CBL & Associates Properties Inc. (NYSE:CBL) Q4 2018 Earnings Conference Call Transcript

Feb 08, 2019 • 11:00 am ET


CBL & Associates Properties Inc. (NYSE:CBL) Q4 2018 Earnings Conference Call Transcript


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Good day, and welcome to the CBL Properties Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference call over to Katie Reinsmidt, CIO. Please go ahead, ma'am.

Katie Reinsmidt

Thank you, and good morning. Joining me today are Stephen Lebovitz, CEO and Farzana Khaleel, Executive Vice President and CFO. This conference call contains forward-looking statements within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties. Future events and actual results, financial and otherwise, may differ materially.

We direct you to the Company's various filings with the SEC for a detailed discussions of these risks. A reconciliation of supplemental non-GAAP financial measures to the comparable GAAP financial measures was included in yesterday's earnings release and supplemental that will be furnished on form 8-K and is available in the Invest section of the website at cblproperties.com.

This call is being limited to one hour. In order to provide time for everyone to ask questions, we ask that each speaker limit their questions to two, and then return to the queue to ask additional questions. If you have questions that were not answered during today's call, please reach out to me following the conclusion of the call.

I will now turn it over to Stephen.

Stephen Lebovitz

Thank you Katie, and good morning everyone. Before I talk about our results for the quarter and the year, I want to start off with some commentary on our new bank facility, which closed last week. This $1.185 billion financing which recast our existing term loans and lines of credit is a huge accomplishment for CBL. It provides us with the runway and flexibility to achieve our redevelopment operational goals over the next several years.

Sixteen banks are part of the new facility and we appreciate their support and vote of confidence. I'm also proud of everyone in the CBL organization for all their hard work and accomplishments in 2018. We have an incredible team of professionals at CBL, and I am constantly impressed by the dedication and creativity they demonstrate every day. We are pleased to deliver results in line with expectations set forth at the beginning of the year, notwithstanding the challenges that materialized. This result was accomplished despite bankruptcy filings by two department store chains as well as overall pressure on several national retailers.

In addition to the new credit facility, we successfully executed a number of important financial goals in 2018 with more than $340 million in financing activity. This included two non-recourse property level financings at very favorable rates. We also completed more than $100 million in gross dispositions, supplementing free cash flow and contributing to lower total debt at year-end. And in January, we completed the sale of Cary Towne Center and a deed in lieu on Acadiana Mall which will reduce overall debt by another $160 million. As I stated, our operational results for the full