Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the expected same-store NOI growth for 2025, considering the SNO pipeline? A: Jackson Hsieh, President and CEO, explained that while the SNO pipeline is expected to contribute significantly, the overall same-store NOI growth will be more flat in the next couple of years, with a more substantial increase anticipated in 2027 and 2028. The focus is on achieving leasing goals and improving tenant quality, which will eventually reflect in NOI growth.
Q: How is the current leasing environment affecting your strategy, and what are the expected impacts on occupancy and rental revenue? A: Douglas Healey, Senior EVP of Leasing, noted that the healthy retailer environment is a significant tailwind. The company is focused on increasing permanent leasing and improving tenant mix, which is expected to enhance occupancy and rental revenue over time. The integration of leasing processes under one leadership structure is also contributing to this strategy.
Q: What are the financial implications of the Path Forward Plan, particularly regarding leverage and asset sales? A: Dan Swanstrom, CFO, highlighted that the company is on track to reduce leverage to the low to mid-6 times range over the next several years. The plan includes asset sales and loan givebacks, with a target of $2 billion in dispositions. The company has already completed significant sales and is progressing with additional transactions.
Q: How is the new leasing dashboard impacting operational efficiency and leasing outcomes? A: Jackson Hsieh explained that the new leasing dashboard has significantly improved efficiency by providing real-time visibility into leasing activities. This tool allows for better coordination among teams and has reduced time spent on non-revenue-generating activities, thereby enhancing leasing outcomes.
Q: What are the expectations for capital expenditures in 2025, and how do they compare to previous years? A: Jackson Hsieh mentioned that capital expenditures are expected to be higher in 2025 and 2026 due to increased leasing activity and a higher percentage of new tenants. This is part of the strategic plan to improve tenant quality and drive long-term revenue growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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