CBL& Associates Properties (CBL)

Kathryn Reinsmidt EVP & CIO
Stephen Lebovitz CEO & Director
Farzana Mitchell EVP, Treasurer & CFO
Todd Thomas KeyBanc Capital Markets
Craig Schmidt Bank of America Merrill Lynch
Richard Hill Morgan Stanley
Caitlin Burrows Goldman Sachs Group
Christine McElroy Citigroup
Omotayo Okusanya Jefferies
Linda Tsai Barclays Bank
Michael Mueller JPMorgan Chase & Co.
Haendel St. Juste Mizuho Securities
Call transcript
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Good day, and welcome to the CBL Properties Fourth Quarter Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Katie Reinsmidt, CIO. Please go ahead, ma'am.

Kathryn Reinsmidt

morning. good and you, Thank

laws. risks. A Joining company's results, measures SEC of detailed me [Operator being is Executive the contains and Khaleel, at for Form materially. you Future federal of Lebovitz, statements to these direct inherently is risks on We and the X filings that financial and to are President a financial limited X-K and otherwise, non-GAAP with GAAP yesterday's supplemental available Stephen website uncertainties. the securities to the Vice cblproperties.com. on of the was reconciliation call and the CEO; statements CFO. This are within subject measures be and discussion Instructions]. various actual hour. supplemental Farzana events in furnished Invest call meaning today will the Such financial This forward-looking and the earnings differ section to conference comparable release included may of

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

Stephen Lebovitz

Katie, everyone. Thank good and you, morning,

of work and for we in our part support in organization to vote all the for next the huge commentary which talk years. are term a and results I several provides to their our which our accomplishments with of I with also financing, confidence. week. CBL their is recast the I'm This and the last the runway It and lines facility, credit, accomplishment XX and on existing closed redevelopment loans off hard XXXX. for us about year, the want our proud Before new of facility, operational of over start and achieve some quarter everyone goals CBL. flexibility bank new $X.XXX banks billion appreciate

demonstrate creativity the every impressed We incredible CBL, and constantly I'm and at an dedication have professionals they by day. team of

We forth challenges in of line with store by accomplished are set notwithstanding national results the materialized. department pleased on that result filings expectations well pressure beginning was the X year, retailers. as bankruptcy chains at This to as overall deliver several the despite

the financial a in facility, successfully XXXX executed In with goals financings we addition favorable included $XXX property-level important rates. financing million activity. of more number credit new than at to X non-recourse very This in

completed in gross of also dispositions, free $XXX We And reduced at lower to debt deed a Towne January, sale by lieu and completed in Acadiana than $XXX million and of on debt Mall, flow Center, cash total supplementing the in we which more contributing year-end. million. Cary another overall

year the to was due share. new effective openings. and top was share, expenses our project X%. for full both year per quarter I stated, to fourth $X.XX it of operational NOI for Adjusted from line leasing for management and with the and Fourth with were guidance same-center NOI NOI trend This in declining and results X.X% improved the was improvement from full FFO expectations. year-to-date the full per the $X.XX As line contributions declining year, quarter same-center and

prior per numbers growth. to of and year the returning with per portfolio We is $XXX ended satisfied year FFO and foot never sales our foot square negative NOI for are and period. organization square We stabilizing on company with compared with the focused entire $XXX the

of bankruptcy XX.X%. XXX we closures. us, increase XXXX. strategic portfolio our point XXXX basis have with more Bon-Ton on XX to are the With we filings sequential priorities Between a than Sears, and improvement Additionally, anchor demonstrated occupancy for behind executing

our same to related and a our is as now well shop near-term the loss bankrupt significant rent portfolio have tenants time, as and come. will which and rent term. strengthen this having properties our for store the closures for help transform years guidance stabilize to At position struggling from market-dominant These bringing long the As in we to income solidify our properties the year our to impact and sales uses, closures drive to reductions the or income for traffic greater of dynamic more indicates, new newer, by opportunity users stream. anchor will

and While on with In our uses tenants the past, national was executed new entertainment, XX% were wide limited today non-apparel of primarily including to retailers, dining, are total ranging. over leasing our the service. value apparel tenants, XXXX,

report three and grocers We uses, have in entertainment three projects, are centers, XX multifamily facilities, three three agreements other XX fitness executed nonretail construction active a XX across we of two take have they but and negotiation to our number portfolio. restaurants, or currently positive our that operators, execute, to self-storage activity deals the uses. These under medical on be on to hotels, of It's properties. time amount will additions encouraging going

close our portfolio, paying also to that stores. replacements investment anchor a attention to no of to that CBL. that highlight across occur are are have We we require requirement or backfilling want I expected by the little dozen capital closing

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

We'll total redevelopment million financing for projects range continue larger such to Square. next for annual the remain Brookfield the expect $XXX several spend We $XX to the secure to in million as years. construction

these million basis. our the our dividend fund generate year, Following of a providing after to dividend, leverage-neutral midpoint liquidity approximately $XXX guidance last cash flow we'll projects common of on range, sufficient at reduction the

and return on the in confident will and over discuss now that Katie results to investment and I ultimately, executing turn activity. strategies for to position properties growth. in are are our call redevelop We diversify to our tenancy we operating to stabilization will portfolio a XXXX our the XXXX, our

Kathryn Reinsmidt

made years. bankruptcy in We and headway towards recouping solid recent you, Thank store from loss Stephen. bankruptcies occupancy closings in XXXX --

XXX a year point quarter. was leasing from occupancy point of we quarter, X.X to basis fourth over representing basis million the XXXX year. represents the decline sequentially quarter X.X and announced basis recent feet. occupancy bringing of prior store XX.X%, increase of feet sequentially at Portfolio be quarter square mall XXX,XXX XX.X% XX leases, the filings. bankruptcy feet. During decline an Same-center first impacted will few liquidation executed XXX mall or Crazy Gymboree for square increase million and activity of quarter namesake impacted points basis Bankruptcy-related closures stores. last the XX occupancy a basis a fourth by approximately to X for the points brand square Occupancy by compared their point XX

feet have We square closing. with locations XX approximately XXX,XXX

of Charlotte part portfolio We anticipate comprising we their approximately XX our close XX locations in basis stores Things week, will month, feet. this comparable most square earlier that filed, On XX,XXX a Earlier this also of have square filing representing Remembered XX,XXX Russe feet. as same-space shop their average over for the X.X% and renewal lower rent. leases the an leases we new fourth on signed decline on at quarter, than square an rent X.X%. and gross average signed new leases malls Spreads renewal were feet mall of of expiring of for increased XXX,XXX stabilized XX.X% closing

years, with spreads persistent we've points on certain with spreads. and prior retailers renewal trends year. in lease the Ascena near in for with As year pressured are anticipate sales term declines per decline renewal negative $XXX negotiations square the this the We overall per positive leases. basis XXXX Express will year. $XXX foot that deals to XX the but the the have seen We contributed to reached X had sales this with lead foot Same-center XXX throughout quarter deals that in sales optimistic compared improved square

wellness. properties. health healthy portfolio restaurants, and November, electronics, included October Our strong shoes the that casual and and December. generated increases Categories declines in Texas in throughout year were Regionally, our fast by offset well in performed sales

redevelopment significant Our program progress. anchor is making

While as in build income closed a we are make quality progress in impact replacing experiencing anchor we more term, locations. stream we back higher near diversified to income credit the our the will

not activity review our and the encourage place lodging in but submittal becoming are properties in owned the every a Bon-Ton I projects whether but that Our shopping and more. status in portfolio. across we or currently details of Sears have review favorite we the service, their you department ton destination the for operating, included of portfolio And occurring go-to closed, is store our box current entertainment, only under leased. package. schedule the it the activity are I'll market, dining, It construction, to

impressive an or in active have of deals LOI stages amount that We negotiation. are

you announcements Construction Goods, of through one can on we those at Mall in we phase the traffic Louisville, Northgate month. Mall sale This in in Sears open will and summer. in and amusement generating Bonefish the expect at as the and at at in Jefferson the progressing is Auto location first in the Chattanooga is space in open in over Sporting the new on stores At from Macy's Auto the fruition. see us Grill Beach opening Square Center which former to Diner on is opened at is of the Sears Kentucky, Panda will Five Dick's Metro to restaurant So considerable spring. of the a here Daytona redevelopment Below the the Macy's former Construction deals redevelopment November. HomeGoods center. Aubrey's Express underway grand bullying Sears they Milwaukee, celebrated well Mall and in this this very Wisconsin, purchased Center Mall. and use Parkdale was XXXX popular Brookfield former Volusia leaseback. and the come of former X Round holidays

movie diamond already and includes commenced Sears' of this and entertainment in experience have phase has restaurants construction in center. Marcus the BistroPlex parcel Whirlyball Theatre, lots center. new opened hotel convention a first The our Two on the project new on

former a month. near Center, this restaurant. the Greensboro foot Dave & will at replacing in open location with We In construction Fitness former under is OX at scheduled in are on opening space Hanes Friendly Sears shop freestanding spring. new construction, The square Winston-Salem Mall next under wing Buster's XX,XXX for the

the the office to to Farzana our as be to Here in construction continuous now traffic December this to a in a building developed in hotel, parking value in redevelopment the mall. well-regarded discuss and pad Dick's us will allows call financial boutique to contributed joint enjoyed Cheesecake their venture story in strong here with over Sporting The This land which lot. reception Chattanooga, the & Goods, we waits, their with in realize which opened ventures, structure will increased resulted equity, the Buster's, Dave developer. they've from turn the of additional has a hotel on Sears expect restaurants have joint and Sears space. results. share in we I opening, other start we the and long development include assets Factory hotel January, in and a project our will early spring. future Since of portion closed upside. to our to Similar

Farzana Mitchell

financing This achieved on Katie. with number this goals facility we Thank With our the January, until addressed of credit our you, important maturity a billion us. we've XXXX. maturities In closing, $X.XXX all of XXXX. date for of closed unsecured new July

We simplified have also our covenants.

a we of forward, covenants the Going set one notes. in consistent unsecured with manner calculated have

also outstanding to reduce loans have than loan to our eliminating we but large sized adequate right by million. of utilized of line our credit $XXX We a more unused a new closing, At capacity. providing $XXX facility, million still fee, -- total our term

lines at As closing, $XXX we million our cash flow anticipate and proceeds remaining leaving of credit of a time. million $XXX this reduce result, had to capacity. balance utilizing We over disposition outstanding borrowing excess on

midpoint property-level We properties release as long-term we after to a fund per of maintenance million make our provisions for $XX than release on financings. flow million well is year. redevelopment guidance, cash as to estimate unencumbered as loan Capex Using amortization new we more sufficient facility payments disposition $XXX loan and the a as This for term term common the under or amortization well dividends XXXX. have the of provision as in

We the will cash will in also and free continue complete to market, the transactions, serve supplement disposition to be we extent our active this to flow.

debt our forma covenants the NOI The by of will a the supported and loans stable ratio planning. of as from the centers of credit for of as as credit facility support forward. the in conversion Mall. line XX.X%. well increased to the facility in extinguished, community pro the will and new the pool well be including associated and healthy the January, transfer is provided unencumbered in a million stable to on sale related in also the malls, metrics the we Towne been number and have completed Center going secured pool secured with which balance underway term unencumbered Cary quarter. or The of that Acadiana has as The In completed first We our $XXX.X debt supplemental centers covenants reflected redevelopments debt

extinguishment on exclude gain to FFO. debt which record expect adjusted also We will transactions, of we related a to both from

Honey mature XXXX. maturing being soon. Creek in favorable We secured a We've and to have in been able Mall by with in resolution July. Two the anticipate discussion Volusia loans announce lender loans secured four

by we have center anticipate a our We refinancing. outlet that $X.X million loan of secured phase Atlanta

wrap We expect up XXXX begin maturities. financings and early on these focusing in to the year

We in was due have mortgage December. one additional This comes continues and secured extended previously that restructured to perform. and loan

make maturity. our plan a We decision our closer and options action to will evaluate on

property pro share total rata debt of X.Xx net XXXX. X.Xx million total was The million level NOI. was with was end, a Our $X.XX primarily year-end compared of due from quarter year-end increase a sequential year-end $XXX debt-to-EBITDA at reduction and approximately decline. XXXX, lower billion, At $XX to at

term to Cary per for Fourth XXXX. and loan with fourth share Acadiana this was share $X.XX improve However, representing year $X.XX adjusted FFO a well during decline per property-level a $X.XX, of compared share with amortization. quarter related the debt quarter per as and as in should the reduction

$X.XX retirement NOI-related, year, primarily For share was on with included $X.XX noncore $X.XX anchor from to bankruptcies. sales. sales variances share FFO included Other to expense, vacancies per from per dilution share the properties, primarily G&A, and per gains asset full compared share lower $X.XX other lower -- per share included outparcel higher XXXX. variances adjusted Major and and $X.XX in $X.XX retailer related per

Creek recognized to more. by are Creek is Eastland is in cross-collateralized properties, I these the During Honey and a and that Mall and since want impairments through secured we Volusia quarter, X nonrecourse matures both on spend Honey a cross-defaulted unique. circumstances loan with to minute July walk Mall.

As a the I mentioned, lender favorable of with we've been working towards maturity. resolution ahead

at our of the loan shortened. from projected impairment result Eastland changes whole closures, due stores. the that an period a been was analysis multiple Mall X losing NOI, the anchor anchor to property determine time. is the closures, eminent this with appropriate to as maturity, However, hit department has Coupled hardest the

capital We early value, are redevelopment options our would future while stages investment. exploring of create several in limiting that also

the the impairment necessitates However, cash flow to closures at impact this time. the cotenancy lost of anchor an on related projected rents and

rent rent reductions the bankruptcies For struggling costs. primarily as from quarter, decline pickup, to to year retailer third NOI same-center full driven by X.X%, sequential we decreased this same-center recorded in Expenses the a for fourth XXXX, improvement year-over-year X% improved effectively quarter decline was same-center a With retailers. we This NOI. certain lost related over worked NOI. and for manage

filed they for indicated, XX addressed $X.X the from in well up from close. totaling end As for store as Stephen stores. stores Charlotte our stores would the expectation rent, our for of of XXXX in rent bankruptcy remaining, of and and assumptions retailers. lost After expect our Russe store lower rent gross result roughly XX rent annual announced closures million stores will portfolio, million majority Remembered if loss renewals struggling a also which we in include their anchor liquidation $X.X annual of This XX Gymboree filed, as closures with week, be annual and The comprising will Things gross we'll $X.X gross have rent. million closures, liquidating. from

locations have gross $X annual with We approximately in XX rent. million

temporary leasing is and work team is specialty signed. for these generate working Our finding permanent already on will a our until replacement leasing replacement team income to locations,

reduced facility executive offset mortgage and the higher management XXXX. unused debt to expense focused as officer interest savings facility expense are XXXX effect flat credit financings, have total reductions taking to overhead We lower on We and decrease in and to also taken fee. by for rate a with up anticipate expense in is on slightly to the be interest steps compensation

reserve XXXX into store of reductions $X.XX We in top per the to our of an losses remarks. range which assumes year, as the list initial approach a decline includes with unbudgeted to over call share range rent the the a assumptions, full now capture After occur. line which and turn I'll the Consistent bankruptcies, million FFO adjusted EUR share, guidance year set of are in per and providing the guidance in of $X concluding to to last take X.XX%. X.XX% X.XX range for our our NOI and consideration that to that of closures, Stephen million reviewing above to are our $XX cotenancy other any reserve beyond impact watch may budgets. same-center

Stephen Lebovitz

Farzana. you, Thank

succeed As I tremendous well positioned challenges strategic said to we priorities we despite earlier, face. progress have made are on and our the

removes short-term pressure and allows us achieving facility to new goals. Our credit focus financial on longer-term

asset and and supplement generating resources actively are capital new base. broaden We partnerships that out seeking our our income streams our assets, elevating

are ensure the right tough investing necessary. amounts We decisions watching making projects the are in are and allocation right they to capital our we when

move the you return And as Our goal, is to that through I'm the in we XXXX time strategies open call for your Thank and achieve position place for portfolio to stabilization CBL today. the to confident XXXX, growth. We'll goal. this to questions. now have we in


first our KeyBanc [Operator Todd Markets. Thomas from comes Instructions]. question Capital And with

Todd Thomas

bit little I annual gross different the same-store that the the a is curious, not so Farzana, some Russe reserve? $X.X that around Just that just into guidance. Charlotte buckets of that of in and guidance? one there rent you is was million How factored currently that mentioned hit the Or the from closing. is factored are Would other into buckets? stores of clarification

Farzana Mitchell

from it but in of off will the in reserve. it is numbers, some some embedded the of -- the Todd, come

reserve, $X have million $X in million to million $XX approximately the So we the established. be will that reserve

Todd Thomas


the of $X close the that if in already the flow to would million? that what's tenants they $XX million impacted bankruptcy known, some are reserves So addition of through stores basically to

Farzana Mitchell

correct. That's correct. That's

Todd Thomas

supplement And assets sale currently are Okay. the guidance? talked embedded dispositions throughout flow. cash in dispositions marketing some there And, for Are so additional today? about any you to you XXXX Farzana, XXXX any

Farzana Mitchell

Dispositions not no. embedded. Well, are

free However, reduction say what debt. flow, flow is investments will we we that cash our supplement and cash the in for

year, asset explore every certain will generally, is the in to parcel component sales, you will million when as so we working able have let that's other ones, results. component. one million accomplish opportunistic to some $XX about forward. and $XX then we smaller are are go we So know we we that And those our sales from on we proceeds And

Stephen Lebovitz

ways comment whether many assets, Yes, you like on because there's privately. market through might be to don't we different brokers could what and or marketing, we so it's

they're sense for a just and market. also a the of to -- So lot get expiratory times

it's think included in guidance, I So like it, would then and Farzana said, we announce don't we we -- the something it as adjustment. then happens, make


And Craig Schmidt from our America. next question Bank with comes of

Craig Schmidt

knew of if X assets assets unencumbered as the well? are they're Tier many out And the in you Tier number then wonder I in X how the XX, of of unencumbered? XX

Farzana Mitchell

Well, has asset since the changed the a category loan. closed bit little we

assets X we now X. the assets. when changed So had they we loan, the per sales did were Tier have that close square, And we X since have

So the one has Tier and it's X. asset to of just X to on one and moved some moved on has -- Tier -- asset

Wells now I number is you, X but XX of bag bonds right Fargo we So bond. piece terms of of is a of count properties what's left, the -- about a don't our in credit in a of I have lines X a total the in portfolio, centers credit Wells the a mentioned, associated it's count what's community unencumbered to give for sort for and But properties. line and that's for mixed Fargo Tier like the and big the Tier X centers total. number have Tier portion versus

Craig Schmidt

be of just redevelopment And I from under with will in have X Tier active you projects. X Okay. wondered development X how future redevelopments X. your projects Tier then you currently

Stephen Lebovitz

the -- sales redevelopments for on part, per Craig, I higher it most the are Yes, the square centers. mean, focused

the case of restaurants, Sears, it's we're entertainment, in project of the location Although, market. of facing the conference theater, is the because Square, center. And hotel, redeveloping, the and Brookfield misleading just quality outward the that

that of redevelopment and we market. transition continue basis great traffic creating And with project. time, even of a are and type have growing opportunities. so roads mall, its over on It's that on and freestanding a great to value And the tons location, stand-alone visibility will

So we But that's circumstances evaluate individually. one each the there.


And Stanley. Rich next from with Morgan question Hill comes our

Richard Hill

start Maybe you that? to our included off other the just talking increased, through like walk about maybe that I in with estimates, least prior It can to compared was at rather could income. what compared quarter. significantly looks Farzana,

Farzana Mitchell

think a there reclassification on, Yes, going that other probably I you that from and have reporting companies is seen well. as

income certain in components rent, included be of that reimbursements. So the they to some used that were them base tenant are in

to have some we income. sponsorship from some to other income, like reclassified the tenant and and which income other is category, -- also line rent the branding lease of the reimbursements moved from other other So to type

Richard Hill

bit question, did NOI just just make more it. off-line I'll your a to about unencumbered a I to detail, But makes Got probably your follow-up talk quick get to sure want sense. little separate -- it assets.

Just of to make -- sure I it about right? we're of see million is $XXX.X $XXX around correctly. million unencumbered thinking that NOI,

Farzana Mitchell

Yes. unencumbered approximately million. The is total $XXX NOI

It's split new credit divided. it half, half the in half it's of went of still and the is facility pool. unencumbered it to now So in

Richard Hill

it. Got

overall overall. same-store And so negative know NOI, X% you compared thoughts that trending same-store that growth is guidance? you unencumbered to the NOI Do how on NOI I any have give unencumbered

Farzana Mitchell

No. I Richard. information, have don't that


from question Burrows comes Caitlin next our Sachs. And with Goldman

Caitlin Burrows

same-store Maybe the the right of came of midpoint just In in that NOI. terms at your guidance. in XXXX,

reflects I just how watch at a that you So how would amount? about that for And smaller. wondering you is smaller think you think this you was XXXX? about how list? Would reserve reserve, say slightly Or which arrived

Farzana Mitchell

Yes. top that all now into Most baked bankruptcies know is line of about our the number. we

So what list. we left a watch have is smaller

that. of obviously, has lowered And so we -- been reserve the because

from that that. up, whatever so all to $X the for we now we've bankruptcy reserve is million this comes -- million for provided unknown So on, $XX

Caitlin Burrows

positive what anchor XXXX? NOI, if then how Okay. you just wondering could it that same-store of kind for redevelopments, in a us those do much remind also, terms you of XXXX? of settings your expect And would impact does, of and had And benefit you in was I be if

Kathryn Reinsmidt

there the NOI that on to a see if actually include benefit the have provided anchors we some Caitlin, we can we redevelopment, $X.X midpoint, benefit, but we that that also to lost benefit you kind reconciliation recycled is get deduct we're -- our some million that's closures mean, in anchor I of accretive but doing over deduction from is that NOI the long occurring. you're redevelopments all term. the it's together. There hopefully, same-store

ultimately, the the So rate. what there material XXXX not relative anchor should on uplift side. we're improve But is closure seeing it growth to a in

Caitlin Burrows

Got it.

-- that there because Just is you a little are offset improvement from the getting?

Kathryn Reinsmidt

Exactly. Yes.


next our And Citi. Christy with McElroy question comes from

Christine McElroy

as what us of Understanding CapEx the And sort not Todd's of you're to pay of year bucket then the down? over XXXX leasing you spend credit sort the development CapEx give for bucket? that what's just on expect redevelopment? of and question think the and left the then line this And R&M can giving million of $XXX in disposition CapEx free from cash breakout But you estimate. flow sort terms we about of expectation, for

Farzana Mitchell

sufficient funds should every the have we done as our amortization, also loan developments. cash cover to million amortization. $XX more but free Yes. cash if property-level after noted And million similar around sales payments. $XXX typically than amortization, we the in had year, $XX the noted also XXXX, not CapEx outparcels are to we And spend million. that between $XX We've dividend in $XXX as flow in term have that also on flow And we expecting you some approximately million, add million we have only

pretty out. should it balance much So

Christine McElroy

there terms that where of the sort of balance then Or that that? is line credit is anything you down? of do the left Okay. you Is any sort pay from of in with pay to Anything anything go dispositions credit over? do today? of line sort left of And down over,

Farzana Mitchell

Well, our credit -- speaking, years. of decline $XXX generally And year, debt it largely a balance came our considerable even reduced line disposition total by we debt had Yes. disposition and million, have proceeds from proceeds. in last the over the

will will also, because credit continue loan amortization making as are down. And will that bring term of payments. our that dispositions we down lines keep coming the So we have

Kathryn Reinsmidt

talked million Christy, on million about, I'd $XX our construction, also mention, loans Brookfield. projects major to some get do $XXX construction the our Farzana of that like we

be we using that well. but as swap, wouldn't we calculation that into sources. -- would goes construction So a It's debt-for-debt

Christine McElroy

your the sort NOI you've now got then Okay. use walk decline, the of you of think expect just the flat-to-up, that extent as taxable budgeting expense within or and a sort taxable Got through done that sounds but to payout. could just you. offset generate in like if dividend cancellation, REIT rules, about NOLs you the terms you of level income And Maybe us got interest your you've to it then income. to is maintaining

Farzana Mitchell

us that, and and that sorry. it dividend if are appropriate. we it is it adjustments we this that's we we quarter, income some We Cary Mall just Towne in losses $X.XXX next don't one, income But for do be that will will this generally taxable dividends, will it that. every much is walk pretty you taxable because -- I review to have really that to where projecting. that's think XXXX. complex tell a we is at calculation it would have be. appropriate follow where be as watch we don't we for Acadiana time, it make it we adjusted through But a like -- at But expect and of is Center. looked quarter our ahead and I will quarter This the or set the and part feel our for so to in XXXX $X.XXX, will It you


Tayo our And question with next from Jefferies. Okusanya comes

Omotayo Okusanya

your well to rents, all, retenanting $XX that's regards million. In loss as good just good of congrats and million First $X and on space, to all the refinancing the the with debt information progress there. provisions progress of as

it point. this from kind initial this of at the so your eats about about up half X bankruptcies of Just year, comments far that

or you you store If have a of H&M. tenants, to of closures some end of tenants do continue Ascena, your from situation in top have your a or and X where more XX liquidation weaker kind X of you up like then the and

guess $XX million about closing could is some $X it just million comfortable rent are bigger? talking get I is doing with You're risk Forever that you stores, range? And to modifications. XX how any there

Farzana Mitchell

mentioned We the bankruptcies all that have remarks. baked prepared in just my I in

So the we baked to $X information some up. comes that that and have all But far, use have are mentioned, for new million line now so us budgeted numbers, much $XX numbers. million open they top we bankruptcies pretty I of already is right them our into not the if

Omotayo Okusanya

$XX to million million $X the provision? is an additional So

Farzana Mitchell

correct. That's

Kathryn Reinsmidt

we the that Russe gross happen also -- to prorated only their mentioned space-by-space. $X if liquidation And for but tenant-by-tenant or exposure, whenever be rent would -- will outstanding had we budget that prorated we And do it liquidate, occur. it one million they that's where the we is annual be for obviously, Charlotte would

stores already closures budgeted some declines to So the or our have base rent budget. within are

full So it $X impact out million that reserve. wouldn't be that coming of

Omotayo Okusanya

the do you any if But that's numbers. your Okay. of liquidation those of have nodding bankruptcies,

of have correct? the close You loss you of into reserves, stores just a will kind the to expect eat liquidation right now,

Kathryn Reinsmidt

all, of Remembered, Well, we think, right, mean, the expect their any way, much locations X except of X pretty And had. Janie I Jack was all Things locations. Gymboree all most -- closed to I of close almost that if store not is them for, and

that So in. factored already was

Omotayo Okusanya

the Into numbers.

regards some your popular had stores little not about, have attract to is to That can in retailers starting your this just who are you again, know but just then with who helpful. of very your markets, redevelopment bit in a I talk really markets, a Okay. And projects? -- historically you within is question,

Stephen Lebovitz

Tayo, for and Thanks, congrats the Yes, recast and development. on thanks loan the your no.

combination really different alternative we're we've we're So And lot all I adding. with coming Winston-Salem be & different we're kind of got in transaction, of with we'll when like from e-tailers And the are to are uses, meeting a there of or a that uses of a and multifamily. is areas. then Chattanooga, those are entertainment in said, hotels with, of also, we're it's we will remarks, said I've in new, to and new new mixed-use, working and that is types able retail, a that market. my within users non-apparel open. number the uses, not-so-distant Buster's lot they adding names that like there discussions the And active Dave hopefully, that future. be But announce

stores working these that's So different entertainment our goal we're into use is everyone projects. more of food and and and with and department to new open-air really to closed the properties market is based the types -- almost transition to mixed-use


our And next Barclays. comes with question Linda from Tsai

Linda Tsai

that When see in closures and situation could similar impairments in resulted that Creek, a you is discussed there your in to models multiple the other portfolio 'XX? anchor Honey

Farzana Mitchell

will that center. process. properties other that have -- that left is this But a the quarter-by-quarter had I we We multiple they This know that impairment significantly mentioned at criteria. any two that point these properties impacted meet anchors the will don't were because

that moment, taken other this ones So these at X on. we have impairment

Linda Tsai

cotenancy and there X in lease example, reconciliation you then of item. of negative contribution, X, X.X% like lease And Can the modifications modifications like where categories in to on give you Page like percentage is terms a so same-store has Okay. versus impact, is couple for of breakdown us NOI, that that cotenancy. a the a X lump of

Kathryn Reinsmidt

able all to of further they best larger it's it one those Obviously, any but to we frangible, you those categories. kind because sense. going break estimate our Yes, be to made that's down than of little that, bucketed each bit together from we're not because Linda,

Stephen Lebovitz

first which now clarity have just to question. your good. is Sears, do Yes. mean, back I on we Linda, also,

are So, near are that the I staying department know mean, we least know closing. in at open stores We which term.

we've some looking. when year. And that are us of stores. comfort are so that this had lot several backfilling gives that different And department also, opening these a have couple opened, I in a opening, lot a said, we that So have we're I success think like

an all And on any pressure impairment properties so the point from will counter that of view.

Linda Tsai

projects? going busy. just more then like, plans finally, you any help to seems for plans XX guys like And redevelopment Sears do terms the Bon-Ton, hiring and to these Page support be it really looking of to XX at there in Are are to

Stephen Lebovitz

is short over active we But no. program. development a the new the pretty had, Well, answer years,

and like which we from back to goal G&A our is to expenses on our company redevelopments. But and track the And NOI managing like well. out and get cognizant we to busy. specialists, And is a there we're we taken do we're of that is and leasing, said, like it's everyone's as for we've up to manageable, what feel very so need really set team expertise because, to and we've redeployed also that feel this lot I steps and yes, reduce we year, our growth. it within it's said, in the -- really And and Farzana and redevelopment stability there working FFO return


And comes with Michael Mueller our question next JPMorgan. from

Michael Mueller

million that that run million it that annualized was mentioned. Was of $X a bankruptcies the And start the what's year to calendar tied gone that you $X as rate that about X away? hasn't amount? think Was was rent amount, XXXX in amount? currently you I an

Kathryn Reinsmidt

Yes, we'll annual that when for Sears. for not stores number, included it will those reserve. impact have gross impact the rent, to annual we close the our of see And really to guidance the base was prorated have -- so an final the what be. it's But in outside it's numbers

Farzana Mitchell

not. than conservative more have we That's So done. what


the And McElroy follow is Citi. with up from next a question Christy

Christine McElroy

couple of follow a Just up. quick

some that. just Creek on and you give Creek. Volusia, that with will Honey reduction lender, I maybe a Can Honey the loans? on, you're the of you involve Farzana, and color and said little on coupon think, wrote color Or a to bit coming us down realized you resolution in more Just those a more just I that extension

Farzana Mitchell

finish to our like information. give I you I'd any before negotiations

XX and conclude to is obviously hope let we'll know. underway. XX it days, So it next in We you to

Christine McElroy

Okay. Cary and And debt were Acadiana then can Center? Towne you what yields say the on

Farzana Mitchell

there -- holder. The purchaser lender a of note number or NOI months, note -- on managing so a lieu what giving the we went they in for been was today the was -- the Acadiana to know back it. a I is almost up it because note year, haven't it the deed when foreclosure a purchase to -- note of really, don't Not over ended we sold the and

NOI are aware the not what So we -- generally, was. what the NOI

sure they low. of debt very But pretty what so not say was is so I'm high, our for as that bought want -- was it yield debt, I to well. So course,

Christine McElroy

you commencement? then terms expect, XXXX the year continue commencement there, negative in the Would the spreads are that just of that and that on leasing? we on XXXX in XX.X%. Would as -- expect based go And hold you to lastly to out for Okay. that you do you the the through leasing, fill of kind

Stephen Lebovitz

going we of we lot We and Yes. that occupancy renewals. increase. A have the leasing involved get think did, of I stabilized the high had better. cost mean, sales it's an to

but And And It's so say environment the that -- it's think there'll XX%. go positive, I feel it'll was impacting like definitely think the progress. be negative we improved. optimistic we has to too probably


question is Burrows a from follow Caitlin Sachs. And Goldman the with next up

Caitlin Burrows

there net little I since an and conversations, it a And when other detail somebody the have guess, multiple shift more wondering, same-store? it give wondering, on is what amounts same that not is? idea income you the it tenant I I have was asked store, really included So about in to you could on is when you impact? was both rather together, of else income, just and than reimbursement consider

Farzana Mitchell

It's an Yes. a in basis, same-store not revenue item. impact. there the From be line still will

in can you way, it think that If top line. the of it's

comparable. in same-center reimbursements NOI, tenant and is the other. shift the Only So from apples-to-apples, aggregate category, shifted to and rents it's minimum the

Caitlin Burrows

it's it is And now? way on or details why the just any straightforward reasoning that is? Or

Farzana Mitchell

for that new change, and rule the a accounting reclassification. is standards the This change, that's reason

Kathryn Reinsmidt

revenue. Caitlin, it's non-leased related that's revenue

the... So for by it's locations that owned like are

Farzana Mitchell

Others. Yes.

Farzana Mitchell

that's income. have offers That them move they to like comes reimbursement [Indiscernible] change. things you other. other pull related then And to not the and us branding out into moves And into for and advertising tenant other that, the and out income, of like rents CAM, leases. pay that's if


from St. question And the comes next Haendel

Mizuho. with Juste

Haendel St. Juste

hoping Steve, of closures, on I earlier some store an spreads, Does for statement? expected for me. guess, you expectation A And color make you same-store statement if elaborate was on you Maybe gives stabilization some what that XXXX. that couple in to comment ones I confidence leasing that. NOI? made the could quick reflect improved of so,

Stephen Lebovitz

I'd say it's couple Sure. a things. of

budgeting early year, be with I just until lot And then leasing the and, it to a now just retailers, will continue and -- through But impact, general looking of is going XXXX the overly out. off, we're and sense be can year and that to that to we progress that then but position don't stores, like department from of feel in backfilling process so optimistic. do of of all, we'll And First wildcards we've now, we're a combination variables to we'll the burn it really the in cotenancy discussions a at we and do make, from about is in play been between where go we be that want better come of optimism. XXXX. won't is drives that a there guidance talk obviously, doing it have into

Haendel St. Juste

Got it. Got it.

caused Okay. And have cost first, hurdles do And higher projects? has you're you redevelopment for your that projects wondering, starting? any higher I delay considering of impacting might I'm guess, days? then hurdles I'm curious, underwriting be these your capital you to how return or postpone

Stephen Lebovitz

I spending have looked no where definitely at -- dozen we said, money. We've we're redevelopment projects. or a little Like hard Yes. our that

ones using reduce team cost there that sure a to for and we're to backfill our that as is the And So so and challenged strategy, the investment -- We limiting where we've want the it's or levels, redevelopment the to to where creative been we value. possible. cost the up accretive looked see asset on to capital. we be we've gone to setting rent without has success. we're construction the can And we challenge back do pressure users make

very that important to just top us precious be dollar our as is. -- But that's something for definitely at of is every performance. we look realistic So how is mind it's in


Lebovitz this Stephen over turn the And the conference closing would back for to concludes question-and-answer I like session. to remarks. any

Stephen Lebovitz

and to participation forward your seeing Thanks. shortly. you future Thank talking you today, to you or we look for the everyone in


attending The for conference concluded. you has Thank today's now presentation.

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