CBL& Associates Properties (CBL)

Kathryn Reinsmidt EVP & CIO
Stephen Lebovitz CEO & Director
Farzana Mitchell EVP, Treasurer & CFO
Christine McElroy Citigroup
Todd Thomas KeyBanc Capital Markets
Craig Schmidt Bank of America Merrill Lynch
Richard Hill Morgan Stanley
Caitlin Burrows Goldman Sachs Group
Haendel St. Juste Mizuho
Michael Mueller JPMorgan Chase & Co.
Michael Bilerman Citigroup
Call transcript
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Good day, and welcome to the CBI Properties third 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.

Kathryn Reinsmidt

morning. good and you, Thank

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

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

Stephen Lebovitz

and everyone. you, morning, good Thank Katie,

quarter This featured several notable CBL. accomplishments for

sheet. are properties for our transforming long-term said goals strengthening have strategic I and our primary As balance our previously, success

the openings replacement from tangible the now projects. are program we of celebrating results seeing redevelopment anchor of We as are first wave our the

new a diverse prime was Brookfield X grow stabilize complex. or weeks entertainment-driven, in celebrate these was case, are brand-new example they centers, successfully spaces, anchors committed. Sears uses grand the our either a construction, the to for unproductive to this sourced under of a is and new are We redeveloped we replacements and and are Brookfield our Whirlyball to dining entertainment add mixed-use at me for how which have Milwaukee do It Tavern Theatre into proud Not the transforming Marcus projects and ago only Square revenues. highlight anchor that Movie across Square open, we In project. also opening by XX experience portfolio. of bustling

We entertainment, successful mixed retail with together are and other bringing restaurants, fitness, uses.

creating been are which and restaurants, center, will lots underutilized value office, will the results, from Based initial well We great city-owned traffic. the in on parking additional medical received market success. Convention project be with has the drive the and Hotel new a

the me the Wisconsin, restaurants our which that of as quarter, as to space construction construction assets. The office example spring. day-to-day under of at in to track center. Dave for taking part the on project, key former is Goods Sporting Hamilton the added commitments of for the anchor to open have here well, of self-storage on place started ventures, joint are and Sears the and recently project, watching redevelopment progress Aloft both we & well at and Another are Chattanooga. highlight Buster's Dick's and next be Hotels in plans which great additional the our of Boston addition including Von vision Towne and for We a new store will West list this future replacements Maur Madison, several another of

to capital point locations our third-party by We to are of program. redevelopment is redevelopments. with of to acquired plans great a venture us future delivering at while projects, complete a third-party view, under to allowing are from projects. using other joint be further This the our contract outcome transformational also developer partnerships same to and to Three allocate Sears-owned retain time our

how another value our our on from assets are ventures capital. we joint hotel and and return are maximizing realizing self-storage example Our of successfully

projects, stable and XX construction, entertainment including base leasing, under have overall Overall, multifamily nonretail uses are are hotels, project. including several tenant active interest. restaurants, has more uses the nonapparel. agreements are mixed at leasing XX% XX% base, self-storage X in diversifying traffic The total X new and medical mall of We year, are our of is centers, casinos, centers, XX X we this new been fitness this X These of facilities, our on operations, and drive executed existing properties our complement uses mall currently strengthen and X negotiation provide driving or revenues. and the a renewals focus, nonretail our to uses. other properties Adding uses, strong will locations of which X another market-dominant

release, the for in down with outlined quarter year. NOI, the $X.XX X.X% was for same X.X% the share earnings As for our quarter adjusted portfolio and FFO center per

We firm store are the closings, the NOI, restructurings. with decrease not be bankruptcies, and in the from but to hit range, of we our guidance and pleased to to high-end faced on challenges we are satisfied have retailer FFO mid- track despite

metrics. foot. occupancy in on trend operating quarter for important Sales basis $XXX seeing sequentially. Portfolio points positive X.X square are certain built per XX a third previous to We improvements increased increased the with the

However, year-over-year the to impact decline of bankruptcy-related XX.X%. store closings caused a XXX-basis-point

innovative users through our leasing and local specialty our while adding leasing to on works shop bring programs, are longer-term and We pop-up users.

replacements. as make XX% increasing strong, were spreads progress these we leasing New on

fund at strategies utilizing is year with estimated loans construction this to on free $XXX We this equity projects various redevelopment balance projects. bolster We're on are select cash and sheet. flow, and our the to joint million supplementing which venture also focused

is liquidity Another $XXX and reduction for year proceeds, million which redevelopment source of to date. totaled debt has both disposition

we items. by touch highly respected Exeter Ashner, Capital on a it industry. I led additional This want veteran real with estate hand in the Before over Michael I to agreement Katie, morning, announced an to two

well as Tiffany of Carolyn Directors. Michael our joining part as the of As agreement, Board are

opportunity to with our public operations, and a add Carolyn asset with been committees. this time the the stated as the we will with shareholders. interest, believe announcement focused all open compensation these years, are our the are As be have board shareholders example Michael than had We've on alignment and and is CBL. to and in as we to many engaged next which more experience an XX common join will Michael management a fresh the in represents that discussions. With this. strong audit largest CBL's management real significant unlocking perspective experience see company, one Carolyn a our in value and has financial we well bring and nearly of X% our investment, of of will interest value amount this to companies we years committees. there's of background of substantial estate Her times commercial always morning and and latest over spend ownership

Many and also estate and a you to will be serve will I We establishing -- perspective value. chair. advisory that be plans plans, of Richard, that capital-allocation will committee an are Michael will help further with familiar committee the given capital already to in new more have committee. Board, Richard members are his and no strategies, real banking This than committee strengthen career our and may doubt of Lieb XX-year also as reviewing investment the CBL financial maximize ideas our Michael's finance. commitments. I and

and We contributions. forward to and their Carolyn, Michael are welcome look pleased both to

the prior our year-end taxable earnings for in income we and announce determine to reviewing to release, projections policy Finally, XXXX. as will dividend stated be our

discuss more will dividend, for executing As preserving we for pay required to ultimately we this our minimum analysis complete. if provide stated, to which create shareholders. any, to operating us our investment our distribute corporate is more are once the in over use common information strategy, expect time, to flow allow value taxable projections I and we in our turn priority this broader cash call now we'll At is income. mind, With the and still activity. Katie results reviewing to will

Kathryn Reinsmidt

Stephen. you, Thank

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

same-space XXX,XXX team quarter, feet renewal of closures, at leasing average Portfolio including in rent activity, basis average the of the XXX and renewals. increased period. Charming and were of Charlie compared feet Same-center leasing Gymboree, renewal for On closures with to square XX.X% of square than by stabilized gross lower to impacted XXX XX%, occupancy XXX quarter an points or bankruptcy-related at rent. decline approximately year square third malls reduced spreads occupancy feet prior Ruse. points by new to XX%, new XX.X% a completed leases and from X.X%, declining an mall signed XXX,XXX continues Our for mall store leases expiring be on of Charlotte closures XXX,XXX signed points third the square basis basis approximately store feet Payless, declined including XXX,XXX and XX.X%. Bankruptcy-related we new total leasing XXX,XXX occupancy square of comparable feet, basis leases

has in widely filed Forever XX As publicized, bankruptcy for October. been

the most, and our this impact if approximately $X.X million representing reductions gross Maternity stores rent Chapter open. anticipate We've any remain in Destination incorporated XX XX stores have guidance we also all, will October. that not annual We filed of for year. in rent, in

representing in pending. million We gross is approximately currently, rent, the have $X still stores, annual closures anticipate store plan we X bankruptcy that XX and

shoes same-center per year. compared back-to-school had casual tax-free healthy prior children's We sales we we in and are almost date to $X.XX square for for Across sales that $X.XX foot the quarter for portfolio, trailing are X.X%, XX-month to encouraged increased the bringing strong the sales with the a well goods. dining, With include that well electronics, and holiday fast up performed year positioned family sales season. for Categories weekends. X%, sporting traffic

new across our and portfolio exciting well of openings anchor drive a traffic. that lot a of store additional have planned as We will number events as

months. Our on a X negotiations next open progress few open remaining anchor made locations the are others. replacement the making for And within spaces and several committed, progress XX dozen including set with LOIs program we active to already great or with another the has

underway recent but schedule find can a of complete updates. supplemental, a projects I'll the touch on in our few You

entertainment celebrated includes just Steakhouse by Brookfield is year. Hotel new which in and center, Marcus the new Stephen Construction As The Milwaukee, Convention progressing Uncle we the on Sears opening at Outback Square Theatres. Wisconsin. city-owned center, project next open mentioned, grand Whirlyball Julio's. the of Movie and will the redeveloped Tavern

medical December. Texas, to a main space, the our progressing part our redevelopment. The opening in Place event which developed We we'll and upside. del & of We an from includes Hotels, is on and allows last Factory, Fitness the us Buster's, is The office Goods, contributed in Construction joint future equity, hotel operator. of early share XXXX. we Forever being restaurants all well-regarded portion Laredo, our a in downsized project which local have at Norte here adding is Cheesecake At Mall studio, office the Dick's venture XX value of land Hamilton XX-XX and opened opened Aloft the realize with as joining and Sporting as Chattanooga. additional assets Dave and redevelopment our entertainment Orangetheory be series in

And Place. this a also parcel structure is early a The land construction joint and started outside contributed projects, a opening on is We the similar project storage recently Hamilton previous expected facility we equity. self-storage Road Ring our in our on venture to XXXX. the as at

casinos opening will to At At Regulatory former approvals At XXXX. open are store. commenced York the has two in Pennsylvania. an mid-October have at a BonTon the Mall, Ross opened Oaks malls Burlington Kentucky, opened joint XXXX. anticipated in XX-XX in Sears the taking Sears. in Gaming will our expected with Construction HomeGoods an in Seritage-formed the a location. of Stadium replace will underway. anchor in locations property, Penn opening be We -- in Pennsylvania, Casino Live! Elder-Beerman in Kentucky that Seritage-owned portion Paducah, Construction is National commenced Galleria York, venture and Casino replace also location. Hollywood with Westmoreland

are operator will Bon-Ton location will investment. Choice in the Home XXXX, Livonia, is for lost expected and Carson's our Sears Center, in is required Laurel at this Tilt Bon-Ton early These Park minimal We way store Tilt replacements in We value is construction store construction this Town raised announced CherryVale Sears in The late under Sports construction at Denim be replaced new Von which in later in in Additional is location in in spot. opened is under Madison, West at this the Illinois. XXXX. Wisconsin. to Rockford, with the make Entertainment both to Boston negotiation. open store Michigan, retailers open Mall that At store. Boston year later and the Maur month. opening The Mall expected department The of Place fashion property.

be by the customers, Sears Frontier most replaced to addition As Wyoming, one this will be West owned expected Gear, open location the names is a Mall will JAX Towne Cheyenne to Outdoor terrific property. which in the by At requested by This a year-end. by third-party. location is of

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

Farzana Mitchell

Katie. Thank you,

key our flow, other leverage. executing are and We as with financial such on maturity our goals cash maximizing sources reducing schedule liquidity free our supplementing of dispositions, extending

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

We by anticipate we have phase of the to year-end. a retiring extending prior refinancing, second $X.X or Atlanta loan Center secured that million Outlet

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

Our and have and their high is beyond. that locations on debt loans primary mature focus strong XXXX secured yields nonrecourse properties Generally, markets. these in in

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

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

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

FFO compared included share quarter per and of asset share quarter the $X.XX $X.XX, property a per $X.XX per level adjusted XXXX. lower of to was $X.XX representing third NOI $X.XX sales. contributed for Third share of from dilution per decline the share Factors variance per with that share

same-center X.X%. NOI and X.X%, decreased same-center for declined the months NOI quarter Third X

parcels major sold reducing been for During million closure of reduction also property the quarter, St. mall the Charles, but in NOI. generating income-producing The a impairment We've several we Mid tenant Sears impacted maturity on factors, significant bankruptcies, years, lease Mall has over proceeds around the recognized significant several a an including and number Missouri. $XX.X rent on certain by tenants. Rivers

is You will terms the the that the past $XX.X million related $XX $X.XX assume assuming same-center year during also to negative. for largely continues provided reduction submit X.XX% be the to bankruptcy X.XX% tenants reaffirming to negative XXXX additional year, rest are we note a this we litigation pursuant NOI range anticipate reduction for to will agreement. of Based reaching $X.XX expense major expense full decline Stephen as agreement. now in guidance of utilize FFO in share, this $XX in of million not and high results for range did quarter. per the settlement the recorded and expectations of end accrued $X the million the settlement mid- the The million million to first are reduction to as over to currently of of to we date of the approximately activity, a of guidance the on concluding relieved the the to Future evaluated liability our we no call $X We the range. to to which remarks. to I'll claims turn At expect reserve. time,

Stephen Lebovitz

you, Thank Farzana.

redevelopment are earlier, excited of by the and program. As we progress anchor our I impact mentioned

properties, value. which are stabilizing We our to creating improvements is long-term making and to critical income

on our We are focused note a XXXX. as we approach on and ending executing strong key XXXX on strategies

at our today. you in experienced hard and dedication a your Chattanooga to Thank and work great properties, CBL's here for appreciate all professionals, their of success. time and have both team We I

open will to We now questions. call the


Instructions]. [Operator

question today McElroy first Citi. of The Christy from comes

Christine McElroy

or on a the Exeter And of and the Just control the separate at What's that How of four committee the sort parter going with someone will executive committee off a on relevance capital-allocation announcement, committee decision-making will Ashner members? executive day-to-day will company? be three the have, here. over committee? capital-allocation come the committee, the longer-term from much forming there

Stephen Lebovitz

Hi Christy, good morning.

we've at experience had the benefit experience, Ashner we with advisory ideas the as board. of my to focus. committee, all, of been that this really committee and Carolyn board, just tap on we've with and what some way what reached that of join wealth part that for said Richard really And Michael a The Lieb is companies, we mechanism has but for the and with the consider with comments us is should able his Tiffany outcome other want it can have capital-allocation a the the also committee first having reiterate also, has great an to I So I've Michael from consider, into bring additional and we're to Richard pleased Richard -- will CBL. in committee,

we view advisory. is so, And It it positive. a

audit or committee. it'll just be focus but And like on which more. it's committee standing always us financial means So, new an board or not strategies financial doing, priorities, compensation and committee a to been for a we can other we've do

dad, for part. And -- recommending projects be will and And So, role myself, Nelson, most it's the Michael. for the my really Kathleen, just approval executive it. to an the committee adding it committee, full executive in board Michael plays we're important so

So, some some different group projects of gives setting. vet to smaller in and the a the it transactions just a chance of

I think that answers your questions, right?

Christine McElroy

the comments for And I just all a then may But when know this there suggests clarify was. that year. income it Yes, your you the be to year. the release later at in dividend. taxable determining on expect not dividend

said, think to rather any. stand to where with impairments year-end terms you income? of taking, assess an a that annual be I been closer the plan quarterly? taxable applied reduce move you to than in you've to dividend NOLs your Is if do And could that

Stephen Lebovitz

questions Like five in one.

Christine McElroy


two, allow so... only You

Stephen Lebovitz

But limit follow you two our anyway. don't

of lot So, taxable in there's projection. parts we're -- moving a income the

obviously, a have that's where really to of XXXX, we're we for good sense end going so, And up. still,

completed. our budgets. projections been So, still most for as to XXXX, we're of our property-level we our But transactions have look finalizing

factors We far into at transactions income. assumptions are go as as that looking and the other making all taxable

because like is that, in any, on financial the also that we primary preserve we said, income. We're it next is on we just and any flow anything consideration, want in that good Doing to slip want business. possibility. strengthen from to basis said, investment, returns but that we a cash I to invest tried something to in and we also, something XX, before made that impact the we on going and the was is And for we're in there And is XXXX. stabilizing haven't sheet. but if properties the both That it intentional. goal and decision to definitely a our certainly annual debt, the take So, of properties reduce wasn't an like our seeing XX announce terms to days balance

accomplish extent don't cheapest can way, NOLs, to It's capital don't to the look I the which goals, those didn't we'll we I impairments. our NOLs I factors do. at. have by into what source something But -- cash we that's two that flow, -- we kind the that's go significant of the plan different that So, preserve to think from there. of analysis the really is


The comes Capital next Todd from Markets. question KeyBanc Thomas of

Todd Thomas

First question, Farzana.

Valley commented XXXX, that you're mortgages. that secured Parkway of ahead maturities Looking for and and on What on and you the a those specifically? nonrecourse the Burnsville, to just bit comment elaborate View? little you on are expectations plans maybe Can focused

Farzana Mitchell

Yes, Sure, Todd. right. you're

We a have Place, Parkway coming other Burnsville, smaller Valley up. ones couple and View, that's

discussions well market lenders within in of several maturity. with ahead the the are We

We discussions with progress. make our to aware them so lenders current are also of in the

So exploring financing our efforts done. we'll current the continue as in working to as well get the lenders opportunities other with

So we're we progress. we as yet, keep of make posted course, but will, you not there

Todd Thomas

for Okay. leasing leasing the in And then general. environment in outlook terms and of the

your your light list? you maybe you be, thoughts think just any we in thinking watch Can the if reserve of of current and on are XXXX, how I you How sort discuss around early year, with As tenant just turning what how thoughts tenants? might thinking provide about are that be that? you conversations that might your I'm of about next can about curious guess, sort

Stephen Lebovitz

Todd. Yes,

hand for also have it's say I do restructuring. what full and going get budgets bankruptcies to and this it's a mean, year have we that the to but exactly So we better on impact are from I trying like, We'll XXXX look can't the still. finalizing year. from the

to is of. a that out So hole dig

this most XXX,XXX the have to companies as but open, talked square they other that XXX been able takes going looks had stores feet Katie and others to keep basis publicized. occupancy. Forever And XX, reductions we've back. like in has aren't and it I year, be rent that said call the the points they're mean time about, to like involved

to hole out So we of. have that dig

work we but say, and leasing a with But good, we've to going and it's new ways sorts spreads and to other a we've the all of go, Our gap still been specialty are that have I'd volume be, got that. to pop-ups still like tough the do. of leasing filling year, is, and lot

Todd Thomas

can year's curious, into environment of XX:XX)Okay. based Start So just how if a how As where wouldn't on this and right? think reserve, thinking look monitoring look do your sort year? about budgeted that you current you you that But of this I'm unbudgeted just reserve, how on the given (Audit shaking -- next are factored next be year? year out that lot tenancy, sort might of ahead, it's you you're activity,

Stephen Lebovitz

it's number Destination too and have mean mean clarity. have ago, lot reserve and early. XX filed, do better a But I Yes. different. would I to would you. can't if have a we they Forever I handled tell now we Maternity a tried we month

don't all year-end, what plans sense that We I So to But are. we best the to get our a close or try when the know. our on we estimating have monitor job other at we for announce we we'll we point things sources on we'll don't mean closely control, different watch list closely. -- it, of hand, look do retailers and get there that the reserve. of February even we lot at out as there's that their a to

have for end factors. team able that to to despite that a setting like high going and of -- better I the more we're bankruptcies mid- activity, can be by year. to of just of a it And of lot great all a for had though a will think looks And internally NOI hold, the even in we been we've lot did waiting, that current the everyone in and range So we range information this market. we did be our use we've job the

year, a of I time. process, spend honed think we that this and We've well. us (Audit So, served it End) lot


from The next of Bank comes of America. question Schmidt Craig

Craig Schmidt

the at staying assuming are cadence, I'm as Looking -- seeing strong flow wondering we actually increasing? rent I'm or you that of part think drag. negative big the spread. XX% lease is restructuring restructuring the or modification we When the just about a are renewal

Stephen Lebovitz

mean Yes, to -- to definitely on so goal preserve we were and I as But disappointed be negative renewals. is retain income our the occupancy.

especially that being the the filing on chapter does XX to involve So the retailers biggest be contributor, type the or in of that where consequences flexible is them worse. and a help without are go restructurings, brink, into where and we're trying to a any having lot can

So that's contributor. the biggest

there's are down, year as results. the cadence that now the definitely weren't as well who a in number far As seeing the And helps. doing improved sales early retailers better of slowing

And our portfolio so across year. that's up encouraging. this H&M is

really another And And the company to sales has they've rueXX retailers that's other that is then their good growth in that And look had past, so doing see. it this really issues. had are you at of -- the had well. year. just strong some has

out So on there's other But we're sales. some that are challenging then hand, progress having seeing the companies there. still there

like a out environment tough So there. said it's earlier, it's still, I

Craig Schmidt

the greater just able over in Okay. restructuring process, control to And the you are then leases? get

Stephen Lebovitz

a like take to cherry-pick, as better a I'd if say in better certain bring It's shortened, a and are part to to does -- no, you. rent. the else it's there's the take. give but part, we've as have terms the an at locations give Yes, of someone a not we lease And for done part opportunity so us most restructuring hear And opportunity. we of I definitely that And feel that these. option out


Rich from next Stanley. comes The question of Morgan Hill

Richard Hill

back to capital-allocation debt questions reputation, markets. Christy the the wanted maybe to come and Michael, a really of the obviously, reputation some strong in has on committee, follow-up I a asked.

curious, bit right it's mean significant willing Farzana more when I challenging. a involved a said this, that changes sheet? might in little in that your in past Michael be you of you've we've to I'm about chatted a to aggressive side more balance I'm So know the little But does approach more renegotiating the wondering if bit being debt? way be the

Stephen Lebovitz

I we have I mean, the input I can scenarios. maturities, various on best a his involved like think, in said, all dealing we'll welcome way we his been and smart will And mean I board, thoughts. the and Michael in experience been But have So doing be knowledge, opportunities of we forward and that'll definitely also there's really the with see the the change advantage sure to And But we our strategy we his but feel and can we've his properties of help benefit lot of. like we and a take any us. those. I as we in aggressive, don't significant approach going that in want make more

Richard Hill

it. got I

I to mean bit decision? on think about just you do developed drill are. And so little bonds, maybe a higher maybe than where that trading specifically, that how down yields your capital-allocation I think, are at a yield,

Stephen Lebovitz

a that and a in at in investing ancillary math properties pure supplemental. returns the certainly that properties is we've said in of lot Yes. And and No, on there aren't run financial focus the math, we everything. look when the there's and is intangibles our you captured our of investing we returns that redevelopments. publish lot the the our in But

our ventures done So investment. we accomplish the much of talked our bonds on joint something back at time. capital, take this is of we've hotels sorry, and is we've leasing something that with we've a it less to script as lots it, Buying all manage redevelopments talked in into so maximize that about doing $X about we've that we've way million different strategies mean, we've not I talk the the than one able to preserve we The of talked not been ground in I'm didn't of our the dozen things capital account. outparcels, it self-storage, but it's up what there's -- that the about we're to we've about, that with come indicated returns. that of


Burrows question comes from of Goldman next Sachs. The Caitlin

Caitlin Burrows

that next and is that in Farzana, the in lenders two maturities determine you're December, few to coming a up are which the now you away steps. just with mentioned discussions weeks

So terms of mean options? sort that of I of the capacity any I'm give can credit that have. just did in you mention some or line You potentially could comments guess other this extend wondering, you guys refinance,

Just month could the there? or trying to so figure happening in be what out next

Farzana Mitchell


that of terms restructured. Hickory the two maturities previously are those were Greenbrier and In Point,

So -- speaking, new the less that's are lenders still to discussions restructure in as generally likely. but with a restructure, we potential

we off pay credit. these intending of are loans two lines year, our next So not to from

a that lender restructure the So early the we'll work probably back or and the two them, continue the are with makes either Those to of sense and we to another options. part properties to have will us lender. next return year

Caitlin Burrows

it. Got

also on I And forecasting last the job guidance. year. that for this NOI good a guys of Okay. and have just then same-store XXXX done you year agree

So mention imply could did that be does, into deceleration the a XQ, It but noticed. that though, attainable. high midpoint is you to

conservatism? put the So I are that just thinking you it that Or rents deceleration, point? about in that it's there guess, in to think place you've due up do Is mind? of this should leading keep just headwinds kind specific to we

Stephen Lebovitz

doesn't for had. backfill so fourth we're it's bankruptcies rents helps, and quarter, the just the getting income income bankruptcies that No, year. getting the specialty it the that or for we've losses the really, we're temporary And but far the in all fact that offset

So it the to quarter to that range. definitely in fourth implies a get deceleration


comes question St. Haendel from The next

Mizuho. of Juste

Haendel St. Juste

it's understanding to the I'm reserve I to on comments wanted sure correctly. it and a litigation your about thinking sensitive to topic. want just make go I back reducing

fees, a I million established think, billion for had returning for, fund, X/X tenant $XX I You guess, $XX credits. was

there's curious the mentioned million? reducing And itself. then you any $XX statement million the reduction, on impact if piece, is the I'm income about the $XX simply when So that million to down tenant $XX

Farzana Mitchell


So the for is primarily file quarter. million This this tenants we this did claims was took not -- a down $XX.X in past manner. that timely

So we that amount are is that longer no not liable amount. -- for

So of been liability. relieved have we that

our about million. So tenant we've past reduced by $XX.X bucket

$XX are or and to adjustment we a expense. million as So relieved there's of make or remaining approximately payment, the time that so another make liability we'll have we as progresses the that to

it As the future. the to balance, in is

and again, work the and will the taking we until how based of would what the reserve to the they we are how is claims liability. year-by-year So down rent that, know And will terms we we that extent exactly owe that work have to in us. on owed it's credits be relieved what of wait

Kathryn Reinsmidt

that million for of question. for kind gets -- $XX the It's the reduced the

Haendel St. Juste

you Okay. impact maybe about XXXX little more then Appreciate to Can there range XX. that. rents a Forever and the on bit And of reductions the maybe for same-store? talk

Stephen Lebovitz

does vary Yes. think stores. different started I depending the -- the as XX productivity mean the center we can and million, on cases, store. on said, the give amount we reduction. don't and depending with of specific in I on a as the far like It we $X.X we size depending

Forever XX and and in opened a been Mall we square -- where actually about downsized We had that that Laredo, had are former Mervyn's, just X we occupied XX,XXX Norte del at feet. they

are Now well. performing their in new that X stores had in We feet, opened and August. others around that August were and XX,XXX that rightsizing opened square

emerge give from a up finalized. where they'll indication that to So end are the better we this, all we financially the good once able and of -- we'll restructurings feel be


Michael of from Mueller comes question JPMorgan. next The

Michael Mueller

this be Forever probably you your appreciate it'd of kind next would of is bankruptcy about for this you for the aren't better? be this, you to how Do on tell I year? that unknown Do you closures bankrupt that, that gut exact heading point, going going similar think -- landscape is thinking XX next and reserve mean, reserve heading to into are an be you it be to into I year? $XX $X just does worse? you unidentified this year year and think million million, to able And give at XXXX everything to the about when going but the number think

Stephen Lebovitz

negotiated I -- we're you a cases, budgets, and your take question. answered we mean No. place, when the especially projected that's to have signed. into income reserve, we we in the the know renewals the going I have but some some so expiring think we where that that are do lease of lease been in or have, that there's

possible. the So was were into was And was that able budget. into lower our incorporate this budget we more for the as to try take that's to we previous reserve why than as the much year year, it

of and there don't earlier, gut, you, said or but another. a So things I is I that, we can a to are All I sense for one get and way we've this, like forecasting job my I better -- better really, that tell can't trying say think we're doing still control.

So as our our we estimate get we'll best same-center performance our reserve. give closer, to market the both and for


is follow-up a from question Next of McElroy Citi. Christy

Michael Bilerman

heard here the had advisors, that expensed don't I you will with guess, Did with Michael? it, you costs in think Bilerman I have, your fourth agreement -- the that with for you guys quarter the that be Christy. I It's Michael

Stephen Lebovitz

mean, collaborative Yes. No, that. months terms through two a disclose over our But didn't past I agreement. in process of the we had with we Michael working very

course, of we and additional done the measures we for that able other reduce mean, was to where And have to isn't to not have legal take did significant. expenses, we've to amount. other really legal those disappointing quarter. overall, we the that significant G&A. down and settlement I had salary had had keep But into costs reductions pushed higher, -- try it's some our just some but G&A a because the we this and were Exeter we've mean I the So year point

the fourth So quarter. anything we we the fourth into don't anticipate quarter -- as as go

Michael Bilerman

activism sector, Like defense Goldman seen is activism pretty success firm, some defense companies, have your other not fees. and so inexpensive we've specifically in typically large

like $XX the it's a quarter? me in you're million, so telling not million And expense fourth $XX

Stephen Lebovitz

win-win out. on it settled really and and and a team a did an now very of a bad, did really collaborative, whole it's Goldman the worked job, go I And thing with not. great friendly, it for great way lot, And a a had it team job. great really we're is we of think all shareholders. these our And Fortunately, expeditious learned but very and happy us all manner, the our and things about can we best

Michael Bilerman

press Annual agreements XXXX voting to the through And agreed standstill says on morning board. on just he's long that as thinking Michael, he's this release about the Meeting or as for

until i.e., a that then slate? the at later if So the with him meeting, board doing new XXXX the campaign it a start happy is seat from his you relinquish can are Or he not meeting? of, he's protected and up

Stephen Lebovitz

Yes, we're protected...

Michael Bilerman

just that And it -- I want to positive. I want you to to I recognize understand. make wants sure be

Stephen Lebovitz

protected the for we're XXXX Yes, meeting.

would it So if be he board, unhappy the 'XX meeting. earliest the on gets beyond. And goes if then stays he the

Michael Bilerman

or Okay. to executive it's this be either committee I'm mean, father, and it your on to take it, versus executive -- is is board's I And that efficient rotating make an to Kathleen yourself some people have bit not Yourself, of where off, able then just committee right? manageable? members, X, your -- in either going Board a back you're nine half father The or committee. little going I Kathleen executive met more the something -- to terms Michael. the

Stephen Lebovitz

well. works executive don't significant think a role it's from committee a that approving cost a that scope. the recommendations more and it board No, I I plays have projects -- of view. to point limited And really not making the

format. X streamlined operated. that's a still is really we've And X significant think executive whether the And I it'll everything vote. very on board mean, a way it's be I or So committee, the

Michael Bilerman

right. All

Just last and growth operations. on sales one

was that lower or that call sales at lot So of easier. average what sales talked of much having would the is growth basis? your that stores You filing making are of I growth sales sort is existing, below survivorship productivity right? your leasing sort I comments closing But weaker the a or same-store how biased, wondering increasing in versus of bankruptcy for

Stephen Lebovitz

It's that's still some retailers. seeing No, the some mean we're retailers strong then growth through from a retailers, addition there's definitely but a I challenges. getting sales both. lot organic working with our of good weaker are also we're by Yes. some point. traction And core that

seeing consistent others. So one not consistent. it's the But It's of type portfolio. we're or one It's different like than pretty across both. geography center it's the also

so And totally comments stay I in questions. away you've blown my By earlier. why within was more to two that's way, Christy's optimistic the effort

Michael Bilerman

an I that that figured if and like, typically I thought we anyways. were more hour second said queue there were many wasn't last that the up questions so, we in you or


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

Stephen Lebovitz

for you, your weeks. in time everyone, Thank a few morning. this We'll be again, at NAREIT

forward to that. feel look free everyone any to out And for seeing So Thank out there questions. the in reach with you. who's meantime,


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

disconnect. now may You