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Cedar Realty Trust (CDR)

Participants
Bruce Schanzer Chief Executive Officer
Robin Zeigler Chief Operating Officer
Philip Mays Chief Financial Officer
Nicholas Partenza Director, Financial Reporting
Todd Thomas KeyBanc Capital
Collin Mings Raymond James
Floris van Dijkum Compass Point
Call transcript
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Operator

Welcome to the First Quarter 2020, Cedar Realty Trust Earnings Conference Call.

As a reminder, this conference call is being recorded. At this time, all audience lines have been placed on mute.

We will conduct a question-and-answer session following the formal presentation.

I will now turn the conference over to Nicholas Partenza. proceed. may you you, Thank

Nicholas Partenza

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

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

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

certain including financial these information management measures its Please press most financial supplemental may and During net GAAP the operations for measures. comparable reconciliations release financial website see directly Cedar's financial with income. funds non-GAAP refer posted this operating and non-GAAP from earnings call, to of measures, on

call With Schanzer. that, over turn I will now the Bruce to

Bruce Schanzer

we our Thus, on this quarter earnings largely XXXX shutdown the unaffected was as the first the Cedar’s will Thanks COVID-XX The pandemic our call. to comments Good resulting taking a is call, Nick. technically evening earnings an and world the focus in unprecedented period. has of and crisis. and first conference place U.S. XXXX quarter crisis, although much globe, the national welcome which economy. This through during call is swept by

I an and their both of and moment dedication period. this Before the time take for members been the during for incredibly beyond. wanted jumping at a into This professionalism Cedar of teams difficult Cedar everyone, the to substance thank has to call,

our and of highlighted time has fragility interconnectedness. This life the

We neighbors virus protect don't our parents, frighteningly to friends, from are a has all that to deadly. grandparents, we be people know and and proven staying home even contagious

reminded and are that is life all We for we that health else. value this through about important. one most above Mainly, another we look what and out experience

does of and relative are operating success in that the our focused What an achieved while it was acknowledging rightfully fairly period been are when experiencing on be context. with important time humbly has we much we a and this put portfolio, on over discussing short are death. we the will of the life appropriate outperformance relative we Nonetheless, more pleased call of issues it

time those price well this peers although at the our Furthermore, at relative our of our is our our least, has low. XX% at REIT tenants portfolio business basis, closed stressed, like all-time an to of a approximately performed say on with share retail and

As against you order measures we took scenarios. similar the to adverse guard have and especially in immediately seen, after peers preserve pandemic, cash being to with our confronted

we revolver, drew scaled scheduled continue spend guidance. mixed-used to our capital our meaningfully we on which the and back million earnings at our redevelopment, $XX Specifically, our monitor suspended reduced dividend,

stock of could subsequently we about measure decline share reverse $X price be the per we our need to through potentially pandemic, price that announced share, addition, In a the split. by take triggered due in the our before share will end per increase year which to a to the

is discover of by whole center are and REITs, as for starting see separation the real of XX% to a saying results for XX% shopping about asset relative REIT In average that tide of revenue “you our a we goes swimming to to With type. the reminded only performance REITs, other our who April attributed thinking Warren out.” collected when less naked, famous versus dramatically Buffett an over I'm our mall retail recent retail a

though of about decline arrival often. The it mortar with the begin underscores the spoken bricks in didn’t the retail and secular has low-tide characteristic have of provoked differentiating COVID-XX, we many

two highlight are regard. specific in this themes There to

First, centers, negatively with are These to resistant, of therefore entirely shopping predominantly are assets real-estate our retail simply resilient services grocery retailers. the almost necessity are anchored retailers. more other Cedar’s than sensors and internet based many more trends assets impacting

between discretionary retail fundamental centers, levered and there's owned as difference Second, real-estate those lifestyle and and street to smaller such soft as format the and big-box by Cedar. neighborhood good such a assets, malls, retailers, retail centers good operated

of the that long read years mall which the revolution when in on mortar retail. term secular the whether own, or for landlords about shopping settles assets center, bricks the survivors At have other Cedar be and types we will dust

lying and very I the didn't years be acknowledge I'd to could that societal has we we Remarkably, long now would experiencing the the been thrilled assets. are it own and commercial have if impact engendered over most fundamental pandemic to such Swan and assets prices and embodied that a This the gain Black Cedar catalyze portfolio. The to in in highly favor markets. Cedar’s be capital investor sentiment causes could change one, well by its that characteristics term

greater bricks This an before exclusively. coronavirus future, exclusion very and years pursuing that uncertain and has different the the grocery probabilistic mortar into a of the was income and strategy been volatile Over slightly been even introduced on have pandemic and to areas we future in retail. almost in trade have environment uncertainty to anchored or population focused approach which a we the assets and education, of

since times traffic high income more lower education. we portfolio areas our a online, to pattern shopping above while have migrate that necessarily that based people the often refining are That trade necessity is thing, retail, In over and incomes than less to or simply and else. more they needs retail said years, matter growing a ourselves bad and likely all slower category aren't reliable. The to defensive

our Nonetheless, favor we our highlighted others for accelerate starting a as we appears focused capital. between the relatively mortar also in of to To real-estate bricks and to our have now the asset fair, and are made cost prices type. assets in retail sense see manner on considering be evolution that positive differences that us high

that say comparing shopping is hotel. and centers to lifestyle big-box centers, to often apartment street malls, like retail I comparing centers anchored grocery

capital us with market of to place real-estate, speak when non-grocery lump malls, street because professionals often in people big-box retail, and lifestyle, offer a Somehow, will retail they centers, all anchored shop.

to and lumped all stock as fundamental of consequence and a of will retail. and you pandemic, we REITs one the they see see price of difference However, purposes mortar what of Hopefully a apartment performance be even positive start different this sleep. not our though categories bricks senior appreciation housing people and with REITs, in place provide business greater will with within hotel

understanding on payment financial as is matter. supplemental helpful Our from provide detail coming purposes a of filings different tenant for general of categories where the

one and the to highlight our that However, it thing composition. not asset is function is a tenant of simply

attacking Our job of challenge. has exemplary done an team this

proud credit be We average in tenants, in. have seen has which of overall embodied much quality prouder depth the for all not touch am of could contacted these forbearance, have interactions and a just has and in time. human to collection, led not but about to the the have Thus a Cedar. this not is discuss I collection just simply and of way out to during only performance much marginal team check I quarter function to-date. assets, over than our our turn is or we rent the say a second better rent this group to relative The but they collection driven our that very collaborated it

in to solidly I'm portfolio and dedication, Although performance predictions team should the reluctant uncertainty, make is far in are thus the our and out continue. this face so think work continuing tremendous to collections any of coming I with bold May relative focus

COVID-XX very they about note, look that think of of comment foundation uncertainty. as struck note their digesting I think we to world as their tactics preface sheer of us that my bold is am is what of do I critical of acknowledge these the didn’t by anticipate none to the telling what pronouncements employ, strategies that in face from the the thinking On in for we is volume it so prediction, to pandemic and going plus ever these great acknowledging in that work commentators people I like. home, all I the prediction, post

For capital in who their and work considerable with greater made an the be actually must navigate decisions have environment. analytical to to to humility we ever put this uncertainty, endeavor face those challenging as of with this mindset, through

at street stable shopping shopping grocery will is will be I soon, and centers. retail team and retail our centers while tenants be our anchored enthusiastically to performing prediction leasing bring malls, not one new However, for to outlets at lifestyle many that these will consumers more better make anytime

assets we have been our despite In the we also our we are at this where up finding that juncture, have fortune, for extreme good well, stress of but fruit ourselves relatively the years. trees many realize held harvesting planting acknowledge

Our of our of storm. perfect a types filtering on has focus find approach on through helped certain during company this to assets solid noise relatively of footing lot itself

our our share I am in yet price. that sorry reflected seen only shareholders have this

However, there seen the capital we I tied hope be appreciated in platform operating and performance the particular markets once the stock years of be that months again, like moon, the will in have the cycles ahead. our and more will and assets high in a

could only very retail made our us and be well the in the survivors mortar crisis the long said, assets accelerate. more portfolio optimistic as this That secular of our and bricks relative decline term that has outperformance

topic the and in the or grappling results to context life Before this really in would time, operating strong concluding, return our like during I whether that what at must issues we was digested of matters. fact outset. be weak, of discussing to are Mainly all the the the face with death I the

we these and consequences food in economic many security the the challenged At many where and coronavirus a on real instances severely hit issue. communities. grocery Cedar, within communities pandemic are of have of Unfortunately, focused is grocery

while place we go time. I and to We to struggling security be this a supporting call well their need encourage local to good with that doing on often probably idea near at food you'll are our than to their amazed about during pantry. who more rather, and take Cedar a would themselves you saying; close be me” doing consider to Today, this for to feed pantry people unprecedented community. for shareholders compelled where and ‘food nice order needs live in families. our are how talk food everyone unprecedented Thus, at Google actions

of supermarket, check. up an at if you're canned just it off you we bring local at This When step $XX a or our and staples could it goods, is behooves pantry can. the extra other a or crisis facing bread buy communities drop to your and us them

navigated the will and With crisis provide give that, detail I thus how discuss have far. coronavirus to results our you we greater around Robin

Robin Zeigler

a evening. Good these I Bruce. quarterly the I our moment, we will Bruce's Thanks as sentiments, our challenges remark on team's did times. but more has I work at efforts in process not of proud the pandemic. remiss would to and worked far be results results how through faced and of the through team speak could of coronavirus if To be thus echo this not Cedar the unprecedented I

During rent. of our the month April of XX.X% we collected

is to the collection relatively to we increase this collection mentioned, Further and finish expect continue of performance. our XX% previously collected May, As have in as the rent we strong May rent some currently month. a rates

categories and tenant dollar grocery annualized grocery our stores stores, comprising rent on and casual annualized base up rent with rent. stores. are total comprised Our fitness base our five service of categories full fast, top annualized XX% alone of of These XX% total base based restaurant, make five

anchors, substantial can category. a success grocery well April Our in tenant relative attributed our into collection composition as be as base essential retail part falling rent in of at the our to

However, only these are not the factors.

implemented a tenant collections, supporting to to viability forbearance aims communication response the meet while and which dual collection process, have we of robust ensuring the of rent crisis the We immediate designed rent and optimal tenants. an our

any of of there our lease want lease to were forbearance we as to ascertain this in portfolio if any process, provisions part every we rent modify reviewed agreement. As part would

payback contacted every did shop with to that verbally have not paid rent XXXX. ultimate XXXX initially regional or to rent local set or plan ensure a tenant payment up We rent and small in April deferral

and lease relying that anchors We we provisions. under leases with support some that the In basis respect in a are and are circumstances, are of tenant requiring other in been provisions specific tenants one-on-one shops handling for payment express for financial relief where national business national instances, no small objectives approach. have full two-fold on discussions instances, rent our a pay exchange in obligations other to present identified on entertaining their modification In on-time. tenants, certain with we and

makes have are retail. through open, of are of of to come ensure needs customers time and Essential to closures, to bottom reassessed our which base to expect, essential our to best In are standards conserving rent the considered we XX% store operations keep XX% retail this overall scope have expenses order where the we possible maintenance XX% of our composition. stores Currently managing that during line. our up manage property while the

result, a monthly As by property and have postponed $XX,XXX we $X million level operational almost reduced approximately recurring expenses capital of expenditures.

with strategically for and for have and add renovations tenant XXXX urban and we our shutdowns reduced our applicable both mandated redevelopment Additionally, projects. where in and spend capital significantly complied construction mixed-use value development government's construction

square perspective rent an signed per at square option foot. square XXX,XXX From feet XXX,XXX renewal a performance. Lane and a feet, totaling Now, at $XX.XX deals XX X.X%. were of This of XXX,XXX includes on at executed feet quarter XXXX to Newport. the Jordan XX three base positive totaling spread grocery point totaling leasing flat average first we renewals square

Excluding X.X%. to three grocery spread the increases these renewal deals,

a less negative leases, of one than of new overall executed at X.X% a vacant were lease and were comparable leases an resulting seven of new vacant XX.X% and in spread negative comparable spread X.X%. that year than comparable executed comparable of positive Five longer one were net overall lease spread spread negative XX%, year, at

XXX XX property points period the higher higher basis the leased quarter basis than same than and First XXXX XXXX quarter. is in prior same occupancy points

been I It of have team time the of company. that in The of senior effectuate discussed by take I their in are responsibility. demonstrated to some team management to in and has inspiring have the and as required COVID-XX, or dedication literally truly Cedar and regular order has that behold, of During involved every not on all it aspect assignments member exemplary and part job cases in to step not, members the that department cohesiveness Cedar a

With that, I will give Phil. you

Philip Mays

call along accounting this and our of have impact will financial on On I additional operating financial comment and Robin. added with results we of discuss Thanks some to briefly our the then information QX supplemental, COVID.

results, operating $X.XX $XX.X for operating quarter or Starting FFO with the the share. per was million

Square. related rounds As discussed $X.XX to at on termination to this included income calls, quarter per Food previous our Shoppers that elevated Warehouse lease share Metro

period redevelopment when redevelopments NOI increased Same X.X% properties in included. and excluding property X.X% increased over comparable are XXXX, the

growth redevelopments includes included. the always, cases in stages. As our various thus are some year, lower In past this over are they NOI creating intentional causing when vacancy

category. to With base and regard a filed page by additions adding we've tenant today, financial modifications, and including provides our annual that supplement rent DLA several made

XX provides Our now Decreased feet expanded and now our real of XX,XXX and for property. square grocery summary of to by top tenants XX,XXX an tenants. estate feet our key tenants tenants square expanded larger anchors highlights measure our include from list shop list our to

particular, very insight more information our provide from retail to modifications find and revenue. and detailed and GLA very believe provides into tenant I you will our additions tenant it our ADR that base by various diverse categories we the these which category derive made think I We informative. about portfolio. In

to COVID related moving Now matters.

facility, to addition increase the liquidity respond on operational our near spend reducing and to we various reducing dividend other revolving to expenditures. and in Robin share, credit construction $XX common In flexibility taken drawing financial including per million measures evaluating to $X.XX actions non-essential COVID, have term discussed, the

were by our that QX not It’s to COVID. significantly to the closures, the important due of mandatory impacted timing note earnings

COVID. certainly earnings impacted our However, QX will beginning negatively be by in

the cash previously GAAP for income be to collectability lease prospectively elevated reversed, less be which be a revenue to decrease not In both determined debt probable, all are in receivables in expense. on lease income including and requests result of for which collected, straight-line than accounted basis particular, will tenants a bad related and lease for to income recognized

relatively year has impact the strong grocery-anchored the full we’ve portfolio May, economic for our XXXX COVID, and guidance. in withdrawn caused by of April uncertainty Therefore, while resulted given collections our

open that, questions. call the With to I'll

Operator

Instructions]. [Operator

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

Todd Thomas

supplement additional Hi! on Thanks. that’s really afternoon. the the retail the Thanks for Good for categories, detail helpful.

Robin, Bruce, First without in there of retailers soon or that know a take grocers or benefits aside And grocer is question from number other you April it budding rank are in a some demand vacancy collections you about of the centers too a see any potential space starting signs essential but for maybe portfolio to have you little the Bruce, in the see to May, materializing to additional are tell? from type, and you anchor. and product spoke you your portfolio

Bruce Schanzer

Yeah, level What the seeing we tell Todd would mortar at too course are to of supermarket is that soon grocer tell and and at I our it’s for other this bricks performance strong point. anchors.

the to opportunity it case we're clear for I anchor that again, were and stronger odds to have pandemic, isn’t where the move certainly of so vacant But have, for this need potential to leasing if grocer in, improved two there one the going Cedar. grocer centers to mortar and just and anything So we is before, it’s idea or certainly has probably this a see those think since. the whatever of certainly through an and grocers odds gotten bricks there's a

associated actively clear to these course be I people deals. aren't we're of think we'll that releasing to of going which able need before of some now right how we this to all anchor are going to boxes, and doing say anchor pandemic shutdown see confidently be is

have reopened world grocers, that extend strong they it's in and kind space in of when some contact our vaccine potentially of of of just that interest matter suitable an a to them. for might maintaining some them by be of we having the terms what really seen hoping So performance with

Todd Thomas

what or centers. some and store of I anchor this anchored and you sort for guess does drug know mean Okay dispositions values, for property grocery potentially

sort You and know assets to and monetization ability of into development de-lever? change a as volatility these well, have but the does disposition are that like any quite the ahead? company's And maybe you you forge today and order intensification there’s tie bit of projects potentially the know advancing. you use capital strategy to you market How the the mixed assets of for what's this markets that in explored can

Bruce Schanzer

seeing for of pieces or in just try lot whether mixed a exploring are one what our are The we're what questions. few answer around there how are redevelopment the there, so our and There of know any that I’ll transaction second was, so few evolving ideas are question was are different question third then kind There our a of a grocer availability. – use the values I'll transactions maybe we and capital potentially in and thoughts Todd, to you to projects view question is different for of for activity any centers; value evolved centers? was, more generally, value both, our light then in

those So of and each Phil or I'll Philip third expand one. I'm Robin ask questions on answer then going to the to potentially

current freeze. first So values aren’t markets and conduit seen with how markets have we in this capital was any that you imagine, deals Well, the shut, you kind two with markets tapered last of there new can getting CMBS know of over months are terms the question, evolve. the

in our the great we types visibility asset geographic typically activity transaction certainly our footprint. have So into way for we don't do

our shocks before this you consumer comment potentially my this there through have sensibilities that or real-estate prediction we seen affect fundamental happened, that are that possible whereas know see had behavior will before The remarks just when very and some that my predictions, asset well change what changing was comments with consumers, retail My market is coupled that right. prepared performance this during the asset was and a endure potentially we term are do of real of of stout survivor what mortar the thrive retail terms between and is of what be that that in it's think our challenged. as in of view type retail and type, of the secular we that in to bricks or the we fact we real-estate just going type was types going long that this I are retail estate to in and and decline pandemic, of decline of continued of the really real-estate types see assets

about bricks retail it, the the I first of thoughts your to basis, how terms optimistic we're a is answer is, value questions more because little with our they and anything probably a lot pandemic. doing that ourselves, think that activity assets and again and appear bit to of seeing thought other before, be (a) of (b) this we a compared second in we're assets So if not around better mortar through about than relative types on and

of your XXXX it’s mixed-use announcement of scaling are In Certainly question. that last saw our complicated assets, we you that our for question, fairly terms spend. at extent a the capital least the back

continuing potentially and so to we monitor are might further. even that We scale back

haven't capital yet You any evolved is use too that's might that around capital situation question. about how we us that early think are that the this to which we extent a think course our just there simple to relates we’re we up centers mixed a We assets, starting into anchored to to analytically this about make market we somehow but about, to think that for further fairway it’s that realize that, putting the the know grocery way for into really the calls have of allocation. in but that one resolved, is question calls

So going the certainly world we're that to about something think evolves. it's as

Todd Thomas

Thank great. you. alright Okay,

Bruce Schanzer

Thanks.

Operator

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

Collin Mings

good Thank everyone. you, and evening

year-to-date? here. question $XX Todd’s the reduced further. to could prepared maybe a you that press Again, referenced to have couple be first elaborate even and plans between million down release Can the it wanted just and Just remarks to spent spending times you back what go capital

Bruce Schanzer

and as I'm question well, but chime then in start let and why going take Robin potentially Phil, Phil you obviously don’t might that. that to I attacking

Philip Mays

for the in Year-to-date I name development exact million. redevelopment it’s – Hey is that. a add-renovation less it’s and say don’t $XX the me, the or the I value of but little should million, less than front not the $XX have than Collin! and number

Collin Mings

the just relates and – again use as the it beyond with Todd’s to economic Okay, theme of mixed projects. shift commitment kind has and again potential potentially in sticking to assets. then as But of distancing the then here capital cause it question, how you kind sort that of reimaging maybe just the term of just outlook just measure, you and to the long social just relates impact the some of

around densification now Just the right of of kind attracted just potential Bruce? picture things. are beyond, bigger projects? these to that some tenants things the of again thinking kind capital and about you that might How be about Just side of

Bruce Schanzer

me let you know Well, I’ll then Robin. little and bit off a to take hand that it of

is So course, are that the of project Crossing it Heights oriented first have project, thing and to much and about well. very recognize, South around at comes they talked the pretty grocers done as lease still the when Quarter we grocers the Northeast to

about In at are Quarter anchor terms again the element Crossing the of South just merchandising, done.

we far Northeast along. quite actually of are have Our a Heights, while pretty made progress bit

and a starting pieces that certainly allows premature that, manner elaborate disclosed but are more for publicly. but talk me too the much coalesce haven't to to really further it to it’s We anchor us too on publicly in much crystallize, about again

this starting it. world, people that on as are sensibilities the of enter some and distancing to work into we we going social bring are the to post-COVID of terms In

me, One we, of the that the you grapple have spent that task time excuse force. as know we things internally – interesting Task forces on. we with I

in people it’s really middle I’ll because have soon mindset, for flexible too know our This Robin. bit Robin going pretty be we’re is we this, to be the you a looking to some of – to once if and right are what that know to of don't clear exactly in expand little in we so like you’d we say. it a on let respects are

Robin Zeigler

bit Bruce something kind as you we patterns merchandising the is off That very customer out was closely. a backing sharing, of really coming that on that. COVID. piggy learn think side, we what know very, I Sorry Sure, early a how shift little just from about of retail it's monitoring are of standpoint too

As you we from and pieces are a some of Bruce it. of change, I grocer merchandising looking perspective, are it at it intended think know will projects be know the aspect so the of other to that two you said, of anchored don't but

knobs I of change mixed So projects and the large amenity know how the part other such there touchless How part how shift new keenly we of – at we the do dynamic? this. traffic and out we some planning, it patterns as look common in, getting are we pieces in, the you very incorporated we the these that’s patterns spaces are features touchless know come that of certainly of there merchandising that site facets the planning, think the find the of are and we dynamic we're distancing faucets at that's social area some looking how at about are use aspects on looking the getting so of focused think worked as the of hand obviously distancing into and residential new customer as so those piece it, is social of are something and as you do ourselves residential that,

Collin Mings

collection just color rent just where any on some there just going XXXX, or of you you referenced I stuff color for you but other stand with Robin, you for and into maybe tenants. deferral potential negotiations just extend additional color any a elaborate can May, second, Obviously data maybe quantify you Okay, them, helpful provided payback with that know forward. kind possible and could abatement April provide? if but periods the that’s can that the sticking there. just

Bruce Schanzer

Sure.

tenants. months over in between deferrals related generally So months and we're strictly what and national when a months of six talking regional we with split generally here XXXX abatement tenant, we've or in either are that XXXX XX tenant gets generally or to been tenants, paid speaking, talking or to it’s giving we negotiating that's are two whether local

executed about tenants XX process. executed deals with are and have are them thus thus XX have are out of have of where been – There the and far. that that about under or are in small so that have have far we been with We them them that's approved, largely shop, been thus of those the far XX review, been but XX

Collin Mings

Okay, press in and I there compliance company the Phil, details I referenced then the appreciate covenants. with you just was March financial all in think the release,

stands context just moving just the in So context recollection and maybe of company's in can the there on you of forward, where rent update that us just outlook leverage.

Philip Mays

day circle me the do it capital rate close May, to-date. question quarter, you the here there. renovation before I about was just the about was was I giving redevelopment asked first as back run million, I be so to as so When $XX get you $X.X I for or just that, the let to the to talking you want we a of did clear, million so can in decent Colin, Yes,

think You quarter. in we cash I know collection first at release, our you XX% see were in the press

May that at know you XX% in and to grow. we expect already We’re

or the so I'm closures You month know you you hard event, as not you it's going little weather speculate know a last I a don't now – know, to abated and know you long quarter this event right is know a to six know. how

the they hybrid the work on You in work type today most the between. covenant and have a our kind of bank of absorb of don't we see GAAP; know for on do cash cash, that’s collections we to ratios really [ph] cushion

credit not for XX% know little we're closer bank you something you we're collections getting full the but running higher close to if – the it. that, to cash know GAAP, than a So covenants,

said. what the absorb we currently For have adequate financial to most cushion we of ratios,

You Op up now credit. maintain of our have to we know line unencumbered as NOI, support the to

its that know really know quarterly calculated – can you that can bank. tough, had You the one be with so annualized, but one conversations we've

the all in You and know Bruce easy are need this early mandated they it. with labeled be are it we as general compared whatever Event’ They hotels. there of what ‘The but aware Swan the do will the Black decide the kind they know to context, fully for to conversations of quarter closures,

ratios, that’s certain quarter with we with cash in as requirement what's leverage, as have on quarter adequate charge, we’ll know maintain that kind they're they quarter we’re you going us it’s know NOI a covenant them. fixed the of amount this but end as but the on annualized maintaining all the fact number They're a not to to cover work coverage, to if of aware understand a now, you or of far you flow really on know this that, the and and be covenant, unencumbered covenant. the The going cushion of higher

Collin Mings

I’ll turn there. appreciate all I over. the it Okay, detail

Operator

Please Our comes [Operator line van Dijkum of with your the question with Instructions] Compass proceed Floris Point. next from question.

Floris van Dijkum

or collection Good CapEx and Hey great! there in include sense, guys. I that afternoon does your you include to a get rent what cash level other costs? also breakeven leasing is wanted – can

Philip Mays

round where of dividend, free of Floris, cash it’s let’s to to they it $XX this forward. Hey maintenance is million Phil. It's try year, a I’ll it our they but XX% walk keep I’ll common preferred, NOI. try through little easy and straight – running, capital, that. about and than round this. and keep after all flow XX% I’ll at generate a of after use were numbers NOI, after In our more about normalized

some put know the and release the $XX call that or actions the common our of reducing on as maintenance additional you such things, million you we’ve to an additional effect taken mitigate the us With NOI. of COVID reducing know other of to an gets discuss capital press in dividend, also XX% to almost and

the at of current reducing get capital, XX% a in those all the rate, the after XX% common run about maintenance NOI We When combine development could is and absorb so reduction, that dividend $X.XX. NOI, and would that you the about absorb and a breakeven, be any is leasing to XX% you capital. we before reduction capital could together, but again fair, that

Floris van Dijkum

Right.

is the ratio it So breakeven, it's in high XX’s? So if collection the XX% you your you would to dividend, including get don’t of dividend $X.XXX? include

Philip Mays

here, reduction dividend. or so to we a quarter giving in including absorb say I'm a I'm I’d just lasted the months, clear this you dividend, be not XX% know lasts but the dividend, clear, a about I'm annual be after speculate NOI. we just you numbers six on whether And After say, let's pay the to can going right, it quarter.

per reduction we be X.X% we’d XX% – the would the would we year have we're be year. a for obviously reduction for saying quarter and can that So at XX% [inaudible] breakeven

Floris van Dijkum

Okay, can I ask that? you give you a a Can question about the $X.X million impairment? more on little color

Philip Mays

to relates that so Yes, Metro Square.

which impairment term same in booked fee, about we as million also the the almost the is amount. a see quarter, You’ll lease $X.X

a was a continuing Square Metro that largely anchor shops. and Shoppers Warehouse to Food just small few dark was pay So just

that primarily an So know with and driven know you capital and you up, early of that really the zero which we would the that term now was we the terminated by [Technical all. property be zero, Difficulty] income lease has at value wherever valued to when income, less from that anchor, and

fee GAAP. the impairment math of works and way it the took. is equal kind just the that the on So to we the for works term It’s way

Floris van Dijkum

Maybe higher well, your up to is alluded the going write-offs went of forward Bruce you leverage. but some thanks. this receivables that net bad Okay, past some to this one going fact as have pandemic probably more Leverage some and starts leverage, bite. as for you're the debt question, maybe quarter, more to addressing

development do, even strategic you average that's can Obviously you've before is well. sensible preferreds and above steps account which leverage curtailed as we a your thinking your what what to you to the reduce or but about are thing do plan, for other additional moves

that can would thinking, great. you be some through walk If us your of

Bruce Schanzer

priorities right I leverage Floris, I achieve the tell right focus that now. now, it’s other above Well very our of order certainly leverage first as to something that tell you you can average with is we're we while to love always, we not but have reducing a would mindful that have

So tremendous so business, considering with observation the disruption rent your we our the takes minimizing biggest in, in that making capital is focus of maximizing retention you know focus and cash tenant and outflows, company amount that coming overall a sure of our being maximize spot on.

average certainly of. it Our and leverage is we're that is something mindful above

potentially would markets we are again I and to out But where pandemic capital out our now, we right pursue. will is three pandemic, reopen, be come now laying now. right of outlined. again, really nothing that ideas stay-at-home focuses right period could certainly But in part some as premature are loads I resolved, for right our experience we're the kit it we think have things the leverage. there and this that the of tool doing But things of now them largely lower biggest our the be Obviously, there the that me start to

point bit we're little is markets out a to as a challenge minimize One, three a that coming priorities that This to normal. have retention; maximize others. really three those to than making sure that sheet focused making the a about is as the we We're really going sure that right defer now. thinking in; the back that to with balance we a we cash going and tenant improve on have starting when organization the the those sure biggest reopened how better maximize to two, a despite world we're door luxury our and so something focuses country, are us cash we dealing capital company and return doing making and and an is crisis again three, as of

Floris van Dijkum

Maybe me. last Bruce. for one Thanks, one

stock about stock $X to a I XX what or a stock for should know something reverse back above is You X and get split like you or decline your might price do the X up price something. mentioned and timing something the thinking of for say that? Are XX you you

Bruce Schanzer

price by period a the Stock to this is relating the that maintained XX-day one their exclusively received for Exchange a it from $X. over being security of Floris, requirements triggered York notice New So we for listed share a

I during value speaking, has Warren prepared broadly as idea we're think often I and so splits we my of of Buffett don't Warren reminded, stock remarks split. mindful certainly and know stock I'm Buffett the a that create said that about quoted

until again, the of have So the year. we end

of the had two a function in laying filing the stocks we Exchange X-K the in I downdraft our think a largely is other that exclusively Stock in the out put New how stock York ago, like recognizes pandemic. that almost week out or

up the be, of to of we'll the but what requirements extended idea New it they’ve price of we this reverse to year be be period I Exchange. the couldn't start So, our our continue coming price out us until price to share and allow level intended to monitor by York the share the it and satisfy would to would a split would stock to the to which that start exploring end period, that a and recovered, extent say share our get the Stock the of going ratio after needs we're resolved hasn't

Floris van Dijkum

Bruce. Thanks, Great!

Bruce Schanzer

no Sure, problem.

Operator

any the questions in back Since to there are I further the closing no over Mr. to remarks. like left turn queue, would for Bruce floor Schanzer

Bruce Schanzer

Thank this time. again your call. I can-do humbled this supporting am do this you opportunity you local once comments time. during resilience my and pantries. have of thanking regarding for at evening's something for help our good to their urge Cedar unprecedented their the into team all by I to also attitudes I neighbors an heed efforts. and would food dialing each during members would conclude We

a tomorrow. I evening that, you With good and wish healthy a

Operator

teleconference. today's concludes This

you disconnect your this day! for Thank your wonderful may have time. You and at a lines participation