Pennsylvania Real Estate Investment Trust (NYSE:PEI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 09:00 am ET


Pennsylvania Real Estate Investment Trust (NYSE:PEI) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the PREIT second quarter 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 one of your speakers today, Heather Crowell. Thank you. Please go ahead, madam.

Heather Crowell

Thank you. Good morning, and thank you, everyone, for joining us for PREIT's Second Quarter 2020 Earnings Call. We hope everyone is staying 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, August 11, 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, we will have one question, one follow-up per caller. Thank you in advance for respecting our time constraints. Joe?

Joseph F. Coradino

Thank you, Heather, and thank you all for joining us. We actually miss you guys, and hopefully, we'll see you soon and we also hope that you continue to stay safe. The past few months have been intense and challenging. As a world, as a country and certainly, as a sector, our resolve continues to be tested. It's important to note that our results reflect the closure of our malls for an average of 86 days, nearly the entire quarter. As we entered the third month of the quarter, we had only five properties open. Nonpayment of rent, of course, impacted our results and our liquidity position. As Thomas Paine said, these are times that try men's souls. So we're going to focus this call on the recovery of our sector and the steps we're taking to get stronger.

As of today, all of our properties are open. This is a modified open. It includes capacity restrictions, use prohibitions and a more challenging shopping experience. We're getting close to a goal line, probably in the red zone. And while we shared details on our quarter and you may be tempted to compare them across the sector. But broadly speaking, we really didn't have a quarter. We were not open for business.

That said, upon reopening, we've been pleased with traffic and shopping patterns occurring across the portfolio. We've seen a purposeful shopper carrying multiple bags. We've seen