Glimcher Realty Trust (

GRT

)

Q1 2011 Earnings Call

April 29, 2011 1:00 PM ET

Executives

Lisa Indest – Senior Vice President, Finance and Accounting

Michael Glimcher – Chairman and CEO

Marshall Loeb – President and COO

Mark Yale – Chief Financial Officer

Analysts

Lindsay Schroll – Bank of America Merrill Lynch

Todd Thomas – KeyBanc Capital Markets

Nathan Isbee – Stifel Nicolaus

Jay Habermann – Goldman Sachs

Ben Yang – KBW

Cedric Lachance – Green Street Advisors

Quentin Velleley – Citi

Rich Moore – RBC Capital Markets

Presentation

Operator

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» Glimcher Realty Trust Q1 2010 Earnings Call Transcript

Good day, ladies and gentlemen. And welcome to the First Quarter 2011 Glimcher Realty Trust Earnings Conference Call. My name is Lucy, and I’ll be your coordinator for today. At this time, all participants are in listen-only mode. Later, we will facilitate a question-and-answer session towards the end of the conference. (Operator Instructions)

As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today’s call, Ms. Lisa Indest, Senior Vice President of Finance and Accounting. Please proceed.

Lisa Indest

Good afternoon. And welcome to the Glimcher Realty Trust 2011 first quarter conference call. Last evening a copy of our press release was circulated on the newswire and hopefully each of you have the opportunity to review our results. Copies of both the press release and the first quarter supplemental information package are available on our website at glimcher.com.

Certain statements made during this conference call which are not historical maybe deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

For a more detailed description of the risks and uncertainties that may cause future events to differ from the results discussed in the forward-looking statements please refer to our earnings release and to our various SEC filings.

Management may also discuss certain non-GAAP financial measures. Reconciliations of each non-GAAP measure to the comparable GAAP measure are included in our earnings release and the financial reports we file with the SEC.

Members of management with us today are Michael Glimcher, Chairman and CEO; Marshall Loeb, President and COO; and Mark Yale, CFO.

And now, I would like to turn the call over to Michael Glimcher.

Michael Glimcher

Thank you, Lisa. Good afternoon, everyone and thank you for joining us on today’s call. Here at Glimcher, we are quite pleased with the start of fiscal year 2011. We delivered solid financial results for the first quarter supported by sound property operating fundamentals, while continuing to make meaningful progress on enhancing the company’s liquidity and balance sheet. We also continue to make tangible progress at Scottsdale Quarter, as we work towards the stabilization of Phase I and II and the finalization of planning for Phase III.

To start, our FFO per share of $0.13 for the first quarter came in toward the upper end of our guidance range driven by solid property performance in all of our key operating metrics.

Net operating income growth was positive again, up 1% over the first quarter of 2010, consistent with our guidance of positive growth for the full year. Both total mall and in-line occupancy increased over the prior year levels, up 150 and 100 basis points, respectively.

We have more good news on the sales front, as productivity continues to increase. Aggregate sales were up to $376 per square foot, which is another record for the portfolio and a 10% rise over prior year levels, the second double-digit increase in a row.

The addition of Pearlridge and another Quarter of Scottsdale along with solid growth experienced throughout the rest of the portfolio, were the key drivers of this performance. Additionally, we have experienced minimal fallout from tenant bankruptcy activity which has remained near historic lows within our portfolio.

Leasing activity for the year is off to a robust our, with positive leasing spreads of 5% achieved during the first quarter and we have an active pipeline heading into the May Las Vegas ReCON Conference. We do expect the continuation of positive releasing spreads throughout remainder of year, especially as we make progress at Polaris with this being the 10-year anniversary of the mall.

When considering Polaris and the role of shorter term leases executed over the last several years, our volume of lease expirations over the next 24 months are higher than where we have been historically. With the improving economy and leasing environment, we’re excited about the potential opportunity and upside associated with addressing these renewals over the coming months.

As it relates to the continued improvement of our balance sheet, we were able to successfully close on the modification and extension of our credit facility during the quarter. Support from our bank group was strong as we received over $300 million of commitments on the $250 million secured facility. This demand represents a great endorsement of the company from our key lenders.

Once again, the terms of the credit facility modification are consistent with the current market and reflective of the company’s improved balance sheet and overall risk profile. The final modification includes several key enhancements to the prior credit facility that will help support our business strategy going forward.

First, it increased the facility availability from $200 million to $250 million, second, included an additional one-year extension option, which would take the final maturity to December 2013, next, it eliminated the LIBOR floor of 1.5% and finally, it enhance our flexibility with respect to the use of proceeds to include investments and acquisitions, development and redevelopment

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