Q4 2025 Macerich Co Earnings Call

February 18, 2026

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Q4 2025 Macerich Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Alexandra Johnstone, Vice President of Finance and Investor Relations. Please go ahead.

Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone; you will then hear an automated message advising your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Alexandra Johnstone, Vice President of Finance and Investor Relations; please go ahead.

Speaker #2: Thank you for joining us on the fourth quarter 2025 earnings call. During this call, we will make certain statements that may be deemed forward-looking within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, including statements regarding projections, plans, or future expectations.

Alexandra Johnstone: Thank you for joining us on our Q4 2025 earnings call. During this call, we will make certain statements that may be deemed forward-looking within the meaning of the Safe Harbor of the Private Securities Litigation Reform Act of 1995, including statements regarding projections, plans, or future expectations. Actual results may differ materially due to a variety of risks and uncertainties set forth in today's earnings results, supplemental, and our SEC filings. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the supplemental filed on Form 8-K with the SEC, which is posted in the Investors section of the company's website at macerich.com. Joining us today are Jackson Hsieh, President and Chief Executive Officer, Dan Swanstrom, Senior Executive Vice President and Chief Financial Officer, and Doug Healey, Senior Executive Vice President of Leasing.

Speaker #2: Actual results may differ materially due to a variety of risks and uncertainty set forth in today's earnings results supplemental and our SEC filings. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the supplemental filed on Form 8K with the SEC, which is posted in the investor section of the company's website at macerich.com.

Speaker #2: Joining us today are Jack Shea, President and Chief Executive Officer; Dan Swanstrom, Senior Executive Vice President and Chief Financial Officer; and Doug Healey, Senior Executive Vice President of Leasing.

Speaker #2: And with us in the room is Brad Miller, Senior Vice President of Portfolio Management. With that, I would like to turn the call over to Jack.

Alexandra Johnstone: With us in the room is Brad Miller, Senior Vice President of Portfolio Management. With that, I would like to turn the call over to Jack.

Speaker #3: Thank you, Alexandra. And good afternoon, and thank you for joining us. Before I begin, I want to thank the entire MAC team for their outstanding contributions throughout 2025.

Jackson Hsieh: Thank you, Alexandra, and good afternoon, and thank you for joining us. Before I begin, I want to thank the entire MAC team for their outstanding contributions throughout 2025. This was a year of significant execution and progress, made possible by the dedication and hard work of our people across the organization.... 2025 was a pivotal year for the company. We entered the year with clear objectives under our Path Forward plan: simplifying the business, driving operational performance improvement, and reducing leverage. I'm pleased to report that we've delivered against each of these pillars. Today, I'll spend time on our operational performance and leasing achievements, and then turn it over to Doug and to Dan to discuss the portfolio and balance sheet in more detail. Let me start with leasing, which continues to be the engine driving our Path Forward plan.

Speaker #3: This was a year of significant investigation and progress made possible by the dedication and hard work of our people across the organization. 2025 was a pivotal year for the company.

Speaker #3: We entered the year with clear objectives under our Path Forward plan: simplifying the business, driving operational performance improvement, and reducing leverage. I'm pleased to report that we delivered against each of these pillars.

Speaker #3: Today, I'll spend time on our operational performance and leasing achievements, and then turn it over to Doug and to Dan to discuss the portfolio and balance sheet in more detail.

Speaker #3: Let me start with leasing. Which continues to be the engine driving our path forward plan. For the full year, we signed $7.1 million square feet of new and renewal leases on a comparable center basis.

Jackson Hsieh: For the full year, we signed 7.1 million sq ft of new and renewal leases on a comparable center basis, an 85% increase over full year 2024, setting a new company record. Turning to our leasing speedometer, which tracks revenue completion percentage for all new leasing activity required to achieve our five-year plan, we are at 76% today, exceeding our 2025 year-end target of 70%. This puts us well on track for a mid-2026 target of 85% and positions us to substantially complete our new leasing objectives by year-end 2026. Importantly, we are achieving our target market rent assumptions in the plan. Another way to look at how far along we are with leasing is in terms of the new deals left to sign in our five-year plan.

Speaker #3: An 85% increase over full year 2024, setting a new company record. Turning to our leasing speedometer, which tracks revenue completion percentage for all new leasing activity required to achieve our five-year plan, we are at 76% today.

Speaker #3: Exceeding our 2025 year-end target of 70%. This puts us well on track for our mid-2026 target of 85% and positions us to substantially complete our new leasing objectives by year-end 2026.

Speaker #3: Importantly, we are achieving our target market rent assumptions in the plan. Another way to look at how far along we are with leasing is in terms of the new deals left to sign in our five-year plan.

Speaker #3: We are tracking a total of approximately 1,000 new deals in this plan. We now have 650 new deals open executed or in lease documentation.

Jackson Hsieh: We are tracking a total of approximately 1,000 new deals in this plan. We now have 650 new deals open, executed, or in lease documentation. All that is remaining is 350 uncommitted new deals, totaling 1.6 million sq ft, of which 150 are in the letter of intent stage. Our signed not open pipeline has grown to approximately $107 million, exceeding our 2025 year-end target of $100 million. This is relative to our total cumulative SNO opportunity of approximately $140 million in excess of the revenue generated in 2024. We have high confidence in achieving the full opportunity.

Speaker #3: All that is remaining is 350 uncommitted new deals totaling $1.6 million square feet of which 150 are in the letter of intent stage. Our sign-not-open pipeline has grown to approximately 107 million, exceeding our 2025 year-end target of 100 million.

Speaker #3: This is relative to our total cumulative snow opportunity of approximately 140 million in excess of the revenue generated in 2024. We have high confidence in achieving the full opportunity.

Speaker #3: Of the $140 million of total SNOW, the estimated incremental annual contribution is $30 million in 2026, $40 to $45 million in 2027, and $45 to $50 million in 2028.

Jackson Hsieh: Of the $140 million of total SNO, the estimated incremental annual contribution is $30 million in 2026, $40 to 45 million in 2027, and $45 to 50 million in 2028. I'm excited about the progress we've made on our anchor initiatives. We targeted 30 anchor and big box replacements in our Path Forward plan, and I'm pleased to report that all 30 are now committed. We have 5 anchors open, 5 under construction, 11 executed, and 9 with leases out. Consistent with the update we provided with our Nareit presentation in December, these 30 anchors total 2.9 million sq ft and are expected to generate approximately $750 million in annual tenant sales. More importantly, they're expected to drive traffic, extend dwell time, and catalyze in-line leasing throughout our centers.

Speaker #3: I'm excited about the progress we've made on our anchor initiatives. We targeted 30 anchor and big box replacements in our path forward plan, and I'm pleased to report that all 30 are now committed.

Speaker #3: We have five anchors open, 500 under construction, 11 executed, and nine with leases out. Consistent with the update we provided with our May REIT presentation in December, these 30 anchors total 2.9 million square feet and are expected to generate approximately $750 million in annual tenant sales.

Speaker #3: More importantly, they're expected to drive traffic, extend dwell time, and catalyze in-line leasing throughout our centers. On the disposition front, we've made substantial progress toward our $2 billion goal.

Jackson Hsieh: On a disposition front, we've made substantial progress toward our $2 billion goals. We've completed $1.3 billion of total mall and outparcel sales transactions to date. The team is very focused on getting the remaining mall and outparcel sold. I want to spend a moment on Crabtree, which we acquired in June. We are on track with our renovation plans, and the new Dick's House of Sport store will open later this year. We were also pleased to see last month's announcement by Belk that they are consolidating their two locations at Crabtree into a full store remodel and long-term lease extension of their flagship location at the east end of the property.

Speaker #3: We've completed 1.3 billion of total mall and out-parcel sales transactions to date. The team is very focused on getting the remaining mall and out-parcel sold.

Speaker #3: I want to spend a moment on crab tree, which we acquired in June. We are on track with our renovation plans and the new Dix House of Sports store will open later this year.

Speaker #3: We are also pleased to see last month's announcement by Belk that they are consolidating their two locations in Crabtree into a full store remodel and long-term lease extension of their flagship location at the east end of the property.

Jackson Hsieh: Belk is a leading brand in the Carolinas, and their new store, with a wine and coffee bar, personal shopper studio, and other amenities, will complement the remerchandising and leasing initiatives we have underway. We have already secured a commitment for backfilling the second Belk's anchor store with an entertainment-oriented retailer. Along with a very productive Macy's store, this solidifies the asset. Additionally, with the inline space, we have commitments on 18 new and 31 renewal leases. While we've only owned the mall since June, I believe we've already demonstrated that the platform we've built can create value. We'll continue to look forward for additional opportunities to put our platform to work.

Speaker #3: Belk is a leading brand in the Carolinas and their new store with a wine and coffee bar, personal shopper studio, and other amenities will complement the remerchandising and leasing initiatives we have underway.

Speaker #3: We have already secured a commitment for backfilling the second Belk's anchor store with an entertainment-oriented retailer. Along with a very productive Macy's store, this solidifies the assets.

Speaker #3: Additionally, with the in-line space, we have commitments on 18 new and 31 renewal leases. While we've only owned the mall since June, I believe we've already demonstrated that the platform we've built can create value.

Speaker #3: We'll continue to look forward to additional opportunities to put our platform to work. The milestones we delivered in 2025—leasing volume well ahead of plan, all 30 anchors committed, $1.3 billion in dispositions completed—demonstrate that the path forward plan is no longer just a plan.

Jackson Hsieh: The milestones we delivered in 2025, leasing volume well ahead of plan, all 30 anchors committed, $1.3 billion in dispositions completed, demonstrate that the Path Forward plan is no longer just a plan. It's well along the way to completion across every pillar. As we enter 2026, I have tremendous confidence in our trajectory. The heavy lifting of de-risking the Path Forward plan is substantially complete. Our key focus areas for 2026 are, one, completing the leasing pipeline of 350 additional new leases, 150 are in the LOI stage. Two, solidifying the remaining 2026 lease expirations and continuing to get ahead of the 2027 expirations. Three, getting tenants into physical spaces built out and paying rent on time. Four, completing the remaining dispositions.

Speaker #3: It's well along the way to completion across every pillar. As we enter 2026, I have tremendous confidence in our trajectory. The heavy lifting of de-risking the path forward plan is substantially complete.

Speaker #3: Our key focus areas for 2026 are: one, completing the leasing pipeline of 350 additional new leases; 150 are in the LOI stage; two, solidifying the remaining 2026 lease expirations; and continuing to get ahead of the 2027 expirations.

Speaker #3: Three, getting tenants in a physical space built out and paying rent on time; four, completing the remaining dispositions; and five, continuing to evaluate new acquisition opportunities that are accretive to our plan and portfolio.

Jackson Hsieh: Five, continuing to evaluate new acquisition opportunities that are accretive to our plan and portfolio. Lastly, I want to note that we expect to provide an updated path forward plan 3.0 at REIT Week in June, and we intend to return to providing earnings guidance beginning in 2027. Doug, why don't you discuss the portfolio and leasing activity in more detail?

Speaker #3: Lastly, I want to note that we expect to provide an updated path forward plan 3.0 at REIT week in June, and we intend to return to providing earnings guidance beginning in 2027.

Speaker #3: Doug, why don't you discuss the portfolio and leasing activity in more detail?

Speaker #4: Thanks, Jack. Portfolio sales at the end of the fourth quarter were $881 per square foot. That's up $14 when compared to the last quarter, and this now represents a high watermark for the company dating back to when we went public in 1994.

Doug Healey: Thanks, Jack. Portfolio sales at the end of Q4 were $881 per sq ft. That's up $14 when compared to the last quarter, and this now represents a high watermark for the company, dating back to when we went public in 1994. When you look at our go-forward portfolio, sales were actually $921 per sq ft. Traffic for 2025 was flat when compared with the same period in 2024. Occupancy at the end of Q4 was 94%, up 60 basis points from the last quarter, with the majority of this increase coming from permanent occupancy versus temporary occupancy. The go-forward portfolio occupancy at the end of Q4 was 94.9%, also up 60 basis points from the last quarter.

Speaker #4: When you look at our go-forward portfolio, sales were actually $921 per square foot. Traffic for 2025 was flat when compared with the same period in 2024.

Speaker #4: Occupancy at the end of the fourth quarter was 94%, up 60 basis points from the last quarter, with the majority of this increase coming from permanent occupancy versus temporary occupancy.

Speaker #4: The go-forward portfolio occupancy at the end of the fourth quarter was 94.9%, also up 60 basis points from the last quarter. Trailing 12-month leasing spreads as of December 31st, 2025, were 6.7%, up 80 basis points from the last quarter, and this now represents 17 consecutive quarters of positive leasing spreads.

Doug Healey: Trailing twelve-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from the last quarter, and this now represents 17 consecutive quarters of positive leasing spreads. In Q4, we opened 416,000 sq ft of new stores for a total of 1.3 million sq ft for all of 2025. Most notably, we opened our first Dick's House of Sport store at Freehold Raceway Mall in the former Lord & Taylor box. Grand opening was one of the best in their 35-store chain, and the store continues to outperform all expectations. As a result, we've seen an increase in traffic, not only in their wing, but also in the mall overall. This has already had a positive effect on leasing space outside the Dick's location on both levels of the mall.

Speaker #4: In the fourth quarter, we opened 416,000 square feet of new stores, for a total of 1.3 million square feet for all of 2025. Most notably, we opened our first DICK'S House of Sports store at Freehold Raceway Mall in the former Lord & Taylor box.

Speaker #4: Grand opening was one of the best in their 35-store chain, and the store continues to outperform all expectations. As a result, we've seen an increase in traffic not only in their wing but also in the mall overall.

Speaker #4: And this has already had a positive effect on leasing space outside the Dix location on both levels of the mall. We remain very bullish about this concept.

Doug Healey: We remain very bullish about this concept. Of the 9 commitments we have with Dick's House of Sport, as mentioned, Freehold is now opened, and we currently have 4 additional stores under planning and/or under construction at Crabtree Valley Mall, Tysons Corner Center, Washington Square, and Valley River. Crabtree will open in the fall of this year. Tysons Corner and Washington Square will open in the fall of 2027, and Valley River will open in the spring of 2028. We're working on adding to this list, so stay tuned for more announcements in the very near future. As Jack mentioned, leasing was very strong in 2025. For the year, we signed 7.1 million square feet of new and renewal leases. This is 85% more square footage than we leased in 2024, and 2024 was a record year for us.

Speaker #4: Of the nine commitments we have with Dix House of Sport, as mentioned, Freehold is now open, and we currently have four additional stores under planning and/or under construction at Crabtree Valley Mall, Tyson's Corner Center, Washington Square, and Valley River.

Speaker #4: Crabtree will open in the fall of this year. Tyson's Corner and Washington Square will open in the the fall of 2027, and Valley River will open in the spring of 2028.

Speaker #4: And we're working on adding to this list, so stay tuned for more announcements in the very near future. As Jack mentioned, leasing was very strong in 2025.

Speaker #4: For the year we signed $7.1 million square feet of new and renewal leases. This is 85% more square footage than we leased in 2024, and 2024 was a record year for us.

Speaker #4: And it's important to note that, of these 7.1 million square feet, 30% were new lease signings. Turning to our lease expirations—2025 is behind us, and we're now focused on 2026.

Doug Healey: It's important to note that of these 7.1 million sq ft, 30% were new lease signings. Turning to our lease expirations, 2025 is behind us, and we're now focused on 2026. To date, we have commitments on 80% of our 2026 expiring square footage that is expected to renew and not close, with another 16% in the letter of intent stage. This is unprecedented for us this early in the year. To put it in perspective, at this time last year, we were only 63% committed for our 2025 renewals. So we can now focus on our 2027, and in some instances, our 2028 lease expirations. Being able to work this far into the future significantly de-risks the renewal portion of our five-year plan. The retailer environment and tenant demand remains strong.

Speaker #4: To date, we have commitments on 80% of our 2026 expiring square footage that is expected to renew and not close, with another 16% in the letter of intent stage.

Speaker #4: This is unprecedented for us this early in the year. To put it in perspective, at this time last year, we were only 63% committed for our 2025 renewals.

Speaker #4: So, we can now focus on our 2027, and in some instances, our 2028 lease expirations. Being able to work this far into the future significantly de-risks the renewal portion of our five-year plan.

Speaker #4: The retailer environment and tenant demand remain strong. In 2025, we reviewed and approved 40% more deals and 30% more square footage than we did in 2024.

Doug Healey: In 2025, we reviewed and approved 40% more deals and 30% more square footage than we did in 2024. It's early days, but thus far, we're on par with where we were last year at this time. Further to this point, in December, we attended the annual ICSC Leasing Conference in New York City. Approximately 10,000 landlords and retailers attended to talk about current and future business. In just two days, we had almost 300 meetings with over 200 different retailers looking to do business in our portfolio. All categories remain active, including traditional retailers, international retailers, entertainment, experiential, food and beverage, wellness, and emerging brands....

Speaker #4: It's early days, but thus far, we're on par with where we were last year at this time. Further to this point, in December, we attended the annual ICSE leasing conference in New York City.

Speaker #4: Approximately 10,000 landlords and retailers attended to talk about current and future business. In just two days, we had almost 300 meetings with over 200 different retailers looking to do business in our portfolio.

Speaker #4: All categories remain active, including traditional retailers, international retailers, entertainment, experiential, food and beverage, wellness, and emerging brands. And we continue to sign leases with some of the best brands in our industry.

Doug Healey: We continue to sign leases with some of the best brands in our industry, such as Apple, Zara, Aritzia, Lululemon, Alo Yoga, American Eagle, Abercrombie & Fitch, Gorjana, Edikted, and Warby Parker, just to name a few. As I've said in the past, never has the depth and breadth of retailer demand been what it is today. I think this speaks to not only the health of our industry, but also to our portfolio of pure-play Class A retail centers. With that, I'll turn the call over to Dan to go through our fourth quarter financial results.

Speaker #4: Such as Apple, Zara, Aritzia, Lululemon, Ello Yoga, American Eagle, Abercrombie & Fitch, Goriana, Edicted, and Warby Parker, just to name a few. As I've said in the past, never has the depth and breadth of retailer demand been what it is today.

Speaker #4: And again, I think this speaks to not only the health of our industry, but also to our portfolio of pure-play Class A retail centers.

Speaker #4: And with that, I'll turn the call over to Dan to go through our fourth quarter financial results.

Speaker #5: Thanks, Doug, and good afternoon. I'll start with a review of fourth quarter financial results. FFO excluding financing expense in connection with Chandler Freehold accrued default interest expense and gain on non-real estate investments was approximately $129 million, where 48 cents per share during the fourth quarter of 2025.

Dan Swanstrom: Thanks, Doug, and good afternoon. I'll start with a review of fourth quarter financial results. FFO, excluding financing expense in connection with Chandler Freehold, accrued default interest expense, and gain on nonreal estate investments, was approximately $129 million, or $0.48 per share during the fourth quarter of 2025. I would like to highlight the following item included in our FFO adjusted for the quarter. Legal claims settlement income of $16.1 million, partially offset by corporate expenses related to annual incentive bonus payouts above target levels, which resulted in an $8.4 million net impact, or $0.03 per share. Go forward portfolio centers NOI, excluding lease termination income, increased 1.7% in the fourth quarter of 2025 compared to the fourth quarter of 2024.

Speaker #5: I would like to highlight the following item and include it in our FFO adjusted for the quarter: legal claims settlement income of $16.1 million, partially offset by corporate expenses related to annual incentive bonus payouts above target levels, which resulted in an $8.4 million net impact, or $0.03 per share.

Speaker #5: Go-forward portfolio centers NOI excluding lease termination income increased $1.7% in the fourth quarter of 2025 compared to the fourth quarter of 2024. For 2025 full year, the go-forward portfolio centers NOI increased $1.8% compared to 2024.

Dan Swanstrom: For 2025 full year, the go-forward portfolio centers NOI increased 1.8% compared to 2024. Turning to the balance sheet, we continue to make strong progress on the balance sheet initiatives contained in our Path Forward plan. 2025 was an incredibly productive year by the team with transaction and financing activities. We have now closed on approximately $1.3 billion in dispositions, reduced leverage by a full turn lower, and addressed each of our 2025 debt maturities, as well as a substantial portion of our 2026 debt maturities. Earlier this month, we closed on a 4-year loan extension through November 2029 on our South Plains property. This $200 million loan extension was completed at the existing interest rate of approximately 4.2%.

Speaker #5: Turning to the balance sheet, we continue to make strong progress on the balance sheet initiatives contained in our path forward plan. 2025 was an incredibly productive year by the team with transaction and financing activities.

Speaker #5: We have now closed on approximately $1.3 billion in dispositions, reduced leverage by a full turn, and addressed each of our 2025 debt maturities, as well as a substantial portion of our 2026 debt maturities.

Speaker #5: Earlier this month, we closed on a four-year loan extension through November 2029 on our South Plains property. This $200 million loan extension was completed at the existing interest rate of approximately 4.2%.

Speaker #5: We're continuing to proactively address our remaining 2026 debt maturities through a combination of potential asset sales, refinancings, loan modifications, or, if necessary, property give-backs.

Dan Swanstrom: We're continuing to proactively address our remaining 2026 debt maturities through a combination of potential asset sales, refinancings, loan modifications, or, if necessary, property givebacks. With respect to our Twenty-Ninth Street property, this $76 million loan at the company's pro rata share is now in default after its recent maturity date. As we are currently in discussions with the lender on the terms of this loan, we do not have any additional commentary at this time. We currently have approximately $990 million in liquidity, including $650 million of capacity on our revolving line of credit. From a leverage perspective, net debt to EBITDA at the end of Q4 was 7.78x, which is a full turn lower than at the outset of the Path Forward plan.

Speaker #5: With respect to our 29th Street property, this $76 million loan at the company's pro rata share is now in default after its recent maturity date.

Speaker #5: As we are currently in discussions with the lender on the terms of this loan, we do not have any additional commentary at this time.

Speaker #5: We currently have approximately $990 million in liquidity, including $650 million of capacity on our revolving line of credit. From a leverage perspective, net debt to EBITDA at the end of the fourth quarter was 7.78 times, which is a full turn lower than at the outset of the Path Forward plan.

Speaker #5: And importantly, we've outlined our strategy to further reduce leverage to the low to mid six-times range over the next couple of years. We are making substantial progress in executing on dispositions as part of the Path Forward plan.

Dan Swanstrom: Importantly, we've outlined our strategy to further reduce leverage to the low- to mid-6x range over the next couple of years. We are making substantial progress in executing on dispositions as part of the Path Forward plan. As previously announced, during Q3, we closed on the sale of three retail centers for approximately $425 million. During Q4, we closed on the sale of various outparcels and land for $42 million, which included the sale of the retail strip center at Washington Square for $26 million. Year to date, we have closed on the sale of additional outparcels and land for $15 million. These sales transactions are consistent with our stated disposition plan to improve the balance sheet and refine the portfolio. We have identified a clear path to achieving our $2 billion disposition target.

Speaker #5: As previously announced during the third quarter, we closed on the sale of three retail centers for approximately $425 million. During the fourth quarter, we closed on the sale of various out parcels and land for $42 million, which included the sale of the retail strip center at Washington Square for $26 million.

Speaker #5: Year to date, we have closed on the sale of additional out parcels and land for $15 million. These sales transactions are consistent with our stated disposition plan to improve the balance sheet and refine the portfolio.

Speaker #5: We have identified a clear path to achieving our $2 billion disposition target. To date, we have again completed approximately $1.3 billion in total dispositions, and the disclosure we've provided in our supplement includes a summary of these asset dispositions.

Dan Swanstrom: To date, we have again completed approximately $1.3 billion in total dispositions, and the disclosure we've provided in our supplement includes a summary of these asset dispositions. We have also identified several additional legacy assets totaling $200 to 300 million for sale or give back over the next year or so, which would increase total dispositions to the $1.5 to 1.6 billion range. One of these assets is La Cumbre Plaza, which is now under contract for approximately $11 million. This asset is unencumbered. The ongoing sales of certain outparcels and land represent the remaining $400 to 450 million of dispositions to achieve our total $2 billion disposition target. We currently have approximately $15 million in additional outparcel and land sales under contract for sale and over $50 million in various stages of negotiation.

Speaker #5: We have also identified several additional EDI assets totaling $200 to $300 million for sale or give-back over the next year or so, which would increase total dispositions to the $1.5 to $1.6 billion range.

Speaker #5: One of these assets is La Cumbre Plaza, which is now under contract for approximately $11 million. This asset is unencumbered. The ongoing sales of certain out parcels and land represent the remaining $400 to $450 million of dispositions to achieve our total $2 billion disposition target.

Speaker #5: We currently have approximately $15 million in additional out parcel and land sales under contract for sale, and over $50 million in various stages of negotiation.

Speaker #5: We'll provide further updates on our disposition activities as we progress through the year. In conclusion, we are making great progress on our path forward plan objectives to reduce leverage, refine the portfolio, and strengthen the balance sheet.

Dan Swanstrom: We'll provide further updates on our disposition activities as we progress through the year. In conclusion, we are making great progress on our Path Forward plan objectives to reduce leverage, refine the portfolio, and strengthen the balance sheet. With that, we'll turn the call over to the operator.

Speaker #5: With that, we'll turn the call over to the operator.

Doug Healey: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We ask that you please limit to one question and one follow-up.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We ask that you please limit to one question and one follow-up.

Speaker #6: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker #6: We ask that you please limit to one question and one follow-up. The first question comes from Vince Tibone with Green Street. Line is now open.

Operator: ... The first question comes from Vince Tibone with Green Street. Line is now open.

Vince Tibone: Hi, good afternoon. You mentioned that you continue to evaluate acquisition opportunities. Could you just discuss kind of what types of properties would be, you know, most likely acquisition candidates for Macerich over the near term? Like, are you looking for more value add deals like Crabtree, where it can be, you know, immediately earnings accretive as well? Or would you consider, you know, stabilized higher quality centers that would have lower cap rates, probably, you know, 7 or lower, just to add to the value of the portfolio? Curious how you're thinking about, you know, just the acquisition landscape and most likely, you know, acquisition opportunities near term.

Speaker #7: Hi, good afternoon. You mentioned that you continue to evaluate acquisition opportunities. Could you just discuss kind of what types of properties would be most likely acquisition candidates for Mace Rich over the near term, like are you looking for more value-add deals like Crabtree where it can be immediately earnings accretive as well?

Speaker #7: Or would you consider stabilized higher quality centers that would have lower cap rates probably seven or lower just to add to the value of the portfolio?

Speaker #7: Curious how you're thinking about just the acquisition landscape, and most likely acquisition opportunities near term.

Jackson Hsieh: Good. Thanks, Vince. It's Jackson. Good. Thanks for joining the call. I'd say primary focus is obviously to make sure that if we do an acquisition, it's, it's accretive to our 2028 FFO plans and targets. So that's first and foremost. Second is that we believe that it fits within the portfolio metrics of our, of our current portfolio and ranks well within it. I would say at least the short to medium term, it probably looks like more value add kinds of opportunities that we're focused on. You know, Crabtree is a great example because it's really a releasing or a lease-up value add opportunity versus a, what I call a redevelopment opportunity.

Speaker #8: Okay. Thanks, Vince. It's Jackson. Thanks for joining the call. I'd say primary focus is obviously to make sure that if we do an acquisition, it's accretive to our 2028 FFO plans and targets.

Speaker #8: So that's first and foremost. Second is that we believe it fits within the portfolio metrics of our current portfolio and ranks well within it.

Speaker #8: I would say at least the short to medium term, it probably looks like more value-add kinds of opportunities that we're focused on. Crabtree is a great example because it's really a releasing or a lease-up value-add opportunity versus what I call a redevelopment opportunity.

Jackson Hsieh: I'd say with our current cost of capital, you know, to chase stabilized, you know, call it 7 and below kinds of yield assets, we're not likely to do it on our own. It might be different if we had a capital partner, but for now, you know, we're principally gonna focus on, you know, those value add lease-up opportunities. And just to note, you know, we brought on David Keane. He joined a couple of weeks ago from, he was formerly at Washington Prime Group and spent many years over at General Growth Properties in the acquisition area. And we're excited to have David. He's already participated in our property review quarterly process and was at our board meeting recently and is actually touring assets as we speak.

Speaker #8: I'd say with our current cost of capital, to chase stabilized call it seven and below kinds of yield assets, we're not likely to do it on our own.

Speaker #8: It might be different if we had a capital partner, but for now, we're principally going to focus on those value-add lease-up opportunities. And just to note, we brought on David Keene.

Speaker #8: He joined a couple of weeks ago. He was formerly at Washington Prime Group and spent many years over at General Growth Properties in the acquisitions area.

Speaker #8: And we're excited to have David. He's already participated in our property review quarterly process and was on our board meeting recently, and is actually touring assets as we speak.

Vince Tibone: No, that, that's a tough call on the acquisition side. Just on... If you, you know, were to find a deal of, say, similar size to Crabtree, is it fair to assume you would issue equity, or would you potentially ramp, you know, dispositions beyond the $2 billion to make it leverage neutral? Just how would you-- what would be the most likely funding source if you were to, you know, find a sizable deal that you wanted to move forward with?

Speaker #9: No, that's all helpful color on the acquisition side. Just, if you were to find a deal—let's say similar in size to Crabtree—is it fair to assume you would issue equity, or would you potentially ramp up dispositions beyond the $2 billion to make it leverage-neutral?

Speaker #9: Just how would you—what would be the most likely funding source if you were to find a sizable deal that you wanted to move forward with?

Speaker #8: I mean, I'd say selling properties to buy properties—I think we've gotten, more candidly, more inbound interest from capital partners to do transactions with on the acquisition side. One thing we said is we want to simplify the business.

Jackson Hsieh: I mean, I'd say, you know, selling properties to buy properties, you know, I think we've gotten more, candidly, more inbound interest from capital partners to do transactions with on the acquisition side. You know, one thing we said is we want to simplify the business. So I think first choice would be issue equity, if it made sense from a cost capital standpoint. You know, obviously, we can't predict where, you know, our stock price will be, but probably that's our first preference. Second would be, you know, finding a capital partner that sees the asset and the strategy in the same way we do. And I'd say a very distant third would be recycling, you know, a property that we had to kind of bring that in.

Speaker #8: So I think first choice would be issue equity if it made sense from a cost-to-capital standpoint. Obviously, we can't predict where our stock price will be, but probably that's our first preference.

Speaker #8: Second would be finding a capital partner that sees the asset and the strategy in the same way we do. And I'd say a very distant third would be recycling a property—that we had to kind of bring that in.

Operator: Thank you. Our next question will come from Samir Khanal with Bank of America Securities. Line is open.

Speaker #6: Thank you. And our next question will come from Samir Khanal with Bank of America Securities line is open.

Speaker #10: Good afternoon. This is Andrew Real on for Samir. Thanks for taking our questions. It seems like there's a lot of tailwind from this leasing momentum.

Andrew Reale: Good afternoon. This is Andrew Reale on for Samir. Thanks for taking our questions. Seems like there's a lot of tailwind from this leasing momentum. So just given the strength of your leasing pipeline now, how should we start to think about the magnitude and timing of a growth inflection in the second half and even into 2027 at this point?

Speaker #10: So just given the strength of your leasing pipeline now, how should we start to think about the magnitude and timing of a growth inflection in the second half?

Speaker #10: And even into 2027 at this point?

Speaker #11: Yeah. Hey, Andrew. As we've talked about and Jack kind of outlined our snow pipeline, which has $30 million of estimated contribution in '26. I would note that is back-end weighted in '26 consistent with how we've talked about the second half inflection point.

Dan Swanstrom: Yeah. Hey, Andrew. As you know, as we've talked about, and Jack kind of outlined our, you know, our SNO pipeline, which, you know, has $30 million of estimated contribution in 2026. I would note that is back-end weighted in 2026, consistent with how we've talked about the second half inflection point. But I think the real power of the SNO pipeline, you can see in 2027 and 2028, you know, in terms of the dollar numbers that are coming through, in those years, $40 to 45 million in 2027, $45 to 50 million in 2028. So that kind of lines up with the inflection point, from a growth perspective.

Speaker #11: But I think the real power of the snow pipeline, you can see in '27 and '28, in terms of the dollar numbers that are coming through in those years, 40 to 45 million in '27, 45 to 50 million in '28.

Speaker #11: So that kind of lines up with the inflection point from a growth perspective.

Speaker #10: Okay. Thanks. And then just as a follow-up, it seems like holiday season was pretty strong. Could you just speak to the overall health of the consumer?

Andrew Reale: Okay, thanks. And then just, just as a follow-up, it seems like, you know, holiday season was pretty strong. Could you just speak to the overall health of the consumer, if performance has been consistent across the portfolio or if there's some bifurcation between the top and bottom of the quality spectrum? Thanks.

Speaker #10: If performance has been consistent across the portfolio, if there's some bifurcation between the top and bottom of the quality spectrum? Thanks.

Speaker #8: Yeah. I would say, if you think about our customer, we're definitely experiencing this K-shaped consumer. And I'd say, if you think about some of the retail green shoots that some of our tenants are talking about, obviously, this calendar year, we're going to have a higher tax refund going through to people in this country.

Jackson Hsieh: Yeah. I would say, like, you know, if you think about our customer, you know, we're definitely experiencing this pay shape consumer. And I'd say, you know, if you think about some of the retail green shoots that some of our tenants are talking about, you know, obviously this calendar year, we're going to have a higher tax refund going through, to people in this country. We have got the World Cup coming, which obviously will draw a lot more customer, more visitations in the US. You know, Summer Olympics in 2028.

Speaker #8: We've got the World Cup coming, which obviously will draw a lot more customer visitation to the U.S.—summer Olympics in '28. And actually, the kind of issue that SACS is going through, I think, is kind of an interesting opportunity as it relates to Macy's, Nordstrom, Dillard's—being able to really relook at how they're thinking about luxury items as well as just luxury demand.

Jackson Hsieh: Actually, you know, the kind of issue that Saks is going through, you know, I think is kind of an interesting opportunity as it relates to Macy's, Nordstrom, Dillard's, being able to really relook at how they're thinking about luxury items as well as just luxury demand, you know, in general. You know, as it relates to that upper portion of the K that we're primarily focused on, I think, in a lot of our tenancy on the inline. You know, if you look at our traffic for our go-forward portfolio in 2025, you know, it was up, you know, in the mid 1.5% range. Actually, I'm sorry, the traffic was up, like, just flat, basically up 20 basis points, but inline sales were up 1.5%.

Speaker #8: In general, as it relates to that upper portion of the K that we're primarily focused on, I think, in a lot of our tendency on the inline if you look at our traffic for a go-forward portfolio in 2025, it was up in the mid-one-and-a-half percent range.

Speaker #8: But if you really or actually, I'm sorry, the traffic was up just flat, basically up 20 basis points. But inline sales were up one and a half percent.

Speaker #8: But if you actually go down and looked at luxury, the luxury sales were up almost five and a half percent. So to me, I think that's a kind of early compelling sign of maybe what might be more coming in the future.

Jackson Hsieh: But if you actually delved down and looked at luxury, the luxury sales were up almost 5.5%. So to me, I think that's a kind of early compelling sign of maybe what might be more coming in the future. And look, I think we've spent, I've spent a lot of time with retailers, which is kind of new for me. But you know, they're very focused. They, they know consumers are spending, but super selectively. They acknowledge this bifurcated K economy with their different income tiers. But the one thing that's really consistent, you know, branding, fit, merchandising, innovation, that's a consistent theme that we hear from our retailer customers. You know, promotional items are really being more targeted. And I'd say overall, their outlook is cautious but constructive, and we're seeing that in our leasing.

Speaker #8: And look, I think we spent—I've spent—a lot of time with retailers, which is kind of new for me. But they're very focused.

Speaker #8: They know consumers are spending. But super selectively, they acknowledge this bifurcated K economy with their different income tiers. But the one thing that's really consistent, branding, fit, merchandising, innovation, that's a consistent theme that we hear from our retailer customers promotional items are really being more targeted and I'd say overall, their outlook is cautious, but constructive.

Speaker #8: And we're seeing that in our leasing. I mean, there's real demand for space right now that we have remaining. The thing that strikes me, which is so interesting, is the retail store—physical store—is still the most profitable lane for these retailers right now.

Jackson Hsieh: There's real demand for space right now that we have remaining. The thing that strikes me, which is so interesting, is, you know, the retail store, physical store is still the most profitable, you know, lane for these retailers right now. They have omnichannel, but their physical stores are their most profitable areas and lines of business. The fact that we have no real new supply in the kinds of real estate assets that we compete in, I think is good for what we're trying to do right now.

Speaker #8: They have Omni Channel, but their physical stores are their most profitable areas and lines of business. And the fact that we have no real new supply in the kinds of real estate assets that we compete in, I think, is good for what we're trying to do right now.

Operator: Thank you. Our next question will come from Michael Griffin with Evercore.

Speaker #6: Thank you. And our next question will come from Michael Griffin with Evercore.

Speaker #10: Great, thanks so much for taking the question. Just on the leasing pipeline—with 2026 derisked as much as it is—have you started maybe being able to actively maybe not renew a certain amount of space in hopes of capturing higher rents?

Michael Griffin: Great. Thanks so much for taking the question. Just on the leasing pipeline, you know, with 2026 de-risked as much as it is, have you started, you know, maybe being able to actively, you know, maybe not renew a certain amount of space in hopes of capturing higher rents? It just seems like with what feels like a lot more leverage that you might have on the leasing front. I'm just curious how you break down kind of the cost benefit between, you know, renewing a tenant, keeping them in place, versus, you know, actively taking that space back and trying to re-lease it at a higher rate.

Speaker #10: It just seems like, with what feels like a lot more leverage that you might have on the leasing front, I’m just curious how you break down the cost-benefit between renewing a tenant and keeping them in place versus actively taking that space back and trying to re-lease it at a higher rate.

Jackson Hsieh: That's a great question. You know, I would say overall, when we set up this plan, you know, we have 1,000 new leases. You know, we had pro forma market rents in there that, that are very specific to each space of these 1,000 that we talk about. And on the renewals, we pro forma positive spreads on those as well, right? So, so you have two levers trying to happen at the same time. You know, for us, and I'd say, like, the unfortunate thing is, you know, we've set a target out there in 2028. Time is kind of not our friend. And while we might be able to get more, if we start to lose time, you know, we might get more, but it'll come in, you know, through 2028.

Speaker #8: That's a great question. I would say overall, when we set up this plan, we have 1,000 new leases. We had pro forma market rents in there that are very specific to each space of these 1,000 that we talk about.

Speaker #8: And on the renewals, we pro forma positive spreads on those as well, right? So you have two levers trying to happen at the same time.

Speaker #8: For us, and I'd say the unfortunate thing is we've set a target out there in 2028. Time is kind of not our friend. And while we might be able to get more if we start to lose time, we might get more, but it'll come in through 2028.

Jackson Hsieh: We're trying to balance what we can get done today based on the pro formas that we've run to back up this path forward plans, versus trying to extract the very last dollar that's possible. I think your question is a really good one because I think, you know, we haven't really talked about what happens after 2028. If you think of the amount of investment that we're putting into these centers, the 30 anchors, when we start to really look at renewals from 2028, 2029, 2030, I think there's tremendous opportunity that we'll see that we've never really been able to see, say, over the last several years, just given how fully leased up these inline levels will be relative to historical standards.

Speaker #8: So we're trying to balance what we can get done today based on the pro formas that we've run to back up this path forward plan, versus trying to extract the very last dollar that's possible.

Speaker #8: And I think your question is a really good one because I think we haven't really talked about what happens after 2028. But if you think of the amount of investment that we're putting into these centers, the 30 anchors, when we start to really look at renewals from '28, '29, '30, I think there's tremendous opportunity that we'll see that we've never really been able to see say over the last several years, just given how fully leased up these inline levels will be relative to historical standards.

Speaker #10: Thanks, Jack. That's certainly some helpful context. And then maybe just one on external growth. You talked about acquisition potential opportunities earlier, but I'm curious if you've evaluated maybe other revenue streams, whether it's bridge lending, mezzanine financing, third-party management—just are there other levers you think you can pull, sort of on the revenue growth side, maybe outside of those potential external growth opportunities as it relates to acquisitions?

Michael Griffin: Thanks, Jack. That's certainly some helpful context. And then maybe just one on external growth. You talked about acquisition, you know, potential opportunities earlier. But I'm curious if you've evaluated maybe other revenue streams, whether it's, you know, bridge lending, mezz financing, third-party management. Just are there other levers you think you can pull sort of on the revenue growth side, you know, maybe outside of those, those potential external growth opportunities as it relates to acquisitions?

Jackson Hsieh: It's a great question because, you know, one thing that's I love about this business is there are very few people that can do it, you know, in terms of being able to do it in scale on a national basis. And while it'd be tempting to look at that, and clearly I've thought about it, I feel like the real, you know, the really, we're staying focused on what we're trying to do right now, which is a lot actually, and trying to incrementally add, you know, quality acquisitions into the company, I think is, at least for the near term, going to be where we're really focused. You know, we do have opportunity to do mezz and other structure because financing is very unique for this kind of asset base.

Speaker #8: It's a great question because one thing that I love about this business is there are very few people that can do it. In terms of being able to do it at scale, on a national basis—and while it’d be tempting to look at that, and clearly I’ve thought about it—I feel like the real key is staying focused on what we’re trying to do right now, which is a lot, actually, and trying to incrementally add quality acquisitions into the company. I think that, at least for the near term, is going to be where we’re really focused.

Speaker #8: We do have opportunity to do Mez and other structured because financing is very unique for this kind of asset base. But I think, like I said, in the short term, we'll stay focused on the pillars of the plan, which is right there in front of us for this year.

Jackson Hsieh: But I think, like I said, in the short term, we'll stay focused on the pillars of the plan, which is right there in front of us for this year.

Operator: Thank you. Our next question will come from Floris van Dijkum with Ladenburg. Your line is open. Floris, your line is now open.

Speaker #6: Thank you. And our next question will come from Floris Dijkum with Lattenberg. Your line is open. Floris, your line is now open.

Speaker #11: Excuse me. Is that better? Thank you for taking my question. I wanted to ask about the go-forward portfolio. Obviously, higher sales, better occupancy—presumably these are the assets you're going to be spending your capital on.

Floris Van Dijkum: Excuse me. Is that better? I thank you for taking my question. I wanted to ask about the go-forward portfolio. Obviously, higher sales, better occupancy, presumably these are the assets you're going to be spending your capital on. Could you maybe just give us a little bit more information? What percentage of total NOI does that portfolio represent today?

Speaker #11: Could you maybe just give us a little bit more information? What percentage of total NOI does that portfolio represent today?

Dan Swanstrom: Yeah. Hey, Floris, this is Dan. I'll refer you guys over to our supplement. If you kind of look at page seven, we've got NOI go-forward portfolio for the full year 2025 was $738 million, relative to NOI for all the centers of $841 million. So obviously, it represents a substantial majority and trending towards just the go-forward amounts.

Speaker #12: Yeah. Hey, Floris, this is Dan. I'll refer you guys over to our supplement. If you kind of look at page 7, we've got NOI go-forward portfolio for the full year 2025 was $738 million.

Speaker #12: Relative to NOI for all the centers of $841. So obviously, it represents a substantial majority, and trending towards just the go-forward amounts.

Speaker #11: Thanks. The other question is regarding your S&O pipeline. Maybe if you can give us a little bit more detail—what actual percentage of your square footage does that represent?

Floris Van Dijkum: Thanks. That's helpful. The other question is, regarding your S&O pipeline. Maybe if you can give us a little bit more details, what percentage of, you know, actual percentage of your square footage does that represent? And maybe also a little bit more information, and what percentage of that 107 million, which is again ahead of estimates, represents luxury? Jack, you mentioned luxury being, you know, having 5.5% sales growth. How much you know, expansion do you foresee in your portfolio on from that particular segment?

Speaker #11: And maybe also maybe a little bit more information. And what percentage of that $107 million, which is, again, ahead of estimates, represents luxury? Jack, you mentioned luxury having 5.5% sales growth.

Speaker #11: How much expansion do you foresee in your portfolio from that particular segment?

Speaker #8: I can start with the first part of the $107 million. It's not a large part to luxury. This is Brad, by the way. I mean, luxury is relatively a small part of our business, mostly at Scottsdale and a little bit at FOC.

Brad Miller: I can start with the first part on the $107 million. It's not a large part. So luxury... This is Brad, by the way. I mean, luxury is relatively a small part of our business at, you know, a little bit, and mostly at Scottsdale and a little bit at FOC.

Speaker #13: Yeah. Brad, I agree it's Doug, Floris. Our luxury really is in Scottsdale. It started in the Niemann Marcus wing, as you know, and given the demand we had once we finished the Niemann Marcus wing, we transitioned over to Nordstrom.

Dan Swanstrom: Yeah, Brad, I agree. It's Doug Floris. Our luxury really is in Scottsdale, started in the Neiman Marcus wing, as you know. And given the demand we had once we finished the Neiman Marcus wing, we transitioned over to Nordstrom and turned that into a luxury wing. And at this point, we're basically done. I think we're 90%, 91% committed, and most of those luxury retailers have already gone through the pipeline. If you think about Tiffany, who's opened, and Hermès that's opened, and Céline that's opened, there's very few left to open. They'll open the rest of this year and then few into 2027. So the luxury component is going to be probably a small percentage of the pipeline.

Doug Healey: Yeah, Brad, I agree. It's Doug Floris. Our luxury really is in Scottsdale, started in the Neiman Marcus wing, as you know. And given the demand we had once we finished the Neiman Marcus wing, we transitioned over to Nordstrom and turned that into a luxury wing. And at this point, we're basically done. I think we're 90%, 91% committed, and most of those luxury retailers have already gone through the pipeline. If you think about Tiffany, who's opened, and Hermès that's opened, and Céline that's opened, there's very few left to open. They'll open the rest of this year and then few into 2027. So the luxury component is going to be probably a small percentage of the pipeline.

Speaker #13: And turned that into a luxury wing. And at this point, we're basically done. I think we're 90% 91% committed. And most of those luxury retailers have already gone through the pipeline.

Speaker #13: If you think about Tiffany, who's opened, and Hermès that's opened, and Celine that's opened, there's very few left to open. They'll open the rest of this year.

Speaker #13: And then few into 2027. So the luxury component is going to be probably a small percentage of the pipeline.

Jackson Hsieh: I think, Floris, you know, you were asking about, you know, SNO. If you think about the SNO, that includes anchor stores and inline. I don't know if I'm answering your question the right way, but at least how I was thinking about it was, you know, we refer to 1,000 inline. We have about—that's about 20% to 25% of the entire inline population of our go-forward portfolio. If you think about just sheer numbers, we're effectively influencing about 20% to 25% of our inline floor plan. You think about the 30 anchors, you know, we're going to be able to see better leasing on the inline, as well as those 30 will drive traffic, traffic, and also rent. To me, like...

Speaker #8: And I think, Floris, you were asking about—so if you think about the snow, that includes anchor stores and inline. And I don't know if I'm answering your question the right way, but at least how I was thinking about it was, we refer to 1,000 inline.

Speaker #8: We have about that's about 20, 25 percent of the entire inline population of our go-forward portfolio. So if you think about just sheer numbers, we're effectively influencing about 25, 25% of our inline floor plan.

Speaker #8: Then you think about the 30 anchors, we're able to do better leasing on the inline as well, as those 30 will try and track traffic and also rent.

Speaker #8: And to me, and then if you look at the remaining 1.6 million square feet of that we talked about of new leases, the 350 uncommitted spaces, 90% of that space or 90% of that CLO is in A, B, and C-rated spaces.

Jackson Hsieh: If you look at the remaining 1.6 million sq ft of, that we talked about, of new leases, the 350, you know, uncommitted spaces, 90% of that space or 90% of that CLO is in A, B, and C-rated spaces. Another way to look at it is about two-thirds of it are in our fortress and fortress potential properties. These are not bad spaces that are left or rump spaces. These are high-quality spaces in our best centers. We're confident that we're going to get the rate. We're just trying to make sure we get the right tenant in there that's going to do the right thing for the center. You know, just stepping back, you know, why are we doing all this stuff?

Speaker #8: And another way to look at it is that about two-thirds of it are in our fortress and fortress potential properties. So these are not bad spaces that are left, or rump spaces.

Speaker #8: These are high-quality spaces. And our best centers so we're confident that we're going to get the rate. We're just trying to make sure we get the right tenant in there that's going to do the right thing for the center.

Speaker #8: And just stepping back, why are we doing all this stuff? We are seeing, like I said, anecdotal evidence. When we opened Shields down at Chandler Center in Arizona, Shields generated about a 21% increase in the mall traffic.

Jackson Hsieh: You know, we are seeing, like I said, anecdotal evidence. When we opened SCHEELS down at Chandler Center in Arizona, SCHEELS generated about a 21% increase in center, in the mall traffic, and it's continued to really be robust in that market. There's over $150 million in sales. If you walk with our leasing team in that wing, the before and after is quite tremendous in terms of how we're reimagining and re-leasing that wing. You know, at Tysons, as strong as Tysons is, in the fourth quarter, traffic was up 16% year-over-year because Level 99 opened, SKIMS opened, the Zara relocation happened, Edikted opened, Reformation, and Maggiano's all opened.

Speaker #8: And it's continued to really be robust in that market—those over $150 million in sales. And if you walk through our leasing team in that wing, the before and after is quite tremendous in terms of how we're reimagining and releasing.

Speaker #8: That wing at Tyson's, as strong as Tyson's is, in the fourth quarter, traffic was up 16% year over year because Level 99 opened. SKIMS opened.

Speaker #8: Bizarre Relocation happened. Addicted opened. Reformation and Mijano's all opened. So, it had an impact to the center, but we also have the entire west side of the property that has two major—one major restaurant and one very proven restaurant food retailer—that will drive tremendous traffic.

Jackson Hsieh: It had an impact to the center, but we also have the entire west side of the property that have two major—one major restaurant and one very proven restaurant food retailer that will drive tremendous traffic. Can't disclose the name yet, but as we continue to add these stores and units in, Dick's House of Sport on the north side, it's just going to have unprecedented ability to move traffic up. Finally, Doug talked about freehold. You know, freehold, right, that House of Sport just represents about 18% of mall traffic since it's opened. We're super excited. January is off to a great start, over the comp set. More to come as we continue—experience, like these new anchors opening, new concepts, new remerchandising happening, you know, in these centers.

Speaker #8: Can't disclose the name yet, but as we continue to add these stores and units in—Dick's House of Sport, and so on the north side—it's just going to have unprecedented ability to move traffic up.

Speaker #8: And then finally, Doug talked about Freehold. Freehold, right—that House of Sport just represents about 18% of mall traffic since it’s opened. And so, we’re super excited.

Speaker #8: January is off to a great start. Over the comp set. So more to come as we experience these new anchors opening, new concepts, and new remerchandising happening.

Speaker #8: In these centers. And so that's what's getting a lot of our customers excited on the retail front. It's helping us on the leasing.

Jackson Hsieh: And so that's what's getting a lot of our customers excited on the retail front, something that's on the leasing.

Operator: Thank you. And the next question will come from Hindel St. Just with Mizuho. Your line is open.

Speaker #1: Thank you. And the next question will come from Hindell St. Just with Mizuho, your line is open.

Speaker #11: Hey, guys. Thanks for taking the question, too. Quick ones from me here. First, I appreciate the color on the asset tail today and the discussions you have underway.

Haendel St. Juste: Hey, guys. Thanks for taking the question. Two quick ones from me here. First, I guess I appreciate the color on the asset sales to date and the discussions you have underway. Looks like you have, I think, $60 million of the remaining $400 to 500 million remaining dispositions under some level of discussion, but it also seems like we've been ± at these same levels for a little while now, a couple of quarters. So I'm curious, what's taking so long, and what's your expectations for some movement in the dispositions left to be done over the next year? Thanks.

Speaker #11: It looks like you have, I think, $60 million of the remaining $400 to $500 million remaining disposed, under some level of discussion. But it also seems like we've been plus or minus at the same levels for a little while now, a couple of quarters.

Speaker #11: So I'm curious, what's taking so long and what's your expectations for some movement in the disposed left to be done over the next year?

Speaker #11: Thanks.

Speaker #13: Yeah. Hey, Haendel, this is Daniel Swanstrom, and Jack can chime in. Appreciate the question. On the malls, we've got $200 to $300 million of remaining asset sales.

Dan Swanstrom: Yeah. Hey, Hindel, this is Dan. I'll start, and then Jack can chime in. Appreciate the question. You know, on the malls, we've got $200 to 300 million of remaining Eddie asset sales. And the timeline of that is, you know, in some part, a function of the maturities, so we have some coming up this year, and there's some others coming up later in the year. On the out parcel and land side, recall that we have said in the past, you know, from the beginning, we said that the sales in this bucket was gonna be weighted towards 2026 versus 2025, and that's primarily because many of these outparcel assets have some encumbrances, whether they're part of a loan collateral, so we have to work with the lender to kind of unencumber them from that.

Speaker #13: And the timeline of that is in some part a function of the maturities. So we have some coming up this year, and there's some others coming up later in the year.

Speaker #13: On the outparcel and land side, recall that we have said in the past, from the beginning, we said that the sales in this bucket were going to be weighted towards 2026 versus 2025.

Speaker #13: And that's primarily because many of these assets have some encumbrances, whether they're part of a loan collateral. So we have to work with the lender to kind of unencumber them from that.

Speaker #13: On the land, some instances, there's some zoning and entitlements that are in the final stages that from a maximizing value to the company and shareholders, we'd rather wait a quarter or two to get to maximize that value with entitlement in hand.

Dan Swanstrom: On the land, some instances, there's some zoning and entitlements that, you know, are in the final stages, that from a maximizing value to the company and shareholders, we'd rather wait a quarter or two to get to maximize that value with entitlement in hand. So there's kind of a story to a lot of these out parcels. They're not just sitting there ready to sell. It's just us working the process and continuing to execute on getting as many of those sold or under contract by the end of this year. There's no impact that we're seeing whatsoever as it relates to pricing or appetite in the market for these assets. It's just time to work through the sales.

Speaker #13: So there's kind of a story to a lot of these outparcels. They're not just sitting there, ready to sell. It's just us working the process and continuing to execute on getting as many of those sold or under contract by the end of this year.

Speaker #13: There's no impact that we're seeing whatsoever as it relates to pricing or appetite in the market for these assets. It's just time to work through the sales.

Speaker #11: Okay. No, I appreciate that. One more for me. Thinking about the certainly seems like you're shifting a bit focus more on external. You talked about I was curious about the infrastructure, the resources, of the platform you have in hand.

Haendel St. Juste: Okay, now I appreciate that. One more for me. You know, I was thinking about, you know, the. You know, certainly seems like you're shifting a bit, focus more on external. You talked about. I was curious about, you know, the infrastructure, the resources of the platform you have in hand. So as part of this, you know, growth, one part that you've made enough progress, you're leasing and dispos and now looking to be opportunistic because the platform can operate and be more efficient with more assets. And so curious kind of about the size, the efficiencies of the platform. And then curious how you're thinking about AI as you look about at your business and what potential efficiencies you can leverage that to garner. Thanks.

Speaker #11: So as part of this growth, one part is that you've made enough progress—you’re leasing and disposing—and now looking to be opportunistic because the platform can operate and be more efficient with more assets.

Speaker #11: And so curious kind of about the size, the efficiencies of the platform. And then curious how you're thinking about AI as you look at your business and what potential efficiencies you can leverage that to garner?

Speaker #11: Thanks.

Speaker #13: Yeah, thanks, Haendel. So, on the new opportunity side, I think some of it's just a function of the market reopening. I think the addressable market for mall opportunities is getting a little bit bigger than, say, it was last time this year.

Jackson Hsieh: Yeah. Thanks, Hindel. So on the new opportunity side, I think some of it's just a function of, the market is reopening. I think the addressable market for mall opportunities is getting a little bit bigger than, say, it was last time this year. So that's kind of compelling, and we like sort of where these yields are, at least what we're seeing right now. As it relates with our platform, you know, we've, if you remember my comments a year ago this time, you know, I talked a lot about process improvement committees and introduction of dashboards and efficiencies in terms of being able to create more, operating efficiency just with the way our teams are communicating. CRM, the new CRM that's in place.

Speaker #13: So that's kind of compelling and we like sort of where these yields are. At least what we're seeing right now. As it relates to our platform, we've if you remember my comments a year ago, this time, I talked a lot about process improvement committees and introduction of dashboards and efficiencies in terms of being able to create more operating efficiency just with the way our teams are communicating, CRM, new CRM that's in place.

Jackson Hsieh: So I would say, like, we are able to easily scale given our current infrastructure, with more GLA. The question I'm trying to balance right now is finding opportunities that enhance that 2028 FFO range that we've talked about, that also fit well with what I think our strengths are internally. So I don't think you'll see us do heavy redevelopment as our next opportunity. We're very, very good at leasing. We're very, very good at credibility with retailers, like what we're experiencing now at Crabtree. And so, to me, those are more easy putts, short putts. You know, I think assets that have a more deeper value add, and I think we'll look at those very diligently and carefully to see if that fits with our strategy.

Speaker #13: So I would say we are able to easily scale, given our current infrastructure, with more GLA. The question I'm trying to balance right now is finding opportunities that enhance that 2028 FFO range that we've talked about, that also fit well with what I think our strengths are internally.

Speaker #13: So I don't think you'll see us do heavy redevelopment as our next opportunity. We're very, very good at leasing with very, very good at credibility with retailers like what we're experiencing down at Crabtree.

Speaker #13: And so to me, those are more easy puts, short puts. I think assets that have a more deeper value add, I think we'll look at those very diligently and carefully to see if that fits with our strategy.

Speaker #13: But I would say, when I think about one year ago versus today, organizationally, the organization has really advanced quite amazingly. If you were sitting in here, from a technological standpoint, operational standpoint, process standpoint, communication standpoint, decision-making standpoint.

Jackson Hsieh: But I would say, like, when I look-- when I think about one year ago versus today, organizationally, or the organization has really advanced quite amazingly. If you were sitting in here from a technological standpoint, operational standpoint, process standpoint, communication standpoint, decision-making standpoint. And that's not what I-- that's not really reliable on AI. That's just human beings and Microsoft BI and different things like Argus and things like that. As it relates to AI for us, because I've asked that question of, you know, for our retailers, you know, how are you all thinking about AI? And you listen to Walmart. Look, they're selling large volumes, penny matter for them. And so AI will definitely, I think, influence what they do.

Speaker #13: And that's not without that's not really relying on AI. That's just human beings and Microsoft BI and different things and arguments and things like that.

Speaker #13: As it relates to AI for us—because I've asked that question of our retailers—how are you all thinking about AI, and do you listen to Walmart?

Speaker #13: Look, they're selling large volumes penny matter for them. And so AI will definitely I think influence what they do. But if you think about what we do, apparel companies, customers that are constantly looking for innovation and fashion and things like that, I think AI is still I think if you were to ask retailers, that are primarily focused in our centers, they're still trying to understand how it can really leverage their system.

Jackson Hsieh: But if you think about what we do, you know, apparel companies, you know, customers that are constantly looking for innovation and fashion and things like that. I think there's I think AI is still, I think if you were to ask retailers that are primarily focused on our centers, you know, they're still trying to understand, like, how it can really leverage their system. You know, I think when you look at mass retailers like, well, Walmart, I think it's a, it's a different circumstance given what they do in terms of their scale. And it's falling back to what we do, you know, I think it's still early days for us, to be honest with you. I'm trying myself to get more up to speed to think about how it can influence us.

Speaker #13: I think when you look at mass retailers like Walmart, I think it's a different circumstance given what they do in terms of their scale.

Speaker #13: And it's falling back to what we do. I think it's still early days for us, to be honest with you. I'm trying myself to get more up to speed to think about how it can influence us.

Speaker #13: But we have so much lower-hanging fruit just doing the basics here and executing, to add value. But I think in the coming next couple of years, we'll really look and see how it can help us.

Jackson Hsieh: But we have so much low-hanging fruit just doing the basics here and executing to add value. But I think, you know, in the coming next couple of years, we'll really look at and see how it can help us.

Operator: Thank you. The next question will come from Todd Thomas with KeyBanc Capital. Your line's open.

Speaker #1: Thank you. And the next question will come from Todd Thomas with KeyBanc Capital. Your line is open.

Speaker #11: Yeah, hi. Thanks. First question, on the South Plains refi, I appreciate the detail there. And apologies if I missed it, but was there any consideration related to the extension there and the decrease in the coupon from 7.97% to 4.22%?

Todd Thomas: Yeah. Hi, thanks. First question on the South Plains refi. I appreciate the detail there, and apologies if I missed it, but was there any consideration related to the decrease, the extension there, and the decrease in the coupon from 7.97% to 4.22%? Or is that decrease, you know, pretty straightforward, you know, as far as the impact on the PNL, that and it'll result in, you know, nearly 400 basis points of savings?

Speaker #11: Or is that decrease pretty straightforward? As far as the impact on the P&L and it'll result in nearly 400 basis points of savings.

Speaker #12: Yeah. Hey, Todd. This is Dan. I would just clarify the higher rate that you're referring to represented the effect of interest rate right? So when we bought out our JV interest in South Plains, there was a debt mark-to-market.

Dan Swanstrom: Yeah. Hey, Todd, this is Dan. I would just clarify the higher rate that you're referring to represented the effective interest rate, right? So when we bought out our JV interest in South Plains, there was a debt mark-to-market, and so that kind of flowed through the effective interest rate, which was higher. The coupon remains the same at 4.2%. So going forward, what we wouldn't have is that debt mark-to-market amortization as a, you know, an additional cost. It'll just be kind of the coupon.

Speaker #12: And so that kind of flowed through the effect of the interest rate, which was higher. The coupon remains the same at 4.2%. So going forward, what we wouldn't have is that debt mark-to-market amortization as an additional cost.

Speaker #12: It'll just be kind of the coupon.

Speaker #11: Okay, got it. That's helpful. And then I just wanted to follow up on the outparcel and land sale opportunity. You previously talked about a 7% to 8% cap rate on those deals.

Todd Thomas: Okay, got it. That's helpful. And then I just wanted to follow up on the outparcel and land sale opportunity. You know, you previously talked about a 7 to 8% cap rate on those deals, you know, x land. And I realize you mentioned some of those assets are, you know, collateral for loans and, and or there are some other things that, you know, may need to happen for those outparcel and freestanding transactions to move forward and take place. But has the market changed at all in recent quarters around pricing? Is there any change to that 7 to 8% cap rate target?

Speaker #11: X land. And I realize you mentioned some of those assets are collateral for loans and/or there are some other things that may need to happen.

Speaker #11: For those outparcel and freestanding transactions to move forward and take place. But has the market changed at all in recent quarters around pricing? Is there any change to that 7 to 8 percent cap rate target?

Speaker #12: No, we're still tracking towards that. We've had a number of these outparcels, some smaller deals that have been sub-7 cap. This most recent transaction with the retail strip center at Washington Square was done right in that 7% range.

Dan Swanstrom: No, we're still tracking towards that. We've had a number of these outparcels, some smaller deals that have been sub-7 cap. You know, this most recent transaction with the retail strip center at Washington Square was done right in that 7% range. So if anything, we're probably tracking, you know, maybe slightly ahead, but generally expect to still be in that 7 to 8% range, for the outparcel components of the program.

Speaker #12: So if anything, we're probably tracking maybe slightly ahead, but generally expect to still be in that 7 to 8 percent range for the outparcel components of the program.

Operator: Thank you. And our next question will come from Ronald Kamdem with Morgan Stanley. Your line's open.

Speaker #1: Thank you. And our next question will come from Ronald Kamdem with Morgan Stanley. Your line's open.

Speaker #13: Great. Just two quick ones. So looking at the go-forward portfolio and why without lease termination income, that's sort of 1.7% year over year number.

Ronald Kamdem: Great. Just two quick ones. So looking at the go-forward portfolio NOI, without lease termination income, that's sort of 1.7% year-over-year number. Was just wondering if we could just dig into in terms of whether it's some of the closures that we have this year, whether it's some of the proactively taking back space and converting, to better tenants. Just, you know, how much do you think of that, what's the magnitude of the impact on that year-over-year number, just so we get a sense of what, you know, what the, the, the growth rate could be as those things, sort of go away?

Speaker #13: I was just wondering if we could just dig in, in terms of whether it's some of the closures that we have this year, whether it's some of the proactively taking back space and converting to better tenants.

Speaker #13: Just how much do you think of that? What's the magnitude of the impact on that year-over-year number? Just so we get a sense of what the growth rate could be as those things sort of go away.

Speaker #12: Yeah. Hey, Ronald. And again, '25 was a transitional year, as we've discussed. We had frictional downtime as we were executing on all of our tenant and strategy initiatives.

Dan Swanstrom: Yeah. Hey, Ronald. And again, 25 was a transitional year. As we've discussed, we had frictional downtime as we're executing on all of our tenant and strategy initiatives. Just to give you a flavor of how we were impacted by Forever 21 year-over-year, which had a high percentage rent contribution in Q4 2024. You know, excluding Forever 21, that would have been 2.7% for Q4 and closer to 2.5% for the year. So that just gives you a sense for 2025. You know, and going forward, I know we've talked about this in the past, but you know, I'll refer you back to our path forward plan update that we put out last summer.

Speaker #12: Just to give you a flavor of how we were impacted by Forever 21 year over year, which had a high percentage rent contribution in the fourth quarter of 2024.

Speaker #12: Excluding Forever 21, that would have been 2.7% for the fourth quarter and closer to 2.5% for the year. So that just gives you a sense for 2025.

Speaker #12: And going forward, I know we've talked about this in the past, but I'll refer you back to our path forward plan update that we put out last summer.

Dan Swanstrom: You know, in there, we had an NOI bridge that assumed a midpoint CAGR of 5.2% for the go-forward portfolio for the four-year period of 2025 through 2028. Obviously, in 2025, you can see we landed at 1.8%. Obviously, that implies, you know, significant growth in the future. For 2026, you know, we think we'll be at least 3% back-end weighted. But when you look at that in the context of 2027 and 2028, you can see that obviously that implies a significant increase above that kind of 5.2% CAGR levels in those years.

Speaker #12: In there, we had an NOI bridge that assumed a midpoint CAGR of 5.2% for the go-forward portfolio. For the four-year period of 2025 through 2028—obviously, in 2025, you can see we landed at 1.8%.

Speaker #12: Obviously, that implies significant growth in the future for '26. We think we'll be at least 3% back-end weighted. But when you look at that in the context of '27 and '28, you can see that obviously, that implies a significant increase above that kind of 5.2% CAGR levels in those years.

Speaker #11: Really helpful color. Just the second one, and appreciate that we'll get an update mid-year and guidance in 2027. Just—can you talk about just, I think you said there was an inflection point happening mid-year, around this time.

Ronald Kamdem: Really helpful color. Just the, you know, the second one and, you know, appreciate that we'll get an update mid-year and guidance in 2027. Just, can you talk about just-- I think you said there was an inflection point happening mid-year around this time. A lot of that is related to the leasing and so forth. But just organizationally, is there sort of any other sort of pieces of the plan that you're waiting on for that inflection point, or is it solely tied to the leasing?

Speaker #11: A lot of that is related to the leasing and so forth. But just organizationally, is there sort of any other sort of pieces of the plan that you're waiting on for that inflection point, or is it solely tied to the leasing?

Speaker #11: Thanks.

Jackson Hsieh: No, I mean, I think we're just business as usual. I mean, we've brought in some of the focus on the, to lead our acquisition effort. That's kind of a new-- that's gonna create a new... I'm sure that a lot of people will be busy as we're sort of evaluating different opportunities. I would say, yeah, we're operating to try to execute this, this leasing initiative.

Speaker #13: No. I mean, I think we're just business as usual. I mean, we brought in some of the focus on the lead of our acquisition effort.

Speaker #13: So it's kind of a new that's going to create a new I'm sure that a lot of people will be busy as we're sort of evaluating different opportunities.

Speaker #13: But I would say, yeah, we're operating, trying to execute this leasing initiative.

Operator: Thank you. And our next question will come from Craig Mailman with Citi. Your line's open.

Speaker #1: Thank you. And our next question will come from Craig Mailman, with Citi, your line's open.

Craig Mailman: Hey, good evening, guys. Just the first question I have on the equity and income, you guys had a pretty big pickup sequentially, and a lot of that looks to be from other. Is that-- Could you just tell us what that is and if that's sustainable or more just seasonal?

Speaker #13: Hey, good evening, guys. Just the first question I have, on the equity and income, you guys had a pretty big pickup sequentially, and a lot of that looks to be from other is that could you just tell us what that is and if that's sustainable or more just seasonal?

Speaker #12: Yeah. Hey, Craig, a big piece of that—or, sorry, just so I know, what periods are you exactly referring to?

Dan Swanstrom: Yeah, hey, Craig, you know, a big piece of that. Sorry, just so I know, like, what periods are you exactly referring to?

Craig Mailman: Q4 over Q3. So you guys, you know, just looking through the supplemental, you know, Q4-

Speaker #13: Four Q over three Q. So you guys just looking through the supplemental, four Q, you guys had 27 and a half million versus 9.7 last quarter and other income was 25 million up big sequentially.

Craig Mailman: Q4 over Q3. So you guys, you know, just looking through the supplemental, you know, Q4-

Dan Swanstrom: Yeah.

Craig Mailman: - you guys had-

Dan Swanstrom: Yep.

Craig Mailman: $27.5 million versus $9.7 million last quarter, and other income was $25 million up big sequentially.

Speaker #12: Okay, yeah, that's helpful to clarify. I just wanted to make sure I was addressing your question. It's really driven in the fourth quarter of this year, as I alluded to in my prepared remarks. We had legal settlement income, which was about $16 million in the fourth quarter of 2025.

Dan Swanstrom: Okay. Yeah, that's helpful. To clarify, I just wanted to make sure I was addressing your, your question. It's really driven, you know, in the fourth quarter of this year, as I alluded to in my prepared remarks, we had a legal settlement income, which was about $16 million in the fourth quarter of 2025. So that's really driving the lion's share of that $20 million increase from the fourth quarter of 2024.

Speaker #12: So that's really driving the lion's share of that $20 million increase from the fourth quarter of 2024.

Speaker #13: Great. Sorry, I missed that in your prepared remarks. And then just the second question, I know it's a little bit early here, but Jack, any early insights into maybe what the evolution of the path forward plan could be in version 3.0?

Craig Mailman: Great. Sorry, I missed that in your prepared remarks. And then just the second question. I know it's a little bit early here, but Jack, any early insights into maybe what the evolution of the path forward plan could be in version 3.0? Like, what are the big items we should be expecting?

Speaker #13: What are the big items we should be expecting? Yeah. I mean, when I look, when I look at as I said in my remarks, in terms of things that we're focused on, obviously, acquisition dispositions will give you an update.

Jackson Hsieh: Yeah, I mean, when I look at, as I said in my remarks, in terms of things that we're focused on, you know, obviously, acquisition, dispositions, we'll give you an update of, I think by our leasing speedometer. I think we'll give a very good update middle of the year. One thing we haven't talked about in detail, which I think we'll start to talk about, is rent commencement dates. It's a huge issue at our company, in terms of tenant coordination, legal, asset management, also with leasing, you know, trying to get these spaces on time, tenant in place, rent commencing.

Speaker #13: I think, by our leasing speedometer, we'll give a very good update in the middle of the year. One thing we haven't talked about in detail, which I think we'll start to talk about, is rent commencement dates.

Speaker #13: It's a huge issue at our company. In terms of tenant coordination, legal, asset management, and also with leasing, trying to get these spaces on time, tenant in place, rent commencing.

Jackson Hsieh: It's a big work stream that you all don't see, and we haven't put any disclosure out there, but I believe that we'll be less talking about new leasing and more about RCD, what we call RCD, Rent Commencement Date. I think that's gonna be something that you'll see in the middle of the year. My guess is, you know, we'll be tightening down our 2028 ranges of what we put out there, and I keep looking at the end. We'll probably be talking about 2029 at that point, possibly, because we see we can forecast out from there what, what's happening here. I guess, you know, just continuing updates on our development, you know, three development projects.

Speaker #13: And so it's a big workstream that you all don't see, and we haven't put any disclosure out there, but I believe that we'll be less talking about new leasing and more about RCD, what we call RCD rent commencement date.

Speaker #13: So I think that's going to be something that you'll see in the middle of the year. My guess is we'll be tightening down our 2028 ranges of what we put out there, and I keep looking at Dan—we'll probably be talking about '29 at that point, possibly, because we see we can forecast out from there what's happening here.

Speaker #13: And I guess just continuing updates on our development—three development projects, so. But I think RCD, or rent commencement dates, providing more insight into that will be something we'll talk about in the middle of the year.

Jackson Hsieh: So, but I think RCD will be, you know, rent commencement dates, providing more insight into that, will be something we'll talk about middle of the year.

Operator: Thank you. Our next question will come from Greg McGinniss with Scotiabank. Your line is open.

Speaker #1: Thank you. And our next question will come from Greg open.

Greg McGinniss: Hey. I just wanted to touch on the couple remaining or a couple of the remaining non-go-forward assets. With Twenty-Ninth Street not in that portfolio and in negotiations with lenders, is the expectation to hand that asset back, or do you believe that there's kind of equity value to extract thereafter negotiations? And then what's the plan on Fashion Outlets in Niagara? Is that an expected hand back?

Speaker #12: Hey, I just wanted to touch on the couple remaining, or a couple of the remaining non-go-forward assets. With 29th Street not in that portfolio, and in negotiations with lenders, is the expectation to hand that asset back, or do you believe that there's kind of equity value to extract there after negotiations?

Speaker #12: And then what's the plan on Fashion Outlets in Niagara? Is that an expected handback? Yeah. I appreciate the question. I think at this point, I just gave you the sort of latest state of play on 29th Street—probably no additional commentary at this point.

Dan Swanstrom: Yeah, I appreciate the question. I think, you know, at this point, you know, I just gave you the sort of latest state of play on Twenty-Ninth Street. You know, probably no additional commentary at this point. We'll obviously give you guys updates as we have relevant news to share.

Speaker #12: We'll obviously give you guys updates as we have relevant news to share.

Greg McGinniss: Okay. And then on the development side, are Green Acres and Scottsdale projects fully leased? What percent of those tenants are expected to open in 2026, and are those leases included in the SNO pipeline?

Speaker #13: Okay. And then on the development side, our Green Acres in Scottsdale projects fully leased. What percent of those tenants are expected to open in '26?

Speaker #13: And are those leases included in the S&O pipeline? Yeah. Hi, it's Brad. Yes, they are in the S&O pipeline. So, of the $107 million, roughly about $20 million comes from our development pipeline.

Brad Miller: Yeah. Hey, it's Brett Hall. Yes, they are in the SNO pipeline. So roughly of the $107 million, roughly about $20 million comes from our development pipeline. And then, Doug, if you want to talk to the leasing aspects.

Speaker #13: And then Doug, if you want to talk to the leasing aspects.

Speaker #12: Yeah. So Greg, at Scottsdale, as I think I mentioned earlier, we're just about done. We're 91% committed, with very few spaces left. And at Green Acres, we are about 75% committed.

Dan Swanstrom: Yeah. So, Greg, at Scottsdale, as I think I mentioned earlier, we're just about done. We're 91% committed, with very few spaces left. And at Green Acres, we are about 75% committed. The majority of the exterior redevelopment is complete, and the work to do right now is on the interior. But the good news is we've added some really powerful tenants. We're adding some powerful tenants to Green Acres.

Doug Healey: Yeah. So, Greg, at Scottsdale, as I think I mentioned earlier, we're just about done. We're 91% committed, with very few spaces left. And at Green Acres, we are about 75% committed. The majority of the exterior redevelopment is complete, and the work to do right now is on the interior. But the good news is we've added some really powerful tenants. We're adding some powerful tenants to Green Acres.

Speaker #12: The majority of the exterior redevelopment is complete. And the work to do right now is on the interior. But the good news is we've added some really powerful tenants.

Speaker #12: We're adding some powerful tenants to Green Acres. We think about ShopRite, Grocery, Sephora, Cheesecake Factory, Shake Shack, Foot Locker, JD Sports. It's really going to redefine the exterior.

Doug Healey: ... We think about ShopRite Grocery, Sephora, Cheesecake Factory, Shake Shack, Foot Locker, and JD Sports. It's really gonna redefine the exterior. It's gonna create a new grand entrance, and the hope is, the plan is that it all funnels into the inside, and that's what we're starting to see today.

Speaker #12: It's going to create a new grand entrance, and the hope is—the plan is—that it all funnels into the inside, and that's what we're starting to see today.

Operator: Thank you. The next question will come from Omotayo Okusanya with Deutsche Bank. Your line's open.

Speaker #1: Thank you. And the next question will come from Omotayo Okusanya with Deutsche Bank. Your line is open.

Omotayo Okusanya: Hi. Yes, good evening, everyone. While you guys don't have, you know, any real facts or Francesca's exposure, could you just talk a little bit about kind of what you're seeing out there in terms of just, tenant credit in general, and whether, you know, you know, as you kind of think about 2026, whether that's kind of more or less of a risk for you guys?

Speaker #13: Yes. Good evening, everyone. While you guys don't have any real facts or Francesca's exposure, could you just talk a little bit about kind of what you're seeing out there in terms of just tenant credit in general, and whether, as you think about 2026, whether that's kind of more or less of a risk for you guys?

Speaker #12: Yeah. Hey, thanks for the question. Certainly, those issues are in the news. For us, I think the summary is we don't expect a meaningful impact from this group as it relates to 2026.

Dan Swanstrom: Yeah. Hey, thanks for the question. You know, certainly, those issues are in the news for us. You know, I think the summary is, you know, we don't expect a meaningful impact from this group, you know, as it relates to 2026. And I don't think they're reflective of the overall strong retailer environment that we're seeing across the board that Doug alluded to at our centers. You know, our watch list remains at an all-time low, and none of those centers would impact kind of how we're thinking about our 2026 bad debt expectations for the portfolio.

Speaker #12: And I don't think they're reflective of the overall strong retailer environment that we're seeing across the board, that Doug alluded to. At our centers, our watch list remains at an all-time low.

Speaker #12: And none of those centers would impact, kind of, how we're thinking about our 2026 bad debt expectations for the portfolio.

Operator: Thank you. And our next question will come from Alexander Goldfarb with Piper Sandler. Your line's open.

Speaker #1: Thank you. And our next question will come from Alexandra Goldfarb with Piper Sandler. Your line is open.

Alexander Goldfarb: Hey, thank you, and Alexander. So, two questions. First, Jackson, you've obviously hired a CIO, and you've been doing a lot of work on the portfolio. Just curious, with how the debt markets have improved and how you're looking at dispositions, do you think part of, you know, Macerich may now be in a position where, you know, the unencumbering of wholly owned assets could start to be part of the mix? Do you think the company is there yet? You know, with everything that you're doing right now, you just don't see, you know, the asset sales and capital markets quite there enough to start down that process?

Speaker #12: Hey, thank you. And Alexander, so two questions. First, Jackson, you've obviously hired a CIO, and you've been doing a lot of work on the portfolio.

Speaker #12: Just curious, with how the debt markets have improved and how you're looking at dispositions, do you think part of Macerich may now be in a position where the unencumbering of wholly owned assets could start to be part of the mix?

Speaker #12: Do you think the company is there yet? Or, with everything that you're doing right now, you just don't see the asset sales and capital markets quite there enough to start down that process?

Jackson Hsieh: Alex, you're talking about, like, unencumbering for, like, an investment-grade rating or something like that?

Speaker #13: As you're talking about unencumbering for an investment-grade rating or something like that?

Jackson Hsieh: Alex, you're talking about, like, unencumbering for, like, an investment-grade rating or something like that?

Speaker #12: Not investment-grade, but just start to create a pool of unencumbered assets.

Alexander Goldfarb: Not, not investment grade, but just start to create, like, a pool of unencumbered assets.

Jackson Hsieh: I mean, I feel like if you think about, like, Crabtree, I mean, we kind of pursued... It's a term loan, but it's not a-

Speaker #13: I mean, I'd say if you think about Crabtree, I mean, we've kind of pursued it's a term loan, but it's not a.

Jackson Hsieh: I mean, I feel like if you think about, like, Crabtree, I mean, we kind of pursued... It's a term loan, but it's not a-

Dan Swanstrom: Yeah, Alexander, I'm just saying, you know, we paid off the debt on Flatiron. You know, Crabtree, it's got a term loan that's highly flexible. It gives us some maturity, but it gives us, you know, an ability to prepay it. So, I don't think it's, you know, an immediate near-term priority, but maybe more medium-term to aspirational to start to increase our wholly owned assets more unencumbered.

Speaker #12: Yeah, Alexander, I'm just saying we've paid off the debt in Flatiron. Crabtree, it's got a term loan that's highly flexible. It gives us some maturity, but it gives us an ability to prepay it.

Speaker #12: So, I don't think it's an immediate near-term priority, but maybe more medium-term to aspirational—to start to increase our wholly owned assets, more unencumbered.

Speaker #13: Okay. And then, as far as the legal settlement goes, can you give a little bit more color on what drove it, and is this a one-off, or is there potential that there are other of these one-time benefits that you guys may be able to harvest?

Alexander Goldfarb: Okay. And then, as far as the legal settlement goes, can you give a little bit more color on what drove it? And is this like a one-off, or is there potential that there are other of these, one-time benefits and that you guys may be able to harvest?

Speaker #12: Sure. Appreciate the question. Yeah. It relates to a—

Dan Swanstrom: Sure. Appreciate the question. Yeah, it relates to a former development project that we're no longer pursuing, that resulted in a favorable settlement outcome. It's nonrecurring item in other income, as I mentioned, and it's not part of the go-forward portfolio.

Speaker #13: Former development project that we're no longer pursuing. That resulted in a favorable settlement outcome. It's non-recurring item in other income, as I mentioned. And it's not part of the go-forward portfolio.

Operator: Thank you. Our next question will come from Michael Mueller with J.P. Morgan. Your line is open.

Speaker #1: Thank you. And our next question will come from Michael Mueller with JPMorgan. Your line is open.

Speaker #14: Yeah, hi. Can you comment on what rent spreads have been on the 2026 leases that you've addressed so far? And for the second question, are you seeing any uplift in shop leasing escalators compared to a couple of years ago?

Doug Healey: Yeah, hi. Can you comment on what rent spreads have been on the 2026 leases that you've addressed so far? And for the second question, are you seeing any uplift in SHOP leasing escalators compared to a couple of years ago?

Michael Mueller: Yeah, hi. Can you comment on what rent spreads have been on the 2026 leases that you've addressed so far? And for the second question, are you seeing any uplift in SHOP leasing escalators compared to a couple of years ago?

Speaker #13: Okay. On the rent spreads, first, the way we've historically talked about rent spreads—and obviously, you saw it over 6%—but this group, it's really not correlated to the success of our path forward plan.

Jackson Hsieh: Okay, on the rent spreads, you know, first, you know, the way we've historically talked about rent spreads, and obviously, you saw it, over 6% for this group, it's really not correlated to the success of our Path Forward plan. You know, our Path Forward plan, if you think about it, we have a set number of new spaces that we're focused on leasing, that have market rents tied to them, TA assumptions tied to them. So achieving in excess of that, you know, more rent, less TA, is good for us, because all this will sort of result in increased tenant occupancy, more productivity. I don't like the measure.

Speaker #13: Our path forward plan, if you think about it, we have a set number of new spaces that we're focused on leasing that have market rents tied to them, PA assumptions tied to them.

Speaker #13: So achieving in excess of that—more rent, less PA—is good for us. Because all this will sort of result in increased permanent occupancy, more productivity. I don't like the measure.

Jackson Hsieh: It doesn't. And then we're also renewing a really large volume of renewals, and I don't think it really correlates to what we're really trying to do. It probably gives you the wrong impression or not the right impression. So we're evaluating that metric, and I don't know exactly. I don't believe it really works right now for us in terms of the success of our plan. So we're gonna try to see if there's a better way to do it.

Speaker #13: It doesn't, and then we're also renewing a really large volume of renewals. And I don't think it really correlates to what we're really trying to do and probably gives you the wrong impression, or not the right impression.

Speaker #13: So, we're evaluating that metric. I don't know exactly—I don't believe it really works right now for us in terms of the success of our plan.

Speaker #13: So we're going to try to see if there's a better way to do it.

Doug Healey: Michael, it's Doug. I think you asked about escalators. There really has been no change. We've been consistent over the years, and we remain consistent. The escalators, when you blend the escalators for fixed minimum rent and CAM, you're somewhere in that 3% to 4% range.

Speaker #12: And Michael, it's Doug. I think you asked about escalators. There really has been no change. We've been consistent over the years, and we remain consistent.

Speaker #12: The escalators, when you blend the escalators for fixed minimum rent and CAM, you're somewhere in that 3% to 4% range.

Speaker #13: Okay. Thank you.

Alexander Goldfarb: Okay, thank you.

Michael Mueller: Okay, thank you.

Jackson Hsieh: Uh-huh.

Operator: Thank you. Our last question will come from Caitlin Burrows with Goldman Sachs. Your line is open.

Speaker #1: Thank you. And our last question will come from Caitlin Burrows, with Goldman Sachs, your line is open.

Caitlin Burrows: Hi. Maybe two more on the occupancy front. As a follow-up to Floris' SNO question from earlier, I guess maybe phrasing it a different way, you guys reported the 94.9% lease rate. Could you tell us what your economic occupancy is for the go-forward portfolio?

Speaker #15: Hi. Maybe two more on the occupancy front. As a follow-up to Floris' snow question from earlier, I guess maybe phrasing it a different way—you guys reported the 94.9% lease rate.

Speaker #15: Could you tell us what your economic occupancy is for the go-forward portfolio?

Jackson Hsieh: Yes. Hey, Caitlin, it's Brad Miller here. Yeah, so we're at 94.9% on the lease occupancy. Our physical occupancy is closer to 91%.

Speaker #13: Yes. Hey, Caitlin. It's Brad Miller here. Yeah. So we're at 94.9% on the leased occupancy. Our physical occupancy is closer to 91%.

Operator: Thank you. I would now like to turn the call back over to Jack Hsieh for closing remarks.

Speaker #1: Thank you. I would now like to turn the call back over to Jack Shay for closing remarks.

Jackson Hsieh: Good. Thank you, operator. Thanks again for your participation today. We look forward to seeing many of you at the conferences and property tours in the coming weeks. Thank you.

Speaker #13: Okay, thank you, operator. Thanks again for your participation today. We look forward to seeing many of you at the conferences and property tours in the coming weeks.

Speaker #13: Thank you.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

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