WPG - Earnings call transcript Q4 2018 | Washington Prime Group Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2018 Washington Prime Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct the question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Lisa Indest, Chief Accounting Officer and Executive Vice President.

begin. may You

Lisa Indest

welcome and fourth XXXX quarter Good to call. earnings morning WPG's

expectations, certain we Laws. as to are and subject call, uncertainties historical today's risks might are forward-looking matters These projections, that other will relate to Security During results. and Federal affect make statements future not or plans the defined statements and the beliefs, that by events

Louis certain of earnings Management GAAP detailed our description to these which financial discuss release may various section Greg CFO; a CEO; Head supplemental information Members Mark refer measures our of release, risks, with website. press Zimmerman, filings, Lindimore, of Josh For to measure Reconciliations Development; filings. on are and SEC also financial the management in Leasing. each non-GAAP are measures. please of SEC are Head non-GAAP Conforti, our included Investor of Relations comparable packet Yale, of and the and today available us

call Now turn to the I'll over Lou.

Louis Conforti

congrats and promotion President. well regarding recent Lisa, Thanks, Vice deserved. to Absolutely Executive your

Lisa Indest

Thanks Louis.

Louis Conforti

originality. their they they're enfranchised Stop in junior proactive albeit retailing as for assets. possess and by interesting. Take review. darn responsibility their an as creative stabilizing wings hammer while there'll four colleagues, boas Me” and the private “Save efficacy, themed dental asking What idiosyncrasies fall wizard, spread retailer exemplar company time commentary. best they're to roller As sector a General is as of find pretty as when serve when under overleveraged forces? concession, make jazz status resources they one like well supernumerary to hired their no accounts comes recently and who a my Did who popular assets. complementary with sector professional fact fresh women eschew bite in well then of exception. and the magazine our characterizes their My happened to commentary octave the quarter Think when These to an majority a nearly today good for and about itself what the reinforce unfettered includes to differentiate Stomp. who our theme to references and pressure you And and happens important, formidable interdisciplinary General fourth them fact that my Stomp. specialist, a plain continue how mention by fashion Clap. it XX% is sets, corporate bring I as when dust. importantly concept derby I Queen of of quo my are who I'd Zoroastrian or XXXX lame, also know another It ensemble receivable individuals, to The vocal Fo/Mo/Deep. to range are collective other quarterly been as Queen is instance cultural along resume “Don't access the a publisher rental and willing real characterize astrophysicist, improving is electronics sprinkle perspective tenant in an relevant in the Goodwill replaced the by Manager, with emphasized know, right. school Now” understand incisors, a is about all myself join gold toward feather our and of and dropout, and have This happens impacting find vast for with diversity. or continues bassist just skill who what increasingly I also then stent the today's company to our disavowal is decisions are physical professionals, in to whose our sponsored two legal operating and provide league embody channeled their this that who colleagues which as own previous colleagues fiscal the our of empowerment. and how championing quite is they the our as demographic, be better cried should sure further Managers this equity Ambassadors. Me collaboration

going consummated square tenants, better previous tenants quarter they of guests, perform with deserve which leasing feet upon our those of during by year-end provide million sponsors, some We kind square to feet. Our dynamism and X.X focusing one we're and million to magic of to the a tally continue assets.

including or was is game XX% because fitness want the stationery tenancy play guests and as thing bicycle, our entertainment, As home buy as attributable lifestyle their beverage, glitter. to that to attributable food, some well importantly sometimes furnishings and ride

to to motivate continue our professionals in tenancy. We diversify leasing order

former In department the fact are stores. may bit We the for during previous incentives releasing Champions to XXX premature comes a leases the Announcing, year. when it qualified be tad

Chandon announce to et So and pretty you cabinet. continue can’t and pleased cavier and this. a are Moet keep my we in I'll to so excited Notwithstanding, I'll tell I cigarettes how

our from dollars anticipated. standpoint have projections timing originally internal a surpassed than We less while allocating

the quarter month, of this half XX% the the demise as previously we stores stores -- our quarter identified to we've words, flies leased This without, XX vacated of department vacated leased stores, of or in detrimental testament fair think XX% it so again to about isn't true. face you be we’ve middling of feasibility regarded these of of a in and -- department in live X can't our As other which assets. soon punditry to department just a as the serving a

our is comp redevelop. I by area, we and four improve points years. the repeatedly as stuff; aesthetically previous flow stability cash good This diversify when just tenancy, focus XX during mentioned do best is of warranted the common NOI illustrated activate upon basis variance As stability have minimal

key than it on focus minimal underpinnings comes in the myself and more The store nobody going up doing all So is and that's to assured, both it which about to when basis it foundational and result to point same staying down Rest think we're XX NOI growth. power. variance. wants

of by vacated leasing Beelzebub to stores. department landlords continue address co-tenancy, We the

provided have of during projection visibility. and we as assets merely and dominant centers a Yourself increased just and Plain Prime more catchments. of town to Alive their result, a comp as Keep NOI X% Group XXXX we than growth between our Washington reposition has a X% function XXXX. As done simple continue the within

NOI a -- payoff. option assets from XX% In As distraction II The regarding inordinate objectives. put my won't non-core or of spent this encumbered. Tier time Hence be straightforward: combined Tier assets amount be Enough ain't executed going is operating hesitate by known, to ever. it flick exercise and mere closing, about The reason put that which action viable do we accomplished we of I as to NOI have as stated conviction have easy our guys those a total relates associated said. excluded as is now you Remember from a of is discounted option to unwavering XX% we as our a of the metrics. in won't core comprising this and company they're in behind What is NOI discussing these classified the wrist.

who, in because be Scaramouche you. think our for to rock forewarned going all we're the eye, you stop and However us can spit

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turn open questions. financial So and to it to I'm Mark going all. who to to going up is we'll the highlights then Thanks over discuss floor

Mark Yale

good everyone. capacity Thanks when We finished Lou, our hand facility. $XXX million credit on and morning a the to with approximately available liquidity of quarter cash on and current considering lot,

the remaining middle liquidity. closing We giving the outparcel another, to proceeds million majority are also the the by $XX expecting us from Corners overall of of billion still transactions, roughly, Four $X.X with of close year,

a As West and the in the related Square to debt yields we by improve with we along digit With mortgage early our back properties, us place continue of expect in to Mall debt Plaza of to of Towne this million in the single our portfolio, represents this Ridge West $XX year. the a delever. also fourth way service here, quarter for quality efficient very transition

ability XXXX We these terms plan refinancing bonds, negotiated terms the is a looking XXXX April the at Accordingly, next when of of our bond confident another term manageable in and current any excess term to in mortgages extremely pipeline. million financing upcoming in we our $XXX feel the credit $XX four should on million the through see inaugural our our of maturity of payoff XX-year the Lakes the risk to our for address a recasted commit potential our focus for of remains -- Open end when Coupled currently profile years, property maturities, CMBS loan $XXX considering bonds. our we with matures. secured four leverage, debt over Waterford in until which upcoming in this have facility opportunity of beyond of very our the redevelopment and When upcoming solely elevated million In XXXX of center Air generate our maturities on to raise comprised debt, maturity approximately fully feel liquidity refinancing debt we sheet issuance. XXXX available that don't proceeds. other with low fully to confident proceeds

position this to a dividend with strong payout, levels. able a believe historical us line puts in also be in We maintain to

in to making and are over we department specifically another planning boxes XX% believe to Air As XX% solid Tier this the in estate addressed With does mentioned, Open and years. to confident boxes the with owned including the XX over the million repositioned store will next exclude our we estimate originally are Seritage. to on transition be X Lou Remember, progress to need necessary approximately real active respect portfolios, spend, non-retailers time. this we of addressing which capital $XXX XX five by additional projected $XXX our of three pipeline, pipeline million

our was turn Corner on Four FFO diluted range gains net share, the falling me sales. extinguishment, results. for gains period. financial our by within When quarterly excluding was income to offset let guidance Lower into quarter outparcel on per debt Now the operating property going fourth $X.XX the our

to we As respect see of anchor our some the decline for a Tier core X.X%, did was to saw quarterly X with expected, due performance, which bankruptcies. NOI challenges X.X% portfolio. down

"R" the Tier for Bon-Ton X% during positive neutralizing fact, Us, for quarter. nearly growth would the from X In when Sears, and impacts have portfolio been Toys the

result of a level as X.X% Air In terms Open the important growth a Capital, basis CAM impact. XXX Open decline portfolio, Air reimbursable of primarily the nearly the the XXXX, portfolio timing point fourth hurdle that experienced quarter of for high and of XXXX. during a exhibited remember creating we X.X%, It's positive to of

within of per $X.XX XXXX decline to to $X.XX our terms X introduced diluted share. X% comp include In we our the our and of a FFO Open NOI of range Tier X% assumptions outlook, portfolios. did from guidance Significant Air

isolate rents outcomes you Sears and impact three. stability of move if Toys did complete three saw these Palos see midpoint our growth from and portfolio. of This of reassessment X outside X.X% non-core. our Lincolnwood; range from remembered also property the expecting applicable the of all up tiering previously, practice, lost the of narrative and to disruptions. X mentioned we're Tier we the supports range, stated the Tier which full property down annual recent We bankruptcies, Bon-Ton, of our "R" cotenancy one Russe Charlotte array our with encumbered our including approximately liquidation captures drop to the anchor bankruptcies and at assets Consistent Us within Things of As

also and any X in the to store of within Open estimates having within our store portfolios to we million reflect out guidance department our point incorporates and portfolio. cotenancy, terms date JCPenney Tier $X X another not anticipate Air should Specifically and all do We that closings Tier announced portfolio. our in approximately actual our million $X.X closures

of Additionally, been that have while is prior impactful as Fitch XX% contractual derived to expense the from growth, core properties it's traditional department year. by our that downgrades result higher of department stores. no NOI the store exposure recent our to Due adjustments have near-term important the closures note credit guidance spread to incorporates agency and also interest Moody's, the over a to

Although, company's insignificant, million amount not $X rate. XX annualized increase a represents the basis of only borrowing in overall point the

tangible a the and XXXX in pressured front. do map next road year in we been on the XXXX, of when have being potentially state made results department store operating through progress especially for While see repositioning growth meaningful factoring

confident cotenancy to closings, in we looked remain replace ability make to lost XXXX, not we the for properties related and better. As these to our our address rents only but

stabilize between Tier X% would X bankruptcies any anticipate extraordinary NOI to Air be XXXX circumstances, tenant comp to borrowing within growth Assuming and Open our and we in portfolios. X%

sales any outparcel per With call essentially in are looking of we And terms the be the an it your believe by open share we at for XXXX. transition, set will plan the dollar covered and tax now projected Corners appropriate Finally, probable lender when our at is anticipating that, dividend, flow our to that level. gains on continue Four in year driven questions. animal the income of we'll

Operator

SunTrust. comes Our Thank first of you. [Operator Kim from Ki Bin Instructions] question

line is open. now Your

Ki Bin Kim

morning good and Thanks, everyone.

Louis Conforti

morning. Good

Ki Bin Kim

Good morning.

development So cost is and gains the of dividend asset or to some and about are at and one if have the revisit givebacks your it's about think willing this dividend and XX% things and from high what think point, but its you about look your keeps the there are to of more to equity ways development at single-digit there at this way yield these cost is a in the that you about, that I few yields, but think simple handbags rate Or lender after that I equity needs CapEx today. level? completed? appreciate I are if sales

Louis Conforti

those let me two deconstruct of yes kind questions. Well,

questions. the first straightforward in dividend answer the rate I What a at -- two is and can Directors. level our Board its simple think keeps asked current first flow you the I cash fashion. surplus of

in well effect marginal yield which comparison our to dividend As to is what cost implied to on if our and were or invested if capital was X% upon kind the of -- development, what our already it continue volume wrong. company we we ever we've the we is development a our manifest prove did between developments a of terms we and to at conviction which that's sales the and via with our we based so when as -- if is areas, would as evidenced of in holistic going if this get what doing relates a trade the equity multiple. higher pursuant pundits wouldn't some return to we We But were we it of itself going only it idea -- silly univ multiple develop. the there's benefit it do was have return we

summary, to look in for invested equity cost So, capital of guess I isn’t yield and -- it. the marginal way our return at just development capital out dividend to right and on comparing development

Mark Yale

important is that's Yes. our And an point the yield I direct think on investment.

multiple redevelopment cost start now flows. and right clearly, the rents is not maybe is stability care. What's with that there our forward So, our certainly the moving there regarding question some AFFO at is go? of that what's factored -- the co-tenancy in cash You flows a looking where not of cash do on

very we're use we fully So, we certainly that's to co-tenancy, rent, is obviously, We portfolio viable. as that and redevelopment demonstrate is our you looking a having all think of stated our its organic in have the of the our moving by but now we significantly growth -- we comfortable forward why stability, far we believe sudden best right our loss some capital. addressing start to pipeline. remarks, the at multiples differently. capital And And redevelopment think commit that

Louis Conforti

and XX, leasing a feet by our new that's you we department believe XX%. Again boxes ones store you if And XX taken this half can't quarter assets. that be just that of as over with did to day when to all as of leasing Josh would've what faith on I -- up our I square done active this Obviously, year. well our which lease in together long put as evidenced our we're were of X.X well, closer XX million need tell guests only have not tendency the in seven out and our about assets

Ki Bin Kim

about Okay. the then part And how of question? that second

Mark Yale

The two $X at It million they for that's open also et opportunities expect to Bin example, mall -- Seattle Collection million once lot -- doesn't Outlet almost additional Ki of visitors to going to for and include we open FieldhouseUSA, the generate leasing restaurants, and a cetera.

Ki Bin Kim

so cost yield if value these And I the are Right. of you question the lower, about or second are right element if dividend not go that lender of that second just so the part how like now equation dealt of There the some is willingness the better it lot gains assets question a of that better? if mean it. revisit But after back making that works get to and of is it the was to center works with I the funding was kind a how part policy? the to

Mark Yale

The sorry gains, I'm

Louis Conforti

in Well, think of I asking dividend. our driving look through taxable it's some income our certainly a we that these going we be evaluation what and is how to get our understand what circumstances. we taxable think Ki I gains We up, XXXX. And is once quarter-to-quarter but certainly Bin think -- where where think of at is are facts it's income XXXX. our growth certainly and greater for our to cash the a XXXX. for dividend the confidence flows laid see in is maintain a part plan flows now we for XXXX. profile going the We've and even are And right will We out dividend, cash be pass

Mark Yale

And speak cash of enough to our flow by enough we've with that to delivered X%, thing visibility generated XXXX managed that virtue NOI kind as same-store hopefully, do we makes growth X% that surplus to said policy dividend everything obviously, of and increased done of far. – we've and and one comfortable we've us expectations we've thus And we've is. would

Ki Bin Kim

for terms same-store midpoint. just you And whatever step How for going happen you or that built X% rent to really spreads? guidance us in contractual And the up like the business? your can NOI help there understand minus cushion is lease Could unexpected occupancy this Okay. things the just got of XXXX X% much that can at about negative different in talk through you levers? to of ultimately in for how trying see the

Mark Yale

the to best we of our Gymboree, come of Yes. first Ki outcome guidance, of have Payless, so bankruptcies is I Things is Payless. understanding about Charlotte year far midpoint liquidation mean, Russe, Remembered, the factored that Bin, talked the all that of this in fruition which

have store there we And of if from handle that then closings then it can around we somewhere so XX factored the some probably We is Charlotte we basis points for unallocated just talked our that that's Russe, guidance. liquidation full have about And all in. happens. certainly within stuff

obviously that Air. talk big that another a Bon-Ton, Toys“R”Us. X% So into about in all million $X our the to when factored is of the roughly the couple levers dollars but loss in rent Tier and Sears, about driver, Open X%, it's million down from from X you It's bankruptcies

So about the big driver Tier that's as within Air. Open and a roughly of it of co-tenancy of impact well a million $X X as

growth stability. XXXX. our and thesis it part of is seeing and of positive I isolate So, a big it's But we're you in think is once there outside our that again, that be if important would is that's and X.X% not

just to spite well have is in do make going underperforming the we're what properties only to performing Our properties And of better. going these been anchors.

Louis Conforti

iteratively, NOI of iterative the of are then to think we same-store of the sequentially with that of by to able high majority forecast X% again, growth addressing XXXX virtue vast XX back co-tenancy – seven year. if harkening or and about Well, confidence, as degree in we We everyone store would it of have the done following quarter it hadn't the if we leased out half. didn't department the in not at how X% look XX boxes us

Ki Bin Kim

one squeeze I A one. quick in? more Can

Louis Conforti

Sure.

Ki Bin Kim

Thanks, Lou.

NOI? better reimbursements. impacted timing -- that's little can and XXXX much that benefiting same-store there fourth How the is of CapEx by was reversal you that same-store that mentioned You of a explain quarter a in NOI

Lisa Indest

are Mark it's Ki where had compared growth XXXX to our fixed opposed Lisa. this portfolio XXXX Hey, not of the out to between to the see pro so of Really and Open a more QX, we QX, was number that in really around rata issue you XXXX difference, it's and on where have as pointed high the Bin, is XXXX is a malls, that XXXX, still big CAM. deals high XXXX Air which

a being timing So capital tenants are items quarters those and really just are by in the reimbursed our CAM compared. it that was

Ki Bin Kim

Got you. it. Thank

Louis Conforti

Thank you.

Operator

Thank you.

question Advisors. Spenser comes Green next from Allaway Our Street of

Your now is open. line

Spenser Allaway

you. guidance around appreciated. XXXX the is color All Thank your

guys provide Given and going around is disruption forecasting increased this line lingering makes the to you Sears difficulty next have a the looks the then that What you concern. tenant it visibility in fact be that for like to confident year?

Louis Conforti

we have our as mean a you absolutely you're haven't concomitant, it co-tenancy and of lost XX% if rental XX% can think I stores a department about of we I said, the to obviously addressed Well, calculate XX% which right impact.

the wouldn't as X.X Josh plus lease years asked square combination our well annum. back good the department you've every address guys as to to team and right XX% the that that asked you've per -- addressing but I asked visibility last store maturity, leasing So have done address we our boxes, you're up us couple co-tenancy, us some you've those questions. of over his in-line without precedent of load space, we've feet had are of mean thing you've million you've asked shift point on single the again us asked to us to bond of of historical But

Mark Yale

amount of of just a that. impact in not terms amount a co-tenancy. Sears significant not lingering the we're other rent, talking a of of XX on go-forward on a And couple points locations, basis significant about One

base feel just absorb going list the our of that there. percentage they're -- seen we'll it's see but concentration then whatever can as it watch a at was see comfortable how outcome it ago, we believe forward the a terms we plays the even where rents, just out, lowest of annualized what level. lowest to of versus move in I've year and And hopefully the today rents at So looking that is our I

we are So were years. X% X% our we based list, are But last the expecting exposure our feel watch it shovel move of have level to a driver a tenants, we've redevelopment stabilization mean the ground already or in of like what terms we more I the we stuff in upon where conversations we and signed visibility a did from level a the it's where caveat couple of we leases. of that redevelopment know is big forward that we have with where have it's seeing of to bankruptcies about in the ready we been

So a growth. on of curves return modest amount it's the co-tenancy organic its and that

Louis Conforti

good operational no us financial from nothing creative standpoint. mean, we've an not mean and are I interesting does again From I manage been embrace we the -- expectations. we It the a prudent. to standpoint, but

income stores space of we've sequential us addressing and allows co-tenancy path. very to Leasing So, comfortable XXXX. in about lost thought kind about rental department -- I line carefully what think it a addressed hence tenant about feel

Spenser Allaway

Okay. And a tenant whether around that's a store of line to not agree Thank lot department to that the progress. you. lot continuing risks. think the But made good community you there's the related health still of or Obviously point. bully unknowns investment would in I

additional with XXXX by that fact conversations it there closures have given guys portfolio? the are with guidance be your you Macy's again these potential as future And anchors. and stores relates within continuing to could to how comfortable JCPenney So, that are you

Louis Conforti

to again benefit I'm to road answer Scott, local going on tell I'm on national us historical things days can speak the endure anybody's every in I visiting We four And think you expectations. tenants to single our tenants, That's to precedent standpoint. assets. to Josh. that average from ways. why or not Greg regional We small manage speak I week doesn't three every visiting big and a two it a day. two

very estimation to We than to better both January research our going centers. town continue I'm extraordinarily dominant is to gotten primary to and article markets and don't Greenstreet fared we're then actually when in XXth cite I I'm happen And going of have fan secondary that's as an our about this. humble think we because and when which -- enough have peers transform important serious

talk what is the that -- risk -- don't minimal is NOI. -- riskiest effect it on the market. greater part our years secondary we're often ago. the beta still secondary a as systematic risk of wrote And But I flows asset two because website about variance calculated of provide tenant respect in there in and cash I mean versus right the think -- in in idea in right being January versus we on mix, the the know i.e. who with We country. And amenities risk "gateway that's non-diversified And primary markets to to about and seeing And and evidenced you -- And is for doing I something guys the wrote markets. You defensive a that your among right is. volatility. I'm by it's half our diversifiable reason sticky. are assets. our this our this paper XXth We're that got

Mark Yale

in being it's with effect the weren't XX, we think didn't a -- Calculated last be that stability of back important kind wouldn't comfortable sure the disavowal visibility because in the and seen less if have thing risk years most forecasting on we if we it's of, I've XXXX. point I risky. primary XX markets And

Spenser Allaway

you. Okay. Thank

Operator

Thank you.

Our comes Caitlin Sachs. next Goldman of Burrows from question

line is now Your open.

Caitlin Burrows

changed and expectations of giving referring all XXXX and guys guess that look the and XXXX us more team. you that guidance. providing and the attainable? I managing visibility and the shortfalls you topic some just I on make confident morning target good into that XXXX have now guidance, guys guess given Hi, methodology is faced should at that XXXX in

Mark Yale

Okay Caitlin.

what of watch transpired at just I the XXXX, is us the do that where lower. path has forward. in apart to XX% since we level it X, I our where look where if our of all our our bankruptcies you occupancy our occupancy space think have has think cost, below was, Where Tier with, list gives comfort today? is, A of in lot it that

from tenancy we and know years is going store years two inflection. million out beauty highly furnishing believe, health point we new only this two three ago a and the that think department beverage three equity other and XX% don't just that levered do entertainment apparel terms and to of leases, just this X.X through of of or thing the assumptions last I and the of done And expectations away over private visibility lifestyle work the at finally home food can that. And exposure. for laid same junior that was and We we disruption. in I that the owned of where retailers lot see lifestyle and disruption diversify tenancy, from we've continue. trends we're type the type a about We've to just or the talked were

Caitlin Burrows

talked on then XX X Okay. impact But the on be million Open and I Toys Sears and $X XXXX if this. Tier so just to X And and the million non-core total. to million co-tenancy another stop Us I Air think million about But from you actually Tier "R" X puts quarter $X last in now expecting point you're wrong maybe Bon-Ton, I'm looks guys me think and had I like million headwind. for think XX a it in

million million talked potentially versus difference that I'm wondering So before million is in now? what the we to about $X the just XX $X

Mark Yale

is Tier then the components. from the loss anchors and of the our is rents and piece in two co-tenancy. Air XX X Open is, those three One That million comprised other

total Tier So out for about Open its Air you I right if X, think, X.X million Tier our the co-tenancy, in and X. strip our

estimating end of third. we a not from what the were significant change at So the

Louis Conforti

Actually target. right on

Mark Yale

through maybe we -- providing will rental just were we much just you too we our we income Because information lost -- was. went this, again told what

Caitlin Burrows

Got it.

guess will that much is there noticeable I department were this they in yeah is the now So just case the idea headroom passed. that pay don't out stores thought guys rent, in get there that but a a -- that you

Mark Yale

you foot square on even Sears paying payer. Yeah. had rent some paid a Us aggregated. wasn't number there of they they per were mean We though basis, Well still in "R" significant stores a from Bon-Ton I rent I mean Toys just and had rent being clearly a

out, is I it ultimately to expecting we're just have XXXX of temporary believe focused gives and how demonstrate, we that's and real to the only in we're deals kind XXXX, platform to this progress not up but us the seven and really because in working the and not share you. minimizing pathway with And think growth ultimately toward our certainly going are and this quarter-to-quarter the disruption point incremental forward. us the why on these address highlighting many did we're prove going elements we're this on but and beyond. is to more going with to actively We to we we're it's

Caitlin Burrows

how and the just online? status to sticking guess on could of come there the in I Toys boxes, progress terms we many give some expect there and when you were leasing those should

Louis Conforti

How -- how mean? Greg, do total Josh or many we in do I many have

Greg Zimmerman

forward. moving Grand I know altogether. think were was it Central I XX

Josh Lindimore

we're other Honolulu making Big a in have ones working and that's the Yeah be under use we Lots well. probably Well, construction. we're mixed progress on will as some that on plans still

Louis Conforti

got that the we right an Big mean will all stepping Air having the into tangible and Lots update have boxes. certainly I we conversations There others believe progress. was and good portfolio -- our is Open Yeah. in in one I

various for even those maybe or -- we're stages in on signature out intent I letters and of leases boxes. of of think rest the it's

pipeline start seeing the we're of on talking that's those So the boxes. Us about once forward “R” opportunity growth Toys our again in to part It's and when XXXX, you confidence. move

Caitlin Burrows

back just up know dividend as is that you guidance and it then like to guys relates then it then not because the kind then the of it on there. based lot. And I in seem redevelopments CapEx the comes of FFO guess cover I and Okay. gave a XXXX just to the pieces to ability that dividend does

the I'm to talked will line know guess, And is liquidity the in expect kind credit how and wondering you So, reverse? I it you of do is that plan that gap? of plan it just you do about when -- bridge your I

Mark Yale

certainly XXXX. Caitlin, decrease related the believe the prepared to $XX to dividend million that about in the talked the change we're in I in mean, in we flow, mean, was cover for covered. leasing AFFO it I costs in mean FFO of leasing cash free that it figure be coverage. always I generated Well, our of costs, Remember those in And kind going will internally about where out then terms deferred not was our to of payout accounting remarks deferred we but

projection with in income for taxable that couple XXXX. You our is where

laid the the our XXXX. go into for with relates as on dividend fronts. As where And and those the all our maturity we we risk said, Those making to we our comfortable are we're level at believe liquidity, we appropriate it decision out all dividend. setting we're

Caitlin Burrows

a And going been quarterly change am that’s I there now a earnings I this the I on change actually don't but the if basis. guess making decision a was that dividend the the to process? Has release, thinking was why in is reference coincidence a asking, know or there in a Board assess in

Louis Conforti

whatsoever. None

Mark Yale

decision. always been quarter-to-quarter It's a

Caitlin Burrows

okay. cash stability. in of then And it, just Got maybe the terms last one flow

and about I way One talked overall think which is that Open the Air price, why your share the few over a have years, total the how guys flow overall past has properties supports the company and but, is given for variance subset had comparable do five stability? guess, portfolio the that been shrinking Tier You judge portfolio, NOI in you dividend relevant of to cash the minimal years

Louis Conforti

sign it everybody don't an were rate in portfolio, to it kind a I not attribute, thinks you a total if I very negative, calculate would discount that but it’s generally four hell just guess, higher is discount of about easily rate what just ones that you about negative lot to way portfolio. because was it’s can we like-for-like assign are a will I a -- was, of appropriate because years its concentration, most be of negative mean, know -- but the variance using factors. ago the what of portfolio So --

made of rate. flow stream tend of cash through I a about four have one not we think and in in terms about lower better it years mean, total of what we discount lack to was a sink hence and term kind of ago, can So for I it get I that it think but kind of the term. that lot tanker more

Caitlin Burrows

you. Thank Okay.

Operator

from Ki we Bin Thank Kim And you. Instructions] [Operator have of do SunTrust. follow-up a question

open. is Your line now

Ki Bin Kim

Thanks.

with JCPenney. coverage on those you or the coverage that mentioned four-wall close and that any earlier curious from you profitably, expect anticipate just I'm So you conversations for is that's you've the or to cash so yourself? don't assets don't more closures is flow based JCPenney that had because the

Greg Zimmerman

Both.

a Greg, strong as We're have Lou is Bin. Dillard's JCPenney, Macy's JCPenney We with very portfolio, stores. all in this mentioned, Ki department conversations constant the

confident that. So about we feel

a down heading be on weeks. playing we'll fact, couple to In of

Louis Conforti

primary again, There stores, beta. profitable. I secondary the mean, back the and they're in their harken – just I decreased versus to

stores a serve constituencies from in wide and profitable. an They Our draw are catchment the they demographic expansive our markets. and

Ki Bin Kim

your Okay. And any small thoughts share think AVR you in you typically of can square tenant higher jewelers, footage, but on area the obviously, located where are jewelers top main if and mall. a about the these

thoughts of XX% the stock down back couple earnings, retailer this over quarters at of portfolio? look is on had price a of you any If as that

Louis Conforti

to it Josh. going I'm Yeah. Look, over turn to

that good Josh as it list Josh however historical is second. question. going watch want to to -- Mark a you I a mentioned whatever it's at to think over -- in you AVR the but... turn I'm to had speak region low. total can tenant But don't our address know I per

Josh Lindimore

it's tenants, odd our head mean, issues. certainly of with going to deals portfolio, Josh. comment not is tell throughout completed but package, a off minimal Yes. it going you we've I my I say very mean, to individual just disruption look, I what I'm Ki top can on XXsome Bin, I’m or

that going their in they're and got a Signet and they've think I I value look long on think are runway other through the people working and -- portfolio. is malaise think business, certainly I the they’re tenant same retail

Ki Bin Kim

guys. Thank Okay. you,

Operator

Thank you. Caitlin do question from of Burrows And have another we Sachs. follow-up Goldman

now line open. is Your

Caitlin Burrows

another just on, the I one had side. maybe, leverage

earnings that I the XXXX? do trend XXXX, estimate guys course the And lender expectations how your expect Given as also so over to of do debt to XQ guess, EBITDA transitions, XXXX? you but how is for you the

Mark Yale

some to it with fully and any we be with and of lay sheet to for Air us was proceeds we term When point some the as be Obviously, have year. from XXXX. we believe of on give got that and maturity some And able believe financing take at forward Open It's where maturity see the moving NOI look table. We'll a EBITDA, of EBITDA that's growth, will for refis off CMBS maturity next that guidance significant drive only talked in Yeah. decrease the to really that plan, XXXX the why at we X we'll our which terms inflection generate look then in high positive will important help that XXXX have risk this the was will you very finished Waterford our you our down. seeing back April Caitlin, out profile excess above and we times, we we'll do but year. XXXX about a that when and negotiated Lakes bonds in pressure we’re back backs. for Xs, four our also some meaningful our we We've debt and be

think sure is be that back want will are leverage line address it redevelopment maturities on there we to bring and bottom that feel line. have we path we fully front. But in commit and making we and So to liquidity what our a our is, the we're our on to very address comfortable be pipeline to we focused where able to

Caitlin Burrows

Okay. Thanks.

Operator

for this you you. does today's our participating gentlemen, conference. and in Thank today's question Thank ladies answer session. conclude program. This concludes And

great a have Everyone, disconnect. day. all may You

Washington Prime (WPGGQ) 21 Feb 192018 Q4 Earnings call transcript