DEI - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Douglas Emmett’s Quarterly Earnings Conference Call. Today’s call is being recorded. At this time all participants are in a listen-only mode. [Operator Instructions]. the Relations to for turn President McElhinney, now Investor of Douglas will conference Stuart over Vice I Emmett.

Stuart McElhinney

Thank you.

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

Relations find Section Earnings the of website. also Package our can Investor You our at

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

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

last seen Good morning, the everyone. remarkable weeks. shift a Los have the Thank us. in of we joining you over six for Angeles, prevalence COVID In

permitted California April among their to By XX workers rate to Newsom reporting April, offices, Counties. was first the any plans the XX. LA During to June Governor LA County. rate announced LA return and April reporting by reopen X, largest lowest the County fully quarter, early nation’s infection on County On the of times X, nonessential was other U.S. three infection County

Our quarter the pandemic. impact the still of results reflect first

XX.X%, including rent. our continued of rent, quarters, pandemic rent, residential with aggregate workout eviction XX% four totaled $XXX,XXX XX% reopening the affected XX% executed to that catalyst believe of so our tenants. minimal a during retail our of expire, collections than rent We by the will quarter once our collections Our the improve, will office during the But the which the agreements quarter, less for accompany more we in June. first rent retail the come big moratoriums for mostly forgiveness, collections in full and

feet. tenants are decisions. larger and In signed to we medium leasing quarter, Some square the make starting leases totaling first XXX,XXX

was enough Given our absorption. this leasing positive create seasonally larger to not expirations,

first of As feel we half we have said, lose I the subsides. pandemic the confident and year. expect optimistic during the as occupancy to

Our operations sensitive and accommodate our positioned markets tenant build to outs already work. COVID considering industries our constraints, and demand, return that are uniquely supply driving a

designed which in and the markets. for Our effective is re-occupancy, that leading most the are office largest is small operating platform, tenants our

nicely are development Our balance our and sheet repositioning activities and is strong. progressing

are we We of our digitized as now lower further pursuing quarter, our, they experience. even discussed leasing Last cost acquisitions completely refinancing on working debt emerge. may new opportunities that and

call over the quarter, have Kevin. will With the to sustainability. I progress This on we that, describe turn Kevin made will

Kevin Crummy

housing demand the of Thanks, conversion, residential remain in office morning, have development pleased our XXXX of the good leased the we validating At heart high Jordan. Honolulu. now with multifamily for Honolulu to quality our we And the progress XXX% projects. downtown very total Bishop, everyone. We of units delivered, two XXX rental

high XX of the tower units rise wait in construction first XXXX. high in mode. sellers schedule for with watch summer the markets a the potential at in Brentwood rise occupancy ocean Freeway still and We XX transactions XXX Property new to west XXX stunning remain topped-off finished, slow, pre-leasing Our stories. views begin in our years. has residential and our offer apartment the will more Once and than plan early units remained on after

We’re bring hopeful market. some will sales deferred recovery to planned the the that signs and reopening of

at to space systems results. had Energy continues Star in qualified Our for sustainable technology office than investment produce of certification. XX% our and more properties eligible outstanding our year-end, At

During advantage our lighting our These energy at of properties annual attendance year. will per savings X.X LED took tenant to XXXX, we accelerate of kilowatt-hours lower million generate efforts program. aggressively retrofit

call You our as recently Stuart. report can over and as website. our turn in environmental well I ESG social efforts our find will more on XXXX performance, information about published our now governance the to

Stuart McElhinney

Good feet, and renewal In leases XXX,XXX XXX,XXX of QX, leases square everyone. leases. we covering morning, feet signed XXX square feet XXX,XXX Kevin. new Thanks, including of office square

portfolio has Our this some recent square quarter, tenants, though increased medium activity of quarter square size average. last small during from average feet quarter we first X,XXX foot X,XXX the saw by square tenants, fourth few our led and below leases larger the is been quarters to our the at leasing still the X,XXX although feet signed in we from a it

the of lease half of lower during percentage recent office As activity, points basis high and XX.X%. first seasonally to year a the expirations XX leasing lease result our this declined

the straight X.X% Our negative for line. first quarter and were leasing negative during cash spreads X.X% for

has improvements that, our impact results. have by The With net leased call as at for for the effective competitive rents turn the our we QX Peter I’ll over from to recovered lowering remain XX.X%. to tenants costs XX% fully to multifamily willing our trade to rate office However, our communities mitigated leasing tenant rents. discuss

Peter Seymour

Thanks, Stuart. morning, Good everyone.

advocacy declined largely first impacts of the pandemic, the Compared Our $X.XX quarter down to results to continuing FFO results declined XX.X% was included from the FFO share. first which pandemic. reflected was we our a and gain by noted XXXX, quarter unaffected by reported the by our AFFO same-property million XX% $X.XX per to cash per from insurance spending. net offset that quarter, share last XX.X%. NOI When we $XX.X

below FFO and of revenues, primarily per well share, only collections expenses. that remains the improved share benchmark better Excluding for first quarter this group. $X.XX, our At $X.XX X.X% first by our from quarter lower our per of G&A

between second our reflects $X.XX. This to occupancy expect belief per We and will $X.XX guidance: that to to decline. Turning quarter continue be share FFO

We and economy local the in moratoriums parking collections expire. significant expect revenue opens improvements and once up

future does over the assume your acquisitions, or the guidance now of I impact will not the this questions. financings. take can to usual, As we operator, call so turn dispositions

Operator

[Operator Please instructions] comes go ahead. question Our Sakwa Evercore Steve with first ISI. from

Steve Sakwa

two Jordan Thanks. wants maybe be your visible tenants. or what's confidence can giving kind nature some and your know one after today it realize that QX? bit to Good to are may larger you occupancy You you about that what's I as But pipeline given pipeline? peers may just tenants, take talk morning. not little as your in dealing as quarters? of the think whoever know of just the of a of hopper on look you maybe out to know, with curious the smaller leasing, sort the bottom you you

Jordan Kaplan

the we full on how the speed was Stuart that then square feet, start that compared shortened system is our you like digitize and of if you or seeing quarter. people well, I trend what's coming things seeing gave was done gave be, were and smaller happy a XXX,XXX of numbers a Well, us much deals when what and info able strong pandemic these giving and same but confidence to size strong square that are face very don't generate until footage open look you the outs work which we kind was number little shifted waiting down, all it all about going rolling for whatever and – back now to of you're at is average in you and the shut things I we leasing, deal experience time horrific the just around typical tracked now because – we then that's getting see footage this leasing know absorption, already every so I of the larger, but case But up, work know but had headwinds very deals think was know the the push some the and to even the returning, of and we just work And amount feet is now go I range, square XXX the I in move still has mean the negative things flow bit of we're the to call, a we calling done, total it. up. of getting XXX,XXX forward, itself that we're you good and know done volume. reiterating of power against I really up know in getting you're footage style know deals rest hard I – that, to is our amount of the and open still may and of of the now impressive leasing as it name of pandemics, you you as really quits of deals you or terms that keep flow

giving say You those go, to say confidence. the direction’ I both what's all in I'd me expected, a – would as all – hoped, ‘okay, together, very expected, I those that's and like that's good as going mean as words of

Steve Sakwa

flow tenants that are or not you would occupancy? but that dollar that remind currently in the June I guess of How whether terms? that then what Can expectations tenants L.A. size of of are guess, office kind the retail current the start XX. of mentioned when to And bucket paying, orders sort know tenants of is the some large your dollar you in or Okay, not just P&L? executive I what openings, maybe the and is may into paying back you us, bucket and are be

Jordan Kaplan

range we're it's know of we've told that in Well, the and you we right, deals, said XX%. making you

quarter make same deals. each also but the So don't we pay, guys

$XX go not get still we've right, what's we off, is we much in be are the making that that $XX million but with growing just people want written million number the paying, paying weren't if to but deals. – been not out past, faster deals had and you who range running So making we in was there the that to of should everyone that

in that quarter. when stopped Actually catch you and depending us growing time depending that we've growing be So during but number. running the the are, month the in range, that stopped quarter, on you last number seems we it to on wherever

directional of of kind a So sign good trend that's on that. also all

Steve Sakwa

Jordan. Great! Thanks

Operator

next go comes The with Korchman ahead, from question Please sir. Citi. Manny

Manny Korchman

think calling platform it would them you into Hey! off, space. sort the to that decide the maybe and of on tenants, of they us volume? or Stuart, long from timing small becoming to remind space how sort digital your once want getting burn small or the of moratoriums help What's can you going do us sort take about tenants cash

Stuart McElhinney

we've average on that… Manny, Yeah seen what is

Jordan Kaplan

It's Michael.

Peter Seymour

Is that Michael?

Manny Korchman

No, it's Manny.

Peter Seymour

LOI with moved into us tenant average an about sign from for we average, the until months. On is on the time four our space they

quick So our it's folks very relative the peers are larger to that to. probably talking

Manny Korchman

there you then for been your up that the and on has that's can share space Right, portfolio? activity just sublease any within

Peter Seymour

I space tenant space, material is portfolio sublease mean tracking. that sublease [Inaudible] media seen seen in type generally space style haven't seen we've up materially. space, so generally those market a material it's uptick footprint, that larger concentrated haven't pretty a I reports in What in we're our the in the is impact. larger own we know we in the

Manny Korchman

medium… wrong, I news up specific had [Cross space for medium-sized some the of sort I that a sublease. Was in could spaces was tenants couple saying the Talk] put there but your be that of thought reports

Peter Seymour

tenants listing we've certainly think in for material I its I got overall. space don't their the sublease. think

Jordan Kaplan

leasing I – When space all there's a that's deal, doing. it think to see sublease competition obviously you don't of any I'm have. the what's a ton direct don't think sublease against of most a I is actually important created we're surprised that's much a space because by broker in compared get how listing there's say But and being to building I we our meaningful them, that Yeah. that

Manny Korchman

everyone. thanks Right,

Operator

from Frank next ahead. with BMO. The question Lee comes Please go

Frank Lee

decline sequential a the City what Hills? two Hi! submarkets quarter. and terms if the lease seeing in bit about you're Century Beverly everyone. Curious Thanks. Good talk Can in experienced morning, the of percentage during you largest those

Peter Seymour

I this you when know we you had – Yeah most little you don't our Frank, bit you look know across went some know down. that all went quarter, submarkets, a up

of occupancy the I trajectory think seen downward been pandemic. kind that's We've the kind in of throughout case. a

something different submarkets haven't acting know trend we be the noise any to you to worthy you – seen where through be read that from they submarkets. guys We or would between specifically There's out point a going are quarter-to-quarter. noticed to a that to

you to in overall we nothing I would You we're declines those specific some said, still that in expecting know seeing. QX, like we're point but submarkets

Frank Lee

space Are then any higher in rents average making a tenants allocation a floor even quarter. higher a employee? size bit you tenants come to Okay, the modestly footage that down being square taking the just there's more and where changes follow-up starting on or see lease now per have plan

Peter Seymour

I around the their moving and of look changes material contracting, with seems seen expansions for in but tenants always we've we consistent It like of haven't our taking quarter time know shifting, what space are every expanding kind expansions that outpacing we numbers. on kind you QX you our a I in pretty are a point uptick think in and would seen the attendance to more historically. at space, had Tenants long and contractions. tenants obviously

about portfolio our out, out think feet on quarters, lot XXX question and way second the over changing, space the and we needs thing already we've average tenants built the our about are think built person. a about plus Your space per this our already recent talked but is I to great

think that's X,XXX a of typical a window is room, you pretty couple It's couple If square conference everybody of distanced. a about workstations, it's have kitchen, offices. well you space feet, line a

to strong move-in, we how material been at we point the have our throughout we throughout. spec plan a really in us built. So those spec shift a had for and suites pace for make that ready-to- That's haven't pandemic, really a been suites those tremendous example, leasing

They I are to seen up, seen don't well it. we way haven't they've really pretty know that. you – shift know the tenants set we changing haven't So been doing we've think you that. had

Frank Lee

thank Okay, you.

Operator

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

Jamie Feldman

you. Thank Great!

types the than you. you data less pick maybe coming of a maybe towards types or more longer that So any strategy? sectors know leasing Just and for thought work-from-home pipeline as your starts is aggressive up, you either, more throughs telling or to what of tenants of you kind are term read aggressive back shifting know wondering

Peter Seymour

Yeah, you to based it and great here, the our chart know pie diverse we of industries supplemental the have demand demand. broad all in tenants and that pretty driving continues be

or seen that industries any haven't shifted We from dramatically. have sectors trends

Jordan Kaplan

– I guys in in only mean, than in We smaller right? seen trend been out pointed one guys markets. the it's earlier we've industry, not size, it's the is coming not and the larger a it's

Jamie Feldman

market the the guys pickup shifting underwriting in then a in? just you more are going looking like? And get can to I risk? guess. overall at you seeing anything I or investment are mean interested how willing house then market, feel And sales take you are of talk any about changes (NYSE:B) just to (NYSE:A) what's then I people or Okay, new the guess out Are gears to or

Jordan Kaplan

slow. still The fairly market is

overall that's appealing. hasn't more out start been a underwriting a things it's that abysmally that back But super the just market. people get I'm and our to but been there, is opened been on things everything lot as market to in Now We're have hasn't that there up, slow lot. markets, little there are people hopeful bit a going and bringing optimistic certainty

Jamie Feldman

from Is people competitors willing or there any look either change in the underwriting what they are in and rents or at are to tone terms occupancies? comfortable how brokers of

Jordan Kaplan

different think more we're than markets be very the And offering. does in that there I people more industries the think think we've that to transportation, get etc. term in constraints going are when just vertical, underwrite bullish that major L.A. a something a that so it's are on and buildings, and that competitive of I bigger other markets, I some got recovery long out here to our supply the offered, easier

aggressive. comes, So anticipating going to I'm pricing is be when fairly that it

Jamie Feldman

have you're submarkets do we to then that appetite not right new an into head in try a recovery? and as you now Okay,

Jordan Kaplan

always in markets We're we're looking that at and not everything our it. in, in markets tracking we're

our come and something development portfolio the we've comes underwrite that deploying if we and fair between when than to of be to But that we'll that that know then capital. the into out think to fold interesting continue and compelling them you really there things to it. we're branching more submarkets. you got And going know, in repositions think easier up the I a out the opportunities platform I amount definitely market, underwrite are necessarily other going,

Jamie Feldman

thank Okay, you.

Operator

comes Alexander Please question Sandler. next Piper ahead. with Goldfarb from The go

Alexander Goldfarb

from initial a out $X back month. being wanted you're GAAP Hey! Steve's ask Last accruing still paid and so not there. the you to Good guys quarter morning I you to side question, are go it that two I'm million perspective. to not going parter. and was standard sell Jordan, a said the rents

two, these still whether like confirm sort given is recall to not on one, out Newsom stick for the in scuttle get the and California and almost punt or want the or million of given indefinitely, just they So XX just is number; his New extended will what $X here to to extension to campaign, the it’s local it that moratoriums June apt York? in it extend did propensity

Jordan Kaplan

know by to think mean particular ingenuine I do. they but little it. they're were like going course it I I quite have actually face sure be to you August, Well, York June it, think expiring insight I but like this of mean not extended a – know I'm New right, into that will any doesn't what I had – to extend so May, they

as million, over In pressure then terms may $X into people go $X getting as you you paying It million Then we substantially. and really $X pretty in around to jumping I and was it gave if out, that. a month a down month and the mean a numbers started million, rent, stretched we something. count the million April, and think on are $XX if it and of watching remember, pandemic, the here not later now may actually mean the stopped we down putting you it's remember number, months XX – started you you I the I I I or month $X.X million, were deals calmed – between come people. we million was $X.X making

down a we You I shrinking and shrinking, coming be settling $X million as keep to people number, has $X go, it's as And ought to it's deals, mean, the start ‘Well that now that's – again below number you able just to better think people million it number month.’ well range. right? start as obviously, back, up. know shrinking keep going would that that paying and you We been make for in

Alexander Goldfarb

then – not you're and not Okay, you're cash booking just on only still confirming, the basis, accrued you rents? perspective, basically booking receive a correct? from FFO a what GAAP You're

Peter Seymour

Really, Peter. know it, you cash to we – we it's in – I comes all you basis, Everybody book but other that we book moved and that. don't cash mean it's know a the than it

Alexander Goldfarb

okay. Great,

upside numbers, So is point. that's this to the the

we in suite. market, basically lot normally you CapEx, markets here a soft a the what CapEx are on decline. sort leasing you concessions or other your do in you because Is is, had it see of one-for-one, pre-built leasing question second know of soft The but is rise,

CapEx. So there's tenants know it's and therefore leasing or from to to going you're you that effectively increase a your be you see pressure of have do to going therefore percentage

Jordan Kaplan

– effective if not the than to gone causing that situation, down CapEx I rents would question that meaningfully for here. It's it. be down would rents of just improving the say bad be down what the our better the leasing now, CapEx and and are math you're leasing has by add

of So you you the And are face leasing that effectives as rents, see in right impacting rents, plus rent shrunk market so rate declining think the our and rate impact in everybody face our the then starts occupancy that like and losing actually or the face starts CapEx rents, than and the now, impacted right, reductions rents. has better leasing just net CapEx. the just

than net downs. And you roll saying looking bad.’ when you they give looks down, look that looking you saying it just better effectives actually look of when Now, at start like ‘well, know you, not some whatnot, go not stats I'm so but you I'm not and things are roll at the we at down

Alexander Goldfarb

basically rise absent you suddenly don't rents So expect concessions to Jordan, rising.

sort You in two view lockstep. as the moving of

to pressure rents You don't where you're CapEx think there's before and rise. going going be to to competition that for the increase have tenants

Jordan Kaplan

so you Okay, to narrowly and have commissions tracking and know you been so just you've what's be happening. Tis, accurate, been

we You and went know – digitized we have platform. our a you know

what have much of market not We maybe you when certain to to you per the that, driven. side – our percent is, foot you say that saying TI down. and coming I'm are some go When TI’s as over all of

is just it. right out are through ton I know happen. it moving you the of through and is, carpet, and that guy we get spending space so a paint, want thing. us to they space size to that one takes square one feet, takes CapEx down? the want the we're You not of to something; roll built more Blackstone even time Now, reason coming if high, back generally all when think tenants rolled buying way have portfolio works we've mean and and that the for standardized, that's a walls to why and as it's so millions that time the does that And long

when a in as you're the is tenant, the and come mostly net not demands small going, the ago. because CapEx smaller pledged When very less about doing that with renew of you large big full is, tenants are tenants, I on there's do Another of quarters to guys all they out net just associated CapEx of know and tenants. with effective know much couple and big multi-floor effective demanding carrying told with and the we that's you thing tenants, right. you And and is redoing a saying, good we reality, renewals on deals last thing tenants, everything and very want that's small keep it we're the as

to go to our the ways extremely those the down. someone that during we're return to wants seeing and all that for out So in just are fact we be TI’s happen reasons friendly built just user work, probably that pandemic already to

Alexander Goldfarb

thank you. Okay,

Jordan Kaplan

Alright.

Operator

go next Rich with Please ahead. Anderson comes question Our SMBC. from

Rich Anderson

morning Thanks. Good there. out

Jordan Kaplan

Hi there!

Rich Anderson

what means, you and is So I deferring is, anyone and coming can talk are period, just you or deals you short book-end kind what about back of period little maybe a that by a rent bit year, saying, it or making ‘Look, don't time at for mean a we'll a Like of to early that depressed us something level.’ or do sign the keep until right anywhere at five renew rent you Is to next or happening we that of that is way but and four could not early. years any for color it? we'll

Jordan Kaplan

Most extending bunk of lot I but being what what due a deals. with ends. I'm when most what's spreading out I'm as me, combination hearing what there's XX there's out, on most to hearing believe the the now head I'm is stretching owed what's moratorium extensions, That's of it opposed is mean hearing. leases of like and and flavors,

Rich Anderson

you to capital and redevelopment business, this all prior had Okay, know mentioned this market. about in outlaying a as you nice little

on returns XX% dollars. like something doing we're incremental know You

the there said you're What's think you last back that you pipeline that about quarter have know talking you ramping business up? incremental ramp to and I business up. started

Jordan Kaplan

guess returned quarter. We paper two more Yes, in physically than we more – I on returned the last actually quarters returned doing ago. we

have pipeline. the we now projects in four So back

Rich Anderson

kind of of in return? it similar incremental is what And – terms

Jordan Kaplan

don't external the and shoes we're pandemic such returning all that. re-skirting with kinds at whatnot, the and the when program unfortunately, it look to line. are was the Yeah, know ready optimistic if so yeah. starts building, we and out like we to hard how stuff were looked One, to did, against XXXX; be harder changed, prepare racing. at retrospect to know, on did at We It's successful market on, putting the right. the you we yeah. like and there's you all you of by to rents how do coming to gun rents, And spectacular, way there's going during and and want We things noise of like like projects leasing the fortunate off changed, a in fire where numbers going fires a the to spectacular, whatever, all be want last everyone panned our but of

too recover we said, forward it, we and them. the way projects – just we're and in to a we successful put was believe so And at we're strong is in and this going just so and market we're back doing so

Rich Anderson

Thanks. awesome! Okay,

Operator

ahead. The comes go Craig Mailman with from next question KeyBanc. Please

Craig Mailman

Hey term looks like this opportunities? and plus and makes everyone! where sense maybe touch price? to costs rid to. look there the from the It what's do million. would you the of on about some you here to associated what expirations $XXX getting you swaps or That you Could have guys guys pricing – with most refinancing And probably think would get Is those, guys term you interesting at point a perspective? any

Jordan Kaplan

It’s correct. great First of you're course, at of to all, time a look refinancing.

We are looking and fully working on it.

been well, we of goal. was it, goal it have a a have it – thought I in but We and ours have I and – I Kevin, think it might had I one said

at XXX, opportunity to to just we an I right three, our and something looking have come like like do now. are It’s that like number debt down average that. refinancing XXX, think hair a We under I'd cost of that. see

some; naming than that. maybe more there's You're

typical know us very over the working swap know year we seven five debt. work have for loan, aggressively all and A on why and We and loan are team super – flexible go a there I the Michele years program. is off we And that. that Aronson don't you would people

Craig Mailman

you trigger? What the kind you be if pull of would anticipated do guys timing think

Jordan Kaplan

you'll and actual stats the and wait to then an announce able is do of to like I'd be deal. have What

So be. to to on the going but I needs we I'm because wait going – after announcement, are my that, aware don't just for of want to settle like what

mean, and so down, I play I I improvement squawking you of be how we're thought if obviously as it of – can certainly can much how the But know about X%, we of get see then out let five see with wouldn't year advantage where you was then and that have know can of could see know can fast move spreads swap debt and and you you out. stay cost course at take we what – our going refinancing to know we So improve program we then you I a so… much rates is O’Hern netted certainly and how those look that. to at combine do

Craig Mailman

and one one. That's then just helpful, other

Brentwood knew L.A. 'XX. rents from perspective? in feel good in What's and spot to guys development in for still happened resi product a do coming that you're on of You type an like you underwriting is

Jordan Kaplan

the I a you of all time. I Yeah, and know fact say this matter – know

With but the you all rents; are, office about don't rents it's leasing you know do portfolio where worry people think where about occupancy. go,

follow You push can and get occupancy rents. we then we know to rents occupancy got and up

So as would now above call at watched or which the rents us apartment and lease we're occupied you fully seeing certainly now you portfolio, up we're move. what

So seeing that's back up great. again, moving start rents we're

been stunning and pandemic. of that's – product called been on thing more have that in with we you're Brentwood whatever, still any is market the don't going or not units the the in leasing would we're right, had narrowly now, in that XXX right not that's units that If higher and we XXX really have reason that question, asking to end – you almost the and the stats during that that believe the putting pandemic, to what's be successful and we Honolulu some we've now, been with more on course, been successful, that did, good under construction the equivalently that's going in right we've know we you hard And or know feedback and than the leased or happening so of into very XXX has pandemic. expected giving fact the project with we

Craig Mailman

you. Thank helpful. that's Great,

Jordan Kaplan

Alright.

Operator

with The go Baird. next Rodgers Dave question Please comes ahead. from

Dave Rodgers

with flight comment, submarkets, you We you're hear Curious in but of bit movement CapEx those of leasing the bucket for your redevelopment there. space. outside tenants just I things, terms the movement, versus kind the tenants better of was it Valley kind within any better Westside within flight better if and seeing in of portfolio types much quality. curious to for the a guess existing are Yeah, of within good across little the asking handling, to out addressed morning pretty this quality. terms back Jordan, country of quality I as looking maybe come

Jordan Kaplan

Well, okay.

we What when our So look quality move acquisitions we – I look do it and quartile the looking top go seeing keep go, it we in to sure buildings, and type want to we that's quartile, in think to So you that now, it bottom pandemic. quartile?’ top and you've we at the before it paid get been for okay? for ‘How portfolio, to the to can for buy quartile. we into existing when top we the us the which doing something recycling at paid we we it our of look being we the see bottom So we aggressive quartile, of and at do were put

up the about projects. prove restarting and/or goal, what exists I want pandemic. what goal above or it's we're top can and But and to we top, direct the and someone run our look of quality and in be it's in today, on buying we own to and I and in through still that top, that's the repositioning, treadmill, the top the of capital we think indicating, mean were has and do as whether for markets ability so new of Now own, XXX% in table, whatever definitely committing puts own. that that why just our completely hear the quartile what that we obviously way in we're we the terms of you that our hard the shaken probably pandemic us to and quartile you're and before stats more at go to to at that's able you a

Dave Rodgers

off Okay, And just in and Peter, for have the during debt Do like the of terms bad you a lot mentioned a you straight Peter maybe the have that. quarter. then write workouts a quick for thanks question following-up. for the relative in cash rent Honolulu for you line the follow-up specifically and Kevin; for bad debt to pro recorded? the rents forma? conversion just maybe And then that quarter

Peter Seymour

for so Yes, – Peter. it's

not written tenants every this quarter. new paying. haven't had have and For quarter off, we paying still But who tenants the tenants the meaningful most on part been the not list come few getting a the are

Kevin Crummy

And and would – It's demand. very high we're pro product. quality, we're rents, it's a middle so then high leased it's very, in regarding pandemic which really the the you have of who in unique know XXX% Honolulu nailing now, thought forma,

very that we're how is project So pleased with progressing.

Dave Rodgers

Great! Thank you all.

Operator

with question America. next comes from Feldman Bank of The Jamie

Jamie Feldman

had quick follow-up. just a Thanks. I

four you think I have renewal this expiring UCLA yet? leases year. on guys Do visibility You have

Peter Seymour

Yeah, you're right. just leases. to right, four they're business think you we're there's it's see one the so departments, different play how decision, lease commenting There's totally it's out. you're not and those big different decision XX,XXX how feet Jamie in not we'll all and going of I out. and work individual They tenants not the are one makers on But on leases and know

Jamie Feldman

at this been but Okay, nothing’s renewed point?

Peter Seymour

If renewed expiring was be wouldn't it this it year.

the So it changed stats. would in have no,

Jamie Feldman

thank alright Okay, you.

Peter Seymour

Thanks.

Operator

turn session. over our question-and-answer would concludes any for I back to closing Kaplan like remarks. Jordan conference to the This

Jordan Kaplan

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

Douglas Emmett (DEI) 10 May 212021 Q1 Earnings call transcript