{ "docId": "019dd923-622c-750b-8b9b-4832cdb3e662", "docSlug": "600406034f02", "documentTitle": "Mall REIT sector (long General Growth Properties) (GGP)", "authorId": "01_Pershing_Square", "authorName": "Pershing Square Capital Management", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2009-12-07 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 47, "pageCount": 68, "prevPage": 46, "nextPage": 48, "slideType": "ceo_quote", "function": "summarize", "density": "dense", "nDataPoints": 6, "notes": "The slide provides a narrative summary of retail performance trends throughout 2009.", "elementsJson": [ "headline_text", "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9b-4832cdb3e662/47", "deckHref": "/decks/019dd923-622c-750b-8b9b-4832cdb3e662", "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-4832cdb3e662.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-4832cdb3e662#slide-47", "components": [ { "bbox": null, "kind": "callout", "text": "They are maintaining their margins. So being off 10% when you plan to be off 10% and you keep your margin is a significantly different situation than being off 15% when it wasn't your plan and your margins were decimated.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0933-75bb-9c08-240f40cddf56", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.565, "w": 0.712, "x": 0.144, "y": 0.238 }, "kind": "paragraph", "text": "On the sales side, I want to talk about sales and talk about our leasing activity and our leasing spread. As you know in the fourth quarter of last year, sales were off in general around 15% give or take, for most of the major mall owners including ourselves. That was a disastrous comp sales decrease from a retailer's viewpoint. Because it was totally unexpected from the retailer's viewpoint. As a result of that, it put the retailers into a freeze mode, not only into a freeze mode, they even got into a cutback mode, because it was totally unexpected. Over the course of this year, the retailers made major changes in their cost structure, major changes in their inventory levels and major changes in their business plan. Made plans for their businesses to be down roughly 10 to 15%. In February this year, we told you that we anticipated that for the first three quarters of this year, that we anticipated double digit sales declines, and at the time, frankly, that was not a very thrilling prospect. In fact, we've had double digit sales declines, off 12% in the first quarter, 11% in the second quarter, 9% in the third. But we're seeing a moderation in the decreases, but more importantly, and I said this on the last call, is that you have to be careful about the comp sales, because this year the difference between the first three quarters of this year and the fourth quarter of last year is that our retailers planned to have their sales be off at this level. This was their business plan. They are meeting their business plan. They are maintaining their margins. So being off 10% when you plan to be off 10% and you keep your margin is a significantly different situation than being off 15% when it wasn't your plan and your margins were decimated. As a consequence of that, it's put our retailers into a mood where they're willing to talk about new leasing and we're able to look at beginning to have some pickup in store growth. The moods of the retailers, and you've heard this on the other conference calls with our peers, is improving dramatically. They went from being in a freeze mode in the fourth quarter of last year, to things began to fall out in the second quarter of this year around ICSC. Now we're really having positive conversations with our retailers about how they can grow their business and how we can grow our business together.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9461ec74-addd-462c-8180-e76b85008bdb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.451, "x": 0.405, "y": 0.848 }, "kind": "quote", "text": "– Art Coppola, Chairman & CEO of Macerich, November 5, 2009", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b7654cfa-a566-40a1-8b1e-e01256d11ddd", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "On the sales side, I want to talk about sales and talk about our leasing activity and our leasing spread... The moods of the retailers, and you've heard this on the other conference calls with our peers, is improving dramatically. — Art Coppola, Chairman & CEO of Macerich, November 5, 2009", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0933-75bb-9c08-2bd843774f6f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.494, "x": 0.084, "y": 0.135 }, "kind": "title", "text": "Macerich's Point of View", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5bbe4b93-9789-4a0d-aa43-f6d9c50d3bbd", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 49, "from": 40, "beatId": "abfb7081-826d-40d3-abe7-76bd7101cf39", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Desire", "beatSlug": "aida-desire", "evidence": "The presentation generates desire by highlighting the potential for growth and the positive outlook for Mall REITs.", "position": 5, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [ { "to": 49, "from": 40, "name": "Quick Win Big Bet", "slug": "47-quick-win-big-bet", "bestFor": "Transformation planning, 100-day plans, resource allocation", "matchId": "8a41d016-0bc1-4d65-90e4-268cc251bd1f", "evidence": "The presentation highlights the potential for growth and returns on investment in Mall REITs.", "position": 2, "objective": "What are the potential returns on investment in Mall REITs?", "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap", "confidence": 0.6, "description": "Separate initiatives into immediate wins and longer-term strategic bets" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }