on I look, even was guiding, expense guess But always there you a Got it's at receivables been only $XX about before And over million. as understand on last the And balance there's bad normal up there's I receivables, I sheet quarters. -- few you're

make Just seeing retail missing to the just anything of I'm the wondering, confidence that, to trying sure year? health the number you that is in terms I'm you amount appropriate what of not for here? So give are

Scott Kingsmore

If opening. last months, further over restrictions. not any we anything, view we Well, the a centers do and two into economies have Sure. seen are have recovering our the

closures with seen and mandated use, of occupancy restrictions, restaurants. mandated we've fact, the loosening including like a In by

and do to which up going we ultimately healthier see traffic a So, is pick up certainly sales. pick environment,

-- carrying within guidance, we specify going debt, And that reserves the we're uncertainty. say than fair carry. but of number, certainly So to just typically I'm is would more our for but bad also not not we're amount I'll our only I'll a carrying what

what without in instance, we into a XXXX COVID. For the view carried

we're addition we expense be some So, to as today. should provisions carrying in given environment the debt bad

Operator

ahead. now Compass from go Van Instructions] [Operator take at Point. the Please next Floris Dijkum We'll question

Floris Van Dijkum

are of saw its question. I my 'XX bit in Great. Samir the and can Thank NOI? you're I given in you some NOI I was -- or for there talking expectations 'XX, expect give How Is might Scott Tom, a about headwinds in us, more much terms bounce a should that taking back growing. color any explicit know for about? what in your little you people of of terms talking of

Tom O'Hern

halves really the fairly different. of significantly year Floris, look that yes, two it's be going to

we're abatements, 'XX, still et of quarter and of of and that impact some having compares healthy pretty concessions XXXX. the quarter First COVID cetera, a first with

So, of the half to in half think the to center. first of double-digit year the we will strong, expect be same-center Scott said, But terms second we down of close putting very same as and be the probably up year, growth. be we'll

Floris Van Dijkum

the X% everything at of the you year? rather on for of guess at? overall the sort what In about Or growth are to talking terms I some -- NOI same-center it range same-center, than looking is X% in ways. looking But so we are

Scott Kingsmore

think the thing to it's specificity year right a at that year. Yes, progresses, Floris, in but time getting not to I we're we be as in the position the to entire for do that don't hope -- point certainly do. this we

amount in Tom quarter volatility have going first of fair to the is mentioned, a As it.

weeks, difficult first quarter COVID the the to As we quarter of is comp lap over going be coming 'XX. to first a the

guidance the once year. same-center to that, of I in NOI get of balance hopefully position for provide guidance we should more think a concrete be or the we clear

Floris Van Dijkum

additional Obviously, talked refinancing also if -- you should you the line. that little of And on maybe already how that's about offline well. you some you going cost require talk your potentially as those people as Great. pledging you impact then that's whether flexibility And have? you much to well. a the what we your have in how could in guidance But to if -- mentioned going look? expect of about much a presumably, bit And how discussions that's And assets through unencumbered that us walk or discussions? maybe could do can

fact, a on paying the for higher second half amount? be interest cost In might that you

Tom O'Hern

that we've lenders with the done last we're years. deep lending XX Floris, are negotiations business These in with for our group.

in purposes to making of them. negotiations and premature specifics them, So, that. the to progress we're you with and with great at those share cross But we're a it's with do

X-K unsecured, you a or out line put filing currently, X.X think that securing the we from I saw have but few assets. unencumbered do up quite we may a weeks end ago it's we previously

So give understand that. in But more the can that because negotiations. forward. than that's I'm not other to sure going midst that, we're we're possibility than going color of a any you

Operator

from question We Mike will the now next go take from Please Mueller ahead. JP Morgan.

Mike Mueller

here. ones quick Two

what on sense you second question a some your What's X%? of spreads year's 'XX more rate? rent they straight-line And give leasing can go-forward last to on is how compare activity the income. down normalized us rental and First, are run

Tom O'Hern

Doug, you that? part take to the do first of want

Doug Healey

Sure, term, quarter off think But and quarter, be have occupancy, the talked in Tom. prepared the there short I we that. on that start to talked the I believe will supply we regard paramount. my term, the we've on some about is there's to I spreads demand continue compression. that take remarks. the increase. and in pressure we'll With suggest comes the occupancy short this once don't And table about be for Last the been I sure. spreads lease as executions, Yes, to going to commuted. would back, focus spreads see

Scott Kingsmore

-- deal. we deal, actually excuse Mike, our first the tenants. execute a signed then to until part the When question, inverse concession that concessions rental straight-line on we straight-line the that of agreements the to impact recognize we arrangement actually consistent those me, rent. with cannot on in signed of elevated We going the with year, an it's or And has that until rental we of book continue rent be

normal. rent to elevated the We're, same-center of providing see continue given a the not return and the year, of see similar to the the to going guidance guidance. about we'll it part just we're first flow straight-line first elevated But not part see So we'll straight-line what deals. the providing then again, for those We're year. uncertainties to of be in

'XX. So it in run would million I elevated range, be a which we'll to for us, normal but million 'XX, $XX would in the be will be in rate $XX relatively say

Operator

from question KeyBanc go at next the Please Markets. Thomas take Todd Capital ahead. now We'll

Ravi Vaidya

The couple This the being equity volatile Todd With to we for should think on to levels? your filed, the regards has been at current the bit is program about Ravi a issue how over stock weeks. Thomas. stock Vaidya recently of ATM desire last line

Tom O'Hern

file shelf that use we putting how did would it. out much. a because doesn't in Company use stock going we XX-Qs, the ATM. report Should position use and we and it, it ATM, have Well, they're decision It's if it just we be And we're a just again, just like, report But and it's quarterly we'll to mean there a we to available. the tool on necessarily quarterly make. a will to and see yes, price the that for periodic that consider we'll we an in Board our that's if

Ravi Vaidya

for And that, one just more a what's the selling you we interest haven't a of think about there market I individual trades of your assets lot in capital And Okay. dispositions Is one as raise for seen like delever? here. of assets How to yet? to larger say, do capital? source

Tom O'Hern

said, always That a haven't of There been there's and amount fair a there's a trades. of of capital -- there, interest. right. there's amount being You're out fair lot

little can't that transact a be on have to us bit I certainly the in see of this too in our So possibility checks We a it's guidance, and any year. this bank, but surprised don't count year. wouldn't we it

Operator

ahead. now the from question Burrows We'll Please take from Caitlin Goldman next Sachs. go

Caitlin Burrows

previous following some of up Just on questions. the

for are that negotiations you you lower credit month So could and facility. securities. like the required mentioned, commitment a include the it in recasting disclosed lending And earlier ongoing

I line today? credit So to given where fund borrowings reduce of to how recast to you plan pay the that need your the down do extent it, is that to you guess

Scott Kingsmore

got $XXX the Caitlin, we've million sheet. on of Well, cash balance about

So I of bit don't a think plenty reducing for that. all. at issue that to line be going got is We've liquidity an

Caitlin Burrows

growth in you Okay. would back in then urgency I just reducing I the that? touched outlook about thinking -- question, on And kind what thinking guess, leverage how is and EBITDA is today And maybe in previous interest for is XXXX. doing just of XXXX? where leverage your think and this but the you where about go

Tom O'Hern

EBITDA. at don't what's I look can today, with think you happened really given debt-to-EBITDA Well,

to debt cash most significant forward going to you after bit of we'd excess generate of got to look that our expectation where grow And think amount do say, leverage. I dividend. think what's is And use a to service little we're a reduce and it And going go? that's you've to to? the probably going my to cash

Operator

We'll Please Sandler. now ahead. take at Piper the next question from Alexander Goldfarb go

Alexander Goldfarb

questions. around just Caitlin's some So bringing

So things me. for two

whereby anything guys restrictions owners any go to there that those maybe can before flow extensions refinancings? by above cash are you First any cash mortgages CapEx there and to debt of off, any excess those on need are down do restrictions, lenders, saying cash are Are So extending mortgages the the renegotiating. or it pay the the else? you mortgage that

Tom O'Hern

would from In and years to to but are no cases, closing, be little one it'd very for there generally some to atypical remargin change we've atypical situations. three execute extensions, very with have to been pretty Alex, at minor It restrictions, with able rates to us. no pretty those these be

Alexander Goldfarb

is, your it on And like pretty you're you guarded then sounds it issuing used question the sounds second but it, and ATM, -- Okay. from equity. the haven't you're on comments

source So that it and like you the two year's if that, and taxable for quarters the a we seems same third is use true. dividend, last dividend if case, quarter cash of guys, again, requirements, the the big fourth of last flow assuming that's -- holds the

guys would is, to term, you additional and source the you math wouldn't the planning an help it right refinance like that And save in $XX a not dividend also the $XX equity of the bare minimum good whatever that's seem near source million, the would it then of be So size? you're the would to maturities? maybe million, paring help again, Company guys capital if to as sort

Tom O'Hern

Yes, Alex, our to this decision. the similar. a I'm we a side. not year. and sure requirement basically it on It's you good point, And the tax be clear got a Board tax would cut expectation view It's

the the in to consider here expect year XXXX a probably half per in this giving the dividend we'll we're year. from change. don't the big as But se. we And on minimum guidance of not And well. So a second something cut that's tax standpoint, we

Alexander Goldfarb

that what Tom, had it other tax I I the were declaration of on. the $X.XX you I guys and off $X.XX was was was was That’s mean, just taxable not? going basing

Tom O'Hern

got look just at you've full to one but at year Yes, can you look the quarter.

Alexander Goldfarb

Right, I was looking those and at each of was at year, the looking I full columns.

you. Listen, cool. thank Okay,

Tom O'Hern

So, a that? we'll How offline. tax have about session

Operator

at ahead. We'll go Please now Michael next Bilerman question take from the Citi.

Michael Bilerman

value current underappreciated an or NOI? either just Tom -- what pool, unencumbered asset the Just borrowing of could for us maybe that what by or unencumbered Scott, a annualized base book get is to sense be? borrowing

Tom O'Hern

unencumbered. assets property property assets It's there relates it show schedule. sizes, are I there's various unencumbered a other there's significant as we assets, our not or it in that have about there disclose I that Michael, down of list, are number may And but you specifically, number. the here probably but got against XX schedule to think assets buildings debt anyway, assets. the NOI and are and can match XX we've about that fairly wouldn't that on and at the that the least and up malls, some look And total. on a single don't big one-off up so

Michael Bilerman

mean, $X understand size I'm just assets? some trying Yes, for for try whether under, just way borrowing some a billion, mortgage guiding assets just I'm goalpost, terms to value get to it's in of to just basis, to of $X type a sense quality, a all those I rough billion, us of. get and billion trying $X.X and better

Tom O'Hern

existing Well, credit to billion. enough you at I'll say is of mortgage hard it's pool significant value. $X.X that, unencumbered tell to support our line that

Michael Bilerman

Okay. And ATM. to relate just the then

have been a at having now what in not Because having out, put the Just your place would if that ATM walk your from doubled, through in sure. probably had you been decision a putting toolkit point held it before you that when talk that that back an just something decision I'm toolkit? had in you assume little bit. you you had and can pulled not I of had It's But place? would that tool your before about Wednesday, guess, it have a previously. stock I may in may have

Tom O'Hern

it had we've before, Well, Michael.

when the the as result, And share time. ATM quick time For a price fairly at was. we renew it point in process. expired, didn't that like last a It's didn't where our

wasn't... think perhaps in I You five we get the can put don't did, but did and within GameStop, days. place spike we anticipated you Certainly, not, it maybe to or four if one related

Michael Bilerman

participate unfortunately. I that, in did not

Tom O'Hern

any of mind, XX% do ATM. you in given keep volume the about And Okay. on only your day, in can

us said, good thinking shelf. So tool. was a back well it two-day about it and there, on as might got and it's it a spike the We it hey, about have

why that's we so And renewed it.

Operator

take next the Greg from question Scotiabank. McGinniss now go We'll ahead. from Please

Greg McGinniss

they I a much -- rate Scott, model were clarity appreciate hoping QX create on QX. QX I Well, actually to like to and billable us than But was go-forward the we run to try abatements how as tell off? higher rent could why you just applied

Scott Kingsmore

primarily a able period retailers the the pertains say retroactive to but New that York trade abatement California, second for longer less really would I periods, those X% to quarter. weren't extended very, months, relates because cases, to for probably in, to properties, little fourth This quarter. X%. the of our very for than In again, some six

Greg McGinniss

then for Okay, question. and the second

for leasing feet of On appreciate XXX,XXX potential I the the the here volumes, -- at plus point. square this

little to a benefit understand from get help the us you leases. more financial hoping context Just those

how been So kind GLA? centers? that Macerich-owned could unconsolidated then potentially the provide you total of reconsolidated has of versus demand And much

Scott Kingsmore

We between a breakdown don't have consolidated that of unconsolidated. and

or our -- roughly you shop $XX think it's know is. basis, I million $XX about what so. a GLA million, small It's on

XXX,XXX XXX of occupancy. to just basis couple XXX,XXX all XXX feet if that of to feet it's call then XXXX. in we to square $XXX,XXX, rest of of pop shadow, a 'XX. quoted that were square it to numbers. things its was, a He would points it, Doug under So later come online quoted this online new come into fruition, the we'll expect and online And deals over year that coming at little it, be

Operator

[Operator next Instructions] We'll Point. Floris Dijkum, go now question Please from Compass Van ahead. the take

Floris Van Dijkum

trying is place, ATM investors, in I know if in will think a the it maybe fears, discussion used And from market that be you an far. stepped I that you've at a have consensus think price. you don't share? you you've at know A that talk what Ontario the so tapping where price, the level one so at how believe you And current I that's view? guess, any, it I follow-up will to what question, far when I current give out but of the of what off NAV doesn't about Certainly, is your where And over can think I get do is? share I appear you it's believe in the like had, -- -- sense with And use was -- $XX of some ATM? if and they words, that the share your to you also range is? not other teachers, at your, done. And Or maybe

Tom O'Hern

along the to of report all best we're any. it on look, our that Floris, If So on ATM way. not like activity, going we'll but ATMs their the interest if do, the comment on use not just at to in comment other the ATM, the companies it's the we use it end quarter,

planning And an do that. we not on NAV. doing we're not So publish

that's available either. not So

So, another toolkit, and in deal the to if will periodically decide when it's we and use just it.

Floris Van Dijkum

consider to that you value Company. that current trying that an share that? of price, with presumably, have NAV capped I of I -- that range what share thing with NAV Or But guess can will I'm prices if think, Right. the your Board, you is is. of you your fear you the low share presumably dilute where or the at the Maybe get idea such must is, the because you you is doing is something have the what -- investors

that in any price do of to it place. if gets willing to it presumably, to you're you $XX? didn't Is at you or happened have not there the might market the but certain the it past that, or be that. that share similar a you much Obviously, Unfortunately, level, in until or the we you you're that investors in squeeze but that will the be levels, doing it appropriate to level. more pacify proven indications give at to least more to to use a wait you You've $XX, what sort GameStop. consider the more will current now have reticent ATM saw recovers presumably, But issue willing at use above at going can $XX $XX to you happens

Tom O'Hern

the it's have to appropriate. and as going I level. cetera. Floris, had as there, we're what if it to liquidity, time, going and now, Again, as and said, tip price facts to it our market et hand use not for circumstances on No, when we're depends It we at to years an equity conditions, use we and it's available the when shelf

haven't as We're it We that. used as that simple as for a well, while. ATM just shelf supplementing an with

Floris Van Dijkum

had can shed to you've any there them with conversations Teachers any out? stepping on is prior And Ontario you light

Tom O'Hern

are shareholders with can confidential, our as I'm conversations sure our Floris, imagine. you

Operator

We'll ahead. at the now Citi. next from Bilerman go Please Michael take question

Michael Bilerman

retailers back i.e., expanding up, are thinking what back levels? as return years, come your And in time Just that on a XX% to really you to not to have of going expectations potential? basis of to in points on investors occupancy of over those XX% recovery were terms level think you just about going to it NOI, and total to as How the how but peak was cadence those to about the money stream of NOI it few tenants we to the was spend will should the for towards XXX we're And NOI going of hit. compares been, moved we've really of that CapEx? it's back before. much of to that go occupancy points, have Just XXX regaining some it would reduce to terms given that basis of occupancy categories return it the really XX% in you next to through the thinking, helpful much because in? to about get capital in all and it would had as where to XXX How and how cost that take Doug, prior we of occupancy, think before COVID the follow-up, it build the

Tom O'Hern

then Michael, color, you some in Scott, well. I'll as jump Doug, can and give

at So occupancy, and we today. tenant That's tenant to we're of talking up tenant allowance said, can coming about occupancy, where year. about dropped And that million to no want whether talking allowance lower choose I square with pay fairly so, cadence out for in of deal. a crisis. full for terms a of mean, Scott get or we the back or stingy from allowance We Doug gave X.X all. we as the to to are CapEx, this a the or kind allowances roughly were you're financial roughly go tenant we X% pick feet XX% got big

have and we with before. of give will been we be this creditworthiness imagine to. we deals I would the who the to very through So sensitive we tenants And that do tenant allowances

how at capital So it's involved much really hard we'll with to say this that. point be

example, give medical converted an facility. to Just Box to mean we Sears a I One

total a we're landlord think think getting in work was $X roughly only I $XXX,XXX. that million year And I rent.

done. taking but there dollars are $XX deals to a deals days. to critical out, going that So tenant very those deals allowance It's to more Other take we sort just like to some expensive. look who time these be at are get

Operator

sir. Tom you, back turn That like to Mr. conference questions-and-answer session. to O'Hern, concludes today's I'd the

Tom O'Hern

well, you test to Thank stay negative. you. all for you thank positive, Katherine, today. soon. Be us joining Hope see

Operator

participation. call. today's you concludes your Thank That for

disconnect. may now You

The Macerich Company (MAC) 11 Feb 212020 Q4 Earnings call transcript