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    Craig Schmidt

    Research Analyst at Bank of America

    Craig Schmidt's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership

    Craig Schmidt's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q4 2019

    Question

    Craig Schmidt of Bank of America inquired about the sales volume impact of replacing apparel tenants with new uses and asked for an assessment of the leasing environment in 2020 compared to 2019.

    Answer

    CEO Stephen Lebovitz explained that new tenants like Dave & Busters and Dick's Sporting Goods are expected to generate three to four times the sales and traffic of the former Sears stores they replace. He acknowledged a near-term lag in results as these new tenants open. Lebovitz stated that the 2020 leasing environment feels similar to 2019, with positive sales trends offset by ongoing challenges for some retailers.

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    Craig Schmidt's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q4 2019

    Question

    Craig Schmidt inquired about the sales volume impact of shifting from apparel to new tenant categories and whether the leasing environment had changed in 2020 compared to 2019.

    Answer

    CEO Stephen Lebovitz explained that new, non-traditional tenants generate significantly higher traffic and sales, citing a 3x to 4x increase in redeveloped anchor spaces. He noted a time lag exists between a tenant closure and the opening of its replacement. Lebovitz described the 2020 leasing environment as feeling similar to 2019, with positive sales trends offset by ongoing challenges for some retailers.

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    Craig Schmidt's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q3 2019

    Question

    Craig Schmidt of Bank of America Merrill Lynch questioned the drivers behind the negative 11% renewal spread, asking if lease modifications were the primary cause and if the pace of rent restructuring was changing. He also asked if CBL gains more control over leases during these restructurings.

    Answer

    CEO Stephen Lebovitz confirmed that restructurings with at-risk retailers are the biggest contributor to the negative renewal spreads, as the company aims to preserve occupancy. He noted that improved tenant sales are helping, but the environment remains challenging. Lebovitz explained that in restructurings, lease terms are often shortened, which provides an opportunity to bring in new tenants at better rents later, and CBL has selectively taken back locations with better redevelopment potential.

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    Craig Schmidt's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q3 2019

    Question

    Craig Schmidt of Bank of America Merrill Lynch questioned the drivers behind the negative 11% renewal leasing spread, asking if lease modification restructurings were the primary drag. He also asked about the cadence of these restructurings and whether CBL was able to gain more control over leases in the process.

    Answer

    CEO Stephen Lebovitz confirmed that restructurings with at-risk tenants were the biggest contributor to the negative renewal spreads, as the company aims to preserve occupancy. He noted that improved tenant sales are helping, but the environment remains tough. Lebovitz added that during restructurings, lease terms are often shortened, providing future opportunities to re-lease the space at better rents.

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