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 Investor Relations representative, Jessica Cummins.

Thank you, operator. Good morning, everyone. Welcome to the Copper Property CTL Pass Through Trust Conference Call. The Trust has recently filed with the SEC and 8-K containing its July 2026 monthly reporting package and its quarterly report on Form 10-Q for the period ended June 30, 2026, both of which are available online at ctltrust.net. On the call today, Neil Aronson, the Trust's Principal Executive Officer; and Larry Finger, is Principal Financial Officer, will discuss these filings. In addition, a representative from Glass, 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 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, August 27, 2026. At this time, all participants are in listen-only mode. Following management's comments, the call will be open for your questions. We request that everyone asks only 1 question and 1 follow-up to allow as many of you as possible to ask questions. If time permits, we are happy for you to requeue for additional questions. I will now turn the call over to our Principal Executive Officer, Neil Aaronson.

Thank you, Jessica. We did not sell any properties this quarter. As we previously disclosed, we are evaluating all available options for the portfolio, which may include sale alternatives, financing alternatives, lease alternatives and other options for the portfolio and/or sub portfolios or individual properties. However, the Onyx litigation and certain procedural filings may interfere with our ability to sell our properties efficiently. As we mentioned last quarter, on May 4, the court held a hearing on our motion to dismiss the Onyx suit, and we are awaiting the court's decision. With that, I will turn the call over to Larry, after which I will update you on some other recent developments.

Thanks, Neil. Today, we've now distributed $1.5 billion. That represents $1.1 billion of sales proceeds and $472 million of rental income. In terms of guidance, monthly distributions from operations are expected to be between $6.25 million and $7 million or between $0.083 and $0.093 per certificate, supplemented by net sales proceeds as sales occurred. I'll now turn the call back over to Neil to discuss some recent developments related to the previously disclosed lawsuit that Onyx initiated in New York related to our terminated purchase and sale agreement.

Thank you, Larry. On Tuesday, August 25, the Trust filed a complaint against Onyx at its principal Anton Melchionda in Massachusetts State Court for intentional interference with business relations, common law fraud as well as other claims. A copy of this complaint was filed with an 8-K and is available for download on our website. There have been multiple stories in the media about a purported offer that Onyx submitted to the Trust. This submission is referred to in the Massachusetts complaint. While it is true that the Trust received a submission from Onyx, you should know that we did not find the submission credible. The media descriptions of the submission are not accurate in substantive ways and contrary committee reports, we did respond to it. Because we are in the midst of litigation with Onyx, we will not comment further on this matter other than to suggest that you read the complaint we filed as we believe that will help you understand the facts surrounding this matter much better. With that, we will open the call up to questions.

[Operator Instructions] Our first question today is coming from Howard Amster from Amster Trading.

It's 2 questions. The first is, how long do you think this -- first of all, congratulations on filing this counterclaim. And how long do you think this will cause this to take? That's one question. And the second was, I wanted to propose -- what maybe answer that question, and then I'll answer the second one, please. I'll ask the second.

Howard, I think as you know, the litigation process in America is at best unpredictable. So I think any estimate we would give you would be -- would really be inappropriate.

Okay. Then the second question is I wanted to make a proposal or nonbinding proposal. But if you were able to come up with financing for anyone who wanted to do this deal, assuming you can still get that kind of financing and we were talking about a number like $12.60 to $12.72, and you're about to a few months ago with a 2% increase from the JCPenney people. Is there any possibility that without really -- without impairing the litigation, we could just turn this thing into a plain partnership, borrow that amount of money, let people who want out, say, 1,150, so there's some kind of arbitrage and go forward with that. And if there were some people that had to put up some money to make this happen, I think -- I believe I would, without commitment being willing to do it, and I think there's others that I know.