Copper Property CTL Pass Through Trust (CPPTL) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Copper Property CTL Pass-Through Trust Conference Call. [Operator Instructions]. Please note that today's call is being recorded with an online replay available 1 hour after the conclusion of this call. Additional information can be found on the Investors section of the company's website at ctltrust.net. [Operator Instructions]. I will now turn the conference call over to the Trust Investor Relations representative, Jessica Cummins.

Thank you, operator. Good morning, everyone. Welcome to the Copper Property CTL Pass-Through Trust Conference Call. Over the past few days, the trust filed with the SEC an 8-K containing its February 2025 and monthly reporting package and its annual report on Form 10-K for the period ended December 31, 2024, each of which are available online at ctltrust.net. On the call today, Neil Aaronson, the Trust's Principal Executive Officer; and Larry Finger, its Principal Financial Officer, will discuss these filings as well as other trust activities. In addition, a representative from GLAS, our trustee will be available to answer questions. Please note that during this conference call, some of the comments will be forward-looking statements. All statements other than statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking terminology such as anticipate, believe, continue, could, estimate, expect, intend, may, might, our vision, plan, potential, preliminary, predict, should will or would or the negative thereof or other variations thereof or comparable terminology and include, but are not limited to, the Trust, expectations or beliefs concerning future events and stock price performance. The Trust has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Trust believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These factors, including those discussed in the trust's registration statement on Form 10 filed with the Securities and Exchange Commission, the SEC, may cause its actual results performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a list and description of such risks and uncertainties, please refer to the Trust's filings with the SEC that are available at www.sec.gov and on our website. As such, it is important to note that management's comments include time-sensitive information that may only be accurate as of today's date, Tuesday, March 11, 2025. [Operator Instructions]. I will now turn the call over to our Principal Executive Officer, Neil Aaronson.

Thank you, Jessica. Welcome, everyone, to our year-end 2024 call. As discussed on our last call, Newmark is aggressively marketing the sale of our properties on three levels as a whole portfolio in sub portfolios and individual. The process is going well. We've had tremendous interest at all three levels, and we've received a significant number of meaningful offers at all three levels. We anticipate additional offers over the next few weeks. For obvious reasons, as we are in the midst of negotiations and conversations with potential buyers, we will not provide further pricing level guidance at this time. In the fourth quarter, we sold two properties. Thousand Oaks, a landlord option property at a very strong mall sold at a 2.1% cap rate for $14.6 million. Overland Park, a CTL property sold at a 7.8% cap rate for $2.9 million. Since the trust's formation, we've sold the 6 distribution centers and 39 retail properties for a total of $1.072 billion and a net gain on sale of $143 million. The distribution centers were sold at a cap rate of 6.3%, and the retail properties have been sold at an average cap rate of 4.9% or 6.1% excluding the San Juno set. We sold 22 of the original 29 option properties and 17 CTL profits. We remain confident that the combination of the quality of the real estate portfolio and the advantages of the master lease will allow us to achieve maximum value for our certificate holders. With that, I'll turn the call over to Larry Finger.

Thank you, Neil, and welcome, everyone. I'd like to expand some regarding the Thousand Oaks sales and its 2.1% cap rate. Thousand Oaks was a landlord option property and landlord option properties with the properties that we considered as the greatest redevelopment opportunities. We also had very low rents per square foot. Therefore, buyers don't price these properties on a cap rate basis, but rather on a cost per square foot basis based on projected redevelopment costs and redevelopment. Therefore, we filed $101 per square foot price for the sale is a much better measure of the SAM. Including the distribution we made yesterday, to date, we distributed $1.4 billion that represents sales distributions of $1.04 billion and rebalancing distributions of $357 million. In terms of guidance, subject to the impact of sales, Monthly distributions from operations are expected to be between $7.25 billion and $7.75 million between $0.07 and $0.10 per certificate, supplemented, of course, by net sales proceeds as they occur. With that, we'll look forward to questions.

[Operator Instructions]. There are no questions at this time. I would like to hand the floor back over to management for any closing comments.

Once again -- this is Neil. Once again, thank you all for joining our call. We look forward to updating you in a few months on our next quarterly call.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.