Our growth focus is internal – as I mentioned, not really that focused on external acquisitions, although we have spent some capital over the last couple of years to do that; and capital investment really refers to a redevelopment/development program for existing assets inside the portfolio. And a prior and always a current topic for us is how do we de-risk our balance sheet and are we reducing our leverage.
A brief background on our portfolio – today, we own 133 regional malls comprising almost 57 million square feet of inline GLA – gross leasable area. That doesn’t include the anchor space that would substantially inflate that number. Seventy – so more than half – the malls are class A. Class A, class B, class C are terms of ours used in the mall business. Generally, the distinction relates to the sales productivity, sales per square foot of a particular mall. If it’s more than $400 a square foot, it’s generally deemed to be a class A mall. That’s a little bit more art than science, but you know a class A mall when you see it and these assets generate over 70% of our net operating income.
We are almost 94.5% leased as of the end of the second quarter, and we’ll talk a little bit more about the components of that leasing, and we have $533 of tenant sales per square foot which puts us in the top of—we’re near the top of the industry.
Originally this slide had a little history, starting in 1952 when the company was founded, that I thought might had been a bit much going back 60 years, so I thought I’d focus on more recent history. The company came out of bankruptcy in 2010 with a $6.3 billion recapitalization led by Brookfield Asset Management. Howard Hughes Corporation was spun off to shareholders and then there was an initial public offering or a re-initial public offering, if you will, in November of 2010 for $2.3 billion of equity in the real estate space, one of the larger capital raises that was done in the equity markets in the last 15, 20 years.Read the rest of this transcript for free on seekingalpha.com