Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Craig Schmidt – Bank of America.
Craig Schmidt – BAS-ML
I just wondered is there any increased activity regarding store closing of the mall anchors?
David Simon
Not dramatically from over the last couple of years. I think there might be a couple that we're at risk for, but I would tell you nothing that hasn't been consistent over the last few years. Rick, you can add to it.
Richard S. Sokolov
The only thing I would add is to give you a sense of where we are today. We've got 766 department stores in the mall portfolio, of those only 19 are vacant. Of the 19, 12 are owned by others and of the 19 we're actively discussing replacements in 12 of the boxes.
Craig Schmidt – BAS-ML
And so I mean you're actually doing better on the anchor front than the in line.
Richard S. Sokolov
That is more stable. Their occupancy costs are obviously much lower or they own their stores to begin with.
David Simon
Look, Craig, I don't think it would surprise us if we had some department store closings over the next year or two depending on the economic retail environment, but it's really nothing out of the ordinary that we haven't seen over the last couple of years.
Craig Schmidt – BAS-ML
And what's the current occupancy or leasing on the Cincinnati Premium Outlet?
David Simon
It should be about 85% by year-end.
Craig Schmidt – BAS-ML
And obviously you left the Mills project, what was the fatal flaw in that? Was it the location or just the layout of the center?
David Simon
The location got better but the layout was an old – it was an actually old, original regional mall that was built so it had two levels. It just didn't fit the Mills one-level, value oriented proposition and we were very happy to sell it.
Operator
Our next question comes from Jay Habermann – Goldman Sachs.
Jonathan Habermann – Goldman Sachs
David, on your comments with the environment I know you mentioned it's still challenging. But as we're starting to see signs of improvement and obviously to date you have to be somewhat pleasantly surprised just given that your occupancies holding up well and leasing spreads have held firmly and same store NOI is positive year-to-date. Can you give us some sense for maybe leasing toward the back half of the year or even 2010? What you are seeing at this point?
- To read the full transcript on Seeking Alpha, click here »
