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spk00: Thank you for joining Reading International Earnings Call to discuss our 2022 year-end and fourth quarter results. My name is Andrzej Mateczinski and I am Reading's Executive Vice President of Global Operations. With me are Ellen Kotter, our President and Chief Executive Officer, and Gilbert Ibanez, our Executive Vice President, Chief Financial Officer and Treasurer. Before we begin the substance of the call, I will run through the usual caveats. In accordance with the safe harbour provision of the Private Securities Litigation Reform Act of 1995, certain matters that will be addressed in this earnings call may constitute forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause our actual performance to be materially different from the performance indicated or implied by such statements. Such risk factors are clearly set out in our SEC filings, and our remarks today are qualified in their entirety by the more detailed disclosures in our recently filed annual report on SEC Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements. In addition, we will discuss non-GAAP financial measures on this call. Reconciliations and definitions of non-GAAP financial measures, which are segment operating income, EBITDA and adjusted EBITDA, are included in our recently issued 2022 fourth quarter earnings release on the company's website. We have adjusted where applicable the EBITDA items we believe to be external to our business and not reflective of our costs of doing business or results of operations. Such costs include legal expenses relating to extraordinary litigation and any other items that we can consider to be non-recurring in accordance with the two-year SEC requirement for determining when an item is non-recurring, infrequent or unusual in nature. We believe adjusted EBITDA is an important supplemental measure of our performance. In today's call, we also use an industry accepted financial measure called theater level cash flow, TLCF, which is theater level revenue less direct theater level expenses. ATP, average ticket price, is also used as an accepted industry acronym. We also use a measure referred to as F&B spend per patron SPP, which is a key performance indicator for our cinemas. The F&B SPP is calculated by dividing a cinema's revenues generated by food and beverage sales by the number of admissions at that cinema. Please note that our comments are necessarily summary in nature and anything we say is qualified by the more detailed disclosure set forth in our Form 10-K and other filings with the US Securities and Exchange Commission. So with that behind us, I'll turn it over to Ellen, who will review our 2022 full year and fourth quarter results and discuss our strategy for continuing to navigate Reading International through the lingering effects of the COVID-19 pandemic and into the post-COVID era, followed by Gilbert, who will provide a more detailed financial review. Helen?
spk02: Thanks, Andre, and thank you for listening to our call today. 2022 marked another year in our progressive recovery from the pandemic. At $203.1 million, our 2022 full-year consolidated total revenue represents a 46% increase from 2021 and 73% of our 2019 consolidated total revenue which is $276.8 million. Our operating loss of $28.5 million improved by 32% compared to 2021, but was unfavorable to the $9.1 million in operating income we reported in 2019. At $191.3 million, our 2022 global cinema revenue increased by 50% compared to 21%, and represented 73% of 2019's global cinema revenues, which were $262.2 million. We're pleased with these improving results, despite headwinds facing the company, which has included inflationary cost pressures, higher interest rates, supply chain and labor shortage issues, and the weakening of the Australian dollar and the New Zealand dollar against the U.S. dollar. Through 2022, cinema audiences showed their desire to return to the big screen when the content was compelling and or the price was right. Movies like Top Gun, Maverick, and Avatar The Way of Water generated all-time record high box office results. Major studios not only embraced the theatrical exclusive window again, but began releasing films appealing to different audiences. Families enjoyed films like Minions, The Rise of Gru, and Puss in Boots, while movies like Elvis and Where the Crawdads Sing brought back discerning and older audiences. However, on balance, in 2022, there was not a steady stream of movies between the blockbuster temples. In 22, we also renovated two movie theaters, Reading Cinemas in Invercargill, New Zealand, and our consolidated theaters in Kapolei on the island of Oahu. We took over the operation of an existing six screen theater in Armadale in Western Australia. Our real estate division continued to strengthen. Compared to 2021, our 2022 revenues increased by 32% and our operating income in our real estate division increased by over 100%, which reflects not only our decision to restart charging intercompany rent to our renting cinemas in Australia and New Zealand, but also our live theaters held public performances through 2022, as opposed to 21, when the Minetta Lane and the Norfolk theaters were mandated to be closed for much of the year. And in early 2022, we signed the company's biggest lease ever at 44 Union Square with Petco, which anticipates opening a three-level New York City flagship store in our space in mid-2023. In 2022, we began recognizing Petco's rental income and received cash rent starting in December of 22. And finally, our Australian third-party real estate portfolio delivered a 96% occupancy rate. At December 31, 22, we reported cash and cash equivalents of just under $30 million. We reduced our global debt balance, which excludes cinema deferred rent obligations, by almost 10% to $215.6 million. Despite these improvements, we know we're not out of the woods just yet. Like many other exhibitors, our Q2 or Q4 2022 results lag behind Q4 21. At $47.2 million, our Q4 2022 consolidated total revenue decreased by 5% compared to Q4 of 21. Our Q4 2022 operating loss of $8.4 million grew from an operating loss of $4.3 million in Q4 of 21. Our Q4 2022 EBITDA was negative $4.6 million compared to positive EBITDA of $2.9 million in Q4 of 21. Most of these results were driven by a softer movie slate in Q4 22 versus the previous year. There were less wide releases and the film could not match the quality of Q4 2021. Despite content challenges in the cinema space, our Q4 2022 global real estate operations continue to shine and help support the company. Q4 2022 real estate revenue of $4.6 million increased by $1.7 million, which was primarily due to an increase in reported property rental income in all three countries. As you know, in the US, the company received no federal funding through the Shuttered Venue Operator Grant Program or the Payroll Protection Program. So throughout the pandemic, we relied solely on our own resources and took the steps that were, in our view, the most likely to protect our company our stockholders, employees, lenders, and other stakeholders, while at the same time preserving our company's future. We carefully selected certain assets to monetize in 2021 to help our company through the worst times of the pandemic. Given continued increases in interest rates, as well as in operating expenses, and in order to ensure that the company completes its recovery from the pandemic, We plan to not only review certain underperforming cinema assets, but also review additional real estate assets for potential monetization. Let's look more closely at our global cinema business, which over the last few decades has provided the foundational cash flow to support our asset growth. While our theaters experienced a roller coaster of closures and reopenings through 2020 and 2021, We experienced no pandemic-related closures in 2022. In Q4 2022, our global cinema revenue decreased by $3.4 million, or 7%, from $47.2 million in Q4 2021 to $43.8 million. Our Q4 2022 global cinema revenue represented 67% of our Q4 2019 global cinema revenue, which was $65.3 million. For the full year 2022, our global cinema revenue increased by $64.5 million or 51% to $191.3 million compared to the full year of 21. Our 2022 global cinema revenue represented 73% of our 2019 global cinema revenue or $262.2 million. Our Q4 2022 cinema operating income decreased by $7.9 million to a negative $5.8 million compared to Q4 of 21. However, for the full year 22, our cinema operating loss improved by 37%, with our operating loss reducing to $11.7 million versus $18.6 million in 2021. Q4 2022 did deliver some amazing and historical box office performances, which drove audiences back to the shared community experience of seeing movies on the big screen. Movies like Black Panther, Wakanda Forever, and Avatar The Way of Water achieved notable milestones at the box office. At $180 million, not only did Black Panther, Wakanda Forever, achieve the second highest opening weekend of 2022, but it was also the biggest November debut of all time in North America. To date, the film has grossed over $850 million worldwide. After 13 years since the franchise first debuted on the big screen, James Cameron's Avatar, The Way of Water, generated $134 million during its opening weekend in North America. Moreover, as of today, this long-awaited sequel has grossed $2.3 billion worldwide, making it the third highest-grossing film of all time. Despite these milestones, the fourth quarter failed to deliver enough wide releases. In fact, we estimate there were 12 less wide releases in Q4 of 2022, versus the same period in 2019. However, for the full year of 22, box office hits like Top Gun Maverick, which has grossed $1.5 billion worldwide, and Jurassic World Dominion, which has grossed over a billion dollars worldwide, reassured us that most patrons are no longer afraid to return to cinemas to watch a movie. But again, the number, the consistency through 2022, and the overall quality could not match the film slate for pre-pandemic levels. Now, jumping ahead to Q1 2023, we're pleased to report that we expect our first quarter revenues to exceed Q1 2022, driven by the commercial box office success of diverse films such as Megan, which was an original horror sci-fi movie released the first week of January, which has already generated over $176 million in global box office. Ant-Man, Quantumania, the third in the superhero franchise, has grossed more than $473 million worldwide to date. Creed III, which opened March 3rd, has generated over $260 million in worldwide gross. Posts and Boots, The Last Wish, which was released in December 2012, has grossed almost $480 million worldwide. And the recently released John Wick Chapter 4, with over $247 million in worldwide box office, delivered a record opening weekend for the franchise. And looking ahead to the rest of 23, we see a very strong lineup of films that should deliver an overall 2023 box office that exceeds 22. In April, the Super Mario Brothers movie, which opens tomorrow, looks like it'll be a blockbuster hit for families and one of 2023's best grossing movies. Guardians of the Galaxy Vol. 3 debuts in May, along with Disney's Little Mermaid and Fast X, the next in the Fast and Furious franchise. In June, audiences will be delighted by their familiar brands, Transformers, Indiana Jones, and Spider-Man, and they'll be equally delighted by Elemental, an original movie from Pixar. July should be strong with Tom Cruise returning for Mission Impossible Dead Reckoning Part 1, And highly anticipated original movies, Barbie from director Greta Gerwig and Oppenheimer from director Chris Nolan. And finally, the 2023 holiday film lineup is also impressive with the Marvels, Hunger Games, The Ballad of Songbirds and Snakes, Ghostbusters, Afterlife 2, and DC Comics, Aquaman and the Lost Kingdom. We're also encouraged by the recent announcement from major streaming platforms, Amazon and Apple, that they're committed to fund movies with a theatrical window. The first significant movie from Amazon is Air from Ben Affleck and Matt Damon, which opens tomorrow and has been generating amazing word of mouth and critical acclaim. As we faced inflationary headwinds and cost pressures, we adjusted our ticket pricing such that our Q4 2022 average ticket price, or ATPs, which were $13 in the US, $14.24 in Australia, and $12.33 in New Zealand, were the highest for any quarter in each country. And for the full year 2022, we set also new ATP levels in the United States and Australia. However, management will continue to evaluate our ATP levels to ensure we don't create price barriers for our core guests. During the quarter and over the course of the full year, our global cinema team continued to deliver impressive food and beverage results. At $7.87 in the US, $7.81 in Australia, $6.94 in New Zealand, our Q4 2022 F&B SPPs all set record highs for any fourth quarter. And our Q4 2022 F&B SPP was an all-time record for highest quarter ever for Australia and New Zealand. And at $7.60 in the US, $7.33 in Australia, and $6.24 in New Zealand, Our 2022 F&B SPPs for each country set an all-time F&B SPP record. Our 2022 F&B SPP record results were driven not only by strategic price increases, but also by adding three liquor licenses in the U.S. in 22, leaving only two targeted locations left in our U.S. circuit. The addition of one liquor license in Australia offering collectible movie-themed cups and tubs, driving fountain drinks and popcorn sales, our new Gold Lounge offering at Lynn Mall, and the Q4 2022 launch of our Reading app that facilitates online F&B ordering in Australia and New Zealand. And now, turning specifically to our U.S. cinemas. Our Q4 2022 U.S. cinema revenue decreased by $1.5 million, or 6%, $24.6 million compared to Q4 of 21. Our US cinema segment operating income decreased to a loss of $4.8 million from income of $438,000 in Q4 of 21. However, for the year 2022, US cinema revenue increased by $37.9 million to $97.1 million versus 21. And our U.S. cinema operating loss decreased by $4 million to a loss of $17.2 million for the year of 22. A couple of points about our U.S. cinemas. In 2022, our U.S. specialty cinemas continued to show signs of recovery. Our 2022 box office at the Angelica in New York City increased by almost 45% compared to 21. In 2022, the Angelica New York returned to delivering noteworthy box office milestones. The gross box office engagements of Oscar winners The Whale and multiple Oscar nominee The Banshees of Inishirin at the Angelica New York ranked as the highest in the U.S. for each film. And the gross box office engagements of international films The Worst Person in the World and Decision to Leave at the Angelica New York also ranked as the highest gross in the United States. During 2022, our curated repertory programs delivered a record box office year with popular original series such as Hitchcocktober and Pajama Party. To bring audiences back to our specialty cinemas, we also launched our free-to-join Angelica membership program on April 29th of 2022. in nine theaters. As of today, we have about 60,000 registered members, and in a sign of guest loyalty to the Angelica brand, attendance tied to membership continues to increase month over month. Membership as a percentage of overall paid attendance for the nine Angelica locations is currently at 22% for the month of March of 23, compared to just under 8% in May of 22. The program's continued growth An impact on our specialty cinema circuit is a testament to its qualities, as well as a clear indicator of patrons' growing enthusiasm for theatrical moviegoing and specialty content. In terms of 2022 CapEx, we completed the renovation of our consolidated theater in Capelae, which now features recliner seating in eight auditoriums, an elevated FMV menu, and a renovated lobby area. In 23, we will commence a full renovation of the Angelica Film Center in Dallas, which will include conversion to recliner seating, F&B upgrades, and adding a premium screen like Titan Lux. Also, in 2023, we're completing a review of underperforming theaters for potential closure to improve the overall profitability of our U.S. circuit. Turning to our theaters in both Australia and New Zealand. Our Q4 2022 Australian cinema revenue decreased by $1.6 million or 9% to $16.1 million compared to Q4 of 21. Operating income decreased by $2.4 million to a loss of $891,000 from operating income of $1.5 million in Q4 of 2021. For the 2022 year, our Australian cinema revenue increased materially by $24.6 million or 44% to $79.9 million compared to the 21 year. Operating income increased by $2.9 million to $4.9 million compared to an operating income of $2.9 million for the 2021 year. Our Q4 2022 New Zealand cinema revenue decreased by $307,000 to $3.2 million compared to Q4 of 21. Our operating income for Q4 of 22 decreased by $197,000 to a loss of $80,000 from an operating income of $117,000 in Q4 of 21. For the 2022 year, our New Zealand cinema revenue increased by $2.7 million to $14.3 million. Our operating income increased by $72,000 to $526,000 compared to the operating income of $454,000 for the year of 2021. In Australia and New Zealand, our cinema operations benefited from the launch of our Reading app. In addition, we deliver the following technological advances in 2022, all of which support increased F&B spending and positions us for a solid 2023 and beyond. The ability to purchase F&B online while purchasing a ticket. Ticketless F&B ordering at the cinema via QR codes. Retrospective F&B ordering. We launched the new State Cinema by Angelica website in 2022. and we added Apple and Google Pay to our online offerings. In 2022, we progressed our design plans for our new eight-screen cinema at South City Square in the Brisbane area, which will be our first new Angelica in Australia, and we look forward to opening in the second half of 2023. We progressed our plans for a new state-of-the-art five-screen Reading cinema with Titan Lux in Busselton, Western Australia, And in Western Australia, we also took over an existing six-screen cinema in Armadale at the end of 22. In New Zealand, on November 24, 2022, we reopened our Reading Cinema in Invercargill with a premium screen featuring recliner seating, a lobby renovation, and an upgraded F&B offering that includes the sale of liquor. Now, let's turn to our global real estate business. Our resilient dual and diversified business strategy was key to our viability during the COVID-19 pandemic. While our cinema business experienced a temporary drop in cash flows, our real estate operations remained robust, enabling us to capitalize on our real estate portfolio to offset the decline. Our Q4 2022 global real estate revenue increased 62% to $4.6 million compared to 2021. we reported a Q4 2022 operating income of $631,000, which was 144% increase from Q4 of 21. Our global real estate revenue for the full year of 22 increased by 32%, or $4.1 million to $16.8 million compared to 21. We reported an operating income of $506,000, which increased by 109%, or $5.9 million compared to 2021. The improved quarter and full year 2022 segment operating results were due to a variety of factors, including our decision to restart charging intercompany cinema rent to our renting cinemas in properties where we own the underlying land. This intercompany charge was abated during 21 due to the pandemic. Additional factors supporting these real estate metric improvements include less tenant vacancies across our global real estate divisions, increased percentage revenue received from Australian third-party tenants, and improved operational results from our New York City live theaters, which are both open and holding public performances for the full year of 22. In the U.S., our Q4 2022 real estate revenue increased by 79% to $1.2 million overall, partly due to rent starting for Petco at our 44 unit square property. In 22, we entered a long-term lease with Petco, a national credit tenant, for 42% of the building's leaseable area. We expect that the new flagship store will open in mid-2023 with a full marketing push to begin in the next few months. As we've mentioned before, we began receiving cash rent in December 2022. We're also excited about the prospects for the new show at the Orpheum Theater in New York City, The Empire Strips Back, which has successfully run in Los Angeles and San Francisco and will open in New York City on May 10th. Since going on sale, the show has generated impressive advance ticket sales. Our Australian real estate revenue increased by 57% to $2.9 million during the fourth quarter compared to the fourth quarter of 21. And in New Zealand, our fourth quarter 2022 real estate revenue increased by 49% to just under $400,000. In each case, these increases were primarily due to intercompany rent income, which was abated in 21 and restarted in 22. I'm focusing on the Australian New Zealand real estate portfolio. At December 31 of 22, We had 75 third-party tenants in our combined Australia and New Zealand real estate portfolio, and we reported a total third-party occupancy rate of 96%. During 2022, we signed 12 new leases or lease renewals, and our third-party tenant sales from our Australian real estate portfolio was a total of $113 million. That's in functional currency. I'll finish by noting that as we continue to strengthen our foundation and regain our footing in our cinema divisions, we're confident about the potential of our retained real estate assets. We have a diverse portfolio of properties, including 44 Union Square in the Cinema 1, 2, and 3 in New York City, and our Viaduct properties in the Arts District of Philadelphia, as well as assets in Wellington, New Zealand, and our Australian assets. market village in brisbane cannon park in townsville and the belmont common in perth these assets provide us with substantial opportunities to create long-term value for our stockholders through either redevelopment financing or potential sales that wraps up my business overview for the full year and q4 2022 results but before i turn it over to gilbert On behalf of Margaret, our board and myself, we again want to extend our sincerest appreciation to the Global Reading team. Your dedication and hard work, particularly over the last three years, has been instrumental in sustaining our company through these difficult times. And with that, I'll turn it over to Gilbert.
spk01: Thank you, Ellen. Consolidated revenues for the quarter end of December 31st, 2022 decreased by 2.7 million to 47.2 million when compared to the same period in the prior year. For the year ended December 31st, 2022, revenues increased by 64.1 million to 203.1 million for the year ended December 31st, 2021. These increases were primarily driven by no mandated closure in 2022 compared to 2021 and the release of several major firms in 2022, which led to an increase in attendance compared to 2021. Net income attributable to Reading International for the quarter end of December 31st, 2022 decreased by 13.6 million to a net loss of 13.2 million when compared to the same period in the prior year. basic earnings per share decreased by $0.62 to basic loss per share of $0.60 for the quarter end of December 31, 2022, compared to the quarter end of December 31, 2021. These results are due in large part to the increase in cinema expenses in Q4 2022 compared to Q4 2021. While cinema operations for Q4 2022 were weaker than Q4 2021, as a result of Spider- No Way Home being released in December 2021, which was the highest performing title of the year in 2021. For the year ended December 31st, 2022, net income attributable to Reading decreased by 68.1 million to a net loss of 36.2 million compared to the same period in the prior year. Basic earnings per share for the year ended December 31st, 22 decreased by $3.10 to basic loss per share of $1.64 compared to the year ended December 31st, 2021. Decreases were largely due to the one-time gain on sale of assets, which accounted for 92.2 million of gain on sale on asset that occurred in 2021 and were not repeated in 2022. Non-segment GNA expense for the quarter end of December 31st, 2022 and the year end of December 31st, 2021 decreased by $1.7 million and $0.4 million to $3 million and $16.2 million, respectively, compared to the same period in prior year. For the quarter of 2022, income tax expense decreased by $5.8 million to $0.7 million compared to the equivalent prior year period. We experienced an income tax expense of $0.8 million for the year ended December 31, 2022, a decrease of $5.1 million when compared to the same period of prior year. The change between 21 and 22 was mainly related to the increased income tax expense in 2021 as a result of monetization of our five assets. For the fourth quarter of 2022, our adjusted EBITDA decreased by 7.4 million compared to the same prior year period to a loss of 4.6 million. For the year end of December 31st, 2022, our adjusted EBITDA decreased by 74.3 million to a loss of 55,000 compared to the year end of December 31st, 2021. This decrease was primarily the result of our gain on sale of assets which occurred in 2021 and was not repeated in 2022. Shifting to cash flows, for the year ended December 31st, 2022, net cash used in operating activities increased by 12.9 million to net cash used of 26.4 million when compared to the same prior year period. This was primarily driven by a $26.1 million increase in net changes in operating assets and liabilities, primarily resulting from taxes payable, accounts payable, film rents payable, offset by a $13.2 million decrease mainly attributed to an improved cinema operating performance compared to the prior year period. Cash used in investing activities during the 12-month end of December 31, 2022 was $9.5 million compared to the cash provided by investing activities of $129.6 million for the 12-month end of December 31, 2021. This change was primarily due to the asset monetization of certain assets that occurred during 2021 and was not repeated in 2022. Cash used in financing activities during the 12 months and the December 31st, 2022 was 16.6 million, which was a decrease of 33.7 million. This decrease was primarily due to the large debt repayment that occurred in the prior year. Turning now to our financial position, our total assets on December 31st, 2022 were 587.1 million, compared to 687.7 million on December 31st, 2021. This decrease was partly driven by a 53.3 million decrease in cash and cash equivalent by which we funded our ongoing business operation and paid down debt, asset depreciation and amortization of leases. The increase in cash in 2021 was primarily related to a one-time monetization of five of our real estate assets during 2021. As of December 31st, 2022, our total outstanding borrowings were 215.6 million compared to 236.9 million on December 31st, 2021. Our cash and cash equivalent as of December 31st, 2022, were 29.9 million, which includes approximately 24 million in the US, 4.9 million in Australia, and 1.1 million in New Zealand. Further to address the impact of COVID-19 on our business, we sought and obtained certain modification to our loan agreement with the Bank of America, NAB, and Westpac. These loan modifications include change to some of our covenant compliance terms and waivers of certain covenant testing period. We are currently in compliance with our loan covenants as so modified. To date, it has not been necessary for us to seek modification or waivers with respect to our other loan agreement as we continue to be in compliance with the terms of such loan agreement with the need for any of such modifications or waivers. During the full year and the fourth quarter of 2022 and in the first quarter of 2023, we exercised the first of two six-month options to extend the CINEMAS 123 term loan on March 3, 2022, and then exercise the second extension option on September 1, 2022, taking the maturity to April 1, 2023. On March 15, 2023, the maturity was further extended by 90 days to July 3, 2023, and we're currently working with our existing lender to complete a longer-term refinancing of CINEMAS 123 loan. We repaid and retired $12.7 million of our line of credit with Bank of America throughout 2022. On November 29, 2022, we further modified our credit agreement with Bank of America, which extended the term by a year to March 1, 2024, and then amended the scheduled repayment. And on March 30, 2023, we further modified this facility, which extended the maturity date to September 4, 2024. and created a modified repayment schedule. We repaid and retired 1 million Australian of our revolving corporate material loan facility with National Australia Bank throughout 2022 on December 15, 2022. We extended the term of our NAB facility to June 30, 2024. Westpac has waived the requirement to test certain covenants for each quarterly since the third quarter of 2022, including the fourth quarter of 2022. Our waiver also removes the requirement to test certain covenants up to and including the first quarter of 2023, with testing resuming for the second quarter of 2023. Certain covenant ratios were also adjusted. As we continue to focus on preserving our liquidity, No shares were purchased during the year ended December 31st, 2022, and our stock repurchase program has and will likely continue to take lower capital allocation priority for the foreseeable future. With that, I will now turn it over to Andre.
spk00: Thanks, Gilbert. Firstly, I'd like to thank those stockholders for forwarding questions to our investor relations email. As usual, in addition to addressing many of your questions in the prepared remarks from Ellen and Gilbert, we've selected a few additional questions to offer additional insights from management. The first such question. Now that the proposed grocery tenancy obligation has been completely removed, what is the timing and or milestones toward finalising a larger redevelopment plan for Courtney Central in New Zealand? Ellen.
spk02: In the first instance, we continue to work with various stakeholders on the reactivation of Courtney Central. Reactivating our Reading Cinemas is our priority goal. However, we're also evaluating the future feasibility of developing the wider Courtney Central Precinct, which encompasses all of our Wellington real estate assets. Any development must be economically feasible for our company. Our goal is to create a dynamic addition to Wellington's vibrant TRO district, that now offers both Wellingtonians and domestic and international travelers a cultural destination that includes the renovated St. James Theatre, the newly completed Te Kina Convention and Exhibition Center, New Zealand's National Te Papa Museum, and the beautiful Wellington Harbour. As of today, we don't have a concrete schedule of redevelopment start or finish dates to report, And I'll note that we make no assurances that such a strategy will be completed.
spk00: Thanks, Ellen. And perhaps you could handle the next question, which revolves around the 10K mentioning a fee interest in a 23 acre industrial site with rail access in Williamsport, Pennsylvania. Please provide some more information on the property. As an industrial site, how or why is this property not presently at near optimal value that it shouldn't be monetized for higher return generating capital deployments like debt pay down, stock buyback, et cetera? Ellen?
spk02: This industrial site in Williamsport is a Reading Railroad legacy asset, which has been in our portfolio for decades. Currently, this space is occupied by Transco, a company in the repair business and a subsidiary of Marmon Rail and Leasing, which is part of Marmon Holdings, a global industrial organization with diverse business lines. This particular area in Williamsport is industrial as our property abuts the Chance Aluminum Production Facility, and we're currently reviewing this category of assets for potential monetization opportunities.
spk00: Thanks, Ellen. Gilbert, perhaps you can handle this next one. Has the March 5 million principal payment on the costly 10% B of A US cinema turn loan been made? And what is the loan's present outstanding balance? Specify as of what date versus the 26.7 million year end 22 balance sheet date. Is the plan to retire this loan via its updated principal pay down schedule or refinance some remaining balance into longer term U.S. cinema financing? Given the current variable rate on this loan, do you feel refinancing will be a similar, higher or lower interest rate spreads?
spk01: In accordance with the new loan amendment signed on March 30, 2023, that was disclosed in our recently filed 10K, our principal payment schedule has been modified and the $5 million payment originally due in March was no longer required. As of end of March 2023, our new loan balance has been reduced to $26 million. As we have mentioned, we continue to closely manage our liquidity, and as a result of that, we focus on the pay downs for our amendments. Regarding refinancing, while we cannot predict the future as we get closer to the maturity of our loan, We'll be evaluating our cash balances and interest rates and we'll make a decision that's in the best interest of our company and our stockholders.
spk00: Thanks, Gilbert. And our last question here regarding the 9.4 million deferred rent obligation mentioned in our 10K outstanding as of March 30th. What is the timing for payoff? Are these extra amounts a drag on EBITDA or or were they already expense when deferred? The whole of the potential 9.4 million deferred rent obligation mentioned in the 10K and outstanding actually on December 31st, 2022 have been accrued through the income statement and therefore will not be a drag on future EBITDA. Most of the $9.4 million is payable within the next 12 months, with the remaining amounts payable based on existing documentation over future periods. However, we continue to work with most of our landlords in the US to seek further occupancy relief to alleviate the severe hardships caused by the COVID pandemic and its impact to our US cinema cash flow. That marks the conclusion of our question and answer session and the conclusion of the call. We appreciate you listening to the call today. Thank you for your attention and we wish everyone good health and safety.
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