Copper Property CTL Pass Through Trust (CPPTL) Q2 FY2025 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 call to the Trust's Investor Relations representative, Jessica Cummins. Please go ahead.

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 July 2025 monthly reporting package and its quarterly report on Form 10-Q for the period ended June 30, 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, Monday, August 11, 2025. [Operator Instructions] I will now turn the call over to our Principal Executive Officer, Neil Aaronson.

Thank you, Jessica, and thank you for your continued interest in Copper Properties and for joining our second quarter call. As we announced 2 weeks ago, the Trust entered into an amendment that made its purchase and sale agreement with an affiliate of Onyx Partners Ltd for the sale of our 119 property portfolio binding for a purchase price of $947 million in an all-cash transaction. The agreement is, of course, subject to standard real estate closing conditions. The process continues to proceed at a pace consistent with the scheduled closing on September 8, 2025. Additionally, during the second quarter, we sold 2 retail properties to JCPenney pursuant to their modified ROFO Rights for $21 million. Since the Trust formation, we've sold the 6 distribution centers and 41 retail properties for a total of just under $1.1 billion and a net gain on sale of $149 million. With that, I'll turn the call over to Larry.

Thanks, Neil, and welcome, everyone. Including today's distribution, we distributed approximately $1.5 billion, which represents sales distributions of $1.1 billion, rental income distributions of approximately $400 million. I'd like to walk you through what we anticipate to be the liquidation proceeds. The sales price for the portfolio was $947 million. We anticipate closing costs of 1.5% to 2%, and -- so net of closing costs, we anticipate $928 million or $12.37 per share to $933 million or $12.44 per share. 60 days after the closing, we anticipate releasing approximately $15 million of the $25 million reserve, which is another $0.20 per share, bringing the total at that point to $12.57 to $12.64. And finally, the final $10 million reserve we anticipate after expenses to ultimately be somewhere between $8 million and $9 million or $0.11 to $0.12, coming to a total of $12.68 per share to $12.76 per share. This will be supplemented by monthly distributions of $7 million or $0.09 per share to the extent that we have a full month of operations, which we obviously will in August. With that, we'll open the call up to questions.

[Operator Instructions] We have reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

Thank you, everyone, for your continued interest in Copper Properties Trust. We look forward to speaking to you on our third quarter call. Thank you, and have a great day.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.