CBL& Associates Properties (CBL) 1 Aug 192019 Q2 Earnings call transcript

Good day and welcome to the CBL Properties Second Quarter Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Katie Reinsmidt. Please go ahead.

morning. good and you Thank

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

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

Katie, everyone. morning, good Thank and you,

our to we results strategic As are at execute stabilize operating major on have said, redevelopment our and CBL our program. priorities

base. from centers a malls market town to our with transforming closed properties tenant diverse dominant are based apparel and traditional We more suburban

that guidance pressure the maintaining keep these company resilience from a to proud goals. successful. creatively restructurings. on our This strong determination to work of to year progress despite Our second same-center importantly, way, Most come Despite towards unbudgeted offset ongoing losses. team revenue our the and by hard quarter we am the of sources new results this income credit to have find is retailer the challenges our important CBL are the for I NOI showed and

encouraging also redevelopment second primary we capital improved over progress the while redevelopment during great on productively. efficiently program free our lease utilizing our this with significant showed strong metrics increase and of We our funding million. source a on and spreads. progress And program are cash flow sales key making $XXX quarter for is The

in our outlined per for release, quarter As earnings FFO was adjusted share the $X.XX.

completing ground to of in completed to sales not are gain down which Portfolio NOI lower to lease continues sales guidance performance more sales partially was the operational lower be due for guidance year, outparcel expectations, year. Same-center is is outparcel FFO for on certain dilution due While from with and our adjusting versus the well than recently the timing quarter annual primarily dispositions for line and range. pad announced shift gains. anticipated guidance for which The as X.X% current we This the better expectation sales is to X.X% deals a XXXX. were in in included and

XXXX to loss store year we lower the of income trend experienced half back the anticipate a bankruptcy we full from However, as closures. related

Point capital attractively the the approximately Year-to-date as been per continuing head We've quarter the XX sale As we months opportunities Since to $XXX $XX.X gross to and million. we our at active have from decline when increase or transaction available investing. cash Courtyard we into free is Shoppes million for raise Marriott $XX.X Illinois sequential of The take supplement Mississippi a at season. center priced advantage which trend our back-to-school close assets. Sales for to liquidity expected source square occupancy Forum we XXX outbuilding non-core a and same mall we of see in for front of flow multi-tenanted announced encouraging to completed an on in at by a Chesapeake these This X% mall The asset Forsyth, Virginia for Center million the for our rolling basis is is Madison, which sales, experienced result foot. for community bringing Point of in office closures, Pearland last The second an points. a an $XX,XXX,XXX in $X.X Hickory Grandview, at Hotel sales Hickory generated additional $XXX healthy Town . building reporting, million. in An

$XX.X assumption own our XX% reached for for also the in Each sale transaction after have The JV including Paso a an Outlet interest existing debt. agreement the the is of XX% El of to We million partner at will Shoppes partner finalized.

to disposition utilizing fund flow overall redevelopment with our leverage. along are reduce and proceeds cash free efforts We

for XX redevelopment revenue Each locations anchored stabilize dozen we've open it's the committed. replacements its as in unique, that spoken you'll the the to properties closures under Listed reverse of meaningful these negative trends. is are strategy. critical two recently soon and possible analysis or construction of thorough projects involves to determine supplemental, earnings a most release and place tenants either With and have see, with experienced, the as market in we

multiple Our to from teams, our success estate. of speaks leasing our to and creativity the capture strength the our the real of ways locations, redevelopment value

our reflecting to and and mall total traffic leasing sales. mall been also energize this leasing has new projects are apparel, non assets of adding to focus. of mixed as on drive components our use XX% these year we offerings and Overall, this focused new XX% diversify We

in We agreements centers, two structures. uses. facilities, possible, stretch required fitness through minimizing two or we entertainment under have Where four we hotels, uses, nine negotiation currently are our the construction, properties. or dollars joint and restaurants, XX medical projects, two other XX including redevelopments self-storage number six sales, our are a executed, multifamily grocers in casinos, leases investments This pad to active ground us of non-retail allows are transform as venture on operators, three

million. accretive uses our anchor in replacements across investment under cash dozen our a There pipeline, $X required numerous than our capital structure. more have are where for We five is

However, liquidity to operate our we priority. maintaining believe, that fund business and redevelopments remain maximum our should

manage we last also working are quarter, mentioned As G&A. proactively to I

We have reduced and have expense litigation. other today steps executives offset ongoing savings to have higher taken amounts due for been to Unfortunately and salary legal cost officers, efficiencies. with achieve bonus and

a During and of number law and defend seeking were they into the derivative including one believe are We ourselves lawsuits have quarter, consolidated dismissal. shareholder suits will been filed. shareholder without merit Shareholder suit. --

of also We have types suits our put notice. carriers for coverage insurance and on maintain these

turn fourth to our Katie indicated level will we operating and our reviewing investment to call to determine as XXXX in activity. income be March, for the dividend results in over Finally, discuss projections will year. I the now quarter the we taxable next

Thank you, Stephen.

indicate, As the had productive in we results quarter a respects. many

including feet average declined leases the leasing at we than leases total and of and X.X% over were new signed Our new leasing XXX,XXX XXX,XXX almost basis at and second the renewal new of gross XXX,XXX completed signed square of renewal for renewals. feet average of stabilized same-space leasing XXX,XXX feet of an feet decline square quarter, comparable rent square malls team for On square rents. an on of X.X%. X.X% activity, leases a Spreads expiring lower

demonstrate a quarters. improvement from significant results quarter's past recent This

given maintain environment. we year encouraging, this the for the challenging remainder While cautious a the retail of is expectation

a As store down from year bankruptcy occupancy basis the second point store XX.X% centers. Payless, We including announced to quarter feet resulting closures bore improvements or occur and by QX XXX XXX basis In expected locations. year-end Gymboree liquidate square reduced closures second XX for approximately during center decline Barn occupancy basis points offset for mall mall Dress our XX is XXX,XXX points, declined last July, occupancy Chains. to Ascena quarter May, Bankruptcy Charlotte were same Russe. the of filed XX.X%. Portfolio brunt in they by quarter. and retail anticipated, anticipate related from Charlie in community the shutting to bankruptcy to occupancy closures, third their base and Charming at that closures

with XX the have the rent. the $XXX,XXX Sales and family for XX-months later three open this center XX,XXX vacant electronics, for feet the positive year. representing square months, with quarter foot compared We're sales back-to-school Same $XXX for committed, dining, replacing $XXX encouraging anchors including season. We that X.X% locations to to increased annual prior in sales all Categories which bringing casual per trailing well and square progress were fast into eight cosmetics year. great locations making dozen wellness. included set is two and children's shoes, six leading already performed another gross open

active Beyond for several this, we or have negotiations LOIs others.

At becoming destination locations shopping with their not in are service, but dining, go-to-place we markets, more. schedule are and of Consistent lodging only the for major full the provided new Sears a and prior foot in entertainment, the quarters, properties BonTon Friendly replaced Our favorite freestanding walk through Carolina portfolio our a well supplemental. in North I'll as fitness openings. several projects XX,XXX the as in recent Greensboro, restaurant. a of OX square former the Center

replaced user downsizing At our main opening Laredo, we that of also self-storage equity. Forever In former a in mall project we junior Square our at apparel with We grand outside Norte with construction parcel opened Sears land and an wing. the [ph]. new XXXX. on is opening May. Brookfield shop Wisconsin. location the at XXXX. are Texas. the road venture Del celebrated on in previous in early space we department joint year, in opening facility contributed projects and recently store redeveloped Mall Beaumont & expected is a opening The ring a in Fit] we'll Earlier fall, Parkdale the Hanes the storage Mall Milwaukee, of entertainment early The at this event near We in Texas, the started Winston-Salem similar the This Dave XX celebrate [To Buster's in to Sears in structure

the walkway. Sears has will includes pad lot on entertainment commenced city and connect and first in convention which and phase the the to through new opened a hotel new the parking Uncle Outback owned landscaped already by of former Tavern WhirlyBall Steakhouse. center has Julio's center construction The Theatres, center, Movie on our project Marcus a

Buster's, Goods, well-regarded joint is and. space, The venture additional all a with on and a being office Construction in a Place Chattanooga. Lost Factory, last The boutique here includes of the & as Hamilton We A redevelopment. in the December. redevelopment Dick's developed Sears Dave progressing medical hotel studio office operator. Hotel, fitness restaurants project Sporting local Cheesecake at part are also adding which opened is joining

as us in to We our future land allows our assets will to of the upside. equity, from portion realize value contribute and share which

XXXX. in At open it the Minot, in in The joint have in Regulatory approvals of former replacements Square at the Ross with Home We are At property, former owned locations venture vacant and York Entertainment the is will Pennsylvania. add value Dress to band former is Kentucky additional Tilt opened new anchor begin the Herbergers to Home At Illinois. taking Rockford, Sears portion on Westmoreland the XX/XX casinos Center, expect series this have malls in a early underway new lease Mall this which store construction Mall retailers taking operator investment. at for and to under in casino in We under Sears, a stadium CherryVale in Bon-Ton former replace until town both, executed Galleria to Choice York later our this replaced a is in Dakota Oaks minimal Elder-Beerman is was Bon-Ton commence a location. we Seritage both later we required We expected Pennsylvania. that Burlington with Opening at anticipated negotiation. opened lost we portion opening Kentucky, a XXXX. National a construction These Mall, is casino construction and at two live late which with the Goods property. anticipated and Dakota former location. with of year Less, later North Ross this former for year. Paducah, year openings replace in XXXX Sears. Penn location

discuss deals In have and through, addition I've announcements the and activity to now LOI financial walked stages anchor our and we'll the as I’ll call progress. over a to in just replacements Farzana results. make negotiation that turn to lot we redevelopments activity of

Katie. you, Thank

of flow. cash our free non-core as We key dispositions on with liquidity continue to such financial be maintaining goals reducing focused and our leverage. other Supplementing sources

loan major We our for are pleased addressed XXXX. that we have maturities

refinancing center, a the phase have to secured outlet $X.X million prior we of Atlanta loan We yearend. anticipate by our that second

discussions with Greensboro We Point. two restructured we loans with December, These the the were next mature Mall in loans that and step. and in lender also to determine have previously Hickory are secured the lenders

debt but As this most Refinancing mature of properties our a result in yields preliminary, we non-recourse strong turned high of markets. secured, attention have these progress, and loans have in are to their discussions XXXX. positions that

avenues address we financing available we secured maturities. the selective, exploring While market are several these to that is have

June share at Our $X.X end the debt of total pro of was billion. rata XXXX

from We the the $XXX have we levels available reduced on million June and second lines $XX XXXX. At by sequentially had quarter, to million credit. our our $XXX debt million draw of end of

share partial share lower $X.XX share, variance of share legal per sales litigation legal included $X.XX sales. for Second was -- Factors in from G&A of on a compared the quarter NOI fees gains the $X.XX second for included per share the with approximately of representing current $X.XX $X.XX property level asset expense our and for dilution per FFO $X.XX per per quarter expense. adjusted quarter to $X.XX contributed lower decline that XXXX.

X.X%. NOI Second the same-center decreased for declined month quarter X.X% and same-center NOI six

Forum future with shortened we Grandview the The encumbered impairment likely the impairment. $X.X NOI Mall the Mall April Cincinnati, in a has a has mall an recognized period The a Ohio. and sale number XXXX. nonrecourse This Eastgate mortgage matures whole by million projecting the at been by on in tenant impairment of we NOI are of is bankruptcies, quarter, Tier significant for and the the necessitated coupled million impacted X During in decline million loan, $XX.X that in decline $XX.X on property.

FFO our dilution to in revising from guidance partial as expectation yesterday, sales. on lower disposition are adjusted our approximately per announced as announced share closed full for well or we XXXX earnings year As per incorporate gains recent, we $X.XX release $X.XX share for

a included expense much the – G&A second both the has year, which been quarter. to higher penny booked also related has of for have litigation in We of

As $XX to a million. guidance decline range to the reserve providing a result, $X.XX incorporate in updated X.XX% quarters of first continues of $X adjusted $X.XX share range three which and Guidance we are that of seven year FFO same-center to the percent. to continues in per the assume in range to NOI million

the to used As well to reserves. the approximately other are this of that reminder, Incorporating impact and reserve utilize reductions, filings Charming a from recent to unbudgeted co-tenancy closures, currently as $XX $X as the consideration we bankruptcy, store expecting is to budget, take million Charlie million occur. into variance rent may of

We will Stephen our reserve turn to quarter. expected concluding update each the I'll call not for usage over remarks.

Thank you Farzana.

goals redeveloping remarks, we in focused are our of and stabilizing anchors. said I income intro on major As my vacant

to assure to transforming and team, we you property's company, maintain properties is immediate. industry our Our property teams entire CBL our wish market the these and in dominance we organization can in all and for status. are more the our I that adapting goals. We our including and executive believe accomplish staff home results while is strategy, office

time the and we the Thank confident these on are and in benefits for We will see are operational leasing right the from redevelopment efforts near track term. your you today.

We will to the now questions. open call

Citi. Please answer question of McElroy line begin the Christy session. is ahead. now [Operator go the the will And from We first of question Instructions]

Hi. Good morning everyone.

impacted where are term by your leases? or longer backfilling shorter right bankruptcies shop be year that around the be for the your needs leasing in year-end you the regard been done temp earlier permanent to leases of term for are what space terms Just space XXXX? in that's to versus by space of vacant that now percentage And retenanted to with assumptions assumptions

the all of Christy, quarter. those I in in of the closed second we're mean stores most process. the early Gymboree, Payless,

got just we So the back. space

leasing XXXX. started will to of the We to completed of have majority that backfill users and year on it that working some be filled end, by have in fill should space temporary but the

the So bit in little it's process, a early

Or into built of currently closures your anything we've retailer incremental million to use be reserve? there's other malls is and some your that wondering would that of and I'm then, that working downsizing if regard with relief. stores that heard million Forever Okay. with to expectations anything on expect you XX X to rent happening sort XX with to the XX landlords that? And

I'd for mean Yes. there. XX happen regarding lot them But as built conversations. there's the a out amount Forever about can't know. what I uncertainty of on say having what's comment based there going the Forever specifics we been with them. to out have in But small a reports have, Sure. still to reports I And on are there XX as we reserve far that.

it watching to We're something we're as let them. talking everyone so closely. as And And know know. we would definitely soon we

Okay. Thank you.

Christy. Thanks,

go The is Craig America. ahead. of of Please next Bank of question from the line Schmidt

you. Thank

densifications. pool You some this mixed is XX anchor wonder had future for use if mentioned would pool that that potential is replacement there come was of altogether? or another out I the

part we're of densification, not. it’s actually projects. that doing of wouldn't I doing it's -- several say as vertical So we're the

locations mostly convention Our project the the lots we [ph] more past, and in getting parking. had of Brookfield but Square are Sears hotel, productivity a construction. the city at that's center [sold] are -- out was the that we under lot and former to suburban, build to than a parking We land

also a we parking. we're doing We considering. of use we're And outparcels in We're interest that office or it. restaurants fitness. other doing have part have we from couple form -- created as from interests And medical mix

a of we that part supermarket. use in education to replace project Another did former

front lot is of Place Hamilton there's hotel a in Buster's project. and So, mall We're Dave a going. new adjacent between new where new a Cheesecake here Chattanooga the where built doing of coming entrance right really the we to in to kinds the and the uses just &

outparcels other we've have We created.

real the -- way create to piece project parking the we're to getting lots from is looking we're at, other in a to And as maximize estate. every productivity of so, value and it every identify everything definitely looking at

lot need that? stand be with of do to approvals on then and where there you that And a these permitting is reviews

municipality. depends mean everywhere. go the on I It that we through

more Madison It's a is through others Some process it Wisconsin. strict in But Chattanooga. more we go than are than of it. in

relationships or succeed; about employers, large have much the of more the and large good help [ph] to out. Square. financing. ways also tax to cities was I towns Brookfield we’re taxpayers want we’re and We flexible land. with that talking helped terms bought time us properties in with they've finding gotten over [increment] they municipalities They and They

partner our process. of So they're our ally, are as an this not part and adversary they

Thank you.

Thanks Craig.

next of The Caitlin Burrows is Sachs. the line Please of go question ahead. from Goldman

you of I that other think initial creative morning team. remarks some with to offset revenue were Steven, sources losses. prepared Good Hi. some mentioned forward moving in exploring you or your

So us you that had wondering if made comment? I in was might could that have examples you give any mind you when

Sure. Well, a happened we the in we're lot I of I Katie mean second -- have have the think quarter. revenue, bankruptcies as mentioned

types And is those business area, lot our the other a which the leasing and sources other on that non and space users manage retail that term the basis come a and of local in call occupying a that are do a we as so specialty lot holidays. how of advertising as development to revenue. looked with we of lot there's main what have And a We've areas boutiques, possible. of common at expenses short closely are and through

So, just revenue. to uses staff with find And and regionals of out a and leasing. -- working leasing and basis. source closely it's any lot our is scouring national and is it's a locals approach every non retail we're a our a different lot leasing of for done our portfolio of on looking there taking and brokers to taking And

in gains versus of then the some adjustment terms leases sales. outparcel And to it. fewer more due of ground it just was for guidance Got

decision NOI longer of CBL to sales. else? go wondering maybe impact you Kind was or retention to ownership the the do in through something or term I So versus what could leases ground if is

Yes. I'll question. that take

rates. ground those selling income stable you leases us. outparcels in for -- is opportunity converting And as our And versus leasing valuation term ground vacant tremendous seeing are also long know taking We strong, pretty it. leasing it and low provides for cap the ground

versus directly. opting it So ground more for we selling leases are

main would diverse selling cases we those many does uses because to flow our who they diversity the us reason so our in owning it that you buy prefer and certainly it Now property. the building the know not will more diversity want because the us only strong. leasing and to but for really are to users or cases it land and process our cash And those That's bring valuation shifting bring may strategy ground are in more. also

it. Thanks. Got

you. Thank

the is ahead. Hill Richard go The next Stanley. at from question of Morgan Please line

Hey. guys. was to Good down the just thinking about debt a see Eastgate, I morning Wanted yield surprised bit little your writedown looks drill just overall. high. to maybe portfolio

to in past. You've talked the it adding about storage

added some. You've

back bought You before. there boxes

is. prepared like And gives maybe How seems appreciate questions. guess turns buying can you than I have developments decline? use Eastgate when or you're doing mix is fast different remarks that other the back I similar fast While NOI it How a two Mall property properties boxes? confidence where I like Eastgate what

a main evaluate decline tenants, Rich. -- that's is in Hi, I not of income the boxes. from Eastgate did And and -- have just you're We Eastgate, self-storage of the potentially mean, big one corner. net we right. see did just is we operating at coming collateral. but then only a the do income we also -- part not Yes, maturity that the the around net reasons is there's operating bank do

at look to a collateral. what's and happen collateral to alone going evaluate as have you that So the NOI to

seen main NOI now So shortened. one period the that's The And a big the whole decline. reasons. of is has

this whole also proposal. we property have but not the maybe from evaluate what's and we to evaluate So restructure returned basis probability What's the lender, period. a the to GAAP necessarily, a

So will value the will two the determine the of what be. combination future

comparison in when or to impairment whether gives your have appraisal. value, an conduct tells you you that And an future have a not. conduct we an value appraisal book to us fair value us So,

properties cash we Mall all is are all property reason to impairment. flow or that those. this at we decision a Eastgate has impairment property what And drove took the So one along is of the an we evaluate future that's the take ongoing evaluate it whether every seeing income deterioration we whether quarter. But the strong this of our

it. Got

primarily It hindsight I understand think a like forthcoming by I XXXX. loan So, that driven being sounds maturity.

bought wouldn't the have maybe back done have the or wouldn't to box. probably You done storage and deal

what those I So Eastgate. at that was color offline. But malls discuss arms that the you're what on is trying similar different. get appreciate current if what malls, what strategy can I executing around to my -- makes we

But let each me it a Yes. in great a development the just that add that. alone we us will of as that the there's market itself strong monetize and standalone -- give valuation And for is self-storage the future.

So that's a then we collateral. good back the not of And project in buy part itself. that's if box a

However, believe that the a that collateral buy valuation. strong we back do we has

So, we were were – don't believe decisions not they either good both decisions. those one were decisions of good -- all

Okay. Got it.

you, Helpful. Okay. guys. Thank

from is question of JPMorgan. of next line Michael go Please ahead. Mueller The the

that. about Yes. Sorry

Just you wondering the again in the just to can about once and level? board pay dividend in coming how terms thinking the is start months a it of

of year to address So, we and of have income we year. get like a closer going we're sense this where the that better a to of sense the I we're to question up end end really going said, Michael, as taxable when a it's better

we're discussions. hold now those on on for just So,

that at Okay. of I would sense I component? guess. be as there sort of then the the opposed any apologize to it I a a call beginning stock cash dividend is missed still And that though

we look is, can I say at everything. We look alternatives. at All

much pay. we And consider how of part we decision pay it would of so, we we how would as the

the cap And year us you to-date can dispositions rate? a on ballpark Okay. give

its each cap my own and had obviously mean, merits own rate. its transaction I Yes.

on So, community and say, the in I that other assets seeing would some we're centers of sold. pricing we good the

were disclose rates equity cap dispositions. all don't raise we they very So the attractive across to board. for the But

Thank it. you. was That Okay.

Thanks.

question Caitlin follow-up Sachs. Burrows Goldman We have a of from

again. Hi,

outlook terms in one Just of NOI this rest for the year. store same the of

you half than first at to a second it half seems bit the expectation. If the held better look up have little

the pieces half point just So at general versus extent what known is to and second expectation conservatism? this it driving what's wondering

because renewal new those. And we a spreads the year. it’s and are were I be leasing be being projections. to there's users mean, going And rent doing the leasing the want and terms were we're We negatives we fourth going retailers to of bankruptcies we to-date, doing sources. from non-apparel within And down or third non-retail that helps and activity or the so better. be everything kick negative we're on in year a going lot like is gave be the of board guidance plenty to going for I and where are we whether and a which confident we'll But there mean But the and to which feel mean, bogged lease long that But or strongly. it's I good three confident that lot the of in are we're to for we'll we we the year. with And up, the be rest with successful we're time and within of a quarter these realistic that spend the evaluating Sales going still performance sure. across of of going five leasing it's its range. a percentage categories the full helped lot half see are performing to in that's five are And we're weaker on. tend for are range yes, term. bankruptcies. there get all

spread improvement actually in leasing up Got since side. looks on that was did it the there Yes, you bring an quarter. it it. this maybe And like

to just leases in continuing, the commentary see So it -- I that's was on sustainable? quarter? do think that that. guess related you Or I guess other perhaps, the Any you

have renewals. I it's first Yes. mean, always quarter hard the we one mean I most the typically quarter.

deals for tough spreads overall weaker and are this a as by that that that. year quarter strength climate of of our impacted retail large So have of mean, I the the sample. this with and kind And didn't sure portfolio was

range. be and that stay kind single going I'm we kind range to in said of see what and and year. year opposed stay we sure negative better this hopefully as of the the of cautious first -- hope as quarter, we so in digits in We've just we're to rest not that the it'll as good last think be I saw to the want towards quarter the saw it hopefully be it'll than be it'll we we're to in but what going is.

it. Got

Thanks. Okay.

Thank you, Caitlin.

Please is Linda ahead. of line Tsai next the The from question Barclays. go of

Hi. in lower X.X% from productivity [ph] You're sales year-over-year out of just Could the up XXX period? comment flushing on growth out with the you current to tenants productivity? sales

the that And mean, American helping Foot out. retailers trend. portfolio, part some is Barn our some But some is Locker of are who's the I & we Eagle, I sales that in did No. growing report. it. there look Body, and that's casual. White did and some a see and categories strong are at Vans to are always important us well. doing of Chick-fil-A gains fast Candle Bath really

some So, across that categories weak. we've portfolio and up. were performers And showing really got the some that's the strong then of

of and senior brands Loft these so some that's definitely have and Some especially Taylor progress, Ann seen good.

the of better in or some And having like even down users Justice that Ascena were performance. more

It's have some say we're subtraction by stores. seeing – retailers where the of that closed I'd gone lose some good I not addition just So, that improvement. mean, we have

saying. it's that say what That's fair from largely it's So you're organic growth. coming to

is than And correct. it a quarter to of second the heading as it year. half That's the – stronger the for which was sign quarter than quarter first was second good stronger we

have your to-date portfolio then on sales And the on could a away then average tenants in the you of productivity basis? Yes. gone comment on that year

exact smaller I is of mean, generalize, their sales versus it and I more driven our to -- that can't things by impacted bad. mean, you balance that statistics know spaces of say. a but performance, you really the sheets A were their wasn't them mean bankruptcy to give lot that sales I wasn't results. and something lot I productivity so their it's remembered were hard overall

that. for Thanks

Thank you.

our This concludes question for to the remarks. Lebovitz I and turn like Stephen back closing any over to session. conference would

discussions met participating to Sure. strategy. make good you Thank and Thank look you our we have you. to you forward we'll progress summer a rest with this on we -- Hope everyone for today. as continue

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

You disconnect. may now