Financial Data and Key Metrics Changes - The company reported record real estate funds from operations (FFO) of $4.8 billion, or $12.73 per share, reflecting strong financial performance [6] - Real estate FFO for the fourth quarter was $3.49 per share, a 4.2% increase from $3.35 in the prior year [11] - Domestic property net operating income (NOI) grew 4.8% year-over-year for the quarter and 4.4% for the year [11] - Portfolio NOI, including international properties at constant currency, grew 5.1% for the quarter and 4.7% for the year [11] - The company returned approximately $3.5 billion in cash to shareholders through stock repurchases and dividends [6] Business Line Data and Key Metrics Changes - The company signed over 1,300 leases totaling over 4.4 million square feet during the quarter, with more than 4,600 leases for over 17 million square feet for the year [8] - Approximately 30% of annual leasing volume consisted of new deals, indicating strong demand across the portfolio [8] - Average base minimum rents increased by 4.7% year-over-year for malls and premium outlets, with the addition of TRG properties contributing approximately 250 basis points to this growth [12] Market Data and Key Metrics Changes - Malls and premium outlets ended the year with an occupancy rate of 96.4%, while mills reached 99.2% [11] - Retailer sales per square foot for malls and premium outlets were $799 for the year, with total sales volumes growing approximately 4% in the fourth quarter and 3% for the full year [12] Company Strategy and Development Direction - The company acquired $2 billion of high-quality retail properties and completed over 20 major redevelopment projects [5][6] - The development pipeline now exceeds $4 billion, with a blended yield of 9% [10] - The company plans to enhance the merchandise mix and invest in capital upgrades at former TRG assets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong occupancy, shopper traffic growth, and healthy retail sales, despite potential headwinds from tariffs affecting retailers [25][42] - The company expects real estate FFO of $13-$13.25 per share for 2026, with domestic property NOI growth of at least 3% [14] - Management noted that the retail demand remains strong, with a 15% increase in the leasing pipeline compared to the previous year [18] Other Important Information - The company completed approximately $9 billion in financing activities during 2025, maintaining a strong balance sheet with over $9 billion in liquidity [13] - The company paid more than $3.2 billion in common stock dividends and repurchased over 1.2 million shares [14] Q&A Session Summary Question: Details on leasing side and rent comparisons - Management indicated that new rents on leases are approximately $65 per square foot, with a 15% increase in the leasing pipeline year-over-year [17][18] Question: Early observations on the Simon Plus loyalty program - Management reported positive adoption and engagement from customers and brands, with expectations for continued growth in 2026 [20][22] Question: Insights on tenant credit and bad debt - Management acknowledged tariff pressures affecting retailers, with cautious expectations for tenant credit in 2026 [24][25] Question: Expected NOI or FFO from redevelopment projects - Management projected about $30 million contribution in 2026 from projects that are expected to stabilize [34] Question: Factors driving FFO guidance range - Management noted that sales growth could provide significant upside, with a conservative approach to budgeting [57][58] Question: Institutional appetite for higher productivity malls - Management indicated a status quo in partner investments, with no rush to buy in or out [100] Question: Expectations for luxury retail demand - Management noted mixed signals from luxury brands, with some showing growth while others are more cautious [104][106]