Rich Hill's questions to CBL & ASSOCIATES PROPERTIES (CBL) leadership • Q4 2019
Question
Rich Hill from Morgan Stanley asked for an update on capital allocation strategy, particularly concerning the balance sheet, including options like refinancing, loan modifications, and senior unsecured note buybacks.
Answer
CEO Stephen Lebovitz emphasized that improving the balance sheet is a top priority, guided by the new Capital Allocation Committee. He stated the immediate focus is on secured debt maturing in 2020 and 2021, highlighting the recent payoff of two loans with 25% debt yields. He also noted that suspending the dividend was a difficult but necessary decision to preserve cash for redevelopments and revenue stabilization.