CLAIM #54360 · SPG (SPG) · 2022Q1 earnings call · May 9, 2022 · due Dec 31, 2022
“What we see now, we expect to outperform, but it’s – we don’t update it and it is an uncertain world, but we’re working extremely smartly and diligently to outperform our initial property NOI expectations, without a doubt.”
David Simon · CEO
In context
“d Simon: Well, I don’t – again, we – it’s a completely appropriate question, and I thank you for that. We gave guidance, NOI guidance at the beginning of the year. We are always trying to be conservative, and we always hope to outperform it. We don’t update it during the year. But I have confidence based upon what I know today, that we’ll outperform our initial guidance. Obviously, we have a little more variability than maybe – and then again, I don’t want to overdramatize this, but we have a little more variability than maybe we did 10 years ago, because of the overage rent that we’ve structured. I think we’ve actually structured it pretty smartly, but it does create a little more variability. And that’s our only – that’s the only thing that’s out there to throw some caution to the wind. What we see now, we expect to outperform, but it’s – we don’t update it and it is an uncertain world, but we’re working extremely smartly and diligently to outperform our initial property NOI expectations, without a doubt. Vince Tibone: If I may just kind of squeeze in a follow-up. I mean just is it – how should we think about leasing economics here? Because you took away the disclosure on the leasing spreads or a few quarters ago, which I think made sense, given it was no longer really conveying a ton of useful information. But just – because I think what I’m trying to get at is guidance implying that are releasing spreads could be negative or – like I’m just trying to figure out what the pullback years of expense is, because I get the variability portion. But to your point, is that… David Simon: Yes, I’m sorry, Vince, I didn’t mean to cut you off. It really is – it really does boil down to the sales part of the equation. It’s not – we’re seeing better rents than we anticipated. And we are seeing – look, i”
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SEC filings for SPG ↗ · Claim quote is verbatim from the 2022Q1 earnings call.