- Earnings call transcript Q3 2022

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Operator

Good day and welcome to the The Macerich Company Third Quarter 2022 Earnings Call. This call is being recorded. And now at this time I'll turn the conference over to Samantha Greening. Please go ahead.

Samantha Greening

Thank you for joining us on our third quarter 2022 earnings call.

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

Senior call President leasing. Scott to Chief Executive Joining and Officer Healy, the are of Vice and President us turn over today Executive I'll Vice Doug Senior Scott. that Kingsmore, With Financial

Scott Kingsmore

this Tom Good Samantha. family. morning you, support, missing Tom his time, in a At Thank yesterday and afternoon. this immediate our prayers. we and Unfortunately, you thoughts family loved death send had was call, his good and as

to quarter majority our After third our with metrics another are of our XXXX, foot, positively. report first saw a trending robust had the very half strong per a sales solid average We portfolio for however, operating level in very flat of pleased also were strong we tenants quarter $XXX we quarter, XX,XXX third retailer demand, were ever. tenant the under feet sales highest

up XX% period to to XXXX. or with reflect continue up sales have XX% is in see level the traffic, at to that comparable we pre-COVID demand quarter XXXX. year-to-date nearly seen exceeding pre-COVID compared tenant a over same versus pandemic not continue The and at period pre same since about levels XXXX retailer X% the in of We traffic comparable sales but

was that was sequential improvement XXXX. improvement the occupancy quarterly highlights and XXX third at over from quarter XXXX, quarter the quarter point XX.X%, other include second quarter third basis of of of basis the Some end point XX a

We continue in for to levels. excess see strong volumes, year the are of which XXXX leasing

For quarter, NOI X.X% very a third in quarter to was saw the of feet. leases We quarter we for the executed of center XXXX, X.X growth of square the same million compared XXX third strong which prior represents October on which Thursday, at XX, And per per declared $X.XX FFO quarter. over increase a came in dividend. last XX.X% share. week, we share the quarterly $X.XX dividend, a

repositioning town and our centers. We regional continue redevelopment focus top quality to of on

approximate We Santa level in XX occupied to square are returning Arclight XX% an Bloomingdale's end high co-working project formerly of three million range fitness to XX%. Estimated space. with club between and underway the $XX use costs XXX,XXX entertainment at estimated foot east Monica an of yield theater destination million by end place

the We completed to costs uses. expect wing the luxury estimated million of XX% share this renovate $XX yield to to focused with and restaurant in XXXX. We at intend range at of Estimated Scottsdale redevelopment $XX company to Square be re-tenant, end between project retail million Fashion high Nordstrom XX%. and an

We expect completed redevelopment in also XXXX. to this be

but rich this I secured Northeast parcel Flatiron Phoenix, Crossing redevelop entitlements year. and office At to Broomfield, uses. uses the plan add Lord use to late Commons We projects entitlements retail or with Corner, flagship the to at Tysons multi-phased Phoenix which market. property expansion And possibly former and for continue to transformative Kierland and Arizona amenity Taylor in secure last multifamily Colorado, buildings we the in mixed for mixed expansion densification and in an

has of excited XXXX. lower of Danbury of Fair already box. completes to Mall, the the the opened in square to are repurposing Primark in the level the XXX,XXX target in and As Target open signing will another target addition well level we announce foot upper Sears yet

its carefully, Target extremely to and performance and is to reputation. As know, the picks all Fair chooses enormous so real real the locate the we estate an center's testament estate a and decision Danbury to

to will pleased elaborate shortly, Doug with leasing of As on the we strength be continue very environment. the

seen Beverage Leasing to such sports, expected, never as of medical, [indiscernible] and categories Food from as a depth the to that results given variety and of many very and and far Bankruptcies As frankly at demand. Lifetime We've co a in levels come and grocery, leasing including entertainment such at hotels, continue be breadth multifamily so continue Fitness health very and a others, the low. had before. leasing working wide we've robust others. and fitness continued XXXX. record sources interest

expect occupancy the and continue through gains and to to NOI We this see year year. into of remainder growth next

excluding $X.XX. versus posted are follows. onto cent we increased morning, of NOI income. for Now the third than better FFL share X.X% was highlights including for quarterly FFO the income. the operating of quarter results. same This the contributing factors as third to this termination per per lease per is share at excluding Primary year, of quarter the one of and the nine NOI center both center third share. XXXX solid This XX% termination last increase $X.XX quarter was increased quarter lease the Year-to-date months first for year, again same financial this results

million obviously a given Firstly, increase $XX from can land quarter. gains lumpy be any in which in sales

from through was by to offs pandemic third, million factors following. straight $X million income. we assessments a receivable quarter This debts expense. XXXX receivables our bad third This line last And in we we assessments rent a by third pandemic a are tenant receivables, had year, this of year and of benefit for $X $X bad reserves through write of of AR. debt related bad previously the XXXX also driven million collections improvement and of rental quarter in the of increase reserved our third straight last tenant line these driven as work related Offsetting debt continue Secondly, year. in to quarter during remaining positive the continue in $X million work 'XX tenant as then

Firstly midpoint. represents our an the than valuation to expected is in pandemic. better this second of the same the extremely this attainment center operating 'XX due wide decline $X.XX growth and lease our FFO. to the and lastly, updated greater including consecutive FFO retailer decrease this expectation This better an midpoint of expected now well of this quarter guidance income, improvement following stronger X% adjustments $XX to estimated X.X%. in the our a is core for decreased the termination all stores unexpected last than Most This common for quarter-over-quarter represent which as $X.XX to NIO of driven the share notably, third per a per NOI FFO $X.XX range XXXX, United increased of an in same was million that settlement is in area closed percentage top-line center would large narrowed This FFO we within 'XX, was rents, investments in NOI by growth, last national range revenue, the now guidance $X business And pertaining their funds. retail range lease XXXX, debt If of than in expenses. includes from quarter relative our from bad revenue, has termination the million guidance X% FFO morning, range the growth year. and We XXXX X.X% States growth at given in year a estimates. share. decline rebounded

amounts guidance for our increased and offsetting rental as straight expense also We interest well income, line $X of million. as by equal of

reasons the to specifically strong, This expected be to very roughly in per growth details of $XXX More operating of of in Increased our noi Chanlder Onto which of expected in $X.XX 'XX, $X.XXX that share sale $X.XX 'XX the improvements. be a mentioned approximately late factors of the that is decline flow this information, continues included FFO morning. Looking of adjustments the 'XX. filed very at same XXX XX, valuation sale which within previously 'XX, one, land represented in then outlook NOI, penny a share of a represents this expected strong in healthy sheet. was consensus And share. per This emphasize FFO To large our are decline. decline at Page following is the close contributed of very business payment two $X.XXX now at X-K cash was share. midpoint balance a FFO timing to delayed financial to secondly, Bloomberg revised a about behind factors change. by that roughly guidance, is and per million XXXX per supplemental dividends. street per of operating assumptions guidance our retail to for ahead close offset Form Increased earlier FFO the center land guidance is share before core the

to continue weighted on We Year-to-date, of million or at we closing maturities. have remaining over focus a XXXX extended average just $XXX X%. debt of refinanced rate our

for Santa XXXX, $XXX place year month. years loan loans to extend to The years during loan to and four multi late place three close is extensions on Monica our expected for late-XXXX. until extend to until Square Washington expect of $XXX Santa Monica We on million the expected in Square million this is Washington

place, extensions plus loans to will interest We average as SOFR expect caps these weighted effectively in rate Both have on they so will the loans. two rate hedged floating be fixed rate be X.X%. approximately

we nearly details we year. But of deals Given we to million collectively billion at extended liberty available. which line are $XXX further our this $X.X will capacity credit, still transactions of about of on transactions these disclose have are refinanced debt undrawn have or those this not time. Including two at pending, these

Debt leasing approximately $XXX of times the debt at the service -- EBITDA the to year end of at is liquidity X over forward quarter. net costs a was We million have times today. sorry, excluding I'm at X.X of the healthy coverage end

liquidity, well the to operating continue I'll flow. and discuss operating positioned both -- Doug, available be we as today's the maintain for well environment. to well continue to With standpoints of generating positioned over leasing it We that, to in cash turn as environment you

Doug Healey

Leasing Scott. very continued the by third momentum strong in metrics and evidenced as Thanks volumes. quarter high

And sales strong Third third quarter quarter the in this was of expected flat XXXX. of very compared third XXXX. and quarters fourth given were sales when the to

and XXXX our year-to-date of of and XX% leasing been store to expiring this the spreads XX% the the and ago. feet XX-month stage. finished Intent square working X.X% of year an of to since square square with we've XX% the almost Plaza, Village, per the where And we were Doc nearly and Plaza is with more Scottsdale luxury compared And in base year-to-date almost square for same compared concurrently all JD Intent as Sports with as third expirations Washington the category XXXX, quarter the include the were Today, a Fashion totaling with exceeds pre-pandemic. time Center. stores when we've the this Fashion at new over period Square. Martens Square, and another year. brings have Queen last Notable openings opened of Louie and sales XXXX in September cottoned Home digitally feet We This hotbed Travis is quarter. again, third in Square, Broadway just we third SanTan quarter new Commons Kings this men in we and Kings expiring North X.X% our Letter strongest there at X% up time Sephora, Allbirds, that Public [Indiscernible] third footage we and third addressing lease company. negative all XX and opened Scottsdale the native Scottsdale at or Vuitton brands Matthew In two this in Vintage Fashion Fresno XX,XXX North at for a were Avocado, Plaza, remains stores footage Sales the XXXX, stage. XXXX on Letter our at emerging XX, Parachute while in almost Garage Fair Santa XXXX. Trailing remainder We had XXth of SanTan And once include foot which Birdie, our the at open Corte Other X.X% in open of Madison committed are category stores. our openings year. Village rec, square In Reed Fashion Kierland committed almost of square $XXX. Bad XXX,XXX feet, XXX,XXX village quarter openings Madera, last and The XXXX quarter. last of notable Street, September Biltmore just place. the Vinfast result at to of spread Park, expirations, Purple Monica space about quarter high However represents on and

transform non third River, exception. Club traditional And Vehicles hospital Motor quarter our was Green Plaza, Street. the of our to Kid continue opened We a at properties into to and to bringing As true at we committed Department no we're Acres Country town campuses. centers, City uses XXth veterinary Chainstore Valley

industry with Kendra Plaza, located relocate our just Center Martens Danbury, Gucci around Noble, Plaza, open Doc with Sports down and Country Village Cerritos future. bring and third Lifestyle XXX,XXX very with their square forward And Mall the up will apparel that Turning right with retailers XXXX prominent an best Scott these leasing most market look time and Tyson's over We sought the Square best renewal extremely we XXX of Mads and And new square [indiscernible] centers. we Square. a open two will the in about deal our worth XXXX. air Arizona. primary where the Louis that Danbury closest a signed just brand in in XX,XXX in Laurent, This Fashion of the all dresses Scottsdale million making Scottsdale Vuitton, totaling because [ph], it's our and terms luxury but few. centers Target the signing square the the and the real Men Saint since after And not lifestyle is third estate. quarter out I rest at as and of Connecticut, was brands in two in one square years People our pleased Washington experiences, very States. best store choices. and this X.X X.X Scottsdale quarter. Year-to-date, the and Corner, it's Fair announce proving we Dior, to This important include are Vegas. Queen in Fashion men's additions Scottsdale Round level Las Barnes luxury from make Danbury to open only my in feet. and of the the addition And signed Broadway in At retailer to from the United preferring in the Louis Square, Vuitton, our signed Lovesac and enclosed but volume Los the meds on of an further proves And the it's the Movement the estate other village, our of at Versace entire XX,XXX clear not year that Corte at thesis SanTan this where arguably we're brands the shopping for market, of feet. time, the retailers an signed leases that and leases the Fashion are Fair air most a near luxury quarter signed noteworthy property. at announcing unquestionably Brunello leases Center to almost we recent chatter foot likes after they'll with we've same is Other in making, for leases iconic venue, in being Club X footage repeating Scottsdale, in Terex at international Three the leases brands there to And in third notable its prominent joining were about the JD [Indiscernible] about this rather road million the a destination signed first XXXX. state and In Square And we Commons, that Madera, Prada Kierland square XXX feet. fits store it's Arizona, square at Levi's real Cucinelli Lululemon In be foot and will name

Fresno to emerging that Madison at per that, terms for and this While love and quarter, Plaza, changing continued the Third we of just just And leasing find generation. few. the game and including it's for year, into and digitally Kierland name Earth XXXX. at our approved Square, XX% very next Street feet duo And of hard traffic documentation believe reiterate at Queen already flow, volume strong our moved and Curve to Voices deals Broadway Corner we foot Fashion. does XXXX. added Once shadow strong that's this Outdoor square Center reviewed over growth with XX% than revenue Reed to $X,XXX a XXth leases sales, tenants the same to This both to approved Tysons over during deal bodes signed and square sales continued at and even Avocado third and deals of year, for at remainder footage across already in Commons, Toward year-to-date strength be square more XX,XXX in we In did well these and the we extremely more and period portfolio, for native Brilliant in of pipeline. to brands Allbirds occupancy are the Washington

So conclusion, increase, and are three positive they've continues the Leasing to in setting volumes strongest are leasing year, on metrics for outpacing the occupancy in year. our a record consecutive are in spreads second digits years. Sales last are solid. operating leasing been now pace mid-single

best well over think backdrop although open of of call As pullback to turn retailer portfolio I the the quarter, environment exists future shopping class from to potential testament operator I'll as centers. have to-date, is healthy our little the a retailer's, Q&A. we it that and looming the now up unknown, today, the in mentioned as despite And of to for seen last and very macroeconomic recession, a the remains a which the result I

Operator

[Operator Scotiabank. Greg will with begin We with Instructions] . McGinniss

Greg McGinniss

out morning good Hey, there.

you redevelopment costs, borrowing we could redevelopment serious stare and risks. removal hoping but some then of the the discuss on mixed at higher costs your the pipeline higher economic of disclosure as construction potential thoughts development looming and use at Looking in the the changes

Scott Kingsmore

Yeah, share with addressed densification. more the intend of exception Changes lion's in boxes development you good add to really afternoon, Greg. of mixed pipeline that and Sears the those use we've to terms we the the scrape know and of

Fair at completed Primark, Sears example, retested what of mentioned property for hospital of boxes the we've New accompany in a the returning Vintage at York with scale So at we smaller to upstate Danbury with the we the returning target mall just Box Mall, Deptford use. the

for Cerritos. likely So those will report we've Los projects Washington we're in or preleasing in certainly once our report, an they addressed most to still really we Square we'll development of and have those, land entitlement pipeline. And

point, those. appropriate remove So at this to it was

traffic We are have with variety very excited that right effort been months demand, result we We're the uses, in going that continued of and as least of well. is we run we [Indiscernible], those luxury supplemented attractive place incremental it's projects. at returning are did the Doug thick Nordstrom a estate are a which of luxury that of documentation, you've if to effectively, of three expansion announced with a a mentioned, most demand our our it's broad. in result at In diverse to couple incredible you great and right just it. two to Santa and names Amaze, global, provide really in Scottsdale, that we them continue and seen One light least exciting domestic, that to amount to attract rail had the Recall about an luxury we're a particular now now with real the through property. of luxury two ago. leasing across ago. and from of the very completed lease Wing. an it's intensified we evolution as know, And to And it as intend returns very Monica uses the station. just of names the at different instrument, three again, names The we're levels really years concentrate to

very Preleasing again, a returns. very exciting is good level So, project. at a very progressing attractive and

beginning the use. say, say mixed X% that, --yeah, And really would yields. at costs, independent and generally that the to I but or the borrowing beginning would of Lastly, those factor, so the certainly I year, unlevered which at us year, multifamily in even attractive the you unlevered are a range yields the of mentioned then. even wasn't the back increased of were yields

a coveted though, of positions mentioned, development Greg, we've garner As many our value our are communities. our land from very within highly partners. significant They

deals ground And stream or by the and which a contribute joint uses land office in in the so contribute we uses we would venture would the and NOI land either continue way. to lease into participate that residential from envision from

been increased So we're a plan really hasn't I in only -- today's environment. changed, borrowing that costs of it's result as reaffirmed would the game say

Greg McGinniss

you. appreciate Thanks, I all the there. thank color

on on want can Just what or are working you numbers then some outlets? sticking entitlements pipeline, you with development provide the And with us that the ability stadium, fixers yet also of guys any there. do any the updates, whether to there on around to or do city parcel

Scott Kingsmore

can't District, On Yeah. more report Fashion much point. I at this

Our to continues on work development the partner city with entitlements.

several to necessary of again, years the which would in line that is open. be when XXXX any secure space arena, control the timeframe, continue that's the of to down the We would accommodate which development

more may of to quarters. in position in next there, to the anticipate you a economics be we certainly nothing give more report, would over So I terms few

not liberty that right at now. an ongoing Greg, as I'm expand matter. far And that legal on to just you. Carson, As remains thank

Greg McGinniss

All right. you. Thank

Operator

from Deutsche Johnston hear with now Derek We'll Bank.

Derek Johnston

your versus ramping Can with especially you. the we redevelopment Thank on trading hear uses, dividend deleveraging? where morning. like or push potential between the the pull other Good stock increasing now, even and thoughts it's

Scott Kingsmore

Yeah, sure.

flow an an Just cash but payment million. CapEx, the payments, of recurring I is reset basis as before given on during us after to our recovering very COVID a good $XXX annual of free dividend used dividend harvest the with robust mentioned, that business reminder, opportunity the we a opportunity approximately flow. cash to amount along that's

the our retaining half in change business. to a back to maintaining still dividend we're those later, Derek still on decisions. footing, flow the end the firm committed made day, reduce healthy years cash outlook the of after committed the was remain At business debt. The and that portfolio is made remain two forward We to $XX to payout dividend we fast of very approximately the confident So we and ratios. million. reinvest We about

do No we a outlook certainly would dividend, guarantees future line given the of the to as back for cadence to important hope to it's get for increases, in position revisit that So, we be think down a increasing into our business. but the well.

really of vote, a for now. the in the business business it's outlook terms So, our firm the confidence right and for

our in way, and still are We leverage committed by ratios will the that. Santa portfolio to in very the remain were into low. reinvesting and Post-dividend the change, reducing acceptable back payout one that Monica our right world. through of examples into still Scottsdale developments Leading of in great are ratios our lowest very payout

I there's to things mindful good reinvestment to a be back balance our the and to in capital balance we're between we're So our going all shareholders. between also balance going sheet returning think of three some and

Derek Johnston

lease at for while point. a sense? had Make a here volumes you've strong pretty great. this Okay, Secondly,

I coming you hoping anticipating to rent year Thank online of XXX,XXX opening and wondering foot the XQ over next especially what the XQ. you. Just and in after can openings the you're square for potential was XXXX. speak cadence

Scott Kingsmore

sure, Derrick. Yeah,

say be So for really guidance to you XXXX. know, that, providing leasing pipeline you the falling of I'll continues short strong.

a deals and feet, quarters, very strong, are deals monthly, very volume both million few that X square agenda. between in now, the process. high be continue last For And signed it's deals reviewed to are exceeded it's twice

that from coming we'll that. would continue strong our impact we We stores growth expect to do So, have revenue which online. disclosure incremental updated in view that new does forward, from a coming to deck, we NOI the growth, see move provide investor our any as rent in we'll that continue new keep are is

can don't view that's tell back like happen. to that refer unless case. how me will you that, updated. the The think said, keep that we'll and I So Doug I is you

pipelines and abating. right doesn't Our show now it strong signs any

Doug Healey

the recession not. it get Sure, And on there, does. environment And looming back? Scott. time, given what's the out the is macroeconomic in the they're question and answer just retailer's No. the the all going short asked I is, pulling

retailer We have fail, Those a environment healthy very, ended COVID. now. during were failing to up pre-COVID very going that right

low ever is So we're list that left a as it's sheets. And balance as very out healthy with a lot of with watch there retailers been.

don't see soon. we anytime ending So this

Derek Johnston

everyone. Thanks for That's good. Sounds it . me.

Operator

Well, with Bank of now move to America. Craig Schmidt

Craig Schmidt

what you. to into just I higher Thank leasing wanted drove the really maybe dig spread.

more the fortunate it's power pointed just getting been well. that the leasing As more you Are was Are strongest played it's on you pricing X.X or you three years. or for quarter out, out explanation looking spread?

Scott Kingsmore

kind pricing review between about start week, which things given we creates Craig. and good pickup be we every that XX% tell. to and of demand. rate. push again, it's been the the to occupancy, We it that like In we'd to start a occupancy, Yeah, as question, And supply more for case. now that few a seems quarters quarter, deals power. to could with hard and think tension other it seems We've to we're more talking getting on And got

mid-single kind get digit think we that hoping to were spread. the I as of we'd healthy we started year, a leasing

forward, we're or And to ago. to we on as reviewing, now. I And In we think to call think on pleased spoken look the I here any be that? sitting even that's a level based sustain. commentary are we deals Doug, maybe spoke fact, two can that all continue

Doug Healey

of No, is on out exactly to Scott. what position And at main which on, rate, level XX% We refocusing all the occupancy. you goal we're now, occupancy, talked occupancy coming gotten occupancy, about ourselves pandemic to a I we've know, doing. think was spot our you're about

Craig Schmidt

just positive? And expectations a your leasing have reasonably spread. it you sounds I and for holiday Are continuation obviously, 'XX a guess like, to lot of that confidence, be

Scott Kingsmore

Craig. so. think I Yeah,

last on feel forecasts or that National at last some of I growth. for just conversations our based year. not call reasonable the mid-teens holiday type that quarter optimistic If with year, did mid-single XX% look think in year. robust assume they retailers, We growth, so the see they But, as the certainly digit to won't out you fourth are the there, we growth as it's about growth this

Doug Healey

a be holiday, in online, shoppers mortar. were read of couple And feels it the to delays a and bricks of it's year, of vast are in costs I've and like and expensive. Doug. it's Greg, which excites going are I and favor, people. the shipping, shipping to really addition and lot bricks The majority but feels exciting getting me, think this And really surveys mortars abundant frustrated last shopping

and bricks mortar to I holiday. So think going be very favorable very, is this

Craig Schmidt

color. the for Thanks

Scott Kingsmore

Thanks, Craig.

Operator

question come Khanal with next Our Samir will Evercore. from

Samir Khanal

year, not it's post-holidays, about but when morning. sort or are year Hey, tenant them off Scott, we in good and basically been fallout, of potential you I guidance next zero. basically you for thinking normally generally, are nil providing guys a coming see know just where right how the

momentum clearly sort of to into to need sort think figure side, leasing the So any positive out headwinds next on year. we about of just there's if trying but

Scott Kingsmore

setting were the restructure. hear their start have same that XXXX, Yeah. But that to It's a And to hear from hard start that to we're to not themselves We'd we'd renegotiation, we've now, start say in to experienced a up in of from hear ordinarily XXXX. going year right case. really consultants. them, from that's we'd for the major type retailers major nil just

I say think low mode, are So And conversations don't in likely coming it do fleets for shed tenant their high quality States. United our nil be they're I still I they've especially Town But low requesting we renewal expansion will to a to Center. going as year, stores, think think unusually right year well. the most a don't part. it's retailers sized of them strong. think be very XXXX going would fallout They the see our in in with stores, our I generally, to are in shutting will an but terms year. be I it's be in

may continued that I for screen nothing there set Samir. at the occupancy backdrop So think but two is growth, one here or in point on our there that radar be this or time file, that's that

Samir Khanal

to XX% CapEx? the of that that or balance back Doug, still a what sort retailers about you guess, you're kind the stores. you've back, TIs take then of that the of about, terms I not you I pulling step mean, primarily negotiating? up negotiation in sort talked of But what's just it of are they here? over talked pushback you're and are that higher And Is getting, on continuing committed kind if to of they're leases sort sort you pushing shifting back, of as open of

Doug Healey

Hey, function always pre-pandemic, Samir. like always rate And are years. much would it's that They it's negotiation, consistent. in tenant now allowances The several whether a it's last I whether or pushback changed over say the very haven't rate. of is

what we to say, quality we're get. would of is the to rate. I the Thankfully, round given our need get So battle portfolio, able always

Samir Khanal

shifting I it. got this more 'XX. talked year, I Scott, know but I the guidance on Okay, then if you've can landfill in, maybe later over think, And range, one gains coming about

start models this In to an we modeling, of is a to got item forward? now? we terms sort of if got think sort putting sort kind of the of into so, what about annually recurring our And magnitude of going

Scott Kingsmore

land to holdings were balance as case. in Arizona in with XX that our one market the the Yeah, sales had years, These that's Samir regional expanding most town envisioned on further longer time no are we, centers, that point the at we've portfolio. XX sheet for of concentrated land

get end going next we here So call I to to will XXXX inventory those be guidance. there. next that the of to we've good I into think continued that that forward. the There little in always But and think of be through we exhausted. really you that subside sell clarity a majority start past inventory, a with will continue will more XXXX on year, by inaugural year. time we when little of to provide and a sales We'll But sell element the give 'XX

more you months. give three in we'll a little clarity So

Samir Khanal

you. Thank it. Got

Operator

Compass to Van now with Dijkum move Point? Floris We'll

Floris Van Dijkum

for the my guys question. Thanks, like It business doing be sounds well. underlying taking seems to pretty

get You've back revenue 'XX leasing year think levels spreads, your to got store of expected growth it of guys was it's incremental next can or X% $XX positive NOI. you year-to-date, that approximately? same record S&L pipeline do million fairly you tenant robust, NOI sales, for When

going You you obviously to not great. are that get next year, you're for that. just see you on if And That'd but get there? how guidance can some providing be comfortable color

Scott Kingsmore

get Obviously, occupancy is on We very the is basis. pipeline to least end those we Floris. for to do Again, there. next share be a get there year, in some the time by very question I The there's we're stores. when. the we're that start mean, of comfortable, going strong. times delay think we'll Yeah, new

guidance of end of the occupancy next without giving terms terms run rate And basis, year. on so of in you yeah, a 'XX, I think be by in we'll there

Floris Van Dijkum

of other believe. relatively which your it I had the is low in terms then the at for thing, is OCR, XX.X% I And you question other

costs are to some relative us maybe to going their see tenants to more You're of through. their rent to talk and a and that push to we're at occupancy through dynamics Can starting pay how rate the forward? and relative ability ability of your you looking rents

Scott Kingsmore

you're went cost That's I XX.X%, I probably spreads five rate at than the you're where for to of Yeah, if or we of ability spot basis about occupancy, as mean, XXX push in at is were correlated I points, indicated less back no, XX%. with our year time, XXXX. And low us. on. four by as think negatively below end

So a portfolio. you of profitability our leading kind of likely of that's ability indicator want given rents push to? do our the a Doug, to

Doug Healey

online in becoming cost just from less stores are buy for occupancy would more and in ship These I more just buy retailer centers less They pick town online, less merchandize. say, than the of than in is store, they selling store. Yeah, our up our relevant.

value at. of not the real of our the necessarily off strictly is important look price of our how real cost occupancy. estate while we and and and So that's something really our estate, cost look still we We to properties occupancy

Scott Kingsmore

estate allows Bear there in Floris competition better mind, also push for you is competition, to certainly which real rate. our

where seeing so as a And leave competitive we certainly space. those situation we're situations there's

Floris Van Dijkum

Thanks.

and billboards And and revenue? me, terms amount? doesn't it other and things, up ability and ancillary in So to have typically you show you progressing? leasing doesn't increase parking question for and off more hard maybe out, last do for much better, in seeing it spreads, investors how for other is it's What of show and, to that leasing, are key that as the gets specialty economy figure how up really

Scott Kingsmore

question for us. Great

the that before. to to contracts, well. local we've that that, pre-COVID of all the our think I'll I revenue, that's year, cetera, segment business And one spoken back et just ancillary will, back revenues, that parking, in merchants, advertising levels the confirm this fact, extremely this bounced have

in at our still look north X% temporary you tenancies. occupancy, If terms our of of we're

that's the And tenant of you're kind specialty anytime was leasing and to convert temporary and what pull so And able there's that's we're X that deals uses, between about in a to counterpart tenant rent, temporary always those his a probably X.X Doug talking in world. times push paying. permanent to pickup

occupancy with going strong. that pandemic. should local news a big permanent some, permanent We're temporary the growth is maintained extensively has the the is have which The occupancy. our be merchants certainly component recovered forward of that shed I to to converting quite So we've forward certainly good throughout we with demand but to looking and converting well, worked though. very

Floris Van Dijkum

Thanks. That's me. for it

Operator

with Tsai Linda from comes Jefferies. question next Our

Linda Tsai

'XX. potential a that in has And been or of tenant netting still item, in in a the bad earnings tailwind low line with Is a debt headwind a tailwind 'XX. view Hi, 'XX. to is debt recovery bad likely fallout that

Scott Kingsmore

reserve -- you We'll for those the would showing We've extent We are being term, contract to Hey, relatively say receivables get and some compels forces received probably in neutral. significant GAAP gapper XXXX. that those this of retailers able Linda, their retailers not I to their weakness rent of year. lesser lease of to once it's signs a certainly file see once of remainder the benefits entirety. you collections in meet

debt point neutral. going next to year. time huge relatively it's needle mover. big a don't we this bad line It's in think a I see not be But item at

Linda Tsai

how about three store growth in thinking then their retailers over plans Irma's it. luxury And years? next on two U.S. Scottsdale, Got the are to opening

Doug Healey

And the Hey, at Scott And the Wing, you we Linda And Luxury we they're in now tenants is have space. more going as finished right know, luxury now probably move now Marcus we very, the wing. hard to our than Doug. Nordstrom it's and the have remix earlier, we're the very looking right of active., to in strong sector Neiman a luxury demand category are States. United Scottsdale. mentioned very

Chicago see Santa we around very have a place. keep luxury Outlets Square, lot luxury So Scottsdale aggressive. it But Monica and mind extent, Fashion really we as of of is to or a Fashion in focused don't lesser

Linda Tsai

Thank you.

Operator

now move Sandler. Piper to Connor We'll Mitchell with

Connor Mitchell

couple. question. Hi, thanks for taking my I have just a

at release, that this reported similar Do think you Park recently do see now one locations? elsewhere? earnings IKEA be And leaving. that might potentially could urban a if situation and closing is early Alexander's you or be in they was up possible tenants opened any Rego first, guys So off

Scott Kingsmore

going necessarily urban be don't I leave. I think think mean, though, don't always locations there's store I No, going and situations indictment so. where to format underperforms that's they're a on to large an Doug.

Doug Healey

centers. within Queens going what's of portfolio. would little No, world And we've fallout one in sort I our Kings of I urban indicative urban on consider to Plaza in I Queens location the and either in consider those Brooklyn of would mean, urban location in Plaza seen and I no think that's

Scott Kingsmore

with those feet retailers that pretty apparel roughly news Queen good square locations, significant. is, now. prominent to backfill the alluded opportunity to liberty disclose is The XXX,XXX in at two you to not of very center, some we're that's right Doug,

incrementally, base that up frankly, with, high. So is creative opportunity does resources and the at sales a come generation the from traffic backfill to and pretty

Connor Mitchell

of transact moved these And through and market, now the assets, Or how then website, stake selling that. assets see your you to in assets? in open, the appreciate non-core ability it's position? you do view Okay, one these Google's regarding type in. type and yourself the your Do harvesting to that of

Scott Kingsmore

a It's Well, one Westside certainly tenant, Google single credit. unique.

project feet. is we're NOI that And some the a very no a Campus, conversion which of project. credit. noteworthy. It's diversity Google, from regional certainly a So cap to into what transaction for get that In fantastic can't are I enjoy see for very the It's it's celebrating venture joint of is mechanisms meantime, and the agreement, you now that the that to retail allow can in occur. obviously longer going look There's rates Google a XXX,XXX do attractive. mall square we're

time, the ahead So and and we'll something. that NOI, to on hold go we'll at appropriate consider

Connor Mitchell

Okay, could last quick just one. and then if I one

place. Monica could pay principal heavy you Regarding expecting for or expensive that? Washington you Square Santa extension? downs If on the Are any speak in

Scott Kingsmore

are Those details. the are into get that can't pending. transactions I Yeah,

inappropriate So it'd me for be to do.

doing specifics So you last for that, into very to down and but secure with and pay extensions ability be capital going years, I'll to Santa our with get just any tell there. Monica, Square Washington that's in can't we sure little what couple to dissimilar the refinancings we're not exercised to we've I'm

We few weeks. will next report once should be the those transactions are which closed, in

Connor Mitchell

Yeah, understood.

Okay. all Thank you. me. for That's

Scott Kingsmore

you. Thank

Operator

hear JPMorgan. now Mueller with We'll from Mike

Michael Mueller

times the a driving just some it redeveloping call box the close are to returned to Santa of dynamics at What higher Monica quick two Hi, redevelopment one than here. box Fashion? the Yeah. Scottsdale the

Scott Kingsmore

per a Well, configuration. rail doorstep COVID extremely to It's attractive real of commuters light doorstep X,XXX three prior that from estate across for day, delivered you level know the the to of positioned starters. that

subsided starting longer obviously commutes replaced we a heavy a up tourist to it great feel opportunity now. little there's almost fully And does during that like my to a bit tourism domestic tourism that. to seems see has So there. Santa tick community. something is Monica have COVID, International a do

I daytime So population here in incrementally. the Santa improving Monica population, think is the office

we're little Street able bit If look than, it project to is Santa relative say, Promenade. maintain Third the to Monica, Street, at balance, privately of just project privately and in different of you a our fashion a which our north secure Third do

And to those I interplay So three fundamental with be can the And to destination details We're coveted about about we provide the more there. fully the that as by And course, use. soon those uses other from, a leases kind to on will with each those very lastly, deemed uses synergistic. a really negotiated. underpinning way, we we're once But is week well. times are as excited real as perfectly, estate of it's you is of think significant entertainment advantage four co-working. very excited ranging the highly two, fitness pretty then

Doug Healey

And of luxury goal there. perfect to to we think think generate to available for had interest Santa Monica this would the than returns is we footsteps for higher while our competition And interest we was more the had space. some space. had example I perfect that's earlier, of and the why we you're had property, come with that alluded a seeing Well, of I by And more place, mix, this than space. you where Scott, rate drive to definition the up

Scott Kingsmore

great I went point. Yeah, mean, through iterations. multiple

of that different a Asians uses. variety out have with laying

again, rent. So creates competition

Michael Mueller

Got Thank you. it? Okay.

Operator

now from we move And will to a question with [indiscernible] Truist.

Unidentified Analyst

morning. Good you. Thank

you disclosure, the Just this a month. debt refinance potentially I on about being noticed balance talked sheet. in questions and couple quick the Santa Square your Washington Mall Monica

the Washington at spread, X.X%. the at X% Square SOFR Looking and Monica Mall Santa a of spread

go mall. want a like future curious, a Thank that's expect what two into know somewhat on too $X,XXX foot are to of quality of we don't refinancings. much your Curious detail. just And can pricing was malls, indicative different you square I Square other if Washington correctly, I Just for you. plus those perspective some But high spread. sales if remember

Scott Kingsmore

going some can't Yeah, Santa Yeah, out. Monica. transactions really the markets all debt and on each. much at new The the good lenders money comment unique as do And further effectively Washington view these I differences afternoon. of Square between

aware population. different they What at contemporaneously which entire over about can't deal execution, balance, at. XXX are into it going SOFR. get with the is and each But again, and deal arrive things the price deal of that do I every view they On every terms. you is broadcast So to one can't the of where just unique, look is we is good certainly feel dynamics at over so though. we're

Unidentified Analyst

Okay.

like loan, Santa you option that all agreement one had of the on from is price at question that type Monica Just an benefiting previously?

Scott Kingsmore

So loan December of is the maturity Monica XXXX. Santa the on

Unidentified Analyst

Was of quarter? cash Okay, question, and last to from just benefit the grow tendency any Scott. this there base conversion

Scott Kingsmore

a bit million little of kind marginally you which our positive, bad were little, Very than debts, see in a bucks. it our in less

a see it's it but not significant. bit there, you'll little of So

Unidentified Analyst

you, guys. thank Okay,

Scott Kingsmore

Thank you.

Operator

from hear Craig with now Citi. we'll And Mailman

Craig Mailman

the schedule. update looking at are where Any I'm of and Scottsdale? at curious there? process Green kind right, on All the In debt we maturity Acre XXXX just

Scott Kingsmore

dollar $X revenue the Yeah, Acres, campuses, assets. of across sales billion annual board. Green of very our we few which billion are in the a market. one Those unique is generates very are two

So household names box to traditional to it's retailers big everything uses. mall major grocery national from

bit terms XX top a of is States. unique its a it's So in United Fashion in makeup Square the and Scottsdale and flavor asset its

redevelopment and its We belt, have a luxury, huge to momentum more come. under

two right we assets are in that now. on those are So unique the market

continue next to our So few report two. on over we'll progress the those months

Craig Mailman

lenders rolled extension Or that? to would similar to be those you kind of be deals? kind refinance of will Do think open recent

Scott Kingsmore

because means in other XXXX they'll think think I nature And candidates now, we're of which we'll them. I Yeah, right again, refinance have unique refinance rolls candidates, as be of the on. the attractive market

Craig Mailman

Or market? is prospective one under on contract then got gains in guidance are of and delayed, now timing 'XX got pushing you Okay, sort out? one transaction that just that a just guys the that is pushed landfill the that and the just placeholder out quick in

Scott Kingsmore

fruition, It's specific the a provide come deals buyer developing for. Those contract. getting entitlements the to center deal that sometimes a in including uses little is to take place time to are

So matter a timing. of it's just

Craig Mailman

Okay, great. Thank you. Sure.

Operator

Our next question Haendel from comes St.

Just Mizuho. with

Unidentified Analyst

a were line going reverted guys adjusted Haendel. structure? spreads. exchange forward, a now, for I percentage your back for for break And for rents in a to base doing sign lease and Does [indiscernible] on well. points leasing and is up lower denominator have lower on rents. traditional leases large portion leases this follow COVID guys had include are Hope of Hi, you you

Scott Kingsmore

everything That's in we've comparison Yeah, expired last that's that in XX the point, signed the everything months. population XX the is the versus last months.

So we which, heavier And in rents, reflected fixed increases of with number. We've We'll that way when of rent convert we some case. are net be the continue time possible been in deals to that back deals, variable stronger a a will as structure those rent get lower that those. a element, fixed element be and had annual the case. to very, bit yeah, we will saying very convert pre-COVID those it's that continue a as for

fixed a bit with minimum annual for right that slightly now, very than rent higher which fixed that a can't maintenance are is So quantify the and the that. of much area increases, leasing increases common base there's annual there's rent, We're that on But with a in of basis tax We spreads. normal you. recovery. bit

So their triple net deals?

Unidentified Analyst

Got Thanks it. for caller. the Thanks.

here. Just one more

foot in you the it foot traffic How trended per sales is foot? is traffic? sales year-over-year? strong say higher had or the You much sales would you foot How strong the traffic to this that inflation? And would of is attribute quarter driving

Scott Kingsmore

really say Yes. range consistent consistent Foot foot and traffic has year, has I'd XX% traffic very XXX%. and bound, this relative been been levels. pre-COVID between to

We very are have luxury for a well, combination that's a performed of category tenants that certainly us. performing well, been has

healthy better is of is a I'd and all the everything generally else say trending environment, just sales got category footwear only categories. positive. mildly we our look that's as at negative, You've

really our impact there is it's well, up traffic across certainly an inflation well. of So in of the is but kind some board and, as thing, held there

Unidentified Analyst

for Got the color, it. guys. Thanks

Scott Kingsmore

you. Thank

Operator

with we And from Morgan Ronald have a question Stanley. Kamden

Ronald Kamden

in leasing the to sort coming one if of already. But of this of levels quick by occupancy addressed the you activity ahead on a of just you Hey, apologies and previously, and potentially slightly end back pre-COVID commented getting XXXX 'XX. sort

it's you're Just today. this not still point? maybe sort Is that expected better than or at worse as you curious of the sense? make seeing activity And sort of

Scott Kingsmore

to flow slow new Yeah, makes from it the that that provide stop we commentary their are seeing not they still today. on did expansions. or hearing some sense, deal store intend retailers based that we're Doug

the and so and, continued the NOI occupancy view continue is if next gain year still And we'll to growth that supportable, will get year we beyond. see into think in that

think So holds that I does anything different?

Doug Healey

that. nothing add to No, I to have

I the said the fallout economy. there. what's the very healthy have all a And think, might not out seeing in we're I And, to on we talked going As before, that environment given the time. you retailers retailer

Scott Kingsmore

to the in over underscore bricks a are theme great mean, that I that, that's from last Yeah, heard just days. think sector and I a few mortars spot. And you've our

Ronald Kamden

indicated, Great. extension. last one, are financing I on at or terms are guys rates may, of this Any out working to things some point those on side. the cost sort through idea in And I multi-year where looking if are then Thanks. debt of guess shake the just deals, you

Scott Kingsmore

financings, you're that's more say to have you're the I Yeah, about it's outcome Could figure Ron, towards going be basis. end better, going reasonable are of the where you're talking to that to sixes. going on mid be a on some that hard low you're have secured that would some average. low a are worse, that's, in balance, to the to But stands on probably out weighted average sixes,

Ronald Kamden

so much. thanks Great,

Scott Kingsmore

Thank you.

Operator

for And to the Scott gentlemen, time all the have closing over back that's questions today. for we ladies turn and call remarks. I'll

Scott Kingsmore

us. thank joining Well, you, everybody for

strong operating demand forward tenant the year enjoy us joining strong community. during November you many our to Scottsdale, you during That's day or today. Thank in continue virtually We on We from which in is November to XX. through results our investor person XX and for look of upcoming seeing

Operator

today. and And for your does gentlemen, with you now conclude participation. this that, you And ladies for conference may disconnect. your Thank

The Macerich Company (MAC) 3 Nov 222022 Q3 Earnings call transcript