Douglas Emmett (DEI) 12 Feb 202019 Q4 Earnings call transcript

Company Profile

Participants

Stuart McElhinney	VP, IR
Jordan Kaplan	President & CEO
Kevin Crummy	CIO
Peter Seymour	CFO
Jason Green	Evercore
Alexander Goldfarb	Sandler O'Neill
Craig Roman	KeyBanc Capital Markets
John Guinee	Stifel
Nick Yulico	Scotiabank
Manny Korchman	Citi
John Kim	BMO Capital Markets
David Rodgers	Baird
Richard Anderson	SMBC
Glenn Heck	Wells Fargo
Jamie Feldman	Bank of America
Bill Crow	Raymond James

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Douglas Emmett's Quarterly Earnings Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. After management's prepared remarks, you will receive instructions for participating in the question-and-answer session.

the Relations to for turn President McElhinney, now Investor of Douglas will conference Stuart over Vice I Emmett. Please go ahead.

Stuart McElhinney

Thank you.

on Kevin next and will be Joining President XX webcast live This days. today the for website, Jordan being are us and our Kaplan, call and is CEO; Seymour, replay Crummy, Peter CIO; available from our our CFO. call our during the

Relations find our earnings section Investor of also the our can You at website. package

today's of non-GAAP the financial You call can during in package. discussed find reconciliations earnings measures

During These of made to this of, on forward-looking the available call, course assumptions we forward-looking the make will by, that based currently statements. and information statements are us. beliefs

by Our ability control risks, and or unknown and predict. beyond actual be trends, our results to affected known factors will uncertainties, that are

reasonable, can our incorrect. differ believe expected not will they Although and of results future be from prove be expectations, to those are future we be are actual that differences assumptions some may and material. performance, our to Therefore, our guarantees

For risks, SEC please Relations of of found be our refer some the section in potential a which can our website. filings, to description more detailed Investor

up. to When question-and-answer please yourself consideration one portion, one follow question of we limit and others, in the reach

will I the to over Jordan. turn now call

Jordan Kaplan

joining everyone. Thank decade quarter morning, a Emmett. year A off very capped Good strong you us. for Douglas fourth successful great and for a

the by for raised our signed XX% X.X%, same and value AFFO prior than same our NOI leases our line grew cash by The the office year by during we FFO our XXXX, leases was space. dividend X.X%, of by straight greater During property the our X%. XX%,

and average approximately that maturities sheet of before during significantly almost which At had rate end, billion XXXX. We $X we debt's year five debt floating debt, years no our the year, no added balance refinancing to term. strengthened

Honolulu. in Westwood, average a of a our and of assets asset weighted We fantastic our lease-up increased office in of purchased portfolio. only pool X%, our first very unencumbered successful rate and to multifamily interest is development Our has XX% completed multifamily

back grew X,XXX grow million to entire feet FFO over our square AFFO portfolio We XX% a by per we to We the from per portfolio XX.X share million to by feet. XX.X multifamily on units. Taking grew decade, square by XX%, moment our office our by reflect our share XX% XX%. and

a was XXX%, higher than As for more decade RMS REIT double shareholder the office index, total result, our SNL the the return than U.S. and index. XX%

twelfth another key us. our we is This remains our to commitment of reductions, more usage bringing total our X%. for XXXX, In consecutive reduced foot square electrical XX%. Sustainability year by a per than savings

at As was a Barrington most last month expect of property. our insurance know, there We will apartment cover our fire currently damages. our you Plaza that

stronger balance in is than set industries, ahead, positioned. ahead. very Looking our never have the continue better demand development constrained and been Emmett our operating sheet excited markets XXXX unique has ever, have us and dominant a opportunities market to diverse of platform, and share, our tenant about supply growth decade robust Douglas from

Kevin. to call I'll Now, over turn the

Kevin Crummy

in the good totaling submarkets. In feet square million our acquired which X.X we Class and equity everyone. our morning, units. six treated of a million, of of properties, Jordan $XX partnership office the Thanks, price JV. owns which be own as November, The in A will in funds, one XX% unconsolidated net operating and now through We purchase equity was approximately combination consolidated of paid a cash what we XX%

development our of completed XXX-unit As Jordan lease-up a mentioned, Moanalua successful year. this we

units Honolulu, be when construction exceptional we of completed, Los apartment our Angeles. apartment developments projects remain which office residential most at two construction with conversion multifamily Our In of development in high-rise project. tower, XXX the are also our on one track will In progressing we in well. Brentwood, are XXX-unit developing the

building in units XXXX. We four and are those currently floors, deliver to expect out

addition the our development submarkets opportunities efforts, our in more in we XXXX. acquisition expect growth from to In

With that, I will now turn the to Stuart. call over

Stuart McElhinney

a Thanks, covering square Leasing square new quarter XXX,XXX straight for XXX spreads including leases Kevin. for increased the XXX,XXX everyone. up, QX, feet line roll of In up, office feet, XX.X% we Good roll signed fourth cash rent and were X.X% for leases. We our morning, to pleased the the in year moved XXX XX.X%, and at Warner occupancy portfolio points Center year rate occupancy for to rate our lease Hawaii office our portfolio that basis were lease total and see to from up finished XX.X%. ago, XX.X%.

XX% achieved XXXX, and of line cash straight roll up all up roll XX%. For rent we of rent of

at our the side, On multifamily quarter portfolio leased remain end. fully

the increasing our increased while or by XX% unit year, units have multifamily we our monthly by XXX past Over per X.X%. rent portfolio

Before I the call like the we'd the over be roll Peter, expected turn to to initiative address November split on ballot. to

before popular. have nonpartisan program three focused every started, limited upon reassessed who For types weaken law, substantial not California, support XX% not will commercial XX to voter and be split are this failed, ballot thereafter. purposes. the property Prop prior those a property described the show has X% Proposition increases to have roll. are polls to years split also and taxes that property of we initiative tax Under to residential current only increased on All XX you are is term sale, education property very rejected. is Indeed, but all for feel attempts initiative even used for for roll

an this financial some of Emmett. potential are impact and Douglas have Despite variables you of the likelihood low the just at to asked time. many too about There impact to passage, unknowns quantify

not is observations. is get sale. some in properties it reassessed on a Having provide highly All can and we California speculation said issue, that, already In productive. addition, a political

to not have is said it are roll not implement The expected would transactions. roll. to be not or valuations who sales and assessors So they asset sufficient pricing, split impact responsible resources, would have split that practical for NAV, county

trigger tenants, be to not until reassessments office small leases increases rent buildings expense which require all not to increases. Virtually or with mid-XXXX. us transfer clear, we of should of roll our L.A. would of the some analysts most rules burden split to for think tenants. tenants some subject Although the even will expect our Moreover, to include involved buildings, are reimburse all that

now I'll our results. call discuss over to Peter turn to the

Peter Seymour

everyone. Stuart. Good Thanks, morning,

are increased pleased cash Compared XX.X% our $XX QX results. $XXX We dollars per our same We increase with quarter increase $X.XX ago, million. We to X% or year by fourth AFFO we to We increased NOI X.X%. share. a million to XXXX, of by the X.X%. property in revenues FFO

fourth increased per increased At same increased remains We For G&A We our XX% by of all below revenues million, share. to $XXX X.X% quarter our million. AFFO cash to only X% NOI X.X%. We FFO for benchmark that by well group. XXXX, property $XXX increased we our or of of $X.XX revenues, the X.X%.

a Kevin recording funds As presented effect a million, unconsolidated to affects it mentioned, on our about of increased previously which and our not we our in investment basis but of net one XX%, transaction The November is stake gain XX. as on $XXX consolidated of included FFO. this of income,

we and will to between the cash be guidance, share. XX% and will NOI growth office per $X.XX X.X%, be average we of X.X% XX%. Finally, $X.XX between between expect are occupancy Overall, same and and assuming property FFO XXXX turning

not financings. usual, guidance of our future does the acquisitions, impact As assume dispositions, or

the underlying the schedule guidance, earnings package. to the please assumptions For more our on in information refer

I the so questions. your can will the over operator to call we now take turn

Operator

Thank you.

We the question first [Operator question-and-answer Instructions] will go of And Green now Jason session. Please comes begin ahead. today's Evercore. from

Jason Green

morning. Good

just over from year office. rent year, you're Just curious be growth We're if curious could up hearing rent seeing. that XX% range, side lines what and you're with Hawaii the in that the seeing XX% on growth what to

Jordan Kaplan

for Yes, what look, we're project that good downtown on there. to doing took going consolidate their not had Hawaiian almost almost XXX,XXX feet downtown space. large down square just lease just Jason. have there's things been signed feet with of our University XXX,XXX Hey, very market, Hawaii recently. We -- a lot a also Electric for Pacific that conversion there

lot moving rents of on pressure are things and market, putting So that definitely up. a

Jason Green

we then thinking guess NOI into what Or should that And we a dipping? quarter, there? occupancy multifamily component it. store on Got I be in another just of Is negative purely same is going cash function the about? that read should the there

Peter Seymour

have it's to first some a disappointed quarter. noise this properties, three with Missions on we always results. and we're quarter focused reasonable quarter. quarters. are those Peter. improving couple a We had We're Look, Hi, at concentrated

Jason Green

Got it. very much. you Thank

Peter Seymour

Thanks.

Operator

And our go next question Please Piper today comes from Alexander Sandler. Goldfarb of ahead.

Alexander Goldfarb

good Hey, morning out there.

industry? of shoulder driven curious, seeing it I front the the would appreciate build, opposition come more huge guys being community, just from being XX. split you're the they So like it opposition of seeing as are sort real burden the seeing to would seem the estate by Prop roll you you are you given up most obviously of this? Or business the But on definitely

Peter Seymour

It's going to yes, based in explain it's that the come community And this. think opposition. way out really a against broad big to out, I business

a for have that large landowners land long in of You here have a state owned the lot time.

on not to this. of it's this, opposition So front that be have real the have to We'll companies broad the lines thankfully. estate

Jordan Kaplan

I'd any XX. actually already modifying like about to to seeing trickery even it. add, I about think homeowners you're don't Prop hear want I say forget

already owner, So, or I've wouldn't say, actually -- real of a know owner, what lot against estate I'm oh, I business classify heard homeowners as that you whatever.

Alexander Goldfarb

that what's you brewing just front, L.A.? -- will do year, of for on multifamily there's you potential add looking acquisition be activity then you as acquisition most will this to are the to think do or And Hawaii, think in Okay. your your guys in at a you

Kevin Crummy

just many large the multifamily there are think I in the Well, that challenge Hawaii projects aren't in is that side, institutional.

-- pipeline is And to pretty conversions. there acquisition in through portfolio So good. we're looking XXXX -- that L.A. adding it's the the the

we a that to unit and think make. I longer. were last to those little a mentioned at OP tend deals, take I of looking They're call couple harder

sometimes I multi-headed with But pipeline. making. decision pretty partnerships, dealing the You're long-standing about good feel

Alexander Goldfarb

Thank you.

Operator

comes Roman Capital from Markets. our go KeyBanc at next ahead. question Craig And today Please

Craig Roman

the to sprinklers, not appreciate kind insurance I mean, having that how you -- but exemption Barrington coverage, and kind were some the council some rid these vintage city of CapEx comments the could the curious in get guys older cost I much buildings? Just of these and if of on in of the buildings downtown,

Jordan Kaplan

would start out let's that. we appreciate with Well,

rolls We've trapped in out to want ordinances. the buildings. the the the to conflicting what And you coming terms the sprinkler to sort in long been city time. then we've actually and of of between for do, wanted of we sprinkler some a buildings, sprinkler So housing to have buildings

hope I will, -- bear things in in a place they that need they it any lot. there's suspect end, then to that they around so be, really did to just put still If do because there figure get way place would put make what it. in the doesn't that what still do. So to good cause getting problems I could allowed no makes probably kind have all to together something to would thing and they and will, in and effective, the something reasonable any be to then it it, they people put know cost out of we to They way, us would cost they'll do that's a that expensive sense

Craig Roman

acquisitions; curious on second of to kind at ownership of the kind of Or just portfolio? Then, looking new that everything there the of the are some just JVs? be properties more could you increased guys

Jordan Kaplan

a question, great could but Both That's could happen. both happen.

Craig Roman

Thanks. right. All

Operator

from question Our John ahead. today Stifel. comes go Guinee of Please next

John Guinee

Great. couple questions. A

or to the question. First, do portfolio, need on gain special consolidation JV dividend? a the the of That's exchange one the $XXX that does a XXXX million trigger

Warner on just can a -- Second then that Any the Warner question, you trade? third in for construction backyard? talk product in lot at Olympic XXX,XXX-square-foot West Center. say, traded the under in And while, is of -- your campus Can Center, construction in question a deal time there's L.A., the first little about Edge Bundy. under the a a you West bit product at including, and new thoughts

Jordan Kaplan

Okay.

also impact, you're So and gain a AFFO, that. it's the first for question of out required FFO, consolidate. just No do accounting the to stripped GAAP and you tax a all to is, answer that's that when

want it does. statement, that's almost has I but consolidating. So unfortunate to say I run it that's -- income -- the impact through our that to don't of just And

Second on Warner Center, hasn't one closed that yet.

want So the to third out. we'll peoples' let on We deals. And -- don't that one one comment the play

Kevin Crummy

in the are has markets Regarding John, supply been of most that the ours. to new construction, adjacent new

in going City. Culver So you've and things on some in got Hollywood

One called You've XXX% the Google's is campus, Westside Pavilion, now got in Westside which is leased. is which which

whether multifamily, to I referring and supermarkets is very site, mind multifamily, it. would whole think of and else the Cadillac Martin off wouldn't it and was mixed-use Side More project got click mostly a It's multifamily, competitor, something the small is retail that's big component more to is doing we and project a that It a as multifamily. in needs that's it a small office you're doing West the office. good. my someone that component with primarily say amount or we're

John Guinee

Thank Great. you.

Kevin Crummy

Thanks.

Operator

And Nick our Scotiabank. Please Yulico next of question go comes from today ahead.

Nick Yulico

Thanks.

Just the square you quarter describe higher West looking you schedule how next have conversations at feet. and XXX,XXX expiration sizable tenants, Can the normal on than the fourth Side that of over just includes year, in this four lease the the quarters, in space? whether some are going kind that of

Peter Seymour

are discussions, of Nothing it's and Yes, leases. large or unusual, a one No, not about going. normal we're working how the with feel those so It's for very and actively Nick. portfolio renewal across on us. number two spread good those leases, pretty

Nick Yulico

capitalized just Can the working the accounting this from an a an is standpoint being building, get And just going entire give separately right then for for multifamily do building evaluate another Honolulu. a NOI could the is building, were we it building building? you I feel for office that? now? to on as office we of it from how an possible us And if to Okay. a so mean, that question feel is as multifamily to

Peter Seymour

phases, P&L. from on -- I and again, this many right? then do multifamily depreciation standpoint, accelerated demo. this those doing will to we floors in as office mean, project. throughout the that our it's And the the floors on just, to an going Well, of online side we're of four begin complete we're accounting maintaining tenants the through We residential plan we roll to units, So, come

depreciation. have started So or those run to will through start through running

Jordan Kaplan

income think you're buildings, office seeing our are AFFO you're Yes, write and And our this saying the is it the has depreciations, But conversion if what by our building you is yes. it answer's any like I don't I through a where to building flow think is, Peter so we'll converted of I statement, to this. just running all so through still the impact which was the do expense there's -- of and think with -- start apartment. mentioned, But statement. the as make numbers. off you of more when income you're that over, it it of as and an office to operations renting being But in the we chunks FFO, capitalize now you way, an through the when building, spending turn the income units runs apartment

Nick Yulico

possible building, a Right, so to a from office what apartment is standpoint do out it and evaluate it if the we the of for take just get NAV is then wanted an as an NOI to -- future that? just feel is it building from we it ballpark can to and standpoint, the

Peter Seymour

buy buildings it's when take we it. Not say easily, single than in not the and typically building, we no. what's mean, I don't here's going on -- other something

and developing it convert cap tried that but and we values, spend is think, get you're the kind an as acceptable building we've the the developing we at an what knock what different it rate about returns park, of process, if we'll acceptable, it to whatever a to of building value need, subscribe think we'll for as apartment thoughts to apartment we now, said past to be including subscribe then and have building, apartment but out everybody what an to out wants developer not to an the have building. We the an be is in of can you building, past general, everyone what in in and get we think we've said some we'll -- numbers

Nick Yulico

costs. the Okay, on million we're guess return that to the NOI about type that what mean, we on the multifamily $XX $XXX I is you construction have and I what I that is -- to for a getting guess as of building? think should

Kevin Crummy

everything of But building calculated. into in probably that should And extraordinary. add I we development, it's Then now has what's an will that that Well, return the saying, mean, in office rate is But that's know, apartment I this value an rate with number now, plus the should what do individual be okay, million. today, of to level money think valuing on. be around to that when I get would million way to all would But also you the it? beyond to today? which want building have value acceptable it buildings. I'm say then That's money, the not the in have saying the $XX it don't be do calculated $XXX cap office six. way The we then you, will simple a be but you a cap the so I not is it's on

Stuart McElhinney

market started already course, what's And we rents going reason the to was improve told this and down the about and of of we whole office. there, office kind on with you

So how that's better, or even we going exactly hoped frankly.

Nick Yulico

everyone. Already, thanks, Alright,

Operator

comes ahead. with And go today question Please from Korchman Manny Citi. our

Manny Korchman

Stuart, versus occupancy driving where there large that? Peter, office specific moving the you any anything the that in tenants Is or on Hey, anything average dip guidance year? ended like

Peter Seymour

as average packing have the year. given an assumption the year, explorations you the year. it the We QX of remaining generally versus for in said, quarters in Well, any more is for

making the year expect early do year up. back rest we this So over be build the an good and the over to debt we then progress should of

Manny Korchman

XX. Stuart, your you remarks And opening in think I on Prop Thanks. commented

it's into maybe market this. sold proposition gain about potential will on their You to their conversations anyway. in voted just any to but properties properties worry even as mark with market cash, the tenants anticipate come the people going not market their being the changes transaction that as of don't ahead there Is

a more to owners like get So may to owner sell institutional yourselves. private out want and

Jordan Kaplan

such uptick you, proposition great go I That be around day. ahead. be a not love that has would was would And not it. transactions seeing there We're Jordan. is There one, which would isn't. can't day, but this any but Manny, that. mean, we're I Michael in tell seeing great a we

Manny Korchman

expect, you could the on in just you've tenants, it assume Jordan, is of impact market that know have of percentage what bought. can't actually already your buildings portfolio done you guess this all new terms I at would based and much I could that… I deals but

Jordan Kaplan

this outside when That's and definition. comes market a the has before. reasons Prop I've said in with thinks XX. to of it question to nothing one has hard own that Everyone do Prop answer is market three to its which XX world

If you as are rates are looking public we're at ready versus where do market we you'd cross you eyes the be does cap rates. as cap the when way

I So than as I then It's that very to would years, continued come you've what one And said, And very if you number that would with then I happen someone because of. how the a number I to number don't doing it. A. you the proposition few starters, Prop to to for out know, can't very ever path, you think or different have will hard been probably actually you mean, that you postulate and is and we've to it's have, think works. past hard wanted functionally do over guys know tried

know know and portfolio. figure we I gave whatever a you how whatever all I And we number, has a been, to What's XX% another anybody. chunk just So much was about, the We've are grown general or that added had well bought as since. IPO. you it you the growth the recently, just said quote and buildings way that we've better a in company the you know, of as it's no real out

come the said Meaning all you you mentioned, volume those won we've on where was have properties, is side, won and would have contemporaneously including just that we've all I on So still they out arguments don't we've you which high. too properties A. other those but IPL that even Prop where your

out So will where come that out. hard figure it's just too to

Manny Korchman

be long framed it's you it. leases because to able staff yet the right And it think have I do takes your time. And instrumentation, a a recover from the the lot under you'll can't-- even Right. in tenant. don't to This it

And does a there's looking overreacting it's I So market in you disruption. know, live beautiful. California, I FFO you there. this could pass you at that is that the XX where the reduced, some degrees. but increases I because live the impact think at And pennies the where think to? massive me is the it migration and know other know, it cold, to therefore is leads I there's failed in do potential financial assets up than though be growth that That couple tenants go state, to out and may bigger mean, think jealous even I'm [indiscernible] freezing every one you're Do risk from water you I from get right. its impact, and XX of the a and I the your it's time, the here in that this But FFO are. falling if there's pulling think of and

Jordan Kaplan

I mean, This mean, of I call. on want the that iceberg. issues. But, is Well, state this too to tip of the the dealing get on don't stuff you're creates political California I

employ long your employment that side the turned But the getting, XX% you they're it thought on which camel, tax out set know, rate, mean, the the how the but thing out I another mean, on give they went that stuff rules into camel's employment I XX, income people laws, state thought assume with list Now, I the prop it they're what's rates, I population state. saying somewhere to for on on they that when almost they large going amounts the mean, actual of tax hard back, of middle list thing. tough in. a the play where you companies the income, of I break personal us is the that passing. draws income huge in and people, I came last are of Prop of you you to if doing goes on, that income are you incubator how mature an essentially ejected know, XX the of amount you're the to person, this know, of make employing actually I

it state doesn't But I wealthy enough. the seem they're But these know, people same you leaving going. state stuff loudness growing. know. I'm you making I they are, about, XX they're to five read very you go, be of And then my all you wherever going net, you somewhere, the million enough's happening. do permanent of residents know, and read different like the people, of out people And know,

seeing So if you to say a here's light seeing here had on the the path, you're ground, level, at population and around all that and many if rails even expensive medium too densify. downtown a We're Santa of the still any seeing. even you west We're on We're Monica rail housing all seeing we're doesn't to there's side. want housing have the shortage to ground, continue know what seem light impact, people expensive. the

you're saying don't for what with enough. enough. straw breaks they're But the stuff these should the of it doing whole saying enough's camel's enough if enough on in. impacting So saying, is I And state, back. saying know is people the more enough. we're people yes, paths. be not But saying kind the do that There's that I'm can this, they're coming not

Manny Korchman

Helpful time. color. Thanks for taking

Operator

go next today Kim comes of question And our Please ahead. John BMO. from

John Kim

morning. Good you. Thank

had that kept same the of pool guidance guidance? in the at have your could asset your what had earnings XXXX you same store I'm impact would Barrington. But includes quantify the to wondering you if been Your store impact fire

Jordan Kaplan

it the to store guidance we loss would normally what it be think and because same way same you took collecting we the in way completely the in of happens say our different it's is and comes insured insurance is accounting collecting the would Well, pays the make Like lot. doing a insurance, fluctuate but insurance and around our rules store. what number insurance than a apartment around going

on another. took and it can worth literally they not let not biased way, by say the plus out out store normally would the because work settle a in insurance have we direction minus it's same it one the I proceeds So to or numbers. I to Which mean, the

John Kim

even But the your bottom Delta fallen been could to the X.X%? the to of X.X% guidance have range of below

Jordan Kaplan

the negative in positive say no a insurance up put I'll both a can when and comes the on change number out a completes have was again, stuff. and There's range can impact. that's can Would that doesn't same the results and store then insurance low? impact range ask I your number come you way mean, get too of in. it company question. proceeds you It equally that to

John Kim

I agree.

and same level Okay. you Jordan, the that? then go And and X, you on views gave XX. Do to Prop have confidence your XX we'll Proposition Prop of

Jordan Kaplan

me whole voting to You want give my you slate of [indiscernible].

John Kim

Could you?

Jordan Kaplan

Well, you're control the talking rent one. about

saying, the I our low got think the even the if mean, and a to little this rent the coming been in with It's statewide it. I ordinance, lower energy thing out kind the mission the control behind literally, even come other work. behind has on one's man governor it one are little so which all that's one politicians legislature and there's guy was haven't Hollywood, then, last state but very with a this little on same of sadly place defeated put time. even support, since with you And thing, a given very hey, support chance came backing in on, one energy. scene And

John Kim

not burn? you're the feeling So

Jordan Kaplan

feeling I'm about not residential well, his when Now, the comes I'm control. but it election and rent results, burn it seeing to reading

Operator

question Our comes Rodgers Please Baird. next go ahead. of from today David

David Rodgers

was a XX% to that wanted quarter guys lease. in ended there's understanding first know, that back asked about go earlier you occupancy but think dip office the the the to over you Hey, year I

more in recent number could the it which embedded pressure more? expect lease guys do made some Or you What's into pretty of quarters some terms bit kind little Is up? you have that fewer up? redevelopments retentions? progress just a maybe of to dive in it year? it because we can is So more good slower Is do this lease

Peter Seymour

It's Peter.

the some So of quarter. by tenants a leasing have not of happens a when automatically very bit had up impact of had that leases those that's of the sort the just back we that see that is This number affected you assumption the first what strong in outs. move of we have over the kind normally was And we and we wrote of of build year of in redevelopment. dip estimates typically existing course see quarter, where implies we lease year. first The and you then a you'll straight, new up the

David Rodgers

update Okay, plan that the at. redevelopment west do for on let the And ask maybe add to And Jordan, past, office me more of you're assets to you on in as in from straight updated side? that. the thanks then side, quick about you've XXXX, the kind where

Jordan Kaplan

kind of assets. we've done the that's on on And certainly it's XXXX, for it we're off changes but capital, the variance were that's that we're and those that so now I has just in may we just about mean, returns, But that repositions mostly moved the definitely we're roll swipe a market program know doing. it's seven legs list And and high mean, be going course, I the keep we those with and really it's we of walk didn't and years for, hand additional words, to I off years those table. applause [indiscernible] up that say was until through more last XXXX good, rolling wish Well, we're year, that that those done. which immensely years. that the a and two projects. last and

not letting of loose that. we're So

David Rodgers

Is in state. that pretty Will And versus kind steady a the be XXXX. of similar? that volume of activity XXXX

Jordan Kaplan

it's keeping think volume, but number yes, of dollar Dollar buildings, pretty we kind fewer I are of think we're buildings consistent. probably I and

David Rodgers

you. thank Okay,

Operator

today go ahead. SMBC. from question next the comes Richard Anderson from And Please

Richard Anderson

Good morning.

development much that an so spent rise the how the or that? high early brunt million far XXXX something is like And have on $XXX regardless if call, you wood that on delivery So

cost? total

Jordan Kaplan

Rich our to have all construction so we through what the of can I to number that of we far, And go end don't the but is XXXX. get you. going way spent to the

Richard Anderson

be to or an lecithins ability the more can leasing is on will something do foresee much asset of to zero there that? some of will gate coming more you One how occupancy than that out substantial type or that market there be it do you

Jordan Kaplan

side did opened, rise high seen NHA interest I kind a able be before development, we'll before rise, preleasing a to time. the NHA be hopefully suspect same, west you in of is this do do high thing lot some the waiting a strong pre-leasing an of to I they'll Well, happened know, that. this we or on it list that be or will the have iconic long was we be our opens. suspect haven't there some new interest in going and have even recent

Richard Anderson

guidance for your to Okay. looking then was store back same X%. And X% at

is a year. up ended preclude X.X% so XXXX to raised your of This would there You way year. of versus event XXXX in about or maybe your internal get this type looks sort there profile the the is ability good beaten, that of of similar of year something improve how over year, that see would growth X.X%, X.X% type to the anything course

Jordan Kaplan

get to we our going to year limit the upside. reasonable you a year. have I us numbers. to all see the beat for work we into every into But our numbers too. want going mean, I trying year. range you to I a gave mean, know, we certainly beat We're think And we these I also don't range what think range reasonable I that, the

Richard Anderson

I all Thanks. That's good. Okay, got.

Operator

Wells go next Heck Glenn from Please ahead. question Our from Fargo. today comes

Glenn Heck

Hey, thanks.

that up on question. last following Just

a same great growth that the but free should must is growth does and there drivers been of been from growth cash cash stick expect perspective, guys So And you guess we know a if cash in burn store so the off Can and quarters? same NOI strong, I got quarter for a you in of about free driver. sort talk has NOI in like the from rent some burn seems know increase revenues. of a right? so, had that you X.X% rent big gap have driven it Or rent store you've occupancy just few mostly I a cash by benefit around off next converge that that to while?

Jordan Kaplan

to growth in haven't analyze that that same haven't haven't gone free store I be heard point. we, off. I burn and came ram But any and don't from fair, think heard exactly we discussion I

growth that getting what hopefully comes that, fundamentals, and drives as strong equation comparing I are and rate you from of and and know, converted racing leases fundamentals always higher think the very is in just fundamentals I it rental mean, and the another you occupancy stuff all there's which bumps half and to.

You and know, not best year comparison. fairest I the current your quarter whatever, fourth noisy past get not noisy when is last when think, you know, go to you you

had the that we've girly. that's wildly had prior years noisy numbers because were so swinging comparison we've Sometimes

not was I that noisy not it think noisy.

just a fundamentals. So it comparison was of

Glenn Heck

Okay.

between Just through seems we but same NOI guess same-store details did I X.X% I offline. the what is little NOI elevated you the like on usually from go what the can cash and do, you a store difference GAAP guess

Jordan Kaplan

Okay.

Operator

question of ahead. of Jamie comes Bank Feldman next America. Please Our go from

Jamie Feldman

this, a Great, then And Can is was What JV about your you. yield see talk of of your question more the the a partner out? it partners out cash fun deal? answer thank sounds to earlier, are guys selling? space to but more why you will buy in to see we'll the more And just looking transaction on think you maybe partner? your like we why

Jordan Kaplan

But went pretty we to come they for get was a buying of them just a were think it. yield That that of good to the you when All pretty we close refinancing don't up We've saying their fund. as we're some to money; said, say, there we've ready got to we made yield. were then out good place know, so were And already with I us XX%. very the, should interest you thought we people right, people all they because we also buying end got said decade. to And last a not out, where the been opportunities. probably out. and frankly, the came we're good to rest we So yield. we're pretty

buy their the they market you they guy it's few and and which think just any yes. the said stay I year our way large guy want be structure, one one. the it But year them pretty partners, that had was end So to equity any much, find -- said -- exactly JVs, old. other to valued switch mean out new good multiple we way last said which every you open? so do we I'm count. now, at one number the dot And to to sell, appraisals, if years of to was And renters we and our we keeping with went we'll want go to bought the in mind said the is and -- we they JV that because not them one would of on from I right at the of it I structure thing I that, market; it. fund in the a want had to XX switched want the new structure, And said he deal, with to XX-year bought find

we And said interest went get. and in, what could we all bought okay, we so others you stay out, our and to

their to wants that in use going continue forward stuff do Hopefully we'll I up stuff it grow $XX.XX, to some and to ended like doing our now it partner a vehicle. good position. other because So think and it's

Jamie Feldman

XX-year, new and So, is it's a this -- sorry, structure,

Jordan Kaplan

did. JVs, It's like JVs the we the just just we're last that big two other

don't on all or to proclivity any the it's the others. then of it towards go. that the use terms put all any we and to same. buy it's that ready modern They're can And So structured place, in have we stuff. We

Jamie Feldman

looking how then more And is finance investment and of buying how large JVs? you out in terms you're both at it? and acquisitions today would the pipeline Okay,

Jordan Kaplan

Well, don't deals -- I tough. I unit think OP -- are

of by deals, in weighted pipeline. I think in the it's acquisition the over terms OP

how caused So we issuing it -- obviously going I obviously like those mean, little and I -- stock. much trouble solution. the are like just those JVs, like have how we know into -- you

those So earlier thought, of would I potential when going it additional were roll, it deals. in I there from don't mean, an be split here -- ahead whether that -- whether straight I tougher. hasn't was are trading this godsend. people was but mean, created like up asked a question, feel I and to the I California, -- sale

Jamie Feldman

your on markets? Okay. then thinking just submarkets? in last do me, And is year compare you to rent growth across for to are year think How last you the this what guys going

Jordan Kaplan

depends positive But probably asked on correctly actually Hawaii, [ph] West strong, Side West It part the at markets, But mean, strong. the of you I strong, showing very very is really strong. movement. is the is as the and the Warner Hawaii know, is very still Side the good moment. Hawaii very question. you finally which Center, some strongest certainly, -- valley

Jamie Feldman

or think worse? you better this Do or and similar Side valuably West year,

Jordan Kaplan

been the think finally cross from I by past, get XX% well. I the the ready Sherman Encino, whole of as I you while, its at slower like a Oaks, farther up think mark. the they're wow, but valley And to for Side. saw Runner. parts running to it's mimicking mean, been of getting lot people's thing's Road notes I saying quite have picked a But out comparison the than West it's West Side

I think we're up at XX% there.

So your that's what that what doing. are in what rates matters portfolio, matters rent market, matters. occupancy and Occupancy matters. changes across the Occupancy

you're look you deep at XXs. in the If these markets, other

course Of are moving. rents

Jamie Feldman

Thank right. you. All Okay.

Operator

our Crow, Please And next from Raymond James. go Bill question comes ahead.

Bill Crow

guys. morning, Good

were whether still Angeles. assets. six was we think Hawaii joint quarters probably about of I'm kind of think back whether bringing the talking ventures, just And I and about to the you or that's Speaking potential ago, wondering the JV Los it table, that, eight of cash off

Jordan Kaplan

I market, always be structure there opportunity, when and investment of do is going has place before, opportunity. that that Well, on Hawaii we -- said of Hawaii we it's said Hawaii's obviously strong was to assets. we've feel we I a And a primarily out or capital market, created have where the our characterize it to forward, and created of like a amount which of market is a involved. which The The place -- a right. Side is And lot stay has our do about get as never do what's lot now, in timing XX-year where good huge growth we case investment structure have that -- but obviously always a West mean, has is just opportunity a we've is L.A. this because like JV it an -- that's some to has asked other to want I a always going is where great where feel we still I've mean, right. been that. very to be -- Hawaii opportunity to want a been

a it is would We why in able why this we on bring to for it clearly do works to for done good also out like have We or partners and sale we whoever this, that but make to like just anything we the us. or for partners demonstrate this everybody, to JV works. quite want to that sale, where be fire a our want deal don't that is looks

this So that's we a on but pull tricky, that not but day. where think could that's I'm one day, saying we market one off day. definitely

Bill Crow

or risk, of else. all more was long there That because me. term ago, and from another fire press Barrington not that publicity of everything One the Is in a they Plaza. any sequence got? site of the impairment the the lawsuit risk, major and reputational fires two longer

Jordan Kaplan

the these and buildings don't advocating know council maybe at have to don't whatever sprinklering a you're to we're today. also building. hope permitting rent that because of I that answer trapped were -- the cycle between last to else, process next and I and play it. the see is that I buildings, reputational these think or that year. sort sprinklering it's the your the I news entire you our This long-term of matter is the out sprinklering to for there's what building vis-à-vis risk path. path advocating stabilization happens to for don't I adding be yes, over we to And say, be the building guess guess pressure the think a -- got city sprinklered ordinance but don't fire. seeing think actually the create We're I Well, has we look, I although

Bill Crow

the time. it. Thanks for Appreciate

Operator

next our go [ph]. of And ahead. Ishmael Daniel Advisors question comes from Please

Unidentified Analyst

thank you. Great,

where quick on to provide ones you me. relative market sit for Can these in-place rents few days? a update an office Just

Peter Seymour

to the on it's what over about XX% It's Danny. a been. little Yes, market. mark We're

Unidentified Analyst

guys the same in And where doing other EBITDA then see you from to were fairly XXXX busy ending 'XX this the year and debt basis? Do ended balance debt spot the on sheet. you things you refinancing

Peter Seymour

X something okay, like or X Debt-to-EBITDA; that. or that's

have improving think we I that. we we chance of chance have a -- that

that to our amount going up. debt go chance the so number. are improving think don't see that dramatic I of in earnings we we have, of I increase a have

Unidentified Analyst

And last actually Okay. just me. for one then,

do you you the expect guys year leasing Specifically, are expecting Given expirations type for a this year, of concessions? you can tougher economics discuss in the leasing 'XX? a stable or

Peter Seymour

changing. robust Danny. set, below abnormal stable leasing that looks we'd are that of I a of of think which don't But a that expirations it typical I don't a keeping that We're demand. our like know I very getting levels are still look of the function wouldn't tenant any well year done for see see very change chunkiness costs for a trends see in QX. that peer us, I at there's little size. in bit good I a major us. concessions. our We've is pretty job, good. The really our think,

Unidentified Analyst

Thanks, great. everyone. Okay,

Operator

like to session. for the any I'd And management turn the conference ladies over to team and question-and-answer remarks. back gentlemen, concludes final the this

Jordan Kaplan

Thank you quarter. all look forward for joining again with us, next to we speaking and you

Operator

now has you, conference presentation. thank sir. you concluded we Today's Thank all today's attending for

day. wonderful disconnect your have may You a now lines, and

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