Pennsylvania Real Estate Investment Trust (NYSE:PEI) Q1 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 02:00 pm ET


Pennsylvania Real Estate Investment Trust (NYSE:PEI) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, and thank you for standing by and welcome to the PREIT Q1 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Heather Crowell, EVP of Strategies and Communications. Please go ahead ma'am.

Heather Crowell

Thank you. Good afternoon, and thank you all for joining us for PREIT's first quarter 2020 earnings call. We hope you're all staying safe and well. During this call, we will make certain forward-looking statements within the meaning of federal securities laws. These statements relate to expectations, beliefs, projections, trends, and other matters that are not historical facts and are subject to risks and uncertainties that might affect future events or results. Descriptions of these risks are set forth in the company's SEC filings.

Statements that PREIT makes today might be accurate only as of today, May 21, 2020 and PREIT makes no undertaking to update any such statements. Also, certain non-GAAP measures will be discussed. PREIT has included reconciliations of such measures to the comparable GAAP measures in its earnings release and other documents filed with the SEC.

Members of management on the call today are Joe Coradino, PREIT's Chairman and CEO; and Mario Ventresca, CFO. We will limit today's call to 30 minutes. Our prepared remarks will last approximately 15 minutes and then we will take questions. To allow a chance for everyone to ask questions, we will allow one question and one follow-up per caller. Thank you in advance for respecting our time constraint. Joe?

Joseph F. Coradino

Thank you, Heather. We hope everyone is healthy and strong. This call is not about quarterly results. It's been over two months since we started closing our properties and began working remotely. Our headquarters and a significant number of our properties are located in COVID-19 hotspots. Nonetheless, we wanted to have this call to discuss the future of our business, how we navigated the challenges thus far and how we are positioning the company moving forward.

As of tomorrow, we will have four of 21 malls reopen. We are operating in some of the more conservative states for reopening, but we are making progress. Our New Jersey properties are now offering curbside pickup for retail. By the end of this month, we expect some larger properties to open and hope that by late June, all of our properties will open. Of course many of the uses the mall sector pivoted to such as entertainment and dining, will be later in the recovery process due to social distancing requirements. Unfortunately, there'll be some casualties in these categories that won't be able to sustain reduced capacity. We also know the weaker retailers are finding that there is value in their brick and mortar locations as they struggle to make it with an only online presence. While we expect, we will balance these challenges is the interest from new and more diverse