Copper Property CTL Pass Through Trust

OTC:CPPTL

Earnings Call Transcript

[Operator]

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. After our speakers' remarks, there will be a question-and-answer period. [Operator Instructions]

I would now like to turn the call over to the Trust's Investor Relations Representative, Mary Jensen.

[Mary Jensen, executive]

Thank you. Good morning, everyone. Welcome to the Copper Property CTL Pass Through Trust Conference Call. Earlier this week, the Trust filed with the SEC an 8-K containing its monthly reporting package and its quarterly report on Form 10-Q, each of which are available online at ctltrust.net. On the call today, Neil Aaronson, the Trust 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 or 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 terminologies 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 sec.gov. 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 11, 2022. At this time, all participants are in a listen-only mode. Following management's prepared comments, the call will be open for your questions. We request that everyone ask only one question and one follow-up to allow as many of you as possible to ask questions. If time permits, we're happy for you to re-queue for additional questions.

I will now turn the call over to our Principal Executive Officer, Neil Aaronson.

[Neil Aaronson, executive]

Welcome, everyone. Thank you, Mary, and welcome, everyone, and thank you for your continued interest in Copper Property's Trust. Shortly after the end of the quarter, we closed on 2 properties; 1 option property for $16 million at an implied cap rate of 1.95% or $103 per square foot and One CTL for a price of $5.6 million and an implied cap rate of 6.4%. The properties generated a total gain on sale of $5.6 million. While we only closed on 2 properties, we continue to be very active in the market and currently have a significant number of properties, either under contract and even more under letter of intent. Consistent with our plan, most of these properties are option properties.

Our expectation continues exceedingly -- our expectation remains to close no less than half of the 16 remaining option properties by the end of this year. We have seen some softening in the market, but with regards to the properties we have under PSA or LOI and the limited number of properties we're currently marketing, it has not had a meaningful impact on us at all.

With that, I'll turn the call over to Larry.

[Larry Finger, executive]

Thank you, Neil, and welcome, everyone. As a reminder, further details regarding the recent sales and our prior sales are available in the sales tabs on the property data spreadsheet downloadable from our website. To date, we've distributed $958 million. That's made up of $120 million of rental income distributions and $838 million of sales proceeds. In terms of guidance, for the balance of the year, subject to the impact of sales, we anticipate distributions from operations to average $7.5 million to $8.2 million or 10.5 -- between $0.105 and $0.11 per share, plus net proceeds as sales occur.

Our NASDAQ application process has been very long, as you know, because of the unusual nature of the Trust. And we are in the late stage of this process and remain confident of a favorable conclusion. And with that, we'll open the call to questions.

[Operator]

Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] We have a first question from the line of [Adam Eisenberg] with [indiscernible].

[Unknown Analyst]

Just a quick follow-up there. On the NASDAQ application process, you say it's in the late stage. Can we get a little more detail around that in terms of timing?

[Larry Finger, executive]

I wish I could. We only have a few remaining steps to complete, but it's difficult to say how long they will take because, frankly, every step in the process has taken longer than I would have projected. And so at this point, I'd just be guessing.

[Operator]

[Operator Instructions]

Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session. And I'd like to turn the call back over to Neil Aaronson for closing remarks.

[Neil Aaronson, executive]

Sure. Thank you again, everybody, for listening and for the questions. And we look forward to speaking to you all again at the close of this current quarter, and we will speak to you all then. By the way, anybody feel free to reach out to us with any additional questions following the call individually. Thank you so much.

[Operator]

Thank you. Ladies and gentlemen, this concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.