Involvement with Express
Q: Will you invest in Express and what's your brand strategy?
A: SPG was approached to participate in the turnaround of Express with no capital investment expected. They see value in the brand and believe they can add expertise without contributing capital, aiming to save jobs and create value. They don't expect any earnings volatility from this involvement. " , "

Same-Store Sales Guidance
Q: Is your same-store sales growth guidance still achievable?
A: Despite some unanticipated pressures like retailer bankruptcies, SPG remains confident in achieving their initial same-store growth guidance of at least 3% for the year. They believe they can deliver on this goal without needing to update it every quarter. "

Navigating Macro Slowdown
Q: How would you handle a potential macroeconomic slowdown?
A: While not immune to macroeconomic factors, SPG believes they do their best work during tough times. With $11 billion in liquidity, they feel prepared to capitalize on opportunities and further separate from peers if a slowdown occurs. "

Capital Allocation and Cash Use
Q: How will you use the cash from the ABG sale?
A: After generating $1.45 billion from the ABG sale, SPG currently plans to hold the cash or pay down debt. No redeployment is contemplated in their guidance, but they are open to opportunities. They consider stock buybacks an appropriate use of capital at certain levels. " , "

JCPenney Outlook and Charges
Q: What's the outlook for JCPenney and related charges?
A: SPG took $33 million in pre-tax charges related to personnel and inventory adjustments at SPARC and JCPenney. Most JCPenney stores are positive EBITDA, and SPG doesn't anticipate significant store closures. They have opportunities to reclaim certain spaces for redevelopment, as per agreements from the bankruptcy process. " , "

Development Opportunities
Q: Are you pursuing new development and acquisitions?
A: With stabilized interest rates, SPG feels confident proceeding with approximately $500 million in development starts, primarily focused on mixed-use projects. They see external opportunities ahead but will prioritize investments that add cash flow growth without taking their eye off existing portfolio operations. "

Luxury Initiatives
Q: What's your plan for luxury offerings and VIP suites?
A: SPG aims to enhance services for high-income consumers by expanding luxury VIP suites and improving dining and retail mixes in about 20 to 25 key properties. They want to create special experiences to cater to the very high-end segment and maintain strong relationships with top retailers. "

Retail Investment Volatility
Q: How do you balance retailer investments and earnings volatility?
A: SPG focuses on return on investment while understanding the impact on their overall business. They view volatility as marginal and believe their retailer investments have generated significant cash, such as the $1.45 billion from the ABG sale. They consider each investment individually and are open to opportunities that add value without causing undue volatility. "

Sales Trends and Tenant Impact
Q: How are sales per square foot trending, excluding certain tenants?
A: Total portfolio sales were up 2.3%, but when excluding two unnamed underperforming retailers, sales per square foot over the last 12 months were down 1.8%. SPG focuses on total volume and prefers not to name specific tenants. "

Categories Driving Demand
Q: Which categories are most in demand in your malls?
A: Demand is broad-based, including restaurants, entertainment, athleisure, sports-related retailers, and big-box stores like Zara. High-income brands and dining options are performing well, indicating strong consumer interest across categories. "