CLAIM #54580 · SPG (SPG) · 2024Q3 earnings call · Nov 1, 2024 · due Dec 31, 2024
“I think we now think the OPI contribution is going to be a minus 5 to minus 10 for the year, but it’s being offset by significant improvement in the real estate FFO extension.”
Brian McDade · CFO
In context
“, we can still increase our occupancy, but also beyond occupancy, and I said earlier, it’s really, we’re really focused on merchandising. So -- and but we still have room to grow our occupancy, but more important is that, bringing in the right tenants, in the right center, in the right location. That’s a huge focus for us. But we still think we have plenty of opportunity to grow our occupancy. Greg McGinniss: Okay. Thanks. And just one quick one on FFO per share guidance. We’re trying to better understand the successful year contribution from real estate as opposed to some of the noise that’s generated by other platform investments. Are you still anticipating around zero cents from OPI or is that lower now and maybe offset by better real estate performance? Brian McDade: Greg, it’s Brian. I think we now think the OPI contribution is going to be a minus 5 to minus 10 for the year, but it’s being offset by significant improvement in the real estate FFO extension. Greg McGinniss: Okay. So overall… David Simon: Let me -- we expect it to improve in the fourth quarter, for sure. Greg McGinniss: Right. But I guess, overall, I think my takeaway is that the real estate business guidance would be increased this quarter if it were standalone. David Simon: Yeah. If we -- if OPI is, you’re breaking up, I don’t know if it’s our phone or yours, but OPI has been a drag this year from an FFO point of view. Now, remember, we essentially have four assets in OPI, okay? We have our investment in RGG, we have our investment in Jamestown, we have our interest in SPARC and J.C. Penney. When you put it all together, we have positive EBITDA in those business of a meaningful amount, but again, when you own an interest in a retailer, you’ve got lots of depreciation, lots o”
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SEC filings for SPG ↗ · Claim quote is verbatim from the 2024Q3 earnings call.