WPG - Earnings call transcript Q3 2019 | Washington Prime Group Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the third quarter 2019 Washington Prime Group earnings conference call. (Operator Instructions.] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Lisa Indest, Executive Vice President and Chief Accounting Officer. Please go ahead.

Melissa Indest

Good morning and welcome to WPG's third quarter 2019 earnings call.

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

For description risks, of please earnings to our a and various detailed release SEC these refer filings.

our information comparable financial non-GAAP financial Management and each GAAP are which may on of measure also are supplemental website. measures. the section discuss Reconciliations press included SEC filings, Investor in certain packet of to the release, non-GAAP available measure our Relations

Members Josh are Lindimore, of Lou Scott, today Leasing; CFO; of Yale, Dan and Mark management Head Development. us SVP Conforti, with of CEO;

Now turn I'll Lou. the call to over

Louis Conforti

for A afternoon. couple We're maintain respectively. feet our guidance X diluted Good everybody. We right. NOI of We bullet right and in Air. growth per I'll X.X adjusted hey, and everybody and both forecast $X.XX Lisa, XXXX least comp reaffirming and All then in. share, kudos square FFO Josh hop XXXX as million divi and and combined leased $X.XX Open else. points Dan and Tier Thanks, year-to-date. And to X% at

between music alternative musical Merriam-Webster dictionary analogy performers as outside who genre are musical produced The defines and mainstream, eclectic original this as exists than distinct There a by or the us. more regarded typically popular music.

to tissue previous hasn't deal and from up facing walking fact, it. laced zombie, It have esthetic been In kicks, colleagues around a prove transform and to with our their the creativity we pumped-up XXXX akin my and their up challenges to assets our scar easy, Instead sector. decided numb, to we via the originality. of strive tighten have

XX the portfolio. artists no. who right All have vacancies resolved within equates of the now with immediately department store names company's everybody the Starting update, the to -- XX% of XX, the the phone in of with which we now,

repeat expect me XX%. others that: And we order. Let XX by several is announce short to XX divided within

than ALDI, to expecting we of a Simpletown, area I'll Bon regional and common name a few, and HomeGoods, it's Fieldhouse for Room ahead Combine you've Maxx, TJ Place, Mayor some a the were diversified able wide symphony, party. lackluster some with what's just sweet of these of more PetSmart, easy or were pretty markedly or activations, decide Round Unless While to assets: you which better solutions got rosters. a pundits Sears you're current tenants Ton. the bitter USA, X, names decision. our let schedule and array attract provide local flavor, a

to important turn and know, as now to most you our Let's is ought task. epic which, leasing

increase lease a leasing -- feet period transactions resist. aforementioned robust continue of furnishings, square is for again, X%. year-over-year I attributable professionals to and and can't beverage, million, -- lifestyle Of professional services. food, fitness, volume increased new home entertainment, X.X of tenancy exhibited to army, the leasing perform -- fortitude X-nation this same with XX% XX% million they a result, a Our number X.X totaling the as the of

guests Our drink well and come reasons buy have and as out loveseat two. of to play plenty or as a eat,

product because of first it XXX be property our we leases qualify and continue whether I want, asset upon, type X under XXXX. incentive -- we've during professionals, believe and months the various incent that focus In it specific management very is addition, category done provides to we programs just which it important an leasing or that focuses

daughter. as to about but rock love and crop-tops diverse we I love smell always time stores we'll Teen Mark and certainly to catered as a to we Spirit, the our riot, isn't teenage anybody's a with start Listen, like want demographic tenants don't latest more that it constituency? teenage much

we're when investor, plain with exposed disrespectful. meeting institutional is an midriff an just However,

All of two, a as within to as currently locations to be portfolio, about think a relocated have this one and of major XX. result and anyway We me maybe about three, slated one's six going makes like mixed-use our lose we're Forever was midsection now, baring talk redevelopment. it looks of

Center, to turning I And to annualized that thought points just I'd Quarter. for exposure situated account of And mention inform and Maternity, is was XX this basis -- XX% -- again, of Polaris, quick that they basis points within me Motherhood rent. only XX Town Scottsdale Josh

for a basis X.X% costs, is and points Let's Occupancy our sector, of Open bankruptcies points it transactions X Tier which of attributable spreads foot XXX know Gymboree Air we XX and operating basis per to among to increased Air other the XX while new decreased Tier profitability metrics. square continue guys single increased litmus Payless. Tier test which X was occupancy Leasing the rank same XX.X%. best of the you trailing the to square $XXX Charlotte XX.X%, few months. and X foot every XX. tenant with the to points trailing Open decreased during sales XXX during of combined Russe, within and basis And

and uncomfortable in we're for the save as sun blister filling a this better and with space interest in plain fact more I'd the tenants services. simple, goods with, be

year to improve basis XXX we will end. fact, XXX Tier estimate In points by sequentially X by occupancy

Air decrease increased comp combined NOI. a Open and basis resulted XXX X.X%, to X.X% of in which discuss X million. $X.X Let's points, Tier decreased equating

to deconstruct can income as Before it better Take again, the in as XXXX Bon commensurate data entire understand Toys important Sears, bands, million for and from various one Ton, of co-tenancy result to favorite its lithium, loss remaining it's XXXX -- and The anchor impact order Payless. $X.X of you components. rental not attributable my point all-time the be million Gymboree and to negative Strokes, -- Charlotte to from decrease reach this your bankruptcies hard explain. a Russe, described $X.X follows: it's --

at as resulted If in comp growth flat in it income, well to as in-line we to least Think for rental vast be we XXXX would the line both of off about as sure the relates department there, the of couple out positive forecasting [indiscernible] lease and working it. detrimental transcript. occupancy X% income space, resolving co-tenancy visibility impact. a an have backing we're as have didn't and point is and satisfied out aforementioned bottom rental this year heck comp wouldn't So by can have of this majority co-tenancy and The NOI. end. and NOI store our but read pundits increase the repeat I asses we

if is In other words, mistaken our he it's of the sadly volume Michael Stipes end proves believes the leasing world.

shout-out colleagues guys you there's your get, guys my you given -- -- and to my you what get you remember, Just have it and all.

applicable silliness our I'm with another Remember current analysis, my price. scenario commentary when other interesting effect share of at X X going setting price, quarter rate. share last all by solved Tier to we provides yet a XX% in result the constant, The a then price? the of an the rate financial provided of this assets current assets given for factors which illustration current traded cap Tier end analysis cap which was at

-- more incremental mixed-use it. Westminster so framework sorry, to of talk selected: were summary, representative look going Demchak X as it undergo redevelopment to representative couldn't illustrate NAV. just this I short Legal told scheduled Clay Terrace, in which got will a assets -- redevelopment provide illustrated detail, a below. time Rob provide but upon and retail and actually, I've at about all impact assets going are a and I'm I we're three or below, right, But potential its by WestShore, Mark order. to take was to All

And previous market the price, NOI. to applying current tend but rate developers current methodical so deliver are the land financial us. cap was residential worth and retail cute. roughly what the XX% was third-party valuation spend rate actual and our every in asset instance, products and parcels that fully calculated from than obligation delivery of to was analytics, $X.XX, things the rote analysis and we of to And research. be of at fair for Capital was a the nothing valuation, each to cap an fully share in ascribed of quarter, was as these office, entitled retail, That responsibility the very Drawing these the projects included these via XX%. And entitled include land deduct. whatever redevelopment parcels actual Note quantitative NOI implied other by lodging. afterwards of

$X.XX -- All These per in right. three X assets, conservative set, or assumption resulted creation more value assets. just these super-duper of share

Grand community this apply going. about where and Now to And to extrapolate and Park, I'd there of think this. really Polaris, City, analytical degrees methodology goes the on and the Southgate, Southern I'm any you see list out on. on Johnson Central, and for varying love Pearlridge, with

have, acres that off going probably -- I'm and for tend at guys, -- do instance, Westminster, many which thing other we anyway own? how to one And script, I do we

Mark Yale

Just under acres. XX

Louis Conforti

you Orange What you literally XXX, the in development to okay. sites the think probably America. the great of acres, or is? County, can unentitled traffic entitled XX do Under wave land even one on

Mark Yale

$X.X million. $X million to

Louis Conforti

Okay.

$X.X Do acre. million to million $X per math. So the

behinds thank closing, -- guys, heroes. working colleagues. I blow and off, you love my guys become of in just all Okay, your to I'd my you've all you just you're me like and Again, and all away,

Your Brightside. me I'm Mr. make collective efforts feel like

I'll now activities to and discuss for all. results the who will financial over Mark, Thanks, turn it quarter.

Mark Yale

morning good and Lou, Thanks, to everyone.

net refinancing four proceeds hand on the Open approximately With nearly million $XX credit of finished properties, and quarter capacity million, the our $XXX September of $XXX the facility. available cash of with of Air generating including we million when closing of liquidity enhanced on our

the loans previously XXXX, our lease XXXX sales, from our redevelopment and liquidity. way, transaction, Four addressed facility April our which, net maturity our of remain Corners fully secondly, with the and the of position by $XX million remaining in of to $XX continue current feel to continue we received expected only strong credit bonds month the the considering of ground million through mature, commit pipeline. earlier out-parcel along discussed available related maturity term is the end unsecured we a to comfortable to $XXX upcoming debt Accordingly, now our from this When when with proceeds have proceeds million

related upcoming we did our terms debt July to million X on Square of of West transition the Towne maturities, debt. mortgage back along In the secure Mall $XX with servicer

of of of the by yields, end way transition had very or to also million year secured single-digit and assets together do the Mall delever. properties noncore mortgage Plaza there. Ridge us with providing have $XX these debt our thereby the a Each with to encumbered West We efficient expect debt back

loan would details minimal required have with and $XXX expecting, maturities Beyond address refinancing of properties. traditional we comprising currently have We on We're to of end. X our maturities loans debt combination secured Tier these further only by secured extensions, XXXX, all of through pay-downs. this through of these mortgages, the to able to end a million year by be of expect X

profile Finally, future during our demonstrate efforts important in these management, Further, capital balance a notes reducing and at we million today terms our to liability of to retire of continue Thus that $XX discount we to and exploring the the maturity extending third of opportunities while liquidity proactive XXXX raise enhance the roughly X% par. company. approximately out to sheet continuously position. were debt able we risks our maturity are quarter

announced which As occupied to stores are in time. progress to will XX and our Air with X those currently quarter Of excluding need XX portfolios, and over Sears boxes repositioned making be by operating Tier Lou we mentioned, when open we're X department closings. the solid addressing respect boxes, fourth Open store believe

this XX space nearly within diversify our of again, So to the when Once negotiated continue these strong demonstrates boxes. via portfolio the to the LOIs, experience guests. signed represents considering while addressed demand leases or for vacant our XX% locations us for allowing this

in locations. additional XX also transition excludes We X to estimate Remember full boxes to confident X million over remain $XXX our years, non-retailers, Seritage. of the pipeline the around including capital spend the projected XX necessary originally next of by owned all

of to by out-parcel our Now quarter share, of FFO driven the per was larger-than-expected our into for at third debt, financial diluted gains results. overhead on gain expense. and guidance let $X.XX period, primarily upper range me quarterly corporate the the going the landing extinguishment for turn lower end When adjusting

primarily comp year's by terms challenged, it anchor expectedly was year's generally this In of in bankruptcies and with NOI, line tenant last liquidations. in-line forecast, and

quarter bankruptcies, Sears, 'R' performance in-line and seen essentially the In Tier and neutralizing the X first flat portfolio from we the impact Us Air for Open Ton have comp quarter from versus Bon when the Toys we our would NOI negative that X.X% for reported. fact, and

the quarter, We did comp year. would experience from we for performance be the knew in the improvement low NOI second point which

the performance positive. period quarter million forecasted to by burdened Remember, fourth the rents of modestly already essentially at of looking year last reserves. a quarter, we're be co-tenancy improvement, with Now expecting anchor in further was fourth even and $X to flat see lost to over full

we In guidance to per terms our of within our the range XXXX did of $X.XX FFO outlook, adjusted diluted $X.XX reaffirm share.

Additionally, year. guidance as dividend reaffirm the of for did our mentioned, we Lou this remainder

have for in being results been last see meaningful when growth especially the over the do state made on continue year, tangible roadmap of a years, operating front. store repositioning While factoring we the progress several pressured to department next

As beyond, we the replace but address look table the properties are our we and to rent to bringing related to actually the in for. uses only from make to co-tenancy our our that looking XXXX these better and confident remain guests lost not ability closings, by

we're quarter when also Tier X% tracking pulling process detailed additional store of next NOI vacant bankruptcies Accordingly, the call. together the along and in year to NOI second XXXX XXXX with from estimated disruption, and budgets, department still tenant Open the department least assuming comp space growth of major that combined million we property in at Air other generating earnings continue leasing X are our stabilization our anticipate meaningful further we of to activity we While store and from during redevelopment portfolios. discussed our $XX some minimal over of of

you. any I now that, with the So questions. will call open for Thank

Operator

[Operator Instructions].

Our from of Kim Ki the from first question line comes Bin SunTrust.

Ki Bin Kim

NOI basically the quarter, look end million. growth down low flat was for the XQ, if fourth guidance. you're of your like So In at X.X%, guidance seems same-store I same-store NOI estimating at about implied the $X.X it

wondering flat by closer from was I something bridge million So provide us if to you a get can minus XQ. to to the $X.X

Mark Yale

we recognizing headwinds we negative necessarily off Bin, won't combination in it's a quarter touch in the same first just that that that the the piece type bigger anchor Ki in that really Well, of I prepared see last that question, rents had X quarter fact Good is start probably burned the to in the we saw year. remarks. quarters. Mark. And so fourth of last co-tenancy It's upon and that finally fact we of tried fourth the did the year,

So 'R' Toys all were all of closed. most the the Tons, Bon Us, Sears the

some bridge redevelopments Lincolnwood, we that gap. allows you significant just in So for example. that to the of that itself, layer these portion coming -- a really in it us Then fact of online do have

department We start the have we at Fairfield activity Dayton and the some so and of Commons, redevelopment should from the seeing a repositioning stores. lift

Louis Conforti

And increased well increased occupancy, in-line additional as which obviously means stock as rent.

So this it's everybody. coming of guys, In redevelopment I'm going to summary, online. combination in for summary, do the

impact Let's it call in-line co-tenancy increased diminishing and just occupancy.

Ki Bin Kim

give way in be X% X% assuming and NOI to comp's the of I levers stable the for any that this you to I a growth Okay, if in your get to think kind point. XXXX, and going to know different a detail And opening it you're easier. mentioned But on down minimal little it more environment break to to you more investors remarks guys to can support I you bankruptcies, for wondering or that's assumption just get realistic that at takes growth? also, bankruptcy it think a

Louis Conforti

think our stable, and standpoint, not watch anticipating. But going what mentioned, basis we're year last our itself income. man, of the just Lisa, way, pick is we mentioned And Yiddish we continues we overly incrementalist rental no And et not -- what doing. in by from Burn-off points say incremental are to al. Well, manifests XXX quarters, of to We co-tenancy there's to I no listen, precedent optimistic, the what said think could ferkakta deliver. I believe -- of that tenant occupancy we're overly and word term Mark, what approach. or draconian speak any we in I delivered we've in there's up form, as said to delusional were we've assumptions is the into we in if XXX shape couple we're which list, a stable, would nor we are we've historical improve. end, being in

Mark Yale

bit to of see a then understand our from We leasing to of see the we you And more is online, X, you in portfolio, performance. that. a Tier going stability around And that. outside $XX coming Open activity. part look which developments challenges we'll the of positive. from obviously just that little have gives very at starting good is that Air think need trending our growth we're major I about what think million NOI to but us better when really see we base. certainly portfolio. point We incremental talked the That behind compared And

just bankruptcies I about put we $X we experienced the of bankruptcies, in-line a -- perspective in the from negative those in within our Charlotte XXXX to Payless, well the Remembered want Gymborees, Russes, watch today. don't when the tenant just list types impact we -- the over talk exposures And have million when the Things

is referring bankruptcies. So to. I be what think are there Lou We still will that's assuming

Louis Conforti

Of sorry. course, that I salvo delusional XX, and feet alternative Scott was was contingencies. Bin. the Lindimore, Maybe resolving the your I we least vacancies. X.X have XX department XX in be, my opening taken Congratulations, love I store universe you, or Dan out contingencies, square thought of would and just fulfilling Ki for at now. million I'm leasing Josh

Ki Bin Kim

it in put I note. in I note, it the think put though. the I

Louis Conforti

Okay.

Ki Bin Kim

can what you next of general And at with just from current into of the that the year? if the debt bad as your beginning reserve And this thinking remind off like, you was started you perspective, look kind what's year? us,

Louis Conforti

X% trending at looking based of a income, little upon a of that in historical. We'll our are of so Yes, on what we're go we bit more to as probably put that we of cushion into XXXX. top back total neighborhood probably assuming the rental

Operator

Our question Caitlin Sachs. from Goldman of comes the next from line Burrows

Caitlin Burrows

mentioned like that thinking up revised of half the view off and match of your half continuing And before? with XXXX the lower a just it second how granted Toys lower growth, on now just wondering, I seem Maybe you guidance, about new. fact an just view guess, does was Sears, but versus that's this the then impacts, XXXX on second it like, Bon 'XX quarter so lower any kind unchanged the a just quarter, kind of base, what's last with doesn't 'XX? of about Ton different I from know

Louis Conforti

the champing don't to I at think, at we just was trading, bit, no, But Caitlin, XX XX- we and right. sorry, is got -- Mark XX-basis-point so the the oh I you're multiple? know, what are I've a margin, acuity delta. -- of no, at to say, trade don't. it with I'm we Since a XX,

we that's a an as question. go Mark, But industry. no, So good transform on.

Mark Yale

terms Yes, in Charlies. Charming $X what And of even not our put of liquidation talking just in million about views. we're perspective, change specifically, changed, a full

thought the provided at that we would think merge. I point guidance, they we

a even I a lost happen, don't actually, think going it's in to against to a couple it that, growth believe our for of though so going we and that and of We to reserved that got carry helps had we They're delayed. issue, XXXX. And month's rents as hit, over worth be we was we a significant and also XX. burden. redevelopments relates Forever

factors. we as try where as always We're possible; we upon based transparent And our be. that's updated to to going are. those view So we will be

Caitlin Burrows

down think you midpoint It I'm get so of the closer in then wondering, guess it's... the high expecting the remarks, mentioned guidance, would possible, do you 'XX low XQ. I the end end growth or or you Okay. I in to tree is like same-store something that just like think flat seems prepared of And

Louis Conforti

the It's question, same the question. Caitlin. same It's

we our blunt-edged right, shouldn't in You're be approach. as

what's... Next,

Caitlin Burrows

moving okay. on, Okay,

clear be the the it So I I to guess terms due of to XXXX think lender for little now especially in a dividend, while you've wasn't made transition. going that changed,

XXXX, based on be thoughts can your give those will us you as and made? dividend of latest decisions will policy So think when some what about on XXXX be the we

Louis Conforti

dividend to most other policy. don't speak companies, as We,

and management. policy dividend and subject XXXX effect remains in the Our to Board

dividend our policy remains Speaking, unchanged.

Caitlin Burrows

you on, or terms I generating cash say anything in Okay, whether based can it's guess expectations? else flow expectations income like, liquidity, of taxable

Louis Conforti

as coefficient of No, return versus is of lots combinatorial. allowable a that's We return you the flow, on when what's Obviously, weight surplus. via different think it it's flow cash Cash primary things. -- combination about of. it's

people Over our to us and years, spoke cutting suspend, the X to unchanged. dividend Thanks. they're dividend, policy last remains

Caitlin Burrows

or does and guess it up? does guess to Okay, happens. And what we'll that go leverage if has kind so, what here? going if I But forward, were mean mean unchanged, remain that to that I of see

Louis Conforti

operate. of should how acted to work we far, that goes the said means this. the that of it's different this, fiduciary rental our combination combination we in That's sides what to up. -- we've it's heaven opinion, the forbid, now as to continue goes trend, thus a I've opinion there No, in and yes, we'll We we everything FFO been share guess that conjunction two point, or what moderate and Board, a of there with -- we a best do or, with But if such. and was and price There's I I'm could them And our between. of factors: up. and lots your I of

Caitlin Burrows

that and getting forward, gives not the and up when just, closer, that's to covenant about going indebtedness over I Okay, the past the you'll covenant it it's so we you requirement? come then -- that year, total violate guys when total guess, think confidence guess, algebraically, assets, to what we're I

Mark Yale

you're cushion you're the at we're where to the growth to quarter. improvement see with an And comfortable going it we're provides. that the Caitlyn, covenant. in that obviously, We're in the basically third of talking XXXX, see if end seeing that projecting about leverage stay

right been truly cash trajectory moving of flows years, So the the a couple and the will but tough leverage EBITDA our or we of in that it's believe start direction.

Louis Conforti

and assets the during as improved And last, that to materially profile. those improved we do we've our tenancy such. continue We've tough years,

And scheme we grand in metrics. in increasingly respect becoming operating center our the on is dominant the financial we in town way be variance that, which when costs, whatever, the and it's said sales square focus missed I minimal you sorry. do our with incremental oh, right, or are that. folks by per thought a question? -- thought trade means to at Congratulations you on And being that foot can our profitable it. XX.X%. I I'm occupancy tenant secondary said exhibited must another I have the areas, -- -- increases We and have All to apparent

Caitlin Burrows

more. Sure, we've got

Louis Conforti

Bring it on.

Caitlin Burrows

in I'm the if the guess that I sense how West that impact there likelihood delayed of XXXX? taxable the would Ridge taxable on any gets income income? topic, to is so, wondering, transition, just And XXXX that

Mark Yale

transitioned our on what assumption is we know, back based here going be the fourth it's quarter. Caitlin, now, in to right

Caitlin Burrows

And during Was like transitions quarter the lender you something $XX to else? that million Okay. related had guys impairment. then or a

Mark Yale

to No, see was assets. X not. time charge, assets on non-cash accounting on you'll the time It's going and from it just that Tier through where value looking is and at book

Louis Conforti

it XX% been we're accretive perfectly years was What XX%, made Tier X ago XX%, X, what XX% years clear we we've doing unencumbered, X%? ago. X%? X%? which but are -- -- X cash, at? of we've X, Tier with

Melissa Indest

X%.

Louis Conforti

X% now.

way, opposite of through schedule, those sudden, these. Dan assets everyone reduced playing -- those there's some else space it we doesn't there's an leasing but assets, those X, by according on are Josh are mean as a assets. come the evidenced that marginal where not quite a putz around don't impairment. going and We've return all are and we out frankly, and So that when to Tier on And some segregated

This So -- process, is asset there's X impairment a kinetic reevaluate way non-cash. no on to it. a so Tier

Caitlin Burrows

some that now, that just suggest whatever potentially that not properties or in of or of recognizing going necessarily? property And through it. was, Got selling terms does you're that process

Melissa Indest

quarter, necessarily. It change, every change accounting through the not really our just evaluation No, technical asset. we and There Caitlin. a was that in by go was no on decision asset

Operator

[Operator Instructions].

question next from line Green Vince of Our from Street Tibone comes the Advisors.

Vince Tibone

always that original was I'm did financing rationale transaction? curious the was or the was the on that announced? ground since financing if lease fall deal the part potentially for of What the seller through plan, buyer's

Louis Conforti

range, prescient. time. onus run? been burden and entire be, to buyer have should -- who's so back and fund, get rests but And in I going been it, with raise my We and very to didn't a think have forth frankly, and close as of money they it. I the saying, You've quite opposed took should ran, there is to was of the because, get it funny the upon a The that money and you to better dough the explained going shoulders. respect quite frankly, and There putzing Take and away, you waiting is amount

put, can't That's them initial way The shekels this really lack think me. is effect the to just locking -- I'll the interest XX-year smart. And call no, of and to gave way, made in opportunity income the it me, one it, as simple, to we simple a we to by get rate, how X%, from or interest if And along get refinance, really X%. they and to the much me a I up the relates we understanding few of your by the way -- of call Plain the this you And really option think million. we in let -- relatively too itself, transaction about of come X.X% instrument befuddles virtue hubris, with smart. so way, really, as question. only with other money do $XX

Vince Tibone

X it bonded rate just this curious. commitment I'm for well, years. you're XX-year point, XX-year expensive? make doesn't effectively, to Like your more though, -- small -- financing, our seller effectively the percent Because But paying a

Louis Conforti

no! We $XX scenario. million? is no, it -- get be guess $XX no, scenario, the would keep back, no, -- no, what -- best a million land we which get to or No, get million the let's can't we $XX the So do no, property, the draconian refinance. and They

Mark Yale

$XX million.

Louis Conforti

million. $XX

Vince Tibone

I'm talking makes seller just No, piece, the just financing where the rate... about that basically interest

Louis Conforti

We're paid that We're getting they... interim, paid. while getting during

Vince Tibone

million net, you a and paying only netting XX% on paying to there. on the that. went thought from paying up from That's yes, the net effectively what But rate my -- years. paid But point interest basis. you're $XXX rate, went Because to out curious X you effective X.X% I you on or sorry, just how net. a go the paying, million -- XX% about $XX on first for a getting what a you're rate was

Louis Conforti

going -- wrong I'm way! No! handle you're everybody Mark, the Goodbye, No, it. leaving. no.

Mark Yale

Maybe can now. this take we offline

Louis Conforti

you. better job done We explaining. should We love have a

Mark Yale

those We line. we're X% rate. use proceeds line going pay our Bottom interest were going to is to get to down

than point. less this Our line at X% is

the short we're more need to table. And take what I off. term, going million smart that get So $XX are on these people And bit expect who investors bridge that think focus financing the put on, actually to out. we're fully They accretive. paid in a loan to

Louis Conforti

risk of $XX the they the it's -- risk that binary. lose don't. Think Woops. They of Think if million.

Vince Tibone

No, Right. that Thanks. makes sense.

Louis Conforti

-- job really else a have got? No, deal. what it. two really, you'll done should I no, But right, explaining of we say -- It's a can a it's All I get smart better think I really's?

Vince Tibone

to get or financing viable months redevelopment and where in curious broader the just availability today for love the Tier X selling today, source mortgage capital of the thoughts No, could a private market debt malls negotiated being funding mall think and your you're maybe, market on market future X or if malls how I'm is you versus ago. be plans. just either I'd deleveraging seeing

Louis Conforti

And hell have equity of evidencing do X there's what and and to thesis? infrastructure. beginning aggregation are that. very happening whoever there institutional little really You investors I'll price start really, really, Is is I saying, -- really's discovery. listen, we're private built an operating and smart But call hearing think of is a -- us I'll an guys still --

guess, price the I up getting because still So there's in discovery, there's to albeit best we anybody quite little that reason very be XX/X. are is what than And we're off as bring more doing. no our built interested subsector. our hubris; focus in an -- people formidable our was we the And frankly, as behinds I business. in that's, infrastructure formidable our work But our,

more getting more. everybody, to want any obviously the interesting, multiple, data not really there, it's our it's of So inure of lot will binary. a again, which to benefit I sales because but out disclose don't But

or e-commerce either physical You're retail.

primary either You're versus secondary.

else. somebody a that whatsoever. It's instrument. blunt-edged been versus nuancing there's just us either no You're Does And help? been

Vince Tibone

just looking today. sell curious, now that the so to statement do you... any a like in No, doesn't clarify, I'm fair malls it it does. market or just to you're Is sound

Louis Conforti

market at I've made in We're corporate, the that all specific. clear, times, it's whether and asset whether perfectly it's

how Here people. visit robust. assets and have assets, proved was which enough we goodness, from what our is of, now rid many out, thank Come to get Mark smart have what --

don't know, So rid we them, XX, of So we I got of were those XX? Mark? got drags. but rid

via done it's are multiple trust of and circle coming the out there's expansion, inure -- leasing, us, time, Now someone it. offers there, we'll If we'll good inure the to result, that benefit price, will as if we've foot, are is get, will me. activations by per our an sale evidenced a what a asset we're people coming, that their doing, people big and increasing That sales square the boxes. fulfilling

Vince Tibone

wondering last are you underperforming able the you one I'm sales One how could impacted by share fallout tenant tenants. just on was basis? of sales tenant Like to quantify enough. much for Fair growth growth same-tenant me. a if

Mark Yale

Yes, it the say that growth. it. but part we we exact would We number, had don't And had of certainly certainly I organic maybe, growth. have comp is

Melissa Indest

We did have comp growth.

Mark Yale

it the drove as getting organic base, improving maybe well. probably you is But underperformers. of that between in, factor just rid comp growth So increase had XX/XX, absolutely that that we if

Louis Conforti

you. along with Vince, So question I'm actually, the I'm asking actually

organic? So how much was

Mark Yale

Like for like...

Louis Conforti

like. for Like

Mark Yale

by subtraction, the... reducing Versus addition

Louis Conforti

So like that it think didn't and even That's that, feel interesting. it better. I actually makes was roughly XX/XX? Yes. me about

a heck think tenancy been or process and from you right. going to replaced in a if an I modulating adjusting a ratio you our about which going is we've like on, that. have. it about everybody just Again, that in So hand admittedly aggregate there's of shows All didn't got? think not What of else and basket, XX% exhibited standpoint, like-for-like. an kind that it those

Vince Tibone

Thank color. all you. that's helpful No, That's have. I really

Louis Conforti

to $X.XX oh boy, You're Boy, You three say, not assets? NAV. think of there's going

know. You

guys minute. right You the Wait are a down street.

So --

Vince Tibone

can talk about Westminster. We I know.

the where... So one there? the yes, That's plan what's

Louis Conforti

We to what and and Is $X own $X.X is it own, XX $X it million acres, we acres, XX million? million?

Mark Yale

million entitle. get $X you when it's the Yes,

Louis Conforti

this. hmm. X the get When do XX let's so entitlement, -- times you

real value. about some So What Pearlridge? What about...

Vince Tibone

The you the impossible are but the on really is Westminster that's to in right? expensive, done. get entitlement like Because it's quick, Just dirt in where California, process? anything challenge

Louis Conforti

Yes, it it is. Yes, is.

Vince Tibone

that So something X this years, is or this horizon? in longer-term could you, is ground like, broken are be still a

Louis Conforti

derivative selling Oh, for a love this going I going we and -- do be We're process. to you XX again, degrees. again, And Trust mentioned multi, we're sale. ground difficult incremental to to the incremental GDP something and stuff. of would Westminster when yes, assets. be going think hotel, the broken our kind to revenue you have very it's it do, good the of be would anywhere, in do, office, will are we're not always varying cooperative of like not albeit it's before impact my with But can X years, that what And be brother. in which I city me, tax going

hmm, the I So down nodding All had of, yes. road And just $X.XX we kind right, for saw else? head you those X, anything okay. your folks telephonically

Operator

next Our from from Bin follow-up the line is of question a Kim SunTrust. Ki

Ki Bin Kim

I say on... So will congratulations

Louis Conforti

you. it, really my an call Oh, thank really end? meeting moderator. Announcer, don't -- can it, to Don't you. god, We're announcer do done. do you Thank the

Ki Bin Kim

find liquidity some forces. On your ability to interesting

whether from next debt addition So in any or WPG, as to borrowing, announced secured borrowing? I expect some events other should what other I to But year, a maturities. the address think liquidity out-parcel know you've being or of sales this tried kind lot secured more of you've lending selling about it we

Mark Yale

looking to Lou, I strategic necessarily believe for se. us always in not company, But enhance capital liquidity. at per transactions as company. looking there's think on looking and think be the coming to But space into what capital, I would this we're I in the ways the folks ways is sources always of we're to for mentioned, and deleveraging, who we believe bring debt focused think you

Louis Conforti

from like can pretty we believe they a do. folks Faustian creative sound And is and source, and that that there's guys -- you impressive I I'm this, in been Well, list. know capital of always reaching me. a deal out a have type The

Ki Bin Kim

been follow-ups going like that couple got Okay, in project I've Scottsdale back to be I've Glimcher looking year. It's and this so at here. and your feel a I quarter, days. finished supplemental, more the

million-plus about finish You million left still that $XX have have capital -- $XX it. to spend you -- you to have left

hasn't retail, sense quarter X and the maybe of with is reasons elements? residential. that I in different or those curious, leasing know Any progress left, Just use, been And why office it's mixed spent? what's

Mark Yale

Josh gets money completion loaded. back specifically but that the let talk as on I'll talk come which Josh, about table, we're online, towards as the earmarked could about what's off that Yes, expect would ready most is probably to construction of well to final tenant allowance, I maybe, phase. the where final supplemental. with are we But project you typically come And and about

Joshua Lindimore

literally be But quarter right? are we've... here Bin, a maybe Yes, think with some obviously, making I'm we've half, people going to left, with phase, XX-plus, X,XXX X,XXX. numbers about surprised I'm this, mix are feet. final don't the say but there going rough feet the it's quarter think They to we tenants announcements. and that I the use got, Ki like in square next to you'll me hold I have pleasantly it's tight -- -- XX,XXX And Don't to iffy, -- that

Louis Conforti

Come baby. on, little him Come a give preview, on.

Joshua Lindimore

I can't, no.

Louis Conforti

Come on, come one.

Joshua Lindimore

No.

Louis Conforti

a... Starts with

Joshua Lindimore

go, when in just right? everybody anyway. February, like Scottsdale Bin, go to That's Ki visit wants

Mark Yale

what's and it's own square then to happening going space and just condo'ed. somebody's that And feet retail you, remind XX,XXX we've I entertainment we is adding, think, of vertical XXX... But first-level Ki Bin,

Joshua Lindimore

XXX units.

Mark Yale

with Yes, financially. are to that Scottsdale We're Quarter units not XXX involved residential online. that

Ki Bin Kim

midpoint still And the comfortable X% yield? to of feel X% you the at

Mark Yale

Yes.

Ki Bin Kim

to like year? are Tier noncore to from X Tier X moving the next or Okay, and just any last question, assets you contemplating Tier bucket X

Louis Conforti

again, methodical. speaking, but quantitative good a say the use question. I'm process really don't a good We a it's is,Can was, no. going to grass, good the we have comment really not the It's I'll and that's -- check. a multivariant, grass contemplate, question And phrase Can have, question. we first That's or

and guys, we refined talk made just let's it's at wrote We and variables, it end process have back of output model. of But of the say, have a Lisa which I X But it the about to we way workable. directs, these and year driven pursuant and the when, the it and primarily it. then --

Melissa Indest

And yes. Correct, will... we

Louis Conforti

how probably to you'd that's be. want And us

Melissa Indest

Bin, We'll report. we our in any with so we'll you quarter, analysis that year-end do fourth We'll do tell the that Ki conjunction changed if in classification.

Ki Bin Kim

just see same decisions. be of by question the if those guidance that impacted Okay, and I sort NOI could to asked

Mark Yale

No.

Louis Conforti

only Yes, or going -- looks no, a sorry. question. think X I'm Josh I'm XX great we're lose Forever you apologize. that job. like sorry, I did to X It I oh, ask didn't

Operator

a is Burrows follow-up of question Caitlin Sachs. next line from Our Goldman the from

Caitlin Burrows

the one piece. just maybe Scottsdale So follow-up quick on

X.X% So $X like $XX if we at NOI. look of, it yield. million the million like at That the spend expected extra be roughly call midpoint would say, roughly and, of

recognizing none So Any are I of that million, wondering, guess just it details roughly you today? $X most, I'm there? all, of

Louis Conforti

And there, nothing not, Josh I say. of $X million but it's don't around and I'd was so egg. big today. being whether egg, giving goose right recognized, as is going opine or nothing Big the -- me goose I'm to not

Mark Yale

believe. not that's I just full It's But that the phase. one block,

Melissa Indest

the that's one. If The blocks. more is middle it online only involves not one

So we...

Joshua Lindimore

online. tenant the -- comes tenant The not It less a XX-plus the Caitlin, me -- comes thousand here is I to first don't first online month feet, a -- again, hold think in but think than square it in, I November. month,

Caitlin Burrows

or call is actually piece for it spend Right, so, online? -- just so the, $XX related that larger one it $XX a of block, that is so is to million that million and or

Mark Yale

we called point It the at X. Phase what relates entire, to one either

where square we've retail. we the blocks, as Block which residential So includes there are have, block already has feet well condo'ed X an XX,XXX as and first-level so of office retail about it building M,

So all that. it incorporates

chunk factor that a of you that in, certainly already online. So when is

is million XX,XXX a it's will But about incremental feet of So income, square you you're not that be taking can but to really, square you the there on. talking put the foot what $X tune talked about. per rent

Melissa Indest

certainly and Yes, numbers online we half can I not up be you Caitlin, it in But neighborhood that's the look follow at with somewhere get but might at that yet. of all information. you, can the

Caitlin Burrows

income maybe not? it. out-parcel when or got we doing, you guys create that are about the those think do Okay, taxable Then sales

Mark Yale

do, do they of But in in can that taxable through terms generate, of the bite cases, size manage kind They but most relatively yes, you that's involved. just income.

Caitlin Burrows

you Okay, thinking about you about out-parcel guys already announced, we touched think before, have on as your you you amount and was beyond sources of today? then opportunity just what could that do continue know already deeper sales and the think is think when do much liquidity there, future how

Louis Conforti

those XXXX we sorry, because already. bonds those we've I'm April right, have You're -- oh, handled

Caitlin Burrows

on question's next those. My

Louis Conforti

And now line? have how do right the we -- then six capacity on in much have we

Mark Yale

shape. you million factor think at end proceeds, in of good roughly, $XXX we've basically, in lease is when the I ground liquidity almost We'll looking have, we're year We're at what projected.

Louis Conforti

But is just Yes, -- it we So for us, stuff? it's maybe. arbitrage. as out-parcel there Maybe. an more regard

is tenant somebody at seller that is and REIT. It of a X, weighted good. our objective we a do. there's what and obviously, credit net cost a a has capital delta borrow average know the buyer than cost the You're has there's we is, and different leased And or -- just

doing the to and in first guys are more, but again, you be might pretty we've it, there been, yes, know. So methodical

Caitlin Burrows

essentially Got for you've XXXX, most recognized already think just in the you're now And million to gains or of $XX then of terms expected $XX it that. guiding like But it, to I okay. all million. seems

So to into this XQ reasonable just assume of gains wondering, continue I'm those it year? be I wouldn't guess that

Mark Yale

on back to estate. that the million to from real out selling need relates what do see is number income $X you actually You statement. About depreciable the

not definition, So only it's property. FFO in unappreciable still got the for proceeds; included the just NAREIT

Caitlin Burrows

seems it would that this and has continue of Do rise, agree the that line makes course continued to that year, with you like it it guidance? the guess I that, over Okay. it seem to. of like

Melissa Indest

to expect we from that update it range the that's did have year. close quarter. this We Basically, last

Caitlin Burrows

the seems since uses, know the address for to guys the the where getting Yes, like credit were you used way, along of is generated then year, it And Lou, liquidity have though, okay. that's these maturity line of yes, so other next about, It like I April is. are great. kind talking proceeds you

further that's and the go paid maturity, should So into wondering, as expect that I credit just we XXXX was guess to line of address up you actually when I go we off? actually do

Mark Yale

proceeds of the on end and capacity will the credit credit third have just from sales. remember the we the use quarter, built we've Corner the X expectation facility. to But facility, proceeds do another the within the lease we Four and the that our transaction, next expecting from XX out-parcel months $XX at it's we ground from were we're Yes, of where million

Louis Conforti

as well FFO. As increased

Caitlin Burrows

Okay, and then on...

Louis Conforti

assets, our beg look at I things have than the out -- done and other we transformed Scottsdales the While you you we've guys, ubiquitous and go what guys, the Austins.

of step-by-step -- definition -- vibrant. they're and kind And Wall kind -- talking got But -- spending And stair-step, those we dough. you've aren't, linear doesn't what, addressing basis. They're they're it. and guess not have we increment dough. are guests and of love a just dare And tenants, our perform we it kind that it. We if And Street the of to are that say diversifying changing -- I spending more more leasing. of look. tenants come are at at real-time on to leasing. I'm Look the Look

come to and got You've look.

Caitlin Burrows

one Forever the last then XX. and Okay, on

So only is there. you bankruptcy you're expecting X or X did XX's mention that that filing, closures Forever less. And versus

your is XX, list wondering rent just outlook original So versus Are how at irrelevant? others point? I adjustments, Forever unknown that have guess just this what much to the was I'm expected known is and or for

Joshua Lindimore

an standpoint say as want I lowest our pertains portfolio going go and put pertains out to they're of landlords. will do. is to cross don't is board. general all I They're negotiate way to of they to back going it probably you, want the the to more the them, what from look, -- list tell in occupancy with -- to a to it As

So...

Louis Conforti

profitability. i.e., Hence,

Joshua Lindimore

Right.

anticipate So we'll on a major take couple -- but I'm don't of a things, I haircut degradation. sure any we'll

Operator

your program the participation. ladies Thank Thank for today's does this you. today's question-and-answer you, of conference. as session gentlemen, include as and well And

disconnect. now day. may Good You

Washington Prime (WPGGQ) 24 Oct 192019 Q3 Earnings call transcript