Craig Mailman

Skeptically asked how buyers make deals pencil on IRR amid sticky rates and compressing cap rates. Management pivoted to the micro, arguing capital now recognizes value-add retail beyond triple-net and grocery-anchored formats.

Q1-to-Q2 FFO bridge and nonrecurring items identification

Tax efficiency of asset sales and special dividend potential

CEO targeting ~9% unlevered IRRs on acquisitions, noting historical performance has exceeded targets. What they buy has higher IRRs than what they sell, even before cap rate differentials.

CFO confirmed $250M in market, $150M under contract. Would consider buybacks at the right price but bias remains growing the company through acquisitions/development.

CEO confirmed appetite for large mixed-use but emphasized IRR discipline regardless of format. Joint venture partnerships possible for bigger acquisitions; balance sheet approach remains balanced.

Eli said the balance sheet with $9.3 billion of liquidity lets them do development, buybacks and accretive acquisitions, but they will not chase deals just to add scale, citing the Brickell acquisition's year-one yield running over 100 basis points above underwriting.

Significant capital excess capacity. Human resources can be added accretively. Main constraint is local municipality approval timelines. Under 5x levered with 1 turn = $6B+ capacity.

David said A assets have higher demand but making a lot of progress in Bs. Leasing is an art, not pricing power. Class B getting easier to lease than 12 months ago. Southdale cited as B-to-A transformation.

David said value center traffic up but conversion lagging. Low OCRs and strong demand. Outlet consumer more cautious. Lower gas prices could help. More juice left in the orange.

David said still cautious. 2026 may feel better once tariff costs are absorbed. Brian noted raising bottom end is consistent with their history at this point in the year.

David praised de-minimis elimination. Said retailers have about a month to decide on China Q4 inventory. No material pull-forward seen in SPG data. European retailers unaffected.

Conor cited 5% then 6%+ FFO growth over the past two years and multiple levers (SNO pipeline, 14,000 entitlements, margin); Glenn clarified the dividend-vs-FFO base math.

Jamieson prioritized cash flow over occupancy. May create vacancy to add grocery given 15 active projects with 25% small shop rent premiums. Flynn emphasized economic occupancy lift improving margins, triple net recovery, and free cash flow in early innings.

Cooper confirmed AFFO analysis incorporates CapEx and leasing costs on multitenant acquisitions. Rent increases and growth from recycled assets far outweigh additional capital needs. AFFO should continue to be positive and growing.

Teichman described multidisciplinary approach with ROI-focused investment calculus. Three focus areas: robotic process automation and agentic AI governance, proprietary data visualization tool, and internal natural language chatbot using OpenAI GPT models.

Cooper outlined match-funding strategy through ground lease dispositions and entitlement monetization. No additional equity planned. $15-25M structured investment check sizes. Cohen noted $140M free cash flow after dividends and CapEx.

Palmer affirmed sustainability and credited team experience, relationships, and cost of capital, but did not address how falling cap rates change replacement cost rent math.

Mike clarified guidance is spend not starts. Nick cited $800M+ started over last 3 years with $1B+ expected over next 3. Raised spend expectations based on higher anticipated starts. Continued upward momentum in pipeline sourcing.

Alan refused to cap shop occupancy upside, grew 70 bps YoY despite being at peak. Proactive leasing of occupied space driven by merchandising upgrades and rent growth. Amazon term fees TBD on case-by-case basis. Mike clarified no term fees in guidance.

Alan attributed the leased-rate dip to 10 Rite Aid boxes returned in Q3. Sees anchor upside (98% leased, pipeline includes Five Below, HomeGoods, Ulta). Mike noted all debt forms considered.

Lisa emphasized the A rating is intentional for offensive capacity. Development remains best use of free cash flow; compelling acquisitions will be acted on.

Arndt would not break down by project but described small handful of starts feeling relatively imminent given stage of leasing. Expects starts this quarter and certainly in first half. 40% of overall $4 billion to $5 billion owned and managed range expected in data center. Opportunity to outperform in both logistics and data centers. Logistics starts still below strong run rate with improving spec environment. Data center could rise if more turnkey format chosen given higher appetite from customers. Letter added $42 billion of opportunity in land bank with nearly 40% ready to go.

Arndt said DC growth framing as same-store not how they think about it. Focus on value creation reinvestment back into core business. May retain some interest from capitalization exploration but contributions to base rent and same-store will be relatively small. All investments viewed from total return and value creation perspective. On occupancy said market at seven and a half percent vacant today expected to hang here as demand normalizes over coming years presenting recovery opportunity. Enter this phase at substantially lower market vacancy compared to prior cycles by hundreds of basis points setting up rent dynamic and optimism.

Referenced in Moghadam response to Blaine where he described differential between markets where tenants comfortable versus choppy and how FOMO can change dynamics very quickly. Moghadam emphasized taking full picture approach looking at lease signings pipeline build-to-suit dialogues and customer engagement together rather than any single metric.