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CBL& Associates Properties (CBL)

Participants
Katie Reinsmidt CIO
Stephen Lebovitz CEO
Farzana Mitchell EVP & CFO
Todd Thomas KeyBanc Capital Markets
Christine McElroy Citi
Richard Hill Morgan Stanley
Caitlin Burrows Goldman Sachs
Craig Schmidt Bank of America
James Sullivan BTIG
Jeff Donnelly Wells Fargo
Michael Mueller JP Morgan
Spenser Allaway Green Street Advisors
Tayo Okusanya Jefferies
Jim Sullivan BTIG
Call transcript
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Operator

Good morning, everyone, and welcome to the CBL Properties Third Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentations, there will be an opportunity to ask questions. [Operator Instructions] Please also note today’s event is being recorded. At this time, I would like to turn the conference call over to Ms. CIO. Reinsmidt, Katie ahead. go Mam, please

Katie Reinsmidt

Thank you good morning. and

time securities GAAP me Executive Vice are measure available This forward-looking being on risks the hour. comparable non-GAAP within to ask Form differ the and discussion reconciliation Lebovitz, limit the their various the subject the are one in uncertainties. to conference Stephen Khaleel, furnished In everyone supplemental Farzana statements federal of meaning call we the filings is and and that is CEO; the and Such may then of provider SEC financial and President to measures financial queue contains to statements inherently Joining cblproperties.com. call two in to order today yesterday's we laws. each and for and This of ask earnings at you release A to direct financial turn to questions speaker for X-K questions, and ask be investor results, events We supplemental included to detailed these will with questions. of risks. limited that Future otherwise, section a additional actual to materially. was the Company's website CFO.

call you the to over call, were to me If have will not out turn that Stephen. today's please following I reach questions answered during now the conclusion.

Stephen Lebovitz

CBL, year as you, we everyone. a Katie, milestone is our for company. as Thank XXth and morning and public good celebrate a anniversary XXth XXXX

of representing X.X is filed XX and unprecedented. and portfolio seen this over point of XX evolved our changed, feet our two no have to million our close their compares what has industry our in But Sears Chapter we than stores Bon-Ton major anchors, history, more square and Company’s During to year. but

While many is preparing for our challenging. models. development in these reality of the and fillings of the the nevertheless for was we began years advance, them Sears catalysts anticipated

our in premier enjoy they result, centers. locations a As

While as desires. some relied that confident traffic, on include department once I transform type entertainment, and our these opportunity the % dining, the stores this such centers prime been of and also because initially XXX quite a that of the term, fashion, town closed customer as they times has question, stores disruptive short generate been to today’s generation value, office, occupy, estate closing that the has real am of a is No other from in boxes Sears this mall to in presents the hotels, specialty the properties but suburban it property fitness, or to residential uses malls such mix service traditional that case.

point of liquidity are runway the the on and opportunity, maturity both necessary profile extending from of us redevelopments a Given view. focused we timing providing to magnitude with these debt accomplish our this

making we definitive forward Farzana have soon credit positive a negative As of group on progress lines look to I excellent updating and as our our We can the that are reaffirm and discuss shortly, full with satisfied as bank XXXX perspective their deliver will you to support. quarter. we in With to heading recap we direction. and loans year appreciate market news with we results never of are the to term are this report, pleased but in-line assure we guidance this are while numbers, our

NOI quarter the $X.XX from an and FFO same-store X.X%, year adjusted share third declined As per to trend. date improvement reported yesterday, was

a Sales our have this under been While we bright headway most metrics positive reporting pressure, making still towards are key retailers year improvements. with operating spot results. are

foot from translate for $XXX trend year to improved XXXX. into environment $XXX square portfolio mall For same-center months per should leasing per an period. XX in our foot trailing prior increased the sales square This

basis points XX portfolio on progress making are We to with improvement XX%. of occupancy, sequential a

less experienced store compared filings specialty XXXX in have XXXX. We with as

the However, reserve increased our quarter. Bevolo, and draw Brookstone, to the [indiscernible] of Mattress in Samuels this contributed Firm, recent filings

will are economy We sales be relatively improved XXXX specialty environment. store that given and bankruptcies optimistic a retail for also benign the strong year

have in our closing XX As we this former department I store over mentioned, boxes year. portfolio

our anticipating been have help quarter's exposure for of market each provide sale have Katie in realistic to Sears with store summary construction spending. and order as these review activity, for listing years boxes. address will and We a included these to currently our few also plan store events a in Sears with reasonable XXXX have capital our status Bon-Ton well starting a minutes, understand Bon-Ton better this In with as the leaseback under we closings want projects supplemental. new plans Sears and I first schedule in a to but these our

At and we Janesville interest. regarding Sears. property of the the excluding was second in July a XX had First we sold locations end quarter, that only have XX% Sears a where

Of by locations. third operating XX closings, end, Seritage, left stores be by occur owned or X leased, year owned Assuming Sears with all by closings XX the we'll announced the X are and parties. store store XX

have brings Seritage stages two already sets they to redevelopments next the to are on various repurchased and in locations, redeveloped, Of One Sears stages us commence active with has substantially plans seven. stores that others. stores months been of XX down three our within have the understand planning last year six and leased we and

on to LOIs leases out and active for discussions get have are signature on two execute the these to remainder. We of

operating on a future still of of in number active are also are We stores that closures. in anticipation negotiations

that redevelopment Novant in Sears is store occurred. there’re expect will instances already purchased the future for of directly office. of in medical We an interim operating location it’s that recently in a Winston-Salem stores a third-party Mall Hanes Sears fact Health owned Sears our by couple basis. currently on some be sold in for

our is the of next sale ramp the months part that Sears where rack annual leaseback majority we million. in the leases transactions redevelopment XXXX for had $X proactively in to Our was announces to stores few this begin today for The recaptured terminate project. of we gross closing approximately as stores had expected

on or have As year rent XXXX store cotenancy. The not to we expect will as loss major do the this in associated when impact in announced Based the as the we to closures XXXX range material us be impact million. closures Sears cotenancy today, such, from any will of revenue any on in $X exposures to XXXX a closings well cotenancy. $XX full of related million

smart the be million will $X Sears we million cotenancy additional for the successful estimate hopeful are assume reorganizing, plan year, liquidation we it early to we $X worst Sears believe case. in the range. is If While the to a we be sometime that occurs in exposure would in

leases from and are or more costs cotenancy uniform, While two closing triggered of are far most by the anchors.

is have to Sears downtime As locations one anchor we where more where Bon-Ton where operating. closure. our including Sears major of our locations than have approach our portfolio, Across is and XX limit still one we priorities we we redevelopments, have

replacement for of on other We occurring leases under the these three. eight, for LOIs each have activity out negotiation on and with executor signature

end. XX effort. We conditions working with number leased Bon-Ton, of to and closing this LOIs others. our portfolio replacements earned including we are boxes signature before out leased estimated Total also we’ve in remainder. current core under locations, to to executor August, six and locations million. success leased at XX scheduled is open are retailers in had for and the four six for redevelopment year XX by Two all market for having language $XX.X to revise prospects are negotiation Of are Shifting spent currently the cotenancy reflect on

replacements stores. these the close attention CBL several requirement to are portfolio closing in with occurring no our across and that backfilling nine or are capital We anchor investment I others have of that little to highlight paying want process. by we

higher value, spent warranted investment closely we are where more While this create certain we through long-term total watching to have properties process. significant is the

positioning total we was XX% non-apparel new complete to our the of total three our for expanding expect dining, $XX types including in uses. with long-term range annual or years leasing million Through for service tenant next bring success. executed We necessary in $XXX uses diversifying these the value redevelopment on focus four are to projects we to portfolio. spent over and our our of entertainment, million to redevelopments mix, Year-to-date properties and tenants remain all general our the them

contract also executed as Uses storage with bring minimizing well as XX our such us while have office medical multifamily, fitness, are self leases having uses, multifamily, XX capital. required are restaurants to partnerships entertainment four as and hotels, NOIs hotel, two and generally joint active ground allow as to well pad nine properties these our uses storage. which venture We to as negotiations users grocery sales,

like the we release. I the earnings announced Now, in our yesterday to which would in reduction dividend discuss

sheet. liquidity preserve and Our financial primary is strengthen balance priority our to

dividend of on basis. cash taken not generating reduction to with our we from an per transactions EBITDA assumptions lenders, create debt the As roughly per including common reducing an to rate XXXX of debt ultimately is this our and share. of dividends flow long-term equates redevelopment disposition enhanced essential liquidity value. share available for we’re an reduction. XXXX million quarter, we've range, $XXX evaluating level for $XXX announced the estimated as million reduction to additional and to $X.XX income been investing guidance measure adjustment on find for liquidity. maximizes stabilize an The dividend preserve XXXX of create flow will as the $X.XX through free of of annualized an annual after in cash will that Based income analysis the last This that have projected taxable properties dividend. to a well After cash midpoint Reducing the only

While executive general. reduce create implemented program we operations, efficiencies including compensation already we reduce a lean in in spending organization and run a to have overhead,

to to generate of will opportunistically dispose We continue assets also equity.

call Katie is discuss activity. is to best our now I'll in results operating and to investment adjusting the the our decision, it of While we turn believe dividend over interests do the Company a so. difficult to

Katie Reinsmidt

Steven. you, Thank

I the is resilient I us. organization have and our opportunity determined we to definitely want and get are plan into operating that entire operating of our going by have our and and energized a to challenges, performance results current we growth we current in well say pipeline, forward. is facing stabilize redevelopment Before company CBL a front create

our We’re optimistic future. about

point quarter from increase solid basis and mall Portfolio bankruptcies occupancy closures. leasing headway quarter. and decline XX%, occupancy compared quarter XX.X%, team points is representing by year XX year. loss from third prior is XX toward approximately feet. keeping making third XX,XXX basis the store points an representing mall closures sequentially Our impacted decline for and store related square basis basis prior last increase Bankruptcy XXX the the or was points of occupancy XX sequentially to XXX Same-center occupancy

While our leasing spreads pressure. leasing activity under remain strong, continues to be

declined a On comparable X.X% than XX%. we leases activity feet quarter basis lower stabilized new average XXX,XXX the where quarter, Spreads and to XXX,XXX quarter, directly new executed rent X renewal leases the the signed leases time decline of signed for the square to renewal rents were leases over third lower where above square malls same-space We leasing sign the expiring higher foot growth we this During to rent. XX.X% rent space at shop agreed an year-to-date on had square of bringing three vacant. were new nearly an market due to feet. of we were and leases mall been million average of

new deals, have spreads. the for packages retailers had and Excluding certain with declines would that deals positive prolonged quarter on spreads been sales year-to-date, these on three flat average renewal weighed have

in months for trend was Hurricane $XXX sales six compared closed Florence September closures related positive to the year. foot prior the days. by impacted continue XX in including reached year. $XXX the Wilmington square sales Mayfaire foot to properties per of Trailing sales were quarter per which Center square XX for Town Third

of expect to rebound season. a and positive these October with We the sales centers looking are to year holiday end

on national third Thanksgiving close tradition of Friday. the the consecutive year, Black For centers our highlight we’ll to

lineup and customers will permissions special for X events treated entertainment busters to Our will the starting weekend. and am be door and at throughout

portfolio. tremendous stabilizing redevelopment our These and are occurring income. performance amount of activity As Steven critical in we’ve stated, in growing projects our a

we’re space, driving as new well of store vacating the paying rents center. As as what are we multiples stores whole were replace in traffic department that achieving former the to sales significant

of in year Brookfield H&M Fitness through Square on redevelopment the Construction operator Wisconsin. Outback Later was will we’ll and in next last In the exporting sale Mall in this, stores During food and quarter, Macy’s year at of development opened at at theatre Steakhouse Parkdale Flix HomeGoods JCPenney Five at the Mall, East we which open Planet Mall the Sears on one phase Milwaukee, the and Wisconsin, Bloomington, June, former Brewhouse, film, the Towne Eastland is started construction summer. and first purchased a Illinois. specialty at progressing open microbrew featuring we leaseback. the goods Below Madison a of

the The movie July, center the experience, restaurants. BistroPlex completed and center of of two citiy which the convention portion first for hotel commenced stage Theater, includes dine a partial construction In of new to the Sears development entertainment Marcus a project we October. sale WhirlyBall in and and of

opening Winston-Salem for Dave Mall Diner on of open location in for here XXXX. Buster's At are Mall the the in former Mall with Center scheduled under the under Bonefish add Auto former November Louisville, Beach. in the Northgate and Panda former former near space and Restaurant in Hanes Sears we Auto Sears Volusia in Kentucky, at a are fall We’re Sears to wing Metro planning We in which at center Mall in at Jefferson in entertainment construction the construction Grill Daytona Aubrey's will the Express Macy's. shop in Chattanooga construction Center & commenced opening RoundX space.

provided year. As also The office Steven Greensboro, under store a their facility. restaurant. list part square-foot here mentioned, construction later issued Hamilton open freestanding is XX,XXX purchased In Fitness Sears new notice Chattanooga. was this Novant future location at properties as Sears on closing Friendly October, in OX expected lease the Health In This Place to replacing Sears' the Center, is we at bankruptcy. terminate to medical as location recently early former for with of at

the Eastgate self construction adjacent on Cincinnati. Sears lot will entertainment, it in vacant project include first a XXXX. on venture September. details private project in remainder of under opened early in parking We spring Construction the Factory component. to facility our late hotel While shortly, be This more on Cheesecake and in already dining storage announcing on we path is December. will the of begin joint will Mall is land opening

Midriver are great open We’ve stages located planning at in Our St. projects in two will Peters, Missouri constructing partnerships second anticipate in we project other These in December. that way XXXX. time value with stabilized, the of investment across no so create can to cash for there's our best We to look we land share equity, contribute monetize. required. CBL portfolio. Once the

call the financial over to Farzana Now, discuss I’ll turn to our results.

Farzana Mitchell

you, Thank Katie.

third the $X.XX per share property adjusted FFO quarter compared representing of dilution net Major per asset share for per $X.XX quarter from $X.XX G&A and included expense, a was of sale. XXXX. $X.XX interest Third share to share per share $X.XX, our variances lower a with higher income NOI, decline per higher $X.XX share share related $X.XX the per per $X.XX tax primarily retirement one-time expense from lower benefit. CEO from

to continue decelerated. the anticipated, as has NOI While pace decline

$X.XX and to results of expect the reductions Based reserve of continues reserves. which into of million utilize and cotenancy. the million quarter of range store which line for negative low $XX on year-to-date NOI the For a and estate adjusted the end current our same-center consideration at to with to of Real expenses a million estate projections $X.X X.X% rest of XXXX for rent to million. of impact the Based FFO lower lower a operating and per $X.X with fourth tax third end quarter, million negative at assumes real $X.XX of revenue the achieving expense unbudgeted recoveries million, repair $XX $XX.X taxes, we same-center or bankruptcies, to NOI top million. while $X.X mid-to-high Guidance mid-to-low here flat X.XX% decline results declined $XX tax budgets million was X.X expense. X.XX%. the decreased to increased anticipate relatively we take Property include closures, on the maintenance approximately expense our corresponded share year, to-date

will will benefit We for February tenants mall Sears both the new XXXX guidance provide Bon-Ton that the which from the a cotenancy open will replacements anchors. and in as and include throughout in comprehensive as impact year shops of well

plus secured rate $XX the completed on XX rate million by successfully approximately The attractive date, completed construction option. we fund LIBOR El We the Sears with nonrecourse, compared Outlet quarter, of of have larger was previous of three-year the at X.XXX%, refinancing we at one points. year similar substantially year term loan $XX to loan excess Square. X% Shoppes loan the new projects the the our The million During down year funded anticipate the paid unsecured $XX with to Paso. in completed minimize net the Brookfield closed basis an interest at We CBL at a loan. nearly with to $XXX In variable construction CoolSprings proceeds loan proceeds for of redevelopment The refinancing and in $XX.X CBL. generated earlier million, and from nearly term the XXX dispositions from proceeds cash year our capacity July. our is help Coupled the a in this million we $XX rate has on a total to extension million to million initial Galleria financing in redevelopment outlay. securing closed October,

progress completing $XXX loan, mentioned, lines making Steven major of as term extended to our million anticipate tem As matured we and towards was refinancing tolling XXXX. of unsecured October XXXX, X.X are a credit all excellent as a our dollar which facility of the component which of with our loans line billion facilities and into term in loan We capacity secured one in credit credit. rolling well

providing this We will facility extend and us new time the sufficient strategy. to our for flexibility several liquidity maturity years, of execute

sizing specific eager progress, and able close. is you know since discuss about not we other this the to all to we in details While until we’re are hear work a

the property the supporting assure quality you facility. integrity both process on the we’re this through that focused we and of bond However, new and the balancing

rata billion, end from reduction approximately a at X.XX debt Our total year of was share XXXX. of quarter XX end million pro

the to for of the this in mall. closure the occur waiting finalize full XXXX. most quarter we been have now anticipate recent update Based on will We

We Towne the a the have approximately being apply of given. towards would transaction for property XX into with pro a The entered is successful Center. land of currently behalf marketed with on balance Any being disposition lender. a forbearance of any agreement loan from proceeds Cary sale million deficit

XXX times end due were times X.X While have on XXXX. in the EBITDA level XXX this our we quarter, process, liquidity at net close The end transaction we credit lines property debt third to increase outstanding total lower the to available. million With the on expect in over primarily of of early XXXX. NOI. X.X of was quarter, At the was with compared year-end to million at

Our will expectation lease for metric debt call year-end coming and turn are online. new concluding improve by is at and projects over XXXX Steven NOI we benefit this remarks. now from I will reduced from to the

Stephen Lebovitz

our Thank Farzana. you, of want office the recognize and challenges team an entire face thank experienced navigating you. strategic fully CBL our field all behalf for professionals priorities. organization committed the to of appreciate incredible truly both in we I do CBL, we they has implementing and in home to on

have do, our said earlier, of plan confident future. we lot a to and while our I we’re in As work

amount to put are real of value for tremendous prime portfolio versatility of to across transformation and position We demand this the which process a of a in our will store drive. our estate. receiving the The demonstrates portfolio, CBL former department spaces this

focus We town a longer a portfolio properties mixed-use will mall be retail that instead market. center traditional are in a with we their suburban of no will closed company in company be dominant

the We taken and initiatives and Thank we dividend near the your to reduction expenses, your redevelopment maturities. execute liquidity to strategic with other is you and today. are continued term appreciate adequate demonstrated to our without time CBL of reduce pressure to for we ensuring flexibility committed measures support. As

to call the questions. open now will We

Operator

we question KeyBanc session. and comes gentlemen, go [Operator question-and-answer Capital Instructions] from the from your Thomas will Our Todd begin with first time, today Markets. Please ahead question. at Ladies this

Todd Thomas

to about, terminating the vacancy, appreciate mechanics Bon-Ton I faced period, cure tenants talked they're you how disclosure. fore the wondering rent? lease cure that either just question, the I reverting back through could of First the Sears cotenancy The have or have associated with long and typical that exposure was and run long to you if how before you

Stephen Lebovitz

remarks, varies by over different So significantly retailer, we we because property, my like cotenancy same language. I inherited our it retailer during portfolio, varied properties the within said it acquired varies even by it across varies time,

impossible done done where one a we've by So answer answer it's by we question, closing. cotenancy. and to the really states the by short gone triggered of what is property said, it's that projection states, than see but property typically is, Like we’ve I anchor more through

So period, then months, of XX cotenancy closed cure exposure or overlap terms can two with before anchors have that it XX we where a they we’re Bon-Ton. tenant is they and leave. reduce in why Usually, Sears goes during be properties and that's the triggering, can months, focused on more XX rent or there’s to can stay and period, the

said, And in it's us that sometimes, these to there traditional than of replacement named the But that language sometimes anchors, all isn’t, respond service, flexibility. conditions entertainment, anchors retailers with acknowledges we’re language value are there’s types bringing current different give working stores. we’re I market the sometimes today replacement food, department like to anchors so really and

exposure the said there’s gave and So X give we we the it, closed. with that year for lot the of the million, like stores just the in was to try we in the if Bon-Ton earlier X call range year rest also the next numbers million numbers a see Sears we to to

disclose lies. to give as tried we the So, everyone exposure where to sense of

Todd Thomas

where essential X So clarify, see Is was there's XX to to million what if would the just million XX that the Or on to million. so overlap? earlier it to Sears but the Bon-Ton said, portfolio year, XX exposure? were had for in overall based million Sears that and all you you be liquidate including centers just today,

Stephen Lebovitz

together the so everything for It’s total,

Todd Thomas

other comment which rebound the bit your you here, and I be a store talking looking could apparel portfolio XXXX are about in in is are XXXX seeing little And sales those store footprints around for some still? then, of point, here, Stephen, more retailers? this bit to favorable the benign you in the you unexpected the you how just more curious, or on far rationalize a might Can program expirations talked at just and negotiations better, but if provide rationalization about prospects commentary through am retailers some and of tenants to still lease terms closures traditional be bankruptcies.

Stephen Lebovitz

and Well, year, you I optimism retailers. our definitely that -- creates point you see just Signet, good the a their Foot this at reasons that that lot improved legacy make a companies bumps to the more that's sales in like with Locker, favorable backdrop. L American been think has there look improvement and a we and they've recovery of retailers, started and and Brands, the Eagle one results. And of And that largest had for

has financially. in improvement no struggling which have the they're high address during XXXX renewal occupancy when course those tough. is and cost to A question, position lot encouraging. Ascena of XXXX the a through of so retailers And have discussions we've had been year had and

an impact. apparel strategies XX% users. regionals, time those different new the locals since The of to have that that. So, our strategies I it's really we legacy in the of like to are of and those going retailers worked the part also non to we've of more through contribute we've bankruptcies numbers, kicking are replacing been users, a head the more quoted and now favorable with feel environment adjustments them with ‘XX, same worst And just more as some got like of and rent types do we but

we're of deal are retailers saying not look we contingency and out ahead. woods more we in all positive think with we're to the So, as still headed direction I and I'm but thriving, not have a

Todd Thomas

do sort And renewal the of to is you? XXXX? through think for explorations are you assume far know how And reasonable XXXX what percentage you

Stephen Lebovitz

Yes have I'd of we the XX% in quarter. are renewals ready, the XX% first say we're to happened probably a lot

they signed, so, if been addressed along been have well the process. And those they're in haven't and

Operator

from Our Please go Christine next question question. McElroy Citi. comes ahead your with from

Christine McElroy

assuming thinking ratio or dividend seemed you income? some sort now of income I'm is those sort you through level at the sort be think how walk that of just I'm a is dispositions taxable taxable Can wondering next about in you $X.XX and increase in losses expense of should much losses $XX assuming of setting of can same-store million. the taxable pieces to are we are income. potential I'm us of you of level those about if reduction payout XXX% I'm against that sale? of the the XXXX. how the walk us NOI know pieces and through of know of year, that going And on and you know mentioned the decline that that interest you sort new

Farzana Mitchell

that I'll lender. your Christine, two different will Hi, say transactions returned Towne significant in really suffice try are Center generate to Those be I address to are Acadiana Cary the losses. all sold the that walk through cannot But you to to you requesting. question, and but as XXXX steps Mall we’re projecting

be That's with losses know surely we to where at fully what be. it's And bankruptcies significant that estimate $X.XX get into our time of know as we the that on two goes we in impact it we would So of that XXXX as in of these terms transactions, well based -- today determined is today as incurring from have we’ll balance what impact, on but XXXX, in look we balancing dividend a the we as now. have set best that's the the where

Christine McElroy

the on disclosure follow-up his I of comments that back the appreciate eco a supplemental. really question on to the just and cotenancy, in I want Okay and Todd

XX over CBL will I the cotenancy? by not owned counted two more the regardless of by control Sears I’m does of recurring you in that it's owned anchor just how does clarification, wondering the or Is boxes handle for on box? re-tenant sense? Sears the Just party. that in or it So, cotenancy, you’re that trigger third box, if to not nature Seritage maybe whether the that are own get a in currently make of being or or not whether the a

Stephen Lebovitz

cotenancy Sears zero that we on makes shopping because is of Yes, really the impact have where it They don't the sense. have coloration, located in Sears have that center. we is retailers now any own,

own, we Sears it We lease factor. to or the take So years isn't concerted can. say effort, of determining five whether really the I'll past over a out it made where we cotenancy

come we get So on feel are. negative range with you, sense also we and us fact is wants in they be can one the but else we for wanted RAs just limited don't no control conservative retailers it Sears, we're flexibility because we their us to the price lot at eventually can, else it someone of we that. what buy giving those with they'll that and -- the and that will numbers then of ownership will the the and with be all working a do restructure where that we to it where the are the work a if one comes lower really to because it. And to But view we then and advise we a as

don't an we So, factor see at that all. urgent driving as

Christine McElroy

XXX gaining XX million those inherent Is annual to your controls spend? it in million of some potentially boxes

Stephen Lebovitz

Yes.

Operator

Our Stanley. question comes ahead go Please from next Morgan with from Richard Hill question. your

Richard Hill

that of income? of this mention much But driven was you cut, if sorry the how I'm dividend by taxable previously.

Farzana Mitchell

said, biggest really an precise portion that not Mall I is we the and easy Center. have the lay factor of the the I like projected are Towne will taxable number because generate to not you Those all did driving and Acadian losses. But it that out. give Cary dispositions calculation it the is

Richard Hill

the Can relative the about to And think to credit, into thinking that details maybe the but about of Steve that line to I maybe be go of you about you and you're want call secure secured. to that extensions did have maybe you covenants having last comment line? how would mention recognize that

Farzana Mitchell

for that out cognizant any Like changes, like and through it connivance, Yes, sure now, will or where either getting January. bank give as cannot us dispositions bond become those care I as taken the but room said, and will we’re more But hopefully anything or ample and well I end to the mentioned I they question. as be will that of we answer like will properties in flexible we’re we of that. of very convenience well close we’re give make bond it the year governance are working this be on detail right up by wrapping

part details, really we the you’ll of flexible you environment. the can you and we’ve good or be first till really to the operate strategy us so a give year next So, of what if in the end for see done can’t very is year, wait -- patient a

Richard Hill

that And question more thinking book? in my value. based -- when when there Or covenants on should you question then we when your asset a -- when modeling maybe you Is way about but end, upon encumbered your be any just is then one think quick that?

Farzana Mitchell

Yes on on side. it is based book, book bond of the

Operator

go with Burrows Our Sachs. question. Please your next question Goldman from comes ahead from Caitlin

Caitlin Burrows

it’s I said while was in was I I would know guess down look like you a that as the wondering even so impact maybe G&A, severance relates quarter G&A it that significantly. to obviously been year-over-year to the there up it excluding slight but have does

store you any if ability what’s same just you’re scale G&A? wondering, losing to of versus or of just could kind direction was NOI difference causing the comment on or in So FFO I whether

Stephen Lebovitz

that Company that’s we during expenses do reductions in to for steps you that some XXXX. mentioned, just costs, opportunities next mean to probably taken cut our of some G&A G&A executive we higher other management, contributed of we’ve and get that that’ll year some I for and that There’s had I biggest we’ve developed contributor quarterly others legal that down some living this distortions the reduce have overall year, quarter. through efficiencies year created so definitely parts because the the expect Yes through we and compensation be this the

Caitlin Burrows

little in has in sequentially for down year-over-year maybe third quarter been now. improved guys of terms you the but occupancy, just a then while And

So of now, just, that opened? what’s not by you’ve actually terms your based leases outlook maybe in to stabilize but the on potential the occupancy executed

Stephen Lebovitz

XXXX. but from the mean it in headway in we’re I faster, bankruptcies crawling is We should wish we time XXXX. and see back it was more taking

Caitlin Burrows

of is if quick open actually of process does some year just expect of maybe happen already that to in some call assuming activity that Or the XXXX side? into have numbers it I that of worst that negative is potential you the one the you that you gave is cotenancy could a that kind case assuming that then the the on And one none scenario? -- wondering, is

Katie Reinsmidt

Hi, the like listed Bon-Ton’s Caitlin, it's of a several Katie. they year. executed the for that We’ve open haven’t It this are does end that assume of scheduled. lease will if couple as we at

assume does that it back So executed. It we taking into actually leasing though. have consideration that does assume additional not occurs we’ve

Operator

with go question Schmidt ahead Craig Our from America. question. your comes from Please of next Bank

Craig Schmidt

of have that you NOI. XXXX, to key I right wondering due to am that if of declining size as Looking turning same at in see in number a store need kind sales? I your rents still renewals tenants

Stephen Lebovitz

for well And we're think done working driven through we've we’ve to I but and Like the retailers but don't file publicized, they've that process. said, done, majority of didn't think worked said, I restructure to been that. like formally It’s are and with them that. by with Chapter XX been we that struggling, we're avoid I really

in environment and XXXX year should given sales, the we the see sales of have improvement strength we that So, some the economy. better this

Craig Schmidt

in some might in that So amended, case rolling already it? be terms of that you of that people would with dealt care take that leases this you've

Stephen Lebovitz

correct. That's

Operator

comes Sullivan with Our James BTIG. question. your from question ahead from go Please next

James Sullivan

there you, or do here, spreads? a overlap there in of on Or the have the for appreciate impact that if into Is we is built in words, lease, for cotenancy additional envision to no? addition when a the the lease and we model other Just impact or up do model if In some spreads? those a does but negative also guidance to new what the the that you leasing cotenance about the clarification leased leasing in that cotenancy, show you think cotenancy is XXXX. point

Stephen Lebovitz

a adjustment is and is a for in time. place cotenancy The finite occurs it one-time only typically that period of

So, spreads lease negotiation. are that's has where the a the XXXX new separate impact, situations real in

I want today. what We of conservative in to clean are said, to could cotenancy. we provided renewals that you part as Like so we but be up the help working

James Sullivan

the and question second And this of is renegotiation. for Farzana, in terms

be of into there'll that terms over you to and guess sheet put that term new place you substitution year, the of In facility by the rates? the expect expect do end I

Farzana Mitchell

taking question? properties your that and replacing is out adding tenant Meaning properties,

James Sullivan

the looking otherwise about I'm securing the ability the liquidity to sell might just new be assets Yes, line. that

Farzana Mitchell

that to know have able Yes, yes, allocated they flexibility, you if have we we we should loan an because -- will will be amount.

it. So based on on off year that if we get go money property term, should and should that and for a XX able to loan to be longer out pay we put financing be a we on that able

have So, about. those that excited what yes, will and we of that types flexibility -- we are

Operator

Our go question. Donnelly with next question from ahead comes Jeff from your Please Wells Fargo.

Jeffrey Donnelly

maybe are curious, Actually, Farzana. if mandated already try portion I on flows features can in to maybe foresee maybe are terms pay having going what's timeframe package continue I'm guys of Jim's questioning the where that this considered? do know you being you just you that you about of particular capture over cash down lenders a or debt in to some and that it

Farzana Mitchell

be Yes, patient. out, We’ll can that you soon. be putting hopefully

happen to in doesn’t I I would and know close it process getting you we’re will say said so. for right to hold be then the me want anything and because all the it something it out you to give don't if and obviously So because information now, imprudent me

Jeffrey Donnelly

on in I you of through sounds question. working your slip try. maybe you XXXX Craig's retailers. of I really be seen that way Understood, spreads it the gears then they under because this Does might Or guess renewal more a think switching leasing you've of sort It declines pressure remain will that working smaller you’re far year? by next renewal down assume realistic XX? year, do challenging in more but is back just going spreads bunch been but actually like could that mean handful year-to-date you've tenants of positive sort to with

Stephen Lebovitz

to too I think early it's say.

better, lot are and still going negotiating pressure a we there's it's and far pressure think and renewal. be is but switching categories, to certain that reasons, optimistic as there as are certain We’re retailers of

an So give you I right now. answer just can't

Jeffrey Donnelly

And you there in we in you the that just few you that statistics you outside discernible concerning improvement you've retention the the years, potential land rent? you do seeing walls not frankly because said, the as so extend But for the portfolio might those mall is put that improvement the have the obscured you highlighted sales already or that the the replacement? initiatives new just obscured of or being one on like like I’m be provide curious, past box where then have improvement I level got metrics or curious just open tenant really taken any anchors already a by or occupancy. traffic place in of I’m lot metrics that anchor retenanting know, compile a any beyond to the occupancy shop where the guys benefits in box actual itself, mall of or replace portfolio

Stephen Lebovitz

Sears We after Galleria how the improvement for XX% replaced in have former the year seen entire definitely we increase the all center. the replacement have from Sears CoolSprings, of sales in rest the the hotel Nashville we

retailers such to able Pizza as recently the have stores and opened. Kitchen more We’re that Factory to their beautiful Cheesecake other so mall, soul offered add California stay first where

property business we up helps and Kings, Outfitters. had the five and sales we’re with is times Sears We -- Outdoor just the area it and of H&M, Sears doing we significantly. was, amount box and user them restaurants really helped Sears, the Beauty, is had the that two Ulta have the an So, it's where Outfitter Girl of doing entertainment American and income out replaced roughly Outdoor

two we're can I to again, then right here in to really as So, looking are we're like mean Sears measure we lot, through Place be and and with it announce I in they're as going Hamilton tracks in ways to the XX% counters parking it'll did transformative I do we in hopefully itself, much mean and it's in and now transform going project Chattanooga able in Wi-Fi at it camera, can't tell next that Factory. rest the but you better business be benefit. that -- are under have each of the they In we case, aspects property is it this property that. construction And the Cheesecake months. and and in and will to

as quantify question positive. continue a is to that forward, something going to but big go definitely we it's it we’re no So,

Jeff Donnelly

end And weaker guidance the sort year-to-date on of just maybe at you’re mid-to-high of there guys if XXXX think end some but it, of reserve. and that’s operating the going that in I Is it one call you’d metrics leads gains in last to guess Is missed maybe I think said curious higher I am I'm at NOI be of on you’d is? of the what else you not question, you sales, FFO? just I bankruptcy FFO, it’d the towards seeing is -- end that that I be there think the mentioned something to the

Farzana Mitchell

year-to-date. We’ve had to Yes, sales. level that reached going higher or be it's outparcels XX sales. million so We of the outparcels already mostly

up that’s up higher to interest on the we’ve We so, has bit of a with bit some part are expect that though just so little different higher even be side. little $X little bit even really million where -- maybe and reason, go expense that’s savings next or it the gone a other in -- another up we end others FFO a

Operator

Our Michael your next Please from Mueller question ahead JP with go question. Morgan. from comes

Michael Mueller

guess lower I are a breaking everything you're know you the dividend. mentioned much to to quantifying couple going that a year things or to going one the down, to back weigh not losses that’s impact going Just two next have you but I enable dividend,

bank a should that because that of as as $X.XX XXXX you’re to we going taxable that weigh on one down having for not So of should think of of sizeable we in shot is to certainly one being kind level dividend think it? couple year losses how net, deal

Stephen Lebovitz

felt given and was in off the way XXXX we’re I at the this income, keeping mean XXXX sources at so where XXXX dividends to right and like level long liquidity this the for of Company looking is a we’re point. we all the is cheapest

Michael Mueller

that’s confirm everything the as that’s million to that’s cotenancy a any to to said million just not case going base for boxes want then well? X for serious just other before you And Sears liquidation XX

Stephen Lebovitz

correct. That’s

Michael Mueller

QX just much year? And to we of versus runway in how is look we’re as If going incremental quarter. so million earnings, a how $X is that million a next average at already $X that to if much follow-up come the to

Stephen Lebovitz

the closed Bon-Ton August, is I there’ll little was mean kicked any QX, in XXXX. QX for Really, this it in much in that, impact of at hardly be for but is a this it not in looking really we year. of so we’re have,

Operator

Spenser your comes from Our question with from Street next Please Advisors. question. ahead Allaway Green go

Spenser Allaway

would guys JCPenney a the talk at early you’re about impact the of be department store store looked to next about industry in given cotenancy guys you to what how you closures actually kind JCPenney Can little of Have thinking headwind the the your year? exposure continues event announced face? that

Stephen Lebovitz

not with in of but JCPenney with we JCPenney Bon-Ton, and communicated that a at looked We’ve regularly. and level detail Sears we’ve with

look immediate areas they've short then going term sales for some the should helping But with more There'll have Bon-Ton from and of up added might to of into feel going JCPenney from really capture that Sears, we our Sears market that an benefit that We to appliances are on we mean from closing, be be and share. but going closing. good those. closing. they're a of both and what watch they're sense with stores I sales of pick the list, stores about more translate will From business hit home portfolio out them.

So, our we and stay feel good well about JCPenney their their and customer. in they portfolio. future it's perform

we're about losing something on sleep So that's that not it right now.

Spenser Allaway

back to to back be relates additional will the tenants on selling to guidance look that kind it a a But we you cushion anchor come And then as capital boxes you. as closures ready get with have next guys set I of including for particularly know year you budget cotenancy these kind these they and forward into as aspect? so are of

Stephen Lebovitz

when We lot right it between if a now good lot do a know February, will, guidance, have we reserve tried amount and the than we a we but we'll the don't to now. now, have so thing and we'll know better we'll sense about more give

Operator

your question. from Our Please ahead next from comes Jefferies. Tayo with question go Okusanya

Tayo Okusanya

term questioning, the of still be that about and understand in of of do amount a going we the Farzana, on the and just I with debt have maturing will mortgage debt think to credit because all Jeff's line going recasting ’XX? do mortgage you decent back line how loan, ‘XX but

Farzana Mitchell

year. happy to answer XXXX that a really question. Yes, benign is Tayo. Hi,

If we in they have you million, term on think and Creek, are about the been lender term really and And the with about $XX is they that. loan recasting. a million Volusia two loan loans discussions $XXX Honey we've

you not take year So, a that XXXX. out, if for it's big

loans term So a with longer secured and put generally maturity, much that recast deal approximately if $XXX speaking, to it's we we are it's over done to all balance, have up. this Current based up, the to million. date. but in pretty $XXX coming date, get do secured loans the the coming we XXXX is assuming on amortize current going have XXX million financed loan down that’s maturity at maturity it

loans a Valley of those Greenbrier, and have on midyear the and will we View and bigger of XXXX of there time, but ahead XXXX. We it until work some not of couple Bonneville is towards end and in XXXX

expect we So, to going are and hopefully be get financing these done. we have markets that can better we

really with I comfortable the where pretty secured So feel maturities are.

Operator

Sullivan our BTIG. ahead with from Jim And comes question follow-up. today last Please your from go

James Sullivan

it tougher is terms CMBS any question change really terms to origination Farzana from do To in extend offered? is any in Bon-Ton of tails Farzana, market are in much in the have for being than space caused resulting and that recent follows is and by was Sears question. sense? also the your a sense material extent on in what the disruption you what This

Farzana Mitchell

money, CMBS else that has some tap like you very are we other is market done. pockets cautious the tapped of there news tough, and been but are can on People retail that good everybody that dispositions have is, Well, the But just you is money of have with loan to moved sales have ratio, of and meaning of CMBS. is property the the necessary generally better still not on square higher debt per level the up. available also debt pockets foot depends property the the yield, CMBS on value

ones for property, to are do, time real estate. tougher little harder The smaller at property generally bigger you would cannot that the just the are for environment do. ones to So, is same generalize CMBS it's easier by a it. retail But say property I it

James Sullivan

redline there mentioned sales of where impossible preferred, CMBS a level. get is it's financing almost kind you to And just at productivity certain

Farzana Mitchell

They had where very square getting Paso. CoolSprings been financing selective, foot. sales we've close on we we and did Well, been haven’t per great both out El did we

So, I get to I say line, a CMBS a plus at same the but don’t would red is time the know place better financing. of XXX

Operator

we the gentlemen, the allotted of like I would to time concluding call conference to today's any end Lebovitz have over and session. reached question-and-answer Ladies turn our for for remarks. back Stephen

Stephen Lebovitz

and Like see many a Thank NAREIT and said, next good Thank have day. your you again at I your week. appreciate for of time you support you we today.

Operator

that gentlemen, for and conference attending. Ladies conclude Thank today’s you call. does

disconnect You your now may lines.