Douglas Emmett (DEI) 8 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Stuart McElhinney	VP, IR
Jordan Kaplan	President and CEO
Kevin Crummy	CIO
Peter Seymour	CFO
Alexander Goldfarb	Piper Sandler
Steve Sakwa	Evercore
Craig Mailman	KeyBanc Capital Markets
Rich Anderson	SMBC
Jamie Feldman	Bank of America Merrill Lynch
Michael Bilerman	Citi
Frank Lee	BMO
Daniel Ismail	Green Street Advisors
Josh Burr	Scotiabank

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 managements' prepared remarks, you will receive instruction 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 by us. this of, on forward-looking the to call, course made we forward-looking the make will and assumptions based available statements. information currently statements are beliefs

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

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

a Investor others, For which one in in the of of found portion, please yourself risks, limit follow-up. our be can SEC the potential the to question-and-answer some our over question turn to section When refer and call we filings, of consideration website. will reach detailed to one I please Relations more description now Jordan.

Jordan Kaplan

Good morning, everyone. I healthy. staying hope you're

of are the out impacted Our which and our with pandemic gateway rent considerably very negatively market's lease collections by to moratoriums, continued tenant-oriented enforcement the be markets. sync other

we disclosed were second-quarter for collections numbers April. our somewhat previously better the than However,

These office, tenants obligations. $X.XX to pursuant tenants' hospitality XX% share, tenant have we and the of per At our FFO quarter, most on our about by receivables. portfolio. That second rent retail from certain which from current XX% and of reduced in to billings, numbers our second-quarter related the wrote-off of GAAP, the we second-quarter based XX% including As today, end collected are of XX% from retail. pre-pandemic residential, our

all reduced wrote-off straight-line per those which to further also We tenants, $X.XX by noncash FFO related balances share.

will receivables per included this second-quarter FFO. from reduced lower FFO quarter by pandemic Of non-cash The course, about cash about share. $X.XX to lower also our parking future per income FFO the quarters' parking be and the in related share write-offs those crisis for the collections any reduced income. Overall, to and from $X.XX by $X.XX second

and As expired, improved moratoriums we see amended collections. the are should commercial

under QX behind We remote downturns, lease virtual XXX buildings. through withstand over Unlike of the managed free prior Angeles. business their having markets, During built face terms. commitment will past in markets small government do notch pandemic, diversifies kept In we X%. and best tenant own the of our XXX,XXX and know testament our recessions, risk. exactly defaults our the new for to strategy defaults the are technology. our in intervention, have downturns, We believe from overhang uncertainties by that our and buildings during with owners' current to office economy, remarkable feet, prior the and three actual Los other just supply local dominant leases have guarantees potential share downturns. best some but in We square significant very longer only business small personal low. our the present executed not our we quarter, impact focus a from platform tenant the a to driven This a been Despite and leasing impact don't investment average how the a is challenges accomplishment tours the

a XXXX. have robust, platform and before operating vertically debt we We integrated no maturities have

pandemic. to tenants available the our Our buildings have remained open and throughout

vertical mass transit, markets. other not the transportation we have concerns in significant do parking, Fortunately, or faced

crisis. this I we protocols of team the and call provided response has service have customer proud safety are to the will Kevin. over to that, our With implemented turn the We in

Kevin Crummy

Thanks everyone. good and morning Jordan

normal, to July same XXXX. mature non-recourse, interest in the that have liquidity significantly a volume units, steadily joint secured, million for at mature properties that rates. offerings criteria. projects. effectively units that opportunities XXX-unit our will over project end, front, investment to in our at development park venture XXXX. call units in forward, date, going we and construction market. will the is XX more to phase, apartments new years. building still bears swaps continuing by XXXX large have the tower XX-story forma construction joint And X.XX%. units have our we rate $XXX will completed two fixed transactions on the our entered is development in XXth, conversion pay and a On ample consolidated for capitalize of Honolulu later loan we secured swaps We see apartment quarter development We of Boulevard. the the expect Brentwood. XX leased our involves begun XX now four than our the multifamily of We've which first Construction Wilshire deferred loan part proceeds loan on the of XX April The fixed to The into rental below Stuart. as X.XX% rate is On year. scheduled at turn comprised new expected is one a the partners exceeded plus floors through May we progressing refinanced come By those ventures. one-acre for in to and be interest current and interest-only our has first next I X.X% deliver high-rise of XXXX, per to at May an match rate more west in Demand to fronting XXX off our used average Delivery pro We to units interest to and amenities. million includes expectations. XXXX. the begin of at first but of this following is for $XXX annum This the Deal expiration our residential we was LIBOR hope project

Stuart McElhinney

new feet, covering XX.X% XXX,XXX square and roll-up Thanks rent including straight we feet cash signed morning, spreads for Good line were square X.X% office Kevin. the In roll-up. of leases. quarter everyone. for for XXX Leasing second QX, XXX,XXX leases,

our Our line tenant with expectations. retention was pre-COVID in

during in Although the was leasing expected, occupancy office our the this have to decline that occupancy quarter recover significantly volume improve year. would to

of residential These of On the in our the pandemic. of deployments multifamily nearby including a side, of closing universities factors, several the and at the came move-outs experienced start properties variety move-outs from military Hawaii. higher-than-usual

quarter. occupancy As a comparison the during result, our lower-than-usual reflects same-property

quarter to Peter to strong portfolio the our turn over end. Fortunately, residential to moved results. back call now our leased very I'll discuss leasing XX.X% at

Peter Seymour

$XX.X savings that discussed. G&A XX.X% of partly in of Thanks income per below Same-property as reduction second Stuart. well AFFO XXXX, and a $XX.X year FFO This quarter the everyone. the write-offs declined parking ago, the or group. declined the the $X.XX XX.X% Compared declined NOI our Good revenue. cash Same-property offset of to quarter a remains result morning, $X.XX to parking as was cash decline our decline of $X.XX million benchmark share. operating to revenues, second At X.X% COVID-related well cash in million. that for and in expense write-offs, XX.X% the Jordan noncash of by X.X%. only

QX and be I in it's can the with continuing to far, still QX. the we say the in quarter. the local not early pandemic this around government that so process, appears ordinances, trends uncertainties guidance although Given consistent are providing

As we moratoriums but of some collections to and tell. amounts, improve expire, to past collect it's expect soon due to the too

is until will change that there at a parking expect levels utilization. office stay current We in

to have over Finally, take volume as Stuart now significantly. to mentioned, the will so occupancy later recover to would turn improve operator we year, can this I the questions. leasing your call

Operator

Thank you.

question come Sandler. begin from Please And Alexander the [Operator ahead. first the We will go Piper Goldfarb will session. now instructions] question-and-answer with

Alexander Goldfarb

Hey Good there. out morning

Jordan Kaplan

Good morning Alex.

Alexander Goldfarb

Hey good morning Jordan.

questions. two So,

and bit and first The number just L.A., eviction mentioned, a a the as that little give there on can perspective moratoriums outlier rent particular, We basically that lot their an you are landlords. in you people more hear ghosting the Jordan, is of as far tenants collections? is really as a the

of you us many residential, are in office, trying a and for retail many discussions? engaged to your sense ghosting lease tenants actually So, basically can how the do across people you modification versus give how are

Jordan Kaplan

Okay.

That's good complicated. a question. that's So,

up the tenants. of profile let's just back understand to trying to So,

one you collections, we gave XX% X% is did the So, we not thing collected.

X% So, because tenant be to when you tenants in would even had quarter right, way look have would the some that tried of number the didn't during rent at second COVID the all prior to to on say, happening. that, that we used We you us. really pay pay clear

it X%. Then right? that of that a balance We're not what are it than real we have clean X%, of So, what Out X%. paying left been, be amazingly sheets, had aren't think left that with write that we recessions, guys, have were X%, we that been X% to but tenants that we'll X% our last past strong with? Out of it off, you we said -- such -- strong in reasonable very such right? collateral us, that's less call them have would defaults have that number, last -- makes

those X%, So, that that XX% to are better, of least, we and that that's think tenants, last going out seen of I've to say pay. at

pay It's are believe look your do driven at an regardless type of moratorium. you is when I who moratoriums. X% you right, X%. these you penalty-free; that all go, being Now, not of them, rent, by absolutely

So, you could be fund. a hedge two-floor

nothing You to still do with have means.

a You to is when you or to get against have rent. you start any That's very collect any free time that. still hard paying, pay it have to ride. penalties don't don't And a fees, still

ordinance keeps are the of as we to Now, changes, make that. the some might at same cities the out, California I cities improvements. some will Governor see moving the say time, adjustments the to so make starting But

try like it hard where that of question? today. lot that are it's kind that went to going of wanted lot a on. make you answer to questions predict I and in Does that we we a but to there's to hit straight It prepared seems of and what around asked, really forward, So, we effort clear

Alexander Goldfarb

it like so fair is that it that not yes that office ghosting is A in to bit sounds, office think more a -- a are the bit. little with like work it's way? of fair and But the more much that about it Is bit [technical you little -- the it about tenants maybe say residential? in difficulty] and sounds really, retail maybe to to of trying

Jordan Kaplan

XX% XX% only-- retail. the it we was And numbers you, it Well, office, gave was

Peter Seymour

Residential.

Jordan Kaplan

retail? And the the And residential. was what

Peter Seymour

XX%

Jordan Kaplan

retail. XX%

we've you paying. So, they're include retail is what hospitality, know there, in theaters we in? -- that -- And mostly we to said some tried we include have when is not tried to

Peter Seymour

rooms. Screening

Jordan Kaplan

paying, movie theaters. screening just and some aren't They have we Yes, rooms too. that stuff aren't

of the to venue in that collecting, of number stuff. and they if So, disheartening out very it's much Still, look we we at we you the and profiles. you actually office now you we them out aren't paying the wanted wow, numbers over live shift said, get their of tenants go some a of that turn you But that that uncollected, us gave when at how to be majority is aren't were looking number. a to there,

Alexander Goldfarb

Okay.

leads So, Jordan, question. that to second the

You've it you been said You local about to carte are in retail, officials the out like really around need time? modify office to the vocal get conversations trying for eviction which or local and get regulations to more moratoriums the either there going it of getting actually mentioned and How to active people it needs the having specifically trying of Garcetti change versus last with to evictions Newsom who blanche? the these giving or it.

Jordan Kaplan

what I to in part, and City month. their and tough, still of Hills pass want them has, council thing at very mix cities residential Santa all. is it's up point Monica, to tough they of and L.A., a this I'm to figuring out. listen for of the getting from do just right city not And they to have view, commercial most put easy. very to not office pulled small like coming to to When the do like still have going but motion, something go is tough. commercial stop, us go Monica the that politicians, So, and individual to They very office Beverly out, you or mean, Santa is retail but any them thing, Garcetti L.A. or the of out right get members after they now,

this ended So, had there's that statewide-- if see some month. just then September. Monica, from Santa impact when governor in we'll the but it extended also Hills Beverly the But followed

Peter Seymour

Statewide emergency order.

Jordan Kaplan

order. The to emergency statewide Beverly the that extend order, extended the extension took say order, should right, emergency our Hills we it, when governor

did. they So,

and So, done have of for they is and I expired, think couple commercial which generally these have been up is negotiations to stopped a just on they've And evictions lot to able of theirs tenants. it Hawaii better, what would deals out our of for work better. and but the done, most another we've months. rest now and extended tenants, landlords with there, the the between been collections has that's have worked

very hard unilaterally, the they to without tenants because work have deals penalty. it's pay with Here, rent to on don't

So, until it's hard to deal. that's be off, to bilateral make going a

Alexander Goldfarb

Okay. Thank you, Jordan.

Jordan Kaplan

right. All

Operator

And our Steve question comes Sakwa next go Please Evercore. from with ahead.

Steve Sakwa

Thanks. Good morning.

Jordan Kaplan

Steve. Hi

Steve Sakwa

kind actually number but interesting of a know environment, we've given of the in what a the was new year? of looks than was pipeline others, the I dynamic from it from that maybe what back tenants, it's amount Jordan, what smaller you to for leasing had maybe half more bit decent and Can the the hearing you the normal, guys see talk some like encouraging. of just your leasing seen you're about kind lower activity. today

Jordan Kaplan

Yes.

love what space the the I our actually harder I'm virtual floor. even So, off all allows doing. I on right could DocuSign, all we have to And that saw pretty really we done stuff are to hit operations. people this, my XXX job transactions, this when went started lease finish the I had lease off. -- and they I and pressing say when our quarter, quick operations quarter bounce we that side, watching the and love

that number, That anecdotal up was got means working. that ramping an in put during place, assistant XXX. getting literally, not quarter, that's and Now,

and you happiest? the that's our It I seen have far and of that if what to of the were do perspective, a that quarter? this further seen maybe many to we backbone that in is from what operations fact said So, recession me, have refinement And further leasing I so deals. the able the this

XXX,XXX Now, look, feet. same at the time, did we about

of leasing numbers. have would you to be typical. we that time. us and half would more the fact higher normal expected in new you the And leasing, the would do time we side that that otherwise thought have that renewals. a a of of new compared do full most a did XX% of You XXX,XXX, did would impressive about we a But XXX,XXX, is in to did is lot normal

how look, about I drive able -- the really certainly to So, is that slower, been adapt I feel but transactions. and great pipeline to feel leasing has

of we'll see even we next the do very to Now, predict how in quarter. the to harder It's hard and down. It's kind predict right with up now.

home, stay frankly, going of in. we're back at some we lightening up the totally have stay-at-home. We to again, in we have maybe quite at lightened we're went news then getting now And in. then areas and And least start up

mix we I'm transactions. will So, so couple how that that I But don't impact certainly, fact know quarters. many to the next out knock happy were the of about able very

Steve Sakwa

it's anything realize there's the in not Any sort to shakes that you on getting the probably more and advantage your that just second bit lot would maybe allow a a side and lose. the I of Okay. is that interesting? of guess question. opportunities? kind But distress And still investment system some and of partners take transaction I early

Kevin Crummy

some off inbounds. Hey, that. get take slow. to but Kevin. we're It's A It's lot put just starting I'll pandemic, the got by Steve. still

transactions so And and a wanted what thing it's of wait see deferred a lot and people where their of type happens. to

so investment next people a don't they whether I seeing of out, sure. criteria some expect lot start not or not I'm things months or pop meet that would assets levered the of have where our We we'll up. And not, couple over

partners as are to sellers more I about, take and that that it's liquidity, like, And we think manage kind discretionary having tired really I call, out of last ready said that our of through so things pounce. ample we market. this to And might something have to we're for and

Operator

KeyBanc Capital from come Mailman Craig Please next ahead. question go will our with And Markets.

Craig Mailman

guys. bit. on a the little question Maybe Hey, investment following just to

versus want or at opportunities You past, with investment opportunistic where kind pretty starts the buybacks. you have, in the powder do make Are of to the sense guys dry? that been keep to level you

Jordan Kaplan

want then to -- stuff want were you second trying buy typically And is to are stuff? wheelhouse, buy, the the all doing -- know would is look, we it. actually we we outreach, if answer own even, if the go buy, yes. we thing, to find in stuff, Well, our definitely question our That to that there are we So, opportunities right? right

So, are of is working We long-term. markets super one believe now, right them but the certainly plentiful, are avenue not there's a we transactions hard, that of in appealing quite they're and that that acquisitions. very variety

money with mean, there's there. think we we And you another open. well. three two continuing in his watching repositioning. And the know, moving the putting I remarks, Hawaii. paying But heard some moving the And think at base they're thing We're capital. the be into our have from long-term at me already will of we're on base. to than believe a as tenant the has defaults of our better for and that the refinancing, in floors last keep return on still which will banks tenant gave we're prepared end the eye doing better in whether and Kevin, seeing that more that with we're And of to along You trying a regardless said, we're I leasing day, on an repositionings, there's out moratoriums times I on projects, the record. forward roll development track big information actually also and is there. that waiting even off, lower I those our most. be kind

good use opportunity don't comes opportunity we want an up. waste it to a to if So,

Craig Mailman

million last the the or year that the over next guys we should in mean, emerge of repositioning kind probability two have you being about of Okay. viable I And talked couple from about how COVID? brought is we kind spending you of quarters. $XXX the think of here of as

Jordan Kaplan

lucky to Well, equity $XXX and Do put we normal than out, a a that in things just that buildings, and out we goes or out year rate that that. of we think up, million? a of I one new construction, said, investment, just a with we we're came mean, hit hope there's two like okay the in. probably number a would then see million developing inquiries, deal over if that as number. that, over would would like bid acquisitions. the But got hit the the this would you could comes market. in $XXX I out getting out run new I of be better time, got this on coming I if is interested. I it something that. more new and than Nobody's running to Really, would do it right, like, new of two repositionings -- came say, Probably million, of And us $XXX had But that

Craig Mailman

one. quarters a XX% quarter, then just much R&M kind the of versus deferred of the kind Just that come of how maybe expense that to quick of may And -- one bit. have couple this trying out been was little savings may next just lower The what in just figure utilities?

Jordan Kaplan

don't from the savings I deferrals. any expense think of source came

all I categories. I spread And think think-- they're the across

Peter Seymour

the It's of Peter, by a expenses, parking the a scheduled not R&M janitorial, lot whole way. side. lower lot and and the of some mean I services, lower on

Jordan Kaplan

Yes.

on occupied think the gets aren't from spent the not to money that comes occupied savings as expense acting billings building. spend quickly fully fully a I when

Craig Mailman

you. Thank Great.

Operator

from go be will Anderson ahead. with Please question SMBC. Rich next The

Rich Anderson

this make and assume question. there. and Jordan, you out collateral, write strong to have X% what just that off. then they want that understood were-- of sheets great isn't just X% said. sure morning I the said, you balance you said Good a Thanks. Hopefully, meant them you I I

Jordan Kaplan

them No, didn't I off. didn't. write Yes, we

Rich Anderson

Okay. correctly. I you just didn't hear

understood. Okay

Jordan Kaplan

didn't off. Yes. We them write

didn't is So, X% what happens that pay.

companies pay to others tenant, off by look three they're pay, months, for talking wait tenant out going telecom They pay, go, you're right start a have X%. minute, right? about didn't then and well, us that like you But you didn't we going maybe obviously that. So, you

said, didn't have floors, We So, accountants, floor have I know we or pay. have they funds, have, like a they we pay? might two to we hedge they're might going lawyers,

sit So, write there's them group that and languages modern-day to off. go, a have there you okay,

ago, me If sounds like would which we you them, called a but okay, feels have against would have reserve to said what gone few it more write-off. now years it's

people you write So, don't off. those

all Now, say, off up then in When why you saying to that's got would broke you. less than down. real look said, rate we And X%. reserved or, default them look, we X% leftover, we keep and go, being I we and that ends them history, I I back wrote our

it? So, I XX% you are to we X% take number. That's that we that better, right? are that X% and of of And you and go think X%, collect going

to you So, our the that's keep expect telling long-term, we why back long-term what guys But and it's this number we don't that defaults getting cities to we X%. done. have exceed keep unfortunate with

Rich Anderson

time. moratoriums Can over how will of will time of of in that period expectation particularly the you I'm range curious if the perhaps they know just just next city. getting kind can the the Okay. cadence moratoriums your reset, give But whatever of expire you which I by about expire? keep talk

Jordan Kaplan

don't have this. does I Nobody in any Well, experience.

very going that emergency do is because ordinance to are going to tough. there's many what's something I certainly, to the think think it need cities I Governor will have is too -- be just happen that L.A., modifies to

quite doing I break to to from react And suffering would they to trying to that that have a is some level complaints enough be frankly, the landlords. they're getting L.A. Now, long landlords. which happening. of getting they don't though, they're tremendous that what care, the from that they're know, because they number -- it's just

to it's do that thing what for heavily is And protecting I'll But happened they pay. focused both and Santa They trying extended or workable. place get cares put Constitution in two. right you the tenants, residential. sides, They They actually this to got you about tenant. They've retail. to think, care another say that they protecting Monica, the they're care place. month said They're Council larger They're the think to very side. that's guys, more said to I want I right And tenant about Beverly office to the the pay. then just think landlords. of to City got both. I small care unfortunate the Hills the thing. focused, something They

Rich Anderson

Okay. And they small them, much mentioned I you business, then whatnot? you of finally, degree it's and an of sort what your to mattered a and their sort idea commitment to they that business checks, personal like have how tenants, of get to have it guess. were Do you the do small able of stimulus some

Jordan Kaplan

saying that companies difference bankruptcy wrote. way almost, because a that I large Yes, That take current. close thought personally They're financial well, that option? look it. offices, think I And cetera, to really that of pay through, That's a as an or what of it. they staying And less we the and it, that get an the if profiling do see What's they I thought doesn't I captured cetera. think in stretch looking option. of think that at I've to come it to result made great like, they they at -- how smaller they're et drop They if checks tenants tenants to it around true. been likely it actually it? once was as recessions, look, decision, looking themselves, our with small financial of down. that see framework portfolio, being et option credit-worthy because and stimulus companies. an was we own I these pay. XX out in slows not as them past the a at while option, you not make reverse Stuart the have The on work are owe, their way they something we to big their them And I what's result and people is doing not personal of it stretch keep kind again, hard maybe bankruptcy it's our money, as the said time in deals them know at they they why less characterizing them that

they're in lives continuing to going. view all think with offices prospects they're everything New likely all old was to us, over They to their profitable. close. just one business about someone of and and go we our waiting not close, in decisions it. like more Maybe old this thing one for back going making country in and and for sitting I long-term York that's to confidence want have more open. That interested end. pay the they're their here, Leave why saying the that's what's lot a close, and that on That's of markets. They

Rich Anderson

much. Thanks very great. That's

Jordan Kaplan

right. All

Operator

next Lynch. is Bank Jamie our And question from with Feldman of America Merrill Please go ahead.

Jamie Feldman

Thank you. Great.

the you're able so Can approaching that were dip about multifamily leasing back the occupancy quarter started. you into when how how you terms of guys And get to that buildings was the a able it's or rents? in quickly? the you get factor impressive done up people after getting So, to big talk were

Jordan Kaplan

whether had and shock to going of of it blocks universities, go out came -- think school, it be it was to had was we rooms, it happened in don't prepared What of out whether of -- some -- bit so came they're little I just a discounting think a really right? the have People what it thought military, remarks. lot might of We rent. move-outs, whatever. I and be a universities,

fingers, one in just snap be all like or in with. Hawaii the have it went so L.A., of they And in you whether the stuff

amp the quarter, least impressive quickly. it's middle that I good We horrible. team. then tight that. It's the our the quarter we at good up the had was went quarter, And at happy and by of into just leasing again. product. we were very up went of really So, We to markets, end good. so They're back

impact did us it forward. shape overall revenue but us that not So, terribly, left good also in in of moving terms a bit,

Jamie Feldman

have you like feel you much. really rents to So, move didn't

of keep can You knocking kind rents forward.

Jordan Kaplan

we're dropped think don't were have before. really increasing that rents of the -- rents think I a information But we lot I rents. don't way we I

Jamie Feldman

where thing about net if moved side? this rents face what whole the on started, then And and mean, I say they since effective office all? rents would at have you moved

Jordan Kaplan

sit imagine Well, they and I in they're holding Hawaii have was going own is this tight market. double rental side. moved. some to L.A., because rents, see I like we're we -- But Hawaii recession not pandemic but entire it In relatively impact is plus here negative. that through doesn't going as our very this, imagine But this, So to to in a to hate going even a still now, not go can't of full be rates. can't I for saying seem not reflect it's that okay? the Hawaii, markets. right we're we

Jamie Feldman

a you concessions? Have change seen in

Jordan Kaplan

know long-term rates, of not the love up method style. to of yet. not our No. We're owners. No, don't concessions boost rate such rate. It's because kind your your we're We

that's that rates that I sign -- the not off. of So, I be don't first know would like would falling think

is off. of first the sign falling rates think just falling rates off I

Jamie Feldman

Okay, right. Thank you. all

Operator

with Our Citi. Please ahead. next question is from go Manny Korchman

Michael Bilerman

reserves. on collection come Bilerman wanted rent the just whole here back the and Michael and It's I with to to element the Manny. Jordan, this

property rate talked and you historically. types debt history I it's between would bad Because at operate about, office, uniform, that retail. So,- would percentage be not X% the historical, multi, you of for in that each What least imagine that about in?

then had I that's -- some others. first just you the can question, So,

Jordan Kaplan

Okay.

our basis you got because you debt when me X%. it's back to saying points. I be historically, not careful let say at if very XX, expense, XX typically like bad It's So, by start look

to I'm saying go what was back So, that's when XXXX, it recession, is, X%. XXXX, the XXXX, you

Michael Bilerman

Okay.

Jordan Kaplan

year I that and have the on better we've together that we've at because And don't number the the we the know gone keep ago, back putting and in the guess it. about, out an statistics default okay? public, but is to XXXX, you at going numbers This of getting just been is maybe rate, to unsatisfactory But that XXXX, better. time, better one know we've answer longer looked and reflected that's guys I you be and sectors. information. our saying not care do I don't been by But I'm I broken like times XXXX, this

Michael Bilerman

other today issue point in X% I retail given is of That any than is think the income mean, retail. pandemic's only your I total acting effect the any recession, different at other something. or part, very which the on is Right. other and like today

about one that basis would imagine, XXX aggregate. is obviously that talk as So, in you X%, right, points

you So, talked is XXX basis about that down, well-capitalized. if could you break points

talked about? basis be type, If that the break property XXX by as of well X% you between that would down then can and and X% reserve you helpful points that

Jordan Kaplan

the said, reserve pay Wait, that don't wasn't I income. -- you, them X% not was reserved, to because have of like a you receivable, okay? just It's then just don't word The write written do is, a if then has that flows It what is you off. off, it's through off, X% not receivable. Michael. written you did not becomes written the off, right write-off they X% tenant We -- whatever because can't reserved X%. was

X%, they as put start a did So, -- that didn't super pay. be-- owed write-off, obviously right? us, it with all pay X%, X% It's so they'll and I'm it but didn't which going joke to a we strong. So, would took try that revenue didn't receivable, because as pay, means they They're not pay. we

Michael Bilerman

pay Right. of much XXX office XXX, you're And that just of that that multifamily? XXX how points rent. didn't that retail and when Of basis versus was on the

Jordan Kaplan

Yes.

number. just me another going don't keep for have exact you let number. to I that sec, So, I'm going okay? give

X% right? I'll we take retail, the hospitality, title given call to we that live right the a that it think of have now, And probably half the was of say we said was theaters write-off. and than And we screening better which now, or that. that the and and we where more So, all I guys, venue should X%, did rooms

number have over for, So, reverse tell I those the you you that's the with I'm to half able of but X%, X% that remaining don't asked that guys.

Michael Bilerman

office-related Is half did multifamily. maybe Right. half directionally of was the these just the is that to predominantly that uses a have write-off like sounds where basis good quality tenants And you -- then and of The other and relative probably it XXX retail right? remaining it was XXX here. points you perspective probably of it in arguably,

Jordan Kaplan

a mixture I half I say little whatever, would other was wouldn't say group. the of retail, and half the I'd -- say the of office, rest

Michael Bilerman

than the multifamily in you a all trying and would a or type, days, quarter property say then. XX be when on out helpful to now peers out next would as for to all go in rather putting any the supplemental think in through just -- it gymnastics just terms release call. and request the report of then or between by to the And press collection updates rates similar in I Okay. put details I these and office

Jordan Kaplan

Thanks.

Michael Bilerman

And of some we examples others. can send you

Jordan Kaplan

in have somewhere I it, to it we're we to it's it not the we -- giving chose mean, Yes, like Okay. to and you. to put put not choose

where up. don't You it like ended

Michael Bilerman

Yes, on, -- retail have and the the just and I I collections the multi-property reserves all and out fact deferrals things office, lot just given those getting multifamily around having given that that a you of are I disclosure think you the putting think terms the lot fact items. numbers other and just of out going abatement. -- the in that and companies would a are of type say

on have are investors rather capture. be something going a and to analysts So, can numbers that able to fluid of than call copy not as it's hard just around where as a

Jordan Kaplan

all Okay, right.

Michael Bilerman

All right. you. Thank

Jordan Kaplan

All right. Thanks.

Operator

from with ahead. Next question Lee is Frank Please BMO. go

Frank Lee

Good morning, Jordan.

you discussions a this Center your get markets, the markets. ongoing your urban or beneficiary With term, think Sherman plays in a thoughts medium out? the Oaks to of longer all want maybe Warner value shift Just the could if do on from away potential be and

Jordan Kaplan

that to interesting an that's Well, way question. ask

of you're people like, are I reverse that. for us, of that to places guess, Westside question saying the is, the going move don't the I or downtown. So, think out

the or of the there beneficiaries the housing out more point the and that think I life. for moving cheaper in base the that and fact is to areas Valley, quality employment the of industries are

on being very going a like morning think is cities to into in want at work the the people when be look of when Westside and I don't work whether in working have people is commute that commute. think thing short look I people or this the that and whatever, most -- you over think and I at you the at or work the home at about

when So, coming able they're I don't and feel in. think safe there's them to anything from gating

out both having as demand so people and our for -- think the we But there, why more which of out are that into to I kind I sometimes drive to in rise offices there's more they along there's to very it's business fast. Center Ventura of they're we're mean, in terms those been I populations rapid very buildup, seeing markets you're crazy, seeing space absorption. and the apartment very there like Warner those tension Boulevard think such of is up, much positions Valley them drawn took and, and and building out it. in kind the frankly, a seeing make I there, and Westside and mean, be office -- successful you're because been here. just of they've home grow building

Boulevard. in a be certainly Ventura So, I West I whether COVID until or the out that's L.A. it seeing don't times along Center success shift more driving and it up as been see from Warner downtown that think we've

Frank Lee

trending we should parking a us has you so was parking in Okay. you expect income in or this level up far? Thank revenue that how on then quarter? update second been the July pick of see Did can you. similar And

Jordan Kaplan

Yes.

income people getting whatnot the you'd and retail track office expect been on and So, anything has to barely parking, done. takes -- for I must have but think the occupancy buildings parking in fact that

has parking running our think about been XX%. I

I But that, occupancy relates I takes. -- parking parking to occupancy. track revenue would level must expect beyond to that think track to

the get pickup occupancy, above bit parking. from increases, a then are extent on, in I occupancy think we but to So, we'll some

Frank Lee

you. Thank Okay, great.

Jordan Kaplan

Thanks.

Operator

Please Green ahead. The Street question next is with from go Advisors. Daniel Ismail

Daniel Ismail

you. Thank Great.

front, Culver curious, these on weren't the guys and On Segundo you're City. the on El into markets acquisitions expand your existing color looking few footprints? buying if can or or radar, just seen submarkets peers but new you Historically, and your of at a your we've I'm acquisition --

Jordan Kaplan

So, well, they are following. markets that we're

start with be let's south. all whether the out City that, So, way Culver and it to down everything particularly the

we're set on the love going you've of in or multi-tenant. like -- triple credit-leased for have that we two tenants of that single-tenant just the have And those. gets that's I seen buildings, or long-term not up eight bids and be those with and all bidders going we're multi-tenant. buying multi-tenant stuff. better think net to We're -- winning with one is just for of trading. and in markets more these kind that, one or what's things a until that one And buildings of and tenants left mature be large as trades we those the those be usually, years lease, been Then on whether buildings might sort seven, two lot on not --

a City aside, Absolutely. Now, putting that market? is Clover good

supply maybe be expect have on don't further restrictions you I south, a companies a there. are the mix job think of you housing. could the into Westside go in out that good as a to areas. there's great and good with similar very these did the It's great it's lot retail said their market. And They downtown south, a area, that here further we're got of used their

Daniel Ismail

investments, any would at these correct? presumably, all And multifamily. You're office be not looking

Jordan Kaplan

got a we've to apartment referring in and units. was mean, office. Playa I I they've well. done course, I has But, Yes, refer think of similar which residential quite of way, to added But Vista, thousands

supply not there, there's a for to is out harder a now apartment because lot idea say good it's this building. buy of So, us constraint to

our markets in cap Now, rates. very trade low general, at

And And of most on over the we're Hawaii of and building at, land is on we most And and aggressive construction, L.A. much and most in in you the are excess entitlements the see working Westside both so why ground-up being which on on rates. for cap obviously, building residential our we're that's the residential, Valley. have in shifted we're we've better platform, construction more apartments,

Daniel Ismail

out to choose the that the they behavior higher it telling side, is how your as their seeing over tenant next in changing? figure place few sense over tenants space will as tenant are needs you or shifting to be just stay quarters And tenant retention

Jordan Kaplan

that. answer. that to what's give answer, that you we had longer we've something lot moving at XX% the tenant retention, you fluctuated have larger with a information I have started that we've term or enough that over on a I like Well, tenant impact can which of But know maybe at if quarters, highly, retention, been time, the average you which if quarters give four to don't COVID end of to time you like XX%. is of tenant all like quarters a up a rows had say times, do tracked exactly out it, to

that XX% tenant process number. some zero there's of other to in that retention force that on to causes So, on kind want

Daniel Ismail

Thanks the color. for

Operator

Please the from question [Indiscernible] Mizuho. ahead. go come next will And with Venkat

Unidentified Analyst

is on for morning. Tayo. Venkat This Good

over quick few like and It quarter quarter. doubled looks a parking other income ones. multifamily Just

curious drove that. Just what

Peter Seymour

it's Yes, Peter.

sort two a overall, decline also in issues So, saw the you rental revenue. of property. There's with offsetting one associated

a property fire then and that you and recall run through at and we a see rent in You'll January, parking recoveries the lower had insurance other so income.

get So, multifamily it when almost to down net total out you revenue.

Unidentified Analyst

provide points color basis lease rate Valley you the in Okay. then Thanks. it on the And Could like that? about looks declined XXX some sequentially.

Peter Seymour

rate lease sequentially. The points declined in Valley XXX the basis

Jordan Kaplan

original be volume. -- guidance year our was, Like perspective, kind move-out as we the were QX we previously said was had year. thought in and going releasing pre-COVID had said, our flat such throughout but for remarks, from and We QX line our rough with we thought of my we Yes. expectations. of recovered to a that I quarters prepared retention the Retention was in kind

expected of all the with terminations were Of are that. to leasing haven't But do and we or course, had seen see, anything those expecting. volume new COVID move-outs we like in that none declines it we the markets. These to any natural known like see

Unidentified Analyst

you. Thank great. Okay,

Jordan Kaplan

Thanks.

Operator

next The go with Josh Please Scotiabank. from ahead. question Burr is

Josh Burr

to collectible rents. quarter that collected? same-store It deemed specifically, And uncollected still a makes sense there X% go is numbers but revenue. those are booked also NOI as were not back the in of GAAP mean, rents to are want or and but for straight-lined collected the adjustment, the since I in thanks. I that NOI, wasn't negative cash Hey, cash included those the

Peter Seymour

of we receivable and in the NOI, that's that comes everything stays the out still Well, NOI. write-off anything

Josh Burr

in that NOI So, is cash also?

Jordan Kaplan

Yes.

Peter Seymour

Yes. Correct.

Josh Burr

Okay.

Jordan Kaplan

went that You're not cash receivable NOI. that written-off a the about cash to talking goes into

Josh Burr

you. Thank Okay.

Jordan Kaplan

right. All

Operator

go Jamie And question Merrill from next of Lynch. Please Bank will come Feldman ahead. the America with

Jamie Feldman

just thoughts expected progress And some second-quarter of pace had get initial you compare the getting then do leases is at rents underwriting? think Street, about terms your that signed? want your Hi. the do to I conversions. in how Bishop I mean, what you on to the

Peter Seymour

you want answer to Do answer? to or want me

Kevin Crummy

you up that our leased. we're down, would been at Sure. in underwriting. Jamie, to have the Bishop like moving pleasant think mean, surprise remarks, would slowed XX COVID pace pandemic, a I we're say Kevin. that along a Street in hitting things whole middle its has we're mess. I in my And as of We're units. this XX% updated the over we

we're manner. product very So, very, in and positive very pleased with a the is we're responding delivering market the

Jordan Kaplan

of And that. launched just I'm back that's out XX we'd building. that There's I have next COVID, of this is gate. Jamie, going the XX thought during four least to the even units mean and first three at to Yes, floors, months, we've crazier. I already within getting no out the the way add

Josh Burr

Congratulations. Great. right. All

Jordan Kaplan

Thank you.

on So, of the All we're piece good. great of That's right. ending news. lights one

Operator

session. our Ladies and concludes question-and-answer gentlemen, this

the to closing Kaplan over turn remarks. conference to like for Jordan I'd Now, back any

Jordan Kaplan

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

Operator

you is for Thank Thank today's attending you, concluded. sir. conference presentation. now The

may You now disconnect.

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