New York REIT Liquidating (NYRT) 11 Nov 172017 Q3 Earnings call transcript

Good day, ladies and gentlemen and welcome to the New York REIT Third Quarter 2017 Management Conference Call. My name is Derek and I will be your operator for today. [Operator Instructions] At this time, I would like to turn the conference over to Ms. Amy Gruchen.

You may proceed.

everyone. morning, Good New call. the third XXXX quarter Welcome York conference management to REIT With Wendy members management Officer, senior us from today are team. Chief Officer, management John Financial Silverstein, and the other of Garilli, Executive Chief This morning, press certain liquidation providing information financial process. and issued New REIT on release York disclosing about updates X, November we a the the be at Company News the press is furnished Form The on in release available www.nyrt.com on SEC. X-K with and our will website section furnished on be X-K. The call also script Form will

we access Company of management the Litigation meaning XXXX. can At constitute Additionally, conference you a call, today’s Private this which Reform the webcast Act of time, of during inform call, are live might in forward-looking hosting are that statements which you made historical, Securities certain would this News within also like to website’s statements the section. not

expectations Although and or results on can materially expressed assumptions, we based we any will from to believe attained. are assurance expectations the forward-looking cause statements those actual reasonable that these could be no reflected give differ in that risks Factors forward-looking filings by We to the are implied statements. forward-looking not release the now update Silverstein. the I Wendy do to a any with undertake duty SEC. Wendy? in time-to-time will detailed and from over press turn statements our in call

of today’s Good Thank plenty you answer will to I call. joining my of and keep you, brief your for morning leave time Amy. all questions. all remarks and thank

quarters been As expected, extremely NYRT. active the third at have and fourth

quarter end into first XXXX. through of year busy be to and expect We the

XX previously sale a interest Worldwide closed quarter, to-date. accomplished we of a RXR. In of completed on to the we third announced me Let what mid-October, quickly Plaza venture the and of sale In review SLG we XX.X% joint in Varick. have the

XXX or Street. XXX XXX and buildings, X XXth West additional West West Street, Street; XXth XXth as building; also an known XXth West Red sold also Bull the the Twitter Street XXX We building;

purchase sale end. Broadway, which the expect before and announced to agreement XXXX we We also year close on

those We stages financial gross per million are and of I the early would a to in diligence. the per various XXXX advanced and to $XX we management either share. close discussions $XXX of Worldwide next with to have at year bidding with $X.XX which to $X.XX portfolio our is compared currently To-date, $XXX or like remainder excluding difference is marketed on by value, additional assets remaining breakdown related The of of the of of year. sales price due is Worldwide Plaza and deals expected The estimate Plaza. buildings being our assets share repaid statements million actively most came of approximately to how three is in NAV debt. entirely sold end with and million

me Let for describe basis this difference. the

deposits assets all reflects around Plaza. from $X.XX share. of Plaza, $X.XX Worldwide the statements. $X.XX interest of different per or of is partial proceeds are asset Of last Varick This been just quarter estimated a per estimated a holders money that for First, $X.XX per purchase and and the currently from the are to on per the XX. have lot with spent agreements share, payable in was negotiations our value represents Worldwide November dividend the will fourth on of our that sale on for The the advanced we the ascribing sold Please undersigned estimate purchase value reflected or XX XX Plaza. $X.XX, share during share with describing is excluding declared. we less time dividend value actively dividend assets represents assets market have of shares per from estimate on value either sold that all The the $X.XX that our to next than current conditions. the Worldwide on $X.XX reflect Management’s hard clarity of Together under remaining there in that this of under November to marketed, value is for our sufficiently $X.XX assets The Worldwide this assets these is agreements. our component total are which we venture This markdown Worldwide strong. our are very be share. with contract. sold remains is that I estimated are or have here the the But Plaza. believe on We of estimated the and of course, contract. for note, the sale of of the yet being not in the but $X.XX rational carrying refinancing carried of we financial proceeds per call $X.XX joint the balance share us strategy excess conviction from sale our brings net Plaza paid amount value

blue expertise to only in produce to Plaza, of the up asset interest capital and XX-year with per fruition, would a NYRT was the tenant repositionings blended fourth allow example, undiscounted $X.X these a are million. of million investment take to once to from of an RXR actions a rate for and its value and range and on costs in by with to capital, $X.X Class billion A the in proceeds refinanced full value billion the will X Using Worldwide the of interest estimates potential. sale combined residual that critical X.XX%. future this the is add be $X.XX capital respect cash Plaza, discussed, XX.X% the Green to nature its necessary with to management $X.X roster we property of This With size and leasing team to the that and refinancing come Management $XXX.X chip implemented or of which proceeds believes billion given asset place. contributed the net interest along the asset Worldwide elevated SL the and over bring talent, of building, As basis. quarter the $X time value with was feet, mortgage for could X Net for may milestones years X of little the excess a share. scope take of the the billion, the square a all

In X-year net also addition, produce estimate $X.XX which over had additional contractual estimate we rents, estimated of generate would Worldwide cash expenses, predictable the cash period. hold the a which flow during we share undiscounted. This an Plaza per the hold for period, is flow X-year of

the asset over to talent time, As you can time. of some take and some is greatly luck, value may this increase while some see, there certainly only the it potential

plans, will these like that uncertainties, property. Of paying New obligations, is no joint estimate, in including York estimate projection, value that joint increase in to on various capital of City any venture’s to course, or equity the subject venture actions and There be market the rental management’s estimated markets business assumptions execute successful the financing impact taking assurance the and these the tenants the and the the is and actions will various conditions generally. result ability in

estimate GAAP at offers right desire opportune mindful the flexibility time While interim management receive each we the than detail at also financial And asset. points, that time including sooner we transaction into under use to sales and we in as From the reflected asset with for position the to to ascribed our the we evaluate to to like the I of purposes, holding period rather venture future related related well our to liquidity go of in seek purposes. on very as of the some Generally operating of and NYRT sell accounting our value. receive are flow estimate as capital expenses sale. as accounting expenses liquidation liquidation, of is Plaza Because value shareholders. timing for we these to the most do X management asked maximum recently to any spot the to to for estimate the from expect value, well exempt return joint seeks amount difference Worldwide cost varies accounting the so how for and why as speaking, NAV transaction value. shareholders treating price entered later. maximize as associated expect is cash we into a which for how all Plaza exact of we and statements The at are the entirely carrying would management’s Worldwide data the for expenses,

tax which X/XX/XX $XX of the venture debt early in joint million transactions. the billion. XX.X%. $XXX for $XX however, net This Specifically, for $XXX fourth refinancing the Further, since took our quarter October, balance result until financial the asset close joint accounting ownership so statements of of since was, Worldwide is of value deemed equal uses Similarly, as cash the is a accrued defeasance flow end refinancing third purposes, year use Worldwide be at deducted sold, and of was value and million quarter, in. $X.XXX million. a financial did costs NYRT’s the not venture was to quarter, of essentially as if ascribed Plaza is assumed million transfer The for to in paid the approximately the as the is place Plaza statement financial statements the actual or of one added the in the third

or financing asset. is and as better market at will the liquid X within a and great that estimate the bids for of there financial $X.X The sales other NAV million less aggressive. will markets get each a value with at property. as but million, $X.XX of of of there now for statements knowledge of our liquidation assets of based asset as share. the or and the same. Overall, to of flow, on assess per open statements. to of the sold When our wide have will future actual year math, into cost remaining to the deal $XXX on equal of million for for based the are to be including plenty JV, forward, arrive the bidders X/XX/XX were understanding billion, defeasance realities. estimate, million our presented most that believe $XX ventures more we million capital value the accurately Thus minority going you joint cash the least, multiple very business the the fairly value for Worldwide total In per net accrued, quarter will $XX assumptions results plus added the transfer the for $X of entering debt, less the of do you fourth share the reflect the $X.XX If $XXX financial $X.XXX interest, $X.XX the with debt for $XXX will less billion assets, the or actual of refinancing stay a the value carrying more We on of million purposes NAV marketplace Plaza quite the the revised you plans assets is not less tax, respect

However, cases, equally prior clear in well pricing, most is off peak. it that is its

With wrong. of XXXX, higher our and our market portfolio. results is question the concessions free generally our in little XXXX TIs in buildings, form in York very pricings. vacancy the of most office the rent landlord sales well including was more submarkets process that sold their of New defect estimate Broadway, we expected had We In There the please analysis. demanding at/or buyers are more the in City, occupied recent in would our all which the around of many office with exception no for the from underwrote case and tenants perspective leasing of

to New we reflects projected. a in many NAV Based the were process, in bidding that our difficult well-leased of learned, competitive we disappointed have assets, we a fair are XXXX both retail we on to achieved retail Not and that have to is we uncertainty perspective achieved a already for covering these hotel that accurately as finding hotel, more now market ground the cost high the the costs lease the are tenants. the what the that labor, the reflected have even. location been the value payments, to Results tough. attractive robust mark has X are what our to still the good. City Broadway, very a done sellers less price current somewhat is manager. prices building, the fixed today. values. and which with will vacant on the price buyers estimate the the fair at price based regards With described is breaking While York which market assets primarily significant in price determine and physical we and To the make to surrounding reflects to to confident the surprisingly, only the we approximately remaining lease can from are, best revised union hotel in After assets I not underwrite we encouraging. our we given Viceroy, retail at for and demand buyers is work, math be operational turn still basically condition of turnaround old, market, get of than believe escalating from perspective The factor existing terminate ground years course, comfortable buyers and high

will have accordingly. I to turn At continue adjusted Q&A. this to like the search this for operator for We would for right and buyer point, our expectations the it pricing to asset over

McGrath, will Our of Instructions] Evercore. [Operator line the first question Sheila come from

from $X press Plaza? that I morning. good a to want billion Wendy, Worldwide of that is yes implied clarify Hi the calculation, is release, assuming on value just the XXX

is, Worldwide residual X-year Plaza, as answer the future period a X-year implying it from and that a for is property hold of $X cash the billion The hold assuming period well, flow during the yes. value

Okay.

depreciation, the of the is XXX if So correct? between it’s part flow cash XXX% part Plaza, the difference from the your that it’s wouldn’t us you assumed one time, more and just XXX difference giving that between of mind and Worldwide the is

Correct. which little filed will with do script, so But we don’t Essentially, knows, a just normally X-K, be right an call. my the after yes. everybody

the management Worldwide absolute future that took quarter. orange of possible. said accounting will, is the that apple to bit regarding standpoint and impact fourth accounting the if presentation available in the reflect third it it everything is place we people clear and Plaza. as the appears value, reread essentially, of the fully of said, for will so from between as So doesn’t an transaction, little quarter I refinancing all the you be But have a as the the Because difference

tax. Okay. in XX% less I you But selling transfer And the transfer then have than thought, tax would interest, limit the there?

the built That, estimate accounting of assets trying a you near financial presentation, to because, part which are sold to the liquidation fairly statements in narrow term. of again, is it’s under is field accounting, assumption all assume we accounting are puts liquidation that really the in or accounting deliver the why into again, terms point that

presentation that longer, sold that So, of shows latitude, dictates financial course, onto which the in has latitude term. these standpoint, course, accounting the to is from of be assets near management, but assets to a hold exercise statement to what liquidation

one is, So assumes B, change; sold the presentation and valued that the doesn’t within asset A, at $X.XXX billion, it’s that year. that

which reality, reality, accounting things tax, those the become XX% period So that it presentation. one the operating what’s XXX% X-year seller within of property, XXX% which trigger trigger the tax the it’s of less flow, Obviously, a be cash does triggered. sold, as in But meaning doesn’t assume the year net because it reflected transfer a the buyer cash flow, in of the and from does not extent expenses. then would interest the of uphold transfer will that flow to include is cash would

then the transfer assume And savings some Okay. on that tax? does XXX,

to fact It and sold, purposes years assumes that X.X% of put and and to be by it’s passing, something in for assuming would party a transfer the number. on resolved this different to of that by virtue XX%, sold presentation, no RXR the time may virtue be that of that yet SL XX% happen. years in X sold we right the the there’s tax third because it But assumption we have course, to Green assuming of assumed the X

a of Worldwide XXX in only the of closed already lot selling on just part back a a I why there the then and first in dividend you the transactions? will on second, isn’t higher on on but dividend Okay, Plaza, queue get since of have

the no the all And a to particular no respect order. had some we management policy. interest. dividend Obviously, recommendation board pay there’s proceeds more with on cash cash. that and dividend expected not then the or pay has at cash particular just there in dividend and of the further than pay the the refinancing It’s what point, to down either to is from a decision to of we indicated and is made net other a reason Yes, based used the debt the earlier sale

Okay. the I get line. in back will

Sheila. Thanks,

The will Lewis, next question of come the Michael from line SunTrust.

Thank you.

on you One from of was was here what color that you could a a decrease little the in changes value $XX ago, gave in and quarter give the maybe wasn’t the million Plaza last visible and quarter when the last why it estimate? Worldwide just

described I plan management’s it us different implement made again, Michael. good allowed believe as presentation as for The at describe are standpoint. than building. was based in plan to is have and I it a it’s value a clear beliefs the to we have Those frankly, went business go the under substantial third won’t the interpret from time quarter Everything putting to fact, and of for be very is, this we what disclosed management described asset last a lead to this that That’s longer the accounting obviously accounting. exercise increase hold in requires accountants through reality, what which it quite question, to we it, just would I on to which in will through I not have liquidation not and what, what statements. estimates that is financial is at until all together comment all not purposes It Yes. the accounting through was this liquidation gone how liquidation that

transaction a $X.XXX is billion. liquidation assume it’s within good deemed is took XX-month at value under That period. further accounting, value again, the which sold accounting fact, believe plan it’s They deemed they again, appropriate this a asset not gap, the and our financial worth and hold the treatment, a reasonable happens, which, that because it’s of place So narrowly longer the plan. we does to value, currently is, business different because it management’s liquidation is passive defined is and you gives that to asset accounting estimate very in value. what but or Whether the create from the

understand. I Okay,

thought the a net changed that estimate if liquidation update release On a materially sale press you said it. would I call, value in conference John last your

press you if why that or re-estimate happened estimate with different, us think I think will it’s why in just do it future that you Broadway. so to the you you at But if it point in expect And you do sales, don’t that don’t know it do XXXX or let do quarterly? you this release?

I question. like John answer that

Sure.

knowing it release today relates to at material going large and a XXXX think, be the would to this days speaking, update did covered got were We knew earnings at it. to out that But unless it a a was go-forward we look coming was that the a be here there later NAV hit out. have asset. generally was with number the the release, dependent really the piece, that, specific and you basis, on specifically huge to the because due not we materiality, [indiscernible] it write-down we we few quarterly I will on, yes, So coming XXXX on include week overall

really truth The individual XXXX, other there Worldwide aren’t assets that and could that impact. have many material a is than Plaza

hear particular But it. very why to NAV, have on would a management-revised the have you call. lot also to revised we NAV accounting wanted as of risk of on you a It’s I at have moving And NAV and we the we there’s it could it one it’s distorting described just I what think whole this. because an tough see, picture. a based you isolate deal, pieces have as revised

that picture the coming was information our complete whole short a the said, out was at thing John to was get of do that all release As at the picture. that day, call investors in the could relatively judgment one best to of It was time order. end so the our

at In Okay, stock adviser, question. that’s one, of named was $X.XX. trading a fair. one bigger-picture of Winthrop was when And last kind the ‘XX December the

the think said the call, you last why stock I was. was you it didn’t where on understand

is, plan, you the asset your in think big holding light largest a for piece in best more question do X the now years? hindsight, my was think liquidation Do you go? So of way that’s you best especially was to of are

extraordinarily first, in that premise look have the there’s if of not mean, at which believe a York given the New I a assets are the company at REITs, That the all. Quite various operations. you capital most cost be in would they New to from covering REIT. York circumstances paying the equity. I the been case what City, it pieces Yes, couple cash flow was liquidation is, of of moving any to I dividend mandate think And surrounding are frankly, the should when it here. piece actually had difficult have of York But was advantage that not second New REIT, did buy issue with dividend,

continue didn’t financing a for bold assets in worse. any investment the it certainly very, paying without we sold taxable of guys lever market are this bid. New When announced but and way was robust all pace was there’s that rattle the available at people the and to the having unfortunately, it viability liquidating have volume is, truth distribution, are The to of what not And market cash above in not or was than we said, what the bidding don’t its for income paying that need assets. I with But confident just either that very, have much funds for its dividend is to said to City. in really term. free New to without a you in so any REIT, because well the investors. that a a sell not statistics and continuing dividend wherewithal speaking, way, it’s With of But flow assets, off XXXX generally that be York certainly the didn’t company, REIT have it long And York liquidation. hard was them were the And investors. more today’s where is period sale highly down. market fair believe far guesswork on of guess market that feel lot we so a well achieving the has that at But very markets. when very other activity asset value. on working And time had goes sales markets the me, of you The sell every process day. robust here gotten of are value go every I a fair done And the definition you matter we sophisticated that

Thank you.

will of question the come JMP next Securities. The from line Mitch Germain,

Hi good morning.

Mitch. Hi

walk of how through the $XX of XXXX. a Wendy, I you of that X applies is million that value to the as gain the assets. to change bulk takes Is just each way mean, to puts insight those me kind seems to the some of get property? and there in be

majority through you going be it to now. to walk little to is right you if the front right John the in John, you ask Yes. to But but later Q, it Mitch, in going have I’m you. it’s going are vast which of come or a today, don’t out that

Yes, I I I No, do. do. do.

vast but it XXXX, The ahead. is of majority Okay. go

Yes.

it’s So contract $XX million there. that just the on $XX million on XXXX, over based of

$X of was XXth The Street Street was that million. $XX.X was Street XXth projections. was and down was our original million, up actually here million $X.X $X.X one significant XXth and about kind other The was Twitter million, from down

start the would $X.XX. with that the $X.XX because From

their yes. Based on earnings,

Yes.

very That’s helpful. it. Got

question to Next I just want understand. me. If for

$X.XX, about other. talked one plus $X.XX $X.XX. you bucket the was the think I

So sold the or assets $X.XX, subsequent either quarter are actively announced to the includes that marketed. that were

are to So XXth or market comprised whatever. still like, some of, now in the just each? are of understand I Street assets that am those that like trying right think what

basically, I what was what break to is because investors help trying NAV me risk-adjust Let do of the down is. it components in again each

am on And said that XXXX already so very are I of the money deposit hard so agreement where purchase probability very am I been will close is or where a that lot on we as and literally have numbers I based representing is or that telling a sold sale a you that we have assets that being $X.XX the move. low very, what

being represents The are marketed. currently that assets other $X.XX

Some PSA are but as they of signed close to being $X.XX. far the not category them, of the actually, negotiations, are along in as and we

Understood.

are of on assets one that XXth that be they X maybe $X.XX? Street, So like could part

Correct.

for I’m cost and Just where million or so. liquidation with I to Got spoke time announced wanted defeasance comments to have circle mortgage for premium decrease the the of about because $XX back because, to that’s yet? the hasn’t am Worldwide Worldwide guess, with the to that Plaza trying been Okay. million just regards and the just I sale I Wendy, you. NAV reconcile that versus of the the the you trying gross challenges, I’m to to having us sits with versus $XX Then your guys last Plaza. you the $X.XX

there? out me help Just

Sure.

not it’s easy. think I

of terms in that to we script it you NAV a we of easiest people think I And easy, and will, continue because the estimate thing to one-on-one I basis. of laying is be But helps it’s tried between the published out laborious it. common is keep not estimates the walk through being NAV. in so also management’s will have and accounting it’s $X.XX, the so on why mind both if hope

assets, truthfully, the assume just the is that are can So so everything whole accounting under Worldwide with of group than Plaza treatment they Plaza, same. Worldwide that because different respect to The which, defeasance did assumes not year. the take A, is other $XXX it assumes the that for a within billion $X.X million B, the but sold accounting value to static; accrued that was it’s We you from liquidation and debt $X.XXX the billion.

in the form the you in the I debt, the world, true say, will, we real on of the NAV, paying are of dividend. you embedded equity, a But to but in large at same actually in there. So time, But here, the equity there’s is hate will. that if because that the if $X.XX embedded

$X.XXX So really under in the to sheet the difference future. of the years frame are undiscounted time estimate; the the is years X $X but X versus is management I reconciliations billion, year and be billion assumes versus holding for course, think asset the X balance the different, the major

the then capital scheduled are And calculation? you does this reserve to Worldwide how Okay. guys into that that Plaza, work does how contribute to

John it’s obviously answer counted it, will let I but in.

Yes.

So that transaction happened in October.

X/XX, get using expect we on what that between the number. $XX million that what the appreciation spot. $X some create a October, billion we billion $X.XXX of or In to hope and So to it’s is are funky to little

million be going that is $XX So to reinvested.

the future don’t feel it, the adds in dollar add we we value reinvest of that And more are at value we invest to benefit hoping period going do the if it. the won’t if $XX invest per are it I don’t – So, we million, dollar. than I get that will if but

Great.

ahead. the last think go I question for,

Yes, ahead. ahead. am I sorry. go Go No,

ahead, No, you please. go

I it’s wanted are at in whether say cumulative cases you to that that both accounting cash flow. just is management’s looking the thing, or estimates, liquidation No, remember same which

John liquidation it So, or it’s purposes the another, taken or account, said, $XX for money is reserve. one accounting cash account. either to way want the invested that as the in be management into in of And fourth million. always sheet billion, balance be alongside okay. $X it’s literal of estimate the money That’s on partners’ the which into be will But taken don’t quarter, about venture we our just they that. that assumed less too and than is joint have I because

also of hopefully on investors. obviously dollar every at are capital, money that least the to used that return for is back goes but created a value We is not $X assuming whatever and there

your of estimate is the value is appreciation the it included or value just So the in invested? invested

assumption this billion. you of and – either assume the million that appreciation to that assume $XXX a the as get we adjusted if would well. I basis in invest starting go – value not it’s No, with It’s invested billion $X.XXX mean, and basis $X.XXX

And so assumption billion, to whatever that, was you call want $X.X our $X billion.

transportation. place but the We and this that it Class put have is a close are as X over to building. million close infrastructure The could condition QX. be range. good. bones far west and The side, and to We a right in could directionally good be as high location the very $X.X is building foot little of the square and A very it a It’s is said billion Remember, building.

billion, assumptions we assuming So, renewals. crazy the that to critical number we the done are and all, foot, our there. not repositioning, That’s have the the a reenergizing why does lease is $X,XXX here given seem underpinning a like which some at $X

so Just know left, I leases about years X correct? that, I the or right, on have mean, average term

in If sooner into building you so blend, which of get opportunity lot clearly detail, maybe critical are Cravath. to which with – a them at. the do we the to tenants but that more and looking Cravath, but Nomura some don’t that’s leases we want there something is something and two

in Last a Alright. last it’s there with dividend, for one obviously, Wendy. but recognized has been kind it. me, progress then. what on Got of you quarter significant since and that Appreciate line cash? amount it mentioned commentary The Why the previously, I it. of was made your sit

board discussed be decision on have that the think discussion that needs don’t a level. pay issue can is foot debt to used we to point, cash at will the versus a you to at just much sitting not is I board of strategy share further anything we the It’s what’s that this is and the that have major The assure cash. down don’t – I how there and decided strategy. a dividend close to when strategic but on a

you. Thank

the question [indiscernible]. come of from line next will Your

guys you just question. me been you conference the ridiculous Hey, ago, little numbers I not Wendy. a am after call. long of as a sticking this number the the like as a – I little basically, bothersome has worldwide on – for have by transparency $X.XX far too

months missing value then? been – there to later standby saying period felt short say estate could period of coming have a just that was could that been still you and $X.XX? you hasn’t significant, any were out now very a you since guys – time. New how that of you you guys the time in that, $X.XX what hasn’t very less It’s possibly movement short York you than been a earth-shattering it’s and real It’s there X For are

Al, clear this as management’s estimate, and see okay. can try in let is make my I me not possible. if opinion as $X.XX

create which this great giving encourage did And that was it, we to What where by forward easy. a the on happen at management’s at stand a have of substantial made liquidation That’s Again, are any of would hold assumes when looking Plaza ground in point the Plaza I into accounting is I XXXX. the whole in at venture half liquidation imagined decision, assets the presentation come experts. also go was the is that is you With the we okay, because sold couldn’t estimate the Varick possibly liquidation used, investment was that bring will that the is very joint believe value, dynamic, the short let and known you not shot on me that it’s wasn’t making accountants it, the including service. towards you, are yourself. XX estimates amongst Worldwide in and value-maximizing to decision time said, going that accounting each you few there this in reflected I it was we an call conference the time word $X.XX. Plaza marketplace out $X.XX, multiple in that that management in a everything what how because not partners asset for static, time is and down on at it, individual refinance tell in for why we that’s Worldwide there’s we at take accounting. of not job it and strategy accordance So that for is in term. That with what’s to take okay, were accounting situation Worldwide people, value

We’re doing we the that best can.

it. do I’ll

and I big no, can missed $XX a on. the difference. we It’s I hit, on No, It clearly, said a million hold XXXX. this no, missed was apologize. of Doing I best it, I

is you months $X find you I just the gain couldn’t about that to million years on number difficult is yet years than and mean, ridiculous X to even it’s it is feel over I and months, to the you’re it you’re I can I Plaza? you why billion dynamic real how more market that X Well, tough X difficult it which going next value out, say $X Worldwide million $XXX-plus – us how said X agree X predict is with – more tell estate months, out. it still confident what

not do wand. the we aside not million gaining real there – called No, This million money set of, by suggesting that’s an substantial to we’re call that magic assumption why $XXX I’m is that is a There there’s it. estate we’re to gaining get it, investment waving $XXX vesting.

it shareholders the was building, tax net, proceeds, million below valued goes do from the alternative the was permanent You’re and that you was was it’s believer, what either tried investor thought sold why and billion to handicap the $X.XXX that of and that all with market. sharing the time transfer with and so remember because break and is destruction out a the team individual that I I’m their sold deal. we and done $XX else what can a that it alternative way own underwriting. just mine was merely it backed closing likelihood before and I’ve actually management was. for out each everything the along The being a

upside we what, either price, So were that investment it a out each there, try seller. not it’s decision to that it’s decision. binary, component management into buyer the rather seller. a parts. $X.XXX sell, at at made that’s have We a a individual’s would billion, we ability, that but its price, if break had made your or think buyer our is And you we at at team the you’re But,

obviously, come own NAV part, investing You can with do handicap accordingly. your your each and up

Your McGrath, the Evercore. next question Sheila from of will be line

you’re numbers, on look Worldwide big back doesn’t the it just like my a Wendy, assuming Plaza math, increase. by

I XXX because transfer $X.XXX take about, the the savings, X.X savings that billion, Green as tax the SL you’re and to XXX invest billion. to you billion to invest get if X guess, you tax the almost will you If then – well,

am correctly? So understanding that I

Yes, you are.

feasible just the XXXX? part the then think all of liquidation Okay. to that And assets, it’s still do Plaza, of moving do Worldwide by you second March that towards except the for

there’s that the some end. the to going potentially I do, the only thing as try a case. that that maximize that most this assets first. have could little The we that expect reason, be will with we can portfolio, I is happening the Hotel, by probably to what’s fun in we at of leasing that actually Sheila. value I But for small see that Viceroy don’t trickiest doing bit on be is one whatever And I we which to have assets the the pretty with clear decide

– the Okay. on kind just And reviewing. then of

You’re retaining cash. not

the dividend. one declared You

the You – you’ll is other rather sooner dividend that it safe expect reviewing for be than on to cash? later retained us the policy

absolutely. Yes,

that Okay. at if sale on And think just for you Street then wouldn’t stands XXth and us mind process updating XXst where Street? I

– is you asset lot say them. almost of and As about have in literally, is everything a That’s those stages category. with every assets of is what told that I I all said, as And stages I in call that there’s one. what somebody various else various really XXth discussion I said, in of all $X.XX to think I the Street already I’ve

of getting them than it about the other very call are the still it hotel, feel I Just done but small, by of me good March. some – end excuse

we thing, if $X.XX Worldwide this one it is how billion Okay. the liquidation has from just realized Worldwide And $X.XX, is other, at then gets and assume versus confusing. much the of just look we $X.XX $X.XXX in the if cash? Plaza, last been But Plaza

going I we’ve read comes through in to not third – for I’m I for you where not Well, the to John the the than because clearly over that’s orange mean, the filed, really really, full when the quarter be defeasance. bottom and the this the refinancing – of other I’ll that’s came script is reconcile. from. which to so sale, think apple from realized is $X.XX see kind the turn recognized $X.XX But little net math bit And line sorry, and because could out it’s it’s to you again, again – a tried the the lay the

is received Worldwide X.XX Plaza that transaction. the the proceeds from And the Right. we really

close part Plaza that, Worldwide X-XX, transactions, the remainder as change as your holding extended the then move and it well. that the as money that of go on X.XX difference. we period start recognizing again, additional $X as will cash movement and you’ll and of gets be And number that’s that So would as see of at reinvested, we flows, call through up is

Okay. question. And – last last question

X-year On I’m X. holding period. wondering... it period, Plaza, time holding last more just the like the that discussed the Worldwide be thought I would we the

the were that more we said, Yes. I to signaling going point I on What Sheila, at was be some going were questions to to Holliday was years much his going signal realized go it liquidating had the material never I than said of at that what Marc of was because that by getting tell because a – that wanted least more piece how – that we a entity to X it information. than X. should was be call, and because into I into non-traded was We

spot business time With it’s at which and spot expect to liquidation an at make to you pick does exit how though we’re a value basis. because the time, have I explained beginning, this trying plan. very the that even undiscounted as on So said, you underwrote to be specific again, accounting, as we – a you

basis that’s and Worldwide the a So a $X.XX what on relates undiscounted an as to It Plaza. reflects. reflects spot time it value spot

point sell So have our interest to at said, right in unfettered we as I time. any

before how it I upon I do a plays plan think X so what matter be again, chose. upon pick will we it’s it market don’t that out years. sold business are, depending conditions we have to scenario. it turn believe before will the and depending be asset well But the – scenario is will X what non-traded out, the we – be years, So that But to no could transferred the that monetized possible to sell going That’s entity.

you. Thank Okay.

will Securities. JMP Germain, Mitch of question the from line next be Your

I vacation, mezz you does curious portion that’s debt say about think today? And should that selling paying debt, stand and assets? paying I of what are you’re of properties sell when a to piece then of you’re where the it that – the in terms these down and take Wendy. allocated And these we debt?

generally but everything on the a than its with was Varick, XX pay Yes. answer the down, the which Mitch, CS, the call – other to I’m it’s we if of going the plan else part of line is which liquidation sale, John speaking, let what frame. first basically PLL, lease specifics, XXX% is

how off under the pay there’s as million. loan but any current the you the balance So specifics some I’m I today – just the been to debt of give hyper-amortization, if much The is $XXX think. sorry, the outstanding – of was as will. you John, of But asset what paid we PLL, can so And par. at debt just down, obviously,

Okay.

you’re on got Suisse and allocated And And directly. asset. going we’ve the middle additional mezz, right. proceeds. part X-year with We is off is relief off its of Wendy a of of allocated there part it is loan paying $XXX that on million. evaluation So $XXX the the paid And do of separate of of mortgage, loan, the of the amounts gets XXX% here amount a ones financing have Credit part That as in are for the consideration then to as the extension with million December. the loan that’s balance other today each a indicated, what’s matures for that

option? the that’s to pay just is remaining if balance And down it that tied assets? can tomorrow Or you an –

or assets option, does loans, left a until Paydown for assets. is for X to – but selling The that asset, are there without debt yes. make to would payoff allow But I the like, be it the are, maturity if I were payment. required sell an collateral that And

Got it.

one me, sales the Last Wendy. this York for investment telling Okay. New about What City you process market? is

off particular, dynamic, static, and landlords of side think we not I gets speaking, I market to and the that say, markets capital to the public. private the leasing is certain we – want. in exception lot market where recent did are the should especially which in are companies, feeling saw more it answer liquid. market, very the the private that And Midtown more a submarkets got demand underwriting. Green more just more money than – and it that lot generally think really was guard from really and some for think, We feedback obviously with Mitch, caught than and the for a Columbia. public pressure. more by I they the was the of from I again, is SL feeling XXXX With what more certainly the are respect people fact that pressure hit But tenants’

where entered free market at months look I when was different. X it things ago, concession, rent the concession, was the off, these of amount if TI So we

if need – a don’t market. the And market clearly so to the in I don’t it’s REIT it’s of been specifics York selling you bunch wasn’t tell the New what would of – tenant a have market a I know assets.

think has is I still statistics won learned There’s off anything that’s the but well. so actually the of guess, with I And significantly, the a selling peak. like occupied thing prices still we I well bid it’s up, core. for lot show clearly I’ve feel bidder other is very liquid clearing real a that are still

helpful. That’s

line Rangeley. be from will Andrew question the Walker, next of Your

guys. giving on for everything. so and much Hi, updates – Thanks the on the detail

your you the on I the able you’ll entire your Did Worldwide – to hear one questions. it? – you of – have you you couple won’t transfer tax on hold right pay piece, to if a for holding that Just if be remaining the hold on period

on are, transfer of it’s transfer understanding not generally rules there’s to period, a look Yes. that a tax, if a speaking, whole in tax and in will. you I the than an the back don’t tax the into New transfer within get want more if you York X-year area, but black-and-white treaties City XX% rate, there’s

will will bought away – tax. we from But period, the fact, less But what else not our fact transfer confident just period, XX% it you are anything very extent at that a trigger in do tax. expenses. the a know, now it’s factor, we are transfer in in a XX%, driving we if decisions, a tax. to decision fact is in that So period, X-year holding a the transfer it will, a we’ve tax a just and our over not sold The of sell York a after clearly that we is short investment and instead we sell within it’s New that since the the owe we don’t period, longer X-year beforehand, determined be if life XX% it’s could City, certain it’s transfer nothing likely

transfer just follow-up got Completely more but And one the tax. on – it.

tax. So But it would when the when that you include – report tax did kind liquidation it? you XXXX the forward-looking you transfer your NAV, current estimate, would the of in that the guys sold NAV, liquidation number management provided have have if today, transfer

not. did It

not. It did

Okay. Perfect.

York Let’s has that a sheet or balance mentioned New liquidation you forward, going it see. a then of as And include balance – balance one your you it if year. your to Worldwide liquidation within – of sold

going does you be to forward? going Worldwide are quarter one guys So that that mean fair-valuing each

to for in funds seeing the some plan, be of probably pursuant on of would at be can we’ll at wheret dependent it December quarter. That’s going again, that happens billion and to accomplished it measurable business through unless all-in impact a something that go significant have the to investing on quarter of plan. And start we the we the then we look number get results until business we as quarter once But Each $X.XXX Yes. value, or something. can the that. we next

Yes, yes. Absolutely.

about, cash Just end the the question you thinking the of everybody’s that checking the up. will guys in by guess, And then last that $X-plus I have year.

are Just then be Or pay pay still to to of trust you proceeds this what guys – liquidating the looking dividends out the at guys shares? use out to repurchase one tempted the management that at is Worldwide you would all the kind going price the today versus and NAV, end?

commenting – not Generally speaking, buyback is can future as it. practical neutral good, share of think the or have for and real we the the I’m do answer – is whether now manner the foreseeable I bad and

realistic we Plaza that information. a the when it. be but left, later You radar are screen. it’s in – because right even But constant on radar Worldwide for really us that’s maybe activity It’s our able this by not going material on, nothing It’s a can’t nonpublic level we now, question a have of at we question point. to of on possession on it’s Potentially, not it’s not answer consideration. to have do that screen can the tell we

Okay. Well, this calls, but appreciate been sense. that on the clarity least know tough the makes has there all some call. and will I has tough been at

guys. lot a thanks So,

you. Thank

you. Thank

line next Newman, question will Your be from of the Towerview. Eric

Hi, Eric.

morning. good Hi,

has you any is there level over as thing more get use comfortable? this one at than to quarter, But we any there know holding need liquidation other returning on times of see board the decision. if been to this end that the so cash, few other a for Just shareholders? than really that’s other we Worldwide down been paid that a to of And if the is is as a kind a as I it debt use the we’ve assets first look other cash

use. no there’s no, other No,

Thank you. Great.

of answer a we reasons. the obviously, – the is level net is, and some debt mean, to as But – that excess pay and small return I the obviously, I to for proceeds have minimum keep lot to certain are it’s plan working shareholders. there worth down capital

Thank Great. you.

have the Sherman, We Ranger will question, final from Global. line one Jordan time and that of come for

composition disclosed November? I thanks. in the distribution apologize you of the end it. of if Yes, at – I the Have missed

I am understand question. not the am sorry, I sure I

capital... on Return

what liquidation, liquidating basis the am to of as Since individual be but we a cash anyone’s can’t be the And are that I extent tax purposes a... has got know to distribution. don’t Yes. going it’s individual everybody going that say that is to it is a sure stock. deemed a although we at Since basis, the is, return pretty capital basis in has investor $X.XX treated least I in for unilaterally

from all it’s return capital? your on side, But

Correct.

you thank Okay, much. very

would value team the I deliver possible. on of questions, and work all behalf today. will the to of thank the I And hard for myself like the like us would all on behalf you management that’s we board, to to to maximum the joining If say shareholders continue

out for doing kill and everyday there to best trying are our it you. We