Thank you, Seridy, and thank you all for joining us this evening. Presenting on today's call are Eli Simon, Chief Executive Officer, President, Chief Operating Officer; and Brian McDade, Chief Financial Officer.

A quick reminder that statements made during this call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties, and other factors. We refer you to today's press release and our SEC filings for a detailed discussion of the risk factors related to those forward-looking statements.

Please note that this call includes information that may be accurate only as of today's date. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included within the press release and the supplemental information in today's Form 8-K filing.

Both the press release and the supplemental information are available on our IR website at investors.simon.com. Our conference call this evening will be limited to 1 hour.

For those who would like to participate in the question-and-answer session, we ask that you please respect our request to limit yourself to one question. I am pleased to introduce Eli Simon.

Good evening. I want to start by thanking all those who sent kind notes following my father's passing.

His impact on our company and our industry is truly powerful. Turning to the quarter, we are off to a very good start for 2026, with first-quarter results that exceeded our plan.

Occupancy gains, increased shopper traffic, and higher retailer sales drove strong cash flow growth in the quarter, reflecting solid fundamentals across all our platforms, the resilience of the consumer, and the strength and breadth of tenant demand we have for our centers. Retailer demand remains broad-based, spanning new and legacy retailers across a wide range of categories and all of our platforms and geographies.

During the first quarter, we signed more than 1,100 leases totaling over 4.7 million square feet. Approximately 25% of our leasing volume in the quarter was new deals.

We have completed more than 75% of our 2026 expirations and are ahead of where we were at this time last year. We have a robust and expanding pipeline of deals that is significantly larger than this time last year, reflecting continued demand from a diverse mix of tenants.

Now turning to development and redevelopment activity. We have projects under construction at 29 centers, with our share of net costs of $1.06 billion at a blended yield of 9%.

Approximately 50% of the net cost is for mixed-use projects, including approximately 1,200 units of multi-family residential at Brea Mall, Briarwood Mall, and Northgate, and more than 400 hotel keys at Northshore Mall, Roosevelt Field, and The Domain. We also have exciting redevelopments of former anchor boxes underway at Brea Mall and The Fashion Mall at Keystone, where we'll be adding more productive new retail, restaurants, entertainment, and fitness uses.

We have an additional $1 billion of projects that will have the ability to start construction this year, including new developments, anchor redevelopments, and international redevelopments and expansions. Beyond that, we have approximately $3 billion of projects in our pipeline that could start over the next several years, investments that will make our great centers even better.

All of these projects will be funded from internally generated cash flow, and we will maintain our track record of discipline in how we allocate capital, rigorously evaluating each project against our return thresholds. We have complete flexibility in our development pipeline.

We can be patient and adjust timing depending on construction costs or market conditions. We can also invest counter-cyclically, delivering product when others can't.

These accretive development and redevelopment activities deliver strong yields, enhance our portfolio, and drive long-term growth in cash flow, FFO, and dividends per share. Moving on now to retailer sales.

Malls and Premium Outlets were $819 per square foot in the quarter, up 11.8%. More importantly, sales growth accelerated.

Total sales volume increased 5.6% over the trailing 12 months and 8.8% in the quarter, with comparable sales growth of 6.5% for the first quarter. Our re-merchandising efforts are clearly showing through in total sales volumes, with strong growth across our portfolio and across categories such as luxury, jewelry, athleisure, and juniors.

With that, I will now turn it over to Brian, who will review our financial results from the first quarter in more detail and provide an update on our outlook for the remainder of the year.

Thank you, Eli. Real estate FFO was $1.2 billion, or $3.17 per share in the first quarter, compared to $1.1 billion, or $2.95 per share in the prior-year period, growth of 7.5%.

Domestic and international operations both performed well and contributed 27 cents of growth, driven by increased lease income along with disciplined cost management. As anticipated, higher interest expense and lower interest income combined were a 5-cent drag year-over-year.

Reported FFO of $2.91 per share includes $40 million, or 10 cents per share, of accelerated stock compensation expense, which reduced real estate FFO by 2 cents per share and other platform investments net of tax by 8 cents per share. Domestic property NOI growth was strong and increased 6.7% year-over-year for the quarter, with approximately 120 basis points of that growth attributable to our acquisition of the remaining TRG interests.

Portfolio NOI, which includes our international properties at constant currency, also grew 6.7% for the quarter. Malls and Premium Outlets occupancy at the end of the first quarter was 96%, an increase of 10 basis points year-over-year.

The Mills occupancy was 99.2%, an increase of 80 basis points year-over-year. Average base minimum rent for the malls and the Premium Outlets increased 5.2% year-over-year, and The Mills increased 9.1%.

Occupancy cost at the end of the quarter was 12.7%. Shifting to return of capital, today we announced our dividend of $2.25 per share for the second quarter, an increase of 15 cents, or 7.1% year-over-year.

The dividend is payable on June 30th. Also in the first quarter, we repurchased approximately 965,000 shares of our common stock for an investment of $175 million at an average purchase price of $181.59.

Turning to the balance sheet. During the first quarter, we were active.

We completed 10 secured loan transactions totaling approximately $2.3 billion at a weighted average interest rate of 5.25%. We also issued $800 million of senior notes that we used to repay our $800 million of notes that matured on January 15th.

We also have amended, restated, and extended our $5 billion revolving credit facility at a 15 basis point lower pricing grid, and we ended the quarter with approximately $8.7 billion of liquidity. Subsequent to the end of the quarter, we closed on the refinancing of The Shops at Crystals via a 5-year CMBS loan that was priced at 4.83%, the lowest retail fixed-rate coupon CMBS financing completed over the last 4 years.

Turning to Klépierre's exchangeable bonds, during the quarter, we settled the conversion of approximately 174 million 174 million of outstanding bonds by exchanging 4.1 million shares of Klépierre and €79 million of cash. As part of that, we recognized a non-cash, non-FFO gain of $64 million in the quarter on the exchange of the Klépierre shares.

Subsequent to the end of the quarter, we settled additional conversions of $374 million of the exchangeable bonds. Following the exchanges, there are approximately $188 million of bonds outstanding that will mature in November.

We currently own approximately 59 million shares of Klépierre's common stock, which represents approximately 20.7% ownership. The end of the quarter, our balance sheet remains strong, with net debt-to-EBITDA of 5.0 times and a fixed charge coverage ratio of 4.6 times, supporting our strategy and continued execution.

Finally, on to guidance for 2026. Given our results for the first quarter and our current view for the remainder of the year, we are increasing our full-year 2026 real estate FFO guidance to a range of $13.10 to $13.25 per share.

That compares to $12.73 per share last year of real estate FFO and is a 5% increase at the midpoint. Thank you.

We are now available for your questions.

Thank you. Good afternoon, everybody.

Eli, I guess as it relates to retailer demand, you mentioned it's very strong, and I see you have a lot of leverage on negotiations with the tenants here. Maybe talk about the pricing power you have in this environment.

I know you spoke about addressing sort of upcoming expirations into '27. Talk about kind of that growth momentum over the next, let's call it 12 months.

Thanks.

Sure. First, we don't have any leverage over the retailers.

The retailers can go a lot of places. They can open stores, not open stores, go online, go on Amazon.

I would query the first part of the question that we have any leverage or real pricing power over the retailers. I guess on the second part on the pipeline.

The pipeline is significant, and what's interesting is the way I look about it, it's really up across all different categories that we're leasing in today. That's the legacy brands, that's our new business leasing, which are first to mall, first to our portfolio from either DTC online or from Asia, from Europe, etc., luxury brands, that pipeline's up, restaurants are up, and local and regional businesses up.

We're really seeing broad-based demand across all our centers, not just sort of the top fortress centers, but really across the portfolio. I think I attribute that to the fact that we're making our centers better, we're making them more relevant, and the customers, particularly the Gen Z customer, wants to come to our centers, and you're seeing that in traffic growth, and you're seeing it in the retailer sales.

We're not going to talk about pricing power, have no leverage, but we feel very good about the pipeline and about our conversations with tenants. Then on the future expirations, I guess a couple things.

One is we are above where we are on our '26 expirations. It's around 200 basis points or so more than this time last year.

What's interesting when talking to the leasing team is retailers are now wanting to talk about their '27, '28, '29 expirations, which historically might have been more of a luxury tenant phenomenon who think much like we do in terms of decades, not quarter to quarter. We're actually hearing from legacy retailers in our existing portfolio, non-luxury, that actually want to start having those conversations, because I think they understand this pipeline, too, and the interest in our space.

We like having those conversations, and I think they've been productive so far.

Hi, good afternoon, everyone. Maybe just big picture, wondering if you could go through considering the leadership transition, do you expect any changes to Simon's strategy and execution, and is there any change to capital allocation priorities between call it acquisitions, share repurchases versus buybacks, the deep redevelopment pipeline, and dividend growth?

I know you've been active on all fronts recently. Thanks.

Sure. Hi, Caitlin.

As far as leadership changes, we're operating business as usual, we have the best-in-class team and we're continuing to execute on our business plan. No change there, and everyone's excited for the future and excited to keep doing what we're doing.

With regards to capital allocations, we look at all of it always, and I guess I'll just go through the different pieces. Starting off on our development, redevelopment pipeline, which I mentioned, the current projects underway is about $1 billion.

We have about $1 billion that will have the ability to start later this year, and then at least $3 billion behind that that we can start over the next several years. We look at each project on a project-by-project basis, incredibly meticulously, incredibly detailed, and we evaluate the market conditions at that time, the retailer demand.

Do we think it's the appropriate return? Today, we're seeing very good returns there, and doing what we're able to do in this pipeline at 9% plus, we feel very good about adding density, adding mixed uses to our centers.

We'll continue to do that, but if market conditions change, if costs rise from a construction perspective, we obviously have the ability to stop, to pause. This is land we own and we're going to own forever, and so we'll do it at the right time.

Next area is acquisitions. Obviously, there's been more transactions in the retail market, which I think overall is great, more capital coming into the sector.

When I think about acquisitions sort of, I've said this before, but it's three key three key criteria. Has to make our portfolio better, it has to be brand accretive, there has to be an asset that we can or portfolio that we can add real value, utilize our skills to operate better, and it has to be at the right price.

Last year, if you put aside the remaining stake in TRG, we did three transactions: the mall outlets in Italy, Brickell City Centre obviously in Miami, and Phillips Place in Charlotte. All three of those hit those criteria and, frankly, are outperforming even what we thought and are very excited about those future prospects.

Next, I guess you could go to share buybacks. Obviously, slightly slower pace in the last quarter, a little geopolitical unrest, a little choppiness in the market, and so we were prudent and waited.

As we said last year, we issued a little over 5 million shares to do the last 12% of the Taubman transaction, and we fully expect to buy those back. I would expect us to continue to be active, but again, if we do it now, great; if we wait because we think it's prudent, that's fine as well.

Then on the dividend, obviously the dividend increased. It's been growing at a nice rate.

It's something we take tremendous pride in, and I'm pretty sure, looking at Brian, I think in the third quarter, we should be passing $50 billion paid as a public company, which is a pretty big number. That's obviously incredibly important to us.

At the end of the day, if you think about the business, we're generating $1.6 billion or so of free cash flow after dividends. We have tremendous opportunities and tremendous things to do with that, and if we continue to naturally deleverage because we don't like the opportunities, that's fine, too, which we've been doing.

I guess that was a long-winded way to answer, but really no change in our capital allocation. We continue to evaluate all ideas and all opportunities, and we'll do what's best at any given time, which could be all or could be none.

Good afternoon. Thanks a lot for taking my questions.

Eli, you mentioned the resilience of the consumer. What are you seeing from the consumer specifically?

Is there any way that they're changing the way they shop or spend at the centers? Then also, if you have any data on the Gen Z consumer and how they may be different than some of the other cohorts, that would be helpful.

Thank you.

Sure. I would say the sales growth is really broad-based.

Right, 6.5% comp for the quarter is a very healthy number, and it's really across category. Clearly the upper-end consumer is doing very well.

You could look at the stock market, that should not be a surprise. You're obviously seeing that in the luxury business, with some of the brands, frankly, that might have been a little bit softer in the past couple years now starting to see some rebound, but really you're seeing it in the hard luxuries, jewelry and watches, really, really solid growth.

We're also seeing it in the juniors business, which hits that Gen Z customer, both new juniors brands, legacy juniors brands, all really firing on all cylinders, and I think that's a example of competition is great because some of these legacy brands needed to innovate, needed to be able to compete with some of these new brands. I was at the Catalyst office, I guess last week or the week before, and Aéropostale, which is now competing with some new entrants in that space, are doing new things with new influencers that, frankly, I had no idea who they were, but I think for the customer they're targeting, it's working.

We are definitely seeing that across the portfolio. The only thing I would say that is a touch softer is on the food and beverage side, basically it was flat from a comp perspective.

That's probably not surprising, seeing some of the earnings from the restaurant groups out there. Whether it's a trading-down effect, maybe one less trip out, that's the only place we're seeing it.

The rest of it is broad-based growth. Obviously, athleisure still very strong across the portfolio.

The only other thing I guess I could say on sales is the tourist markets that really rely on the European and Canadian international traveler, that is a touch softer. If you look at Woodbury, I think comp was call it 2.5% versus 6.6%.

That's atypical, right? Woodbury normally you would say is going to be performing well above average, and that obviously is less European international travel into the U.S.

and Canadian is a big part of that. The flip side is you go to Florida, and it is from South Florida, Panhandle, the west side with Tampa and what we have at International Plaza or Waterside in Naples, and obviously Orlando, which has probably been the best market over the past year, very, very strong growth there.

Then on the Gen Z customer, I guess look out in the future, we have some things coming there, but I think the way I look at it is you can see it in the sales, you can see it in these customers or in these retailers that are targeting. They're all growing, they want more space, and their sales are proving that they're resonating with that customer.

Michael, this is Brian. I guess the only thing I would add on the Gen Z customer is they were really the centerpiece of our Meet Me at the Mall campaign that we launched with our marketing team 2 years ago.

We identified this as being a growing cohort, and we've been investing, we've been bringing the brands to bear that the Gen Z cohort is looking for, and most of our activations and social aspects are geared towards them as well. Big lean-in from us, it's been about 2 years, and we continue to see great progress with that consumer.

Great. Eli, just curious if you can give us maybe some color on whether it's new or renewal lease spreads and maybe how that compares relative to this time last year.

Then, if you look at the portfolio right now, north of 96% leased, are we reaching sort of that structural occupancy? Could we see it go to 96.5%, 97%?

Just curious if you can give some commentary there as well.

Sure. Spreads, I think is not necessarily the most relevant metric, but what I would say, on renewals, historically over the last number of years, we're sort of in the mid single digits increases on renewals, bounces around up and down a little bit from that number depending on what package of renewals is signed in any given quarter.

That's holding true and we don't see any real change there. As I said, we're looking at renewals further into the future.

Retailers are asking us about that, and obviously, we're only going to do those renewals if it makes sense for us as well. On the new deals, what I look at is the new leases we are signing are 20% plus, 20%, 25% above new leases last year.

Mix is part of that, but really it's the brands understand the importance of having a great physical representation, and our centers are that. We're proud of that, and then the other thing we're probably more proud of, frankly, is what we call our new business brands are outperforming that increase by call it another 10% plus on that.

The best of the best brands, whether it's some of these beauty brands coming from Asia, we just opened a Google Store at Fashion Valley, I guess this weekend, new athleisure brands, new home furnishing brands, we're able to have rents there that they are able to pay because they're doing the business and because they're generating the traffic and they know that it's great for them and it's going to help their business grow. Hopefully that answers the first part on spreads.

On occupancy, it's interesting. If we wanted to, we could lease up to 97%, 97.5%.

I have no doubt about that. I think for us, we look at this not a metric quarter-to-quarter, even a year-end metric, but really what's the right decision long-term for these assets.

Sometimes that might be holding space for another retailer that's coming. It might be taking a little bit of downtime, which again, we don't like to do, and we have an incredible short-term leasing program that keeps the occupancy at a good number.

We honestly don't focus if it's 90 it's what, it's 96% now, if it's 96.4% at the end of the year, if it's 96.2% or 96.6%, that's not what I'm focused on. I'm focused on, excluding the Taubman 12%, we grew NOI 5.5% year-over-year, and we've grown it at north of 4% for the last 4 years.

That's more important than 20 basis points on the margin. The answer is yes, there is room to increase occupancy here, but it's not the be-all and end-all for us.

It's really let's grow cash flow.

Thank you.

Hey, evening out there. Eli, just a question on data centers.

You guys in the past year or so have spoken about how the B malls have rebounded strong, and centers that a number of years ago you would have sort of used for cash flow now have a second life because of the demand from retailers and there's a renewed vibrancy to them. As you look at the demand for data centers and presumably some of your centers have excess power, utilities, or what have you, whether they're mini data centers or maybe even converting the entire site to data center, do you see this as an opportunity for any of the excess holdings?

Or as you look at the portfolio, all the malls, because of this lack of supply, really their highest and best use is either as a mall or mixed-use venue?

Sure. I would say to answer the first part is, probably 18 months ago or so, we really scoured the portfolio.

As you said, both the combination of, again, we don't really use A or B malls, but malls that might have had a lower growth profile or potentially excess land at some other malls to see is there anywhere that makes sense for a data center. We talked to various data center operators, and we couldn't find anything that made sense.

Honestly, the power is less available than you would think, especially obviously if it's an existing mall that would stay in place. It's something we, with our team, what we look at relatively frequently, but to date we have not found anything.

To answer the second part, at the end of the day, we're economic animals, and if there's a higher and better use for the data center that we thought we could sell something and take cash and reinvest it elsewhere more accretively, we would do that 100%. We haven't seen that to date.

As you mentioned, we're excited about the growth prospects there, it's not like we're actively trying to shed any assets in that regards or try to find alternative uses. We are doing what we said we were going to do.

If you look at Smith Haven, for example, we signed a very important retailer there and put in capital to renovate, and now we've seen good growth and good demand. We'll continue to evaluate, but the demand is there from the retailers, really up and down the portfolio.

We will continue to operate, but again, if someone comes and says, "Here's a big price for an asset," and we look at it and say there's a better use of that cash, we won't hesitate to sell. It just hasn't happened yet.

Thank you.

Hey, thank you. Just curious on the integration with Taubman, how that's going, what synergies you're finding, and where you see the best opportunities for reinvesting into that platform, what's now your platform.

Great, and thanks for asking that. I'd say from a corporate integration perspective, it's gone according to plan, effectively fully completed all the corporate integration by the end of April.

That's done and it was well done by the team. We're excited how that turned out.

Now on to the assets, we're honestly probably more excited than we were in November or October, I guess, when we finished, and it's a combination of sort of using our ability to operate centers at a level that increases margin, and that's from an operating expenses perspective, that's from a marketing perspective, that's ancillary income, that's parking, obviously our short-term leasing program, which I mentioned earlier, to be able to be fully integrated there has been helpful. Then our leasing department able to lease these centers, which again, obviously the Taubman team did a great job, but they were leasing these centers for the past 6 years of the transaction, now we're able to do that.

More importantly or most importantly, I should say, is our ability now with our balance sheet to reinvest into these centers, and that's, frankly, what I'm most excited about. If you looked last quarter, I think a day or two after earnings, we put out a press release, and I'll just highlight three assets briefly that we mentioned, but in Nashville at Green Hills, in Tampa at International Plaza, and at Cherry Creek in Denver, we're going to invest over $250 million into those centers starting later this year to really make them, again, great assets performing great, tenant sales strong, and leasing strong, but to make them even better, to freshen them up, to make them look the same that the retail fitting as for the performance of the retailers.

We have renderings that I've shared with some of the retailers, especially the luxury retailers, all very, very excited. Now it's our job to go execute that, to sort of take the vision and to do the redevelopments or do the renovations, which we're in the process of starting very soon.

Then obviously to lease to those tenants that we think should be in these centers. No different at Green Hills than we did at Southdale in Edina, Minnesota, which I don't know if you've been up there, but what we did was sort of revitalize the whole mall, and these malls are not in the position that Southdale was in.

They're in much better position, but we think we can have an equally strong impact from these programs. International Plaza will be an expansion, probably an outdoor expansion, revitalize Bay Street, which has great restaurants, and we think we can upgrade the restaurant mix.

Sort of doing what we've been doing across the rest of our portfolio, now we're able to do it on these great assets. It's a big focus of ours, sort of a whole-of-company approach, and that's what we've been telling retailers, and it's true, because these assets should be and will be better, and that's something that's very exciting for us.

Thank you.

Great. Just wondering if you can provide an update on sort of the other platform investments, some of the retail investments, how they've been performing relative to expectations and your thinking in terms of monetization of that platform.

The follow-up would be, I think part of the thinking was getting a lot of data from the retailers would be valuable. Just maybe can you talk about how that's been sort of helpful in this sort of new age where everybody's focused on AI?

Thanks.

Sure. I guess if you, think about OPI today, it's basically comprised of of of three pieces.

It's Catalyst, which is obviously the former SPARC and JCPenney businesses; it's Rue La La and Gilt, which, has Shop Simon in it; and it's Jamestown. All three are performing at or above plan for the first quarter of the year.

I think the teams, they all have obviously independent management teams. They're they're doing great.

From an operating perspective, I'd say it's business as usual and they're continuing to execute on their business plans, but again, quarter to or year-to-date, they've all been effectively at plan. From a monetization perspective, we're opportunistic sellers.

We're not planning on anything. If there's an opportunity and we think it's in the best interest of shareholders, would we do it?

Of course. If not, they're all properly capitalized, have proper liquidity amounts, and and the ability to run themselves.

That's what we expect to happen. If something occurs, that that's great, too, and we will, not hesitate to monetize if it's in the best interest of shareholders, which obviously we did with our Authentic Brands stake a couple years ago.

As far as data, I'd say less data, hard data specifically, because obviously you have privacy issues and and what now with that, but really on best practices and learnings. If you think about, a couple departments, from our marketing department, it's incredibly interesting, and our our marketing team talks often to the marketing team from Rue La La and Gilt and from Catalyst to learn how they're attracting customers, where they're seeing the most efficacy of their ad buys, whether it's TikTok or Meta or or, Rue La La and Gilt has big connected TV business, etc.

That's what I would say is is is we're more focused on. I think it's interesting from a brand perspective, helps us think like a retailer.

For example, the tariff situation, we're able to understand how Catalyst, which is no different than, hundreds and hundreds or thousands, thousands and thousands, frankly, of retailers in the country, are dealing with the tariff refunds and how they're planning for the year. I think gives us insights and data from that perspective, but not necessarily hard data that we can monetize because, there there's real legal implications there that make it tricky.

You mentioned AI. We're learning from them, too, and I think they're learning from us.

We're comparing again different tools to use, different programs. How can we provide more customization for the consumer, because these retailers, especially Rue La La and Gilt, they're really good at that, and so we can learn from that.

For us, we look as a symbiotic relationship. Hopefully, we can add some value to those companies, they can add value to us, and, we're we're happy shareholders of those companies and and we continue to or we expect to continue to be for a while.

If something comes up, then, then we will won't hesitate to do something that's in the best interest of the company.

Thank you.

Thanks. Hey, Eli.

Thanks for the answers so far. Question on the redevelopment pipeline.

Obviously, 9% direct returns appear very attractive. You've got an ongoing pipeline of $1 billion and another $1 billion down the pike.

That's 1% to 2% of your overall portfolio value, or even less, actually. Could you maybe talk about what percentage of the portfolio you still have left that is yet to receive capital?

Then maybe the add-on is, if the direct returns are 9%, what are the actual returns once you've redeveloped and you see the benefits in other parts of the center, for example, when you rejuvenate a wing? What kind of returns have you typically seen in addition to the immediate incremental returns?

Thanks.

Thanks for the question. I would say we're investing capital in basically every center every year, frankly.

As far as large transformational projects, if you put aside the $1 billion that's actively under development today and you call it the $4 billion to $5 billion shadow pipeline, that's on, I don't know, probably 20, 25 centers. We're developing at I think I said 29 centers today.

There's for sure others that are not in there. I don't have an exact number, but some of it is because we don't control the real estate that we'd want to control to do the redevelopment or do the densification or the mixed-use addition or what not or whatever makes sense for that center.

I don't have a exact number, but if sort of the fear is that we are running out of things to do, we're not even scratching the surface. Again, there will be more opportunities across the portfolio over time.

We're not going to go, to the extent we don't control a piece of real estate that we want to develop, we're not going to go and buy it just to buy it to be able to do it today, even though we could. Just not the way we think about it.

As far as the other benefits, it's interesting. It's a question that, frankly, I talk with the team about often is that we do not underwrite it.

The reason is, really need to be intellectually honest with ourselves and say if we're doing a redevelopment, I'm in Indianapolis today, at Keystone, redeveloping the former Saks box, which has started, there will be an impact, no doubt. We have to look at it and say, okay, for the new money we're putting in, what are we earning, knowing that there is going to be a benefit?

What I look at is less the incremental, okay, we got 5 bucks of new rent in this tenant or that tenant, because that's sort of day-to-day business, and how do you quantify that? It's hard.

I look at sort of say what are the customers saying? If you look at new projects we opened in Southdale last year and in Brea, just two for example, both barely fully open, I think the last tenant at Southdale was Tiffany's, which I want to say opened in February.

Brea, Dick's did not open until April, just opened recently, and Life Time isn't open, and I want to say one or two of the restaurants are not open. Those two centers, on a like-for-like basis, are performing 1,000, 1,500 basis points above where those similar comp brands are performing across our portfolio.

That's sort of to me the more important metric, because it's showing that the money we're putting in, the development we're doing, yeah, we're earning a 9%, but we're making the center more relevant. If we make the center more relevant, more customers come, retail sales grow, we're going to add new retailers, and how do you cut the line and say, "Well, this counts in the return, this doesn't"?

It's really hard, and so that's why we don't include it. We know it's there, and it's something that gives us comfort as we look at some of these bigger projects that will start over the next year, whether it's Boca or Ross Park or Fashion Valley or what have you.

I appreciate the question. I wish I had a really good number to show you, but we know it's important, and that's why we're excited about the pipeline.

That's why we mentioned on the call is this is an important avenue of growth for us, and I think we've shown we have the ability to execute it. Now we just have to keep doing that in the years ahead.

Floris, all I would add was that there are multiple projects over time at properties. Roosevelt Field's a great example.

We could go down the list of assets that we've redeveloped multiple times over the years and continue to get the appropriate kind of return and the halo effect in the regular part of the shopping center.

Thanks.

Hi, good evening. Eli, I'm curious where purchasing vacant anchor boxes at your centers that you don't currently own rank in terms of capital priorities.

Ultimately, how are you thinking about the value of control of those spaces and being able to get the best use in that space from a tenant and redevelopment perspective to unlock all the benefits you just talked about versus letting a third-party owner re-lease that, presumably only cares about the highest use economics and less about the mall ecosystem? I know Simon's been pretty patient and price-sensitive purchasing some of these spaces historically, just kind of curious how you're thinking about it.

Sure. I guess on the second part, obviously I want to say every mall, but most of these malls have REAs, we have approval rights, it has to be consistent with them, again, not to go through the legal language of each one, but so that's in our mind.

Really, we just look at it as what's the price, and we evaluate each one independently and say, "What would we do here? Do we want it back?

Do we have leasing demand?" We have leasing demand.

How would we lay it out? We'd lay it out.

What's the construction costs of that? What's the return?

Do we think it does anything to the rest of the mall, sort of the halo effect Brian mentioned and I was just talking about. If there's something we really want, we can go and make a call and buy it.

Typically, we've seen is we sort of can sit and buy it at the right price, and if you look at the price of some of these boxes that we've been able to get, we're very pleased with them, and obviously then when we run the return analysis, we're very pleased. I don't prioritize anything really from a capital allocation perspective, besides do we have liquidity for it?

Yes. Does it fit with our objectives?

It's something we will continue to do obviously is acquire boxes over time, but we're only going to do it at the right price, and sometimes the right price might be a lot higher than somebody else might have, and sometimes the right price might be a lot lower than somebody else might have. That's fine, and we'll make the decision: Are we okay if somebody else does it?

Sometimes we are okay, and sometimes we're not okay, and then we'll figure out if there's a meeting of the minds and there's a price that we can buy it. It's something we sort of do day in, day out, no special project, just sort of ordinary course business.

To the extent we have opportunities to buy it at good prices and have redevelopment plans, we'll buy it for sure. If you look at some of the projects that hopefully we announce over the next year or so, a number of them will be in boxes that we bought that we think we bought it at an attractive price and allowed these redevelopments to pencil.

That's what we're focused on, and we're in this business for a long time. If we get them today or if we get them in a year, 2 years, 5 years, we'll do the right decision for the mall and for our capital allocation.

Hey, good afternoon, guys. Clearly doesn't feel like you guys have capital constraints here with the liquidity and the free cash flow.

Just kind of curious from the platform, how much development do you think you could handle at one time and continue to source new entitlements and new opportunities? Like is there a limit in the near term, or do you guys have significant excess capacity?

From a capital perspective, significant excess capacity for sure. From a resources perspective, at the end of the day, these are all highly local processes, which often involve outside counsel, outside advisors, etc.

The team is doing a great job. We have a number of projects.

I don't feel that's an issue at all. To the extent we thought it was an issue, we can add human resources highly accretively given what we're talking about, the potential EBITDA or NOI creation from these assets.

We feel very good about the pipeline. I'd say the only thing that's out of our control where we're dealing with local municipalities and villages or townships, depending on where the mall's located, that's out of our control.

If we could find a way to do that faster, that'd be great. Unfortunately, you're dealing with elected officials, appointed officials, what have you.

That's the one thing that's out of our control. The rest of it's in our control, and I feel very good that we can execute on that.

Then obviously, the last piece is, we always have the ability to bring in partners on some of the stuff if we want to. We've done it on multi-family projects, we've done it on a few hotels, we finance some with construction financing.

I look at it and say, as I said, we're generating $1.6 billion of free cash flow after dividends, and this stuff takes time to build, and doesn't start at the same time. Plus we're basically under 5 times levered now, too.

One turn of leverage is $6 plus billion of capacity. That is not close to a thought in my mind.

Brian, anything?

No, look, we're accelerating at the end of the day. Craig, you can see it.

You heard Eli talk about it. We have great opportunities ahead of us, and so you should expect us to continue to realize and accelerate on those investment opportunities.

We can do things that others can't and quite honestly aren't, and so what we're delivering today is new product. There is no new product being built, and we believe that's a durable competitive advantage.

Hey there, thanks for taking my question. Got a quick two-parter on the core portfolio.

First, on same-store NOI, up a robust 6.7% in the first quarter, I guess I'm curious if there's any change to the initial guide of at least 3%. Seems to apply some clear decel here for the next few quarters, or maybe we're not appreciating something there.

Then maybe can you share some color on the current SNO pipeline right now? What's the embedded NOI, and when do you expect that to come online?

Thank you.

I'll do the first part. The same-store NOI, we don't call it that, it's it's it's domestic domestic NOI, and so that's 6.7% for the quarter.

As Brian said, is is really call it 120 basis points of that is from the, 12% stake we brought that we bought in Taubman last I guess November 1st. That will obviously play through our results for the second quarter and the third quarter and a little bit a little bit less obviously in the fourth quarter.

We'll probably have, call it plus or minus 100 basis points impact on the year. We don't update guidance.

We guide to at least 3%. I think we've guided to at least 3% for a number of years and a number of years now.

Our job is to outperform that. Obviously, we have a good start to the year, and so we'll just continue doing what we're doing.

We really don't update don't update that guidance besides obviously just wanted to clarify about the Taubman or the former Taubman stake, and then Brian on the on

the SNO. No.

SNO at the end of the quarter was 310 basis points, Haendel. Usually, you see an increase in our business in the first quarter, and then it dissipates as the quarter goes on as tenants open.

But 310 basis points, which was consistent with first quarter of '25 type of level.

I actually have a follow-up on the prior question. How much of an impact did the buyout have, TRG buyout, on your operating stats like the year-over-year sales comps and the 5% base minimum rent growth?

Honestly, we don't look at it. We look at it and say these, I guess it's 18 assets domestically, right?

They're our assets, they're Simon assets. Besides the domestic property NOI, which is a little skewed from the 12% stake, honestly we don't look at it.

They're all SPG assets, and so that's the way we operate them, that's the way we lease them, that's the way we account for them, that's the way we think about them. Honest answer is I don't know.

Did it increase it? I guess maybe, but we don't really think it matters.

We think it matters that they're assets that we're operating and they're part of our cash flow, and we're growing that cash flow.

Hey, good evening, guys. Thanks for taking a question.

Maybe one for Brian, to go back to the Crystals CMBS financing, and as I kind of look through the debt schedule, obviously you've got a number of secured debt financings kind of coming due over the course of '26 and '27. Maybe just fill us in with color on the market spreads, proceeds, and I'm assuming it's another interest expense headwind as you think about refinancing over the next couple of years given the rates on a lot of these loans.

Just help us understand the moving parts.

Sure, Rich, no problem. Great question.

Crystals was a great execution, 5-year CMBS, 4.80 coupon, which was incredible, probably the tightest coupon we've seen in the last 4 years. We're pricing off of a higher base rate, even with that incredible coupon, we're rolling up that interest expense about 60-plus basis points.

The rest of the balance of the portfolio refinancing we did on average, the coupons up are about 50 basis points relative to maturing. We are still seeing interest expense headwinds as we anticipated.

While spreads are at record tights, we are still seeing impacts from base rates. Markets are wide open.

We've been active in the CMBS market, we've been active in the life market, we've obviously been active in the unsecured market, what we expect to continue for the balance of the year. The original 25 to 30-cent headwind that we expected between higher interest expense and lower interest income is still there.

It probably is gravitating closer to the 25 versus the 30 today where rates are, but there's definitely still a headwind ahead of us for the balance of the year.

Thank you.

Thank you everybody for the time today, and look forward to hopefully seeing many of you in Vegas or New York in the coming weeks.