VER - Earnings call transcript Q4 2019

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Operator

Good day and welcome to the VEREIT Fourth Quarter and Annual Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

I'd now like to turn the conference over to Bonni Rosen, Head of Investor Relations. Please go ahead.

Bonni Rosen

us End the Earnings joining Quarter XXXX for Year and Call. you today VEREIT for Fourth Thank

confirmation Joining X-XXX-XXX-XXXX me Today's p.m. approximately today in a Officer; for webcast and replay are Dial-in our Eastern the Glenn with Rufrano, Bartolotta on replay code call There the Chief Time our Investor our of Relations of today. Financial will at the XXXXXXXX. X:XX Officer. website call the section. being Mike is is vereit.com Chief be Executive at beginning

the I detailed factors would may are results forward Before could that our earnings statements to like be to call differences actual and including filings, SEC which turn over in differ report cause these Glenn, materially remind the not call, in certain will annual VERIET's I historical from facts, everyone are filed these that looking. statement this today. forward-looking

In forward-looking required addition, any fully obligation disclaims more or to our expect VERIET reports, statement in SEC as law. stated update as these intent by expressly

Let call. me of today's format review the quickly

will begin by presenting operational Mike by Glenn remarks. Glenn financial closing business a results. with followed then our update, will and wrap providing up First,

joined line Officer, Operating We call today's by will opening McDowell. Chief Tom Paul Officer, our questions, will where we the be Roberts and conclude Chief by Investment for our

let me Glenn, turn the you. call to over

Glenn Rufrano

call Thanks, and today. joining for Bonni, our thanks

maintaining growth in the enhancing resolved balance components SEC, team. we've us, outstanding with to the price an found building share portfolio, on experienced litigation, quality Major transformation which net continuity issues transformation years, reporting focusing all management stability and acquirer. includes five the of our legacy transparency, in last the the strength sheet, and of a and Over always through agreement include a settling of company an front

EBITDA The for was with tenant net BBB diversification achieving ATM continues usage. flat from guidance our debt reduced We've net then improved to result upgraded to our we to Moody's. dispositions, positive exposure office along for decrease. Fitch, below but and normalize original XXXX, In due the outwork

we from see, operational litigation. will FFO for going was and global million at $X.X to million settling partnership. you was billion our our Company and $XXX litigation with industrial million. share per offering settlement million at financial a XXXX through the totaled diluted of met The $XXX $X.XX, while including financed cost an performance. guidance equity acquisitions be As We'll dispositions a $XXX $XXX.X

Company's X.X from million million We issued to at X.X%. times, a to was stock. under senior EBITDA $XXX we've X.X XX-year the times redeemed and reduced ATM $XXX notes and million preferred $XXX Net program normalized of

on not have We debt but access capital to to reduction extend maturities. for markets only

converts, exception XXXX. the remaining until no have With maturities of unsecured we our XXXX bond

healthy Leasing ending and a for year active with feet leased at the X.X occupancy square was million very XX.X%.

prior XX% For leases, of we renewal X.X%. approximately rank same-store rents and was up recaptured

office and Our renewables. activity X feet leases square square XXX,XXX X.X feet X.X feet industrial, XXX,XXX XXX,XXX million square square early included square of represented retail, of Leasing feet were of with which million XXX renewed feet million feet feet restaurants. of of XXX,XXX leasing of square square

down important to X.X% X.X% to remaining ways Lobster Red tenants XX We concentration X.X%, provide take tenants but of while on ARI, top we XX do the to comprising one the of X continue for able exposures is only tenant our to Bank income. individually and greater Walgreens Diversification portfolio over from reduce and were most X not for XX% total represent XXX of X.X% stability, or from X.X% XX%. list also comprise of to the Citizens to our income protect improve. number

retail index performance new and a introducing restaurant are for We our portfolio.

times coverage X.XX of on supplemental. Page our be For found XX which can EBITDA was QX,

once We XXX included XXX sales flat estate diversifiers. bank real in XXX of and million million portfolio. of XXXX. of this took million branches. of XXXX sold office, which again XX non-core portfolio around commercial markets, capital million million total including to were dispositions We of and of excluding increased centered XXX advantage Turning portfolio leases, the XXX activity volume Red million M&A Lobster

Acquisitions total industrial. included merchandise XXX discount. retail Retail specialty convenience, our of million comprised XX% preferred and approximately categories, and fitness, entertainment, XX% grocer

evidenced before. adding also We are on very nine years and all of acquisitions Walt focused dispositions as leases by years XX the

litigation. we reviews the class our Mike let this XXst my year. announced January settlement me On court and our Before gave on Xth, global final action derivative provide for last financial on both approval which of the results, summary September lawsuit,

announced In for XXXX, settle investigation $X penalty. addition, documentation SEC civil a million subject and to is XXth which on to the SEC as the we November an with agreement approval

now turn the Mike. me over call Let to

Mike Bartolotta

the of Thanks, range our and We able you legacy Thank all joining us Glenn year we a resolved final Glenn. had midpoint FFO litigation. our active of $X.XX. achieve mentioned, for today. as guidance And nevertheless, still very to we're issues

in primarily income lower expense non-routine in litigation QX net and of In the to million X.X or million, to due due a income by a million or impact to reimbursement to recording the due Net $XXX.X %XXX.X $XXX.X to primarily of revenue million, net fourth rental X% $XX.X litigation increased QX. lower of from the of million loss quarter, of settlement income. million increased higher $XXX legal

OP $X.XX per of shares positive QX partially a greatest outstanding. negative increased the the about, offset the by weighted-average $X.XX, discussed debt lower extinguishment non-routine units to $X.XX and to diluted cost of loss on QX on issuance, and FFO delayed from a mostly dilutive the of share of QX net litigation surrounded of due equity

weighted-average property to quarter-over-quarter decreased with primarily from AFFO the combined normal end due outstanding year adjustments. that for compensation just increase I and accrual million $X.XX due increased million, mentioned, expenses. QX in for payroll the shares $X.XX, to higher $XX approximately mostly the slightly G&A share and G&A queue $X.X per operating tax

was due in guidance to below agreement $XX most to operating lower still million for of CIM of range that expenses and slightly Cole $XX.X in the costs in G&A than million, anticipated part for our effect the QX. $XX year the transition continuation ended in year at million services a

Our XXXX to be million. to guidance $XX G&A estimated for $XX is million

expenditures the proceeds, of $XX million primarily Capital came to than insurance year leasing $XX commission. million, at with net due approximately anticipated compared guidance earlier for in of our approximately

with For to XXXX, we spend expect range $XX the guidance. of to million CapEx for Litigation to be the in XXX,XXX, expenses million bringing quarter $XX related in were year-to-date million. line our XX.X the

other settlement last at of time pending investigation. as of for speak items be SEC going also statements we the included Note, cost of we Company On this cost agreements item, will had meaningful expect do we remaining million line $XXX.X the the September litigation and we not the into accrual approximately this the the of on Xth, million. non-routine the civil line litigation the entered forward. settle to announced income $X Thankfully, a to that

Pursuant Company. and to the the auditor, former action former million manager to former the and defendants up its principles, pay $XXX.X external CFO, $X.XXX Company's from balance class $XXX million of agreed million XX.X settlement, from a the from million total the made Company's from of the certain of billion, $XX Company's

million, which million. we remaining settled for brings our outs the addition, to total opt In $XX two $XXX

now the which the all operating from surrendered CFO. the $XXX.X surrendered units by formal million The cash and REIT XX.X%, which the the we XX.X% units owns back former and of value included to former manager OP manager OP of former class, for and partnership, October, up funded by In dividend us reflects the CFO.

Company at $XXX real the Subsequent purchased million quarter a weighted-average XX for purchased $XXX XX properties Company fourth quarter, for quarter rate the of million. X.X%. the properties activity, estate cash cap Turning to

During rate in total-weighted calculation disposed of $XXX of the cash quarter, cap properties we of for amount $XXX X.X%. also this was million average XX used the million,

properties the was XX.X subsequent The year Company XXX million, sales the bringing XX for the gain approximately the total million. on fourth disposed to of And quarter to million. $XX for the quarter,

In addition, of at VREIT a a rate office partnership we with assets will totaling XXX.X office Street capitalization Advisors, X.X%. Arch million Capital include an which formed

XX.X from of a last Street to closed contributed an three Gatehouse traditional and headquarters formed for expected on the at totaling half Partnership be XX XX:XX investment of Arch XX.X external for the property were closing, properties the of as leased structure a with is with XX-year client Capital. equity partnership tenant grade the million. the which the institutional acquisition Two to billion, Also, we facility, office the an first partnerships to of lease XXXX added million. under time

of As term and debt in related markets principle Glenn In due, utilizing to our loan billion February transactions. XXX came that notes very unsecured XXX planned. XXXX discussed, equity active of we over million had a XXXX, million senior repaid with X we the outstanding the as year number capital

our of a gross gross $X.XX. ATM half million were first able of also the X of of XX.X During weighted issue shares to we proceeds XXXX, average price at for

preferred It's facility from in stable rating in proceeds even the a This and outlook Moody's from us as industrial to and equity we remaining bps this the the used minus XXXX, XXX of from liability XXX on Subsequently, stocks positive. for market of loans, reductions moving revolver XX X upgrading a redeemed term our savings positive litigation, bps F facility our to resulted million in good us with agencies reception settlement the credit found bps July and the in shareholder development. partnership. XX BBB BBB of And to we a able we're permanently Upon finance X.X% our Series offering. the fee.

XX.X in Then redemption notes stock X.XX% XXXX, conditions XXX aggregate revolving the we of notes redemption million of notes to million million due XXX the XXX in November due hand, the the senior mortgage XXXX debt. and additional advantage from of and on XXXX, along all these and prepayment used XXXX. X.X% borrowings the million cash current we of senior of purchased of and X.XXX market preferred principle from facility VEREIT, were Proceeds notes X.X% the amount in XXX.X due fund the price able credit million, take in in of senior of of senior convertible to we

average addition, proceeds $X.XX. net we million our of our prudently further to this a With ATM for normalized ladder ratio our schedule, activity, issued manage below XX.X all original shares price under debt In our able costs of and X duration, of at to were million our gross our we extend debt weighted guidance. lower EBITDA gross maturity

with liquidity. plenty healthy in Our of a remains stock balance very sheet

Our normalize X.X EBITDA net at ended times. debt to

For XXXX, achieve optionality to range our target. times flexibility us expect acquisition X we net X.X gives times, the which and to of

the will However, to be lower cognizant acquisitions our program. always by end moving we the range of of equitizing over

X Our fixed and ratio net investment remains to gross healthy ratio real was our charge estate times XX%. at coverage debt

the we are average and was years ratio weighted asset XX.X%. XX% Our duration unencumbered currently X.X was and debt our of

turn I'll that, with And to back Glenn. the call

Glenn Rufrano

acquisitions $X.XX of share with XX%, now to X.X%, $X.XX, and to Thanks average turn times, X.X X.X%, X.X% to above X to an occupancy targeting million $X diversification billion and dispositions to growth rate XXXX. billion the non-core. from for average of operations ranging I'll $XXX AFFO cap diluted to guidance cap totaling of of estate same-store X.X% restaurants real rate totaling $X.X Mike. to EBITDA office X.X% to million and net rental and the our categories, debt per normalized average to $XXX X.X%,

Additionally, flat will form reduce which leases, equity. to been our an of internal have providing program continue efficient

to partnerships $XXX instance, in million flat for share, Company's quarter. of expect the to of million and contributed properties million we of Dispositions million. partnership million acquisitions $XXX a partnership, For sold industrial rata million $XXX fourth office at office Walmart the $XXX the $XX.X we and the acquisitions pro to for Sam's of $XXX the X.X%

We reducing XX% of as our XX% casual the to on least range to well focus reducing at concentration office to will continue bottom dining. our as

using for business to our our discount avenues outside opportunities way portfolio our we given the We model the appropriate include believe other quick-service restaurants geographies industrial cycle, the thought U.S. this current have types life point best is increasing grade balance property or retail, to than secure At sheet. non-investment by These sourcing existing investments. in our and

long-term and balance grade, partnerships to fit with office. investment off core sheet or single We've tenant expanded our single-tenant industrial our competencies

for full in assets transparency balance sheet, balance criteria always non-exclusivity have not enterprise. mind, not would off three the thereby in We sheet encumbering ourselves positioned with investments buy reporting, the on

to billion at expand year approximately pipeline open not will provide to growth options us $XX deal quality to acquisitions product. XX%. We With by our the only but except a least of net offered us,

million $XXX As sheet great can have see, acquired to with under you closed million a contract the start we and in year partnerships. and balance on the $XXX

line I'll now questions. open the for

Operator

Thank you.

We begin the will session. Instructions]. now question-and-answer [Operator

go Please Jeremy Capital Markets. first Our Metz will question with come ahead. BMO from

Jeremy Metz

little talk equity a out bit the And I contributing opportunities just to these? the talk partnership did for last much want Are you industrial $XXX can potential what new? million these the of year? How about will you about Are the from they to existing million? within be angle partnerships. then fee XXX you

Glenn Rufrano

on mentioned, and how give work will both and the so gross both I'll asset equity. is fees, the as for start a fees But would partnerships, you Tom. but asset are point of the the industrial confidentiality office. here, to both then Yes, Tom Paul approximately point new a with a be Jeremy The the Bonnie a fee The a about I'll start can management asset. acquisition fee half have this we and sense the I half on in with on good kick partnerships,

sharing equity And of X% and one. a that's But promote, approximates then would little of The approximate different road we of those key the we'd from down property have what be a for the getting disproportionate fee three each partnerships. management that's but revenues.

In what we've looking fill that. terms in partnership and to and the industrial on you of been let at, both Tom and I'll be built, it's existing

Tom Roberts

as are higher by the forward some out. funding are to facilities a to X X assets that newer. distribution those that appetite grade for it's a and in an assets yield industrial. And in investment are be know, going months these suit us commitment little you trending Yes, of generally, lot to allow get to a and those cases built State-of-the-art

sheet X of fixed So a was million, about know, cap. balance assets the under contribute did you and million we that X.X $XXX off feet square slightly as

the So, the area because balance have pipeline on an our sourced one past of sheet is thing we That's in the pricing. has of couldn't increased. noticed obviously assets compete we

with investment state-of-the-art activity we're seeing said, So, new grade. industrial Like facility. in type this I warehouse form that of tremendous distribution equity,

close mentioned, have early So, under first, schedule XXX million excited quarter. second contract XXX on we're here very Glenn activity. about -- million to the that's we front the industrial late

Jeremy Metz

the is a XXX you'll and sorry, gross your Or percentage to XXX value And is million share? that the that of that? have

Mike Bartolotta

gross that have to value, KIS our so and XX% we're the an it's and we somewhere and XX% the That's of financing. partner XX% deal, XX%, equity Jeremy, would have expecting XX:XX about

Jeremy Metz

And a way deals part end XX%? getting took then, the talked this the in longer term terms you acquisitions, color? to you goal to how to get XX% about equity of transaction additional any desire had XXX, few the and partnership whatever part should just Glenn, just down how it of or guys it office office of is, is you about Is that add something your office this we agree into is XXX partnership lower to to do what forget. happen from thinking this or you it or buying contributions it even just So, therefore that is, of be I a to how that acquisition

Mike Bartolotta

question. no, it's good no, a Sure,

we selling saying, properties, three million XXX office XX% in. I and there in gets by the are start-up First, of sold office, offices, the terms three

office first see part in second assets you'll an the and this. that which important this go reduced quarter the of year, concentration of we as in there, So, is

second acquisition The it's a is vehicle. much smaller

can leverage. As we're again, projecting it's in XX:XX versus XX% XXX XXX And XXX XX% you approximately million to with to the a to transaction industrial. XXX it's see, an million

small very relative to put sheet. of is the in we So, amount balance capital our

this intend partnership to So office any increase don't concentration to extent. our by great

a have long-term have what in shorter-term different it's we campus leases. the properties, and also form will a of some office It corporate so type there of today

to to the be our percentage. a not add and to long-term, that So intended industrial it's lot compared large not

the to we XX% committed that taking down to still office concentration at mentioned. are least the We

Jeremy Metz

much at here equity, to How just just maybe just of in then further there down us that's forward. guidance? question but even last from the plan stock assume like there's raised the part given taking desire going necessarily for doesn't terms I for where de-lever the further in It just further deleveraging we here, the outset the look of you've the where the here, just about And more is. should about your talk think broadly, or preferred

Glenn Rufrano

that the We've leverage five and Also, there complete range over at and hand obviously below big to we're a to mean to given at so have could prep. for on for on put we of we taking acquisitions. then transactions achieve make try X.X, the it room and X.X, but and number we program create up our if bottom over-equitization deleveraging I'll want Mike to some six will question the of to our and we enough can commit some sure a

the of Mike? terms In prep,

Mike Bartolotta

tell the terms have whether at prep, look to just XX along year, prep makes at we Jeremy, not or to look as logic you it in out. think look all new of XX a them and sense to everything. continue was could we'll if any I at whether I there we'll year, We'll any put

banks the we'll these sure is about working are what all all make opportunistic We time on we and understand market be the with items, of doing it. to our

quarter opportunistic have at in we're far, of so that nibbling million them. on partnership then that and we've good been did as we XXX out refinancing institutional We some say, with agency available a the away over done fourth capital the the and $XXX the the when we the two had

come think up. So to we'll I continue that do opportunities as

Glenn Rufrano

relative our Jeremy, on not your to well, legs our and capital like that to the here type, infrastructure that now have of because property we return cost a of be business capital, to and and assets adequate of use kind know partnership that big I’d an now there's feel to the to talking we buy, we're across the cannot industrial cost for of about and part right looking model where anyone in types And a -- using assets of And growth. we of is, low focus to fives our just we're question provide sheet the is take arms bunch balance relative take but conclude understand property the the part adequate on at.

and able And we on mind We fee a those to of like piece because income assets small be We office provide can leases. some fees there having assets. infrastructure. of those is the don't long-term get because the

one any to we get the here big property looking that trying all for type think we issue at in requirements is in don't so opportunities, have our any So we meet given time. caught

Operator

Our go McGrath with from next ahead. Sheila come Evercore. question Please will

Sheila McGrath

are trading a to net the discount of shares and your office big at be it could still peers, of part Glenn, some that cap exposure. lease larger because in

So sale how consider those you're just and quickly? and wondering asset approaching for of more disposition assets, the management those assets you would strategy

Glenn Rufrano

We agree with you.

is think Our I asked is we it leverage, component, our payout be But people I competition be the assets, about terms is. gun, little lower of don't leverage is ratio our break more leverage litigation your in would high. loading a a we buy than can about high would so as people just leverage. little just office multiple the high, say a settlement. asked and and of our think Jeremy you could our up because who have could

to time. than we we are reasons that over a multiple there a bit needs be corrected lower on So our focused and others why are maybe few and think very

balance to of it the we XX%, office office office, We've too. XX% building terms we. remember never set In about nor down sheet will and bought a if guideline out bring XX% we you started of to on XX%, at an

pricing. sold $XXX at office make reasonable we of to that do of tried and million have billion sure office, have We dollars

and our we sheet, office -- we is you proper in show We have portfolio. office and management XX left properties asset square with XX to what feet balance will the expect on million

can to to has with, have that management. our to how that not an but a we If assets NAV that, know give we larger going we're transaction away, immune not We're this is giveaway. a can agree number not we asset

use we will, so words. And I'll your

if move we're certainly makes could do something sense, towards it. lower asset we number. that But use will number open below We proper that to management to that

Sheila McGrath

on Art just the looks how wondered then watch typical Van, you tenants et could we're the and about update And hearing us watch these cetera your tenant in list days, on context? list, if historic just tenant

Glenn Rufrano

Paul with think over I that Paul? here, to going him. I'm throw to

Paul McDowell

watch over few on remained has few lists few years. a years, adjusted stable over large remained stable X% pretty our to to quarters Our we reasonably the And past seen watch past weighted basis past over it's X.X%. a list impact the haven't in the lease of so around fact,

exposure today, it's the that see that stuff bit and seen you're unusual throwing there's the you've towel first not quarter a the tenants marketplace are little So tenants seeing to in that people lucky profile high in that market in very and we're and the now one. We're diversified talking about and the Art have limited we Van some that like either very Crystal. to

exposure is properties exposure properties at meanings XX Van rents, of today. Crystal have we lot from you're and Art the rents at don't so a X.X% X.X% to Our eight is of of hearing

Operator

Our JP Anthony Morgan. go question Paolone come next Please with ahead. will from

Anthony Paolone

to point, NOI list what's credit, is that same that? in about you Can behind growth decelerate guess On I expected your the watch talk and XXXX. store

Mike Bartolotta

rent you half stores, a that had The and we period break was And go we component same XXXX, that almost was is by it this X.X four through actually office, in major year components. free of 'XX. of did of it we reason we our in each an the that gave actually was and tenant notice a time office them the for extend down it. blend you'll for the of If

‘XX our back pool. They was year or paying in free same-store close year. of had so they after because this were rent that zero They and always over. they this the rent started And pretty period last year suffered came the

X.X%. at a So we had higher number

year mean to stabilized we're same-store, going at blend do term more them, reduce to because time can more that and these we given always not more doesn't aware be get any extends and it'll next but we NAV. believe we're do We get them it

through. it NAV as hurt sake same-store, for we’ll to comes going just not we're it explain the So of

Anthony Paolone

stats for anything the same-store XXXX else point Crystal, you're Van or Art watch counting anything on in this guidance around there at So or or the list? that is then

Mike Bartolotta

taken everything's We would that We've consideration. hope into there. in

Anthony Paolone

as it And things exposure, next on Are over you're where looks office the Are be reduce assets to you the could expiration? those expires X% move are in revenue for sold years, help stuff? the up like weighted-average exposure that of on that then office your you have longer coming go three there in or to known mix? if office. look term, the I with with outs large lease duration And those any

Glenn Rufrano

start over weighted shorter-term big term I'll of lease picture is Paul. terms a answer office years, a maintaining so to difficult with then I'm average X.X it value. and The office going to hand has selling of in

we have assets asset. on been way management an asset cost could as some we an the could now blend to TIs. if we cost to the us could But that sell exposure of think has our been extend it, us some basis it minimize it can't when We through and rent, see working better

to million, vacant in sold instance, a Grumman, a good year asset good quickly an was and very but be an last $XXX in asset very at we which price. we've For got pretty North was actually location it

going to do in we recognize Paul, difficult. wall anything? of more any we that is lower but it advantage with So there is situation office, can we're take

Paul McDowell

in extend obviously, we look has say on that see very one in next we carefully And in and together. valuable office mentioned I when retail we an industrial market. place and have it some No, we Glenn pretty are sell expirations think to good hopefully few extend the said, And in that into tenant as about asset tenants mentioned, one-third that one-third covers and without ability we tenant we gives focused I’d put And over as California. to office, years, open our one-third place are buildings well. We also that. the very that us the a place. restaurant Glenn

another to which to year. We of dispose we're ready during getting we -- Seattle, of have outside this hope one the course which

it's a asset classic So blocking and management. a of just tackling sort

Glenn Rufrano

a a we value, we certainly method for if maintain to Sheila’s we’re And larger find question, that similar to open transaction could it. felt

Operator

come Our Green Please with Instructions] go Advisors. question will Allaway [Operator next Spenser from ahead. Street

Spenser Allaway

obviously at ideally subject XXXX strategic is just kind much how dispositions. what divestment, portfolio remaining more the maybe the look like portfolio prudent would in a to robust of year, terms say would to today, as or was So do? you you very of portion But said you differently, of

Mike Bartolotta

that's the In now be office that portfolio Spencer, for disposition, would the Outside of the XXX that disposition. partnership. to the XXX,

of so that's would our down XXX, that outside automatically So that office. take some of

So then and non-core. to three And the how XXX, that be to primarily we and to that are have we'd strategic in that position portfolio. XXX Those categories XXX. on dining XXX it are casual office would like strategically the

Spenser Allaway

XXXX kind just would guidance you that? and kind divestment guys that into of beyond everything that So strategic captures nothing bucket of

Mike Bartolotta

this and last To strategic fair, at not No, point. be five years. had the we've investments for billion so far it's X been

can see billion. been and last $X.X big So year program was you very a it's

we're it over see you can of hope XX million And of minimizing here. this the year we So sold requirements part bank as strategic branches. we

at. there small say may be strategies we within looking when non-core, non-core So we're that

Spenser Allaway

between $XX million expected And for million spend, year. and then just regards mentioned in you think the I somewhere CapEx $XX to the

or relative you the on and would probably that each how curious item be in little to TIs also line broken years, then maintenance can't just how between provide recent Just spend color commentary you fares on out expect you CapEx? provide but to realizing can a

Mike Bartolotta

million over $XX the $XX range hand $XX year. Paul, a is were picture, bit million expected. $XX big Paul? And the of our we to above the million to projection million we I'll it next but this for year, on

Paul McDowell

shift up grade a several tenancy investment from one form it's In R tenant back and box, we these space as in of drove office All tenant filling that primarily rents. Us grade value. below years. like of some Yes, higher had before, buildings asset Toys important I increased the commissions to we things from under leasing from variety to XXXX, CapEx think of investment a over net recognize that an mentioned a did, our Glen we've guidance a positive events in been the vacant past

CapEx spend NAV. we if to willing we're can that increase So we think

of at over an your as new I see in is the expiration The eye years, compared 'XX saw would to properties. we the towards improvements to associated maintenance majority portion our a new leasing And CapEx for trends would guidance driven of as we say CapEx leasing with what office. 'XX LCs be XXXX with is expect next of which would schedule LC, several tenant or for question in activities TIs off significant or maintenance and activity, our

Operator

and back remarks. Glenn question to answer will conference our over Rufrano This the conclude for I to session. turn any would like closing

Glenn Rufrano

everybody talk us. going forward like to look Thank you. next us We of year. you week. keep through for we And joining come Citibank around many format. seeing We're Thanks the this we as to at help to

Operator

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

VEREIT (VER) 26 Feb 202019 Q4 Earnings call transcript