Christine McElroy

Question 1

Christine McElroy's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q3 2019

Nov 1, 2019

Question

Christine McElroy of Citigroup inquired about the newly formed capital-allocation committee with Exeter Capital, its level of control, and the dividend policy for 2020, including the possibility of an annual payout and the impact of NOLs.

Answer

CEO Stephen Lebovitz clarified that the capital-allocation committee is advisory and will leverage the experience of new board members Michael Ashner and Richard Lieb. He confirmed the committee is a new mechanism to focus on financial strategies. Regarding the dividend, Lebovitz stated that preserving cash flow for redevelopments and debt reduction is the priority, and the phrase 'if any' was intentional. He mentioned that an annual dividend is a consideration for 2020, but no decision has been made, and NOLs are not expected to be a significant factor.

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Question 2

Christine McElroy's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q3 2019

Nov 1, 2019

Question

Christine McElroy of Citigroup, along with Michael Bilerman, questioned the formation and control of the new capital-allocation committee with Exeter Capital, the future dividend policy, and the costs associated with the Exeter agreement. They also asked if recent sales growth was influenced by survivorship bias from weaker tenant closures.

Answer

CEO Stephen Lebovitz clarified that the capital-allocation committee is advisory and leverages new board member Michael Ashner's experience. He stated the dividend policy prioritizes preserving cash for redevelopments and debt reduction, with a potential move to an annual payment. Lebovitz confirmed the costs for the Exeter agreement were not significant and that sales growth reflects both the removal of weaker tenants and organic growth from core retailers.