Q2 2026 Copper Property CTL Pass Through Trust Earnings Call
Speaker #1: Good morning, ladies and gentlemen, and welcome to the Copper Property CTL Pass Through Trust conference call. At this time, all lines have been placed in listen-only mode.
Speaker #1: Please note that today's conference call is being recorded, with an online replay available one hour after the conclusion of this call. Additional information can be found in the investor section of the company's website at ctltrust.net.
Speaker #1: After our speaker's remarks, there will be a question-and-answer period. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Speaker #1: I will now turn the conference call over to Trust Investor Relations representative, Jessica Cummins.
Speaker #2: 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 an 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.
Speaker #2: On the call today, Neil Aronson, the Trust's principal executive officer, and Larry Finger, its principal financial officer, will discuss these filings. In addition, a representative from GLAS, our trustee, will be available to answer questions.
Speaker #2: 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.
Speaker #2: 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.
Speaker #2: 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.
Speaker #2: 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.
Speaker #2: 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 on our website.
Speaker #2: 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.
Speaker #2: 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 ask only one question and one follow-up to allow as many of you as possible to ask questions.
Speaker #2: If time permits, we are happy for you to re-queue for additional questions. I will now turn the call over to our Principal Executive Officer, Neil Aronson.
Speaker #3: 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.
Speaker #3: 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.
Speaker #3: With that, I will turn the call over to Larry. Afterward, I will update you on some other recent developments.
Speaker #4: Thanks, Neil. To date, we've now distributed $1.5 billion. That represents $1.1 billion of sales proceeds and $472 million of rental income.
Speaker #4: In terms of guidance, monthly distributions from operations are expected to be between $6.25 million and $7 million, or between 8.3 and 9.3 cents per certificate, supplemented by net sales proceeds as sales occur.
Speaker #4: 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.
Speaker #3: Thank you, Larry. On Tuesday, August 25, the Trust filed a complaint against Onyx and its principal, Anton Melchianda, in Massachusetts state court for intentional interference with business relations, common law fraud, as well as other claims.
Speaker #3: 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.
Speaker #3: 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 to media reports, we did respond to it.
Speaker #3: 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.
Speaker #3: With that, we will open the call up to questions.
Speaker #5: Thank you. We will now conduct a question and answer session. If you'd like to be placed into the question queue, please press star 1 on your telephone keypad.
Speaker #5: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue.
Speaker #5: For participants using speaker equipment, it may be necessary to pick up a handset before pressing the star keys. Once again, if you'd like to be placed into the question queue, please press star 1 on your telephone keypad.
Speaker #5: One moment, please, while we pull up questions. Our first question today is coming from Howard Amster of Amster Trading. Your line is now live.
Speaker #6: Hi. Thank you for taking the question. It's two 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?
Speaker #6: That's one question. And the second was, I wanted to propose well, maybe answer that question, then I'll answer the second one, please. I'll ask the second.
Speaker #4: 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 really be inappropriate.
Speaker #6: Okay. Then the second question is, I wanted to make a proposal, a non-binding 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 1,260 to 1,272, and you're about to in a few months go with the 2% increase from the JC Penney people, is there any possibility that 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?
Speaker #6: 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, be willing to do it, and I think there are others that I know of.
Speaker #4: Howard, as we indicated, we are absolutely evaluating all strategic alternatives for the Trust.
Speaker #6: And on this one, even if we possibly had to pay them, 15 to 20 million dollars, which they had say 22 and a half million dollars, it would be, about 30 cents a share, just to get this thing unwound, is that something is within your talking about, or do you not want to talk about it because it doesn't give you good leverage with them?
Speaker #4: Well, as we said, we're not prepared to discuss anything related to the litigation.
Speaker #6: Okay, thanks for taking the call.
Speaker #5: Thank you. The next question today is coming from Nick Stukas from White Box Advisors. Your line is now live.
Speaker #6: Hey, guys. Yeah, I was going to ask something very similar to the previous question. We read through the litigation—obviously a very disappointing scenario in terms of how that has ended up.
Speaker #6: And yeah, I mean, just wanted to ask if you guys would consider converting to a REIT, doing the uplisting, doing some things that maybe put us in a position where we can continue to receive value from the portfolio and not kind of be left in a situation where we're a bit of a forced seller, especially with this litigation hanging over us for the foreseeable future.
Speaker #4: Nick, when we said we're evaluating all strategic alternatives, we are absolutely not willing to allow ourselves to become a forced seller. So we are looking at every possible alternative to maximize the value of the Trust for the shareholders.
Speaker #6: I think so.
Speaker #5: Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further closing comments.
Speaker #3: Thank you, everybody, for listening in to our quarterly call. We look forward to giving you further updates on our next quarterly call, and we continue to thank you for your interest in Copper Property Trust.
Speaker #5: Thank you. That does conclude today's teleconference webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.
