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 conference 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's 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 a 10-K/A containing the year-end 2024 financial statements for Penny Intermediate Holdings, LLC, an 8-K containing its April 2025 monthly reporting package and its quarterly report on Form 10-Q for the period ended March 31, 2025, 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's 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, 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 further 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, Thursday, May 15, 2025. [Operator Instructions] I will now turn the call over to our Principal Executive Officer, Neil Aaronson.

Thank you, Jessica. Welcome, everyone, to the Copper Property CTL Pass Through Trust first quarter call. Thank you for joining. As discussed last quarter, Newmark is aggressively marketing the sale of our properties on 3 levels: as a whole portfolio in sub-portfolios and individually. The process is advanced and going very well. We've had tremendous interest at all 3 levels, and we've received a significant number of meaningful offers at all 3 levels. As we are in the midst of negotiations, we will not provide pricing level guidance at this time. I also want to note that as part of the sale process, Simon exercised their modified ROFO Rights as to 2 properties, the Dadeland Mall and Ross Park Mall. We anticipate closing on these sales later this month for $15.6 million and $5.3 million, respectively, representing cap rates of 7.7% and 7.2%, respectively. Since the Trust's formation, we've sold the 6 distribution centers and 39 retail properties, not including the 2 aforementioned 2 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 Bruno sale. We've sold 22 of the original 29 option properties and 17 CTL properties. 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.

Thanks, Neil, and welcome, everyone. On May 9, we filed an amended 10-K, which we've also done in the prior years. The master lease requires JCPenney provide us with their year-end audited financial statements, and the SEC requires that we include those in our 10-K. While JCPenney's year-end is January 31, ours is December 31. Therefore, while JCPenney has consistently provided their financial statements within the time period required under the master lease, this is beyond the deadline for our 10-K filing. Thus, each year, we filed an amended 10-K to include their financial statements upon our receipt thereof. Including the distribution we made on Monday, to date, we distributed $1.4 billion. It represents sales distributions of $1.04 billion and rental income distributions of $372 million. In terms of guidance, subject to the impact of sales, monthly distributions from operations are expected to be between $7.25 million and $7.75 million or between $0.097 and $0.103 per certificate, supplemented, of course, by net sales proceeds as sales occur. And with that, we'll open the call to questions.

[Operator Instructions] It looks like there are no questions at this time. Therefore, I'd like to turn the floor back to Neil Aaronson for closing remarks.

Once again, we just want to thank everybody for joining the call, and we look forward to updating you with our future results. Thank you.

Thank you. And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation. Have a great day.