SLG - Earnings call transcript Q1 2020

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Operator

Thank you, everybody, for joining us, and welcome to SL Green Realty Corp's First Quarter 2020 Earnings Results Conference Call. This conference call is being recorded.

At this time, the company would like to remind listeners that during the call, management may make forward-looking statements. Actual results may differ from the forward-looking statements that management may make today.

Additional information regarding the factors that could cause such differences appear in the MD&A section of the company's Form 10-K and other reports filed by the company with the Securities and Exchange Commission.

call, by may SEC conference measures non-GAAP today's defined as Regulation during the discuss company financial Also G. company's differences the The comparable GAAP GAAP press company's of financial in on be the selecting the website to directly earnings. non-GAAP the the reconciliation the each non-GAAP measure release measure financial financial first measure comparable measure and XXXX between each most at quarter found by financial can discussed regarding www.slgreen.com

Chairman the and to ask call, Executive of Q&A call SL over Realty turning you your the one Holliday, Green Marc Before Thank you. of Chief to in questions please person. limit the Officer Corp., those per portion I of participating

turn the over now Holliday. call Please Marc I’ll Marc. to go ahead,

Marc Holliday

told you high pipeline, portfolio, record I on have of sense executing our zero the sector. asset low difference had about strong unemployment in another couple If York in City retail leasing leasing of our the York dispositions highlighted stock price a make. City all and performance strategy And stock told continue of incredible beginning buybacks. would the Vanderbilt happening at a this recapping accomplishments peers vacancy record very at I the across SL months construction and very on we to was very would New March, have our to a New year relative and that a near progress our I a and and about have of One you strong. of well and would Okay, things defined of corporate growing call great what plans Green, stability

lifetime injected volatility and us weeks and we the and purposes, marketplace. have into the was ago. activity, dramatic lives and extent living a most our best-laid projections of unprecedented disruption ago intents in businesses, all rendered and for plans eight experiencing the times, seen. and The pandemic subsequent never COVID-XX Suddenly, of global uncertain that to which of have reduction are But economic a the

to know pandemic face whether don't What do it York's that quickly it more in since withstand long these know, the or past, moments take shines protracted crisis will years, of us that nor rebound economy brightest. our control at beginning. team dozen a as of of decline. times. SL bring leadership will for Every the member It's been very has market is the We we the and and in team New the a many been yet often however, together our built company how least have to Green with is disruption has under

real recover. only York's not position strategic things commercial weather in better we the are thrive estate aftermath as Our as prepared difficult means that New but times to sharpshooters

was threat new this to and response Our comprehensive. swift

new of We tenants are our well keep to and policies secure, buildings all informed. at forefront and employees the of and our instituting safe their

New critical buildings City our running. and that has are in many this portfolio that agencies city businesses, organizations to essential work keeping office

governmental and can visiting COVID-XX. secure, the on offices operating, the Medical don't media who These simply that all are agencies service outlets in assurances frontline, home, of from tenants from that need option studios in open, health and people the and care companies, buildings. major broadcast our working offices, are buildings they they nurses, have have operate free

are So they them. ready are to can we is who doing we past heroes when and support ensure that possibly few our everything viewed weeks facilities need our the the crisis these have tackling role

of into buildings our cleaning We attendance best-in-class to and our to welcoming security environment. are turned buildings the we construction frontline make from this the half one July. of to employees own building we planning the workforce ramping in as second and secured, will continue up sites occurring business staff, certain May is our and with have soon tremendously property for sometime when are even our in With eased, and over be no back grateful restrictions and our the limitations are engineers June to managers who attention guards yet portfolio how lifted, to a while as the returns offices partial

are we home restrictions at to will is hearing What Work once serviceable our tenants from definitely from that best. proven the lifted. return is want employees are

no with in operating life distractions below environments, currently someone out total free me far purpose-built of future bumps. home family creativity, video there But of be the work spotty undoubtedly a substitute perception are comradery and computer and simply and in believes collaborative businesses working the and capacity capability Count who a at which WiFi, will environment. changed collaboration. However, businesses has members want as nurtures is COVID-XX work doing home bedroom, of for laptop with in in a setting, what connections

will we workplace reopen in rebegin businesses the process As workers. getting office satisfy new back of and to to standards work, the

on over Ed more With to own Operating other SL Chief than very me our let it none Officer. that, Green's turn Piccinich,

Ed Piccinich

I in it couldn't yours for and wasn't you, emergency level perform Andrew's leadership this the board. echo your full the sentiments. of well if Marc, We and support as at Thank of as performing

it and years. we Here seven are, like weeks feels seven

in expanded containment of to were first super protocol, through isolate identifying in exposed X/XX, a risk steam sanitize everything blessed and and forget implementing the Center COVID-XX how And and about COVID-XX. blackout to and the understand system in As When from formed your can initial throughout XXXX, many and committee been Northeast it storm career quickly XXXX we immediately steering areas bombing, crises XXXX, Sandy emergencies in of to hit, cleaning we address XXXX. and that situation. who Trade XXXX was you in World early have evolving my share HXNX

in-house we time our was technology that took reflected Allicock that while in in managing a Mathews, but Brian were group; were sure keeping reporting our the fully we to John crosshair. zoomed like operational. our our Kurkjian, that office We and the also disseminating and building informed, real made tenants restrict from building fully gang were Cuomo's Jeff workers sure rest the information occupancy. sniper's and We nonessential to employees Governor the connected, directive of to make A.J. with

As held but workers long referenced Marc we we back out for make needed result, scaled because decisions, a that the difficult we we the as very of to could as some of loyalty and accordingly.

soon only We're has ready. the been as we but frontline I lifted, Our and this as is mandate operations we safe, the manning, not buildings up lifted, people as and training, will equipping, forward ramping kept to sanitized mandate team you running this is soon that be already, clean. assure can looking as and

team from guide we calling recommendations portfolio our weeks and and a ideas working force to HR, mitigation as risk through us necessary the human Lynne-Courtney and Head The detailed what ago, shifted mode Hodges foundations SLG calculators, had that track hard, risk focus has we roadmap our that like though been a running of A task headcounts GPS frontline forward algorithms our expenses running mounted few formed reopening. containment tracker of entire Greg and with everyone. will we're is to McManus on of establish our

we unchartered puts of buildings anesthesiologist buildings days our through new, sleep board a he's a them Laura to exactly table Once work Vulaj our year how preparing. close ready navigating which understand controls and inside exercises to run out, behind up like to and for their top the wake get currently certified call. literally have a we but our This and always us are and couple Gill may virus been waters. shop cartographers in-house Meghann be for

ready we Never a been nearly fans, XXX,XXX that's capacity. almost you tons you oversee of everyone has portfolio that's of to their have I bring controls more with behemoth and it as that because of down a of I of XX,XXX property step throttle our refrigeration XX,XXX feet BMS some and hundreds tons XX know, and you and management proud cooling ramp team it up, machines square systems, in. laser focus, key all coils, that, behind where of to the can say when be

filled construction hand. crews virtually in Dewitt. exception and construction has times, side but owners a to applications maintained hammers have at On consistently things, the execute construction the fluctuated of He in perfected XX has workforce, He's Bob combined. we with probably more kept ability albeit

much half items a into this not would and with to confidence considered. the them January every the in course so of the we're since aspect that We one were communication knowing program efforts of the or our that exhaustion. completed facility work challenge. and each safety out be still our which and on with critical been most different grouped of Nonetheless, best-in-class dozen we and comprises line everything evaluated staff up providing of our that to jumped woods There's XXX categories, yet. We've some we and

first the [indiscernible], our and weeks reducing communication teleconferencing, of tracked think who order ingenuity leaders, referencing, New the from industry our going at for captivate days to in we the as how I'm So everything we this that cases reported making sure set managing with building City. that on screens through we're York standards and looked in engines, crisis all flawless you and being communication, her leadership order tenants from communicate promoting capacities, can the by is them. The forms on topics brought her one execution occupancy, elevator visits, every tall restricting each and the managing conference room of project across things of. outside this delving And following

will signage dispensers control, get ramped to indicate, to understanding we're so When for destination. understand actual everything as floor freestanding to – be decals what you styles, be sanitizers these exactly the you trifle corridors, to we’re and to go where hand well our they as up to commanding everyone Q traffic sand on achieve. ready, And in and will a your from it the lobby how – handouts turn our how is markers tenants, comes call, elevators lobbies, on going trying

in be in staggered the people and We've make order the be looked everything XX a with our be wait get proving has changed and that been tracking distancing will on that and surgical Boniello happen. and most through and in hours from consumables, social latex part We've maintaining gloves. for out Rachel needed, than this our sure is elevators listening unrelenting there's elevators, there and to day. will times ensured encouragement, algorithms consumables to that everything that to manageable these that we've her at while mask during exited also us to well that as we're running but time making shifts anything all done more it to

our the going evaluated at association sites passenger with are and we and as the detect interpretation dealing be to said understand these, volume to how of elevator they and temperatures passive cabs as be are building the one in Estate Look, situation but Board you as perfection. to reducing although non-evasive real something we our have critical advisory directing at currently of will perfect, sure These well that be And necessary. Real high to body their overhead talking here using my them that the We New no hand. I've ways to We've been board, elevator and is to buttons, I'm with implementing owners and they'll York, successfully pushing proctors handheld come. use at be into the anyone estate density thermal is. about tenants, contemporaries, there's expect how weeks management looked done accuracy construction scanners and And scanners. thermal behavior of we're tenants

at a within once feet every are Ranney week, seen ranging the universally Bluetooth to recognizing out Shout a we led work allow light tracking hands-free employees, at portfolio televised card have seven a items, you and for Iaquinto, a from system context and that long-term day, We've tell – real we Tony turnstiles. hydronic ordering and everything led about. is though to the nano want looked you're by system, it's technology photo, we create Dana started Sam Yuri Mahairas can the vapor, turnstile – for days to that pick of our turnstile. some access They last as blue security estate Even our and doubt, me weeks. looked to and in what in have And up such you it's many these from proven no and approach really your have to be as already it. seven a redefining frontline enhancements. well Additionally, that of retrofitting to these turnstile all Ari

the antibody sure Getting we're not other what going everything occupancy stations As things different when at through. is our pre-COVID. support the throughout also of doing we're exactly some be far as tests, determine will in-house protocol But with at how tenants it consider. and working making flow are we to make be sure to be our understanding back to to own protocol, surrounding we to how lobby we vaccination any to with We're work that that them going our should back to specialist might buildings understand looking our the it's we was aligned. greet the than entrance, any that necessary

Some mask of well, on you that think, a with to how with you going – a may are your face? do

do don't There give make at. is single embrace that What when going we to see thing obviously to around them going we're is obviously eyes the wrinkles smile. we're the haven't them, sure a not that our but looked we we they'll

we've monitoring, we real the cover any at enhancement confident And greeting lobby each air than every to it's whether carbon emitters, looked anything able aspect to quality bipolar filtration else. that time ionization, and filtration to be very our expect or we're all. it's from So the of at UV it like tenants electrostatic to

I containment We've returned trademarked and past room better decades, continued here will not I place other's don't occupancy, help, well-being. time shelter and containment, there always him been in today. but me of seen of things. full he's to tenants that risk And I'm him him want two way improvement little maintaining, turns say to Vince our phrase. I that from confident this we it run but are we're risk He every through over life. We to and and better he get wash me. the of be always It's that when go like good I've management. all in Hopefully, all, the he's to else And tells up management waiver. the – mail into anything a were we're pass respect proven complaining. day. He's think can't do that buildings we each our off at not we we're in all the at every

do that So it, you assure off. a life me these slice I remain situations. Andrew, take and you Marc, right and we We And my day thing. got committed the on team to matter want doesn't note how this. during and No thrive challenging people

Marc Holliday

tenants passionate for Thank you, now, thank look you've task are on Ed. to it. And the for There's to your ahead. no off question for going time and at team it to about a be got you commitment great it's hand we And and the us better it.

you to are as for As imagine, beyond. spring our evolve can situation the reassessing late to and move to to completely conditions prepared we current to plan business XXXX recognize and decisively continue be adapt through and

a real we best to $XX back moves Manhattan substantial us of we now of on of company By an the balance moment, buying but nearly and over years created put base today the our out we're this monetizing accretive liabilities sheet liquidity, our where the dated prescient crisis past stock cash very XXXX look made current than billion stronger Fortunately, and in streamlined long position office estate four proceeds on comfortable generally de-leveraging focused since with assets sit couldn't and have that’s ever. predicted a tenants. we've credit with and with stable assets. a narrowly basis, and more We come

office for we built accordingly, will we delinquency that roles. On single have of of in like and are But and collected withstand of this. in the not base knowing that and like tenant portfolio over rents they are who only we intents every had the rents, tenants collections exceed our XX% fallout of fortunate tenancy office Those leasing to times built, stats or everyone with to not because April over XX% are Having did pay is has, collections largely And also, office and creditworthy purposes proud we long-term conversations are enormously significant we experience we've retail were of the over front, tenant yet. XX% rent all very can we our and April. overall. not on

place end around April XX%. have retail based and will we're the collections actually think at XX% end rents up to We approach we in up April We going around today, overall on come we commitments office think will XX% XXth.

larger time. pay so our tenants tenants the now a our So right have have of us with we these asked impaired, retail We've tenants during and that smaller particularly during are most we've the challenges out who that week the We're working times be that been these generally well. latitude business. some gives them challenged those attempting still tenants We left. as that. retailers. flexibility evidenced been we've they credit got work that their that extraordinarily and of we're understand with facing, generally and community, doing work They'll this impacted been it to the smaller tenants doing share certainly to and most with it been And shut in was did, had

We the and but work week York great We is employees, try partnership that this shortage with initiative. customers this now them further Boulud throughout. help there we for been to in shareholders, and food alleviate City ongoing our amplified. will the their in FoodXst tenants One Daniel example of be New launched is the to for

to most. tenants food across have who with and at limited our beverage to service Our when neighbors, industry food needs it believe feed tenants will by our time the emergency also that a entire revitalize we access SL mission in our is workers portfolio to partnering Green's a help help foodservice way and

of and east first morning City. over of delivery firing we FoodXst investment a down need. and a up enable the has as Green preparation initially the X,XXX the responders that initiative SL Daniel's those of cooking will York kicked in to objective in Prep day XXX,XXX initiative, New nurses with an and expect million We this off phase lower to in Kitchen and $X of heroes New meals the frontline one itself by contributed side Yorkers payment meals for this

process Of foodservice during week us tenants more join in our open to than of XX to and program their this serving doors of kitchen half expect portfolio, Phase from of pandemic beginning love. them that nearly our in we this workers next people purposes and local of city we help initiative II the back into reemergence the the and the this community the for feed bring of

pipeline had first Pre-COVID, we leasing nonetheless pipeline this of we strong rebuild hold, and temporarily a much that we we quarter once leasing that extremely and on robust is had an of while crisis know passes. will

In fact, pipeline, XXX,XXX year-to-date all delay leasing top tenants square feet feet feet alone. of with exclusive current leasing of COVID stands the we've on in XXX,XXX concluded that and our an at over square that's occurring the April of XXX,XXX still impressive already square of

So will service we to in in will know that work toward like with on and and SL best Green moment trusted move fact this, that us. of count experience can situations the you In exemplifies. uncertainty partners want companies quality, capabilities a

storm a and delivered now $X.X debt first billion. us, including XXXX, out thought the on over of place lot I quarter. years, that to charges not will I to that. a equity. has saw of revenues preferred take for on the the during of commentary the ride focus in an billion took going the to $X.X of program We XX overview moment just past that I together. you to give a want Andrew is sort accounting

that losses revenues. of total time about $XX million, period of took in year of we XXXX, a $X billion million I $X.X to believe, against XXXX

extraordinary an proud think I record. that. very it's of I'm track

period look you of when the quality, what's the our creditworthiness today, companies of borrowers, at really appreciate program, out finance we taking our our levered among around there some our place assets, think time. I the that for profitable quarter, that In result underwriting such activity, of we created took and reserves. extraordinarily an us program the first some CECL trading further as some a has over of

come let that light Andrew shed I'll some and And on please. in

Andrew Mathias

Marc. Thanks,

assets positions didn't equity we our preferred scheduled where pay received book, paid. of first interest payments the and assets $XX not representing of book debt balance XX% Both retail two rent. million quarter are with the in On tenants having the approximately the

additionally One a is of backed those service payments guarantee. by interest debt

marks multiple adjusted We at scenarios attributed and we quarter of and ran some scenario, likelihood to end took where the the book balances. fourth different of CECL each quarter, percentage the partly based that the Those to important reserves come over the on reserves pay positions but in CECL mentioned. that may first not did that against we may quarter pass, I did take or note through two just it's not first to

There that's collections payments and surrounding uncertainty the is the continues, rate that all the this way position end in that obviously downturns, as over may we it's lot for part the temporarily level is of few next fall the of an we That's in up not we may if comfortable foreclosure. the outcome to a some outcome. possible quarter of and below assets and that worst rental months, business choppiness are underwrite first every achieved with

to Given office portfolio that non-payment be properties our rise of secured is non-payment level wouldn't dramatically, XX% likely will rise roughly another and properties, any of most loans in expect by of and short-lived. XX% by comprised the we residential

Additionally, where reserves against management's selling market. we assets anticipate today's the estimates we the quarter price based that in in would second of on loans best took

forced loan million exceed our multiple but sales with and of levels market calls. debt margin to due bids closed of on list trading must a obviously the loans There's in to pricing marked $XXX repo what confuse see shareholders sale trade want the People are in assets sit the chatter shouldn't in debt believe reports to. in Based portfolio, a Green loan free today, well lot SL have respect or a to they mortgage $XXX to them with we we sales. million REIT's to their bid press evaluating been may a of we on any four marks. We don't so weeks where hope next below

by And of weeks as the couple lenders. $XX our opportunities a within balance upon committed raising down least to the $XXX optimize we million lien of that's to or view expect million we take-out total we at portfolio, our doing or to Across in not to sit so been that today, debt the entire next we're we come already have jobs. liquidity, debt is against be evaluating DPE we're positions. expect repayment If market in portfolio only not here based first our

that earnings. With take through us to you it Matt, to over I'll turn

Matt DiLiberto

you, Andrew. Thank

want to maintaining conditions get of I guidance, I it's an always measure a of prudent just both to on that market as amount our where profile touch Before liquidity underpinning credit and a sufficient been when dictate has liquidity, corporate protective to be opportunistic.

most current we cash environment, from king liquidity cash our the degree by least billion at a We further desire increase In high is to to The step of this and quarter-end the had one over have have the by we had solid for $X executing cash have days. plan call taken confidence next million looking balances billion that the ever we dollar a plan. XX at XX our to $XXX in. we actually

facility near-term, as and the in other back XXX possible pay happen $XX may an always the sources the credit will norm within strive total additional early expect off days, capacity I've from keep to but SL XXnd out playbook to That at of we said, with drew in million seems our million. to balance any just in financial generate the zero in of cash our step, which our we cash heard facility down first including we Street, crisis playbook that's us markets. actually Drawing a the financial these April, to $XXX broader the that the million credit the protects As putting proceeds bringing $XXX billion. facility to Green be line about of the and balances East $X.X the dislocation pending of financing us down close and

In Also, are the closing had on cash of will to we about That there. with XXX not leasing also only moving success ahead have will repatriate Avenue, financing we front, $XX not million incredible but refinancing preferred given active any it the cover most between of us, portfolio, our and we XXth all, of the equity pockets. second of future sales, have spend of and Andrew the close out to come our which our $XXX that quarter. highlighted debt million $XXX in expect would if marketing million

Avenue, existing addition, plan, to bring another will $XXX of cash to DPE for of In weeks. of and million $XX $XXX repayments transactions advanced we is rounding of total out proceeds just $XXX expect XXX million total Nassau. of for stage million allowing which And at expected in – million positions very two joint portfolio at cash completion Madison in the in to we in a will matter ventures, These just the one about another generate closing.

at no debt billion These amount of for share to activities to very billion requiring our us equity funding our put positions, enormous With in $X us protection is having if $X flow, of cash projects comfortably years many operations development And provides little above. XXXX, target. maturities buyback well because paused, more financing an come. we our DPE place elect and sell until generating free cash program material

it some more entirely FFO Turning many have to many REITs are pull when XXXX our clarity. greater to have and of may companies environment, in uncertainty many this Obviously guidance; and revisit there it the and is given even incredible and likely level encouraged guidance us intending us to. expected done

believe we our on that trajectory view However, provide and a us position shareholders a investment broader and the Company's confident community with forward and go of expect them basis. the to deserve

and and leasing entire teams process we to the the office to just our in from undertook daunting retail all operations, our across our credit a aspects incredibly full worked task and since four real goes weeks. have So at who to plan hand to team an the investments company It's situation of rebudgeting XX/X mid-March and the finance to have group incredible formulate all been on focused this business.

for our new there of than $X.XX degree down assumptions account to $X.XX X% our $X.XX Obviously, $X.XX FFO is into the reduces mid-point Our high from revised our uncertainty. guidance. range to customary wider $X.XX many to and of guidance range are incorporated

concise categories do broad summarize providing them the our guidance in when manner as I'll possible, same initial I December. So using as in

count share are which diluted per-share all our I'll on First, of address numbers based. our

the been business that of of The there As about March, the not the we to OP anticipating was curtailed. executed our out Through unit of I in our program confusion of has of repurchase some read given share along research was Street XXXX, Olivia. XXX XXnd early certain I believe there, impacts and with consideration share parts the $XXX because closing million redemptions East buybacks fact

other repurchases. While guidance, leaves The real established. East us more XXX further share guidance the our sources close the included earnings In from and share we increases estate further have buyback without until assumed XX.X utilized liquidity than for be we $XXX XX.X we in of no no be buybacks X.X our revised we and did shares announced million proceeds versus XXnd will diluted program our short December. curtailing sales Olivia to the Street, therefore of million we our million initial by purposes in share million This count could

has has incorporated a forward into release. each dilutive This which last line night's effect been the in in material guidance of the rolled items press

in a year $X.XX no of the where portfolio, FFO $X.XX a the into share. driver of sales the property more contribution of for between is of components rest of positive the business get the estate real let's the starting to Now, assumption the and

our purchase The largest as included but Street, the is access buyers obviously and guidance XXnd not to as XXX $XX a process deposit failed this we've NOI the where deposit. million us ultimately it to $XX well, retain in the GAAP is a deposit East to contributor long million over allows of

their and moderation space teams portfolio and consider reflect in tenant rents. received as layered leasing and view spaces in predominantly retained not albeit gone of a Brett to a larger come. request conservative now assumption pace we for vacates rent as their then a leasing Steve view factor requests stopped back relief leasing, that smaller the Herschenfeld of in every Durels and every have of We might revisited rent tenant on a single early have the slower Within single XXXX, additional relief well for already with

real simply that It his operate that hits The implemented we weeks savings post more in has vacates the the be a will in have expense portfolio and a deferral short-term but low is Piccinich operating at revenues need tenant early world. factoring basis into in additional on rent NOI GAAP any a of partially a to also COVID our receivable. factor on that few properties sits to form to at comes built team costs savings can standard A implemented while that our earnings over offset a and occupancy incur as on last have little are will because the permanent books conservatism the while by The Ed estate Class be no paid. effect at rent we of relief

million and $X.X see size of All to the the from a we at the quarter our will the for the aforementioned dollar lower funding first trending sales. portfolio, told, portfolio just future basis end of and preferred year, In $XXX million balance NOI funding along debt the guidance million assumed new as midpoint on no the of a originations by the $XXX $XXX repayments range, billion equity increases have new at be with million. of obligations, of $XX we of GAAP that the

we tune between to million a $XX back about an during of the balances at of This average billion balance billion of projected results year and year-end reduces balance in $X.XX lower and showed investment December coupled of billion. $X.X with midpoint. guidance our $X.XX $X.XX versus an average rates Lower in billion the income

to or the Andrew regard other reserves, current Marc have part the at of taken the any DPE look loss and of we With investment partners to even rules new referenced well recall. closer CECL both as every as portfolio that credit accounting have we've single as in loans expected implementation

institutions portfolio. implemented all the Recall have a course over being of are that by loan rules XXXX that CECL

something been very, this is working long a on So for very we've time.

from equity million As reflecting a reserves related to is was in changes of X/XX. XX/XX these recorded reviews, recorded which quarter, result of earnings, we to first the any in recorded views total the only bulk $X.X of CECL, and $XX.X million which the of through through

reserves CECL, Definitely, high sell. confidence of related have addition left that's to we in degree In room to have reserves a on positions guidance $X.X also we our reserves. we for we Could that sell will recorded what and for we of million more?

our first did a of we other we during side, Rounding midpoint not in at per $X out as quarter. the million of reduction any our expectation versus income, guidance quarter lease the million model $X about revenue recognize termination income

we down fees So slower forward. expect $X that other a reduced transactions from million. of also year them commissions to earn and at We've from leasing don't leasing of projection, due pace full reduced we generic have million our where reduced $X to move our assumption joint to ventures we

during first fresh and the XX of for maximizes Moving a XXrd to after side, years $XXX liquidity. XXXX. have until no debt That repaying million bonds unsecured retention the we maturities liability quarter, East refinancing meaningful further of five

have us rates initial points meaningful it have plunge, about a falling of rate in benefits huge interest in we a floating clearly expense, over lower average, a XXXX, While basis as On XXX LIBOR debt. taken is our level was guidance. than LIBOR

curve top amount expense. LIBOR forward customary XX of basis curve us the plus our saves of point meaningful Modeling that interest on cushion a

that our used low While corporate We're appropriate, well. of did fixed rate bonds and of us an mature as million that. level certainly that of $XXX advantage debt more rate next where we may against recently see of swaps rates issuance executed floating feel take when considering year. fixed we of you doing it's We as

bank in we're Offsetting our we on $X the anticipated do rates, keep cash elected facility. billion the credit debt more of low we than we of available what typically having liquidity originally benefit carrying as because it than versus to

our to even the reduce with asset XXX debt extends the we That balance bring $XXX by line back XXnd line Street. East roughly So I and also of expect term financing that sales. coming balance million additional down with stated further in we of earlier, our could the weeks

rates, cost least guidance IN of versus we $X total, to the top at finally, $X originally the reduction million expect increases $XX And debt by another higher projected of of G&A the midpoint. combination and by reduce on balances we the nearly lower at new million interest expense financings million last year.

our as to is consideration This both COVID make funding discussed as stock Marc our also earlier, direct in of performance, as and effect which stock-based FoodXst well reduction the of cash the reduction of expect compensation charitable seed reflects into have the well operating as takes which deterioration related compensation a majority as vast on will underperformance of expense, performance-based. executive this This year. additional contributions $Xmillion we

you our Concluding on we projected Conference related call in our capital, not we will FAD substantial properties, to leasing our at are did a to million $XX with enhance revised our our actually properties increasing release, million, highlight guidance earnings by second-generation even or at after recurring considering elective flow. capital what additional depending reduction FAD but want December, we at Investor a numbers, make it, a thus that security building base safety midpoint, Marc? consideration $XXX of the the just $XX at to both in totals of testament outlined $XXX into reflecting our decline investments in guidance our costs healthy cash after that FAD a manage to the ability to FFO tenants, and taking impacts and we of over and guidance AFFO million, of all which very far, I've million

Marc Holliday

the right the And to to right look the tenants, getting only if also think exciting trends revised reopen we've We to on than four to forward it, portfolio lot as two say, thing doing Okay. steps Well, not we guidance to city. in now, that, and to I keep it's most welcome a think the I state little the going see had this committed to people which the of weeks. back taken but of Mayor the hopefully the for usual. is, detail longer Governor into is the have direction sort in Matt's just was next we a May market back the

– for want a of going We'll two is quickly. of and seems but it up We're per, It So It's lot people through already let's to take yes, the three. – line, to cut try we let's questions open questions. lot questions. on operator. well, to it there try, quarter

let's if out two cut So through see we'll we it. each, can start with questions

So I'll for turn over it questions.

Operator

line the SunTrust. Lewis Our Michael from comes question first of from

question Your please.

Michael Lewis

question, to Great, thank The you. DPE have bookings. investments I some a to some par below have loans some decision first the anyway, up. built you ask maturing here sell My little presumably you cash about more wanted when

just talk use and cash the decision beyond maybe about of So to growing kind the that direct pellets? of proceeds do the

Andrew Mathias

different I know of break you think Well, down they into categories. couple a

our we're that are where sales the we're of doing senior of Some positions optimizing yield. retained

then doing are are of and liquidity and want that trade for opportunistic there where strictly out feel of we're are to the have of Some just of assets cash use them we better we we the purposes. some sales

So of it categories. different sort those goes - it cuts across

DPE a plan, liquidity plus have to said, Board as source billion We the positions of shorter-term with available have are best discussed our to $X a of liquidity. us cash Matt and unencumbered

of assets. that to turned have market to is mandate on going on less and based required we some just So book the the yields par, than

we expect par. very clear to Some the to close of assets

Matt DiLiberto

number be. but makes the liquidity have liquidity million? to $X Sure, kind it's where that $XXX we of we think is our in we get. know if references, that closest that a Yes, Andrew of number. bank want the asset it is be structure, you measured And with - it's liability million. our as also we number it can billion an Could It's and and could us $XXX it be structure - it penetrable that's arbitrary

positive. flow cash We're

So we our But will after of feel that's anything will that, capital. you a we be beyond the sensitive those second year, half raise billion can argue and less probably be that. than which $X it raising like lot would with moneys the

we were would We - market there And with future were of the I recognize I be what XXX impenetrable in obviously XXnd. what deck. closing hard East the capital offensive we as just we this we in more. there after will refer consider to the mean, and with that have

and different for is capital really but have still that as and long-term credit all a asset and tenants. we're it's substituting sale we its planned, forms of its doing go asset great a the So, lease didn't

think I everybody we a don't it's, book, So which the have extraordinary that can the debt in that testament market, to liquidity it this say. I market, think tough shows in which even program do is

testament as a won't get So program. assets of the revenues York think we there have we business, and benefits there to of measure And It's the I the that's some we been. part kind other be New charges, underwrite. the City, of in it's a and not it's kind to dwarfed but generate of say

Michael Lewis

Thanks.

like this my could still you looks question, maybe For occupancy how say Vanderbilt. in and wanted specifically? - anything One XQ the this to the about timeline, whatever timeline unprecedented XXXX. to expect with certificate impacts I second about I you Is see say of yields and the project how kind that How on how else of what progressing. there construction initial that impacts ask is situation,

Marc Holliday

we construction, you months the were on that probably ahead of know. schedule Yes, three

And somewhat. so this will eat into that time

given We up August Xth. haven't fully on an

transit crew We and site public is have that have - safety work there that of on with lot other remember, undertaken. right robust are fairly people, work a is now, site because is and there improvements a we being that and

that and construction people will in site - on May. plus reopen and as XXX have probably We sites the how grow today

So we've lost some time.

consider Some in June some locations, going of York the we and hopefully waiving in the New to of multiple City of the work rules. up right that shifts starting May, by afterhours can make will

and industry one others of the we be a things lot in will the of pushing for. that That's

so through shifts time I to to can distancing XXX% you premium them a allow reduce can don't one think waive because shifts working back keep for premium of working, shift. to a substantially as working - lot people be - get by the you will workers in not you time space, or have

three You two even or can be XX% less. for shifts or

to or place. going that We're There to of I hopeful to September. August expect not finish it's, still like to that's schedule, So there a opportunities tough think of task. beginning I We said, going Xth later take is up than are be not, some going August, it's whether make be to ahead time. changes hopefully for are

account than so we projecting very full through can that we're back we at or don't we've really But see the more we month until of into. operates summer look, So, going and what a we're hours, lot make city because the period time. not delay But time we're the - how into of certainly to summer. right complement the we're gotten with up for know a to

So that's that.

mean I know yield, had we, substantial leases into going a of terms leased pipeline of you very - we - we In COVID.

had exceed occupancy We week, originally for December. some - the track we There, were last is leases I increasing out term XX%. to that more the We And the lead year to near tenant one in bring the think back nonetheless we given actually can be goal then, in on pending might to guidance XX%. rounded got or Steve hope XX%. got signed us closer Matt that was has

you tenants with to You the know we'll but anything of have still a this intention lot us, have month have of pause leases a pipeline have add to to - - work I we and you is can going two beyond us situation. every ahead take while telling do want to there they through been do that? we or think Steve, a people hear pre-negotiating,

Steve Durels

of feet. group fact in add are that I'll that ongoing tenants pre-COVID, when kept want square seven XXX,XXX were the another covering had clarity still about everybody larger the reengage sheet office. is to in ones to in in term obviously, touch we the back they deals signaling with those that the Yes, We've that once they negotiation have

other with one had of got two pretty to days, square lease past out video past for move and we've these an the obviously, XX XX,XXX we've them, ongoing chats deals closed we forward. series So, that over about continues in meetings the quick feet, order pending and that

Marc Holliday

you. Thank

question? Next

Operator

you. Thank

from Bank. line Deutsche the Johnston comes of next Our from Derek question

please. question Your

Derek Johnston

appreciate good everybody, afternoon. strong the liquidity Hi position. I

to can are question, buyback DPE I especially program, valuation you it's same capital the to besides cash on However, really the the your further forward? what what And raise do part the reignite mean environment levers and book? recycling of at pull guess I thoughts going this but

Marc Holliday

capital the scenarios, of JVs, right obviously, now. market sales. we'll around some to gauge to as and in in most will opportunity good distressed very think out sort the We're with that's capital a that's right But a likely, I into the have for different potentially that cycles of asset or running to think, buyers turn way that capital we market. Well, soft to type most now core recognizing get opportunistic quickly a trying looking And look is situations. past market they

where of in know Lex is Park, market last This you XXX pricing. we the good cycle, strong and type really XXX bought, the at assets

as interested environment they'll we've stable from seen more a So and be re-enter stable type those sort the the core offering. a of buyers in it core, to we'll market, buyer turn it- assets distressed quickly environment in, be of buyer

Derek Johnston

great. And a quick one Matt. Okay, just for

set the the accounting DPE. this only looking the period sell covers? the $XX.X time in aside and place for for relate and Does to reserve you're assumptions On what's million loans reserve this to

Matt DiLiberto

that number you of $X $XX So, that referenced number. there of the related About is million-plus CECL. to are two components that million

So is December phases. a the implementation, CECL of One reflects the of is initial implementation in first larger is the That XXst two number implemented recorded as view that is and your rule. in the quarter. phase

you incremental And view the took. quarter. earnings That's that then through record each in $X changes that we any million

reviewed charge position pretty $X thoroughly every took million So really another for them and and hard CECL. up we beat

about, million expect we've we those the is positions. $XXX $X talked in and that for the of million-plus sell to couple other change next The The sale weeks.

Marc Holliday

if I don't earlier. point if positions, the made by Yes, you'd sales way, the know those Andrew,

You probably good. money did, they're credit-wise

all trade because are we took - so guess assets, reserves intend are these and created shame sell I know of we thereabouts? not reserves a about million it's on assets You equal to $XX or know you

Andrew Mathias

last This the well quarter yes, - six? over

Marc Holliday

Last much, six? six, six, how

Andrew Mathias

untraded. Yes,

Marc Holliday

where of cost the of not - have be. capital But bit Little having deal. none Its know we trading we're capital. cost closed that's of want assets for to XXX to you You credit of and dealt we prior is portfolio penalty get care pruned issues COVID to know and a lot of. CECL and these a - of to charge anything taking I we portfolio, with hopefully we largely taken had have the guess in because the the

continued Whatever basis, monetize we now look us places have liquidity of deploy to to it that if portfolio else where great of is it you as for in in assets are a we want into, otherwise. will and as kind statistical our at those we a that's there source or on mentioned, and right we stock like so

Derek Johnston

guys. Thanks

Operator

you. Thank

from the Alexander Goldfarb of question next Our Piper comes question please. from your Sandler, line

Alexander Goldfarb

Yes, hi, good afternoon.

you've a - could you of for X property, just doing property you. think that X joint that like bit JV-ing the thank forgot seem talk sort and on as percent you thinking but One a you value it mentioned you're just few XXX% as you're Can of and JV planning other questions maybe with Madison? venturing created specifically better value little you're Vanderbilt. a at about and here, bit did And later what about - and I then, at little about the then Madison creation, about the Just X talk you would we Madison yes,

the of the at most Vanderbilt of maybe upside? initial therefore down more that value JV Madison selling One a Green part keeping on is small is Madison, it's thoughts X of JV X So versus value or at the initially SL

Marc Holliday

compound I'm anticipating first, a hit Yes, to Madison question and there. going X we're what XX.X% sell to is

the percentage don't a Madison this future years. explore of beyond That Vanderbilt, additional the no further would know be to we there We're that deal and lease-up. complete complete finish now. any going So I was the year X up intentions One on the if to sell for something there, question lease that. construction

the there of question was rest a... the on- Andrew was that, Beyond

Alexander Goldfarb

JV it lot you're Marc, of One X doing guys Madison, value at was that at if create Yes much a Vanderbilt. you

you've up value done half X it? Madison even the So on give why of before creation

Marc Holliday

it. got I

really to way, the because it's equity. said on deal whereby by know incremental raising could we deal the Vanderbilt - thing via contributing the You fund don't that's sits - we and have it's One good to It's We question. good XX.X% it intended and upfront any as a a structure same how the equity. have we

no right, the summer. equity of the I or intend close - that either we on incremental loan construction think to on that's de we're that minimis in top

tremendous dollars upside off just you how Right and or I closed, proceeds. continue selling of we I we're still to committed proceeds. those bought the to will also, to those Vanderbilt but committed Had like out-of-sale the have - and said we only deal. buyback think that yes, stock mean, are got asset that's to we're conceive in program. upside, wrong, out but would it mean has been go One we we've have remember, into we always program XXX So

compelling aside we the It's consider even today's putting was. So think be to more in the we investment at that's where what it's prices, obviously At it even market still best our the landscape. moment. than

our - our direction where just own monetizations the general we're it's more fundamentally is We've hasn't a best changed. into own and to buying because So still assets taken redeploy stock of just create to that we pause. really

Alexander Goldfarb

just Okay. the retail? you gave same? be second will worse, think collection nuanced thoughts And that you April. do be you then maybe it Do that question rent for around office think your it Is the versus better, will May is, some street -

Marc Holliday

their to light at get toward is into mean be being they'll it sheer being not in worse getting in the that's will movement May and reopening. feel April end see then look, there'll least it's I we to and horizon, a open on And who worst tunnel. able I of to locations had hopefully conjecture. of hopefully May that - hope the people at there I If in and restaurants, mean good Well, hope be muscle - the whatever we guess it's think through I else. retailers able back the of just light as element that the same, much because

we pay - it a I a We're I don't and I regular somewhere retail, should today have XX% can't roughly really it mentioned on between were and We're, to beyond month two going indicated have collections one - in projection thinking the know XX%, is over. our in overall intention. the they're breakdown street end give about still, I whole there as similar. or before guess, and good, we're think, over The retail. retail that just that I between know un-improvement. I high modeling street be that not XX% being don't very think I that retail, range. is part that will tenants that or but or you improvement

Alexander Goldfarb

Thank you, Marc.

Marc Holliday

Thanks.

Operator

each. you. And limit please and Thank reminder, two a as to gentlemen, questions ladies yourself

comes from from question next Korchman Citi. of Our line Emmanuel the

Your question please.

Emmanuel Korchman

June the the right that follow-up and fuller in more and thanks. on All July, have NOI then Hey, in guess partial a Maybe follow is you where reopening that the guys I to deferral given. Alex's - those Marc and way with to question, think projections the about May projections, guidelines presented it?

Marc Holliday

That's accurate.

Emmanuel Korchman

your are or Andrew, still then, an And you actually opportunity looking contraction, lend deals might that against this at in Okay. you DPE in and is no environment have program own investment new or underwriting team new others DPE mode? to assets where the aren't

Andrew Mathias

Yes.

conserved haven't as third could investment of as where what the investments interested of you an of is lie of year, the early That that the sources of cash keep or of over our offensive capital overview the David? deployed as course that modelled opportunities a market. said, new because Marc the we out think, seeing outlined us likely there, some I capital said, indications Matt will of of lot give in plan. will be we good party early, and manage may he we kind and thinks in active Schonbraun David behalf on he have opportunities

David Schonbraun

bias opportunities team Sure. are. there, is of of at making where on Thanks, at positions. end just or more but always day, best cost out everything and looking the sure we whether focused to our selling or the not underwriting Andrew. the always We're think capital, and it's is Yes, money putting see the I things, out working and

market seeing opportunities. we're So the and engaged in always

we finance of player real the gap out, is has I if think we like much one can no some of extent aren't but we do We'll do take now can't a or put has and the see advantage and specialty weren't bridge some the tour position if the quickly, some definitely buildings mortgage levered advantage and a stuff of that now local the that's all then travel how on we have because who are money or - that to people of just advantage. the an something sides rates right right companies it other the to to because need else people does. able mezz of guys have knows an

Emmanuel Korchman

Right, thanks guys.

Operator

Thank you.

Feldman comes from Bank America. Jamie question of next Our the of from line

question Your please.

James Feldman

I appreciate you. thank detail Great, call. the And on all the

So than had you switched rather distribution to monthly AFFO a actually about quarterly talking rising. and you're

So that decision going can your the and you forward? on about talk visibility distribution more

Marc Holliday

question was dividend? about It a

Matt DiLiberto

Yes.

Marc Holliday

that's board-level look, decision. Well, I mean, a

we came right, all know came AFFO your we going out can didn't whatever we was kind of really very we oh this much we not to sacrifice there's monthly come because here. that didn't felt and as to end, time come – because real-time we said, And that out So at as where guidance revised we into collections We add for well it $XX honest. visibility period God, we did was my million. we up really wanted go to out the with. out have anything, of And you're be

a really deferred capital. it's of mean, just leasing lot I

here, in And the leasing, way, we went emergent defer but it's the be that year. couple of we do or of the that, When with AFFO a anything called up, deal good an So to we nothing any capital. had out, we money. there'll nature were the projects if news deferred, this

monitor have clearly, Board a think did usual the feel like we it's but in conversation a it's monthly. the and come than all now, we with We'll prudent have could well. we're monthly good frequently things we position, April But this reasonably basis it So been, a decision. this on to to more reasonably for

Jamie Feldman

the likelihood people And then downturn, expirations largest longer. renewals? even in in stay – maybe with a of changed discussions across of your in pending terms lot to tend have tenants how this obviously, Or market, Okay. XXXX? place the thought of have some moving just of America is have in early advance specifically tenants any talking Have out News year and about Or still And thinking later I'm – it who renewals? maybe be you now early? are might too a

Steve Durels

of part where recall third, Yes. which is at We'll Conde that XXX advance. Nast,

space. the engaged has expected circumstance, where inquiry All you're think are result your we've and subtenants, spot I a staying thinking the tenants relocations. And with space that the of of a is that those number pieces potential discussion had previously current probably think number previously some to of about on, of in I vacate as sublet. across we now that of that see consolidations for been them were or about good significant we'll them of of a them And some portfolio,

XX% and doing perspective, to them chance an preserve the probably deals on where year the shorter of want type have in We five their capital retaining enhanced they to deals, And to tenant's the two shakes a from portfolio. every can and retain side costs, is see out. we with for renew from cut But that and our table, world where occupied the portfolio, tenant us. those big news capital of

Operator

you. Thank

Our from Scotiabank. next comes from Yulico of Nick question the line

question Your please.

Nick Yulico

Thanks. I hoping for NOI same-store cash a be was just your feel guidance how get to changing? might

Matt DiLiberto

rent lease adjusting be I Broadway, the currently between could the as we more lower, generically to and termination two – want XXXX income that, for It say than modeled, assume at X% down Nick. free detail but for things expect is adjust we you I and X%.

Nick Yulico

think also, Okay. about And much the the also of the expecting rents, are, in of that drivers a also of I'm how It's maybe should we behind assuming, guess hard be terms would you're in guess That's mark-to-market might terms year, what helpful. how end just that this Thanks. where is then loss of rents helpful. info some assumption, on follow-up, year? but I at that your to occupancy market And kind lower. any be of

Marc Holliday

mean, So deal goals the things our part some Nick, there, getting I and of objectives. you're of into with

we the at set out – everything to weeks. three basically call team year. weeks and updated the works to in doing of could I think commend have for those. that to we months guidance this We've And or come four four did this XX we going of we're for had XX the of rereview beginning out them with

and objectives. call. know it was we optimistic we change. we're possible. about goals occupancy, until the there by the don't In But aggressively I them. or at out I still and get to can think to achieve not wait able that Others, think I looking be we like have yet got half we'll of there updated had We next them, XX year-end

now, better do to July, is three objectives have goals from – goal our Our goal in months is revised that. and and we visibility into

like half change of hold occupancy we're that the platform like exactly I know the numbers but I change, we much. don't will don't will in where half is times, those that to stat worst below XX%, I And this have isn't Even that yet. But – a don't type going of we're said, and hopeful XX%. ever

Although, Matt, have you might a better…

Matt DiLiberto

Yes, that’s right.

Marc Holliday

from healthy into and into market growth this demand in that. a job supply very and perspective And downturn perspective. we Insight went

think was just I the December, for very Jan very are little all here go-space metrics so because there really There And – February that's helping was and overlay. very, good.

to to hopefully to of out hopeful in we'll we're of lose then have over rebuild that in able be few much this thing months. on So still the come start summer and a But more the not and occupancy. way

Nick Yulico

that. appreciate Thanks. Okay,

Operator

you. Thank

line Capital BMO John the comes Kim of from Our next question Markets. from

Your question please.

John Kim

you. Thank

Just summarizing diesel accounting.

to assessed following entire it quarter, you and that periods. least correctly? up Did you you I down, So can fair DPE in market the write summarize write but can't a portfolio it only once value at

Matt DiLiberto

even the around much more more probabilities had we mean, CECL CECL requirement every is CECL, I assess requires introducing that. – and every quarter. the to a to position hit stress Generically, mean yes. process I What before the we the it, in first quarter. much things analysis, equity majority those of of really year tests And really, on hard implementation and pushed upon through end at the take like the robust

also a Then quarterly basis, you do position market but position reassess every by position conditions. on

in quarter but with on chance come stress took so charge way we million incremental through is are further earnings. so go-forward And to the a we basis through too. up there that charges Any or goes the earnings, them first the that other the $X

previously are reserves you fluctuations reverse taken in thoughts that reserves. your around there can So to cause

where as CECL, I'll that sell we Andrew reserve even beyond sell better it, well. will price to at we we reverse say if because position alluded also than it, a a if marked we position a

we in at and it, that one reverse marked we likelihood of a if portion reasonable that execute of would reserve. where positions, there's these So the we will, we loan than better

John Kim

FFO I you're going the And Does CECL your book? change this reporting DP going forward? views also, figure year but shrinking your already, views on forward? of know it on size the core a

Matt DiLiberto

of portfolio. among is has view that is of by, view and That the every that our CECL. the other abide the influence other we aside opportunities in, from we're and of a rule the So really size CECL DPE liquidity the market lender are out there of separate The rules. didn't to position, our size the book. size company, dictate the our of dictate

with core reporting to accordance our reporting to in be FFO, not As to own. about NAREIT's FFO and create try we rules try diligent very

here there in out We that nonrecurring. do are say, things put information our are to release the the

add the that you practice. of that So can if their to But we unusual I want that's know And derive presenting out nonrecurring people don't back those the in they FFO, FFO nature. form can to. own call an as they best reserves that because are

John Kim

Thank you.

Operator

you. Thank

of from from comes line John question next Stifel. Our Guinee the

please. question Your

John Guinee

Great.

second, particularly, very at And your you Two much One for job. to you're days? that then property when that what is the you much had of thinking this – thank observatory Ed, generating that First, about DPE much effort, service? questions. quick Vandy the you nice a said these tech-payment much One of much pay debt cash that book the was XX% is And reserve collected. account? how that of How the how actually is is of kind or Andrew,

Marc Holliday

do that that. to I'll one. deck, try guess, and will Ob chance if resources the to just David have on you that calculate a number Well, take I give you

What Ob our will we've deck, unveil the it's experience observatory sort of This kind designing the will you to said, be December, of plans per just and not On December, think but John, we're be yet, to quite able back yet. se, this with quite not front to I not entire for the always there there spectacular. going we share

going over large people's in ceilings, is in slab facility objects I to good whatever market feelings floors, lot three conducive column-free, place nature a to is is, and because by its about experience. find the city. really say, think spread It will removed, it be experience are the very of think about I its XXXX a throughout tall – it is distancing, of the – so outdoor let’s

a a like feel I it's it's think – will people to boundary borderless to have and the call I design. or opportunity It's almost very intended all I it only a we're because think as compressed So Ob a I think people to the experience terms is low I've you mentioned occupancy. be to not underwriting, we by think experience to experience our only the its what congested of there million in put a very at year, in are – less and which not models two past, decks of end would wander,

we it'll close just we because be volume populous. It's mass because high that's in not proximity don't is That's not, a – experience. it the think haven't experience designed for market

I five-year that back or bridge, we think the seems launch of stabilization ago, bridge, our five-year – numbers Ob I you'll XXXX is deck long think XXXX. for Ob of real in a like don't project into time the So, in end kick but December, deck XXXX. in, we did

only to earlier, that's your or experience been destination it up or on kitchen wait I like and then, kind be and of the fare the of will well, will kind almost it – experience, So form a I'm of cooped everybody has not hopeful where escapism like than, other said this is. your can't very things basis but by wherever actually that who a go bedroom out

extremely very the that into will and we're this was think play other... optimistic. I well still What

Matt DiLiberto

back think to completely from number I you. what… give to what to not got a accurate, we don't you come comes want reserves, a breakdown I that's between

Marc Holliday

And in the best…

Andrew Mathias

What's what's… pick and

Matt DiLiberto

mean. what to I know want up, Especially you make

Marc Holliday

All we're right, going to John, have

Andrew Mathias

lot have a to loan of We interest. on reserves funded the pay

– as that is So not. we cash that proceeds, review

Matt DiLiberto

Right.

So okay. then let's paid, paying John, just our in – everything up or I of don't that's – – mean, else, to to just Forget John, know crew? if come can prudent we that's don't this, not, think like what's advance. in – get much, reserves it's think That's think forget pick if I somebody is money know just else. what's only to everything put up I as you... true reserve. it's I but back we mind. I part do equity do have – we But your of we'll from the part. your pick they closing And our interest draw the pay the interest, put on

John Guinee

All Well much. right, done. thank you very

Marc Holliday

Thanks.

Operator

Thank you.

question line from Jefferies. comes Peter Abramowitz of next from the Our

please. question Your

Peter Abramowitz

actually. my Yes, questions were answered

thank So, you.

Marc Holliday

Thanks Peter.

Andrew Mathias

you. Thank

Operator

you. Thank

Craig of Our from next KeyBanc from comes question the line Markets. Mailman Capital

question Your please.

Craig Mailman

said the color maybe timing. more NASA think dollars JV to guys. give partner a bit a door? going I little Thanks you Could deal out terms on guys of you're have there maybe and in you the just of kind

Marc Holliday

Sure.

partner I on building fall on to significant of planning that construction plan would put JV say. we're the both think loan start in I we made we've project expect next and in a a progress five starting partner on construction we to loan before and months, in JV in announcing those a place there three which fronts, a to the construction be and we successful both and

have a a expect for downtown So institution we significant investment a and to large there. it's build-to-suit don't equity

We expect of be really it behalf primarily capital. third-party on building

Craig Mailman

market were little an out this helpful. Then, answer. kind that as tough may you of put our of try opportunistic It's in-place early office bit versus to bit to that's I kind retail asset? little be a I if kind or know maybe dollars but would was today, underwrite of, assuming rents and a break where a rents Okay, guess, guys trying here, to one you it

Marc Holliday

hopeful I see rent bit – Yes, are hold what are mean, that stalemate. I got decline. think market let think this a let little of going of just It's to rents out I be I'm – is a got I you're because we a not period to to see. going we and that mean, to not play we to period going

have will revisit, we're onto think and hoping back. they and going We'll come to can this. you revisit who put I people deals Steve, you're – all hold see add on

that pipeline I dead gave I hold to but you put hold. you would told clear, to make pipeline were pipeline feet months that XXX,XXX deals been of we was You excluding be was going ago – we additional on has that not have XXX,XXX and know that earlier, two just want

Now concession XXX,XXX that will tenants back of or half it not come of to on are all the that? maybe if for existing Steve, to – top of that you comes back. still that even would our mean, look a fraction plan. to that pipeline But XXX,XXX some business support rent of free on want going additional I speak

Steve Durels

– helpful pipeline. add to be bit little Well, maybe let a me our it'll to granularity

term think sit or here have over to execution we converting that are today, square Those square term We've leases of reasonably sheets have we in a of XXX,XXX another out feet either active we for XXX,XXX document are As negotiation. high that feet leases. of sheets. probability

in then that transactions of we another feet term the COVID, square XXX,XXX were have XXX,XXX negotiation delayed, result that out sheets. as of and feet were But on a leases square of

deals, delayed that a that So tenants hope that talking have about. I amount the those those all combination and another with think requirements so time the of going is reengage away, feet that and of – we high when. don't billion a of That square XXX,XXX $X.X degree was us it's markets up the of matter are make

the the feedback And tenants right that going I is but is right wait on on rents. a face or a the not few push probably where market is think reaction in Marc's drop as to are immediate now and a the people from concession TI months that – what whether we're little as free that's much dramatic getting side, a see more as more far rent in as and goes,

Craig Mailman

you. thank Great,

Operator

you. Thank

comes Our ISI. the next question Steve Sakwa from from of Evercore line

question please. Your

Steve Sakwa

Thanks.

know Just security a way any kind includes provided. does deposits, that your gave both collections of cash clarification or I one those numbers pure of peers on Are Marc you the ways. numbers in that numbers

Matt DiLiberto

cash, That pure Steve. is

Marc Holliday

Steve, that Steve. Come on, hurts.

Steve Sakwa

clarifying, thank just I’m you.

Marc Holliday

to You really rent. Cash question. ask got that

Steve Sakwa

And in market the buildings. rent tenants Thank thinking about people coming of or do think to of come it about a against then as secondly, they supplemental. you do just needs numbers rent and and I And you getting on so side, fourth you. projections space? at as those least relates back Steve, expirations kind the from did into sort How quarter. they're the their mark-to-market quite of down And bit guess, of secondly, think kind space the in

spreads So because I'm in it a just curious it XX% those how in and declines or about that XXXX about you're XXXX? seem was did the change thinking XX%

Marc Holliday

Yes.

take one first. me that let So

certainly rents from rents. to rent term. where the the that's down side, world as I think the the knowing on long we think, Not immediate as or are over don't perspective just, of the our shock heads. measure quarter I in come think take a two, to I next to conservatism. the quick But we we the markets, the kind those medium view actually of office back where the the

And that figure square tenants going XXXX, to it's they're there And order opposite There's an that to of a of with out there's doubt direction exactly as I far spaces, redesign for lot per think before. trying and are had square which going who going space. distancing itself as that started to assign result employees. between out from businesses the needs, COVID, to back go provide in in plan footage no employee than before conversation. allocate phenomenon to where feeling they were how were getting of COVID, a their densification, they're of going There's footage – to lot consistent more going tenants interesting to as space more we're starting a message back, a were played we're to even that really the come that now that they're discussion they're

long does split operations It tenants Maybe that that their run? And offset do end actually for so the no. more will that by in taking don't consolidations, probably yes, some tenants up be then but mean maybe space diversity.

So I that's clearly, to think story the gone. the still needs phenomenon be densification, But written. of

Steve Sakwa

Great, thank you.

Operator

you. Thank

the Our of next Mahotra line Morgan from comes Vikram Stanley. from question

Your question please?

Vikram Mahotra

Street taking that to wanted clarify more so just retail. I on for the – Thanks questions. on

just rents? would and views Street deferrals retail, conservative. helpful. on of deferral? your of then just the about maybe specific numbers payback, length more color be especially Street talked around being those And the that in the You retail expirations Any on some But color any give us sense

Marc Holliday

question? the was rent. what retail Street So

Vikram Mahotra

Street retail.

Ed Piccinich

getting stores. back are back we Directionally most customers in on businesses getting rents, open, the the focused

office would in really no pipeline, I their will about there's no It's rents. There's hoping so and lot we're and tenants get speculate are we there's will all stores. mean, now. right to of premature pipeline. of it transformation, have direction in business pipeline be reopen strong retail – a that the at And back customers a very retail

the – rent the their now in of were collections credit we spectrum market direction. didn't deferral in have smaller tenants some that collections with, pay their as And Marc so of sort that not. do of the generalize of in April and smaller as terms paid tenants, front. said, per retail primary We with of rent how terms The working was deals in many most over to went we – leases. tenants obligation, same. big place affected So were some all focus then retail interestingly, our negatively we're terms in tenants that's right of as is had And some the deals the them, on several rent

Marc Holliday

we retail mean, went tenuous I was COVID. into as

we we mean, Most were to we we like certainly going helpful. thought lease. credit I reasonable not place. So felt portfolio is our – is a of be had long-term – retail found This

interim I higher. some be an is commentary, we that good who doesn't had And tenants numbers who in really sort the include of So interesting, credit. mean, didn't of April. these will collections Otherwise, what pay are

because I up mean, doing else like credit industry. us. guys. to unfortunate and be tenants, it's It's that to office think all is just in pay And don't the everybody or I retail, the us that everybody step portfolio this this it want with in it's state I again, just to they're retail larger it making plate, for smaller harder not work almost

mean, that. fingers on did go money who small and we who or because large, most. count be by Andrew a didn't obtain eventually and it the less, couple rent one – forward. to And step got there we I way, good it latitudes guys or focus small collections the whatever five see to – resources we everyone were to them So – But is need referenced, those they have that the still as need it's will it less, hand are because who be the – higher should to that's would have. will that way And

We needs to have resources the our whatever obligations, going do focus most, retail that. and own help to we we're who it as can know, the Street you community

Operator

you. Thank

Our Heck Blaine of comes Fargo. the next question of Wells from line

please. question Your

Blaine Heck

Thanks for taking the question.

it when that Or up on back expecting back, market you're and any change how there we to at in to close broken of think deal done, asset near So be sales the guys the maybe put asset? the aren't like me, strategy XXX sounds to is financing getting too about you in not should longer-term is that about earmarked on market? the the that new I investment guess, comes sort term.

Andrew Mathias

been in have JV close there, the of the I and because financing Obviously, coming put sort Matt would we out preference buyer adapt We deal the asset. in of to long-term to Well on, look And we'll we our yes tumult up lining the And job asset do JV that it's terms it's but place, to financing. said. contracted intend ultimately, as think in did to the perform. react. And of nature the of the probably it's didn't the of that market. great leases a

Blaine Heck

Okay, just pay on at particular, And general. then in it's some may asset. you and co-working not to ask that's that rent about WeWork been maybe in wanted But comment can widely WeWork helpful. reported obviously,

leases You two guys with have them.

expectation to current the they'll your for pay are they of rent on continue the is rent? So And year? remainder that

Andrew Mathias

on other of there's and the on and ongoing. they current on I their with current current two And think not they're are discussions us. leases one

probably beyond can't I comment So that.

Blaine Heck

All right thanks.

Operator

Thank you.

Citi. the final is question of Our follow-up a today for from line Emmanuel Korchman from

Your question please.

Michael Bilerman

of picture, In team I pandemic taking the I a building, from every comradery. single corporates. It's future And basically forced off creativity, big wanted Michael really Marc, you. the Thank comments about Bilerman. have that's a to you. of remote a work-from-home do the the has the out you hard needs your ask sort office the strategic of question, collaboration, tenant office space more with agree trial COVID-XX it's But environment, there. for to

And I financially of Chairman, of to corporates because know – aside lot a what, of I'm there's the and you lot over we're to we'll that social at would get part that. would I will put will look imagine going say, hopefully, going let's see. something density distancing lot CEOs, and that a and a – think But say, Boards the

they're see getting more right to remote, not it then So let's outcomes. and try the how office let's goes if less use react see space and

of going it working we're gives be try what you there's going that a because of more guess a that shift portion the XXX% I going bigger tenants effectively start are to are would So to to of do that to remote them, assume, from I base confidence not forward? a going

Marc Holliday

people home. look, – want always heightened who home be is tenant that's work – opinion, yes, would people want Well, someone of I are hearing at these or there to work, there now mean who talking not, were from to be be going there is we'll my to at guys that's and is COVID always some it whether not even before – rather part home, see. than it what who I'm from there we're our mean is base. part if I be to of people

meetings existing be the haven't on being itself the COVID haven't has employees, Friday base, some one saying, home, it's solicitations? business. because tenant do be be doing Happy meetings safely than it's I is I to be as our heard from people heard bureau Hours, But screen you hearing personal, say physical these with or a amongst It office. in of work. preferable how I kinds at this thing most or may – business with How Hours do internal But your to – do done more we're other virtual computer do a a relationships. anybody doesn't and may Happy people it is. are new business or But anybody you mean having to a especially

guys it now I'm and This done for exactly pre-COVID. and we And I've all this new. XXX sure video Michael Whatever never People is technology. times it you don't existed at XX had and looking previously right not have is it years like been is I'm years. to doing nothing now. have liked new conferencing as technology, what There and then

say works So, there'll think But I combination well and look, of exposed everyone be swing. now maybe been the pendulum benefit people or like, has that some maybe – people what preferable. the who in opposed to we're to going as by the even densification, it the not I'm was the lack with of swinging back de-densification, direction of from pendulum already to was what some already with

said I Now peace I what and – see he in him it's could as think how we we He as at just was – video. think that's it. on was, the saying rest Steve densification are look I

space If is work its we home. to And So we don't to want whatever space don't work but people whatever take for efficiency, growth than more only the we lose only and have should take take more from gain that that enough might – home what they than need. than room causes tenants not, from they creates – down often problems and its there because need, they them. nothing for will offset they more They technology, problems hopefully technology future. there that need we

of If workforce from it's not video they XX% a us. screen, have or said, for not, X% home their like But can at feel just that it's work I then on it.

workstations. Vanderbilt. not it natural enhancing when is it tall to it's no – people to at works. The to rules we do office-centric then, just and people. in And after best experience, workstation, ability just recurrence light, get cafe, there It's bigger collaboration control. we think, that their have done kind the rearview We I conferencing, COVID, are elaborated to space with mirror OK all, I of are going the at new in look mix We we even One in in Ed that but think, have It's still it ceilings, that at it under be with we'll on. the if is believe

Michael Bilerman

sense. on in totally or if blending which was the one your Investor Day it end of was the I remember don't densification it calling I Right. everything before, if makes video it, know this of – the is

Marc Holliday

the have reasons, Overlap]. don't I – Well, right peace. you for I him rest to was in see Steve be now right mounting always again but right is [Speech

Steve Durels

their that employees to going to XXX companies let do aren't what XXX such – not me component will it's I'll sense space the seat I'm go There cleanliness home. somebody that, that add to a to have thinking of and else to people to de-densification want about. that these any briefly offset that own concept small saying is a help only as from other that with is amount share to seat. and lot Well, want the good to was heightened of forward of away, that seats but plus add having everybody employee because of a one start going work Marc employees going allocation my we is go of going hoteling, every per to employee phenomenon, is who of

Michael Bilerman

of collaborating all makes, I element point. it and being the get think, we back together to that Clearly want to

Marc Holliday

a was sure. informational. This it's and everyone most That's warranted a company that But country like for best difficult very hopefully doing we're now. is our the Well, usual, and under everybody you think situations Michael. than around of – Thank city little come with but everybody. you away stakeholders I importantly, certainly, question. this feeling hopefully thank was for the longer right

months, to And that work I position on back billion that it our easy being with it. anybody shareholders. we best twelve, behalf then, if of comes we takes three getting we'll usual opportunities eighteen is, and is ready would time take that, deck, And this soon. back whenever – the normalization. be advantage hopefully to nine, we begin it of $X it six begin months, hopefully be hopefully with having of don't invest and are hard antiseptic an beyond think to and And of that, to whatever time able comes for

you. thank So

Operator

for and participation This your the Thank in program. today’s conclude you, does gentlemen conference. ladies

day. may disconnect. You Good now

SL Green Realty (SLG) 23 Apr 202020 Q1 Earnings call transcript