Pennsylvania Real Estate Investment Trust (PEI) 2009 Q4 法說會逐字稿

Good day, ladies and gentlemen, thank you for standing by. Welcome to the Pennsylvania Real Estate Investment Trust fourth quarter 2009 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions). This conference is being recorded, today, Friday, March 12th, 2010. I would now like to turn the conference over to our host, Mr. Garth Russell, with KCSA Strategic Communications. Please go ahead, sir.

Thank you Jeremy. Before turning the call over to management for their prepared remarks, I would look to state this conference call will contain certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations beliefs, projections, future plans, strategies and anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT's current views about future events and are subject to risks and uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by forward-looking statements.

PREIT's business may be affected by uncertainties affecting real estate businesses generally, as well as specific factors discussed in PREIT's press releases, documents, PREIT has filed with the Securities and Exchange Commission and in particular, PREIT's annual report on form 10-K for the year ended December 31, 2008. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise. Now I would like to turn the call over to Ron Rubin, Chairman and Chief Executive Officer of PREIT. Ron, the floor is yours.

Thank you very much, Garth. Welcome to the Pennsylvania Real Estate Investment Trust 2009 year end conference call. Joining me on the call today are Ed Glickman, President, Bob McCadden, CFO, and Joe Coradino, President of our Management Company, and Head of our Retail Operations. Also in the room today are Vice Chairman, George Rubin, and General Counsel, Bruce Goldman.

Today we will discuss our fourth quarter results, the status of our current projects, our expectations for 2010 and some recent events. After we conclude our remarks, the call will be open for your questions.

As we announced yesterday, the Company has executed a new $670 million secured credit facility with our bank group led by Wells Fargo. This new facility replaces the previous line of credit and term loan. It has been a long process and we would like to thank our bankers for their continued support. While Ed Glickman will provide more detail shortly, we are pleased that the facility's terms will allow us to pursue our goal of creating long-term value for our shareholders.

As we have discussed on previous calls, our 2009 results reflect the effects of economic downturn, and its corresponding impact on consumer spending. Despite the difficult conditions, we leased nearly three million square feet during the year, and sales at our properties stabilized as the year progressed.

We also achieved numerous major milestones at our redevelopment properties. The transformations of our Cherry Hill, Plymouth Meeting and Voorhees properties are substantially complete. We feel we are ahead of the curve and will capture a larger share of regional consumer spending at these and at our other redevelopment properties as the economy improves. Later, Joe Coradino will discuss in greater detail the results of our efforts and the effect these efforts have had on shoppers and retailers in the regions that we serve.

As I have noted in previous calls, while the economic environment has changed, the basic fundamentals of our business have not. Our Management Team is focused, working to satisfy Company capital needs, looking for ways to delever in order to strengthen our financial position and to place stores in service, increase NOI and occupancy, and generate positive leasing spreads. As always, we remain focused on creating long-term value for our shareholders. With that, I will turn the call over to Ed Glickman.

Thanks, Ron. Good morning and thank you for joining us on this call, this has been quite an exciting week at PREIT. From an operating standpoint, we are starting to experience stability. From a financial standpoint, our world has a much better feel that early 2009. Prior to the impact of gains and impairments, PREIT is reporting FFO of $2.78 per share for the full year. After giving effect to the gains and impairments that I will discuss shortly, we are reporting FFO of $1.69.

Portfolio occupancy ended the year at 89.8%, down 90 basis points from a year ago, but up 40 basis points from the end of the third quarter. Due to lower occupancy levels and occupancy cost pressures, our same store NOI declined 4.4% year-over-year. PREIT sales have held up fairly well stabilizing at $334 during the fourth quarter of 2009. We attribute this limited total decline in sales to stable nature of our core mid Atlantic markets, the lower volatility of our middle class customer and the work we have done to rejuvenate our properties. Most of our markets never experienced the rapid growth of the early 2000s and they have not experienced the depth of the declines felt in some other areas of the country.

In contrast to the spring of 2009, we are actually starting to see some green shoots in performance, as Joe Coradino will discuss, and we are hopeful that 2010 will represent a period of retailer stability. We do not expect that this activity will make a significant contribution to our performance in 2010, however we do believe that this activity will contribute to improved metrics in 2011. Bob McCadden will discuss our earnings forecast and associated assumptions in a moment.

Before that however, I would like to discuss the impairments. We have had to impair two of our Florida investments, Orlando Fashion Square and the Springhills development at Gainesville. In both cases, we have been dramatically impacted by the economic fallout in the Florida market. As part of our annual evaluation of our property values, we have concluded that we must write down these two assets by a total of $74.2 million or $1.62 per share.

Now for the capital step. During 2009 we completed five refinancings for $62 million, three new secured financings for $59 million and received proceeds of $63 million from the sale of two assets and a number of [PETs]. These activities gave us the wherewithal to finish our construction work on our redevelopment properties, repurchase over $104 million of converts at a significant discount and create $77 million of cash on hand by the end of the year.

Yesterday we announced PREIT with the unanimous approval and participation of its bank group has closed the restructuring and extension of its bank line of credit and term loan facilities. Under the new facilities, PREIT will have a line of credit of $150 million and term loans of $520 million. In addition, PREIT has received a $30 million loan against its New River Valley Mall.

These facilities will have initial terms of three years and may be extended for an additional one year. The facility will float against LIBOR at a spread of between 400 and 490 basis points depending on leverage. There is no LIBOR floor. At the inception of the facility, the term loan will be fully drawn and we expect to have approximately $80 million of availability on our line of credit.

We believe that this initial availability, combined with our organic cash flow will provide us with sufficient capital to complete the stabilization of existing redevelopment projects as well as to cover recurring capital expenses and operating requirements throughout the term of the facility.

The Company intends to pursue a myriad of strategies in order to delever the balance sheet. These strategies include accessing the equity capital markets, venturing existing assets with partners, continuing to sell nonstrategic properties, and the natural amortization of our in-place mortgage debt. Given this intent, the Company has agreed to reduce the term loan by $33 million at the end of each anniversary of the facility. The limited nature of this undertaking gives us a significant amount of flexibility in implementing our capital strategy.

Now I would like to talk for a second about the exchangeable notes. Early in 2009, the decline in the Company's stock price and the general rise in the cost of credit created a decline in the market price of PREIT's exchangeable notes. We were able to repurchase $104.6 million of these notes in exchange for $47.2 million in cash and 4.3 million common shares reporting a $27 million gain. As of now, there are only $136.9 million of converts remaining outstanding. The remaining notes which have a coupon of 4% and come due in May 2012 are trading close to par. For that reason, we are not anxious to retire them at this time and view their ultimate disposition as part of our overall going forward capital plan. Just as a reminder, our refinancing of our newly expanded and redeveloped Cherry Hill Mall will be one of the tools at our disposal to retire these remaining bonds in due course.

Before the maturity of the Cherry Hill mortgage, a number of our other properties including two or our major power centers will be coming up for refinancing. These assets are stable and at present, we expect we will not be required to make significant pay-downs in order to extend or replace the existing loans. We therefore believe that following this refinancing, we are in pretty good shape from a liquidity standpoint. This puts us in the position where we can concentrate the majority of our equity capital activities on reducing leverage and once we have reduced leverage, on growing our business.

We appreciate the flexibility given to the Company by our bank group, which allows us to approach delevering in a manner that will recapitalize the Company while allowing us to continue to optimize our capital structure. Bob McCadden will now give you more details on our financial performance. Bob?

Thank you, Ed. Net loss attributable to PREIT for the fourth quarter was $61.1 million, or $1.41 per diluted share. FFO for the quarter was negative $23.8 million or $0.52 per share. These results included gains from repurchasing exchangeable notes and impairment charges taken on Orlando Fashion Square and Springhills, which were written down by $62.7 million, and $11.5 million respectively. Also during the quarter, we repurchased $65.5 million face of exchangeable notes, recorded a $13.1 million gain of which $9.9 million was previously included in our guidance. Excluding the charges and gains, FFO was $37.3 million or $0.81 per diluted share.

Same store NOI was down $4.5 million or 5.4% when compared to the prior year's quarter. Non-anchor occupancy at the end of the year was down approximately 290 basis points from last year, primarily due to store closings by bankrupt tenants. The $2 million negative impact on NOI from bankrupt tenants was partially mitigated by in-line tenant and anchor openings at our redevelop properties. Lease terminations in the 2009 quarter were approximately $1 million less than the prior period. In addition, the 2009 quarter included a $1.1 million increase in snow removal costs, and a $0.5 million increase in bad debt expense. Orlando Fashion Square accounted for approximately $1.3 million of the total $4.5 million decrease in the quarter.

Since the beginning of 2008, 740,000 square feet of space has been impacted by bankruptcy filings. We currently have commitments for approximately 50% of the space and are negotiating leases for another 10% of the space. When we include our specialty leasing tenants, total occupancy for our enclosed malls was 91.7%, compared to 91.8% at the end of last year.

Interest expense increased by $1.3 million over last year's quarter as a result of placing completed development assets into service. At the end of the year, we had outstanding debt of $2.7 billion, a decrease of $87 million, from the balance as of September 30th. Our average nominal interest rate at the end of the year was 4.9%, compared to 5.07% a year ago. After giving effect to the higher interest rate on the new credit facility, our pro forma interest rate at the end of the year was 5.41%.

At the end of the quarter, 77.5% of the Company's total indebtedness, including our share of the debt of our partnerships was fixed. Page 30 of supplemental reported package includes selected debt ratios for the new credit facility on a pro forma basis and a list of the collateral properties. Just as a reminder, we will not be required to report on those new -- revised covenants until the end of the first quarter of 2010.

Turning to 2010 guidance, we expect GAAP earnings per diluted share to be a net loss between $1.51 and $1.63. We expect FFO per diluted share to be in the range of $1.94 to $2.06. Our guidance range takes into consideration the following factors, an overall decline in NOI of 1% to 2% excluding lease termination fees. In 2009, we recorded lease termination fees of $2.2 million. The midpoint of guidance range assumes termination fees of a similar amount. Interest expense will decrease due to the higher interest rates on our credit facility, cessation of interest capitalization on assets placed in service over the past year and the maturity of several below market rate loans during 2010. In 2009, we placed $286 million of assets into service including $40 million in the fourth quarter. Our FFO guidance does not include the effects of any acquisitions, dispositions, gains on the sale of nonoperating assets or any significant changes in our capital structure. With that I will turn the call over to Joe Coradino.

Thanks Bob, we are pleased about the completion of the credit facility and have also had an eventful quarter on the operating side of our business. We have seen our first mall eclipse $500 per square foot in sales. We've opened 265,000 square feet of anchor space, 198,000 square feet of stores over 10,000 square feet, and 153,000 square feet of in-line stores.

We continue to see signs of stabilization in the fundamentals of our business. We experienced only three additional bankruptcies during the quarter, representing just five stores, with all but one having been assumed. Comp store sales have stabilized in our portfolio at 334 per square foot, an 8.2% decline from our high of 364, with January sales up 4%.

We are continuing to realize the impact of our investment in redevelopment despite the difficult retail market. Our efforts to upgrade the merchandising at our properties have resulted in improved sales metrics. At Jacksonville Mall in North Carolina, the enhanced tenant roster of Barnes & Noble, Ulta and Red Robin have helped drive comp sales productivity for tenants open for 12 months to over $500 per square foot in January and helped us to secure a new lease with the Buckle, who's expected to open in July.

At Cherry Hill Mall, the average sales productivity for tenants open the last 12 months is $487 a square foot, and we expect this number to top $500 per square foot in the near future as sales have continuously increased since the opening of Nordstrom. This improvement is a testament to our efforts to secure the right merchants for the market. We strengthened our tenant lineup during the quarter with the addition of American Apparel, Pandora, Metropark and an expanded Forever 21. Since the close of the quarter the Buckle opened a new store and we executed a new lease with Guess, who will open next week. These tenants join an already remarkable lineup including Nordstrom, Urban Outfitters, Coach, Capital Grille, Seasons 52, Maggiano's, J.Crew and Apple, making Cherry Hill the retail showplace of south Jersey. At this time, inline occupancy is approximately 93.5%.

At Plymouth Meeting Mall, 12 months continuous occupancy tenants reported an average of $309 a square foot in sales, an increase of 14%, driven by the new addition to the property, specifically the restaurants, California Pizza Kitchen, Chang's and [Redstone Grill], which are significantly outperforming the mall average. Whole Foods held their grand opening on January 12th, registering as the number one volume opening in the mid Atlantic region. We've begun to see marked increases in traffic and retailer interest as a result of these additions to the property. During the quarter, Saxbys Coffee and Designer Bear opened in the mall. At this time, 82% of the planned expansion portion of the project is leased, open and operating.

At Voorhees Town Center, the 13,000 square foot Intoxx Fitness opened on March 4th. The first two residential buildings are open with 75% of the units occupied. By early spring, the final two residential buildings located on the boulevard will come online. The residential occupancy combined with the transaction in progress including two signature restaurants, a coffee shop, a boutique pet accessory shop and a dessert offering as well as an additional major office user will generate the necessary critical mass at this award winning mixed use development.

Recently Target opened as Springfield Mall, and Barns & Noble opened at Woodland Mall in Grand Rapids, Michigan. Target joins Macy's as a second anchor Springfield, while Barnes & Noble complements the merchandising mix at Woodland.

At Whitehall Mall in Allentown, Pennsylvania, Buy Buy Baby opened in a former Weis grocery store and on February 16th, PetSmart replaced a former Goody's store at The Commons in Magnolia.

Other key deals executed since our last call, include PetSmart and Sheets at Crossroads Mall in West Virginia. In addition to the four hhgregg transactions announced last quarter, we are pleased to report this electronics retailer will also open in the former Linens 'n Things location on the Lehigh Valley Mall site in Allentown. The five transactions now account for approximately 153,000 square feet of GLA, vacated as a result of the bankruptcy filings of Linens and Circuit City. Construction is on track for a late spring opening at Lehigh, Christiana, Paxton Towne Centre, Red Rose Commons, and Wyoming Valley. We believe this retailer, service oriented full line electronics hard goods will complement our merchandising mix. It is noteworthy that total occupancy at our strip and power centers is expected to increase to approximately 95%, with the opening of these stores.

We continue our operational initiative to drive occupancy by seeking out nontraditional uses for our properties. As part of our focus on introducing these uses, in December, Kiss Theater Company opened Wyoming Valley Mall in Wilkes-Barre, Pennsylvania occupying a former theater, and in Uniontown Mall, Gallatin Home Health Care opened a medical office. Our specialty leasing department was also successful in their efforts to address the impact of the January '09, Steve & Barry's closure at South Mall. Taking advantage of the popularity of antiques in the Allentown area, we transformed the 49,000 square foot space into an antiques and collectible mall. All 92 available stalls have been leased with additional vendors planned for the spring. This initiative was honored with a gold ICSC MAXI award.

We are encouraged by the signs of stabilization in the improving retail climate. With our redevelopments complete, we have created a solid platform for future growth. We look forward to sharing continued positive portfolio developments with you on future calls. With that, we are ready for questions.

Thank you sir. We will now begin the question-and-answer session. (Operator Instructions). Our first question comes from the line of Quentin Velleley with Citi.

It's actually [Manny] here with Quentin. My first question on the new line covenant similar to your previous line, is there some type of workout period? So say you did breach one of the covenants, do you have some kind of clause in there that allows you to work it out over some period of time?

Similar to the facility that we had previously it's a two quarter period.

Also on the line if you were to raise equity whether that be through a stock issuance or some dispositions or other types of new capital, would there be any type of changes to the restrictions on the line?

Depends on how much equity we were to raise and what the -- there is a couple of bright lines on the corporate debt covenant and the facility debt covenant, so depending on where those were at the time we raised equity there is a waterfall through which the capital would be applied. And it switches over from 25% to the revolver, 75% to the term loan, to -- and it inverts after we hit a bright line test.

The details are included the 8-K that was filed last night.

Just two quick ones on guidance. Do you guys assume -- what do you assume for your LIBOR assumptions?

(multiple speakers) forward curve and use that as a basis. Increasing over time.

And my last one is, it seems like your leasing spreads in the first half of 2009 were much stronger than the second half. Could you just give us some idea of what happened there?

I will give you -- speak anecdotally about the four quarter, if you look at not so much leasing spreads but some of the new leases we put in place, we were looking to backfill some space previously occupied by bankrupt tenants. As an example, we've had a number of Waldenbooks stores that closed here, we backfill those with no down time and limited capital commitments, so you see some of the rental rates were -- new leases on previously vacant space lower, and you also see the effect of some of the rent relief as tenants come up for renewal. We have been granting -- and we've talked about this in prior quarters, in effect exchanging smaller increases or in some cases negative increases in base rents in exchange for the opportunity to reset those rates under a one or two year lease.

Can you remind us are you leasing spreads quoted on when they are signed or when tenants move in?

Signed.

Signed. Thanks, guys.

Thank you, our next question comes from the line of Craig Schmidt with Bank of America Merrill Lynch.

Which of your mall assets are unencumbered at this point?

At this point, none of the mall assets are unencumbered. We have a property that's part of The Gallery mall, 801 Market Street, and the two land holdings that we have in Gainesville, Florida and Chester County, Pennsylvania are unencumbered.

Great. And then I noticed about 14 of your malls have occupancy below 80%. Looking at on a non-anchor basis. What do you look to do going forward to increase the small shop occupancy.

Well, obviously better performing malls are less of a challenge to lease. In light of that we have introduced a program internally on a number of levels, one, in some markets we've hired outside brokers to assist in the effort, Orlando Fashion Square is an example of that. Across our portfolio, we've created a general managers leasing program, again in an effort to solicit local and regional tenants and we're also beginning to focus on alternative uses. All of those areas are getting traction on one level or another. We have about 26,000 square feet in leases, for alternative uses, that we are working on Orlando. We have had in excess of 10 leases executed on the general managers program. So it's a no holds barred approach. We are looking at all avenues to drive occupancy, particularly in the assets that are more difficult to lease.

On the alternative uses, where do those rents stack up prior to the previous rents?

On a generalized basis they tend to be somewhat lower but they tend to also have lower tenant allowances as well.

Okay, thank you.

Thank you. Our next question comes from the line of Michael Mueller with JPMorgan.

Hi. Few questions. First of all, for the four redevelopment properties, can you talk about what the rough run rate of the in place NOI is today and then versus the stabilized NOI, so how much more is to come over the next few years?

We generally don't talk about specific property NOI.

Okay. Your same store guidance of down 1 to 2%, does that include the redevelopments in there or exclude the redevelopments?

We've always, at least for the past four or five years. We don't distinguish if the property is owned in both periods (multiple speakers) for numbers.

Okay so it still includes the redevelopments. So what is the offset to -- because I'm assuming you got leasing activity you talked about coming online in '09 and some in 2010 for the redevelopment, so where is the offset that's driving the same store negative in 2010? Is it coming from a handful of properties or is it a little more broad based?

It's more broad based and it reflects -- if you look at the observation of what is happening to the leasing spreads over the last 12 months, and you saw a decrease over the course of 2009, and as we mentioned earlier those are on a side basis. So as those leases begin to -- in effect we've realized them to rent paying tenants, we are seeing generally upon renewal on average slightly lower rents.

The spreads we saw at the tail end of the year, are they a better gauge for what we should expect the signings to be moving through 2010?

At least for the first half of the year.

At least for the first half. Just a couple more. In terms of capitalized interest, can you talk about the 2010 expectation versus where you were in 2009?

We were probably somewhere around $5 million -- round numbers -- $5 million in 2009. And 2010 will be a similar dollar amount. But I think it's basically in 2009 we benefited from very low LIBOR rates and a low spread on our credit facility. And next year we will have lower average amounts outstanding for capitalization but the rate's going to be moving up because we tend to use the rate on our credit facility as the basis for interest capitalization. There will be a similar dollar amount but lower dollars in development.

Got it. Just two other ones. Number one, on the term loan, what is the interest rate on new term loan? And then secondly, can you put some rough parameters around the deleveraging goals I mean what do you think is achievable, what is the goal, how should we think about it as 2010 versus spread out over multiple years?

The interest rate on the term loan is the same one as the general credit facility. But (multiple speakers) as we sit here today it's 490. We would be at 490 at the end of this year.

Okay.

In terms of your second question, which is regarding deleveraging, built into the loan is a -- in the facility is a requirement to reduce the combined total by $33 million a year in each of the next three years, so $100 million in total. There's also some natural deleveraging that goes on by virtue of the large number of secured properties we have with mortgages that require amortization. And on top of that obviously we are opportunistically looking at capital markets and what that might hold for us, so we intend to have a broad based approach to delevering the Company.

So theoretically, if you raised let's say $100 million from either asset sales or that and you paid down $100 million, would that take care of year one, two, and three requirements, the 33, 33, 34?

Yes. Well, $100 million is the sum of those three numbers, yes that would do it.

Okay. I wasn't sure if it's -- okay. I appreciate it, thank you.

(Operator Instructions). Next question comes from Ben Yang with Keefe, Bruyette & Woods.

Good morning. I was wondering if you could talk about the $30 million receivable you have with Centaur, given the company's recent bankruptcy, and I'm wondering whether you think that amount is collectible at this point or if maybe some write-down is appropriate, and if it is, whether that is baked into your 2010 guidance.

We never recorded the receivable from Centaur because of its speculative nature. So we have no exposure to that. In fact, to the extent we recover anything from the bankruptcy, that would all be upside of the Company.

Then regarding the 10 million unsecured loan that you made to Al Boscov, is there any change in the status of that loan?

No, it's a performing loan, they are paying their interest every month.

You have that recorded on your books?

Yes. That's included in our receivables.

Okay, great, that's it, thank you.

Thank you. Our next question is a follow-up from the line of Quentin Velleley with Citi. Please go ahead.

Good morning. Just staying on the deleveraging side of it, obviously your covenants are predominantly based on where EBITDA or NOI is. If you look at your portfolio and your redevelopments, arguably there could be upside in NOI from the current portfolio and where occupancy is, but also the redevelopments. So putting that all together, as you look at deleveraging, how much kind of NOI upside is there over the next three years, that could actually help you delever the Company?

We are hopeful that there is NOI upside and we believe that we will start to see a better leasing environment towards the latter part of 2010. But during 2010 itself we are experiencing the full year impact of the spreads as Joe and Bob mentioned that resulted in the last couple of quarters of 2009. So the growth in NOI is likely to come in 2011 and 2012.

But, just to get back to the deleveraging point which is fundamental, yes, we hope to delever through the organic growth of the Company's NOI and the benefits we will get ultimately from the investment we made in redevelopment. But we realize there has been a revaluation of real estate and that we need to be more proactive than that. We are very pleased that we have the ability under the way the facility is set forth to do that in an orderly fashion and -- but we do intend to do it. There is no question about that.

Do you have an actual target that you are aiming at, whether that's net debt to EBITDA or debt to gross assets, is there some long-term target that you have now?

Well, I think the long-term target as a Company has always been to be between 50% and 60% leveraged. Where we found ourselves was with a precipitous drop in value during the middle of a capital intensive period in our Company's history that took us to the point of having over-levered the Company. It was not our intent to find ourselves in this situation from a capital planning perspective, it was a result of the marketplace and what took place.

Over the long-term we would like to run the company at a lower level of leverage. It's really a question of how we get there. I mentioned a few ways but one of them is that we have a number of mortgages that have required reductions over time. We have agreed with the bank group we will reduce the outstanding under the combined facilities. We have had numerous discussions with potential joint venture partners on ways in which we can utilize our assets to seed joint ventures and create some liquidity, and also we have been discussing options in the equity capital markets. But we are not going to do anything precipitously, we are going to do these things as part of an overall capital plan which will delever the Company over the coming years.

Thank you.

Thank you. Our next question comes from the line of Michael Mueller with JPMorgan. Please go ahead.

Hi, just one quick follow-up. For 2010, the $33 million pay-down, what's the capital source for that? Because I think guidance mentioned no dispositions or capital markets activities.

We closed the new credit facility with $80 million of available capital borrowing capacity. As I mentioned, our normal operations should provide sufficient cash flow to pay our normal recurring capital expenditures and other operating needs. So sitting here today we have an $80 million availability under the credit facility.

So you can use the credit facility as a source payment then, okay. Thank you.

Thank you. Mr. Rubin, there are no further questions at this time. Please continue with any closing remarks you may have.

Thanks to all of you for joining us this morning and for your continued interest and support. We look forward to providing our next update on our first quarter earnings conference call in a couple of months. We are very pleased about the closing of the facility and we want to thank you again and have a very good day.

Ladies and gentlemen, this concludes the Pennsylvania Real Estate Investment Trust fourth quarter 2009 earnings conference call. Thank you for your participation, you may now disconnect.