Core Viewpoint - Macerich is positioned for growth in 2025 with a focus on simplifying its business, enhancing operational performance, and reducing leverage, making it an attractive investment opportunity for shareholders [4]. Company Overview - Macerich's leadership team includes CEO Jack Hsieh, CFO Dan Swanstrom, and Senior Vice President of Asset Management Brad Miller, among others [2][3]. Strategic Objectives - The company has outlined clear objectives under its "Path Forward Plan" for 2025, emphasizing the need to simplify operations, improve performance metrics, and lower debt levels [4].

Summary of The Macerich Company 2026 Conference Call Company Overview - **Company**: The Macerich Company (NYSE: MAC) - **Event**: Citi's 2026 Global Property CEO Conference - **Date**: March 02, 2026 - **Key Speakers**: Jack Hsieh (CEO), Dan Swanstrom (CFO), Brad Miller (SVP, Asset Management) Core Industry Insights - **Leasing Performance**: In 2025, Macerich signed 7.1 million square feet of new and renewal leases, an 85% increase over 2024, setting a new company record [6] - **Leasing Speedometer**: The leasing speedometer is at 76%, ahead of the 70% target for year-end, with expectations to reach 85% by mid-2026 [6] - **Signed Not Open (SNO) Pipeline**: The SNO pipeline reached $107 million, exceeding the $100 million target, with projections of incremental contributions of $30 million in 2026, $40-$45 million in 2027, and $45-$50 million in 2028 [7] - **Anchor Replacements**: All 30 targeted anchor and big box replacements are committed, expected to generate over $750 million in annual tenant sales [7] Financial Highlights - **Portfolio Sales**: Portfolio sales reached $921 per square foot, a new high since the IPO in 1994 [8] - **Positive Leasing Spreads**: The company has posted 17 consecutive quarters of positive leasing spreads [8] - **NOI Growth**: Expected at least 3% growth for the go-forward portfolio in 2026, with acceleration in 2027 and 2028 due to new leasing activity and redevelopment projects [11] Strategic Focus Areas - **Path Forward Plan**: The company is focused on completing a leasing pipeline of 350 additional new leases, solidifying lease expirations, and evaluating new acquisition opportunities [12] - **De-leveraging**: The company is in a de-leveraging stage, with a goal to reduce debt-to-EBITDA to the low- to mid-6 times range [29] - **Acquisition Strategy**: Future acquisitions will be opportunistic and must align with the 2028 objectives, focusing on properties that enhance the portfolio without jeopardizing current plans [19][30] Operational Improvements - **Technology Integration**: The company has improved internal processes and technology, utilizing Yardi for accounting and tracking, which has enhanced efficiency in leasing operations [40][41] - **AI Utilization**: Currently exploring AI applications for lease intelligence and energy efficiency, with potential future applications for market analysis and tenant selection [53][55] Market Outlook - **Retail Demand**: Demand remains strong across various sectors, including traditional retail, international brands, food and beverage, and entertainment [9] - **Future Projections**: The company anticipates continued positive growth in same-store and online retail for 2027, comparable to the last 12 months [63][66] Additional Insights - **Tenant Relationships**: Tenants appreciate the clarity and speed of decision-making from Macerich, which has improved their confidence in investing in the centers [50][52] - **Operational Efficiency**: The company is focused on controlling expenses and maximizing utility efficiency, especially in light of vacancy [61] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, financial performance, and market outlook.

Financial Data and Key Metrics Changes - FFO for Q4 2025 was approximately $129 million or $0.48 per share, with a legal claims settlement income of $16.1 million impacting results [20][21] - Go-forward portfolio centers NOI increased by 1.7% in Q4 2025 compared to Q4 2024, and for the full year, it increased by 1.8% compared to 2024 [20][21] - Net debt to EBITDA at the end of Q4 was 7.78x, a full turn lower than at the outset of the Path Forward plan [24] Business Line Data and Key Metrics Changes - The company signed 7.1 million sq ft of new and renewal leases in 2025, an 85% increase over 2024, setting a new company record [7][16] - Trailing twelve-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from the last quarter, marking 17 consecutive quarters of positive leasing spreads [15] - Occupancy at the end of Q4 was 94%, up 60 basis points from the last quarter, with the go-forward portfolio occupancy at 94.9% [14] Market Data and Key Metrics Changes - Traffic for 2025 was flat compared to 2024, but inline sales were up 1.5%, with luxury sales increasing by nearly 5.5% [37][19] - The company is experiencing a K-shaped consumer trend, with strong demand for luxury items while other segments remain cautious [35][38] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, driving operational performance improvement, and reducing leverage, with significant progress reported in 2025 [5][12] - The company plans to provide an updated Path Forward Plan 3.0 at REITWeek in June and intends to return to providing earnings guidance beginning in 2027 [12][13] - Key focus areas for 2026 include completing the leasing pipeline, solidifying lease expirations, and evaluating new acquisition opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, noting that the heavy lifting of de-risking the Path Forward Plan is substantially complete [12] - The outlook for consumer spending is cautiously optimistic, with expectations of increased traffic due to upcoming events like the World Cup and Summer Olympics [35][36] - Management highlighted the importance of physical stores as the most profitable channel for retailers, indicating a positive environment for leasing [39] Other Important Information - The company has completed $1.3 billion in dispositions towards its $2 billion goal, with additional unencumbered assets identified for sale [10][25] - The company is focused on value-add acquisition opportunities rather than stabilized higher-quality centers due to current cost of capital considerations [29][30] Q&A Session Summary Question: What types of properties are most likely acquisition candidates? - Management indicated a focus on value-add opportunities that are accretive to their 2028 FFO plans, with Crabtree as a prime example [29][30] Question: How would funding be structured for a sizable deal? - Management stated that issuing equity would be the first choice, followed by finding a capital partner, with property sales as a distant third option [31] Question: How should investors think about growth inflection timing? - Management noted that the SNO pipeline indicates a back-end weighted contribution in 2026, with significant growth expected in 2027 and 2028 [33] Question: What is the overall health of the consumer? - Management described a K-shaped consumer trend, with strong demand for luxury items and cautious spending in other segments [35][38] Question: What is the impact of closures and proactive space take-backs on NOI growth? - Management indicated that frictional downtime from tenant strategy initiatives impacted growth, but significant future growth is expected [74] Question: What is the timeline for remaining asset sales? - Management explained that the timeline for asset sales is influenced by debt maturities and the need to maximize value through zoning and entitlements [58]

Financial Data and Key Metrics Changes - For Q4 2025, FFO excluding certain expenses was approximately $129 million or $0.48 per share, with a legal claims settlement income of $16.1 million impacting results [20][21] - Go-forward portfolio centers NOI increased by 1.7% in Q4 2025 compared to Q4 2024, and for the full year, it increased by 1.8% compared to 2024 [20][21] - Net debt to EBITDA at the end of Q4 was 7.78x, a full turn lower than at the outset of the Path Forward plan, with a strategy to reduce leverage to the low to mid-6x range over the next couple of years [24][25] Business Line Data and Key Metrics Changes - The company signed 7.1 million sq ft of new and renewal leases in 2025, an 85% increase over 2024, setting a new company record [7][16] - Trailing twelve-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from the last quarter, marking 17 consecutive quarters of positive leasing spreads [15][21] - The occupancy rate at the end of Q4 was 94%, up 60 basis points from the last quarter, with the go-forward portfolio occupancy at 94.9% [14] Market Data and Key Metrics Changes - Traffic for 2025 was flat compared to 2024, but inline sales were up 1.5%, with luxury sales increasing by nearly 5.5% [14][37] - The company is experiencing a K-shaped consumer trend, with strong demand from higher-income segments while lower-income segments remain cautious [35][38] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with significant progress reported in 2025 [5][12] - The company plans to provide an updated Path Forward Plan 3.0 at REITWeek in June and intends to return to providing earnings guidance beginning in 2027 [12][13] - The focus for 2026 includes completing the leasing pipeline, solidifying lease expirations, and evaluating new acquisition opportunities [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, noting that the heavy lifting of de-risking the Path Forward Plan is substantially complete [12] - The leasing environment remains strong, with a significant number of deals being reviewed and approved, indicating robust demand for retail space [18][19] - Management highlighted the importance of physical stores as the most profitable channel for retailers, which bodes well for the company's portfolio [39] Other Important Information - The company has completed $1.3 billion in dispositions towards its $2 billion goal, with ongoing efforts to sell additional assets [10][25] - The company is actively working on renovation plans for newly acquired properties, such as Crabtree, which is expected to enhance value [10][11] Q&A Session Summary Question: What types of properties are acquisition candidates? - Management indicated a focus on value-add opportunities that are accretive to their 2028 FFO plans, rather than stabilized higher-quality centers [29][30] Question: How would funding be structured for a sizable acquisition? - The preference would be to issue equity if it makes sense, with potential for capital partnerships, and a distant third option would be recycling properties [31] Question: How does the leasing pipeline look for growth inflection? - Management noted that the snow pipeline indicates significant contributions in 2026, with a more pronounced impact expected in 2027 and 2028 [33] Question: What is the overall health of the consumer? - Management acknowledged a K-shaped consumer trend, with strong performance in luxury segments and cautious spending in lower-income tiers [35][38] Question: What is the impact of closures and proactive space take-backs on NOI growth? - Excluding certain closures, NOI growth could have been around 2.5% for the year, indicating potential for significant future growth [74]

Financial Data and Key Metrics Changes - For Q4 2025, FFO excluding certain expenses was approximately $129 million or $0.48 per share, with a legal claims settlement income of $16.1 million impacting results [19][20] - The go-forward portfolio centers NOI increased by 1.7% in Q4 2025 compared to Q4 2024, and for the full year, it increased by 1.8% compared to 2024 [19][20] - Net debt to EBITDA at the end of Q4 was 7.78x, a full turn lower than at the outset of the Path Forward plan [22] Business Line Data and Key Metrics Changes - The company signed 7.1 million sq ft of new and renewal leases in 2025, an 85% increase over 2024, setting a new company record [5][14] - Trailing twelve-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from the last quarter, marking 17 consecutive quarters of positive leasing spreads [12][13] - The occupancy rate at the end of Q4 was 94%, up 60 basis points from the last quarter, with the go-forward portfolio occupancy at 94.9% [12][13] Market Data and Key Metrics Changes - Traffic for 2025 was flat compared to 2024, but inline sales were up 1.5%, with luxury sales increasing by nearly 5.5% [35][36] - The company is experiencing a K-shaped consumer trend, with strong demand from higher-income tiers while lower-income segments remain cautious [35][36] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with significant progress reported in 2025 [4][11] - The company aims to complete the leasing pipeline of 350 additional new leases and solidify remaining lease expirations for 2026 and 2027 [11][12] - An updated Path Forward Plan 3.0 is expected to be provided at REITWeek in June, with earnings guidance anticipated to return in 2027 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, highlighting strong leasing momentum and a robust pipeline for future growth [11][12] - The company is optimistic about the impact of upcoming events like the World Cup and Summer Olympics on consumer traffic and spending [35][36] - Management noted that physical stores remain the most profitable channel for retailers, which bodes well for the company's leasing strategy [37] Other Important Information - The company has completed $1.3 billion in dispositions towards its $2 billion goal, with ongoing efforts to address remaining debt maturities [9][22] - The company is focused on value-add acquisition opportunities, particularly those that can be immediately earnings accretive [28][29] Q&A Session Summary Question: What types of properties are acquisition candidates for Macerich? - Management indicated a focus on value-add opportunities that align with their portfolio metrics, rather than stabilized lower cap rate assets [28][29] Question: How should we think about the growth inflection in the second half of 2026? - Management noted that the growth contribution from the SNOW pipeline is back-end weighted, with significant contributions expected in 2027 and 2028 [32] Question: Can you discuss the overall health of the consumer? - Management described a K-shaped consumer trend, with strong performance in luxury segments and cautious spending in lower-income tiers [35][36] Question: Are there plans to evaluate other revenue streams outside of acquisitions? - Management stated that while there are opportunities for mezzanine financing and structured finance, the focus remains on executing the current Path Forward Plan [42][44] Question: What is the status of the remaining dispositions? - Management explained that the timeline for remaining asset sales is influenced by debt maturities and the need to maximize value through zoning and entitlements [56][58]

Financial Data and Key Metrics Changes - FFO, excluding certain expenses, was approximately $93.35 per share during Q3 2025, with a Go-Forward Portfolio Centers NOI increase of 1.7% compared to Q3 2024 [20][21] - Net debt to EBITDA at the end of Q3 was 7.76 times, a full turn lower than at the outset of the Path Forward Plan [22] - Portfolio sales at the end of Q3 were $867 per sq ft, up almost 4% compared to the same period in 2024 [12] Business Line Data and Key Metrics Changes - Signed 1.5 million sq ft of new and renewal leases in Q3 2025, an 87% increase from Q3 2024, bringing year-to-date signed leases to 5.4 million sq ft, an 86% increase compared to the same period in 2024 [6][11] - The SNO pipeline grew from $87 million in August to $99 million, with expectations to meet or exceed the $100 million target by year-end [7][8] - Trailing 12-month leasing spreads remained positive at 5.9%, marking 16 consecutive quarters of positive leasing spreads [13] Market Data and Key Metrics Changes - Traffic through the portfolio was flat compared to Q3 2024, but comp sales for the go-forward portfolio increased by 3.5% [12][57] - The retailer environment remains strong, with legacy retailers reinventing themselves and emerging brands rapidly opening stores [17][18] Company Strategy and Development Direction - The company is focused on operational improvement, leasing momentum, and achieving deleveraging targets as part of its Path Forward Plan [5][11] - The acquisition of Crabtree Mall is seen as a compelling investment, with plans to invigorate leasing momentum and drive permanent occupancy [11][49] - The company aims to refine its portfolio and strengthen its balance sheet through a $2 billion disposition target, with almost $1.2 billion completed to date [21][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in hitting 2028 targets due to strong leasing momentum and a healthy retailer environment [5][17] - The company remains patient and disciplined regarding additional external growth opportunities while focusing on leasing and operational improvements [11][22] - Management noted that despite macroeconomic uncertainties, retailer demand across all categories is strong, indicating a robust Class A mall sector [18][75] Other Important Information - The company has approximately $1 billion of liquidity, including $650 million of capacity on its revolving line of credit [22] - The addition of high-profile retailers like Hermès and Level 99 is expected to enhance the portfolio's attractiveness and drive customer traffic [14][15] Q&A Session Summary Question: Follow-up on equity issuance - The main objective was to make Crabtree leverage neutral, with future ATM use evaluated in the context of accretive growth opportunities [29] Question: Clarification on SNO pipeline - The $6 million related to Crabtree includes both in-place NOI and incremental leasing since acquisition [30][31] Question: 2026 lease expirations - 55% of 2026 expiring square footage is committed, with another 30% in the letter of intent stage, significantly ahead of last year [34][35] Question: Anchor leases timing and capital costs - Most anchor leases are expected to commence in the back half of 2027 or early 2028, with capital costs varying by tenant [37][39] Question: Financing appetite for non-Fortress assets - The financing market has improved, with recent loans closed at favorable rates, indicating a positive outlook for refinancing [44][49] Question: Impact of Canadian tourists on sales - There has been a reduction in Canadian tourists, but sales performance at key centers like Scottsdale Fashion Square remains strong [72][73] Question: Conflicting signals in retail performance - Despite some retailers facing challenges, the demand for leasing space in high-quality malls remains robust, driven by a lack of new supply [75]

Financial Data and Key Metrics Changes - FFO excluding certain expenses was approximately $87 million or $0.33 per share for Q2 2025, with a notable increase in NOI for the go forward portfolio centers by 2.4% compared to 2024 [29][30][31] - Net debt to EBITDA at the end of Q2 was 7.9x, nearly a full turn lower than at the outset of the Path Forward Plan [32] Business Line Data and Key Metrics Changes - Year-to-date leasing volume reached 4.3 million square feet, significantly higher than the same period in 2024, with a 40% increase in lease signings and 75% more square footage [20][21] - Trailing twelve-month leasing spreads remained positive at 10.5%, marking 15 consecutive quarters of positive leasing spreads [19] Market Data and Key Metrics Changes - Traffic through the portfolio increased by 1.6% year-over-year, with the go forward portfolio traffic up by 2.1% [18] - Occupancy at the end of Q2 was 92%, down 60 basis points from the previous quarter, primarily due to the closure of Forever 21 stores [18] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with a target of 4 million square feet of leasing in 2025 and 2026 [7][10] - The acquisition of Crabtree Mall is seen as a strategic move to enhance the portfolio and drive shareholder value, with plans to increase occupancy from 74% to closer to 90% by 2028 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing momentum and the ability to achieve targets ahead of schedule, despite macroeconomic uncertainties [66][67] - The retail environment remains strong, with many national retailers actively seeking new spaces [25] Other Important Information - The company has made substantial progress on asset sales, with over $800 million in mall sales completed to date, and a clear path to achieving a $2 billion disposition target [35][36] - The Snow Pipeline has grown to $87 million, with expectations to exceed $100 million by year-end [13][27] Q&A Session Summary Question: Can you provide more background on the Crabtree acquisition? - Management highlighted the unique market position of Crabtree and its potential for NOI growth, emphasizing the need for leasing efforts and capital to enhance the merchandising mix [40][43] Question: What benchmarks need to be hit before reinstating guidance? - Management indicated that asset sales are crucial, and they prefer to focus on executing leasing and sales without being constrained by guidance numbers [51] Question: How is the bad debt trending? - Bad debt has decreased year-over-year, with the watch list at an all-time low, and management is confident in re-leasing spaces previously occupied by Claire's [52][54] Question: Can you discuss the tenant improvement (TI) expenses in the quarter? - Management noted that TI expenses have increased due to new leasing activity, with expectations for continued increases as they address vacant anchor stores [59][61] Question: How does the Crabtree acquisition impact external growth activities? - Management expressed confidence in pursuing additional acquisitions, citing strong leasing momentum and the potential for significant NOI growth from Crabtree [66][67] Question: What is the rationale for keeping South Plains Mall in the portfolio? - Management is currently negotiating with lenders for an extension, believing that with the right terms, they can create NOI lift at South Plains [103][105]

Financial Data and Key Metrics Changes - FFO excluding certain expenses was approximately $87 million or $0.33 per share for Q2 2025, with a notable increase in NOI for the go forward portfolio centers by 2.4% compared to 2024 [27][28] - Net debt to EBITDA at the end of Q2 was 7.9x, a decrease of nearly one full turn since the start of the Path Forward Plan [30] Business Line Data and Key Metrics Changes - Year-to-date leasing volume reached 4.3 million square feet, exceeding the target of 4 million square feet for 2025 and 2026 [8][18] - Trailing twelve-month leasing spreads remained positive at 10.5%, marking 15 consecutive quarters of positive leasing spreads [17] Market Data and Key Metrics Changes - Traffic for the portfolio increased by 1.6% compared to the same period in 2024, with the go forward portfolio traffic up by 2.1% [16] - Occupancy at the end of Q2 was 92%, down 60 basis points from the previous quarter, primarily due to the closure of Forever 21 stores [16] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with a roadmap for achieving 2028 targets [6][7] - The acquisition of Crabtree Mall is seen as a strategic move to enhance the portfolio and drive shareholder value, with plans to increase occupancy from 74% to closer to 90% by 2028 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing momentum and the overall retail environment, despite macroeconomic uncertainties [22][23] - The company is optimistic about achieving its leasing and asset sales targets, which are crucial for reinstating guidance [50] Other Important Information - The company has made significant progress on its balance sheet initiatives, including a recent $160 million term loan for Crabtree Mall [29] - The Snow Pipeline has grown to $87 million, with expectations to exceed $100 million by year-end [12][25] Q&A Session Summary Question: Can you provide more background on the Crabtree acquisition? - Management highlighted the unique market position of Crabtree and its potential for NOI growth, emphasizing the need for leasing efforts and capital to enhance the merchandising mix [38][41] Question: What benchmarks need to be hit before reinstating guidance? - Management indicated that asset sales are crucial and that they are balancing asset sales and leasing without constraining guidance numbers [50] Question: How is the bad debt trending? - Bad debt has decreased year-over-year, with the watch list at an all-time low, and management is confident in re-leasing spaces previously occupied by Claire's [52][54] Question: Can you discuss the tenant improvement (TI) expenses in the quarter? - Management noted that TI expenses have increased due to the high number of anchor stores being reconfigured, with expectations for continued increases as they drive traffic [60][62] Question: How does the Crabtree acquisition impact external growth activities? - Management expressed confidence in pursuing additional acquisitions, citing the positive leasing momentum and the potential for high returns [66][72] Question: What is the rationale for keeping South Plains Mall in the portfolio? - Management is currently negotiating with lenders for an extension, believing that with the right terms, they can create NOI lift [102][104]

Core Viewpoint - The Macerich Company has announced the acquisition of Crabtree Mall for $290 million, which is expected to yield an initial return of approximately 11% and is aligned with the company's Path Forward Plan aimed at enhancing operational performance and asset value [1][2][3]. Acquisition Details - The acquisition involves Crabtree Mall, a Class A retail center in Raleigh, NC, covering approximately 1.3 million square feet [1]. - The expected initial yield on the acquisition is around 11%, with a potential yield of approximately 12.5% when considering current leases that will commence in 2027 [2]. - A strategic investment plan of about $60 million is planned for redevelopment and leasing to maximize the mall's performance from 2025 to 2028 [2]. Financial Strategy - The acquisition was funded using cash on hand and $100 million borrowed from a revolving line of credit, with plans to repay this borrowing within 30 days using proceeds from a $160 million two-year term loan [3]. - The financing strategy is designed to maintain the company's de-leveraging targets under the Path Forward Plan [3]. Market Position and Growth Potential - Crabtree Mall is positioned in the high-growth Raleigh-Cary, NC MSA, which is recognized for its innovation and wealth, anchored by the Research Triangle Park [4]. - The mall features over 200 stores and generates $429 million in annual sales, with a sales per square foot of $951 and over 8.7 million annual visitors [6]. Company Overview - Macerich is a self-managed real estate investment trust (REIT) focused on high-quality retail properties in densely populated U.S. markets, owning 41 million square feet of real estate across 38 retail centers [7]. - The company has been recognized for its sustainability efforts, achieving a 1 Global Real Estate Sustainability Benchmark ranking for the North American retail sector for ten consecutive years [8].

Financial Data and Key Metrics Changes - FFO excluding financing expenses was approximately $87 million or $0.33 per share for Q1 2025, compared to $75 million or $0.33 per share for Q1 2024, driven by higher leasing revenues [32] - Same center NOI, excluding lease termination income, increased by 0.9% year-over-year, while excluding Eddy assets, it increased by 2.4% [34] - Net debt to EBITDA at the end of Q1 was 7.9 times, nearly a full turn lower than at the outset of the path forward plan [36] Business Line Data and Key Metrics Changes - In Q1 2025, the company signed 2.6 million square feet of leases, including 2.3 million square feet of renewals, more than double the leases signed in Q1 2024 [12] - Trailing twelve-month leasing spreads were 10.9%, up from 8.8% in the previous quarter, marking 14 consecutive quarters of positive leasing spreads [22] - New deal completion percentage reached 60%, up from 39% last quarter, with a target of 70% by year-end 2025 [14] Market Data and Key Metrics Changes - Portfolio sales at the end of Q1 were $837 per square foot, flat compared to Q4 2024, but $928 per square foot when excluding Eddy properties, which is an increase of $13 [21] - Traffic for the year increased by 2% compared to the same period in 2024 [21] - Occupancy in Q1 was 92.6%, down from 94.1% in Q4 2024, primarily due to the decrease in temporary holiday stores [21] Company Strategy and Development Direction - The company is focused on executing its path forward plan, which aims to simplify the business, improve operational performance, and reduce leverage [6] - A new structure has been implemented to streamline leasing teams and enhance collaboration across departments [9] - The company is targeting $2 billion in asset sales and loan givebacks to strengthen its balance sheet [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing progress and the overall execution of the path forward plan, indicating that they are ahead of schedule [6][19] - Minimal impact from tariffs has been observed, with retailers continuing to honor their leases [15][44] - Future same store NOI growth is expected to be in the 3% to 4% range for 2026, with higher growth anticipated in 2027 and 2028 [62] Other Important Information - The company has completed $1.1 billion in dispositions to date and is on track to achieve its $2 billion target [39] - The redevelopment of Green Acres is set to begin, with strong demand and pre-leasing activity [30] - The company anticipates realizing approximately $25 million from its current $80 million signed not open (SNO) pipeline in 2025 [29] Q&A Session Summary Question: Potential upside on leasing due to recent news - Management noted minimal pullback from tenants and strong leasing metrics, indicating no significant change in upside [44][45] Question: Clarification on SNO pipeline - The $80 million SNO pipeline is incremental over revenue from 2024, with $25 million expected to be realized in 2025 [46] Question: CapEx spending trends - Spending on leases is trending slightly higher than initially envisioned, with major uplifts in FFO and EBITDA expected in 2027 and 2028 [50][51] Question: Success of new deals - The new organizational structure has contributed to a significant increase in new leasing activity, with a focus on high-quality tenants [53][54] Question: Same store NOI growth expectations - Management expects same store NOI to grow in the 3% to 4% range for 2026, with higher growth in subsequent years [62] Question: Clarification on renewal leasing spread statistics - The renewal spread statistics reflect different metrics, with the 1% figure being more appropriate for same space renewals [88][90] Question: Details on same store revenues and expenses - Operating expenses increased, but revenue generation offset these increases, with further details expected in future disclosures [97][99]