CXP - Earnings call transcript Q1 2020 | Columbia Property Trust, Inc.

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Operator

Good afternoon and welcome to the Columbia Property Trust First Quarter 2020 Conference Call. [Operator Instructions]

I would now like to turn the call over to Matt Stover, Director, Investor Relations. Please go ahead, sir.

Matt Stover

Thank you, operator, and good afternoon, everyone. quarter Property first Call. Investor the to XXXX Trust Columbia Conference Welcome

and and the are management Jim Executive President today with team. Fleming, Financial Mills, Vice On me Chief Nelson call our members other of President and Executive Chief senior Officer; Officer;

be the our on We can with website tomorrow. our this file the this SEC and X-K. an of package, results Investor We audio XX-Q the our be this in our on on released supplemental afternoon and call Relations Form filed time quarterly available SEC afternoon which found section of replay this by with will

made Statements Form include Factors cause section to discussed Form differ that call statements involve Risk results operating risks anticipated, recent XX-K in and materially and the has from COVID-XX updated actual specific and results those which number expected including could other on uncertainties. those of events factors forward-looking to today's future most been are A XX-Q, risks. our regarding of

statements assumptions as and our us beliefs current are expectations, at well available to information on as made Forward-looking time. this based

Columbia undertakes update any call. information to no on this discussed obligation conference

this certain measures reconciliations can non-GAAP comparable also will and data. measures call, our be GAAP financial financial supplemental in we to found financial During discuss

With that, Nelson I to will turn the Mills. call over

Nelson Mills

the past these and of challenges of Thank during efforts the I'm times. unprecedented months. by couple continued everyone appreciate today's to the to of and to outstanding you you, going which welcome, during Matt joining team, call. We us the has execute recognizing much begin Columbia very adapted

we an and ongoing and team's have I crisis. our performance. been more top women during couldn't and men performance business during serving be everyone our our health our of serve the tenants the strong managing and Following proud of of The of and done our Columbia have job quarter, priorities people outstanding well-being the COVID-XX another first

We recent our the our let's terrific the strong further and high-quality last a of over through unique in we've platform, results. how on submarkets expanded assembled very the we're reaped top several XXXX. discuss Before strategy current first navigating I our quarter, in and benefits We enhanced share Columbia's environment, the creation building years. completed portfolio value performance leveraged

was strategic standpoint, respects. in the two a From first quarter pivotal

First, we operating completed relationships platform real transaction enhanced Management. the capabilities, accretive Normandy the interest Real and and acquisition and in of opportunities of pipeline Boston. This property York, of DC our New Estate

property from even will construction, has evolves capabilities to As integrated a platform management grow. And portfolio the core we platform and stronger have complementary a opportunities Columbia capturing development, world. post-COVID-XX a in leasing challenges result, management now and which more critical These fully for as augment managing an operations. services. now market provide We even our to be fund

quarter during Second, accomplished the a we remaining milestone of sale with the our asset. last major noncore

the our Columbia's shareholders. for very cases, end the leasing retrospect, the And now million. we enhancements combined We're result. of well Westinghouse suburban we creation given Park situation proceeds $XXX fortuitous in campus Specifically, to face. key in we as sale was maximize with other with pleased sales In for Pasadena Pasadena completed Corporate gross nearly both the in preceded of Pittsburgh as the value all and the timing

in a Francisco, City, the the in has DC following York and office San submarkets highest-quality Columbia entire Today, successful portfolios New very the of Washington of one repositioning, Boston. top located sector,

Columbia evolving positioned Many today's during such them today's Twitter, fully desirable is in innovative helping portfolio ways modernized DocuSign, growth and Snap appeal that well as companies, prosper finding to companies. thrive. these most and economy of new and Amazon, dynamic properties neighborhoods Our rapidly features the are committed to to

work hard properties results and of strong as appeal and creativity in tenant the demand. team demonstrate submarkets, chosen our as our financial of Our the platforms attracting well

FFO For cap quarter, $X.XX share despite produced recent dispositions. rate per higher normalized of the we first

also Our over year very XX.X% same-store NOI strong, the a climbing was prior cash period basis. on

another up on This and double-digit GAAP quarter Columbia's basis was cash team basis. a spreads rate quarter, ninth GAAP a ended of our March X% all-time XXX,XXX XX.X%, feet We spreads on XX% with this a Our leased consecutive lease basis. square on with matching high. leasing of

a The quarter at square achievement XX,XXX top attractive The while of XXX also noteworthy the new the more floors with than was expects Park especially quarter. for in New termination take improving second An space. covered well during the credit Avenue fee $XXX two lease the to a in record term per this over building, tenant lease tenant square A for the cost lease. departing York. profile of and occupancy our rate foot new was South foot, first

city's just most XX,XXX fully expansion our amenity-rich Class Street, at we addition, closed In foot the modernized of extension neighborhoods. a one property and M square XXXX in DC's Triangle, lease Golden A

expect development New with can strategy Construction Columbia's redevelopment conditions. office manageable continues on clarity await project the a year. the slabs and space we loft-style boutique XX hallmark lockdown. modulate We've very York, prime early in approach as all a to that and floors we attractive XXX uncertain COVID-XX city-mandated economic delays this value is At next announce this state-of-the-art two pipeline to Broadway of on environment related to A disciplined in of have subject projects, delivery creation building taken the office for locations. of highly in completed we

to space. three modern construction. have highly friendly the vertical expansion, and this environmentally and of running M XX two-thirds the District, the innovative, pre-leased Capitol and pleased interest prospective we're make building complete remain we're Union tenants located to Washington floor and Riverfront have we been Square to strong Pre-COVID-XX, designed DC in DC's demand popular At will Street magnificently expect Village. for working expansion first to unique at a this from in ideally mass Greenwich new office high, nearly of utilize This timber convergence building

allow with the and Manhattan pause press still Terminal the easily We also needed us in button stage. stages, have until to planning and in both if Franklin XXX emerges. market two design are clarity early these on continue other development greater Warehouse as which next projects expect time, Street projects in we projects, conditions not commit months. these evaluate cost and for several At design we Along market of do substantial cost will projects the to this timing, partners evolve. to the in these our

Turning to operations.

COVID-XX entire Our through on been crisis. highly team has managing focused the

tenants has and health cleaning commenced we COVID been procedures precautions and our the and risks the cases enhanced our early top emerged markets, course, our Of were communicated extensively as our the we employees March, of and In priority. taking. in our safety tenants first about with

March, and of late have eventual we have to the mid been preparing for security our and By the properties time, Since vacated that almost of actively have cleaning all reentry. tenants their space. maintained

plans are have reentry meetings our polled of tenants their safest live possible. to creating We all office our communicate and conducting needs environment and virtual the on for for concerns

As March for from home had working since our own team, nearly we XX. have everyone

truly Normandy to have teams challenges. Columbia to throughout remained even and focused maintained completed motivated the say tenants across the function members the more and the and fortunate integration in positive has high We have team shareholders. and team The before and entire we've by were the crisis. to serve with of to effective seen productivity We pleased I'm effectively team. to Columbia communication disruption occasion our rising no ability these

a on of economy. no and tenants to depth on This the crisis varying our is our doubt impact disruption, certainly Depending having will the profound suffer degrees. duration

the inquired rent. requests. Jim about thoughtfully our few collected of a share, April we As A tenants will have deferral, rent very possibility those have and we percentage high of consider

less representing risk on duration to see make requests. of of our than tenants, X% vast majority depth crisis, we the in total, of rental the revenue. further up the retail Our Obviously, revenues those could depending and

intent We balancing our will with needs duty interest to their our and the endeavor with to work of investors. protect need,

building crisis. on years, which of tech financially of In resilient over quite that we and been properties attract in we've the in of tenants of up growing the financially the Fortunately, media, most particular, tenants. the dynamic well have locations weeks and early a roster many have holding and targeted some focused

extended We also limited and lease and have parking with exposure. roll, very near-term street-level retail durations had limited we

San as development Manhattan. having WeWork just has well rent, regarding in have and note paid tenant feet. with that square in their almost all DC we're XXX,XXX I'll productive and we lease under WeWork them a under as property Francisco obligations. they April Collectively, rent at a conversations future as of their

believers are in today's that resiliency we ahead, we Looking working and this we'll nation, together, know challenges. the overcome of

flow and bright and a strategy. team, capital for Trust, proactive and yet our is the benefits This to see future which has of best-in-class value. We and motivated led strong a highly now allocation net been a asset our cash prudent disciplined qualified portfolio Property of directly Columbia the has a enhancement strategy also reaping

emerge seas of to our as exciting confidence storm. from to we Board demand will experience determination has this a sheet to through as crisis, team in value-add portfolio the core in it the and know team market our We proven Columbia's and well projects. but global take and our and leadership the weather for time abilities have balance navigate the choppy

to We it are over shareholders' protect investment and well grow meaningfully time. our to positioned

to to our both months. continue and trust to very deliver shown as professionalism belief want these in you the shareholders performance thank financial to on also work thank confidence and over trust. progress our your earn investment your unfolds. our especially I wish for closing, protect informed capabilities two and hard team and to forward fortitude to I deserve. We'll dedicated the your In our past you I and to keeping for look commitment our XXXX

call walk we're the today's as our results to position turn to I'll through that, and through environment. With financial our over Jim managing us

Jim Fleming

today's for Nelson Thank of all want I call. to us you, joining thank on you and

we've two no aware months the with over last or As everyone is meetings. and in-person to travel had adapt

of be any glad analysts we participate out appreciate NAREIT Feel video much reach we have time. time. this always, held with very a or June As the shareholders and me will to to to always phone the support get conference. you we're or Matt free virtually which will and our meetings, the Nelson, But on in at

out, pointed first of Columbia Nelson dispositions. highest we line our year a despite recent FFO at with strong in quarter quarter with As $X.XX, normalized had last

$XX reflecting of some the the based Our XX.X% was cash year-over-year, up growth best rents industry. same-store million, on in NOI

solid percentage feet performance And end our history. XX level our low Columbia's This brought XX.X%, quarter rollover. despite lease the in matching XXX,XXX to up the another and basis square points team another highest leased quarter during

in cash Our GAAP quarters leasing X% healthy performance at basis further will again very on a our financial a ahead. the and XX% support were which on spreads basis,

remaining repurchase authorization. million During the million quarter, of under we and repurchased stock our have common $XX our $XXX

company As spread, buyback COVID-XX we suspended program. temporarily the

outstanding shares Board that recently multiple and value Columbia purchases. an consider have to point, and members we made However, executives

our of times. a growth execution Columbia's the strength during initiatives, is of compelling difficult also balance has economic sheet, which long facilitated source

Nelson we the mentioned, $XXX noncore quarter, dispositions two of producing As completed the million. gross of proceeds nearly during properties

time no first to looking we in properties any the we're longer have that For years, sell. many

In March, our sale line Pasadena And in were March, we as credit of macroeconomic cash to of proceeds a $XXX additional $XXX quarter than million. on uncertainties $XXX draw our the million the balance million with line with more ended the and of from additional credit. late under we decided of developing, availability

Our ratio estate debt stood real XX.X%. with assets to at X.X debt-to-adjusted net net EBITDA gross times, of

very charge today a fixed X.X Our strong ratio times. is coverage

no Stores on those, Broadway debt due due of and year construction we a XXX properties. until We more $X loan next XXXX and this acquisition modest than have Terminal on maturities year. other unencumbered billion But loan an than have late

another of and source quality very strength only rollover lease long companies, this durations X.X% is with roster of tenant year. Our limited

yet the commenced, of that relatively from two for time benefit have easy pause making fact the not our redevelopment also being. to We it press projects

the our we've collected total For office rents. and month of XX% of XX% rents recurring our of April,

number And received of of with relief as Nelson working we're retail. [these]. have requests for mentioned, We a from a primarily number rent tenants,

revenues the However, our April. than for our X% we month are of and than less retail have of half those rents of more total collected

unless limited of be to thirds economic with only we a XXXX [two sources tenants of been our the become exposure revenues X% these of and revenues, X.X% are a has leases coworking on percent] revenues. strong our expiring materially revenue our of will from have worse, in we believe, parking Because our limited. our generating rents roster only conditions effect Our tenants XXXX, and of is about only transient

knows We're And exactly year. a in months announced many Moreover, how thought. essentially XXXX. guidance one guidance this no our previously well the our play new some on question including relies of peers, withdrawn will of course, no ahead. XXXX have of for their public out that aware financial economic lot We've leasing companies, the given for conditions

financial tenant we've to buildings of widen factors our the mentioned and the instead earlier, XXXX and to ranges our of base I based and lower quality the guidance. for guidance due on However, chosen our withdrawing

In that is Trust positioned closing, I to the emphasize Property current well Columbia challenges. to want address

exciting this Our it I Thanks continue portfolio And Nelson's confidence properties pipeline value in for and with stronger our work will emerge to team, the up-and-coming development hard that value. high-quality ever. neighborhoods to time, unlock appealing compelling share consists we'll while embedded of shareholders. our will than we take of

open operator, that, now the With you for can call questions.

Operator

Your Instructions] from Kim Markets. you. BMO first question Thank John from comes [Operator Capital

Your is open. line

Nelson Mills

Hi John.

John Kim

Good afternoon. Hi, Nelson.

what percentage next may wondering any range what some can for provide understand tenants on more color the rent have and collection expect for that Your there's collections, who month? asked but be April decrease, rent I you just May? you may in deferrals

Nelson Mills

difficult say, It's Yes. John. to

our deferral, gets shape as it we've how good lasts, are about option of It maybe course, conversations, just will paid are and well in I three That's the were longer suited and a discussions pretty obviously. or extensive then, one conversations. I at. quick There and back in office that two storm. looking to far, that on of weather office soon. But which in seems will months’ significant trouble. June tenants a from pretty depends deferral, our think investors we're recovery May, tenants But beyond, the couple more be deeper tenants on be so is this -- mean the more drags had this

that small wouldn't be with as of is will some tenants. From a that could retail, again, really rent GAAP push leveling, there said, on earnings, couple affect which but a Jim basis, a And with very rents, that well. of months. some straight-line as for it is, may GAAP the a cash of couple do percentage, We

But now with predicting office these to do continue through of it rents, as next say definitely team some will few will really We'll we tenants in to for high. retail be possible. But that certainly, XX% the I We're the high it it's the range. as said, is very we percentage, working -- exactly. working it months. is of extraordinarily get in high hard them help difficult keep and terms as hope be to think be to

John Kim

of WeWork fit Were does And they that? where in part the XX%?

Nelson Mills

one in at And That's feet D.C. San they the properties. at Francisco two has XX% one did WeWork for and of So XX,XXX pay feet, XX,XXX month April.

and discussions good paid them in various They are with We working with them about discussions the XX% in faith those future just that options. as on continue.

So at well. commence don't third not that It's the in of the number. as Manhattan. And there is discussion optimistic that it we'll And That's development. under is we're part least very until rents maintain -- July. property

to So of But should we'll more May, we see month number. to on goes. come But that where we far, XX% for expect in that so do we the should get April -- plus and that.

John Kim

guidance. on questions of couple A

which Is that's that about lease You occupancy this by what's expect simple equation, don't assumption that at the points midpoint, the year. expiring? expiring to XXX is the took remaining the basis space down you

Nelson Mills

come pull in uncertain of great Maybe thought that we that was the tenants majority But John. but again, it little the uncertainty not, number, shape No. -- did where prudent a things to think the into we yes. But of WeWork do equation, time, in given some are, our given bit. are conservatism but hope we financially. vast back that

tied not specific expiration. expected any to it's So

thought some And something it do time front. on more leasing be to conservative was this that? at want Jim, to done. prudent that get to yes, we add you hope more We to do

Jim Fleming

a guidance, just lot -- tried thinking and of of isn't lease tie percentage this is NOI set we've on more do one there's all you that there. and the John, just Obviously, what really, some a We've before recently FFO lot between one math Nelson. model. that, to they around more with do could done room. uncertainty than and comment and this the modeling -- together were provide But wider of a to this. really agree and same-store these out the these of We are and that. because just I on ranges assumptions all had based or

And you really can't.

metric affect things things one other affect metric. item, one would and Some another

pull we've models, done So to range back a done a really, what is tried pretty these different confident bit several to in. we feel that

this do And except so -- about think I we at read we our feel do guidance too wouldn't these, much into that point. good

John Kim

any one there provided fee year. this you rate the Or ask The run items in just a going I'll more. last in revenue came expenses good than guidance Were quarter's one-time the late figures? it management and original forward? higher is both

Jim Fleming

fee good Page we items. have income that's had -- supplemental, an There's point. a XX million. got And you you'll on legacy is have in the the our $X.X basis of JV that John, we a the what there what quarter our business. a Blackstone those which not and We additional is Normandy Allianz the partners shows full we've for from had it's a Normandy. -- the what now profit JV plus see page And not JV -- for been did about

this go reflective will businesses. a number of all is this bit, three those of So but up

John Kim

Normandy stream last figure right year, forward the that's provided that fee still for going you So XXXX? that

Jim Fleming

longer we'd off John. that some dynamic before is. business that, are assets Yes, It be time going the it's additional other we assume additional more might our legacy been as given before be right if additional like fees. we in we the development, the looks stronger. over is we do development sticky that because to underwriting before, did the now, hand, pick obviously, up that not on economy on to still would going probably taper business now, get we when before, sold feel probably that, time. business we did fee sold stream every have do over When But would it'll But good about our going economy the were a underwriting and what's

we about And really numbers. still good feel so those

John Kim

Great. Thank you.

Nelson Mills

John. Thanks

Jim Fleming

Thanks John.

Operator

Vikram question Malhotra from comes from Your next Stanley. Morgan

Your line is open.

Nelson Mills

Hi, Vikram.

Unidentified Analyst

Vikram. This guys. Hey for is Adam on

and Just do what wanted you Kind you're just expenses like a have it's going bit level, make reentry to of when moving reenter about sort operating type little high like the a in going could to what investments talk scenario? to that tenants could think building. forward what cost to of you look look think property what and of

Nelson Mills

Yes. good Adam, question.

So spending plans our weeks time of standpoint. of the that for team time, is bulk of the a communicating just making lot from operational an and, the with and tenants couple preparing as we last said, in reentry

doing at Obviously, we from we're to operations direct with are list, So a make to looking an -- social expanded. can help enhanced, greatly from systems -- cleaning any to lot, we filtration touch anything distancing. being -- where travel protocols can air minimize standpoint, just

I terms cost, material. think We're doesn't improvement. extensive capital in involve really cost, operating of But it's not it that doing don't -- all

I going So if know a add want really to to -- of terms an I to it's this. needle don't from operating think cost. Jim, don't But in you move the

cost on costs that? think learn clean additional more and Now we of if, would be reentry the permanent know maybe. the environment tenants if But these I changes all a more would to don't for I adopt that any as for substantial. safe, reenter, in Jim, preparing -- the time, thoughts to properties, over we terms and

Jim Fleming

But big say, bit costs, operating factors configured properly of in costs, There In are their may a and differently. some term, them near capital longer I'd all the may landlord Nelson. to hard near But there say term, not They think. people of one the that costs. lot certainly, at office space there, may sure are impact. but additional it's tenant is to cleaning be lot it's that, making be not of we're term, look that. obviously, be a going we and whole expecting really, in don't they with Adam, a I'd the a costs, agree say. I it's

Nelson Mills

amenities, to open over things X, In in don't conference commonly like We'll very gyms Phase that early used we that. phase plan or centers, summer. the days, other

yes, don't increase but staffing, it's possibly have I will have going just -- an scheme. that for could So But -- we in the we think meaningful security. of cleaning all staffing and overall to additional be for

Unidentified Analyst

That's Got And it. one helpful. really just then more.

leasing be seeing markets you're do high key down. are the way I it's the you rent sort of on what a could of level, across the on know a and because and just sort of growth But Just world tough early post-COVID it's of sort at volumes in ground? impact guys what just, think COVID-XX

Nelson Mills

is of all Well, net there an early, it discussed of have and few even in leasing very in are, and terms on dynamics are you rates. I have have going as bound pace I too, know but the sure I'm times, both it's to we -- there obviously we've countless impact effective mean a here.

probably On office the one from while. environment, is more to to less will sure. of that some businesses is that sustainable a in for home be hand, on but density is and be -- There most could for it long-term, get the work fashion short-term comfortable back work doubt I an going the it for be. out to

less more mentioned, room the to be employees spread other as so are dense in But going to and hand, environments, on I out.

yes, So one work maybe home. there's more on the from hand,

need hand, On space. some maybe more companies the other even

I buildings well-maintained be standpoint. think renovated on newly safety buildings, a over from new more buildings older, security there'll premium a buildings, just commodity

coming all the together, markets a about think I newly early. you'll the views all while, is But gathering buildings, while. of that apprised slower probably gap market all of roll going there the for the in would and our weeks, And a where buildings, a it's the you think buildings bit information is this given I for leasing widen. net renovated, most certainly But will keep be of it. say versus again, if pace definitely deterioration so is I generally, more effective commodity on the a be widening you uncertainty markets top or that where I modernized that construction, rents. we'll and between to in We're see Anyway, over maybe think new a gap going,

Unidentified Analyst

Got it. have if one just And then more time. you

you Just I move yet. you've because Madison rent the that densification it that from WeWork date, topic, world and needle is know hasn't exposure about strong of post-COVID opposite model direction? been it to to sort coworking just of on like and think a overall going just said much commenced But world, coworking sort collections do of XXX the really you the in your coworking, on to the stability a business have your doesn't said in where at the in pendulum swinging definitely how the be densification

Nelson Mills

and Well, They're more industry, there that space. whole to to I the companies are out. one takes, to think going right? sector, puts need that also hand, whole need are going on So spread in

be facilities, WeWork, less They coworking leases uncertain be for favorable. to -- others less those long-term lean times, are so Industrious, would -- And that. options also this would in

out where them temporary more figure until something a -- coworking is push all of employers would this toward might So going environment.

the space business, might to real employees their run, these benefit not safe is and functional estate companies and have for operators that coworking the businesses most might space favor, hand, and the and providing They're other shared be is might space their costly think and want On to then And going control own one space, aspect a to as employers not and employees work appealing. I environment all in are time-consuming. that other right?

to operator, traditional whether so that think really we'll landlord they a they to I can it's environment of got outsource or operator and trust. that they trust, extent But to someone more see capable be that. it's And coworking an the and an a

a I security, us there. and of think the they'll think traditional be perform ones So think again, and issues operators, of I I coworking or more the competing that creative winners. the like comfort operators, lot and in structures provide and whether their deliver a up landlord the step safety, it's leases, And who

So next again, for to digest a the several and to months. lot adjust over lot a

Unidentified Analyst

you. Thank it. Got

Nelson Mills

you. Thank

Operator

from comes question SunTrust. Michael next Lewis Your from

open. is Your line

Nelson Mills

Hi, Michael.

Michael Lewis

Thank kind do At $XX so there fund Madison, have to have they there. still? capital have of capital -- like million money commencement, you. looks to still in another put on WeWork $XX where but it million do XXX stand only contribute and commitment you to to they Does a not their July of

Nelson Mills

and does million, Well, commitment. so between and the cost that that WeWork windows, other is of what who clear be with it to elevator tenants, entirely $XX it and toward clients it's It not that tenant a million what remaining on then going thing. portion building. and to And space. into earmarked of depends be commitment Most for is building kind adding what our they improvements. the exactly out But $XX total lobby and bring the build what work, replacing base third our of can used is

of the the been already of much So all tenant at improvements have base building work done. has been done. much Not

would -- believe have happen the assume identify customers. I'd time. say appropriate as that fund that to at I capital that's think I they -- they I the

the standpoint, July. from Obviously, lease other now. right our they, are every construction down we But -- like locked projects, commences have in

and a a portion couple letter of of by a guarantee have the of for for credit. rents, covered is that plus We years parent a

good are pretty we in And options. in with are discussions shape all we I mentioned there. So earlier, looking as three WeWork again, at properties on and various

-- -- job a to I with staying we're and great very doing touch with the other and being a his think think on of given position they're and guarantees and good in out good come the WeWork that. state there But us the shape quality with more buildings, and of in come But I working the outcome. in to team are we're landlords Sandeep through the it.

our that's something optimistic work out we'll investors. result so And that very we're a good for

Michael Lewis

about Got I repurchases. stock the Okay. it. to ask wanted

So you repurchased about XX% now price where last was The in the is each two quarters. below then. stock stock it of

isn't other It's focus you. buy get REITs and in tough, becomes liquidity. you just companies, other on easier things this I then and of this course. see the for -- So and guess to back until

bit, little the as kind do drew you down where line. -- the a your buyback, stand at up and you So look leverage of you just is

liquidity. on do few price at look than stock focusing of looked the where ago? obviously where more now months you is kind You're attractive a attractive that How it

Nelson Mills

Jim, Great to that take one? want you do question.

Jim Fleming

do But Nelson. you're It's interesting my I'll best, question. right, an Michael.

As buy you it a teens, and high in this was there's happen, stock the just proceeds held all can We the we line there, out on did the this when credit. We drew felt uncertainty on from as before we much $XXX you million tell, on that focus bought happened. to just And we then Pasadena. to our said, so liquidity. the decided, of compelling

cash But got So value, and do fully and with question cash really cash a could see stock, compelling do debt to choose on stock just and some going of right back. that. We we buy of clearly And pay we've before always lot go is conclusions it's be it any a we are we to haven't to of take possible some how we a as that. what months the have really yet. some decide out things more couple come I pause there we and another But of balance our and down and that? may that And really to insiders we've to want shares a because the And might we big we resolved we some think back -- taken is, develop. now. think other bought said,

Michael Lewis

earlier now. to you're end question lease XX% of more. on was follow-up about comfortably have I guidance. one that Great. Okay. And just year, XX%, the the a It's the percentage asked actually then at XX% a over The

is of broken level. X% You've -- down just is you could got that the to of expect imply that, this XX%, that -- that about rolling don't mean the be range. to conservative to Is seems that low -- a get I is year. end the rest leases that that

Jim Fleming

maybe base, think Yes, that's a we us we But room reflective to to to of that that guidance. tenants And of lot we those would leases collections away the room. think some It's in XX.X% rent something X.X% right, the it, tenants leases, XX%. have so very are make knows, a will to tenants, really have be but down walk in rolling, for don't We happen don't the there to could retail. solid get from that right have some And who that's do I -- the just a try But we again, tried -- provide well. ranges and number obvious. some with and on some get seen we -- is adjust got doing Michael. focus some we we've more of the all the to all have these, At -- you're right, to them, and pretty just far. tech math tenant

have others. We some

tried just room. to some we ourselves And leave so

Operator

comes from Your next question Richard Skidmore Sachs. Goldman from

line open. is Your

Richard Skidmore

would on Gppd you future, -- Terminal and as Terminal and the be Franklin? -- Franklin, But how and out look pre-leased Jim. would we you necessarily opportunities afternoon those want Nelson just that have forward there Question forward? should moving mentioned into moving before thinking that. with to not you about Or

Nelson Mills

XXX XX is Street Broadway Rick. M, M It's XX Those XXX say. are question, And pre-leased. have mostly -- is Broadway longer-term -- and difficult shell to Good are bit we complete. projects anyway. the two a

The other from away are marketing and properties, on dollars you ready being discussions couple But that spending really continue. both of about to and go asked years preliminary meaningful a anyway. very two

with we'd end up or a I one substantial ideally, both. So pre-lease at mean

I determined. partners, that. And that's hold we may, our to out decide to with for But think be

is next a commit best really for absorb have more what be spend the to going breath, be and the more to or to just we'll careful take this think use months property. and not money demand we'll several we to in than capital going and the and where I is the

do that property. and for affect a to is They're pause commit couldn't the for know where don't little to see -- a for market we're well be to that going and and that is what configuration design we to will what can going commit where the the and goes. well-situated But market. both quite planning We would market going we the while we the the we They're that and and unique to out press just pre-lease. cost hold So today properties. compared the really

in very point, active So this wait-and-see at it's mode a wait-and-see just a mode.

Richard Skidmore

you. Got one it. follow-up, maybe One Nelson. Thank --

think to months, development given fold you've you their a that's Normandy in with of crisis the for leveraging out growth? terms of do expertise external about opportunistic? this regards and historical had that anything How of being in being you opportunistic Now maybe sort perhaps with few surprising Normandy to

Nelson Mills

absolutely. Yes,

a So comments, imagine we a as the to when integration just together few we've team. and been been done two team together We're has thankful It's we great very has we're in months. great. I transaction mentioned combination the working hard the The together. the opening the got I mean did. as been just teams, terrific

capabilities number so under development And doubled and they're just do perception experience Normandy that. management sometimes I management, a for properties. even and management. a than construction. other leasing, the footage lot that think have fund many asset reputation, our almost a and did and of development They phenomenal substantial property we there's And they management manage things, We more square acquisition and but

to for book So a Jim a as healthy it's business, which, earlier, going around be of nice said is while.

background to us the But gives very go look example, distressed this reputation, impressive and Normandy has The in very on the question, think for emerge. team I they I that. debt relationships, for had think know-how as and has there to more directly some opportunities successful your out team been plays, -- really

think So really goes good. and it's early are be where to experience if I opportunities I would that's look economy those bear to that. presented, at that bringing too this think But

companies more two now grateful very now, all even together. am have we're pleased knowing I we're that excited, to that more say what to So in the

just I about any don't I question to going this going situation us think that. there's it's think to forward. best equip the make of

Operator

Your from Sheila next question comes McGrath from Evercore. [Operator Instructions]

line Your is open.

Sheila McGrath

halt on there? wanting a controlled Just tenants building property? Or smaller, or there. perhaps already if revisit some I afternoon. the to But Good Are you on grinding sorry, a a they might Broadway, bit you building on of Yes. on late, touched kind active little activity XXX any more that update this. do like on maybe I'm discussions? thoughts hopped single envision a like

Nelson Mills

Sheila. Yes,

the to think almost It's on the all, we're on until budget. We're decision. halt the anchor time. confident property, in about several because But quite So this I from and were use. would it's -- use -- think location, the active was everything to is ground this in bit to crisis pause Up discussions of a We're our down well those weeks. looking that in finish last this right we're everything full great I tenant modern first continue of that property very a major this Everything there easy an we and world will well. And building -- hit, very go going path. few of do the building but now, unique amazing in yes, building. say, it's a forward has to

are shifted have have we'll they the rents, says -- see. or asking bit, what little is, to And market to Now taking a what rents we'll the see that. have about or competition

the I confident think that nature building, could be it given tenant. unique one the could we'll leased. It we're of one very -- full get be

Our that a very significant -- going belief others. that's is we're so But -- have supplemented with majority confident it's more great likely to it's outcome. tenant anchor a no,

Sheila McGrath

chance, were work building more or protection to out, XXX make the Madison, a think put have But have on -- small you capital that something I by back can letter in it you of with, do Okay. to know on you credit multi-tenant envision us, Great. quite to And some would on I it you've a have that that if you property? you take lot touched just building and a that bit. remind then

Jim Fleming

want, I answer you if the part. can first Nelson

Nelson Mills

go ahead. Yes,

Jim Fleming

be yes. Just -- to

a a So addition months is $XX.X place Sheila, parent million. that, guarantee XX-month which another $X.X rent, of for XX letter equal in months there's at credit to in And to also then of there's XX rent million.

that? question. That's of is the So million. part first that $XX.X combined, it's -- what

Nelson Mills

of yes, that. And first Right, yes. have you so that Jim. all, thanks, -- And

to to controls addition In $XX the But funded. the on -- allowance been that. between there million project. that's -- committed that have that, still monitor rights money we And hold of unfunded is to and we and the million that that we building that's we not $XX has over

So funded that hasn't been yet.

the if money, property we -- the love our what we'd So building. portfolio and did property do. back That's did to if -- took have you in if a we you and boutique that by the South Midtown it's way, have

have be what's But to bought buckets. would It's deal We be down years of I'm came reasons, that in terrific. We was two the the good option that WeWork for the at couple that's with best might taking more those than yes, do protection, have that it a again, what we described. if building But it as confident fund back we of number our But a to. ago, outcome a the struck Jim little for just would reason. time.

properties. As we I with on are WeWork discussion mentioned, all in three

We productive have this discussions very about goes. where all

on that. more hopefully, So come to

Sheila McGrath

securing top Okay. XXX me. Great. tenant thought on South. that of for the question I And was at last good news a Park Avenue

space to at you And in two, Columbia to number take capital clarify that one. mentioned more to wanted didn't that I going Just in bigger number put transaction, think was any you have that that building.

with Just do curious where old what that your space. you Columbia stand transaction and you'll on

Nelson Mills

you Capital there. the Winton outcome a over years $XXX Two on that top-floor to One, Great ago tenant, recall there. that foot. okay. few Sure, a we great tenant, separate leased issues for

ultimately. just space they out didn't turns all it need the As

a have tenant tenant than than over space a do but the we So taken of high-profile had the who's all rents the before. a bit confidential termination great-credit, in tenant at we prior the better roll-up And from rents, little it's new covers fee tenant new cost getting that in. more so

leasing covered was than all free So rent, commissions, termination more fee. that by

higher great got we cost. slightly a at credit longer-term no rents, So

bit actually little we made a on that. fact, In

the we'll building. that proud to it's exciting. So and that's great, outcome in have tenant reveal but And very time, is, great who that in we're

And then about have on we feet. XX,XXX at X,XXX feet. The our space, are place XXX full

feet X,XXX floor. on have fourth the We about

the need floor. we Normandy, with up merger the fifth to With space. We're more moving

fourth We fitted will the out It's fully out. It's floor a space. lease nice space.

that we -- that pay getting then And we're at well. on -- space And a years. good getting then They take we're several I'm rents existing had with. So even floor. took rent more for partial fifth And a get confident. we'll a effect, discount going as the an that, in so buyout we there, tenant arrangement that continue we're to to

call building in we're it our So very be also to we be continue anyway, to building. corporate to big And continues that again headquarters. demand pleased glad terrific that very a and with

Operator

There this Mills. the over to questions at call are no further I'll time. Nelson turn back

Nelson Mills

together, to you to reach today feel free any different to going really we'll you you I so is in appreciate We And forward. prosper. surely stay this us thank time questions for updating Columbia. we any please time with you bit take new to everybody question But emerge, want convinced -- us Thank normal some much. we that. will going with this forward to appreciate stay I'm working eventually out The the Great healthy of be joining no in world We interest ahead. right. a your and today. All safe about to and questions. and hope we'll months overcome again. that really and and Thank look your

Operator

now may concludes disconnect. call. participating, Thank conference you this today’s gentlemen Ladies and for you

Columbia Property Trust (CXP) 3 May 202020 Q1 Earnings call transcript