Cedar Realty Trust (CDR) 10 Aug 202020 Q2 Earnings call transcript

Welcome to the Second 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 call over to Nicholas Partenza. proceed. Please

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

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

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

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

for evening XXXX earnings Cedar joining conference thank Good and Realty you call. for us Trust QX,

of time my defining. truly my a for a period remarks This as thank team It all to to both remember colleagues take that our directors. come. is sincerely I one prepared to on board moving and a will Before would like long has generation moment to nation we Cedar been on

prouder witnessing the Cedar's last the professionalism that in and our accounting committee incredibly be a each great along our them period was word of and in we choose the well. have share trying of management and have immediately strong setting June the in last and our for and more the XX% quarter. throughout COVID our waived of a stock challenging deed second been consistently of learned over the all most independent excited their this with and organization future utter and cash kitchen of between assets which this everything committee it this that has reflecting thanking month is very in the confess Tale shows performance the collections colleagues mine our cross-functional Charles from of and colleagues dichotomy Cedar our we my darkness. terms has as waive fees performed and doesn't only durability a XX-person assets of people quarter be performing leadership to proud July. of intensity fees over critical months I pandemic way of am couldn't collections common When four the I was times, cash stock with often it treatment efforts began about our for while in teammates similarly of season out results unpredictability It tone the the assets capital the defensiveness teammates colleagues our a and time. fact. quarter. resilient particular and I of among we thought have have and and our over directors at defining what formed the continued collection placed members daily of their markets reflect in the suggests on quarter a July. the to the Notably, in of of from be success. underlying begins for incredible the can squeezed during this to I expand remarks. both will worst observed is our forbearance basis among experiencing this whether company board as experience through and Remarkably, our outset should dislocation have their prepared being top our good shopping that am junior have from accomplishments the cabinet too I I relieved price portfolio time. it remarkable decided optimistic. efforts, price and The On has our its indeed. the my in best value. the crisis never during people it so common themselves pandemic REITs sure it seen the during through have with or will through and as season us bright was asset best tested I collections friend seen week the Dickens my over was that pushed performance hard center and guidance, I our teases third the and astounded years of excited trade know second I my the during me are of support of light often and Two their A in line of XX% for clawing the price. famously battle second that considerable process speak very weak I for back strong best their on Cities, this characterized times. Phil truly Robin the their CEOs of that I be best the For for

The Cities results and professionals been by dedication a Cedar to both Two of of achieved critical professionalism, tale one While unified of may chapter this it a the effort to-date. company. at has throughout Tale was demonstrated obtaining and ranks we aspect really the quarter our COVID Cedar

and asset creation a phase on suit lease our the class. with redevelopment, on during tenant two credit Coupled XX-year event relative an Cedar's XXX,XXX square before spend Cedar will second, AAA pandemic another finalizing In redevelopment huge we the the things to district our is capital borrowing we constructed today however, lease have to that project. addition redevelopment prospective is significant asset extraordinary and pandemic. rent by to for to including definitions their expand the group A helps the on and the led some of this Robin her strong during foot strong more this detail. street the covenant perfect that to credit Columbia last week have found side also to I a win build our this a asset bank in constructed first we facility is announcing heights lease team the announced room the performance value first giving of and a anchor diversify agreement retail tweak be retail the ask will building our will thereby with on the collections base. us milestone into be is for in breathing This of example for remarkably in not redevelopment northeast while office therefore stream level a even slowed note greater our and the represents I building

will of the their we more credit us. partners we sheet, be at for especially we step support And closed. years what for spend we taking February by Keybanc Bill essentially with back now renovated a we terrific the rest the upcoming sort our time and nine to looking situation. group a our experience was once-in-a-career begun to the no it loan appreciate and on all balance over for and years past just during term Over have this on of bank the of modification facility have type weary have little precisely focus maturity professionalism with in led found this that done

one First we to year. care debt not have maturing too maturities we in stagger our so have much taken that do any

also in debt order Second, as the to now. largely give us portfolio one that is to addition explore are financing the note we we more to of unencumbered have scenario alternatives in stress a be able generally such One our a to in number in flexibility thing sales to in as us reduce alternatives the term bear loan we on will weeks bit we roughly and actively of generating cost ahead. relatively a low sites number the pad that $XX million efforts refinancing debt a down capital help asset those marketing are of anticipate from

in lead our one Recessions for such teams During challenged to this been offer imagined as never and professionally ways we decisions come in could presently to an we that of management myself destruction. we traps personally stress make to remarkable continually have rash that this value the reminded have end. business will as both dangerous have time I irreversible are period to

terms both relates Cedar to appears coming live optimistic. before experience they positive it. out as shop have in and this fortune this and by companies shop Cedar also they it of especially into for However, believe and how shift as just reinvention companies well of a lead isn't live as CEO to that a such being lagged recession where present catalyzed meaningful that I a recession might had reversal societal a since opportunities of people

rather performance not a and our strong of is well are a experiencing. an protocol management trends combination it relatively we highly and outgrowth Our of all these the over an market organized as accelerating is crisis months accident as effective or past fluke; four observing

at-risk seamlessly a we our while grosser anchored anchored any capturing evolved among customer us their on stream portfolio thereby a might in with e-savvy In foundation in opposed you most of and secular better insulating the any that ahead. of exposures retail our share centers their any positioning have centers. as have our This grocers relatively insulate decline changed a has thereby at portfolio a that market businesses grocer serve as future. of us retail and overnight online the example, among margin of REIT of grocery This tenants during themselves customers our pandemic our among this the more function for is needs For for e-commerce maintaining and the the relative appreciate all anchors to of words, to in REIT. the critical know you center percentage helped as What shopping years uninterrupted centers helped meet is shopping other has base grocery REIT. continued have will lowest feature basis of pivot highest Cedar foundation we the a the predominantly Moreover, not organically anchors healthy against to while outsourcing retail retail.

recovering performing. to continuing world are In is prospects remarkably among their the invest other trends over conclude MSAs that changing secular take the years. of economies exposures shareholders surrounding hold when continue we the my ourselves some with employment and Lastly, have our from and comments to in benefit with trends lowest find told the to said shareholders in will me we chances the that All often When colleagues. since as rapidly pandemic Cedar you have discussing with will the our eyes you better right past as in increasing the tenants I our negative truly position into are partnering Cedar words, my recedes solid thereby industry. before a prospective something and I

in represents Speaking significant a as I alongside very a my I and of shareholders portion a shareholder our stock funds for collapse and Cedar I stock invested and myself The any you. have our have for stock. years stock rarely invested right into our over the selling of loss net continually worth

tirelessly navigate that it of working our greater lives certainly a share I is are as can focus This many you is we recovery storm in our with have my than personal. take responsibility worked intensity harder seriously perfect As colleagues challenge and is assure significantly drive to in a professional probably I us the this both and through and and professional that ever price. company a thereby incredibly and

will highly we Robin? as I you successful. will I that keep With be I operations redevelopment Robin already to am and have However, described our optimistic projects. discuss that

Bruce. Good evening. Thanks

power less right. no economic travel This major The other course the XXXX black the shutdown, that events may day studying my lives the she global college the will of the daughter seen protests outages said there year predicts pandemic the resulting actually resulting we be social and in with matter northeast. have a than in future and week bans last and she to me a COVID-XX unrest, be and that hurricane

centers and had Our the of these at so has during selflessness impact all on with the to shareholders of each mix essential our operations to professionalism ultimate challenges centers deal benefits communities Cedar and team shopping done and the focus anchors well keen to pandemic. the open of with its Due we our remained shopping with as has COVID our as retail grocer serve. and merchandising a portfolio's

they were centers strategies worked closed retail remained and providing small criteria reopening marketing in reopening shop on the then operating shopping which assistance, open. use each guidebooks shutdown, closely the by located our some which We media jurisdiction's temporarily during followed tenants While and and tenants with assistance. included were social

we During program process operations. selected and minimal centers the retailers shutdown expenses simultaneously restaurants pickup at transactions reopening capital sales distant XX to improvements been tenants. the sustain air favorably by a our both strategically for curbside needed launched level reduced and and common to received to socially for have that allow We

indoor seating property in limited team ensure to initiated management and also rules we PPE program a restaurants. restaurants create due tenants. key outdoor whereby profitability The with first responders food capacity to with Additionally, restaurant we worked for provided to conjunction our to

times made these becomes our is partner with is stores. especially we certain when particularly to deciding landlord a tenant know relevant or is During management This and type for is these them to through renewal tenants more when have open supportive it their there difficult of that times. time

management pandemic our essential been rent to tenants. crisis extending has Another to prone deferral

laid January their three general our last review over shop was financial months and for generally with deferral deferral terms of our call we payback out beginning local of quarter's that believe situation for months were for as I rent to upon As offered retailers during mom-and-pop deferred two XX XXXX. qualified follows; small

applicable. over we of six with to lease amended objectives the there certain modified commencing securing deferral portfolio in lease would times we when lease anchors the three the and negotiated were of every like We solution months deferral two deferral and to accommodate to XXXX. July, payback to were shops customized the small provisions we terms At standard for months a tenant exchange in studied determine national terms these For if provisions amendments. of offered more

or consideration rent terms. waived for an in of instead unfavorable option For an in deferred of additional was for example, or lease from exercise in relief provision instances for limited exchange an obtaining

XX% received As paid square of second rent feet. deferral rent rent have June the of $X tenant for deferral tenants waivers, in quarter XX base Of XX XX% square million in XX, Notably assistant of XXX,XXX quarter XXXX we second totaling executed the in who XX rent agreements, those rent. totaling was quarter were the agreements during that tenants waived deals July rent $XXX,XXX for executed XXX,XXX July. received the their whose Similarly the paid feet. second who waived tenants of

rent and redevelopment negotiations for Quartermaster industries portfolio, are this movie are Additionally, the the $X.X or still project of at in fitness fitness still are given negotiation in rent throughout XX the and already to LA us related The are our the uncertainty at there Theater XX to Fitness These provide deals Planet July and Revelry. top deferral locations has surrounding either totaling that deals Regal flexibility this tied are post-COVID. category paid. category negotiation been deferral million three within in deals [person] that in the of

extolling collections positive well. process the Well during XX% rate have that particularly continued resulting and July. collection our with fact be strong. portfolio makeup put for had quarter positive being collections that retail in said May Bruce XX% be one-on-one but and June team this XX% effectiveness to a quarter. a of key effect. that hands-on undoubtedly that may were April, has mentioned a largely charges biased in bit. and the am with tenant with Our our we I trend in continued let's This employed Cash certainly our and certain and respectively of a collection the XX.X% essential merchandising deal XX%, the the monthly every we that is as we collections, approach each That that parse in very place through to I a have

with anchors is XX%. of with with annualized XX%. collection or $X.X casual XX%. discount is of of total rate $X.X I comes collection trend just from Our comes fast a XX.X% are restaurants $X rate rate These XX.X%. is million five grocer make of from dollar $X.X a from that million of facilities $XXX million. base of stores million rent with stores million department a collection comprise and think rate but apparent. top of collection the rate our XX% a a collection rent up Medical $XX million the with

but leases government such second All rent new Other X.X%. XX%. per rent square square XXX, totaling liquor feet comparable economically centers this of collection average taking of our rates are cash performance exercised in permeate was At mandatory foot at well articulated to two three drug X.X% than of maximum to spread outflow be demonstrate over that do I team, to any spread more XXX and to improvement, $X.XX portfolio ever Petsmart XX not leases of renewal and The Acme a remain these the deals termination X these occupancy Yorktown. plaza negative stores, this square overarching on that we primarily pandemic and feet, and with closures. into XX%. to note deals long-term as negative at uses renewals missions at tenants Lion and home of the provided leasing make do leases with deals we The maintaining sense prove vacancy simple credit quarter academy our account XX negative spread inflow Related signed all redevelopment automotive Food a Of results resistance. fill properties two outset relatively our our the leasing small focused as COVID totaling cash rights stores the New were Mall XXXX essential lose office as an leasing during which banking, XXX,XXX as at base options attributable quarter and positive of risk. is the overall average minimize of directives result of renewed spread $XX.XX London were as an shop and a idea applicable. pandemic at early had with This an we referenced just

basis related as lease Moore as June prior a New is well is XX% our A.C. and at bankruptcy of plaza. is point which fitness of of Point current decrease from closure Carmen's XXXX principally The XXX reduction quarter. XX, to at the the This As London occupancy XX-hour

will actively locations. spend work. will of hard Fishtown crossing has Nifty nicely. facade grocery team IGA we leasing all executed and renovation for lease our budget the that and discussed being XXXX this progressing to reduced delivered a The are XX construction three Last with urban we remains original as approximately the unchanged seeking Starbucks mixed-use fall. factory for store remain and renovations now That We and tenancy. scheduled the of have the in our quarter Gamestop commence joining are This at to be August. level backfills said Hotdog quarter. development $XX been million. has capital A second deliver in value-add been redevelopments is developments who

and more is foot comprised of department skilled the retail Columbia, general areas This the a their $XX.X per this Heights. owned of building building professional strong remainder of and will rent The Some owner foot Northeast and square XX-year Post square XXX of employees which Heights district district $XX.XX end of traffic Northeast in government a gross is a to over of heard the office than expertise from and $XX.XX This agency a four office is be of deal may construction, sustainability square daytime for benefited first of a Heights as management properties. of first services provide employees of Atlanta House foot quarter will the portfolio with structure part accretive as will of management, security execution of Fishtown the TI at a crossing you of based of cast on per boost Northeast demographic street casual related rent XX-month term square restaurant including with and building of significant maintenance, have a its includes Philadelphia XXX,XXX of the amortization phase north driver a locations. per be in and one foot. the fast the net services.

of ward on relationships this significantly based the Our competitive be winning well deal process the community this ability commitment this of recipient we the throughout residents exemplifies to with awarded and largely relationships as and Heights support which Northeast the sincerely project. RFP being to district truly will the them of was thank building downtown project of as beneficiaries X the ward be district's filled overall leadership their who for X the to of as revitalization

busy. is team Our

solving are team always is difficult as through and serve. will focused. Our for ultimately to taking the ways arrive the value while the Phil. and times we situation, are they seeking we our problems These all each create communities shareholders up you challenge to it, I and give navigating that With

Robin. Thanks

I for our to results provide balance recognition revenue sheet to our and operating discussing details Before quarter. insights and want the first related

I walk the to the each this along treatment. their components way to various with best is of accounting related think revenue through do

and tenant For such this non-cash focus as amortization aside leases set straight rent line billing. and just the discussion intangible on of let's items

quarter billings for and for combined recovery were the Our basement million. total $XX.X tenant

recognizes these billing. we and $XX revenue collected the XX% quarter During million of or

$XX.X deferral that an recognize the we XX% collected to advanced will this Accordingly this either or million negotiation revenue a or combining and determined of our billings XX% for otherwise XX% for be or collectible this another we collectible which be million agreement accrued and believe $X the we we quarter. deferral paid. total with XX% which recognize we signed million $X.X have revenue determined consisting of is million for Additionally, $X.X agreements

basis XX% for have is by placed the should not the that anything waive tenants mean did we not cash accounted determined $X that to Be certain This does from will not for just or because tenants this this and have to million recognize. collect them. this of at we $X.X that paid we consists be $XXX,XXX we we have a Moving agreed on quarter. million time not basis on cash clear

While them may be payments financial simply we make fail statements we estimates revenue when as expect made. inconsistent which will tenants some basis The partial preparation or payments always will recognize requires cash received. many of to of

administration, As all diligently management nature to quarter. not leasing asset for management, year of and collections ultimately the always made determine XXX% and passage pandemic. our the work property our together precision related Estimates lease accounting, very we more precise make team, the have or are their property estimates will only the by a of the estimates to

our However, written on paid quarter that appears attendance for July prudent were at done based with initially least good estimates the and judgment.

results. to Moving operating

$X.X decreased when anchor For NOI $X.X periods million over comparable excluding XXXX the existing both per or quarter. these decrease are cash $X.XX properties. not million this and $X.X was were the the of of This XX.X% was XX.X% decreased million the during and straight-line write-off theater related non-payment prior property Same properties recognized on the of redevelopments accounts that $XXX,XXX primarily rents receivable tenants from as gym including larger in discussed redevelopments of as and share. that by to and an were quarter FFO driven at billing placed of revenue redevelopment reflects basis The operating periods included.

acquire did any sell balance the the during not or sheet. We quarter. to properties Moving

$X.X several million. quarter activities. Square sheet after did Metro However, noteworthy the X, On balance we for we have July sold

Xth place. dark in dark a termination with the dark sell in our maximize the borrowing opposed and admitted a to X, was trailing early selling term received with using interest $X.X availability $XX and liabilities property anchor this revolving quarter of annualized this recall rate base borrowings and of financial this on million we the quarter debt the also and swap previous of million the after hedge includes base these which final under proceeds $X.X XX that category $XX.X cash million provided both anchor of August exclude from note. a information filed termination termination unsecured the cash. earlier current facility manner we payment. quarters of collections supplemental revolving our GLA are simply for negotiated The still categories. property the loans we unrestricted of also agreement our our include to did in repaid our subsequent of the to rent tenant way facility We as by debt. additional it August best an four as the may we each on and determined page existing instead to million property under disclosure credit anchors you ratios credit Further of today. compute and schedule On sequence, facility financial As had definition now One of tenet the the we

be financial that portfolio starting to the hope as remarks During transparent our operations this With helpful. press informative I'll to our to pandemic as call information and prepared about we questions. are release, possible today and supplement and be and you find open contained our in

with this with we'll a line At conducting Your Instructions] Milligan you. proceed of Baird. first R.J. be time Thank the your [Operator question comes session. question. from question-and-answer Please

a you everybody. July different of sort rent Hey the I the through good running pretty that Robin XX that but is there could additional collections be appreciate XX% buckets versus working on way rent paid? bucket deferrals just won't Obviously afternoon in at or strong you expectations

R.J. you Thank Yes.

kind we collections the bifurcated level the and tenants So of level on to retail so we collection are Phil the August, we of that is portfolio. that based it will have of in that have even the and the have well have talk that that you July of think the we types and at we about on coming the in different mix have way far so how types far we as really and that looking can essential into we August focusing

the based and through seen based that's based forecast a bucket. we we've we've now forecasted his rent and think in he paid out on have and on bit I kind typically we tenants not on went he think through historically little of pay how how what how we will that that bracketed comments COVID have tenants

so that, ahead is Okay Phil. fair it go assume to

Hey. Yes.

X with of July. the related a the about said numbers to them in majority lot agreements tenant that deferral of So the paid the Robin we it was of million think did increase I XX%

So to increase expect that's basis we and didn't that cash guys some of a pay periodic make lot or of payments. then plus it's them as partial the

believe and July their they're paid negotiating already them current then of I third also. them the of a agreements are paid of out we ones Some with about

buckets primarily with each deferred completed other from agreement along it's bit little So that the by of driven Robin a about. talked

the uncollected? XX% And remaining that's then so in what's

to some to theater. of tenants going are, whether pay going fitness be, pay the of was then centers, we whether of of it's we're say that we the I talked about categories to and it's questioning was they're that the tenants whether rent that So some won't some or the some waived movie feel the going is that

one talked we We have movie that about. with that theater we're negotiating

that that. bit Some of we treatment categories that AR a handicap we're our that we -- prior just those we're COVID issues of to were being just in those so little a conservative put on

more as perform perform. as positive to challenged we with said went of long the together far those last by the are what's So COVID tenant they their going all are not like through those We of and they're that buffets but are ones we're some in bucket. negotiating to can that Chinese that and just left such are term still in kind as how tenant and how

an handicap putting extra extra on. and being percentage So that we're conservative smaller just

it's Hey R.J. again. Phil

it's rent page the you it's supplement you it's category got look collections. XX% they XX then paying got and make there lowest categories in our all their at by The plus up the see can in the specific-based look primarily the X-X lowest is fitnesses you theater XX% go was Robin the remaining. which categories what's remaining what's and but you driving we If at through and that's there the driving if XX% mentioned have that's the

thoughts helpful. And loan due talk next that's coming Okay Phil about Can there term addressing of beginning is then on a that? you year.

Yes.

refinance a maturing So you're of is $XX correct. at currently options February we million loan to have looking maturity We're next in The three XXXX. it. term unsecured

the market. is First secure debt

from that similar to XX% you're terms grocery loan ours. all terms see XX% value XX-year loan not to You're XX% but co-loans like value seeing of rates codes XX starting loan life anchored so life lower amort to that generally The to are more centers and that Generally to the X.X% for XX% to and CMBS to X% the loan CMBS that's value, in The closing. range. maturing. to different are kind closing

option typically syndicated are bank second the group. year they at the like year one The occasionally loans term one and we're them with looking currently you're syndicated The lot just and doing unsecured plus of five bank a clients aren't their do seeing plus a kind even or they banks close ones longer them flexibility. loans to seven but kind one of bridge financing one of plus is give

us do now is existing us looking all behind frictional something that thing term on robust one three-year cost helpful sales amount with approaching else that's it a will we're with thirdly our unsecured bank probably reporting. our the ramping more with and the Robin to of these small little that's So deferral but at. on up see a engage lot And rent touched three that and of higher you and discussions in XX% loan think approximately bank waive we that we did have it in other of I might really whole group would agreements be the that these consider. and we approach quarter collections gave has something a that's getting kind and It options

a to and XXXX debt extension to have market at XXXX election the line that. other in tenants So our one-year our we of maturity September do secure matures since debt a reporting the that's only in more maturity helpful option of for on of credit is we're if and we lot topic sell go have

that's So of how kind Is it we're thinking helpful? currently. about that

That's Yes. That's I guys. have. great all

Thank you.

Thanks R.J.

Instructions] next with Todd line of question. comes KeyBanc. [Operator proceed your with from Your question Please Thomas

thanks. Hi, Good afternoon.

monetize I said capital are your would maybe that like question guess front options opportunity a there? to table development and ask of to there Just raise How first Heights, the up deleveraging. about Northeast Square. lease take I lease potential lot and for wanted the off be risk it [indiscernible] you an seems weighing

asking Hi it's Bruce. question. for Thanks that Todd

excited and started year construction. to very the where lease slew what at just something lot of a so continue certainly Of a to We're realized as by whole high we it's the lot would that isn't of that. to do to the different you with very de-risk this fairly significant better a it started plans X. our you a about do it was we we're both we're are the we and been on ward exploit and before It potentially the and that shareholders surprise downtown value that how going folks we yet certainty but the for options and note to value disclose go will be correctly it to of lease we've, hoping that first working exploring something about of the our as right path project we certainly there and correct also one we've a within execution phase are we not as lease represents us considerations of this it part the into of going and think and come so crystallize excited started point lease add but degree course monetize of as going a to by by today to to caught together are can even community help very its publicly we're certainly how that are we're

we've that. that certainly exploring something So been actively

finalized. We to been it's that will explore now continue now

you the meaningfully this that can are project more of the can you are components that build does that there? and the complement lease underway today? How there comment more, on deal components out other Are other

the driver deals use] going I'm going driver retail. is redevelopment ambitious traffic as very have significant handle her let it of spend as that company residential This going office, certainly I'm also as a things. even we're the that significantly well be distinct underway to going some to it's phase. in it It's it's the [mixed bringing does the we for has and introduce of the neighborhood engine nice economic perspective office who workforce driver economic in a housing. traffic generator allow as I Robin much a solid, food way an let very for an a a be the it's little again exciting so retail fresh project Heights mentioned these it to on arguably phases and and very development that amenities. the certainly people more from employment day-to-day the to The projects but we that is comments hopefully housing and be Robin will have significant time in to to to part area to on retail Robin going to a although give more and bit most amenity a and daytime much going important really all And to groceries small neighborhood access am area be the Northeast and will going the a first people The have project. stand the it's an and a good, affordable since

engine I at is the I areas look yes type it Washington will mean I just X historical to shown and when D.C. District you Bruce really have shows to of have trends that hit other areas just agencies think provided. historically one agencies that you in there. just district the I the economic ward look other similar of things points add at mean that moving key when to can on

for the near for or to lack can to to them want other sister do to project the better of for term the DGS. look to catalyst to want same for Heights. So ancillary DGS move Northeast be I'll uses It a near agencies do other also headquarter we call move be the and move

said first that it's I it a catalyst for other is the the So phase. as leasing activity and way kickoff for

to kickoff but future weigh to of a to about merry part it under and of project affected buildings residential to are another does bunch along of be about think other could want street what building just, us outgrowth project the of can part think those and DGS building allow allow does for the whether we that of of kind the come off could notion as [indiscernible] capital things the kick considerations different or other considerations that different that or of DGS coming the it be project. that and the that coming So with options a that for kind we of as

today? Okay you on is can being ground and much and availability floor in of available financing at comment how then terms this the construction building retail contemplated and Phil maybe that's

the answer of Phil the our floor is at some feet. the question then but to DGS the decision may answer relocate the I'll we feet. ability second. We base have as XX,XXX may, bring plan merchandising to tenants of building retail first or ultimately do square and total So can is the ground square building retail more existing the to That's new our to our XX,XXX building. part of opt The that

there. would like happening don't are all I construction far there, the you're substantially familiar as might up obviously know there available Also be you but very Todd a or a to like taking fully credit credit, loan high much because available to loan this would the there of is for there good financing options amortizing. loan those loans year the amortizing few credit over And cost XX% could even very XX this. And loan when options the as a it's credit the like of the are it go entire That be high have of pretty cost term it'd tenants building pretty if much or value loan It market generally it's be fully life or lease. Conventional is it. such so. is be XX% a

partner. that have we table would JV to other here partner other construction JV consider our on bring options partner The to be financing us available as and thing if them that the might a with is to

a credits lease. in and all it's long options So here strong multiple there by very driven is very-very just

And for the Okay. to the down nail timing would look be financing what project? would you that

that Yes. do probably before I this we end year. of mean the would

so of that's recoveries. real quarter question right. tenants? that clarify represented of the Okay. think And just million I All those $X.X to quick. in annual the was the Phil was for and bankruptcies I the that rent revenue press from I wanted just it last noted correct? Is think release XXX,XXX

run rate that really rent no There be is that would current for quarter. would the See those paid annual be, the tenants. in

the if run quarter rate. at out current flushed run you're but already that trying kind it's numbers to the So pre-COVID if is off annual looking you're of

you. All Okay. Great. right. Thank Got it.

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

this in us team behalf On the wish you healthy the and we for to peaceful earnings for evening. our participating Thank entire you Cedar conference joining a at of conclusion thank and all here summer. call you

conference. concludes This today's

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