Financial Data and Key Metrics Changes - Real estate FFO was $3.22 per share in Q3 2025, up from $3.05 in the prior year, reflecting a 5.6% growth [10] - Domestic NOI increased by 5.1% year-over-year for the quarter and 4.2% for the first nine months of the year [10] - Third quarter funds from operation were $1.23 billion, or $3.25 per share, compared to $1.07 billion, or $2.84 per share last year [11][12] - The company ended the quarter with approximately $9.5 billion of liquidity [12] - The dividend announced for Q4 is $2.20 per share, a year-over-year increase of $0.10, or 4.8% [12] Business Line Data and Key Metrics Changes - The Malls and Premium Outlets ended Q3 at 96.4% occupancy, an increase of 40 basis points sequentially and 20 basis points year-over-year [11] - The Mills achieved a 99.4% occupancy, an increase of 10 basis points sequentially and 80 basis points from the prior year [11] - Retailer sales per square foot for the Malls and Premium Outlets were $742 for the quarter, with total sale volumes increasing more than 4% in Q3 [11] Market Data and Key Metrics Changes - The company signed over 1,000 leases totaling approximately 4 million square feet during the quarter, with about 30% representing new deals [10] - Strong demand was noted across the portfolio, particularly in luxury and athleisure categories, with a robust back-to-school season contributing to sales growth [36] Company Strategy and Development Direction - The acquisition of the remaining 12% interest in Taubman Realty Group was completed, enhancing operational efficiency and increasing NOI from the assets [7][8] - The company is pursuing new growth and value creation opportunities, with a development pipeline of $1.25 billion and a blended yield of 9% [9] - The company is focused on improving the merchandising mix and enhancing tenant quality across its portfolio [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to produce comparable NOI growth in 2026, citing positive internal reports and external factors [44][46] - Concerns were raised about the potential impact of tariffs on smaller retailers, but overall leasing demand remains strong [50][52] - Management noted that while luxury properties are performing well, some tourist-oriented centers, particularly in Las Vegas, are underperforming [38] Other Important Information - The company completed a dual tranche U.S. senior note offering totaling $1.5 billion at a combined average term of 7.8 years and a weighted average coupon rate of 4.8% [12] - The company is exploring the use of AI to enhance customer engagement and operational efficiency [75][77] Q&A Session Summary Question: Can you share specifics on operational efficiencies from the Taubman assets? - Management highlighted the elimination of public company costs and the integration of operational expertise to enhance cash flow and occupancy levels [19][20] Question: How do you view the cap rate of the final 12% of Taubman? - Management clarified that the cap rate is expected to improve due to operational synergies and intrinsic growth of the portfolio [28][29] Question: Can you provide details on sales results and tenant performance? - Management noted widespread increases in sales across all platforms, with luxury and athleisure categories performing particularly well [36][38] Question: What are your thoughts on the impact of tariffs on retailers? - Management acknowledged that tariffs may impact smaller retailers more significantly, but overall leasing demand remains strong [50][52] Question: How do you prioritize capital allocation? - Management indicated a focus on growing dividends, buybacks, and development opportunities, with a particular emphasis on maintaining a strong balance sheet [106][110]