Morning, everyone. Welcome to the 2022 Macerich Investor Day. We'd like to thank our audience that is here live in person and virtually online. Our presenters have allowed Q&A at the end of their presentation, so we just ask that you use your microphone when they come around so that we can capture it for our virtual audience. Lastly, our presentations and all the materials will be available online following the event. With that, I turn it over to Tom. Okay. I did not pick that walk-up song. That is not my walk-up songs. Sorry. I think it might have been more like Eye of the Tiger or something like that after what we've all been through. Welcome, everybody. Thanks a lot for being here. It is so nice to be in person with everybody. Great time yesterday. I think you saw a couple of our kind of middle-of-the-road assets yesterday, and, they showed well and showed an example of what we're trying to do. As you could tell, A quality malls are back. Consumers are back shopping in person. We expect holiday season to be pretty good. You know, the experts are saying 4%-7%. That's what most of our retailers are saying. We don't generally predict that, but that would be fairly healthy on top of a really strong fourth quarter last year. I think we're gonna hear and see more good things to come over the next four or five weeks as we move forward. Black Friday, the first time in two years, was good. It wasn't expected to be a door-busting type day or weekend. It was expected to really just be the segue and start of a pretty good holiday season, that's what we're seeing. I think one thing you'll take from the meeting today is we're in a pretty incredible leasing environment today. A lot of times we compare, you know, coming out of bad times with the Great Financial Crisis. I'd say we came pretty strong out of the financial crisis in 2010 and 2011, but this is even stronger. We've got so many leasing alternatives that Doug Healey will get into a lot of details and leasing guys, but it's just an incredible environment that we frankly haven't seen before. A lot of stats up here. I think an important one is we reduced our portfolio coming out of the financial crisis from 68 centers to 44. I mean, our goal was really we said, okay, what performed well during tough times? What didn't perform well? And the top centers performed extremely well, such as Scottsdale, Kierland that you saw yesterday. We sold 24 centers that averaged about $325 a foot in sales. Our average today is $877. That was our lower quartile. We raised about a $1 billion that we redeployed into our portfolio. Another interesting stat here. I'm sure all of you are very astute investors, if you look at that 13.2%, what that is that's your return on equity today if you bought Macerich at $13. That's the AFFO divided by the share price. That's a pretty good starting point before we even do anything good with, you know, the cash flow from operations. Another important stat here, the $877 a foot, that's higher than we were pre-COVID. That's tenant sales per foot. That's the highest we've ever had, it's just trending up from here. Great things are happening with our portfolio. To the lower right-hand corner, our occupancy at 92.1%, pretty good, especially when you compare it to other sectors, but that's still below our pre-COVID level of 94%. We've got a lot of running room left, a lot of growth in same center NOI, which I'm sure Scott will get into, and it bodes well for what's ahead of us. Investment thesis: The obvious, we're a great value stock today. We're trading at a 6.5x multiple. Historically, we've traded at a 15x-20x multiple. You know, do the math. And for whatever it's worth, management is walking its talk. Management has been buying a lot of stock. Don't know if you guys have noticed it, but there's a lot of Form 4s out there. You know, it's interesting. There was a lot of concern when Sears went bankrupt. It was inevitable. We knew it was gonna happen. We were looking forward the opportunity to recapture a lot of those boxes and change a lot of the character and complexion of our properties, and that's happened. The opportunity to get back, you know, 10, 11, 12 Sears boxes has turned out to be an incredible opportunity for us, you'll hear more about some of what we've done there later on in the presentation. Really, you know, today, I'm glad you're gonna meet a lot of our people. You guys have heard probably way too much from me and Ed over the years, you're gonna meet the rest of the team today. They're the people that really get the job done and do the heavy lifting, and we got a great team, and you're gonna hear from a lot of them today. Post-pandemic, we continue to put up good numbers, not really a surprise to me. Sales are up. Same center NOI is up. We're back to or ahead of pre-COVID levels in most categories. Occupancy continues to trend up. We've got another 200 basis points to go, which is nothing but positive. Leasing spreads are positive. The leasing environment is, frankly, incredible. We do something called executive leasing committee every two weeks. All the leasing professionals have to present their deals and convince us of why we should do the deals. Typically, this time of year, things kind of taper off because the retailers are focused on the holiday season, not getting deals done. Typically, in November, December, we'd see 30 deals. Last Monday, we saw 110 deals. I mean, the leasing environment is very robust and it's an exciting time to be in our business. We're also an industry leader in ESG. We'll hear from Olivia Leigh later on today about what we've done. We, you know, consistently win a lot of awards. We're on track to be carbon neutral by 2030, and I think we're largely considered to be an industry leader when it comes to ESG. Looking at our portfolio, by design, we've really focused on the Northeast, California and Arizona. The 24 properties we sold off after the great financial crisis, to a large degree were in the Midwest and tertiary markets, not strong markets compared to what we've got today. We've got a great portfolio and great markets, and that's gonna serve us well. Great demographics. It's an outstanding portfolio. I mean, you know, somebody accused us yesterday of cherry-picking a couple good assets. There's another four or five assets in Phoenix we could have showed you yesterday, but we would've been on the bus for hours and hours. We didn't wanna do that to you, but they would have shown just as well. Moving on to where the portfolio is. We've got about 38% in the Northeast, New York down to D.C. 17% Phoenix, and 28% California. A great high quality portfolio. Pure play, domestic, A quality town centers. Gonna take a look at our top 10, and you might say, "Well, why do you just look at the top 10?" Again, you know, we could go through every asset, but these 10 represent 40% of our NOI. You know, really what we're focused on is making our properties more diversified, densifying them, more traffic, more energy, more activity. Just to go down the list and give you some examples. Village at Corte Madera in Marin County, small asset. We added a Restoration Hardware flagship store right in the middle of the parking lot. It's beautiful. It's 80,000 sq ft. It's absolutely spectacular. It's, you know, really the talk of that town. We also could do some residential there. Going down to the next asset, Broadway Plaza. That's in Walnut Creek, which is suburban San Francisco. We added a Life Time Fitness, Industrious coworking, Pinstripes, great asset, only getting better. There's another big announcement that'll be coming shortly if Michael gets his act together and closes the deal. I don't wanna jinx it by announcing it right now, it'll be a game changer out there. Scottsdale Fashion Square, you saw it. We have office, we have hotel, we have coworking, we have fitness, we have luxury. It's a powerhouse. Queens Center in right on Queens Boulevard, Long Island Expressway. It's a powerhouse. We've got some new names coming there. Zara, Primark, the good just keeps getting better in that case. There's $1,700 a foot in sales. By the way, an A quality mall is around $600 a foot in sales. You look at these top ten, and they exceed that significantly. Washington Square up in the Portland market. We've got a Sears box. We're in for entitlements. We're gonna do a combination of hotel, entertainment, food and beverage, as well as residential. Great center that's just gonna get better. Santa Monica Place, you're gonna hear more about this later. Not too far from our office. We got back a Bloomingdale's box. Bloomingdale's was doing a mediocre $17 million or so in sales. As of this morning, I think Cory, where are you? Is the ink dry? Did the deal close? Last night. On the top level, where we had a bankrupt theater, we're putting in the ARTE MUSEUM, which on the surface might not seem like much to you guys, but it's a digital art gallery, and they expect to generate 2,000 visitors a day up there. We've sent a team to Korea to visit their installation there. Absolutely spectacular. It's one of a kind. It's gonna be the first in the U.S., and it's gonna be a game changer for Santa Monica Place. That's at the top level. Second level, we're doing coworking. Bottom level, a high-end fitness studio. On top of that, we're very close to a deal, and not to jinx it, but I feel 100% confident that we're gonna get signed with Din Tai Fung, which is a kind of legendary Asian restaurant where people line up for 45 minutes to get in. I can't believe it. Ed Coppola, in particular, is very fond of this. Convinced me we should wait in line up in Seattle for 45 minutes, and it as worth the wait. You love the noodles, Tom. I know you love the noodles, Seth. You're a noodle kind of guy. Kierland, you saw yesterday we're adding 125 residential units and also potentially an office tower. Tysons Corner is the ultimate town center as it exists today. We have an office tower, we have a residential tower, we have a hotel, and we're adding an additional 600,000 sq ft tower that's either gonna be retail and office or a combination of retail and mixed use. Los Cerritos Center, one of our last Sears boxes, we're going for entitlements, and that's expected to be 600 residential units as well as probably a hotel. Sales and traffic, which are the two stats everybody loves to talk about. Coming out of the pandemic, we're at traffic level is about 95% of pre-COVID levels, which is effectively 100%. You look at sales. Sales are 113% of what they were pre-COVID. That's the third quarter of 2019 we use as a comparison. Sales are going strong, the retail environment is good. The consumer is proving to be incredibly resilient. Now the next stat, history does repeat itself, by the way. We're taking a look at, you know, 10 years of history. If you went back to the low point coming out of the financial crisis for occupancy was the first quarter of 2009, our occupancy was 89%. We clawed our way back to about 96% post GFC, and I would tell you, the leasing environment then was nowhere near as good as it is today. You see our climb coming out of COVID, we got to a low of 89.5%, and it's moved up gradually since then. We're at 92% today. We expect that trend to continue, and we expect to be back to pre-COVID level of 94% by the end of next year. I'm putting a lot of pressure on the leasing team here, but that's by design. They're good, and they'll get it done. Looking at major trends, there's not a lot of A mall companies left anymore. You know, you effectively really have Macerich, the pure play, and you have Simon. Taubman is gone. You know, Westfield/Unibail is, you know, really an international company and trying to get out of the U.S. You look at the trends, it's a pretty small subset of companies that are pushing that trend. You see the categories. Luxury is going incredibly strong. By the way, most of these names did not exist five years ago. We've got a new, exciting, resilient, energized retail environment. You know, five, 10 years ago, the mall was all about apparel and footwear. It's so much more than that today. You saw the power of luxury yesterday at Scottsdale Fashion Square. You go to the next category, which, you know, we've been focused on for a long time, digitally native brands. You know, they're still relatively small. I think it's 3% of our portfolio today in terms of square footage, non-anchor square footage. A lot of these names jump out at you. Alo, we've got our retailer rep, Michael Guerin, will talk about Vuori later on. You know, YETI, Fabletics, a lot of great names that continue to come and take more brick-and-mortar space. New uses, SCHEELS we'll hear about a little later on. That's an incredible sporting goods operation that's very experiential. Industrious. A lot of food and beverage, Pinstripes, Round 1, Dave & Buster's. These are all names that are coming in growing size and demand. International continues to be big. Zara and Primark are two of my favorites, and we continue to do a lot of deals with them. In fact, we are the number one U.S. landlord for Primark. More deals to follow. Legacy brands continue to be good. Think Apple, think Sephora, names like that, kinda household names. Food and beverage continues to be a bigger category for us than it's ever been. You know, again, the evolution continues in retail. What's an A quality mall? It's more than just retail. It's office, it's coworking, it's hotels, it's food and beverage. A lot of exciting stuff. We talked a little bit yesterday about the electric vehicle makers. 10 years ago, coming out of the financial crisis, I think we had one Tesla store. Today, we have incredible demand from Polestar, Lucid, Rivian, ElectraMeccanica, VinFast, you know, the names continue, and they come, and they take space in malls. It draws a lot of people and the demand is huge. Down here in the experiential category, Santa Monica is a good example. We took a kind of underperforming theater space. We're putting the digital museum in, the ARTE MUSEUM, which probably will get announced this week. Cayton Children's Museum is at the top level. They take about 30,000 sq ft, and it just adds a lot of people. Cayton gets 250,000 visitors a year. The ARTE MUSEUM thinks they're gonna get 1 million. Adds a lot of bodies, a lot of energy. It's pretty exciting. Again, it's what's the trend? What's going on with the business? From our standpoint, it's about densifying, diversifying, making our properties more interesting, more exciting. It's gonna include more office. And these aren't gonna be huge towers. There's gonna be potentially one at Biltmore, potentially one at Tysons. A lot of coworking. We found that coexists very well in the mall environment. A lot more health and wellness, he says with a raspy voice. Life Time, we're doing a lot of deals with them. In Life Time, they estimate they have 5,000 members on average, and they go two or three times a week. I don't know. To me, that sounds optimistic, but I'll take even half of that number. Brings a lot of people to the properties. In residential. Residential, we've got a Kierland, Scottsdale Tysons, and Los Cerritos. With that, I'm gonna turn it over to my colleague, Scott, who's gonna get the tough questions on the financing market. Thank you. Testing, testing. Can you hear me back there? Good. Okay, great. Great. Well, white shirt, blue coat. Tom didn't even coordinate with me today. Amazing. A few of us here in this room like that. Hey, everybody. Good morning. I really enjoyed spending time with you last night and during our property tours. While you'll likely digest a lot more content today than you did yesterday, you know, there's really no replacement for visiting the real estate and hearing the story in person. There's most definitely no replacement for the social interaction, engaging dialogue that we had last night, driving to and from, as well as at dinner. We do really appreciate you guys being here. I'll discuss now a little bit further on the company's positioning, both from a financial and an operating perspective. I'll touch on key drivers of NOI going forward. I'll dive into your favorite topic, the balance sheet and our capital plan, and then finish off with a look at our current valuation. All this within roughly in half an hour or so. Let's get going. I think I got this. Yes. Tom touched on this briefly, but on the left-hand panel, it's certainly worth noting, especially given what we just experienced during the pandemic. You know, coming out of the global financial crisis, we looked at what worked and what didn't. What pretty clearly didn't work were lesser quality assets and lesser quality markets. Over the course of 2013 to 2021, sorry to correct my boss, we actually sold a few more assets than what you mentioned. It was a very ambitious plan. We sold them in pairs, in singles, in triples, but, without creating a separate spin-off, we sold over 40 assets over that nine-year timeframe. Primarily malls and power centers, we generated over $2 billion of capital that we recycled back into the portfolio in very accretive projects. Those assets did average in the mid 300. You know, if we were still holding onto those assets today, I would assure you that our recovery coming out of the pandemic would have been dramatically different. History does repeat itself. We learned our lessons from then, and, I think that's a very important underpinning. Now some of that activity actually occurred in 2021. As you guys are aware, we were opportunistic during 2021, selling assets. We sold, roughly $500 million of assets, three separate transactions, and we will continue to be opportunistic sellers. We're not gonna post it in our guidance. We're not gonna issue earnings releases until the transaction's done. As you guys know, you can never predict until the dollars are in the door and until escrow says you're closed. We will continue to be very opportunistic in terms of disposing of non-core properties. On the middle panel, you'll hear this throughout the day, and Tom mentioned it. It's going to get redundant, but for a reason. It's about leasing, leasing today. As we've told you before, 2021 was very close to the strongest leasing year we've ever had, and 2022 is on pace to either equal or surpass 2021. I think at this point, it's pretty safe to say that, when we look back over this two-year period from last year through this year, we'll have the strongest two-year leasing volume in the company history. That's extremely noteworthy. As the leasing team will soon attest to, there's really no retrenchment at this point in retailer demand, despite the clouds that may be on the horizon with what's going on with inflation. We have a very significant and growing leasing pipeline. We have leased during the course of 2021 and year to date in 2022, about 6.5 million sq ft and growing. I'll speak to the leasing pipeline in a little bit more detail in just a bit. As Tom mentioned, it's really about occupancy, it's about absorbing vacancy, and then ultimately, it's about creating some rental tension so we can push on rate, and we're accomplishing all those objectives right now. We have increased occupancy in just six quarters alone, over 350 basis points. Really, as we enter into kind of an uncertain environment, despite that what the retailers are telling us, everything is great. You know, you look at our watch list, and it is just massively smaller than what it was heading into the pandemic. We obviously took our pain, we took our lumps during the course of a five-year period, running starting in late summer of 2016, through 2020, with year-over-year increasing amounts of bankruptcy and retailer failure. At this point, we really look at the landscape, and we say, look, our retailers have rationalized their footprint. We know that because as we speak to them about renewing leases two years at a time as those leases expire, they're not talking about shedding stores. They're not talking about shedding markets. They're comfortable with where they're at. It's really a rental conversation. The retention rates are strong, and we just don't see that type of friction that we saw heading into the pandemic. I think that's a very important backdrop to keep in mind as we head into, again, a little bit of uncertainty given the aggressive Fed rate hiking cycles that have really, you know, created some turmoil in the markets. On the right-hand panel, just real quick, certainly need to highlight our commitment to continue reducing leverage. In 2021, we were extremely aggressive. We reduced our debt load by 20%, $1.7 billion, and that's extremely noteworthy, and we'll remain committed to that on a very patient and a very prudent basis. We'll speak in a little bit in future slides about liquidity and cash flow positioning. It is extremely strong. I'm not gonna dwell on this too much. You guys heard from us at the quarterly call. We had some follow-up calls with several of you in this room. Just to touch on a few facts, we continue to rebound quite well in terms of NOI growth year-to-date, up 10%. We do expect, once we conclude the year based on our recent guidance, that over the course of 2022 as well as 2021, we will have surpassed 7% NOI growth. That is an extremely solid recovery coming out to the pandemic. We do believe that by the time we get towards the end of this year, we'll be back to pre-pandemic occupancy levels. Occupancy, obviously, is a leading indicator. Cash flow follows shortly thereafter. We'll speak to that in a little bit when we talk about the pipeline. Extremely noteworthy to see how well we've rebounded. Again, it's really about the health and the quality of our portfolio, as I touched on our disposition activity earlier. Sales remain strong. As Tom mentioned, most holiday forecasts are for mid-single- digit growth. That should help us end up the year in kind of mid-single- digit growth over 2021 in terms of sales, our tenants' top line. I think it's extremely noteworthy that we were not alone during the third quarter reporting that we're finally seeing some positive rental pressure. We've been pushing on the team now that we've been able to recapture so much occupancy to really start to drive rate, and they've been successful in doing so. As Tom mentioned, we review deals every other week, it certainly seems on an anecdotal basis that we're getting pricing power. Look, a lot of that is not only because the occupancy we've gained and the vacancy that we've absorbed, but it's about a competition for space. We've got very high-quality assets, very high-quality space that hasn't been on the market for quite some time. As a result, you can create a competitive environment, you can really push rates. We're not seeing the, you know, double-digit rental spread growth that we saw during, you know, period five, 10 years ago. We're seeing mid-single digits, and frankly, that's what we expected, and I think that's what we had indicated to you all in earnings calls earlier this year. We're glad to see that start to unfold. Like I said, I don't think we're alone in that regard. Moving on. You know, we're gonna just talk briefly about key drivers over the near-term horizon in terms of NOI. Certainly our leasing pipeline will be a key driver. We'll give you a slide here in the next slide that kind of help you quantify what that means rather than just express it in terms of occupancy growth or express it in terms of square footage. As you can see, we're very much on pace at 22 to be in line or surpassing 21. As I mentioned, we're looking at a two-year historic run in terms of leasing. Then it's also important to note, and I'll touch on this in a bit, our redevelopment activity will be extremely accretive. Recently, we updated our development pipeline to disclose two transactions, which will be very accretive, and those will open in 2024. We'll cover that in just a bit. The guys will talk about this in a bit, and not to steal their thunder, you know, where does the demand coming from? It's kind of coming from all corners. Pretty noteworthy, when it comes to doing deals with new players, new brands in our space. Over the course of 2021, as well as year to date in 2022, we've leased 1.2 million sq ft, which is no insignificant sum to brand-new retailers to the Macerich portfolio. It's extremely noteworthy, and we're seeing you know, demand just come from a breadth and a depth of uses that we have never experienced. This is the slide I was mentioning. When we talked about the leasing pipeline, historically, we've talked about occupancy and growth. It's hard to quantify. We've talked about square footage in terms of leasing pipeline, somewhat hard to quantify. We put this together about three months ago. We will continue to update this perpetually each quarter to help guide you guys. It's certainly a fundamental underpinning of where we see NOI going. This measures incremental rent from future new stores over and above the existing rent from any permanent uses that are in place today. Again, this is incremental rent. The blue bars are deals that are signed, the spaces, you know, waiting to be built out, waiting to start paying rent. The brown bars are deals that are in process, which means that we have retailer commitments. Those deals are in documentation. Within the next few months, those deals will be signed. In 2023, we expect an incremental $29 million of rent from that new store pipeline. Progressively into 2024, this is a cumulative chart, we expect an incremental $21 million. In 2025, we really just started leasing into 2025, an incremental $6 million. As we move forward into time, we'll certainly see 2024 grow as we continue to lease into 2024. Like I said, it's very early days in terms of 2025. Now, this is only one component of where we see NOI going. Obviously, we've got embedded re-rent growth. We've got the impact of inflation on operating expenses. We've got a lot of factors in there. We've got, you know, occasionally we'll take down space opportunistically. There's a little bit of downtime. That may not be reflected in this chart. We'll see a little bit of that here and there. I think we'll see a little bit of that in 2023. You know, I don't want you guys to get overexuberant and say that this is guidance and just build these straight into your model. It certainly does show you that we're on a very positive trajectory for future NOI and EBITDA growth. I mentioned our redevelopment pipeline. These two projects were disclosed about six weeks ago when we filed our 3Q earnings. Santa Monica Place in Scottsdale, again, there's a lot of folks here. They're gonna be speaking about these projects in detail. I'll just cover the financial highlights. I get the easy part. They get the fun part. $80 million to spend in aggregate, and on an average basis, high teens yield. Extremely attractive projects. In fact, if you look at that on an NAV basis, we're creating probably about $1 per share of NAV growth with just these two projects alone. Of course, there'll be more to follow. Over the course of this year and next year, we expect roughly $125 million-$150 million of development spend. As the development team will note shortly, they're actively working on numerous entitlement projects throughout our footprint. Your favorite topic, balance sheet. I'm not gonna spend a lot of time on this slide, but obviously this depicts our maturity schedule. I do have a couple slides following this where we'll get into a lot more detail. I'll just say this, though, in terms of our near-term maturities, we are closing soon, within the next week or so, on a three-year extension of Santa Monica Place. I'll give you some details in a bit. With that, we will have addressed in full all of our 2022 maturities, and we are well underway on our 2023 financing plan. A lot of numbers, a lot of details here, and again, this will be posted for everybody's consumption thereafter. If you guys have any questions, Samantha's always available to field them. Completed to date, we've been extremely active, whether it's refinancings or extensions, and this is all a very strategic and coordinated plan. Year to date, we've closed on roughly $1.1 billion of transactions, about $800 million of the company's share. That's a combination of refinancings from projects like Flatiron Crossing, Pacific View, extensions on projects like The Oaks in Danbury and Washington Square. About $800 million of transactions, and the average duration of those deals was about three and a half years. All that stuff is already disclosed in our public filings. In process today, we have four transactions, about $1.5 billion total, about $1.2 billion of the company's share. I just mentioned a bit ago, Santa Monica Place, we expect to close within the coming week or so. There will be no loan repayment on that $300 million loan. We expect to maintain the existing rate at LIBOR plus a little less than 150. Both of these are extremely attractive factors relative to the market today. This will be a three-year extension, it's really a tremendous outcome. Green Acres, we have a loan on the mall. We have a loan on the power center, The Commons, adjacent to it. I've got a team of investment bankers actually huddling up with our team on the East Coast right now as I speak. We're working on a $370 million refinance for five years on that project. It'll be relatively leverage neutral with a slight overborrow. The fixed rate, if we locked it today, would be in the high fives. It'd be below 6%. We expect an early 2023 closing from that. Again, a five-year deal. Scottsdale Fashion Square was kind of a beauty contest. You guys saw it yesterday, you could see how any lender would love to have covet that and have that in their pool. We held that beauty contest over the last several weeks, about two weeks ago, we selected two investment banks to partner up, to team up on roughly a $700 million finance or refinance. This would be very liquidity accretive, generate about $300 million of excess proceeds, half of which is ours. This would be a very attractive loan that today would lock in at less than 5.5% interest only for five years. Extremely attractive financing, we would expect to close that sometime middle to late first quarter. We're actively working on it. We've talked in the past about a pending deal on Danbury, which is still to be done. Through fits and starts in the market, we've decided that we've got an opportunity to just extend, we've extended our existing financing at what today is a below-market rate of 5.5%. You know, we're gonna get to a better climate here in the next couple of months, and I anticipate a $150 million execution. Have not locked rate yet, but that would be late first quarter, early second quarter type closing. If I were to guesstimate the rate, it would be somewhere in the low to mid 6% range. Again, I think that's a transaction we could probably close in about a week and a half or two weeks of time. Most of the work has been done. In, in mass, you know, four transactions, $1.2 billion a share. We're getting things done. It's certainly not easy. It's keeping me up at night. My hairline was a lot longer, a lot thicker, before, you know, all this started, but we're getting through it, and it's really a testament to the quality of the assets we have, frankly. Future transactions, certainly noteworthy at the end of 2023. We do expect a significant liquidity event with Tysons Corner. Should generate anywhere between $60 million-$70 million of excess proceeds. Again, I think that will be somewhat of a beauty contest like we just experienced at Scottsdale Fashion Square. If you look at next year in total, since we're upon next year now, we expect roughly $200 million of liquidity coming out of the financing pipeline. Admittedly, that's a little bit less than what I was planning on, say, 12 months ago. Probably about half of what I was planning on 12 months ago. There is liquidity to be garnered. If we look at the last four years, 'cause I think that's really relevant, 'cause that's really when there's been disruption, significant disruption within the debt capital markets. We've had times where those have loosened up. They've tightened up again. We expect that as the Fed starts getting a little bit more disciplined with their rate strategy and perhaps starts to slow things down, that there will be liquidity restored into the market. That's certainly the consensus view. As we look at 2020 and 2023, we've been very patient and very metered about how we've approached this. During 2020, we extended through six separate transactions over the course of one to three years, about $900 million of the company's debt. That was executed at weighted average closing rate of 4.5%. You guys know that's well below market. It was also executed with the usage of only about $30 million of liquidity. We extended over $1 billion of debt. We used about $30 million of liquidity, less than 3% of what we extended. A very attractive outcome. During 2022 and 2023, all this correlates with this slide here. During 2022 and 2023, we expect to transact on about $2.5 billion of debt that the companies share. We expect over the course of that to generate about $130 million of liquidity. We expect the weighted average closing rate on those deals to be approximately 6%, again, on average, which is about 140 basis points higher than what exists today. The weighted average term will be over four years, and we expect to get, maintain a floating rate balance that'll be well less than 10%. Over the course of this four-year period, during a pandemic, when we've shuttered our real estate, we've locked our tenants out, we've had to reopen, reclose, reopen, all of that. During all this turmoil, we will have executed on over 50% of our debt portfolio, $3.5 billion. Weighted average closing rate somewhere in the mid-fives, raising net liquidity of $100 million. From all this, I draw a few conclusions. I reflect first on the strategy of our extensions, and we've entered into quite a few of those. The reason we do this again is frankly because of our secured non-recourse position. Gives us a ton of leverage, guys. This also enables us to finance the assets at a point in time when we've been able to reposition them and stabilize them following the pandemic. Obviously gets us to a better and more stable financing market. It's not a coincidental strategy, though. It's very thoughtful, and it's proven to be very efficient, both from a liquidity and a rate standpoint. During 2021, we used only $30 million of liquidity. We executed it at a closing rate of 4.5%, well below market. We'll continue utilize that as a tool when we need to and as necessary. At some point in time, we'll be back to just straightaway refinancing. Right now it's a very important tool. Secondly, I want to highlight that as some may have expected, we are not having to issue stock to address our maturities. It's really a flawed premise, guys. We have secured non-recourse debt. We're the best operator of those assets. Generally, those assets were leveraged at a point in time at origination, 50%-55% loan to value. At the point in time they come up in a stable financing market, they're a source of liquidity, and they always have been through our company history. At a point in time of friction, like today within the debt capital markets, very little liquidity is used, we don't need to issue stock to address our financing pipeline. Very important. Lastly, I do wanna point out that we're, you know, very aware that our maturity schedule has shrunk in terms of duration. That certainly keeps me up a little bit at night too. Not too long ago, our average duration of our maturities were over six years, and now we're less than four years. You know, our average duration will in fact increase a little bit with some of the activity I've just mentioned, the 2022 and 2023 financings that are over four years in duration. We'll be pushing that schedule out a bit. But we will start to be mindful once that liquidity for 10-year paper starts to return. We will be mindful of that, and we will start to execute on a longer duration basis. Consensus view out there is that liquidity for 10-year paper will start to come back once the Fed stabilizes its monetary policy. I think we would all agree that we're closer to that than we were fourth months ago. Those are my reflection points on our 2020 through 2023 financing plan. As we've discussed on many occasions, and it certainly bears repeating, we have significant free cash flow from operations before dividends and development on the left-hand side. We anticipate roughly $360 million of such free cash flow in 2023. I don't want you guys interpreting that this is guidance. it'll disappoint you to hear that we're not issuing guidance today. Guidance will be issued in our normal cadence when we issue our year-end earnings. This is based on consensus view, but it certainly will not be far off. We anticipate significant amount of free cash flow next year, just as we have this year. We have provided you in lieu of guidance, certainly some important cues in terms of where we're headed. We're providing you a signed but not open lease pipeline, which certainly will be useful for you guys as you continue to model our outcomes over the intermediate term. We provided you some more material near term redevelopment activity highlights for Santa Monica and Scottsdale, both of which are extremely attractive projects. Other assumptions that are going into this chart, dividends are expected to be roughly $18 million higher, that's based on the recently increased dividend. We increased our dividend, as you all know, 13% about six weeks ago, that's reflected in here. We have no dispositions assumed. We generally don't give forward-looking guidance on dispositions, as I commented on earlier. I'd say the one capital assumption that is embedded within here is an assumption that we'll utilize the balance of our existing ATM facility, which is about $150 million. I do want to emphasize, we firmly believe we have plenty of liquidity and free cash flow to manage our business. We're not in a rush by any means to issue stock at $13 a share, nor is there a need for us to do so right now. We are not entertaining a major recapitalization event. The path to NOI, and EBITDA growth is apparent from our standpoint. We've given you a lot of cues towards that. We do think that we'll get back into a range of a more historical level of net debt to EBITDA, which for us is in the 7x- 7.5x range. By the time we get to the end of next year, as you guys can see, we'll be pretty close to that at roughly 8.2x. By the end of next year, we anticipate roughly $875 million of liquidity available to the company to manage our business, and that's based on the assumptions I just outlined. More detail in terms of sources and uses and capital plan. I don't think there's anything too new here beyond what we talked about, but it's a reference point for you, and this is something that will continue to be available for you each quarter within our investor deck. Let's move on to move on to valuation. As Tom mentioned today, we're trading well below historical multiple. Over the last 22 years, we've traded in the mid-13s, 13.3, I believe, is what the chart says there. Today we're roughly 6.5x multiple. We're trading at a 50% discount to historical valuations. There's significant room to run. History does repeat itself in many cases, I think it's important to look back and see what happened following the GFC. We had a strong performance in our stock following the GFC. In early 2009, the low point, the low point of it in terms of our stock multiples were 1.5x. Within a short seven-quarter timeframe, we were able to increase that 12-fold to roughly 18x. Great run-up following the GFC. We juxtapose that then with what we've done post-pandemic, our low point, at the first quarter of 2020 was 2.5x. Today, again, we're about 6.5x, about a 2.5x expansion in our multiples. From our vantage point, again, significant room to run, guys, even despite the fact that we've had about a 60% run-up in our shares since the end of the third quarter. I think it's extremely critical always to look and ponder how much residual value is embedded within today's valuation. At $13 a share, which is our approximate trading level today, as Tom mentioned, our implied cap rate is 8.3x. This despite the portfolio quality. If you look on the lower left-hand side of the chart, over 94% of our NOI is generated by assets performing over $500 a foot at an implied cap rate of 8.3%. It's absurd. On the right-hand side, just to kind of outline some potential scenarios, pick an assumed cap rate, say 6%. Not suggesting six, I'm saying just use that as a point of reference. At a 6% average cap rate, we're still trading at a 125% discount, in an implied $29 share price, which is what a six cap would equate to. At a 15x multiple, which is what the implied multiple would be at a six cap, we'd be trading much more in line with history over the past two decades. Of course, let's keep in mind, the quality of our assets has certainly not deteriorated over the last 22 years. I'll leave you with this thought, which I thought was interesting. Recently, before I open it up to Q&A, recently, I was talking to a buy-side investor and they asked me a question over a conversation. He said, "Look, what happens if your best asset files for bankruptcy?" Well, of course, that's not a risk, but it was a rhetorical question. He said, well, their answer quite simply was, "I really don't care 'cause I didn't pay for it. It's not built into the stock price." Something to ponder, something to leave you with. Again, as Tom mentioned, we firmly believe we're a significant value play, and there's much room to run, and there's significant embedded value over and above our current market valuation. With that, we'll open it up to Q&A for myself as well as Tom. We have mics in the back. Great. Thank you. I guess, maybe we could start with the bottom 40% of the portfolio, the 32% and the 6%. I think just, I guess, how do you see those assets, like, positioning for the next few years? It sounds like you're still looking to do some dispositions. Yeah. You know, if you look at that band over $500- $750, it's 32% of our NOI. Some of those we would consider keepers, and some of those we would consider non-core. We are working, in fact, on entitlements for some of those projects that kind of fit into that band. They're still projects that are extremely relevant in their markets. There's opportunities to add mixed use. The extent of our investment in those is to be determined, but there are certainly some of those that will be non-core disposition candidates. You know, we're not gonna put a portfolio out on the market en masse. We're always gonna transact discreetly. We're always having conversations, right, Ed, with various folks. As one guy once told me, Run silent, run deep, and, you know, you transact on these, and you celebrate at escrow. You'll see that from us. Haendel. Thanks, Scott. A lot of numbers on the refinancing and the excess proceeds. Didn't catch them all, maybe a ballpark amount of the excess proceeds that you expect to garner here and a sense of the priorities to allocating it. I think you also mentioned that there's $150 million on the ATM, you're not interested in issuing stock at today's pricing, but it seems like that's embedded in the sources for next year. I guess what level are you interested, or what level potentially could that. Sure Equity be issued at? Thanks. Sure, Haendel. Thank you. you know, first up, just to get you back to the slide here that shows our 22 and 23 financing plan. You can see in the second column from the right the expectation for excess proceeds. You can see that in 2023, between the deals we have in process and the future transactions, we expect about $200 million of excess liquidity. In terms of use of that capital, there'll be a balance between unencumbering assets, repaying debt, as well as usage for development and just maintaining a prudent balance of liquidity. you know, we're always mindful of kind of all three prongs. ultimately, our long-run goal is to continue to reduce debt. back to the ATM concept or ATM topic. You know, this time last year, you know, we were trading in the low 20s, then Omicron became an issue, you know. At that point in time, we were actively, you know, trading. Then the market moved away from us because of the pandemic and because of the surge of that variant. You know, that was a level we were comfortable transacting. We're certainly not gonna, you know, queue up where we'd transact, but that was a level that we were comfortable, where it started to make sense. We do believe that raising capital to, you know, enable growth is probably a prudent strategy, right? Not at $13 a share. There's just not a need. Right now, our free cash flow position is sufficient to cover what we need. Hey, Craig. Morning, Scott. Morning. On the operational side, you guys do a good job and, you know, so that's something that's not really in question. On the balance sheet side, in the past two downturns, you guys have done two major recaps. Your FFO per share used to be north of $5, now it's going to be, you know, it's under $2. As far as the discount to multiple, if you think about from an investor standpoint that the company has now been through two recaps in the past two downturns, what's something that you can share with the market to say, "Hey, you know, we're gonna change balance sheet strategy, be it, you know, start unencumbering assets or doing something different, because now, you know, we've gone through this twice." What are some things that you can tell the street that you guys will do differently from a balance sheet strategy so that we won't have these recaps, you know, in the next downturn? Sure. I'll start this, and then Tom, you can chime in as well. Look, we've already shown our commitment towards reducing leverage with what we did last year. You know, we reduced our leverage by 20%. Pretty committed approach there. As we look at things, certainly we're starting to see some earnings headwinds from interest. From our standpoint, you know, we do believe over the next few years, NOI is gonna surpass interest growth, right? I think recapping when we have a solid position from a free cash flow standpoint and liquidity, recapping right now sends panic signals that don't need to be there. Our uses are not in excess of our sources. I don't think we need to do that. Given the quality of our asset base, I think I've demonstrated here that through combination of extensions and refinancings, we're not draining our liquidity, and we're arriving at outcomes that are frankly, in many cases, below market outcomes, favorable outcomes. So we just don't see the need for that type of recapitalization event. Tom, do you wanna expand? Actually, coming out of the financial crisis, we didn't recap. We waited. We didn't issue survival equity in 2008, 2009. We waited. We'd gotten as low as $5-$6 a share. We waited until we were trading at $29-$30 a share to issue some equity. As it related to what we did in the mid 2015, 2016 era, the board made a decision to sell some joint venture interests. We did sell at a 4.25% cap rate, a very attractive cap rate. Sold those to GIC as well as Heitman. Great transaction. The decision at the time was made to buy back shares completely, and that's what really took the leverage up. That was a board decision. Reluctantly, I did not have a vote in that era. I do today have a vote, we would not do that, okay? Looking back on what we have today, the management team we have today, the strategy we have today is actually very dramatically different. It's to, you know, have 30- 35 A quality assets like Scottsdale Fashion Square, Kierland Commons, and maximize those, diversify those, and drive cash flow and return. It's a different era. Thank you. Laura. I just wanna go back to the valuation slide. You know, you had noted that, the A3 is, I think you said, absurd. I don't wanna misquote you. Maybe suggested if we just look at the midpoint at a six cap. Just as you're talking about where you're able to refinance on the secured basis and some of your best assets, you know, Fashion Square and sort of the mid-fives, you know, if you had to underwrite an asset today with those type of rates buffering in, you know, something on the return side of things and looking at maybe an economic cap rate versus a nominal, I mean, do you feel like a six is where you would look to price given that cost of capital today? Is maybe the market closer to being right than the optimistic kinda, assumptions there, just given the debt spreads? It's a great question, Craig. I mean, you know, there's, there really have not been new transactions in the A mall space, right? Recent transaction from Westfield at Santa Anita, one-off transaction that was published to be a sub six cap rate. Take Scottsdale Fashion Square. You know, you walk the asset, you saw what it is, you saw what it's growing to be, you saw what the development potential is. If you, if you believe that's a six cap asset, then we're probably all in the wrong business and we're in the wrong room. I'm using six really as a demonstrative example here, but, you know. Look, there haven't been a lot of trades. The rate environment certainly has crept up. A lot of sectors are now having to rationalize cap rates based on where financing rates are. You know, negative leverage is certainly a topic that's out there. I'm not sure that we're at that point in terms of negative leverage. You know, we're not sellers, net sellers of that ilk of asset. I would certainly argue that the vast majority of our assets, given the quality spectrum that you see, again, on the lower left-hand side of this chart, would be better than the 6 cap. Scott, the last time there was an active market was when we sold those same assets to Heitman and GIC. It was a cross-section of assets from our top 10 down to our bottom quartile, and the average cap rate was 4.25%. The transaction Scott referred to, Unibail is under pressure to sell their U.S. assets. They haven't had a lot of success. They sold one at a 6.25% to a local family that's a developer primarily. I don't think that's indicative necessarily of value. I would say it's pretty impossible to really peg where cap rates are today for A quality malls. Since we're not sellers at the moment, it really doesn't matter. I mean, what matters is can we drive cash flow from those assets, and we most certainly can. Would I rather have Scottsdale Fashion Square or some other property type in Phoenix or Scottsdale? I think I'd rather have Scottsdale Fashion Square. We like where we are, and we like the cash flow that we think we're gonna be able to derive from the great portfolio we've got today. Mike. What do you think the trigger is for private market interest to change in terms of value, the values moving to malls? Well, that's a great question. I mean, historically, the sovereign funds have been big buyers of malls, and they exited. I think we're gonna see a shift, you know, away from certain sectors. At some point, people are gonna say, "Wow, you know, I think I can get a pretty good yield by going into malls, and they're attractive, they're stable. A malls are not going away." You know, there's a huge difference between an A mall and a B mall. I mean, the Washington Square transaction, for example, it's an okay center. It does, like, $550 a foot in sales. It would be in the bottom quartile of our portfolio. Big difference between that and a center that's doing $1,000 a foot. I think it'll happen. I don't know when. You know, it will. I mean, we've been through this many, many times over the years. 2009, there was not an institutional buyer of a mall anywhere to be found. Lo and behold, three-four years later, they were all over the place. It'll happen. I just can't tell you when, Mike. Hey, Tom. I do have a comment on that. It's not speculation, it's reality. We have made or facilitated three transactions in the last couple of years that have been in the worst markets known to mankind. Okay? We don't really speak about it, but we sold Las Encantada at a sub six. Okay? That is a lifestyle center in Tucson. Raised $160 million when nobody was transacting anything. Macerich did that. It wasn't marketed. You know, one shot, one kill, go back down, right? We sold Paradise Valley, 90% of it for $100 million, and I think it had a $2 million cash flow. It's land value. There's gonna be a huge densification there with what we're planning to do with our new partners there. Why did we do it? We did it because it was non-core. It had to be densified, and we made one hell of a deal. Okay? We recently did a transaction where we facilitated a new financial partner coming into an existing asset that we own here in Arizona. Okay? It wasn't Scottsdale Fashion. It has densification opportunity. It's built more fashion, and we have different partners there. I will tell you that it was a sub 6%. That's all I got to say about that. The reason that I can say that is because we did it, not that we say we can do it. We did it. Okay, Ben, I think you had a question. Yeah, just a quick question on Washington Square. You guys did that refinancing at over +400. Obviously, this has one of your top 10 assets. I was just curious, you know, why did that asset trade at over +400 for the debt versus some of the other deals that you're expecting at, you know, sub 6 or in the 5s? Yeah, that was a situation, a unique situation. The asset had been impacted by the pandemic and Hawaii was impacted by the pandemic, debt yield was not at a level that was commensurate with a good market execution. It was a balance sheet consortium, they viewed that as new money going out, new money that needed to be priced. At the point in time that deal was struck, new money was at roughly 400 over for that type of leverage point. I kind of look at these in total, en masse. We're doing two of those right now. Both are roughly $300 million of debt in our share, Santa Monica Place, Washington Square. If you look at that on a blended basis, it's less than 300 over LIBOR or SOFR. Pick your floating rate. It's really tremendous execution for both, given where the assets are at. You got some that are better, some that are worse. At the end of the day, I think the extension strategy, you know, gets you to much better rates, and it's really been an efficient means. Yeah, Derek had one. Hi. Thank you. What's it gonna take to get the residential JV program kinda off the ground? Clearly, you know, rates are a headwind, and development yields have been crimped. You know, with your entitlements, I would've expected, you know, some more announcements with minimal cash outlays from you guys and a pretty good JV share. What has to change in 2023, and do you think that we'll see, you know, some more action on that front? Thanks. Derek, you saw an example yesterday, where we're underway, that's at Kierland. We're gonna do 125 units there. We picked StreetLights as our partner, we're moving forward. You know, in this environment where our cost of capital is fairly high, we have some choices to make as to what percentage we stay in for, whether we just contribute our land. It's happened there. You're gonna hear later on today about a project we've got where we're converting a department store box into multifamily. It may be the first of its kind, that's gonna be done, I don't wanna steal the thunder from the development team. Doug, don't get too far away. I'm gonna hand the mic to you in a minute to hear the exciting stuff about leasing. We're underway. Some jurisdictions, the entitlements take longer, like Los Cerritos, Washington Square. We're in for entitlements on those. It's underway. We have a huge amount of interest from partners, multifamily builders who wanna come in, the big names, the REIT names, as well as small, kinda merchant builders. There's a lot of opportunity there. We don't need to be in a hurry. It's underway, and it's moving, and you're gonna hear a lot more about that going forward. We're well on our way. A lot of it is kind of slow, silent activity, where you're working with municipalities to get the entitlements, and we've done a lot of that. We're in a pretty good spot right now, actually. Great spot. Oh, yep. When you look at portfolio NOI by sales per square foot level across the 3 buckets, where do you see same store trending next year, you know, by bucket, and then how does it blend out? Boy, I'd be giving you guidance, wouldn't I? I would say, you know, again, you know, demonstrative of the leasing pipeline, you know, that we showed you know, we'll see positive NOI growth. I'll just kinda leave it at that. I don't wanna give you too much information and mislead you. We're not giving guidance right now. You know, we've got a strong leasing pipeline that's really not isolated or focused just on the, you know, the top quartile there. It's across the board. I would expect decent NOI growth in all three of those sectors. I mean, that being said, sales growth is best at the top, and rents tend to follow sales. I would expect our top 10 to outperform our bottom 10, for sure. You know, the middle two, it just depends on, you know, some big deals that we're working on in some places like Danbury and Deptford and other places where we've converted, big box stores into smaller stores. you know, the growth will be good. Generally speaking, the top 10 are gonna do better than, you know, the next 20 or 30. Scott- Oh. Can I ask about CapEx? You've done a lot of conversions. You're gonna do a lot of leasing. maybe just guide us through in terms of CapEx over the next several years as a percentage of NOI, revenues. How should we think about that? If you look at, you know, the last two years, our CapEx levels have not been unusual or extraordinary. I think on average, we're about $50 million of operating CapEx. In terms of TAs, again, nothing unusual. We give a lot of very, you know, clear disclosure on that. You can see that there's really nothing unusual. I'd say, you know, we're really capitalizing a lot of these anchor box backfill opportunities, and so a lot of that's been flooding through the development pipeline. We'll still see some more of that into next year. That's part of that $150 million expected spend next year. I wouldn't say there's anything extraordinary in this environment, you know. The biggest usage is right now just backfilling some of those boxes. As the team will tell you, not every instance are we spending capital. Many cases, we're delivering the box free and clear, and the retailer's spending all their own capital to refit that box for their operation. There's no cookie cutter approach. You can't say each one is $10 million or $15 million. In some cases, there's no capital, and we're still getting a pretty handsome rent relative to the prior occupant, so. Scott, that's a great segue into leasing. Yeah. We're gonna flip the script here a little bit, put the leasing guys up there. You're gonna hear the great news about what's going on there. You know, if you're in a room with a bunch of real estate people, everybody's got a white shirt on, a dark coat. The way you can tell the leasing guys is they're the guys that aren't wearing socks. Tom, I actually put socks on today. Oh, Michael. Michael. Thanks, Tom. Good morning. By way of introductions, I'm Doug Healey, Senior Executive Vice President of Leasing. I've been in this business for about 35 years. I cut my teeth down in Manhattan at a company called Corporate Property Investors back in 1986. Corporate Property Investors was known for owning and developing some of the best assets in the country, including Roosevelt Field on Long Island, Lenox Square in Atlanta, Boca Town Center down in Boca Raton, among others. They were later sold as one of the first big sales to Simon Property Group. I think it was 1998 for something like $4.8 billion, which was a huge transaction back then. Prior to that, I left CPI and went up to work for Wilmorite, which is a small, family-owned development business in Rochester, New York, primarily with assets in the Northeast. Some of which you probably know, we built Danbury Fair Mall, we built Freehold Raceway Mall, we bought and redeveloped Tysons Corner Center. Then in 2005, I came to Macerich by way of the Macerich-Wilmorite merger, and I've been here since. To my immediate left is F.K. Grunert, Executive Vice President, overseeing all of our assets in the East. F.K. has been in the business about 25 years. Started at Finard & Company in Boston, then I hired him in 1998 at Wilmorite, and like me, came to Macerich vis-à-vis the merger. He oversees properties such as- Acquisition. Sorry, Ed. Give yourself too much credit. F.K. oversees some of our best properties in the East, including Tysons Corner Center in McLean, Virginia, Queens Center in Queens, Kings Plaza in Brooklyn, Green Acres on Long Island, among many others. To my far left is Michael Guerin. Michael Guerin's been in the business about 20 years. Came to Macerich in, was it Michael, 2001, property management and operations. Quickly transitioned into leasing in 2004. Been here ever since. As you guys could probably tell from yesterday, he's definitely our luxury guru. Michael oversees some of our best properties in the West, including Santa Monica Place, Los Cerritos in L.A., Broadway Plaza up in Walnut Creek, Village of Corte Madera in Marin, and then, of course, the Arizona assets, Scottsdale Fashion Square, Kierland, and the others that you saw yesterday. That's the team, and I'll tell you, these guys are among the best in the business. I would put these guys and their teams up against anybody in our industry. I think the quality and the merchandising of our properties show that. Most of you in this room have heard me speak about leasing, just me. I'm going to give you all a break today and let F.K. and Michael take you through what they do every day. You're going to be privy to some very powerful information. You're gonna hear that it's a very exciting time to be leasing space in our sector. You're gonna hear about unprecedented retailer demand and record-setting leasing volumes. You're gonna hear about our best-in-class real estate in some of the most powerful markets in the United States. You're gonna hear about uses as opposed to traditional stores. You're gonna hear words like newness, transformational, experiential, repurposing, and reimagining. While metrics are always important, my hope is that you walk away from today with an understanding that leasing is as much of art as it is a science. It's what we do to create some of the best town centers in our industry. With that, I'll turn it over to the two guys that make this all happen. Thank you, Doug. Good morning, everyone. Great to see everyone yesterday. We just are gonna show you some examples and categories and different retailers, what we're excited about, what we're seeing out there. You guys all had an opportunity yesterday to see a living asset, how we're de-densifying, diversifying, curating, really creating a customer journey that matters. The customer is speaking, and coming back to us in the form of sales. Here we go. Yep, like Doug said, you know, we're amidst a tremendous transformational opportunity. That's what's exciting to us. Not the first two presentations you guys can focus on the debt with Tom and Scott. It's what is happening at these assets. Best-in-class assets. We're in gateway markets. It makes our job easier to an extent. We'll walk you through some of the examples of the newness, of the transformation into many different forms. It's in line, it's in the boxes. It's how we're curating at the assets, listening to our partners, the retailers, listening to the customers, and driving an experience that's texturizing our merchandise plan, and again, the customers responding by enjoying it and invoking all their senses, living there, working there, working out there, eating there, and really being alive and vibrant. Let me just work it through. How are we doing that? Again, we're knocking out obsolescence. We gave some examples yesterday. There's some examples on this sheet. We're adapting and changing how we're leasing based on the changing customer demands and how their preferences are changing. There's some great examples. You guys saw Allbirds yesterday. That replaced Ann Taylor at Kierland. Life Time Fitness, we have them opening in Q1 2023 at Scottsdale and opening in 2023 at Broadway. Biltmore, if you haven't been over there, 80,000 sq ft. It's at capacity membership of over 5,000 members. Unbelievable amenity to the asset. RH, Tom mentioned Restoration Hardware. 50,000 sq ft, 20% of the volume they're doing, which is significant, is F&B, which is a great driver to the asset to create further lifestyle for that customer. Tysons Corner, office, residential, and hotel tower and a plaza replacing Circuit City. Unbelievable experience in live, working, and playing at the asset. Prada, you saw that. As we were walking away from Neiman Marcus towards Center Court, unbelievable transformation. This is a great example of what excites us. You had a Stuart Weitzman, tired looking Ben Bridge, and we repurposed it with products. It's a flagship-type presentation, a great investment from the retailer in the asset. Tom commented, you'll see this, we're maybe a little bit redundant here, but it's exciting. We won't read every one of these names. What's exciting about this is, five years ago, half of these names we didn't even know about, and there's newness coming onto our desk every day. That's what excites us. You know, we signed over three million sq ft, you heard that comment, in 2022. 40% of that was new to Macerich. Again, that's what excites us. Ultimately, it's gonna serve the customer. They're responding in the form of using their wallets. Tom already showed this slide also. We're talking about momentum here. You can see the 860 deals, 3.2 million sq ft that we've signed so far year to date this year. What's exciting is the different categories that we're gonna talk about on this slide and the next one. I mean, as Doug said, I've been doing this for 25 years. I think I had a full head of hair when I started working for you. After 25 years, to finally have the newness that we're seeing now that we haven't seen and certainly didn't see coming out of the Great Financial Crisis is really fun for us to see. Also talking about the momentum, Tom mentioned this a little bit. You know, we have a real estate committee that we have every other week, to be moving into the tail end of the year and have 100 deals, which is double what we typically look at, really shows the momentum continuing despite the clouds on the horizon. Thinking beyond the box, this really Michael and I started this thought process about 18 months ago as we saw the, hopefully what we thought was the end of COVID, and really started thinking, again, beyond the box. The box could be 1,000 ft at center court. The box could be 200,000 sq ft in an anchor. We really started focusing on all these different categories, and we continue to do so. We're gonna go through some of the specifics on this as we move forward. We'll talk about the East. Jump to the next one. The East for me and what we oversee goes from Iowa to Connecticut and New York down to Virginia. You can see it here. It's about 18 assets, about 44% of the NOI generated out of this geography. I'm gonna jump right into it. You know, Tom mentioned at Danbury, National Resources is a group out of Greenwich, Connecticut, that has been around for a while and typically looks at transforming existing boxes. We signed a deal with them to transform a box at Danbury into UNO living, which will be micro units in a box. We think it's the first one that will be done in the country. We're excited to see where this goes and what opportunities it might present for us elsewhere. Green Acres, Valley Stream out on Long Island. Green Acres opened as an open-air-center way back when, was converted to an enclosed mall and added on to. Because of the open air dynamic, they use a truck tunnel underneath to service all of the retailers. That truck tunnel has remained unused, unmonetized for the last 20 years. We just recently signed a short-term deal with Emberly Logistics, specializes in office furniture. They see the value there. We're now talking about expansion and has also elevated the interest for other users for the space. Medical, hospital and medical. Michael's gonna talk about this as well on the west. We've had three wins, and what we're finding with the medical is that it's sort of a unique fit for every market and every location. Saratoga, or Wilton Mall up in Saratoga. Saratoga Hospital came in, tested half of the Sears box, was so successful, expanded, and just completed their renovation of the entire Sears box there. At Atlas Park in Queens, we're adding two deals with Northwell Health and pediatrics. All different sizes, different levels, different spaces, but it all seems to work. I'll just jump in there, F.K. This is a very important category. We created and developed an internal team that's focused on this. Between product and services, the wellness and medical market's a $1.4 trillion market. We have over 150 uses in our portfolio today. We have 229,000 sq ft, over 100,000 more working in our pipeline. We think there's a lot of runway here in this category. It makes sense, an aging population, expanding dollars being spent on healthcare. For our assets and healthcare leaving hospitals and aftercare being out of hospitals, it's a great marriage for our assets. It's accessible, we provide amenities, and that customer wants to be closer to their home, which is our asset. We think there's a lot of runway here. This is a fun slide to talk about, too. You know, we talk about great real estate, and all of these brands that you can see here always target the best real estate in each market. I'll start with the left with Target. You know, we announced Kings Plaza and Danbury Fair, Target coming in, and then Five Below, Barnes, and Ulta, all three of them, this is specific to Danbury. We now through COVID, with the opportunity that we've been talking about, all three of them have relocated into our center, just creating more of that retail densification that we're looking for. Hang on. Just go back to that for one second. Yeah. I have one comment. I think I alluded to this on the last earnings call. I have a different take on this slide because there was a lot of noise out in the industry about how the retailers wanted to be in lifestyle centers, open- air- centers, especially during COVID. Well, guess what? All those stores you're looking at there, Target, Five Below, Barnes & Noble, Ulta, they're traditionally power center tenants, lifestyle tenants. Guess what? They're choosing the best real estate in the market, and that best real estate isn't a lifestyle center. It's not a power center. It's Danbury Fair Mall, a traditional enclosed center. That's a good point. When we sit with Ulta next week at New York ICSC, I'm sure they're gonna tell us like they always do, "We don't go into malls," and then we'll talk about the mall deals we've done and the next ones we're gonna do. It leads to beauty. you know, Ulta and Sephora, we continue to expand our footprint with both of them. Sephora, we just recently opened at Kings, which was a big win for us. Fitness, Michael's gonna talk about fitness some more. Specifically on the East, we just recently signed deals with Crunch Fitness at Eastland Mall out in Evansville, Indiana, and in Deptford in an old Sears TBA. Education, Goldfish Swim School, I'm not sure if this is education or entertainment. I guess it depends on if you're six or if 30. Again, we've backfilled a space at Atlas Park that we weren't really sure what we were gonna do with it, again, great use. Gonna add to those footsteps and traffic on a daily, weekly basis to Atlas Park. Grocer, you know, as we continue to diversify and try to be the destination of every day, we just recently opened Heirloom Market in Philadelphia. We're under construction with Lidl Freehold, and we hope to have some more announcements on grocery soon. F&B, dining and fast casual. Michael's gonna talk pretty lengthy about this. In the East recently, you know, we have great partnership with Shake Shack. We just opened them on a pad at Danbury with their new app through. I think it might've been the first one in the country. We have a new Shake Shack opening at Kings Plaza this fall. Pretty excited about that. We obviously have them, Queens, Tysons, and a number of locations out west. Hold on. Back just a couple more there. The other thing that we've focused on as we're coming out of it is the local, and the local F&B, which really seems to elevate the experience at our locations. We did Danbury Diner in a pretty tough space at Danbury, but they're very excited about. They'll open this fall. I wanna just touch base on Bonesaw Brewery. We have two locations in New Jersey, not with Bonesaw, two malls in New Jersey. The blue laws in New Jersey make it very difficult for us to add F&B just 'cause of the cost of the liquor license. The team went out, found out that if you add a brewery and they brew in space, you don't have to go through the liquor license. We get to add the food and beverage creatively without the expense. Kudos to them for doing that. We continue to expand our footprint with The Cheesecake Factory. Entertainment, I'm not gonna go through all of these. It's a great add for all of our assets. We continue to push to add and diversify our entertainment uses. Michael will speak about this some more in a little bit, as will Ken. Technology, I put Apple. I mean, we continue excitedly to expand our footprint with Apple across the portfolio and also within each of the locations where we have Apple, showing their long-term commitment to our strength, our strong centers in each of the markets. Last, Tom mentioned two of the international fast fashion, Primark and Zara. I did confirm with Primark yesterday morning, we are still their number one U.S. landlord, and we're proud of that. We have landed Primark at Danbury, Freehold, Philadelphia, Kings Plaza, which we'll talk about in a second. Green Acres, they're under construction, will open in spring of 2023, and about 50,000 sq ft and two levels there. Tysons Corner Center, they're gonna open in fall of 2024 and two levels there. That rework of space also allowed us to expand our lululemon similar to the one that you all saw yesterday. They just announced their new deal with us in 50,000 sq ft at Queens Center, which we're pretty excited about. We've talked about Queens. The team that works on Queens in New York calls Queens the Beast of the East. It is for us. You know, $1,700 a sq ft. With that reputation, it's been fairly difficult for us to come up with space. The opportunity that we've been talking about, coming out of COVID allowed us to put together 90,000 sq ft of contiguous space at Queens, which other than the expansion that we did, I don't know has ever been available at that center. Between Primark, which is gonna take about 50,000 sq ft of that, and another tenant that'll take the additional space, we anticipate that the sales for that same space will be 5 times what it was from the previous three tenants. We're pretty excited to see that. Unfortunately, as Scott said, you know, we're gonna have to take space offline at Queens for most of 2023 while we get those stores built out, but it'll be a really exciting addition for us. Zara, a great partner with us, east to west. Zara, you know, Michael and I were just looking at sales this morning, double-digit, high double-digit increases, across our portfolio out of Zara right now. The nice thing about these two groups is they really work with us as we try to transform our assets. I'm gonna flip to the next slide. You know, we talk about what happened at Kings, you can see here on the left, this technology here will work for us. As we looked at and thought about what we were gonna do at Kings with the Sears box that basically has looked like that since the sixties. We had interest from Primark, we had interest from Zara, we had interest from Burlington, and now we're gonna add Target. If you take a step here. What we went for for curb appeal or threshold experience from before to after, extremely transformational. More exciting than this even is that same box that housed those between Zara, Primark, Burlington, Target, we think we're gonna have six times the sales that we had did out of the previous user. Pretty exciting for us. Yeah, fantastic. Very exciting. Power of the real estate, absolutely. I'll walk you through some examples in the west. Scott had this slide up. It's, you know, just, again, the power of the real estate, all the assets that are in states that touch the Pacific Ocean, as well as Arizona, composed about 55% of the NOI. It's a great focus for us on the leasing side, and we're able to grab a lot of synergies and leverage these assets with one another to create leasing momentum. One other quick data point here. You know, Tom put up our top 10. Three of those are in Arizona. As you know, Scottsdale, Kierland, and Arrowhead. Three powerhouses reside in Arizona alone. Medical, you heard the data point that I gave. This wasn't on our radar 12 months ago. We just made two deals with BioLife Plasma. It's they're from Japan. Takeda owns this company. One of the largest pharmaceutical companies now in the U.S. We did two deals with them at Lakewood Center and Washington Square. 12,000 sq ft plus. Newness took out vacant spaces or occupied vacant spaces. Great opportunity like I was pointing out before. Museums. ARTE MUSEUM, 21,000 sq ft at Santa Monica Place. Attracts 250,000-300,000 people a year. you heard Tom mention, I think, yesterday on the tour, we'll be adding Din Tai Fung to this floor, third level, Santa Monica Place. You'll hear Cory talk about Korea's largest immersive digital art exhibition and ARTE MUSEUM that will be coming on this floor as well. These are unique, they're creative, they're traffic drivers of the communities. This one particular concept brings families, children, and obviously there's a lot of synergy in what they'll shop in addition to visiting the museum. DICK'S legacy brand, dominant in their category. We only have 16 in our 44, 45 assets, so a lot of runway here. This is a great example in Modesto, central California. We replaced obsolescence Sears with a 50,000-square-foot DICK'S. It's doing phenomenally well. A 35,000-square-foot Dave & Buster's. Again, newness, repurposed, a different reason for the customer to visit the asset. SCHEELS, you'll hear more detail about this. This is incredibly exciting. This is just an example of a replacement of an entire box, 220,000 sq ft. It's an experiential type department store. Dave will walk you through that. This should do 4x-5x the volume that the previous tenant did in this location. Home furnishings, we saw this really flourish during COVID, over 2019. Sales are up over around 30%, so it's a very vibrant, robust category. What's exciting about this slide, you see the beauty and the investment that RH made in Marin. I've already commented on that. Phenomenal. Again, it was in the parking lot, so a great additive element to the asset. Arhaus, we have six of these. You saw Kierland yesterday. That's our number one performer in the portfolio. Where this rendering or picture here is Twenty Ninth Street in Boulder. We're relocating them, expanding them. It'll be a flagship type presentation investment by Arhaus. Also you saw Lovesac at Kierland. We have 14 of those in our portfolio. We'll expand more locations with them. You have new entrants, Parachute, Interior Define, Purple, Avocado. Again, all this newness, brands that we didn't know about not so long ago are coming on to the scene. Industrious, you saw this, two levels at Scottsdale Fashion Square, 33,000 sq ft. Part of the recomposition of that Barneys box with Apple. Beautiful presentation by both of them. We also now have them at Philadelphia, Broadway Plaza, Country Club Plaza. You saw Scottsdale. F&B, I think this is, you know, this obviously was a hurting category through COVID, and now we're seeing great comps working our way out of COVID. People are, you know, thirsty, no pun intended, but wanna get out and eat. They wanna experience, they wanna be with other people, their friends, their families. There's no better opportunity for us to texturize our plans by bringing in newness in the format of F&B. A correlating fact with all our total signed deals, we've signed about 100,000 sq ft of restaurants in 2022, currently, and 40% of those, that 100,000 sq ft is new to Macerich. Again, bringing new brands, taking out obsolescence, tiredness, and bringing in, you know, a new reason for the customer to come. You can see a couple names on here. You guys saw Francine, Toca, and Nobu yesterday, all doing incredible business. Riddle & Joe's in Broadway, coming to Walnut Creek and Broadway Plaza. A real heritage localized brand from San Francisco. Lulu on the Tom mentioned third level of Santa Monica Place just opened, and that's doing great, and that will be a great complement to the Arte, the Cayton and Din Tai Fung. A real redo of the third level of Santa Monica Place. Entertainment. You know, not only are we have a robust pipeline, you see Pinstripes, they're opening in 2023, 27,000 sq ft at Broadway Plaza. We're working on a couple of other specific deals with them. You have Round 1 has four Spo-Cha. It's More of their flagship presentation. There's about 48 Round 1s in the U.S. There are four Spo-Cha's. This will be the fifth one at Arrowhead Town Center, will be about 83,000 sq ft. Again, giving the customer a reason. What we like about entertainment, in a lot of these uses, it's driving a different day part. It's feeding the nighttime traffic, weekend traffic, so it really rounds out again, the reasons why someone will visit the asset. It gives them another time of day. Dave & Buster's, I mentioned at Vintage Faire Mall in Modesto, being a partner to DICK'S. Life Time, this is best in class. If you haven't been to one, you need to go to one. It's really an opportunity for someone to enjoy wellness, bring their families, lounge. There's F&B. The real flagship amenity to our assets. This is Biltmore, 80,000 sq ft, like I mentioned prior. Broadway and Scottsdale opening next year. Really excited about having. You'll hear Cory talk about fitness and wellbeing being added to Santa Monica Place. Great category. A lot of opportunity for us in our portfolio, and they wanna be in the best real estate. Nike, we put this on here. This is Nike Live. We have one Nike Live. We have other Nike representation, but one of the best brands in the world, as we know. They've had a much criticized D2C plan. They announced publicly they were gonna open over 200 stores. In Miami, they just opened their Nike Rise concept, which is their flagship sports-oriented. They'll open these Nike Rise in big sports towns and urban hubs. They also have Nike Live, which is a more localized neighborhood-type approach, where they really cater, based on their digital platform, to what the customer's preferences are in any particular market. We see a lot of runway here with Nike as well. Great brand, great signature. We're excited about it. Vuori athleisure, everybody's wearing athleisure. What a booming category. We always thought about this category with lululemon and Athleta, and that's exciting. We're expanding our footprint with Athleta. Lululemon, in the downturn, speaking back to the quality of the real estate, they were very smart, strategic. When they saw opportunity, they're expanding. They relocated and expanded at Scottsdale. They expanded at Broadway. They were adept at grabbing the best real estate when it became available, and a real powerhouse, both in their signature and then their performance. What's exciting about this sheet is you also have new entrants. You saw Alo Yoga. They're at Scottsdale. We walked by it in the Nordstrom wing. The redo of the Z Gallerie space at Kierland, partnering with Vuori. Unbelievable redo. The volume that we're seeing initially is pretty exciting, fantastic, to say the least. Fabletics, we have seven of those in our portfolio. We'll continue to expand them. You know, you got a combination of legacy, and you've got a combination of additive new entrants to the category that are driving a lot of volume and putting a lot of investment in our assets. Electric vehicle, Tom mentioned this. You know, our first Tesla opened in Scottsdale in 2012. It was a one-car show for a while, with the preferences of the consumer, again, and more people driving electric vehicles for the environment, you have Lucid come on onto the scene. VinFast, we opened two VinFast. It's a Vietnamese-owned electric vehicle. Polestar has about 43 locations in the US. They're number one performing assets in Marin, or stores in Marin at Village of Corte Madera. You're seeing, again, new entrants, somebody that's been around a while, Tesla, but then you have a lot of competitors and new entrants, and they all offer their own value proposition. You know, VinFast and Polestar are probably more moderately priced. You know, you've got Lucid in the luxury, and Tesla at their upper end is definitely a luxury price point. Aritzia, we're really excited about this. You guys all know Aritzia. They have just over 40 locations in the U.S., so there's a lot of runway for them. They're international. They're best in class. We have a few in our portfolio. They're doing over $1,000 a sq ft. When you look at apparel, we looked at one tenant yesterday at Kierland, no name mentioned. You look at that performance and you see these guys coming to the U.S. They individually design each one of their stores. They create a real environment. They have both vertically integrated merchandise. They have third party label merchandise, and they're best in class. They're building a great store. They're driving a great environment. I was just in one last weekend with my daughter. The service is phenomenal. That's what matters when we're looking at these new stores. How are they operating on the asset? How are they treating the customer? Those are the brands that are gonna win and have long-term viability. Chanel, you know, I don't have to talk about the name. It's unbelievable. This replaced Papyrus. It's a fragrance and beauty concept. I think there's about 13 or 14 in the U.S. We have two. So we're I think we got a good run on them, and we'll add more stores. Broadway will be opening. Kierland's open. You saw that yesterday. Unbelievable branding, unbelievable name, and again, signature on our lease. Dior, you saw this. The, you know, I'll talk a little bit more on the development about the luxury. Again, when we're talking about transformation and repurpose and newness and evoking the customer's senses, and this couldn't be a better example. As you walk into Scottsdale, you guys all enjoyed it yesterday, complete transformation. A two-level flagship. Luxury. We love the luxury category. We're not overexposed as a company, but it's, you know, a category that's more resilient in downturns. You're seeing tremendous growth, 22% over 2021, which comped 20% over the previous year. You expect, you know, between the Gen Y and Gen Z, you'll see, you know, this grow 60% by 2030. It's a $350 billion personal goods market right now. You could see this at $550 billion-$600 billion in 2030. We're excited about the category. That's it. You've used all your words. I left management, by the way, 'cause they made me wear socks. Just kidding. [crosstalk] Mike, sorry. I've... Go, go. Yeah, I've got a question maybe on one of the interesting things that I don't think you guys get enough credit for, perhaps is, you've added a number of the Targets to your portfolio. What percentage of your properties have a grocer or a grocer element, if you add up all of the Targets and all the other types of grocery sales? Maybe also talk about what your% of space in your mall is for restaurants or F&B. And is there a difference between your best malls and your B malls that you have left in terms of the% of restaurant space that you would wanna have? Yeah. Go ahead. I was going to say, yeah, we see opportunity. What's exciting about that question is the grocery element. Again, when we're talking about live, work, play, and giving the customer reasons to come to the asset, we absolutely have opportunity to add more grocery. It'd probably be on a smaller basis, that, from a percentage standpoint. Again, a lot of opportunity for us to add that type of category to our assets. The second question, you know, when you're looking at the, you know, the higher performer versus lesser performers, some of the examples on our presentation weren't all Scottsdale Fashion Square. Even in, you know, not as exposed markets or not as, you know, sexy markets, yet we're seeing localized newness, new restaurants. You've seen it across the portfolio. In any given mix, we're probably 10%- 15% of our merchandise mix is in the form of seeing it at the high end, you're seeing it at the mid-market as well. Brands that recognize these assets, they're not Tysons and Scottsdale. They're, you know, they're in Modesto, they're in Fresno, they're in, you know, Thousand Oaks. There's great assets, but they're not as recognized. You know, they're not on our top 10, and they're doing phenomenally well in the merchandises. It is a great question, and it is early days. I don't have the percentages of grocery or F&B, but it's not a huge percentage, but it's gonna be. You know, as we continue to add F&B, grocer, you know, Michael and F.K. talked about discounters and luxury and restaurants, entertainment, experiential. That's why we refer to our properties now as town centers. We're really transforming what was a traditional style regional mall into what really is a town center. Just a question on general tenant credit. It seems like this amazing environment where tenant credit is awesome, right? It's still well below average. You know, retailers follow the cyclical pattern, and at some point they'll start, you know, choking and we'll have workouts and all that fun stuff. How long are you underwriting as you're doing your leasing and doing deals? Are you underwriting this, you know, wonderful credit environment? Two, is there something fundamentally different about the retailers now, like how their balance sheet positioned versus, you know, pre-pandemic, where we saw there was always a constant list of tenants that we were worried about? Right now, it doesn't seem like we're really worried about many tenants. Yeah, I think Scott can take the underwriting part of it. He alluded to it. You know, if you think about it, pre-pandemic, there were a lot of retailers out there that were struggling and probably would have failed over time, three-five years. The pandemic really accelerated their failure. We're left with a retail environment that is very strong. The retailers have very strong balance sheets. You know, we review them constantly when we're doing deals and we're not doing deals, just to make sure that our watch list is proper. I think, Scott, you have the statistic on this. Our watch list is, I think, 85% less than what it was pre-pandemic and number of tenants on it. We're in a really good spot right now when it comes to retailer health. Doug, you didn't even embellish that statistic. That's the number. I'm sorry? I said you did not embellish the stat there. No, I know. That's the number. It's maybe the first time today. I'm in leasing. Alex, an interesting and ironic comment is, as we were heading towards the pandemic, we had a number of tenants on our watchlist, one of which was GameStop. Lo and behold, we had the Reddit run up, and GameStop went out, and they raised a lot of equity. We still keep a close eye on them, but they're no longer on our watchlist, and they got a great balance sheet. There's a couple other tenants that fell in that category, but I'm not gonna name them because you guys might put it in print. It's the healthiest retail environment we've seen in probably the last 30 years. I think we had three spaces this entire year that have gone bankrupt. That's it. That's a record, for sure. Thank you. I was just gonna ask, what's the company's leasing philosophy today on, you know, the portfolio sitting with retailers, your A malls versus B malls? You know, does each asset stand on its own or, you know, are you trying to help the Bs with the As? Like, what's the overall philosophy today? Yeah. Absolutely. Yeah. There's a definitely a certain amount of. First off, we're listening to the retailers. We know our customer in the markets that we have assets in. We're listening to the retailers' proposition of who they think their customer is. We're making that synergy with our assets. Absolutely, you know, with the quality of our portfolio, yeah, like we were talking about this market, if somebody asked yesterday about competition. If somebody's looking at Scottsdale Quarter or wants to go to Quarter, but they wanna get into Scottsdale Fashion Square, of course, we're gonna leverage that conversation and say, "You should be at Carol May," if we want them. To Kim's point, we don't have a lot of opportunity there because it's so well-leased. But we'll absolutely have that leverage scaled conversation. Again, I don't like the word leverage. It's more, you know, satisfying the retailers open to buy and helping them satisfy their rollout. Like, when you come to Arizona, if you're not represented, we can solve that for in the west, in the north, the southeast, and we can do a 3 to 4, 5 store market rollout for them and satisfy the whole plan. Yeah, absolutely. I'd also say that projects like Scottsdale and Tysons are more of a calling card, right? Everybody wants to be there. You know, I'm gonna roll something out, I'm gonna start with that, and it really gives us an opportunity to educate them about the rest of the portfolio and what's going on. It's not so much a leverage as a, "Hey, did you hear what's going on at Danbury? Did you hear what's going on at Freehold or The Oaks?" Because they probably haven't because they're so focused on those. It's really more of an education process. My follow-up is, I guess, are you then happy with the size of the portfolio? You know, from our seat, we still think about, you know, larger might be better in retail. The more quality centers you own, maybe the more leverage you have with the retailers. Do you wanna add any other product type to the portfolio? I know you've done outlets like, you know, I guess could you talk about that? I would let Tom and Scott answer the acquisition or disposition of the size of the portfolio. They commented on that. With respect to deal making and leasing, now I think we've got a great representation of different types of assets, different locations, different markets, again, fortress assets in gateway markets. It gives us a lot of leverage. I said earlier, to an extent, it makes our job easier. To F.K.'s point, when these retailers and we're educating them about assets they may have not known about, they see the newness that we're bringing in, the different categories that we're bringing in, and that also helps us make the progress. I think we're well represented in, you know, luxury, core operating assets, lifestyle assets, outlets, so we've got a great sampling to work with the retailers on. I would say when it comes to leasing, really, it's more about the quality of our portfolio as it is about the size. You know, bodes very well for us given our quality. Hey. Theater tenant exposure, thoughts on that type of tenant credit, how do you think about backfilling a theater these days? What kind of costs are there? Just in general, how are you thinking about maybe pushing out weaker tenants? Are you letting them stay in the portfolio until failure or actively pursuing to push them out and backfilling the stronger leasing environment? Well, I'll take one part of that. I mean, it's part of our job every day to monitor the movement in any particular shopping center, whether it's, you know, a frictional vacancy that we're creating as we move brands around to create a better merchandise plan. You know, we're absolutely monitoring and studying performance. When we have opportunity in natural lease expirations, sometimes we have outs that we put into leases that we can control the real estate. It's part of our job to pay attention to that movement and try to optimize the plan with a better performing or better renting tenant, which is two elements, obviously, we're looking at closely. Theaters, you know, I won't provide the detail, but, you know, the number one theater, you know, representation in our portfolio has got a tremendous balance sheet. They're really strongly performing. For some of the theaters that have been in the markets with a lesser balance sheet or lesser positioned balance sheet were very slightly exposed. In the theater category where we feel very good in AMC, where Tom was talking about the meme run up and what they were able to do with their equity in the stock market was valuable for them as well. Repurposing, you'll hear Cory, we have, I think, you know. I'll give you two great examples. We just made a deal at a center in Arizona where theater went out. The team flew to a different market, met an operator, and they're bringing us theater into that asset. Then you'll hear about Santa Monica Place with ArcLight Studio going out, and we've got a great backfill of that location as well in its entirety, the whole box. We don't have a lot of exposure to Regal theaters. That's it. Not a lot of exposure. Generally speaking, if we don't replace a theater with another theater with a stronger balance sheet, we've got better uses. We'll hear about that shortly from Cory Scott when he talks about what's going on at Santa Monica Place. All right. Thank you, everyone. Thank you very much. Thanks, everybody. Okay, everybody, we're gonna go ahead and jump right into this. Good morning. It's great to see everybody. Great to see everybody last night. By way of introduction, I think we met most of you last night, but I'm Dave Short. I'm the Executive Vice President of Asset Management for the West. Joining me on stage today is Cory Scott. He's my counterpart in the East, Executive Vice President of Asset Management also. Today, we're gonna be talking about an important subject, and that is repurposing and transforming our anchor spaces. Very important topic, a topic that has been discussed a lot among this community. It's certainly an important one to us, discussed a lot internally, and it's very, very important. They don't call 'em anchors for nothing. Traditionally, these boxes have been occupied by department stores. Many of those department stores have lost their way over the years. There's two poster children out there that I'll try not to beat up on too much. For a number of reasons, many of them have come back to us. Sometimes when we think about anchor stores coming back to us, we think about the challenges that come along with that, in the form of costs or downtime or that sort of thing. As mall owners, we look at that as a big opportunity, for a number of reasons, and we'll go into that as we get through the slides here. As we think about anchor boxes, there's generally three big tranches, or three big areas that we look at when we're talking about repurposing them. One is with a single user. That's not as popular, a replacement as it maybe once was, but it still is an opportunity, and we'll talk about one of those today. Another one is multiple users, where we take the existing box and we redevelop it, we break it into pieces, we add more diversity, different uses, that sort of thing. The last one, which is a very interesting one, is really more of the redevelopment angle, and that's where you take the box, you scrape it, you take that FAR, and you redeploy that into a mixed use type of redevelopment. Cory and I are gonna talk about the first two today. You'll hear a little bit about the third from our development team as we, as we move on through the presentation today. What are we trying to accomplish with these boxes? On the right side there, I think first and foremost, we're trying to drive center value through diversification of uses. A lot of these original department stores have lost their way. They were no longer exciting. They weren't investing in the business. Their sales had declined, that sort of thing. By diversifying uses, we were able to bring different types of operators in and make the center much more exciting. What does that do? It expands sales and traffic. We'll give you a few examples today about how some of these replacements are increasing traffic and sales dramatically, and that helps in a number of ways across the center as we lease it up. Creating customer experiences. Once again, some of these older department stores aren't the greatest of experience, and the replacements are. We feel really good about that. As we know, in the bricks and mortar world, in the mall world, being able to create good customer experience is a significant point of differentiation for us versus, say, online retailing. Improve center co-tenancy to better drive rents and occupancy. Very important. Our leasing team in the room will tell you that by bringing in these exciting new uses, by improving these boxes, that it has dramatic effects on our ability to lease up and improve the interior mall space, which is where so much of our revenue comes from. Lastly, expanding the trade area and broadening the appeal of the center. Several of the uses we can bring in just make the center better, make it more interesting to customers, and expand the trade area, and we'll give you an example of that as we walk through these slides. Moving on, we're gonna walk through a couple of in-process projects across the portfolio. The first two I'm gonna talk about are former Sears buildings, and we'll just jump right into that. Danbury Fair. Danbury Fair, great mall for Macerich, a large center, 1.3 million square foot super regional property located in Danbury, Connecticut. I talked to a few of you last night, and some of you actually shop this mall. It might be your mall. Great community, affluent center, high growth, high quality of life, close to the New York Metro area, has benefited tremendously from work from home. Great center. This is what it used to look like. It was originally a Sears building, 178,000 sq ft, very underperforming. Sears had put no money into it, not exciting, wasn't the best of anchors for the balance of the center. In 2016, this was converted into a Sears-Primark combination. It was one of Sears', last-ditch efforts to improve their brand. They reduced the size of the store, leased a portion of it to Primark, and that ultimately, we all know how that ultimately ended. We ended up getting that business back in June of 2021. Going to the next slide, you heard us allude to this earlier. We were able to, based on strong demand at the center, we were able to make a Target deal here. We executed a lease with them in May of this year and importantly, got that done just 11 months after we recovered possession from Sears. It's a 126,000 sq ft unit. We expect to deliver possession in spring of next year, and we expect them to open one year later. Importantly on this, we were able to complete this deal at a very strong rent with very little cost. They're actually spending, you know, the lion's share of the money to build out and refit this space. Just testament to not only a capital-friendly deal, but also testament to the strength of our real estate that we're able to execute on these sorts of things. Jumping ahead to the next slide, you know, what do we like about this deal? We love the traffic increase. I won't get into numbers, but suffice to say, we expect the traffic generated by this to be enormous. Not just 10% or 50% even increase over what was there before, but a multiple of that. In terms of higher sales, you'll see the note there, 10 times higher sales. We know what Sears did by itself before, and we know what Primark is doing now, and we have a pretty good idea of what we think Target will do. We're pretty confident when we say that we think ultimately this will do 10 times the volume of what Sears was doing before. Once again, this just demonstrates the power that this brings to the center. Jumping down, we're also F.K. alluded to this before. You'll see some other brands there on the top where we were able to part and parcel with this, bring in other large users that we like to the center, like a 60,000 sq ft Round 1, bringing an entertainment use to the center, which we really like. Five Below and Barnes & Noble, which we like a lot. Along the way, we've expanded DICK'S here. Once again, lots of momentum here in the box department, which only serves to help what we're doing in the middle of the mall. This next slide just shows a site plan representation of what this looks like. At the far left end of the center, where you see the red and the blue, that's where Target and Primark are. Immediately to the right of that sort of gray block, you can see we took a big block of mall space, and we're able to do Barnes & Noble and Five Below there, thus making the mall shop space a little bit smaller and creating more of those, strip center type uses there. Over to the right, we were able to do a 60,000 square foot Round 1, and that's all in addition to doing some peripheral leasing here and obviously making some real good strides on the inside of the mall. The next center I'm gonna talk about, similar, as I mentioned earlier, also a former Sears box. This is Deptford Mall in Deptford, New Jersey. This is a nicely sized one million sq ft regional mall. Very strong orientation to family, dining, food and beverage and entertainment. Sort of a fun fact of this mall that sort of demonstrates its family orientation. This is always the number one Santa Mall in our portfolio, go figure. Obviously, very big orientation toward families here. Jumping to the next slide, this is what we had here. This was a 192,000 sq ft Sears store. This came back to us as a rejection during the Sears bankruptcy in May of 2019. Once again, presented a big opportunity for us. This particular location on the site is right at the front door, right at Main and Main. Very good real estate, front of the center. As a result, no surprise, there was significant demand for this box. After thinking about what we wanted to do here, we figured the right thing to do here was to split up this box. There was a DICK'S Sporting Goods across the street that was in an older store. We were able to relocate them into the lower level of this building in 64,000 sq ft. We love taking retailers from the competition. We were also able to secure a Round 1 in 49,000 sq ft on the upper level. Both of those uses front the enclosed mall, providing that cross-traffic that is so beneficial to us and beneficial to our leasing team. Then for Round 1, we also have a, you can kinda see over in the right there, a launch pad. You can not only access them from the enclosed mall, but you can access them from the exterior. We were able to identify these uses early. Once again, the building came back to us in 2019. We were able to identify these uses early, and we were able to get this project going, do this construction largely during COVID, so we didn't miss any time. This building continued to chug along. Then along the way, we added Crunch Fitness in 28,000 sq ft in a TBA. We added a Republic Bank on a pad that did not exist before at a very favorable ground rent. And then as you can kinda see along the bottom there on the left, we also added some wall shops, exterior facing, to add a little exterior expression. Now, one thing that's not shown on this slide that I wanted to comment on is as a part of this project, we also worked with our anchors to get another permissible building area on the site, which will allow us to add another pad and further add revenue. Great overall outcome here. What do we like? Lots of momentum. Once again, strong traffic increase, which benefits the enclosed mall. The Republic Bank pad. We love bringing in DICK'S from a competitor. DICK'S, by the way, is doing 40% more volume attached to the mall than they were doing across the street pre-COVID. Diversifying the use with entertainment, fitness, food and beverage, and once again, the addition of the pad. Just lastly, the site plan depiction of this. As you can see on the left side of the center there, that sort of pinkish purple, that's the box, the former Sears box, where we were able to make these uses. Then to the left of that, the Republic Bank pad. To the lower left, is where we did the Crunch Fitness. With that, I'll turn it over to Cory. Great. Thank you, Dave. When you get this far down the agenda, some of my surprises may have already been taken here this morning, but I'll do my best to keep at least some level of surprise, hopefully before I'm done this morning for you guys. Santa Monica Place, one of our absolute jewels on the West Coast. A shopping center that Macerich purchased back in 1999. Shortly after we purchased it, we recognized there was a tremendous opportunity to redevelop this shopping center into something really special. In 2008, we began a massive redevelopment project for about $250 million, where we ripped the roof off the project, turned it into an open air shopping center. Two levels of retail, a beautiful third level with a food court, lots of great restaurants, and an ArcLight movie theater as well. Santa Monica Place, located in an absolutely amazing location. It's just a couple blocks from the ocean, couple blocks from the iconic Santa Monica Pier. The tourism traffic there is just off the charts. There's 3,000 hotel rooms and 30 different hotels within a one-mile radius of the shopping center. It sits at the southern end of the beautiful Third Street Promenade, which is just a premier destination down there, and enjoys great parking, which makes it a really good shopping destination. Since redeveloped in 2010, the leasing team has done a really good job of making sure that we merchandise the shopping center to really focus on our core shopper. Again, Santa Monica is kind of a unique area. We've got 1/3 of our shoppers come from kind of the local market and our daytime population. 1/3 of the shopper traffic comes from domestic tourists, and a third of it comes from international tourists. A little bit unique with the offerings that we get there. The pandemic of 2010 hit our urban shopping centers the hardest, and Santa Monica Place was certainly no exception to that. We suffered government-mandated shutdowns for several months during 2020. We had civil unrest within the community that led to some property damage with almost 20 different storefronts being impacted at the shopping center. In the midst of all of that chaos, we were notified that two of our long-term anchor tenants at the shopping center were gonna be closing their doors. Bloomingdale's announced they were gonna close their 100,000 sq ft store on the southwest corner of the development. ArcLight movie theater announced they'd be closing the theater in 50,000 sq ft directly on top of Bloomingdale's box. Despite the sting of those two key losses, we re-recognized that this was gonna be an unprecedented opportunity for us to reimagine and transform the shopping center. We now had a perfect three-level, 150,000 sq ft box sitting beautifully on a corner location of Colorado Avenue and Fourth Street, directly across the street from the light rail station that was now bringing millions of people to our front door every year. We wanted to stay true to merchandising that was gonna focus on our core shopper that I mentioned earlier. At the same time, we wanted to make sure we brought in a new level of uniqueness and really focused on boosting traffic, especially during the daytime population to the shopping center. We left no stone unturned as we looked literally around the world in this case to find the best uses for the shopping center. As Tom mentioned earlier, we focused on three uses. We're gonna have a ground level fitness use, a second-level coworking, and on the third level, a new entertainment concept, as mentioned a couple times this morning, ARTE MUSEUM, which will be on the third level. We are in the process right now of finalizing the leases for the fitness and coworking. We should be able to announce those users soon. As also mentioned earlier, we literally signed the ARTE lease last night. On the ground floor, 50,000 sq ft fitness space, we discovered a high-end full-service health club and wellness concept. As those of you who know Santa Monica, you know that the wellness-focused lifestyle is a really big part of the fabric of the community. We wanted to make sure that we focused on a high-end concept, as today we feel the Santa Monica market is underserved in that category. We've identified a user that's anticipating 5,000 members and almost 1 million total visits every year. As you heard from Michael and F.K. just a minute ago, we've had great success with fitness across our portfolio to date, with great names like 24 Hour Fitness, Life Time, and Crunch, and we look forward to building on the fitness concept here in Santa Monica as well. In the middle position, we will have a 50,000 sq ft full-service coworking space. As you've heard several times today, we absolutely love the synergy and energy that's created when you bring retail and office together. Whether it's the 500,000 sq ft office tower at Tysons or it's the 30,000 sq ft coworking space in Scottsdale, there's just great energy that's brought together when you put the two in the developments together. The office users love our ample parking, unprecedented amenities, and the vibrant atmospheres. Our restaurants and our retailers love the daytime traffic. They fill up their coffee shops, bring in the lunch crowd, and fill them during the happy hours. Now, as you've heard, a couple times this morning, it's my pleasure to introduce ARTE MUSEUM. Very excited about this new concept for the third level at Santa Monica Place. ARTE MUSEUM is designed by a Korean-based company called d'strict. d'strict is a world-class digital design company with a long track record and a very distinguished client base that includes great brands like Samsung, Tiffany, and Dior. They kind of stepped out of their box a little bit here, where they've now created this new interactive museum concept, which will combine their artwork, excuse me, and their new digital technology into a ticketed immersive art experience that is truly like nothing else that you'll find in the market. Excuse me. As Tom mentioned, several of us got to go to Korea, meet with d'strict, and visit ARTE MUSEUM. I can tell you the amazing visuals that you get here from this video really do no justice to the unbelievable experience that people are gonna see when they get to experience this at Santa Monica Place. This will be the very first flagship location in the United States and will be exclusive for the Los Angeles market when it opens late next year. Also as mentioned earlier this morning, we expect really strong traffic. ARTE MUSEUM is estimating an average of 3,000 people every day for almost 1 million visitors a year to the museum. Again, as we touched on earlier, the full box with all three tenants should be open in 2024. We're looking at a total capital spend of $35 million-$40 million, 22%-24% return on capital. Now I'll turn it back to Dave and maybe get a drink of water. Few miles south of us, want to talk about Chandler Fashion Center, one of our top properties in the valley, a big center, 1.3 million sq ft, situated in Chandler, which is one of the top fastest-growing markets in the country. Very family-oriented, very educated, really a great market, home to what we call the Silicon Desert around here, which includes employers like Intel and Orbital Sciences and Microchip Technology and many other high tech companies. Moving along to Chandler and talking about the opportunity here. This was a 144,000 sq ft Nordstrom building that came back to us during the middle of the pandemic As you may recall, Nordstrom was rationalizing their fleet of full line stores. It was a good performing store, as you know, they decided to adjust their fleet. Now, typically, mall owners don't like it when they hear that Nordstrom is planning to close, once again, at Chandler Fashion Center, we viewed this as an enormous opportunity for us. As mentioned earlier, the horse we've chosen to ride here is SCHEELS All Sports. When looking at this, we looked at a number of different options before we chose SCHEELS, including office, residential, and retail, all of which were viable. We did pro formas on all of them. The idea of splitting up this box was very attractive to a lot of retailers. At the end of the day, we settled on SCHEELS because of the many benefits that we think it brings to center, which I'll go into in just a moment. This shows an aerial photograph of the site. And you'll notice on the left there, the positioning of the former Nordstrom box in the 144,000 sq ft, and you can see it depicted as an expansion in the kind of red color. If you keep going to kind of the upper left, you'll see Chandler Boulevard, which is the main drag in Chandler, and then to the right, you'll see the 101. This center really sits at the corner of Main and Main. The plan is to take it from 144,000 sq ft to 220,000 sq ft in a capital-friendly way. This was a building that was owned by Nordstrom. We were able to recapture that building in a very favorable way from an economic perspective, and SCHEELS will be doing the lion's share of the build-out here. Once again, really excited about getting this kind of a user here. Importantly, and similar to Target, we were able to make this deal with SCHEELS in 10 months from the date that we were able to get Nordstrom back, which is saying something because SCHEELS is not a large retailer by store count. They only open about one store per year, approximately, and, you know, getting them is a major coup to the center. It's under construction right now. I don't know if any of you had a chance to tour the market. It's a site to behold. It's a very big building, very tall building. We're looking forward to a September 2023 opening. Who is SCHEELS? I don't know how many of you know them. I wanted to take a moment just to talk about them. They're a very different retailer. Truly a one of a kind experience. The term game changer is used a lot in a lot of different areas. I really think this is a game changer. It's so much more than a sporting goods store. By comparison, when we think of sporting goods stores, we generally think of the market leader, which is DICK'S. DICK'S typically occupies about 55,000 sq ft. This will be 4x that, just to give you an idea. In terms of the overall store, it's an employee-owned business. They have 32 locations. They have about 10,000 employees. They have grown their sales by 250% since 2017. Remember, they don't open very many stores. Really excited about this. On the right, as you look at some of those brands there, you'll see just a couple, to name a few, Vuori, YETI, Alo, TravisMathew. Those are just a few of the brands that they'll be featuring in their store, and we love that because when department stores, or in this case, SCHEELS, has those brands in the stores and they do well, that bodes directly to us being able to make deals on an attractive level in the mall space. The other brand I circled on here just kind of for fun is that Trek in the lower right-hand corner. Even with 32 stores, they're the number one Trek dealer in the United States. They sell a lot of stuff. We talk a lot about experience in our world and how that's a differentiator for us. SCHEELS is probably the poster child for that, as personified by the Ferris wheel that sits in every one of their large format stores. It's not just that. It's the 16,000 gallon saltwater aquarium, the Wildlife Mountain, which is a taxidermy style wildlife area in the store, which is really amazing to look at. You could probably spend a lot of time just looking at that. Sports simulators, food and beverage, archery lanes, tons of interactive experiences, bowling, you name it. If you haven't been in one, I highly recommend that you go see one and, you know, bring your credit card because it's hard to get out of there without spending a lot of money. This is just a little quick sizzle reel that SCHEELS uses, so we thought we'd show this for a second. Hey, Dave. Yes. I just wanna add a couple of things on this. Yes. These guys are ESOP owned by the employees and the SCHEELS family. Every person in every department is pretty much an expert in that particular area. Store managers will retire after, you know, their tenure with SCHEELS with several million dollars in their bank account. They recently opened a store, their store opening was right during COVID in Dallas a couple of years ago. They'll do an excess of $200 million in that store in Dallas. I expect them to do well over $100 million in this location. They're, you know, very excited about the market. They're Fargo, North Dakota-based, and really one heck of a store. If you get a chance to visit one, I would highly recommend it. Problem is you'll spend two, three, four hours there 'cause you don't wanna leave. Thanks, Ed. Just to expand on a few thing Ed, a few things that Ed said, you know, I think of this slide as the power of SCHEELS. As Ed alluded to, we know what Nordstrom traffic was, we know what Nordstrom sales were. We have a really good idea of what SCHEELS traffic and sales will be because they have other stores. So we're thinking that this is gonna be in the 4x -5x range in terms of increased traffic and increased sales. Comparable stores within the SCHEELS portfolio generate four million traffic per year. Pretty amazing. As a part of us doing this deal, we commissioned a study, one of the nuggets that came out of that study was, the data scientists felt that this would increase our primary trade area by 36%, just to the drawing power of SCHEELS over the next 10-year period. The last thing I want to point out, which is down there at the bottom, and that is strong retailer brand recognition. Not everybody knows who SCHEELS is. Not everybody has been to their stores, the retailers and the brokers and all of the retailers and brokers that we want to do business with and bring those retailers to the center, they know. It gives us incredible credibility in terms of expanding the trade area for Chandler Fashion. In addition to that, we love that it brings sporting goods to the center. As Kim, I think she's back there, you heard from her yesterday, will attest, the retailers love SCHEELS, we've already done a bunch of deals based on SCHEELS, and we expect to do a lot more. This last slide just shows their national footprint. You saw a version of that on the sizzle reel. You know, Arizona is a big hole in their U.S. market, we're really excited to get them here. More than anything, they're not only gonna draw significantly across the valley but also to the state and maybe even beyond. It's, you know, over 500 miles to the next closest SCHEELS, they're definitely a destination. Super excited about that, super excited to what it brings Chandler. I'll let Cory bring us home. All right. Thanks again, Dave. All right. Fashion District Philadelphia. Macerich first stepped into downtown Philadelphia with the redevelopment of the former The Gallery at Market East and developed a Fashion District. Fashion District reopened in late 2019. This shopping center is a 840,000 sq ft shopping center in downtown Philadelphia in Center City. It currently covers three city blocks and is really at the epicenter of the second-largest city on the East Coast. We redeveloped it with great brands, great balance of retail, shopping, and entertainment. We've got City Winery, we've got Primark, Industrious is there, Wonderspaces, Nike, and H&M, just to name a few. The shopping center also sits right on a transportation epicenter for the entire city. 22 million riders annually go through Fashion District Philadelphia, as all the trains, stations converge right there on the lower concourse level. We were very excited when the center opened in 2019. Felt like we had hit a big finish line, and we're proud of what we'd done with the shopping center. Every once in a while, exciting opportunities knock when you least expect them. We're very excited about the opportunity that has come forth here, involving the Philadelphia 76ers. I'm gonna let the video kind of roll while I talk a little bit. In July of this year, Josh Harris and David Blitzer, who are the managing partners of Harris Blitzer Sports & Entertainment, the owners of the iconic Philadelphia 76ers, publicly announced that they were out in the market looking for a new arena home for the 76ers organization. HBSE has teamed up with Philadelphia business leader, David Adelman, to pursue a privately funded sports and entertainment arena that will be located on a portion of what is now Fashion District Philadelphia. This privately funded arena is estimated to cost $1.3 billion, and during the construction period, provide $1.9 billion of economic benefit for the community. This, as you've heard many times today, we're constantly enhancing our properties to try to extract the greatest value that we can from them. This exciting addition to Fashion District is an exciting once in a lifetime opportunity to reimagine what this three blocks could be. This will further solidify our investment into Fashion District and will be the catalyst for a huge transformation in downtown Philadelphia. We think the arena's gonna be a very exciting anchor. They'll have over 150 days of activation with not only the 76ers, but also concerts and other performance events. They expect three million people annually to attend events and sporting events at the arena. 76ers games alone have almost 19,000 people in attendance for each game, and they anticipate that the arena will produce a $400 million annual benefit to the city once it's complete. As you can see from this timeline, we've got a long way to go. We've started down the journey, we're focused on a grand opening, a kickoff of the NBA season in 2031. The city is already buzzing, Fashion District couldn't be more excited. The tenants are very excited to learn more about this as we kinda move forward, the calls are already coming in from retailers and restaurateurs who are excited to find out how they can get positioned within this new development. The future for Fashion District, the 76ers in Philadelphia is certainly exciting, we are looking forward to going down this path with our new partners. I don't know anyone who can quite articulate excitement and represent the iconic 76ers brand quite like my friend Franklin. Right now, I would like to invite our friend Franklin of the Philadelphia 76ers, to come join us and share some excitement and brotherly love with the room. Oh. Thank you, Franklin, for being here with us today. We appreciate it and. Thank you. I think we'll let Franklin lead us off to the break. Maybe he'll be around to say hi to a few of you as you enjoy your break. Thank you, everybody. Are you ready? Thank you. Thanks, Franklin. Thanks, man. If you'd like a photo with Franklin, please head to the stage. Philadelphia 76ers. That was great. Thank you. Nice job. Philadelphia. Somebody's brother is on that picture. No, that's the real guy that grew up here from Philly. Get out of here. Are you serious? Yeah. Oh, I see. It looks like the real guy. Yeah. Oh, yeah. Oh, that's funny. Isn't that great? Oh, I mean, they can't let anybody else run around in the mascot costume, right? That's Kurt. That was a good interview at the end. That's good, though. That's what we wanted, right? Okay, we're gonna get started again if everyone wants to take their seats. I don't think so. I don't know where he is. He's right back there. Mike, okay. He should just come up. He should just come up from the beginning. Don't you think he should just come up from the beginning? I do. You gonna tell him? Mike, why don't you come up now? Good morning again. We're gonna go ahead and get started. I just wanna thank Cory and Dave for that difficult act to follow. Okay. We're gonna do our best. By way of introduction, my name is Will Voegele. I am EVP and Chief Development Officer. I have been in the mall and mixed use development business since I was 25. From the look of my hair, I'm sure you can imagine that's been a long time. I'm joined up here today by Garrett Newland and Scott Nelson. They are senior vice presidents located in our Phoenix office. They are true industry veterans. They manage essentially everything that happens on this side of the country. Of course, Michael is up here with us, and there's possibly nothing else I could say further to introduce Michael. He's gonna help us talk about Scottsdale Fashion Square. I don't wanna forget Jacob Knudsen and Andy Greenwood, who are in the back. They are vice presidents in our development group. They are more than anyone, the people on the ground at each project. You saw Andy touring Scottsdale yesterday and Jacob touring Kierland. They're the people pushing these projects forward. If you couldn't see the pride beaming from their faces, it's probably because you were distracted by that beautiful Dior storefront at Scottsdale or that beautiful empty parking lot at Kierland. Beauty is in the eye of the beholder for us developers, and believe me, what we see at Kierland is really an exciting vision. With that said, First of all, I want to say that I'm very privileged to be working with this group. They really are the best of the best, along with the rest of our development team around the country. Today we wanna share with you not just a deeper dive into some of the projects that you've seen, and what we have on the horizon, but I wanna take a few minutes to speak a little bit to development in general, the culture and the approach that we take. There we go. The Macerich vision, it all starts with a fundamental vision, to continue to transform our portfolio into vibrant town centers that are at the heart of their community. This vision drives a critical part of our growth and value creation story, which is to leverage our exceptional real estate by bringing the full complement of mixed use development to our properties. That means residential, office, hotel, fitness, entertainment, medical. The whole range, is what our focus is and what we've been doing already. That is diversification and densification. That's fundamentally that concept. When you bring those complementary uses to a project, you not only drive diverse income streams from each individual use, you drive the proven benefits of mixed use development. If you're not familiar with those, it's very well known that when you put the right uses together, in the right environment, in the right real estate, you raise the bar on each of those uses. They each bring the tide up for each of the other uses. Perfect example is Tysons. We have a 400 unit residential building called VITA, top of the market rents, top of the market occupancy. We have a half a million square foot office building in Tysons Tower, top of the market rents, top of the market occupancy. We have a portfolio leading Hyatt Hotel, just broke some records on F&B for that brand. Those uses around that plaza next to the incredible Tysons Corner Gateway project on the real estate we have is the reason why we see that kind of performance. That's a model for us, and you'll see essentially examples of those same things and even how we want to continue to transform and grow what we're doing at Tysons as we share more with you today. Three points I wanna make before I hand it over to this great team. The first is opportunity. When you have gateway properties like we have, you have coveted land, and the coveted land attracts the best of the best developers who want to plant a flag on your property because of the great real estate you have and in turn, creating value for Macerich. That built-in demand translates to an abundance of opportunities. In almost all projects that we do, we work with multiple developers in competition until we find the right opportunity, the right developer, the right business deal, the right land value, and only then do we execute and go forward. The attractiveness of our properties also drives business deals, especially in things like vertical residential development, that allows us to shed much of the development risk, but drive significant income and value to Macerich. That's opportunity. The second is optionality. You know, traditionally, developers buy land, hold land, suffer the time pressure of cost of carry and other factors that weigh into their decision-making. When you own the land, you own the opportunity, and we have the ability to time what we do to make it make sense with the market. To make sure that the pre-leasing is in place, to make sure that it's in alignment with our capital allocation strategy, that's when we pull the trigger on these developments. As you heard, much of the development that we're doing involves contributing the land, that land contribution always buys us a meaningful portion of the equity stack. We have the additional optionality of buying up further if it makes sense with where we are and with our capital allocation strategy and the investment itself. Again, optionality. Lastly, execution, and this is a really important one. We take a very disciplined approach to what we do. We have some very creative, and just highly aspirational players in our group. That means that we're focused very much on the quality of the design, the quality of the open spaces that we create, the way we program those spaces, the way we design and execute construction. It all lives under an umbrella of discipline that makes sure that every decision we make and every development that we move forward with is built upon a foundation of strong returns and what makes responsible sense as a development. Those are all the things that you saw yesterday, and you're gonna see more of it today, but those are foundational for Macerich and how we look at development. It's this vision, it's this optionality, it's this significant level of opportunity that we have that's driving the value creation for our properties, our communities, and our shareholders. With that, I'm gonna turn it over to Garrett and Scott, and we wanna talk first. You guys wanna have this, or you want me to flip it for you? Go ahead. About Scottsdale Fashion Square. One of the most transformational, you know, completely reimagined redevelopments that you're gonna find anywhere. Well, yeah, really quick, Michael. I mean, I know we focus a lot on Scottsdale, and obviously we're here in Phoenix, and Scottsdale is a really easy one to get to, and it's fun to show off. I think, you know, when we talk about Scottsdale, we talk about, you know, primarily in the vein of this is an opportunity that our portfolio offers us, you know, many times over, not just at Scottsdale. We spent a lot of time talking about kind of the leasing and the merchandising and the luxury wing, and we'll talk more about it. I think, you know, the Scottsdale Fashion Square, more than anything, has been a huge partnership and consensus building and collaboration between leasing, property management, development, asset management. I think it's probably one of those, you know, great stories about how this process kind of takes a lot of factors in, and it requires a lot of collaboration and cooperation amongst the different disciplines. Yeah, absolutely, Scott. We all got to see Scottsdale Fashion Square on the tour, but it's so much more. It's not just about Scottsdale Fashion Square. It's about the dynamic market drivers, you know, a visionary landlord, motivated retailers, all collaborating together, internal partners, to deliver a premium product that ultimately is evolving, like I said yesterday, over decades. It's just enjoyed its 60th year. You think of some of the evolutionary changes at the center. It used to have May Company and Bullock's and A.J. Bayless and Diamonds and Sears, and now you have Nordstrom and Harkins and DICK'S and Neiman's and Dillard's and Macy's and all great top-performing stores. You can just see the evolution, the power of the real estate and the execution and collaboration internally. This map here, just go back to the map real quick. Just from a, from a broad, I've talked about this. It shows the geographical orientation of our assets. These are eight powerful assets. Again, we can solve many retailers open to buy or their expansion plans in this market. This is all with the nucleus of Scottsdale and Kierland at the center to the west, SanTan and Chandler. I mean, I'm sorry, Arrowhead, and then to the southeast, SanTan and Chandler. Let's go to the next slide. I commented on this yesterday. Just again, the evolution and the power of this real estate. Maybe you could just point to Camelback and Scottsdale Road. I don't know if I can. Which is over by the waterfront condominiums in the top left portion of the screen. What's important about that is we were redeveloping and looking at this canvas that development helped provide. We're the painters, the leasing. We took advantage of the cut-through that Goldwater provides. The cut-through I talked about from Scottsdale to Camelback. It was serviced retail prior. That road used to be 70th Street. It was renamed Goldwater. You could see the Lux entrance. We were standing there where the Life Time Fitness logo is, and that was all envisioned, created, developed. Again, we couldn't do it without the collaboration, our communication with the retailers, the proprietors, the founders of what they wanted and what they would best service them in being productive. Working with development, we were able to create a wonderful entrance, a new sense of arrival to the asset, the best it's had in its history. Let's go to the next. I talked about the objectives. We had five objectives when we embarked on the first part of the redevelopment. One was to reposition and remerchandise the Barneys box. Certainly wasn't broken real estate. It was broken retail outside of New York City. Barneys didn't work outside of New York City. We repurposed it with a flagship Apple, and as you saw, 30,000 square foot plus square foot Industrious. That was one of the goals that's complete. Create a true sense of arrival. I commented on we have about $60 million of F&B that's new and added to that entrance. We have Life Time opening, and added valet. Unbelievable, unbelievably successful. That's complete. The third component was to elevate the aesthetics and the materials on the center in the first phase of the luxury redevelopment in the Neiman Marcus wing. I don't know if anyone went into the restrooms. They're remarkable. They matter to the luxury retailers. The materials on the floor matter to the luxury retailers. The brand opportunities matter to the luxury retailers. We've completed that first phase. Two more components. On the success of completing the first redevelopment and executing in the way that we did, it gave us credibility with retailers and further buoyed our opportunity to redevelop the Nordstrom wing. That's ongoing. As you know that we're redeveloping the Nordstrom wing. We walked into that yesterday. Densification on the north parcel. Part of our ethos, the live/work/play, diversify, develop and densify. This is alive and well here. You couldn't get a better example in the U.S. right now of what that brick-and-mortar is alive and well, north of $1 billion of sales, and we continue to evolve and elevate it. We were standing outside. This is a pretty powerful slide. You can see on the left, we walked outside of the store, looked at the parking lot and said, "Oh my goodness. Like, can we do this?" This is what we developed. Again, we painted the canvas. The developers provide the infrastructure. We took advantage of the market drivers and the demo and psychographics that were alive, and we executed, I think, in the highest manner. Walked in, this is a huge component, the sightlines. Especially when you're dealing with the luxury brands and global retailers, the sightlines and their brand identity is significantly important to them. When we walked in, it was clouded with columns, vertical transportation, escalators, elevators, and we had a real deep dive about how we can execute and create this. It wouldn't be the same offer and wouldn't evoke the same sense and emotion when you walked in if it was crowded with vertical blockage on sightlines. These are just some examples. You guys, we stood outside of Dior. That flagship presentation has been a catalyst for other brands coming here. The CEOs of these global retailers that are coming aren't saying just, "Where's my space?" They're saying, "How can I get the best brand impression? How do I get a flagship representation?" That store helped us create that. Just quickly the... Oh yeah, we could just stay here. As you walk down, we walked down from Neiman Marcus towards center court. You enjoyed a seamless transition walking down that corridor that wasn't blocked by, again, vertical carts, kiosks. but the amenity and the aesthetic is at a premium level, again, shows our credibility and enabled us to have further discussions to keep growing our position. As you just real quickly on that slide, you saw in the papers it was announced, Hermès, we signed, 11,000 square foot Hermès deal. It's gonna be a spectacular addition to our lineup. Balenciaga, you saw that. They just opened across from Vuitton. Prada, I think we're very proud of this Prada story, the location, their, the investment that they made, but also the repurposing and the transformation. Again, that was Stuart Weitzman and Ben Bridge. They were tired stores. There hadn't been an investment in the stores in quite some time. Motivated retailer created something wonderful. To us, on the leasing side, I told this story yesterday. You know, people wanted to be near Neimans. They, you know, they wanna choose where they wanna be, and we tried to lease this to a, you know, multiple retailers, and they're like, "We wanna go there, we wanna go there." Now they come back, and they say, "How come we didn't get that location?" The location's unbelievable. Repurpose, it really shows off its true value. Yeah, I'll kick this over to Scott. You know, I talked about the sight lines, the brand opportunities, the execution, and those conversations have flowed over into brands that aren't here. We walked them through the center, and it's a clear juxtaposition, as you saw, between what it felt like in the materials and the sightlines on the Nordstrom wing and what we actually executed on. You know, we did what we said we were gonna do when we were out selling the project, and it built tremendous credibility, and we look forward and are very optimistic about our redevelopment in the Nordstrom wing. Yeah. This is, I think, due to the success, right, of the Neiman wing. There's been more luxury and global luxury demand. As we looked at ways to accommodate that demand, it was a pretty kind of easy path to think about the Nordstrom wing and how do we advance that. The Nordstrom wing initially opened up in 1998, so it hasn't really been touched and kind of seen a facelift in quite some time. You know, a picture kinda tells a thousand words. You walk the Neiman's wing, and very much what you see there is what we're gonna impart on the Nordstrom wing, and bring it up to an elevated standard, again, that can be receptive to the global luxury, and the luxury players that are knocking on our door and now wanting to be here because of the productivity of the Neiman's wing. Here's just a couple images. Another thing we're doing, and again, hasn't really been touched in quite some time, is the porte cochere that we spoke of kind of in and around the rotunda by Tiffany's yesterday on the walk. This is the number one entrance to the center. It's the number one valet, kind of, porte cochere in the state. We didn't think it was really representative of what we were trying to display on the inside. This is kind of a little bit of a piece of it. Once you get inside, which we don't have an image of, it's quite a transformation. This is the rotunda area we stood by yesterday as we walked. Again, Tiffany's is kind of off to your upper left there. As you said, you know, removing vertical transportation, improving sight lines, and really improving the overall experience of Fashion Square for the tenants. Yeah. I would just jump in here, Scott. Speaking of the porte cochere and this rendering, it's a real connector to what we're doing on the Nordstrom level, the cuisine that we'll add at the porte cochere entrance. It'll be a real be seen type of approach. It'll be best in class F&B. You know, when we're leasing, we just went over what we did on the Goldwater side, we're paying attention to all-day parts, the cuisine, so we're, you know, we're thoughtful and conscientious about giving the customer, again, another choice, another experience that's not already represented at the outset. As Scott kind of mentioned in his early remarks, this is kind of an overview of where kind of the economics stand, $40 million-$45 million at share, 13%-15% return on capital. A very compelling project undertaking continues to make Scottsdale Fashion Square, you know, the choice for luxury and the super regional mall that it is, with an extended reach. Many of you saw yesterday, Caesars Republic going up, excited about that. We refer to that as the north parcel, and it's about six acres of land that arguably is, I would say, some of the most valuable land in the state. There isn't a week that goes by where we don't get calls from mixed use developers saying, "How, how can I be a part of that?" Whether it's office, residential, even further hospitality. Off to the right here is this kind of a rendering of what could be. Off to the right, you see Caesars. Caesars is gonna be 265 rooms. One of the unique, not unique, but favorable financial kind of positions and optionality that Will spoke about is Caesars is on a long-term ground lease, a very compelling value of one. That's just one instance where we're taking our land and monetizing it in favorable ways for the company. In this, we're kind of figuring out what we wanna do with the other four acres now that Caesars is underway. In this rendering here, we're showing two office buildings. As Cory mentioned, you know, we love the symbiotic nature of office and retail. We love the fact that it drives bodies and wallets during a time that's usually less active at the centers, being weekdays and during the week. We love this idea. Obviously, there's a lot of work to do, and we'll find that right choice for programming the real estate. About five years ago, we ended up embarking on an entitlement here that was very robust, and we were able to perfect, which is really going to allow the north parcel to be what it wants to be. We got over 1,600 units of residential. Another two million sq ft of commercial can be added to the overall campus. We got up to 150 ft in height. Prior to that, it was 65 ft. We can have the tallest building or at least match the tallest building in all of downtown Scottsdale. Another compelling thing about the north parcel, and it's kind of built into the opportunity, is this sits right next to the largest parking facility on the campus at 2,100 stalls. We have the ability to leverage, through shared parking, that parking structure to help park the rest of the development and the densification that we have planned for the site. As we talked about, 265 keys, Giada De Laurentiis with a couple of different F&B offerings. We think it's just gonna be a great addition to the overall campus and really matches the brands that we're trying to attract inside the mall, and so forth. All right. We'll jump over to Kierland Commons, keeping on the theme of great real estate. You saw this yesterday, you know, Kierland's really the premier outdoor lifestyle center, opened in 2000, over 400,000 sq ft, plus office, plus residential already. You know, as we have been working on projects since then, every community you talk to says, "Hey, I want a Kierland." Well, it's tough to duplicate this trade area, this market, you know, Scottsdale Air Park with 60,000 jobs right next door, all the resort business that you have and what that brings. It's difficult to difficult to duplicate, and again, fantastic real estate. We have an opportunity to further densify. As we showed you yesterday, the corner of the site, kind of behind Tommy Bahama, opportunity to do multifamily for rent, 100-120 units. We're working with a boutique, high-end, multifamily developer. We think we can differentiate the product here. We're gonna go for some larger units. The typical average units is about 900-1,000 sq ft. We're gonna go for 2,000 sq ft here, which is actually gonna drive higher rents because there's not that much of that kind of product available. It's also gonna have luxury, hotel amenities. It's really gonna be top of the market. Additional densification we showed you over by the current P.F. Chang's building, opportunity for office. There's been no new office product built in this trade area in the last five to seven years. We do think that there's the potential both for here and for Fashion Square to drive some very high top of the market office rents, probably $50 a foot, which is also exciting and obviously helps make the pro forma make a lot of sense. Again, we believe in the right places, an office project is a great synergistic use, the ability to use shared parking during off times for the retail and, you know, another great example of mixed use densification here for Kierland. That's just a couple of shots of the potential office. Pass it back over to Scott. You know, speaking of great real estate and office opportunities, Biltmore Fashion Park has been around since 1963. Was actually kind of the original spot for luxury, right? Anchored by Saks. I mean, Gucci was there at one point in time. Cartier was there at one point in time. You kind of have the sucking sound of Scottsdale Fashion Square and the momentum that it's had. I love this aerial because it demonstrates the intersection of 24th Street and Camelback. Look at every other quadrant of the intersection and look how dense it is and how much, you know, square footage. You look at the Biltmore, and all I see, you know, as a geeky developer, right, is opportunity. Again, probably a decade now, a decade and a half ago, we embarked on entitlements. Here we have the ability to do over 2,600 residential units and another close to 900,000 sq ft of commercial on top of what's already there. We're envisioning kind of two initial phases over the coming years. One being a residential tower of somewhere between 250-300 units there in the purple, and then an office building that could be anywhere from 250,000-300,000 sq ft. Again, as Garrett was mentioning, in recent years, probably in the last year to 18 months, Phoenix have finally pushed over $50 a foot, which is huge for Phoenix. It definitely requires a highly amenitized piece of real estate. It's not everywhere. We feel like we have a great opportunity to deliver on some great density opportunities. This is just a potential office rendering there next to Life Time. All right. Flatiron Crossing, about 1.3 million sq ft in Broomfield, Colorado. basically right in the middle between Denver and Boulder on the 36 highway corridor. great community. We've had a long-standing relationship with the city of Broomfield back to when this was developed in 2000. They have been probably one of the most impeccable partners we have. Over the last couple of three years during the pandemic, we embarked on a public-private partnership and a rezoning of the asset or of the real estate to allow for all the uses you would wanna do, extreme density, height, and ultimately a co-investment from the city via sales tax reimbursement. What we envision here is the big piece of this is where it says village redevelopment. There are roughly 25- 30 acres that we're gonna reimagine into a mixed-use opportunity that will look like this. In this case, to the, to the left, kind of middle of the screen, you have two phases of residential, both each or each about 300 units. Off to the right of kind of the common green you see is a 180,000 sq ft office building, all revolving around, you know, a greater common area, a community gathering spot, something that we believe will be a true amenity, not only to the city of Broomfield, but obviously to each of the uses that surround it. On top of that, we're rethinking kind of the food and beverage and entertainment opportunities here along with this. Again, it really is gonna become kind of a little city within Broomfield. Truly kind of playing on that town center approach. I spoke to this a little bit. It certainly will be done in phases. We are currently engaged with a residential partner that we'll be able to announce in the coming months on the first phase. That will really be the key driver to getting this thing kicked off. Goal is to start construction on both kind of the infrastructure and the horizontal improvements as well as the residential by late 2023. Derek, you reminded me when you were asking Tom about when are some of these things gonna start taking over? And it reminded me of an interview I had when I joined Macerich. The person interviewing me said, "You know, if you need instant gratification, development and redevelopment of malls is not for you." We're finally getting to a point where, you know, we're gonna start to see these things happen, but it certainly doesn't happen as fast as we would like. Absolutely. We're getting to a point where it's getting very exciting. Dave mentioned it, so we won't touch on this. This is the former Nordstrom box. We were able to recapture it at the similar time they closed this store. It was kind of a mid-market store. We were able to capture it in a good deal. So we're reimagining this as a conversion to office. Interestingly enough, Boulder is getting kind of outpriced or overpriced, I should say, as it relates to office. There certainly isn't large chunks of space to accommodate larger users. We see a great strategic advantage here in being able to offer that in conjunction with what we're doing in the village redevelopment, which will be a huge amenity or further amenity to an office user or users. All right, just a couple more slides, for us to get through. You know, we talked a lot about repurposing anchor spaces. You had great examples from Dave, from Cory, Michael, and F.K. We just wanted to point out a few more where we've already got entitlements in place and are now perfecting the opportunity as the market demands. Again, fully entitled projects. One quick comment, the Scottsdale Fashion Square, Biltmore Fashion Park, and Kierland Commons, probably three of the best commercial sites, not only in Arizona, but in the entire Southwest. Again, that theme of great real estate. Scott talked through Fashion Square, and Biltmore, who we're highlighting here. One we haven't talked about much yet is Washington Square. We do have full entitlements here. This was a former Sears store and parcel. Opportunity for up to 2,000 residential units, 2+ million sq ft of office, and significant height that you probably won't ever even achieve getting up to 200 ft. Yeah, it's about a 15 acre site. Yeah. It's a huge opportunity up against a juggernaut of a regional mall. Right. Right. Then other projects, again, a sample here of entitlements that we're pursuing, one of them is Lakewood Center, in the L.A. market. It's been a workhorse center for the company for a lot of years. It's almost one million sq ft. It's already got grocery, it's got a Costco, Home Depot, Best Buy, and a one million sq ft mall that is probably too big. The mall, we need to right-size the fashion and food and beverage, goods at the mall. While we're doing that, it's time to evolve, add some amenities, some green space, more food and beverage, and mixed use. You know, big opportunity here to add additional multifamily units, potentially as many as 1,000 to the campus, again, to help, support what we're doing on the project. We've talked some about Tysons, in Tysons, Virginia, Tysons Corner. Big powerhouse mall. Opportunity today is taking better advantage of the transit-oriented development opportunity there with the Metro line. We're working to shift some of the approved entitlement over to the L&T site, adjacent to the Metro line, an additional 500,000 sq ft of office or a combined office and residential scenarios. Final project to point out is Los Cerritos, again, back in the L.A. market. It's another Sears opportunity. We are working on, you know, scraping the building and a underperforming retailer, big retailer, 280,000 sq ft, and delivering 70,000 sq ft of retail, food and beverage, an entertainment-type plaza, some green space, hotel, likely, and again, multifamily. Big demand for multifamily. We can see 600+ units here, as we move forward and work this out with the city. These were just a few examples. Again, the idea of best-in-class, best real estate, and then bringing these mixed use and redevelopment opportunities to rise the tide, which will continue to further the great mall properties that we have. Will? Thanks, Garrett. Just to underscore that point, what you've seen is the full embodiment of the Town Center vision, the North Star that we have. That is great mixed use development, great placemaking, all in the context of exceptional real estate that is retail, and food and beverage and entertainment, and all the things that we bring to our properties. What you've also seen is an active and evolving development pipeline, opportunities that we're leveraging today to drive value, entitlements that we have that we've put in place that are laying the groundwork for value that we'll create tomorrow, and then also properties where we're securing entitlements to set the stage for development and value creation going forward. That is the Macerich development story. Thank you. Are we opening for comments and questions? Hey. As a former transplant from L.A., I know housing is fairly difficult to come by. Are you guys seeing much in the way of the municipalities working with you to give incentives to build some of these you know, multifamily? Because it seems like a good mix between, you know, your spaces and kind of what they're looking for. Why don't you take that, Scott? I was gonna say, speak to the arena process. Yeah. Yeah. The state has definitely, they're pushing down requirements to all the cities to add units in every case. The, forget what the RHNA stands for, but the cities had to come up with a number of units that they could deliver in an eight-10-year timeframe, and then they've got to now go out and zone properties to achieve that. Some of our projects, Lakewood and Cerritos, specifically, that I'd mentioned, and even a couple others, yes, they're absolutely working with us. There are, depending on if you're adjacent to a transit line, there are some benefits, and yes, the cities are definitely working with us on that. Well, I'll just add to that, the Regional Housing Needs Assessment, which is the RHNA acronym. I normally wouldn't be the one to remember that, is I think in its sixth round in California. This time they're not messing around. If you don't accomplish the zoning necessary to get the units that are designated for your community, they do it for you. There was also legislation just recently passed in Sacramento that even facilitates residential development on commercially zoned land without it having to be rezoned. There's a huge aggressive play happening right now to accommodate. Residential development For us, definitely. Yep. Yeah. Yeah. I have a question. As, you know, you guys have gone through the opportunity. Clearly, residential makes sense. I think on the office side, though, there's a fair bit of that contemplated here. Then I understand the dynamic of the attractiveness of the new flashy office to the market because you suck demand from the older, obsolete buildings. As you guys kinda think longer term, right, second gen leasing gets tougher on these assets, and you're putting an asset class together with kind of malls, the two of them together, at least right now, financability is very difficult, right? So you're taking one asset class that's just more recently been harder to finance with another asset class that's increasingly worse than malls to finance, right? Cap rates are moving higher quickly on office. just the thought process there on your view of the long-term value creation versus the market and lender's view of long-term value creations and kinda how you balance that longer term. Yeah, I wanna answer that. Don't, don't overstate what we're telling you. What we're telling you is, we're getting the right to make money at the right time when it's ready. You know, for example, when we built Tysons Tower in Tysons, we had to make a decision to either start it or not. What we did was we built the underground parking, and we capped the deck until we were 65% leased. Then we went vertical. You know, we're getting the highest rents in Tysons. It's the only way we're gonna do this stuff, or we're gonna have partners that finance it for us. From the risk category, okay, I think we all know that financing at some point will come back. Office is just entering the period that malls hopefully are coming out of, right? We're only gonna build this stuff when the demand is absolute ready to, you know, go, and we can make money with it. We're not gonna take huge risks here. We're not going naked. In some markets, and I couldn't have said it better, some markets like where we are right now, there is such a limited amount of quality office space that the last couple projects that came out of the ground that actually provide quality Class A with amenities were 100% pre-leased. It's certainly market dependent. Again, optionality, which was one of my key 3 points. I'll give you a good example. At Tysons, we're getting approval for both an office building, another trophy class office building or a mixed use residential over office. You know, those are the fundamentals, the way we look at this stuff, and we don't go forward until all the pieces make sense. you know, it could be either a ground lease, it could be a lease, it could be a own and build, or it could be a joint venture. You know. We're gonna be very mindful as to how we structure these things when we go. We're not gonna take huge risks. When you own the asset, you control it, and you have the right to make money, you can be patient. We're under no gun here. Mm-hmm. You know, we don't have to build it. Hi. How much of the current development pipeline is driven by prior anchor closures? Now that department stores have finally figured out that they actually need stores open in order to generate sales, what are your thoughts on additional store department store rationalization and how you're thinking about future redevelopment opportunities beyond what you've outlined today, without some of these low rent anchor stores to redevelop and backfill? Yeah. I don't have a percentage as it relates to what portion is anchor backfill. You saw the incredible story at Chandler with SCHEELS. You saw the incredible story at Santa Monica Place. I can tell you when those opportunities present themselves, we're capitalizing on them and making great things happen. I don't really know the percentage, but the quality of the real estate is then driving a lot of this vertical development everywhere else. Who else would... I was just- Go ahead. I was just gonna say, we're absolutely looking at all of the anchor positions across the whole portfolio consistently, constantly, and looking for those opportunities. If it looks like one is getting weaker, yes, we're gonna start planning and game planning what we can do with the box to take it forward. On the leasing side, you're hearing this theme, just the texture. Yeah. It happens to be in boxes, it's a perfect opportunity, but look at the uses. You saw a lot of examples. If you think of we keep calling it mall, we call it town centers. The fabric of what makes up these town centers are much different than what they used to be in the mall, the traditional mall asset class. Experiential. All these different categories that we're pointing out weren't represented before in a great degree, and now we're adding those, and that's serving the customer, and they're responding. We just see, again, taking out the obsolescence, bringing in newness, bringing in new experiences, new categories, and that's gonna drive value over time. The other point is that you talk about financing and the difficulty of financing. A lot of this stuff gives us the ability to separately finance. Whatever we're working on because it's not part of the mortgage or it's separately a separate parcel. you know, it's not gonna be a jambalaya of mixture of trying to get the thing finance. You know, they're gonna be separately financable. Well, I think, you know, to me, one size really doesn't fit all. Dave mentioned kind of the iterations we went through on the Nordstrom box at Chandler, right? Where we looked at cutting it up and doing retail that was certainly in demand and wanted to be there. We looked at an office conversion, we looked at SCHEELS, and we weigh all the positive, the pros, the cons, and what's right for that mall and/or that property, that town center, and what's right for the real estate. You have things like Washington Square and Cerritos. You know, who wouldn't wanna own 15 acres at the front door of Washington Square? Who wouldn't wanna own 20 acres at Cerritos, which are, you know, $1,500 a foot centers only getting better, and you've just found yourself with an opportunity to densify, diversify all the things that we've been talking about today? It's a huge opportunity. A question, sort of a two-part. On the assets, where you contribute the land and you bring in a third party to develop, assuming that you don't put any more capital into the deal, should we think about sort of a standard 20% stake, like if you think of land value and that you would get 20% or some metric of the NOI? The second part is, once you have bring other people onto your properties, how do you ensure that they maintain the assets at a level that's commensurate with you? Do you guys have, like, rights of getting the asset back or enforcement? Like, what's the mechanism to make sure that someone maintains their part of the deal to be commensurate with the rest of the Macerich asset? No, that's a great question, Alex. I mean, I guess, you know, the first part is it's case by case, right? Not all real estate is created equal. Not all land values are created equal when you think about these things. I mean, you could probably argue that the land's gonna carry anywhere from 20 to almost 50% in some cases, depending on the location. You know, on kind of the control and decision-making standpoint, you know, we certainly are gonna put either equity into the deal such that we have control rights, or we're gonna document the bejesus out of it to make sure that what gets built and what gets maintained, and if it gets passed on to different ownership groups or if we don't control, you know, have controlling rights in it, that it's gonna be up to the standard of the surrounding development- Maintenance in the regional shopping center. Right. The commensurate quality. Absolutely. Will, I think we got time for one more question. Okay, 1 more question. Hey, I wanted to ask a similar question, but maybe I'll follow Alex's question with. I guess, what level of interest would you like to retain in some of these contemplated multifamily JVs, as you obviously, you're sourcing, you're providing your land, bringing in someone to do the building. Would you have an ability later on to then buy back up to a certain? Great question. That's a, that's a great question. A lot of it has to do with the return on cost. We weigh that, we take a look. At Kierland is the best example. That was a situation where I think we put our land in, and it would have equated to about 35%-40%. Mid-thirties. Yep. We decided based on the return on economics and the dynamics of that project that we wanted to be at 50%. We agreed to put in a little bit more capital to go up to 50%. The way you control the site is you control the site through the reciprocal leasing agreement. That was part of an earlier question. Yeah. That contractually, whoever has the, you know, is managing it or running the asset, they've got to comply to certain standards, quality standards. We control it, you know, through documentation as well. And if- We'll evaluate each one separately. In some cases, we may just donate the land and end up with. Mm-hmm ... 25% or 30% interest. In other cases, we'll, you know, we'll buy up. We may even at times when our cost of capital gets cheaper, we decide to do the whole thing and bring in a fee developer, which is similar to what we did at The Ice House. Absolutely. Yeah Eight years ago. That's helpful. Thanks. One more if I could on, didn't notice any comment on Carson, the L.A. development. Anything you can provide us with in terms of expectations or what you're waiting for or looking for there? Nothing new on that one. Schnitzer is really the managing partner on that one. There's nothing new at this point. Thank you. Okay, thanks. I'm gonna stand. If you don't mind, I'm gonna stand. I've been sitting way too long. Well, thank you. My name is Ken Volk, I'm the Executive Vice President for Business Development. Put it more clearly, I'm the guy that leases the common area, temporary carts, permitted kiosks. We do all the in-line temporary leasing, as well as media sponsorship, gated attractions, and experiences in our properties. Put it more clearly, development looks at three-five years, 10 years on how they're gonna create value for the company. Leasing looks at it through 12 months, 18 months, depending on the smallest store or a big box. I try to make money for you today. All right? That is our goal. What I wanna do is just maybe talk about some things that, from my group that, you may find interesting. I think the pandemic has created opportunities for us. Sounds a little crazy, but we had great ideas before the pandemic that got accelerated because of the pandemic. The three things I'm gonna talk or four things I'm gonna talk to you about, is how we recovered. What happened to short-term leasing during the pandemic and how that recovered and what we're doing in median and let's say experiences in our properties. Followed by last but not least, which I think is very compelling, is how we digitalize the leasing process. We're going to become the next Airbnb of leasing space for one year or less and make it very easy for the retailers. With that, looking at our recovery, if you look at 2019 as basically the, let's say, stabilized year before the pandemic, our department dropped in income by 29%. We had a robust recovery, and we grew 23% year-over-year, and this year we're gonna grow another 23% over 2021. We're projecting to be 8% over 2019. I can tell you that demonstrates how resilient the tenants are, the local short-term tenants are. It also shows our ability to work with them, to keep them in business, to maintain our occupancy and the diverse merchandise mix in our centers with the number of retailers we have. If you go a little deeper, you can see how our income dropped on the last slide, from '19 to '20, but our occupancy for those temporary tenants really didn't move that much. We worked with them to figure out a way to keep them in business because we knew if they left, getting them back was gonna be very difficult. We came up with great plans, kept them in business, and as soon as the recovery started to happen, we had our base tenants, and then we grew the occupancy in temporary leasing to over 2.2 million. You're gonna see in 2022, occupancy is starting to come down on a temporary basis, but that's gonna happen as Doug and his team, Michael and F.K., lease more permanent space. We have a choice, try to move them to another location, get them into the common area that keeps some of the revenue, or we have to let them go. On a stabilized year, back in 2019, we had about 750 temporary tenants. We're still at 860+. Generally speaking, I see that going down. I see our income going to the common area again, to maintain some of the revenue, but you can see how we're, we are now stabilizing the group. To be honest with you're not gonna see 23% increases in my department year-over-year going forward. It's gonna be more stabilized. You're gonna see some growth in other areas that we try to drive revenue with. Just talk briefly about temporary in line because there are a lot of tenants. We do work closely with perm leasing, and we work with great brands. If it's not Purple, lululemon, Bad Birdie, Goodlife. We occasionally work with these brands with leasing because they can't find the perfect location in the center where they want to be. They want to be in quickly, so we give them a temp location. When a space becomes available, they move into another permanent location. We also have a with 850 tenants, we do our best to convert the top-performing temporary tenants to permanent. Prior to the pandemic, let's say two years prior to the pandemic, we converted about 160 temporary tenants to perm. The good thing is you'll double the rent or triple the rent with a high-performing local tenant. Now that we're past the craziness of the pandemic, we have 850 tenants. We have an opportunity probably to convert another 30 or 40 over the next six-18 months at least. Just we're very opportunistic, you can imagine. We do over 5,000 agreements a year. During the pandemic, we had, well, you see the same-day testing as slide up there. We had 36 different operations in our portfolio doing testing and vaccinations. The good news is we offered the service. The bad news, we had to do it. The good news is they're all gonna be out of here before Christmas. It's one tenant that we're glad to see leave, for sure. We also work opportunistically with distribution companies. You probably have heard of Fillogic. They're one of our centers looking to go to Phoenix as well as L.A., and they do the logistics for tenants in our properties. Then scooters were a big thing during the pandemic, so we opened up scooter stores as well. Moving on, one of the big drivers of our income as well as our occupancy was this abundance of gated attractions. Even today, we have one opening up in Philadelphia next week called Banksy. We have another art exhibit opening up in Santa Monica next week as well. We've hosted The Office Experience, hosted The FRIENDS Experience, Princess Diana: A Tribute Exhibition, Michelangelo's Sistine Chapel: The Exhibition. All these locations stay for anywhere from six-12 months. They pay solid rent, and we get a percentage of the ticket sales as well, and they drive a tremendous amount of traffic to our properties. The other opportunity that we found during COVID was most of the car shows around the country were canceled. We've worked with their industry and all their agencies. We did pop-ups with Tesla Inc, with Lexus, with Toyota, Porsche, Mercedes-Benz, and we still have them going today. The good thing is it seems to be continuing the trend, which has extended Lexus at Tysons Corner Center just last week. The other opportunity that was created through COVID was outdoor events. When people wanted to-- they wanted to get out, but they didn't want to go inside. We ended up renting out our parking lots to gated attractions for dinosaurs, to great brands in pop-up, structures in the parking lot, as well as large car shows. Not to mention probably 12 circuses and carnivals. That just give you an idea about how we drove the revenue outside of the traditional Spirit Halloween, the Christmas store. I think someone laughed about Santa Claus being at Deptford. That's big money for us, just so you know. It's big money. Yeah, it's, you know, millions, so we love it. That's right. Now that we're talking about, media, you probably don't even recognize the advertising in malls most of the times. It started back as the advertiser would pay for the production of the directories. That has become very sophisticated. We are now in the business of selling, programming, scheduling, and billing and managing an entire media business within our properties. To give you an idea what it looks like, it is all done centralized out of Tysons. We are probably one of maybe two mall companies that have the capability of doing this. We built the infrastructure where we have a Network Operating Center at Tysons. It's cloud-based. We have servers at every one of our properties. We work with programmatic companies that basically it's like buying Facebook, but you're buying our screens. Agencies can go online, pick the malls they wanna be in, the time of day they wanna be on that screen, and they buy it directly. The only thing we do is we approve the creative. We also have a big staff, maybe five people, selling advertising throughout our entire portfolio. We now deliver all the content to every screen in the property, large format, all the exterior screens we have, hundreds of small format screens throughout the center. What's great about this, as we continue to build our town centers, we have built the infrastructure to deliver content anywhere in the United States. We wanna build stages for community events. We don't have to do it. We don't have to worry about it. We already built it. This gives you an idea of the size of the program. These are large 17-foot screens. We build them into our national agreements with Coke, with Rivian, with Klarna, with American Tower, all multi-year agreements, not only for different opportunities with the company, but they're also looking at our network to reach consumers. Small format, we have over 400 screens. The great thing about this is we've cleaned up the property, right? We no longer have directories. We no longer have to manage it. It's fully integrated into our infrastructure. When a store opens, there's no one out changing anything. It's built into our CRM platform. It automatically changes for the day. We basically built a digital network with one person managing every screen, every directory in the entire portfolio. Last but not least, it's probably the most opportunistic, is outdoor media. We've done a great job in Philadelphia, Santa Monica, up in Chicago. Very, very difficult to get it approved, but if you can get it approved, it's a home run. We are looking at doing additional outdoor. We just got approval at Tysons to put up a sign, and we're working in Santa Monica with the city to come up with a pretty dynamic plan for exterior media as well. You'll find these brands. If you went through Scottsdale yesterday, you saw Tiffany, you saw Gucci. You see great brands buying digital advertising in our centers. That's the, that's the ones you expect, right? All the brands in our malls you expect. Do you really believe that we'd be selling advertising to, like, Google for Chrome or to, you know, Dyson or FanDuel or Netflix? They are big advertisers for our company at this point. This looks familiar, just different brands. I honestly believe if you take this, the screen that leasing put up and what Tom put up, and then you look at the brands that our business development group is working with, there's few brands that are not coming to our centers. Why? They want our shopper. That's what it's about. Even if you don't have a store, they wanna be in our properties. QuikSpace, and I was told I had to get done in 20 minutes, so I'm trying to go fast. QuikSpace, back to, during the pandemic, you know, we worked with CoStar, Appear Here, and we used to list spaces for rent, right? There was too much friction, so and we knew that. Because I'm in a temporary leasing business of one year or less, we used to sit there in a meeting and say, "If you can rent a hotel room and see the room, see the resort, get a price, and rent it online, or you can go into an apartment and lease it for a year and get the price and do it online or storage space, why can't you do it for malls?" We are trying to take the friction out of short-term leasing, reduce the burden of administrative work that needs to be done to get a lease done, and we've launched QuikSpace. At the end of QuikSpace, after you lease space, we created the first tenant portal. Now we manage the relationship with all of our temporary tenants in a portal where they pay the rent, they can change how they pay rent, they can give us the insurance, we can talk about renewals, and we can talk about new spaces with the tenant. What I'm going to do is I'm going to walk you through the process and take a look. You can get this through Macerich.com or a mall site. You pick a mall where you want to rent space. You can watch videos, no different than a hotel or residential place. Gives you an idea of what the center looks like. From there you go through an interactive map. We highlight the spaces that are available for temp leasing. You go through a virtual tour in the space itself. I don't show it here, but you can actually walk out into the common area and walk the mall and see our co-tenancies at the same time. Here we have some tools on spaces. If we know what merchandise we're looking for for a space, we can actually show it. We have, you know, downloadables, if it's an aerial shot or if it's a market profile, basic information that a tenant would want. You fill out the application. You'll see a little button at the bottom where you can get messages, and you wanna talk to somebody. You can actually schedule a call to talk to our leasing agent for that property without even talking to the rep. You know, from there, we're launching, and we have launched storage rental. We believe if we could figure out how to lease space for storage and online, we can go to temporary leasing. Right now you can go into our portal, find a location, put the dates you want, prices come up. You put in your information, your store name, it automatically links to our CRM financial platform, and we send you a lease. I wanna say, by the end of the first quarter, all storage, new agreements, all renewals will be done through QuikSpace or our portal, and we're gonna launch short-term leasing on QuikSpace the first quarter of next year. Probably by June or July, the entire portfolio, you'll have spaces, pricing, and an instant access to a lease. Trying to take as much friction out of the process, to make it easier and faster to get tenants into our property, so leasing can then lease the space, and we can throw 'em out or move 'em. With that, I'm open to questions. Just for the storage space, like what's the typical term that you're leasing space for and, like what does that represent of your total ABR? I mean, how big or small is it? Um- Just to give us a sense of what the opportunity is. Well, one, you can lease temporary space with us, for storage for a week, for a day. Most of the tenants sign up for at least three months for the holidays. We have tenants now that need more storage space because of the buy online, pick up in store. They're taking storage space to fulfill some of their orders, and they need the inventory on site. You're finding leases that go to one year. There is also permanent tenants that take space for the entire term of their lease. You know, I wouldn't say it's, we don't make any money on storage. I could say it's well into the seven figures. Look, Scott, if you wanna elaborate on how much we make, but it's a side business. It can be much bigger and we're gonna build it through QuikSpace. Yeah. I think that's the importance to be much bigger. Right. These aren't prime retail spaces? No, not at all. This is built from back of house, back service corridor in every corner of the property, making it convenient for the retailer to have storage. Some of the rents they are substantial, especially if you look in New York or you look at Tysons and Scottsdale, it's sizable rents. The difference, all commercial. You can go residential. No, that's correct. You know, we debated that. We debated it. Once we get our infrastructure set up, we prove out that it's working, retailers are using it. Once we maximize our retailers, there could be an opportunity for us to start leasing space to outside companies. Yes. How do you incentivize retailers paying less money on short-term leases to go to longer term leases, paying more money? We're very nice to our tenants, but I can tell you that, if we see tenants doing $500,000, $750,000, $1 million, and it's the right use for our property, and they're in the right location where we want 'em, they wanna stay on our property, they're gonna go to a permanent lease. Yes. Oh yeah, I'm sorry. You got miked. All right, go ahead. I'm sorry. How much are you making on the kinda LED advertising in that space right now? What's your kinda expected growth there? I could say it's grown pretty dramatically since 2019. Our growth last year, or the last two years was driven by advertising sales and temporary inline leasing. I, you know, scope it for my group. My group represents how much, Scott, for the company? My department represents what? Right. I would say, 20%-25% probably comes from advertising and sponsorship and event income. All right, I can tell you it's growing, and it's an area that we have a small group dedicated and working on nothing but media sales, gated attractions, experiential activities in the malls, and all they do is deal with agencies for events, advertising for advertising sales, and programmatic companies that drive additional income. It is now at a point where it's making more money for us than the traditional temporary income in the common area, and it's sizable as our, let's say, permanent kiosk business. Yes. Two questions. Can you remind us what temporary leasing trended like, you know, pre-COVID to now? What was that? Like, the percentage of temporary leasing in your portfolio. Well, it's on my slides, I had that, right? You know, we had about 750 temporary tenants, about 1.8 million sq ft of temporary inline, and today we're about 2.1, 2.2 million, and that should be coming down to more stabilized, I would think, to 1.8 in time. How do the rents change when you go from temporary to permanent? How do you decide to structure those leases? Are you solving for a certain outcome or value? You know, we don't wanna lock in some of these local tenants for five, seven, 10 years. Most of the temp to perms, except if they're great brands that are just testing a market or trying to find a home for them, you're looking at a three-year lease of a temporary tenant. Some of them will end up doing more after they've proven that they can survive as a permanent tenant. The rents, like I said, double to triple depending on the use. Just question on merchandising. Using sort of like the Auto Mile example where, you know, car dealers like to be around other car dealers to generate more and more sales from critical mass. Do you find the same thing with the retailers or is it some point where there's cannibalization? I'm thinking like, you know, you have a lot of like, boutique, let's say, eyeglass stores, then you throw in a Warby Parker or, you know, outdoors, like whatever. You know, clothing, like, you know, athleisure, you know. Maybe others don't like that they feel like there's a lower price entrance or something that's gonna cannibalize. Yeah. Do the retailers not like that? Or- Well- they like it because it creates a critical mass. There's a push and pull, right? It goes back and forth, depending on the center. Like at Kierland, there's no space, right? We had one space last year at Kierland. When you have such little space in a center that's got great demand, we put, was it Lexus in there, and they paid permanent rent for the six or seven months that they were in there. It's a good fit. At Tysons, sometimes, in some wings, maybe the merchandise isn't perfect, but you know you have the right to terminate in 30 days if they don't, if they don't perform well or they don't look right. We take great pride in the way we execute temporary tenants. As far as longer term, is there more concern about cannibalization when you have like type tenants next to each other or creates more of a destination? I think there's synergies to that. It's more of a destination for the customer. It creates a destination. I look at how many sneaker stores could be in a mall and cluster them together and create a place where people go or restaurants in the same location. Like you see at the entrance of Scottsdale Fashion Square. I think there's value in bringing things together. Dave, I don't know. I think clustering was much more prevalent maybe 10 years ago than it is today. I think there are still some uses that do like to be around one another. Restaurants do. Luxury wants to be with other luxury. Digitally native brands wanna be with digitally native brands, but for the most part, you know, as Ken Volk said, they wanna just take down the best real estate they can in the property. Any other question? Oh, yes. Can you talk about some ideas that you're thinking about for, like a VIP service for your best customers? I haven't really seen. You know, it's funny you say that. I didn't say this, but I worked for Simon for 13 years, ran their marketing for years, then I worked at The Mills for years until Simon bought them, and then I came here. There's seems to be a great interest in trying to create a relationship with someone else's customer. All right. Our customer is the retailer. And my energy and my focus for my group is how do we make it easier to lease space in our great properties? All of our digital efforts, in my mind, the mass majority of them have been in building a platform that helps us drive revenue for our shareholders. I do believe there's a place for a loyalty program. We have a lot of digital marketing that we do with email addresses and communication to them. We're not going down a path of building a loyalty program. I've seen many of them crash. I don't know if that answers your question. Yeah. Yeah. One quick follow-on to that. Simon just did an Amex co-branded card. Yes. Yes. That's kinda what you're getting at. If you guys went that route, wouldn't you get a lot more data beyond what you already have? Probably. You know, I guess maybe I've been around the industry too long. I've been around when we launched a credit card. I wish them luck with it. I'm happy to be a fast follower on a program like that. American Express was our partner for years. If you remember, PNC had a card called the VIP card years ago in our industry. To be honest with you, I worked on it for years. The acceptance rate of people getting the card was so small that you spent more money trying to get people to sign up than you made on the back end. Maybe it's changed. Maybe it's changed. I'm a fast follower when it comes to that type of program. Thank you. Hi, everyone. I'm Olivia Leigh. All my colleagues stood up here and told you all about their long and storied careers. I am fresh off of a birthday two days ago, so I'm still real raw talking about age. I'm gonna go ahead and just skip that part. Just suffice it to say that I have been with Macerich for about 20 years. I came to Macerich after a career in leasing, which I ended when I realized I like socks, so not for me. Here at Macerich, I lead the groups which my father lovingly, question mark, referred to as invisible disciplines at Thanksgiving dinner this year. That means that all of the things that the consumers don't see on mall but that are critical to our infrastructure, real estate tax and housekeeping and maintenance and risk management. One of the programs that has been for a long time in those invisible disciplines is sustainability. I'm really proud to have worked over the last several years with my colleagues and our team members in our energy management and sustainability departments to really bring our efforts to the forefront. I too have been tasked to get us back on time, so I'm gonna be really zippy through this presentation. I'm gonna focus on the E and not so much on the S and G. I will turn it over to Scott. If you have any questions, I will be guarding the mole enchiladas outside, so you can find me there. Sustainability is a space in which Macerich has had a presence for almost two decades. Our program is really guided by four principles. We have set up the ambitious goal of being carbon neutral by 2030, admittedly somewhat complicated by the second goal, which is double materiality. Scott accused me of making up that term this morning. If only for his benefit, I will tell you that my definition of double materiality is the intersection of economic responsibility and good stewardship of our natural resources. Again, the S and the G, we have robust programs around those, but I'm really gonna focus on the E portion today. Recognizing that the real estate industry has about a 40% share in all greenhouse gas emissions, we did set this really ambitious goal. It's 20 years ahead of the Paris Agreement. Again, made more difficult by a real emphasis on this double materiality concept. We are achieving carbon neutrality through all of these measures, all of which come with strict economic discipline around them. We created this about two months ago, before the Inflation Reduction Act was really sussed out. One of the things that is really positive around that act is that we think that it is going to spur significant growth in the public utility and private development sector around massive developments that we can use to procure energy, green energy, clean energy with no capital outlay from Macerich's part. This is evident even here in Arizona, which has historically been a really tough nut to crack. Lots of sun here, not a lot of incentives. It's really hard to do projects like solar or fuel cell or battery storage. Given the Inflation Reduction Act and some of the private development, we've been able to partner with the Salt River Project. We now offtake about 8% of a massive solar development, outside of Gilbert, and it powers 20% of all of our energy here in Arizona with absolutely no capital outlay from Macerich. We're really proud of that. Some quick highlights of things that we've done. We focus really on energy, on electricity, on natural gas, water, and waste to make sure that we are, we have a responsible circular economy. I don't love this slide. I am uncomfortable being in the spotlight. That's why I don't like birthdays, but we don't do this for the awards, but it is nice to be recognized when our industry and others, see the progress that we have made in this area. Probably our largest initiative has been our solar initiative. We began this about 15 years ago as an energy management initiative. It helped that it was good for the planet, it was really a focus on how do we make more efficient our energy costs on mall. We have projects that have already reached maturity. We are well into our 16th project. We are the 23rd largest on-site solar generator in the U.S. across all industries. That includes Walmart and Apple and all those guys. Oh, goodness. We expect to continue doing more projects. If the Inflation Reduction Act works the way the government says, I have been promised that I'm going to get my Real ID for the last six weeks. I have not yet received it, so forgive me for being a little bit skeptical about government promises. Another raw subject. Really quickly. Water, it's a big deal here in the West. We are very focused on making sure that we are responsible users of water. We are very focused on making sure that the energy that we produce, we use fully on mall, and that we have behavioral implementations that reduce the excess amount of energy that we need to offtake from the grid. The total energy that we save on an annual basis can power my entire hometown, which admittedly had more cows than people, but still impressive. Future investment. We expect to continue investing in all of these categories: LED, fuel cell, solar, controls for things like VFDs. Again, with the overlay of economic discipline. I can tell you that any project that I get real excited about and I get to the bottom line and it doesn't have double digits, goes back to the drawing board. Come back when you can show me a project that meets that intersection of economic responsibility and doing good for the planet as well. Again, this is our S. Our S slide. Our social programs have always been part of the communities that we serve. That is our role as town centers. We are blood drives, we are farmers markets, we are programs that are individuated based on the needs of the communities of that particular town center. One of the case studies that I like the most is actually really timely. You'll see Mr. Thanksgiving there. He has been hosting Thanksgiving for mostly seniors who don't have family around to celebrate Thanksgiving with. He continued to do this during the pandemic. He had a drive-through Thanksgiving. Almost 50 years he's been doing this and has chosen our mall as his venue because it is so large. That's responding to the community's needs. Finally, we are an industry that kids coming out of college, kids in their second, third job, they don't recognize. My daughter has no idea what I do. I have told her so many times, and she's like, "Yeah, Mom, I don't know. Can you get me a deal at Abercrombie?" "No." She's uninterested. We are an invisible industry, we have implemented several programs where we introduce landlord retail to future leaders to ensure that we are being responsible about our succession planning, and we're broadening the appeal, the appeal of our industry to those kids who are coming out of college or who are relatively newly tenured in their career. We actually In this picture, we've actually hired one of these young men. We've had a couple success stories out of our internship program, and we're really pleased about that. Governance. Everybody wake up. It's exciting part now. You probably heard before, we've opted out of MUTA. We have board diversity. We have board refreshment. Our diversity extends to experience and gender and ethnicity. We have executive compensation that is tied to our ESG goals and will continue to focus on whatever is acute over the time period. We have board oversight of our ESG goals. You guys still awake? All right. Just checking. If you have any questions, Anne is very excited. She has not had a part today, she really wants to talk about this. Do stop by. She's the only one of us who did not get the memo to wear a dark blazer and white shirt. I did my best, Tom. I'm sorry. That was the fastest ESG presentation that I've ever done. I have not even had caffeinated coffee today, it would have been about 3x if I had had any caffeinated coffee. Four minutes for questions. This is a group of people that loves their mole enchiladas I can tell. All right. If you do have questions, and again, I apologize, I don't want to give the subject short shrift, but I was. Oh. Oh. Actually, I do have a question. You don't like mole enchiladas? I love mole enchiladas. Actually, a question. Yes. On fire suppression. EVs. Like traditional gas car fire takes about 500 gal to put out. EVs take about 12,000 gal. What are you guys doing across your portfolio to ensure that your garages are capable of handling EV fires, which, you know, we do see in the news that are quite destructive? Did you know that I started my career as a risk manager? I did not. Do you wanna talk? We can talk insurance. Risk management. I mean... That means that you went to Bermuda and wore tall socks. Funny story. My husband used to work in Bermuda and wore tall socks. Yes, you are correct. EV fires, they burn longer, and they burn hotter. One of the things that we are doing is partnering with Paragon, our consultants, as well as with our primary insurance carriers, our SAC of leading carriers to look at renovating our fire suppression systems in our malls that have parking garages in particular. We have not implemented any of those systems yet, but there are a variety of methods that we're looking at. Some of them are cost intensive, and so that's going to need to be a consideration as we move forward, and make a decision about which of the systems that we want to implement. All right. Again, I apologize for giving these subjects short shrift. I don't want to, I do really wanna make sure that we stick to time. If you have any questions, happy to answer questions outside. With that, Scott Kingsmore. Thank you, Ken. Thank you, Olivia, for getting us back on target. That's great. That's great. Hey, look, I'd like to thank the efforts of so many in our organization that have contributed to making this day work seamlessly, be enjoyable. Obviously, thank you to the members of the team that presented here today, as well as the many that accompanied us on the tours yesterday, including my friend Kim. Also, thank you to those many behind the scenes that worked so diligently to make the last 24 hours work without a hitch. To that point, thank you, Samantha Greening, whom you guys all know. Others may have met some of these folks, Kurt Ivey, John Kessner, Brooke Newland, Jamieson Vallone, Karen Maurer, Maggie Emmons, Laura Crossman, who's done a wonderful job, and Carrie [Kurt]. Thank you all very much. Of course, guys, a really special thank you to Franklin, the 76ers mascot, for making the trip out. That was pretty cool. In all candor, the shoot from the hip plan was to use the T-shirt cannon. I'm pretty glad we didn't do that in this room. That would have been fun. For those of you that are here in person, we really do appreciate your efforts to make this post-holiday visit. After Nareit, after Thanksgiving, personal travel, it's a big endeavor, and we thank you for that. A critical element of this investor day was to visit two of our finest assets, obviously, Scottsdale and Kierland. It's also for you to spend some quality time with the members of the team, the leadership team and the property teams to hear about the Macerich story in person rather than just hear it from Tom and Doug and I. For those of you that attended virtually, while you're not able to enjoy the social and in-person aspects of the last day, we invite you to enjoy a taste of what those attending in person saw yesterday. To that point, on our investor page, we have posted or will soon be posting two brief video tours, virtual tours of Scottsdale and Kierland. These videos will provide you with a shortened, albeit still, you know, resemblance of the content that we got yesterday on the tour. Those will be up if they aren't up already. Those of you that are here, you can look at it again. To sum up the past day, you had the opportunity to visit just a portion of the extremely high-quality portfolio we have here in the Phoenix Valley. Since we acquired it in 2002, the Phoenix market has presented a tremendous growth platform for the company. Collectively, the six-asset collection that includes Scottsdale and Kierland, Chandler Fashion Center, Biltmore Fashion Park, SanTan Village, and Arrowhead Town Center, accounts for a whopping over $1,200 per sq ft and three of our top 10 assets. Given that Arizona experienced this thing called COVID light, which those of you that live here in Phoenix, you know what I'm talking about, this portfolio did not experience nearly the level of economic shock that the balance of our portfolio did. As a result, the Phoenix region has enjoyed an atypically strong emergence from the pandemic. While we certainly exposed you to two of the finest assets here in the valley, you also learned from the likes of Dave about the exciting game-changing SHIELD use coming to Chandler Fashion Center. You heard from Will and his team about some of the mixed-use opportunities that we're entitled for and we'll take advantage of at the right time, Biltmore Fashion Park. The Phoenix Valley has just been a very attractive market for us. It's a consistently strong population growth, given the affordability to the market compared to other major MSAs, including Southern California. As retailers look westward, while California may be in the forefront of their mind, Arizona is a very close second. We are the place that they come when they wanna get a beachhead here in the Phoenix Valley. The Macerich team continues to discover a vast many ways to transform our town centers. Quite simply, it's to provide multiple somethings to everyone within our highly attractive markets. Today and yesterday, you heard of the many examples in which we are finding ways to meaningfully diversify the offerings and to transform our town centers, whether that is reshaping large format space with game-changing and/or unique traffic-generating uses like at Santa Monica Place that Cory introduced today, or whether it is curating the best brands on the campus similar to what you observed yesterday on the tours. Michael and F.K described, we continue to see a tremendous flight to quality and a depth and breadth of diversified uses that really punctuates the dominance of our town center portfolio. At this point, again, it seems safe to say that we'll be, we'll be lapping a two-year history here that will rival any period within our company's history, and that doesn't seem to be slowing whatsoever. Demand for our product, our real estate is and remains abundant and extremely healthy. You learned about the progress our development team is making on entitlements to densify our town centers with alternative uses such as resi, hotel, in certain instances, office, along with the thoughtful placemaking for social gathering. As the development team clearly conveyed, our land, which is typically positioned at main and main within our markets, is highly coveted. Think of it this way. You saw Kierland comment yesterday, we bought that center 20 years ago. Imagine what the land basis was 20 years ago. Imagine what the accreted land value is today. That'll give you some idea, so you can digest the attractive returns on incremental new equity, which is very minimal. We're creating those opportunities across the platform, and that's really a prudent, disciplined way to handle this development effort. It's not about balance sheet constraints, it's about the prudent use of our capital. Exciting mixed-use specification projects are on the horizon. We'll be mindful of when and how we bring those opportunities to life. We will listen to what the market tells us, as Ed said, and we'll be mindful of potential down economic cycles, such as the one we may be soon facing. You learned from Cory about the tremendous opportunity we have in the Philadelphia, and we look forward to reporting on that more as 2023 progresses. You heard about the efforts of our business development team from Ken. They brought their revenue center to well beyond a pre-pandemic level. Ken, you're my favorite dude in the room. They have done this by sourcing creative and lucrative opportunities for traffic-drawing gated attractions, advertising opportunities, such as how we, and they've also really set the table in terms of creating creative, forward-thinking platforms, such as how we operate our portfolio-wide digital network, and also the cutting-edge digitization of thousands of transactions every year, as Karen demonstrated with our new Yardi QuikSpace tool. Maybe you guys need a little bit of coffee right there, we've demonstrated this amongst our peer group and across sectors, and it's really quite a buzz. Really is. A lot of forward-thinking in that, in that regard. You learned briefly, thank you, Olivia, more about our ESG efforts at a depth that you likely have not heard before. We look forward to engaging others, including Linda, about our ESG efforts, and look forward to helping you guys write about how we are making a difference to this planet. You learned a new phrase. I did, too. Double materiality. That's cool. But it does make a lot of sense. We're doing the right things by the planet as citizens of the planet, but we're also being fiscally responsible in everything we're approaching. One thing I'm extremely proud of with this company is we are just massively philanthropic. This week we started a fundraiser for St. Jude. I haven't gotten any figures from that, but I look forward to hearing about it. That is the cause that we're supporting here at the holidays. The company is matching match funding contributions. We do this each and every year. We've got a wonderful platform in which donor-advised platform that encourages payroll deductions. The company kicks in. Just another way in which we are just a wonderful community citizen. That really is something we embrace end to end. I'm extremely proud of that. As Olivia mentioned, we don't do this for the accolades, we don't do this for the honors. Look, it's good to get them, and I think fundamentally it's important to comment on them because it is an independent validation. By GRESB, who has recognized this eight years running as the most sustainable retail real estate company in North America, we're proud of that. We're certainly proud of our recent ISS ratings with their best possible ESG scoring. These are all important facets of being a public company. We must acknowledge that. We've made great, meaningful progress over the last 24 months. I would say one thing, obviously the business has emerged from the pandemic quite well, but so not have the debt capital markets. All that said, you know, over the past 24 months, we've made very meaningful progress, as I mentioned. Since the start of the pandemic through the end of next year, we will have touched over half or $3.5 billion of our maturities. Yes, it wasn't straightforward. Yes, it was a very tortured process to get there, but we feel confident in our ability to execute. We're doing so in a very efficient way from both a liquidity and a rate standpoint. As I highlighted to you earlier, the underpinnings of that success are our relatively light leverage that we put on in place when we originate debt, as well as our non-recourse secured positioning. All those are important facets of our balance sheet strategy and structure. Throughout the past day, we've reminded you of the resilience and the strength and the solid foundation underlying our business. It certainly does seem that even despite the recent run-up in our share price, there remains a substantial remaining discount and significant embedded residual value that is not captured within our current valuation. As you sit here today, I feel pretty good about saying this, I think, what was once labeled the retail Armageddon, I'm now hearing a lot more about it becoming a retail renaissance. Our spaces are changing, they're morphing. The mall sector is capitalizing on a unique opportunity to transform itself. In Macerich terms, our strategic vision is to not just own malls, but as you've heard many times today, as well as yesterday, is to transform and curate town centers. Whether it is to find the best, first-class shopping with the most exciting and relevant brands, or to promote personal fitness, wellness or beauty, to shop for staples and groceries to meet your daily and weekly needs, or to peruse options for your future, electric vehicle purchase, or to socially gather, to play, to dine, to be entertained, stay at a hotel while you're passing through town, to work or to live, et cetera, et cetera. The town center model is pretty clear. It's to cultivate as many reasons as possible for our community citizens to visit our A-class portfolio. Our end goal is to have our market patrons pause and reflect just how important our properties are within their daily and weekly lives. It is then that, at that point, that we have made progress in fulfilling our mission, which is to be the social heart and economic engine of the communities we serve. We do hope you're leaving today, with a greater appreciation for the quality of our A-class portfolio, for the vast and many transformative opportunities that are facing us today, as well as the demonstrated expertise of the entire Macerich team to execute upon these opportunities. We sincerely thank you again for your commitment of time following Nareit and following Thanksgiving. We wish you very safe travels home, and we wish you a wonderful and joy-filled holiday season with your family and friends. Thank you very much.