Loading...
Docoh

Cedar Realty Trust (CDR)

Participants
Bruce Schanzer CEO
Philip Mays EVP and CFO
Robin McBride Zeigler EVP and COO
Nicholas Partenza Assistant Controller, Financial Reporting
R.J. Milligan Robert W. Baird
Todd Thomas KeyBanc Capital Markets
Collin Mings Raymond James
Floris van Dijkum Boenning and Scattergood
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Greetings and welcome to the Cedar Realty Trust First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. to conference like host, to now Mr. would turn over the your I Partenza. Nicholas Please go ahead.

Nicholas Partenza

thank joining Philip call. you first and Chief Schanzer, evening Good for Robin Officer; Financial Cedar call be Zeigler, Trust Officer. Chief today's Executive quarter Officer; us Realty earnings Chief in conference and Participating Operating will Bruce Mays, XXXX the for

materially risks statements in XXXX, be Before we SEC. results from historical, XX-Q periodic filings call may Form deemed as that forward-looking recent statements statements, including the quarterly by indicated statements. may and ended updated and begin, XX-K other be please filed numerous are those uncertainties, Form supplemented differ made be such or by subject are those during aware the actual company's forward-looking that on the and may year These with not our disclosed for the subsequently most to reports

reminder, call, them. the speak the to update only As XXXX, statements undertakes duty of company X, the May as forward-looking no a this of date and

turn this certain now measures, operations GAAP information to call most over financial from Bruce on financial funds income. and that, site non-GAAP net web comparable reconciliations of will release I financial management the for non-GAAP measures call, its with operating press Schanzer. including see and may Please posted financial supplemental these directly Cedar's During earnings refer the measures. to With

Bruce Schanzer

XXXX to quarter Cedar the earnings welcome Trust. and first call Nick conference Thanks Realty for

evening Kitchen who refer Cedar's I am Cabinet. As colleagues, this to joined by my always, executive senior I as

online. into dialed Cedar participating balance or the addition, In team call is of the

everyday thank of collegiality, our of to their Cedar my take team to as into excellence. prepared and would help jumping remarks, in a moment well collaboration commitment like to all their Before strengthening as culture for I

values. leadership that Cedar, example, in these for very the would our setting company overseeing of also reinforces like a and recognize to Beyond their Board by team I tone Directors

board, us have and the moment Kirk, effective example modern truly Committee, him of It The to which a take an Kirk advised American. for a association On it retire Chair Paul the is his year's with of as very day been as from meeting, board pride board, United to rare annual a the of miss to much. a topic of great honor been source acknowledge has National us, of organizers disclosed, to was Massachusetts. for Senator of the occurred yesterday. who, as States intent previously member. and will the this debates, fitting is was the of has of He presidential we Democratic the one senator the a of Cedar all His Senator

him, we our forward I replace weeks. director the will announcing never for coming underway, search in While to to the well look be and is successor his able new

Although spend a Robin to wanted on take leasing, Phil a highlight and finances, our just to items. will time few I redevelopments moment and

solid at tenants they First, decision anchor largely and retenant alternative leasing since to resources or some our at concluded disclosed expending momentum Leasing I comment, am of and has the order I the economic we In our team, boxes. our of in result or for proactive is on of I the all centers. of More been resulted energy leasing pleased rents, Tim to and Havener, space. our tenants, trade-off was losing prospects term, leasing a Head remained I will vacant were I to will which vein, of of proud rent team the the let of over the than Cedar. Robin strong release This ago. just flat and in the a outcome, of of very our am expand how all and previously through reduced focus joining since by Cedar related assurance anchor year intent new approach highest that Bon-Ton this for the work capital a our at better and commend Bon-Ton on the vacated has These the have to likely retenanting the ensure, a excellent the as with for materially volumes however taken letters brought team are quarter in function space. generally, status of of anchor two he five

development strides. of gross our spaces use intent the is road we are underway viewed remarkable anchor with middle have target owner an by and Cedar all significant with an the at completed, of overstate urban positive Robin remains demographics. reanchored for of the continuing as I assets, projects, towards and team of the within redeveloper reinvention cannot year the of owner been Numerous lease of breaking Currently, of mixed for making letters end portfolio the simply this Second, centers, are anchor pace. is and and ground negotiations reach. of as at our impressive predominantly momentum how company. a the many junior

in redevelopments. our retail a density talk REIT, transformation transition to as markets cusp a the will makeover in are of we into hands. lower of But fact, at with This sell mixed our from assets only majority fund assets. number action We is the invested in the take of our use at urban its to beginning capital years,

of Before the passing were assets. our not bottom vacant financial did to briefly Corner or I and our human Robin, two further Both investments Notably, on five it properties. to warrant assets of capital. comment held-for-sale assets was quartile last anchor wanted Carll's

of creation, so reality cost our underlying Robin, financial allocation, capital. the a focus consistent will large for that, occupancy were to that are this were for were negotiations we ways, point focus value, and anchor, we with was doing and high to the an creating quality lease our that disciplined not advanced, a where adequate improved center, Accordingly, ending on the deal a hand capital various filled statistics, all meaningful to without can we got And with the on spread I supermarket the with a Although as human Robin? vacancy simply up opportunities. in negotiating just lease of achieving better on value over and we creation to call to value capital rigorous divest discuss better we topic our opportunities we the shareholders. decided our

Robin McBride Zeigler

Thanks Bruce. Good evening.

shareholders. for central Our value to been our and mission has be continues creation

smaller We a have been projects. employing of aggressively a working operational thoughtful towards both and methodically value through add advancing strategy, that steadily goal, redevelopment scale disciplined combination our scale large leasing, and and

XX been volume feet, of lease square XX,XXX front, XX spreads. their than simply totaling end with leadership, The this highly core by the focused X%, net place, XXX,XXX reducing new to grow rather tenants has with average we were On under one reducing leases rent focus has keep leasing executed, occupancy, to generally, maintaining we foot, our strong had on of term, and square was a as costs a deals our tenant Rather, which positive cultivating comprising returned Oakland an new by been stable turnover number drive during leasing that Tim's feet. spread renew. quarter, of team frictional and cell of mills, with the of which tenure, per a X,XXX at it. leasing square challenging that was my strong current off leased configuration. ABR the at with stability, occupancy Accordingly, phone possession associated space tenants $XX.XX foot have in difficult More in excluding a square emphasized the

square totaling example XXX,XXX This efforts, with feet. XX executed good quarter's result renewals, those of is a

shop the average square and Beyond in XXX,XXX Bruce comments, five XX deals anchor per square tenants both anchor executed, totaling an those were XX renewals of renewal feet. $XX.XX spread there The for ABR with referenced foot. X.X%, small lease his was renewals for

were their or a anchor it, The their that flat respective tenancy, reduced a at anchors rents, renewals reduced to in other and flat vitality order tenants the five rent. home were centers. the improvements These fitness with executed continued and in categories, demanded or key grocery, assure of

the earlier, achieve in was the the option accepting to adjusts the We which bankruptcy rental in five Plaza decline The As $XX.XX of at was which that comparable agreeing the better rents, was had renewal quarter-over-quarter, retail point drop solid the removal nonetheless, that quarter. reduced point the heels a the made due potential market, maintained these tops rate, anchor Bruce XX XX.X% their X.X% physical for X% renewal the upon closing spread to Notwithstanding negative basis XX strategic of XXX in in the of foot, leased and Gardner, Massachusetts described a occupied have a on strategic for representing renewals. of positive primarily as of quarter, leases a portfolio ABR volatility spread, totaled occupancy the square determination filing. leased to vacancy. macro we total Timpany than achieving to a basis we of leasing first the a XX.X% the end and traction, occupancy per

We prospects. pursuing tenant, have for some options are actively attractive and backfill identified already this

We by have backfilling proactive employing been for bankruptcies. a vacancies tenant strategy created

is backfill the prior tenants stores square quarter Trexler year-over-year, XXXX, Bon-Ton and in for discussions, will NOI one guidance. DuBois, box Bon-Ton in consistent two square to this at XX,XXX Mall, filing, with second have which foot bankruptcy XX,XXX to the take of the Bon-Ton box entire to phase closures mature leases example, are in Pennsylvania. two even with flat negotiate the begun foot with our we For result quarter in a of tenant to which growth was

core leasing course, creation, focus and pipeline. basic other tackling of the the our redevelopment today, value our related Beyond is portfolio blocking to of of area

for strive quality value-add growth has junior The and on leasing given at We the projects. beginning Quarter with retail XXXX. of be still completed commence This busy. add use our continue phase strong expected Team anchor of the end multiple truly capital our strong of favorably. interest Cedar heading markets Kupperman for our Port Phil. be construction. up enthusiasm laid Burkert Ehud scale everyday phenomenon tenant in has Havener, underway, have our have projects support today's for and with September East the our of community first our our efforts strategic leasing we underway. is mixed choppy values political River, I with these We signature to to high to company. and are deals, and to I anticipate is tenants, positive, project execution or been The large excited leverage to of environment. to now and heart, overwhelmingly South and the company's quality Plaza order proud this work the value and is phase importance we We and strategic Richmond forward higher lease The assets, will relative XXXX. demonstrated anchor focus. turn timing with the Charles very last moving Carmen's construction, for up portfolio has and very will both to The currently migrating to be team over development into renovation our in from crossing about momentum under negotiations completion XXXX in palpable. have smaller been the and of redevelopment for Upon take heading phase of Tim second we am construction. excellence, disciplined the groundwork a to call LOIs

Philip Mays

these Thanks XXXX for am opening to or same was FFO our operating add guidance and year highlights property remarks $X.XX of line to results; our share, call. to with operating NOI, Bruce was XXXX the and per period in questions. discussed compared flat. were few with million call Both earnings last Starting quarter, expectations, just Robin's and the Robin. a brief to $XX.X I going comparable full the in figures when in before

and West the we negotiated an of just feet the we accepted, discussed, Carll's million after sale. Plaza dark Bridgewater Bridgewater the forward or occupied had anchor negotiating, the anchor, to the dark shall still complete that of West $X.X end and dark we classified termination marketing sale with quarter, of moving with with place. slightly Bruce from impairment Plaza, connection to now the as a along and similar the of sales the termination be payment million. we quarter, the more the began square we payment Notably, XX,XXX for anchor Clearing In recorded as $XX received, believe Corner this, held During the that proceeds property with required standalone received the we of would sold marketing, Further, anticipated the than have reduce we proceed, property. sales in this closing XX% the property. very at will time, out once

cash per foregone amortization of or Finally, for received, straight share, payment of the market rental line payments consisting $X.XX $X.X for accounting dark positive offset the adjustments accelerated rent, anchor have and million of termination the by lease of the remainder below will million a earnings GAAP along this XXXX. impact $X.X with

we facility, Moving to of availability sheet; times. quarter, balance and our million the of the debt-to-EBITDA with under $XXX ended X.X revolving credit

elevated XXXX. is debt-to-EBITDA end from Our slightly the of

the are we reduce our FFO is per West previously With proceeds is temporarily our an the the result from FFO this dark we call impact, in the the having X Bridgewater Preferred until X.X% to Series share. XXXX of of sale for notice discussed, we share C could regards no until of giving equivalent number are XXXX facility, As debt XXXX enviable $X.XX an to of XXXX, on balance our guidance December credit redemption sheet And XXXX. preferred Plaza. last of our will adjusted utilizing the $X.XX favorable with million X.XX% One reminder, essentially per the now shares I resulting reaffirming outstanding range termination our to guidance; Stock the of year revolving questions. we the anchor operating period. of open $X.XX and from balance Series This full guidance operating the stock maturities, to of an requisite January of to of B in complete XX-day shares, that, updating after position initial at note in mid

Operator

[Operator Instructions].

W. Our comes your with Milligan first with of the Please R.J. question proceed from line Robert question. Baird.

R.J. Milligan

today think to curious, guys. these given it some is Hey, environment sign deals. there anchored My obviously question the of evening out for good sense, makes first I Robin;

the you lease a a do slightly Just what where XXXX, lock longer does look of and anchor for rent the more rest in year might term the doing lower lease tenant? for curious, of these like anticipate in a of roll to healthy you take deals, types

Robin McBride Zeigler

Sure.

the having the but out XXXX we roll, roll never, current we before, as the as anticipating see lease we it, of I taken there based and That about our look for talked current being I are biggest the the it think and we today. horizon the look conversations see have and XXXX we brunt never any that purview on at have say we are going as that don't that's at that rest rent are proactively as have currently, reduction, anchored our out, that after So we tenants, others given said, of we already. we we climate,

R.J. Milligan

Bridgewater my Okay. Carll's allocate, you Thanks. the the is between second million, can question where for were Phil; $XX.X And impairments between asset? Corner and the

Philip Mays

almost it's exactly Yeah, equal, R.J.

on other. I one, million think like the is there $XX million $XX on

evenly So spread pretty the two. between

R.J. Milligan

then Okay. term is $X.XX Thanks. And expected? just purely is my guidance; the increase so lease the on final income from question

Philip Mays

Yes.

there. that original you guidance guidance and low, will you our So in take our out that's the $X.XX, current get high

R.J. Milligan

Perfect. That's it guys. for Thanks. me

Robin McBride Zeigler

you. Thank

Bruce Schanzer

R.J. Thanks

Operator

comes Please question the Todd Markets. Thomas next Our from of with KeyBanc question. with line Capital your proceed

Todd Thomas

afternoon. Hi. Good

Bon-Tons, backfills the on First question, just two there.

if what's rent the then I and to two also, paying? sorry have do the there how spend First, this, And missed timing much to expect those occupied retenant GLA you to boxes? but

Robin McBride Zeigler

Sure.

previous to mentioned between rent we we $X said, lease at XX,XXX spread in remarks, and spread lighter from both there, get fairly done TI, taking the at on $X the landlord probably I outlay as from landlord between to and we a box, higher splitting tenants. because work expecting there there, a expect little to capital working then then, that We box the that are XX% and as for to XX% low rent rent spread two the positive will positive and the a range, million And do are TI. prepared not at have looking almost town it So between looking rent pretty Trexler in had capital. existing a so had Bon-Ton, But we I Bon-Ton and there, a expecting box. DuBois, range, the a million

the foot expecting as deal will that be a both square looking to we that quite starts we box. be XX,XXX And are So at, rent have but are won't take that on we attractive, XXXX. late do tenant entire

Todd Thomas

that And should year? of in new based little quarter; pipeline what's but looking lease new signed know so forward; the we the sample, a it’s then, I a deals, there expect improve economics to see, on wondering, just deals Okay. the throughout on lease small the were bit, comparable the the the curious in balance

Robin McBride Zeigler

we will that as will some we be -- on I mean, But the one who positive, as of be deals go do things renewals, I new as some happen, previous flat. these depending be annual to calls, leases and have, there. that bump the get in try what the is, all tenant will it is, X% market so that mentioned in we have the coming in have negative, some of try rent our contractual in even X%, there, have through to coming deals do of to that contractual of we to through our bumps growth is rent rent all leverage

do we have So that.

and And I X% are and and it it does we expect did is from of what quarter-to-quarter who quarter, is, quarter-to-quarter. what present center the it there, so tenant with, which and as as really depending from that just a situation we would dealing then shopping which at, vary in deals depends of looking to honestly are upwards baseline, you somewhere see so, the on leases pool on you

Todd Thomas

should we around, Plaza. here? a I you bit West also you think off sale provided here. Corner? from proceeds proceeds provide how that I about the Corner Plaza regarding proceeds detail those of a timing mean, redeploying assets, bit little of you little Can two the West the Bridgewater of then, about range on expect the talk update dispose for And you helpful. can guess, That's the an and Okay. Bridgewater And Carll's in transactions expected to Carll's

Bruce Schanzer

occupied them is significantly be and not five pound basis. to to in per terms get That on it call This done. is four or both, of timing, centers a months going

end $XX most. $XX between million at up So the or million might deals, two we with

so I imagine, fee. the would termination And and inclusive that's of

so, would regular going for corporate that, are I it kind And say use to purposes. we of just

Todd Thomas

that a the that here? new sale a stay just And economics And the how guess, getting this Okay. versus market, costs store there with, store far where they Was was so are How at another from far grocer of you so in I the the a relocating really? from advanced in lastly, -- price Corner, them? now will Carll's in deal rent leasing they for and negotiations store? done, were the delta

Bruce Schanzer

Well you what some thought asking, necessarily you just anything. isn't to give of feel for probably, are illustrative process. of a deal and But, dynamics the our

the So terms line a in deal. effectively we were finish of with just these about at folks, doing

installing So tenant, this rental The final were very it with to down able terrific very-very this be wasn't going expectations to or nor the kind market of much we Carll's to to challenge the anchored the that the activity had. rate aggressive is capital thing, this speculative weren't such, would even is kind highly after was pretty where that details. of theoretical, get we Corner, that justify the drive tenant cap kind of the

And capital. we achieve able meaningful a so, cost is were of up, ending our to that to we weren't where spread

financial at not we very essentially, a the capital going money, meaningful seem would that put for So expect to to to capital, spend our articulated try out to capital, which attractive as do good with were we meaningful what our capital we didn't without our it And plan described, have center. return, pretty we and that has I human for company about just returns, for get as plans meaningful invest ambitious value a created -- [indiscernible] how or we capital matter. thoughtful and generating like be an to

Todd Thomas

you. Thank Okay.

Operator

comes with your question James. Our line Please of the from Collin Raymond with question. proceed Mings next

Collin Mings

Good all. evening Hey.

Bruce Schanzer

Hi Collin.

Collin Mings

back quarter. First Phil, anchor going clarify just to lease to the during the

in still you expect somewhere that do or range, net NOI that all? changed from drag overall, on Just the this reductions $XXX,XXX at has year,

Philip Mays

Yeah.

it. bit, were did that the of happen. But all it, more quite close just in, five that, of that it a but it came substantially $XXX,XXX of and include as $XXX,XXX, is that lighter what far not a anticipated is right should drag, out of most we done, little than hit, the as And little already. most but to hit is So quarterly on

Collin Mings

right. All Okay.

modeling up. there to bit there, pretty in from But standpoint, there? is cushion So be else in a should going much, case something pops in hit little is what more is, a

Philip Mays

Yes.

Collin Mings

of just year, how guidance making just lines, the given and Okay. the And modeling a can flat you of the from kind then along us, any NOI. over move just of think give through balance the Obviously a XQ, trajectory in around little portfolio size that standpoint, can same bit? about here just that do maybe store the but you

Philip Mays

Yeah.

be flat store the same million the bounces quarter, X%. end but maybe little NOI pretty close X% our $XXX,XXX positive, slightly maybe quarter, is a so for and negative, year, generally each flat or of close So up slightly $XX to the year. each a better to down it It quarter flat bit towards will up ramping

Collin Mings

indicated, Okay. cap stepping to you That's back All you the And internal the apply had right. call, February kind helpful. of NAV. then you'd raise rate that Bruce, your to

you kind at is three this of to further? later, market, months what characterize need, kind any you point? more you are Now when in that any this as stable -- based up the ratchet seeing Or on of seen have

Bruce Schanzer

would described how in I I it say pretty that with February. it's consistent

to activity our Collin, calls know with from all the of you markets. carefully and us spending in we a listening our of very time deal lot As track

feel, that it's speaking, give December seen market. And a deals, you pretty call we market. we call since, to going So XX this would grocery clear year, supportiveness for lot there in a no for a well, the certain of held reasonably last continued about is comps it exceptions, the up of on fire broadly centers, right anchored demand has is of sale just There conduit have that very and more retail still with limited shopping broadly, function now. demand of is strong and our

in the retail points That literally February, assets trading. most market, in financing clearly has as but available the are is there about I been some So said, truly. talking that buyers we of to softening basis there are mentioned for still

highest the example rate cap we So and tracking deal. great that New Ferry, Dobbs was York, quality in sub-X% that shopping Regency an bought just and is, are a asset centers

for been a while. have We tracking that

of the so, rates. pricing fact, little And grocers, of up basis at to it in points we'd in points. assets in things bottom again, a are in hoping observable rates, widening our described slippage. where But much are cap the steady held relative February, solid basis it's terms maybe we cap call were. widening, quartile we to that about But to XX a pretty And for look held when see bit you XX seen I as some may quality we with talking at XX be XX have assets,

Certainly, be we pretty of price, terribly are to had concerned over are pricing, but where had or seeing equilibrium the observing that. sellers pricing been, we still seems buyers bout and last more we between we as are so is more not and right gotten to aggressively point, now. And call just we years. as it where an about a But things, solid. two This panicky it are a

Collin Mings

on the Bruce, for opportunities me, one just in just And focus portfolio. appreciate the -- front redevelopment some on one obviously, about there thinking strategic, and then of on lot a the last the of the Okay. just detail

to of certain or or maybe of some you or any pipeline the has raw just as you a labor the consideration? about is in think projects your plans now caused amend you costs, that pressure not how the really on materials, are Just tweak upward approaching and that continued construction

Robin McBride Zeigler

Obviously, that, be going X% labor factor there. in what's potentially pricing staying with we have of of speaking, redevelopment. dealing and and a nature. we costs, could But Generally inflation, think that to X% we due that to inflation our into material and construction our spent pricing on things certain lot on tune with of there time and

are And comfortable what's on so, going we there. fairly with

softening We market. folks there relative the into that some just going and to timing, the that XXXX, that project think, in hits be going based the our in when timing what's market, market, construction in talking the -- other on on could also to of

the we are going those and based accordingly. in how our priced projects on So on factors, market, with what's we comfortable have pretty

Collin Mings

Okay. Thanks. I appreciate it.

Bruce Schanzer

Pleasure.

Operator

[Operator Instructions].

comes question Scattergood. van the and line Dijkum Boenning next Floris question. of proceed with from Please with Our your

Floris van Dijkum

afternoon good guys. Hey,

Bruce Schanzer

Hi Floris.

Floris van Dijkum

bit able rates for you of look guys; sort cap fund going you want is quartile indicate further, does widen softening for you -- for or little be there quartile, your to as leverage of you cap rates look that quicker, forward, the as of some redevelopments of order capital for bottom those pipeline basis? a in potential Question you a to assets at some lower make potentially before sell neutral of be widening may to and you the your and requirements on

Bruce Schanzer

I Of question. course will Floris. That's terrific a

monitor cap one So that we reasons carefully thank rates. you for It's of asking about. it. It's of course, so think something that the we

change sell the assets appreciate it we amount amount of generate, us the on only rate or dramatically fairly the a so value; process, don't cap their of and be because the As that in these vein, cap that assets, will they kick off similar net these thought so flow, hand, high yield assets from they are fair high sense we of operating assets, a when capital. annual relatively are value, income. to generate because substantial assets cap continues with erosion in quartile on a the need widening, and for And cash lower we rates of you and make selling, a widening flow benefit not rates to to seeing cash hold cap assets, to the to they the them, meaningful already, rate these even for one

that on the benefit before strategic we wouldn't we information of strategic was Now capital some a had assets if portfolio -- larger might cap sell us that the in meeting said, But based do transaction, portfolio, there we are rates these large of widening it. that as concern, the to out doing today. front

in So where cap are best the a if, slight words, our now, flow other bed think the is right of need that widening the capital. offset change falling we reason, generate, assets, we value widening, doesn't we qualifier, we considering cap cash out is with we that off, the ground, really is rates rates my point, But on our the erosion and until facts some these might strategy seeing see on the hold that to to for these where assets only opinion. to premise

Floris van Dijkum

question, value sheet going market peers the little to wouldn't I view, And more theoretically, rates in rates bit -- as and your that go is and more balance to asset forward. up what's a related on you rates a if rates I on impact know. you up, and will and your -- in up. and guess, wouldn't than But cap the don't to it than go that some your leveraged view going am of it I that market. mean, cap your your do go continue depends to I if will address happen potentially the look cap not or I think want depends don't net guess

Bruce Schanzer

correct. You are course of

really our mindful As disproportionate rates we lot [ph] than course companies, our other way levered our have go to were that fronts. impact think up, we two more on are analytics cost would cap an are a And that the into absolute because that. statement, and a works debt of of about its Floris, the we if way on of NAV, of it

has forward model curve our LIBOR of the and forward are a go So up. projections, to rates curve I corporate forward all, incorporate the sloping, is upwards always it interest forecast we interest should or and of and into suggests as we that the curve, course, rate been, that say, first course going of yield have

our up. so, assume interest we terms And going are of rates in forecast, earnings

markets that, the rates are example, our we when of about, assume going for beyond weighted we interest capital, average that As cost participants up. in think

considerations fact what and allocation our do the might cap we value, net all might thinking have leverage, just capital alternatives. we asset that our take all on place add about it and our we rate, are weighted So of average capital. roughly our when think about XXX said, cost our in that debt, impact we points, of we of the cost that XX to that rates weight in more have that basis to But

And dramatically, will, another think invest. -- are change, next something just as so rather you to how capital but it's what would that that that dollar we doing have invest that factor, about us not to it's of we cause if to we dollar

Floris van Dijkum

one you you then, disposal. have obviously can't But which some but point think that? peers of that is that? the and your I that is the your Is -- about not there at much shares to that your undervalued, Presumably, guess, have don't that you to right about buybacks. use are utilizing, the believe at share tool this don't do way flexibility are you

Bruce Schanzer

that very peers I our share probably similar would around about say thoughts buyback to -- the are think it. how our

small a of one measured dollar an And share is other to when maximize have that opportunities buybacks. trying capital things we so speak. What them that about evaluate are we we So those share toolbox. we certainly are tool and you think by that's return, a course, trying about is say readily in, capital, it's we do are so to toolbox, more of thinking to But about our as others, considering return our just the are get when alternatives, weigh. we buyback are various presented it all size, as we the considering we we our that of that in as and can't to tool share as buyback a significantly, leverage do things, you referring a relatively What when that factored alternative. do think in invest do there and as

Floris van Dijkum

Thanks Bruce.

Bruce Schanzer

You got Floris. Thank you, it.

Operator

And we Bruce the call Schanzer, session. the would Chief reached back I Ladies question-and-answer of Officer, remarks. to the Executive turn and for like closing to gentlemen, have end

Bruce Schanzer

the in to this interest you many conferences. of joining and look seeing ICSE continued appreciate We for NAREIT you Cedar forward your us at evening. upcoming Thank and

Operator

This concludes today's conference.

may participation. lines disconnect this You your time. your Thank you at for