Simon Property Group Inc. (NYSE:SPG) Q4 2014 Earnings Conference Call - Final Transcript

Jan 30, 2015 • 11:00 am ET

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Simon Property Group Inc. (NYSE:SPG) Q4 2014 Earnings Conference Call - Final Transcript

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Q & A
Operator
operator

Ross Nussbaum, UBS.

Analyst
Ross Nussbaum

Hey David good morning. I guess it's on first what's coming I guess I get the honor of asking you what the heck is going on with may search?

Executive
David Simon

Well, I thought we are going to talk about your headline that said mix bag? So what was mix bag? Our record revenue growth or record comp NOI growth, our record balance sheet, our record occupancy, our record rental rates, I wanted to talk about your headline first. Can we do that?

Analyst
Ross Nussbaum

Yes, we can all read the note, but the guidance coming in below the Street is an offset to beating for the quarter. One would call that perhaps a mix bag, but we can talk about with all that.

Executive
David Simon

I think on the guidance, look, first of all those are your numbers, not ours. And obviously, that's predominantly driven by the currency devaluation that's occurring both with respect to the Yen and Euro. The good news is even with that, because of our at least our hedge in Europe, we're up $850 million in Klepierre. So yes we're going to have some volatility, it's about 1% of our - this where the rates are today versus where they are, it's above 1% of our earnings, which to me is somewhat immaterial. So I do think we need to put that in perspective. I'm not sure that should have generated your headline, but you certainly

Executive
David Simon

understand our position, I understand yours.

Analyst
Ross Nussbaum

I appreciate that. So back to the elephant in the room.

Executive
David Simon

Yes, what's your question?

Analyst
Ross Nussbaum

A little California-based mall company called Macerich, what can you tell us about, what's currently going on? What was going through your head a couple of months ago when you put out the announcement that you did? What can you say about it?

Executive
David Simon

Well, look. As much as we - I'm sure you'd love to talk about, we disclosed our stake of - was 4.1% and got diluted down to 3.6% in Macerich, we still hold that position and at this point it's really not appropriate for me to add anything other than the fact that we still own it. And there's not a lot more I can say, actually let me take away the clarifying statement, there's nothing more I can add to that.

Analyst
Ross Nussbaum

You may not want to answer this, but I will ask it anyway. If there were nothing going on one might assume you would be happy to tell us that you own a position in another company, that you thought the stock was undervalued at the time. But if you can't comment on it would suggest that there is something going on other than that.

Executive
David Simon

Well, look we don't - we never comment on M&A activity. And we still own the stake. And as you know we're significantly in the money of this on the stake, there is been no P&L impact on our stake as I know some people asked Tom that question. And it is