Douglas Emmett (DEI) 8 May 222022 Q1 Earnings call transcript

Company Profile

Participants

Stuart McElhinney	VP, IR
Jordan Kaplan	President, CEO & Director
Kevin Crummy	CIO
Kenneth Panzer	COO & Director
Peter Seymour	CFO
James Feldman	Bank of America Merrill Lynch
John Kim	BMO Capital Markets
Emmanuel Korchman	Citigroup
William Crow	Raymond James & Associates
Connor Mitchell	Piper Sandler & Co.
Richard Anderson	SMBC
Stephen Sakwa	Evercore ISI
Daniel Ismail	Green Street Advisors
David Rodgers	Robert W. Baird & Co.
Blaine Heck	Wells Fargo Securities

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. [Operator Instructions]. I will now turn the conference over to Stuart McElhinney, Vice President of Investor Relations for Douglas Emmett.

Stuart McElhinney

you. Thank

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

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

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

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

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

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

more filings, turn website. refer Thank some over detailed of our I potential [Operator For be of Jordan. Investor to section call please the now will can in which you. risks, description Relations a SEC the Instructions]. our to found

Jordan Kaplan

to off joining a morning, XXXX XX%. over Thank that pleased good was is over ago, year Good to AFFO everyone. start. report I'm us. is up FFO for you Compared up a and to XX%

high XXX,XXX the first from typically considering than tenants. positive absorption leased more almost see We We quarter, continue feet third roll was feet to year. quarter and quarter, during very each see consecutive especially strong leasing. demand I including from larger to base increasing XXX,XXX our affluent of for the small our interest pleased tenant last new square square

Ocean the we Santa meaningfully quarter Coast end, Avenue on with one and ocean assets the best-located leasing improved. of West every our from unit. acquired spreads addition, prestigious most in panoramic views In multifamily Monica, After XXXX

rates rising present and us opportunities. inflation both challenges forward, and will interest Looking with

the of take turn I and opportunities. for to will remain the advantage are ready the challenges prepared call With We Kevin. to over that,

Kevin Crummy

good and Jordan, Thanks, morning, everyone.

acquired we is Ocean price in apartment XX% $XXX X,XXX Santa $X.XX million overlooking As XXXX. a interest average rate property swap. Jordan The foot. with venture per square new property purchase leased the million, that joint we nonrecourse and loan we we is an at per joint feet. which with units, iconic square XXXX bears size of Avenue, and that The secured, currently unit April April is X.X% term works million out said, by XX, beach obtained plus manage includes XXX The or April made loan in an on a at X.XX%, SOFR venture unit an purchase interest-only XX% The interest. Monica. $X,XXX $XXX own XXXX interest which which in matures The through fixed to

Turning to development.

rents interest We the to and the in and see Honolulu our continue XXXX downtown tenant formas Brentwood. pro units to above Landmark Angeles along almost completed, portfolio. these our at When in X,XXX Ocean, add XXXX projects both strong Bishop Los

that properties the are upgrade significant I which on Avenue, our every acquired Ocean repositioning project, rents. recently As as major to continuing also a be well unit XXXX quarter, areas. includes of will number substantially should last working we on mentioned boost as renovation a At we common

transactions powder that to hopeful We will relationships. I the have XXXX dry remain JV market. plenty strong Stuart? of and more bring

Stuart McElhinney

renewal square feet quarter. we Leasing first square of office everyone. Thanks, during morning, demand XXX,XXX XXX,XXX new square signed feet, and strong including covering almost feet was In XXX,XXX Good XXX leases of the leases, Kevin. QX, leases.

lease absorption, rate As with increasing to our achieved third XX.X%. Jordan quarter consecutive positive we our mentioned, office of

for cash. for spreads remain cycle increased all-time quarter X.X% improved at choppy. straight our that negative and focused report rent remain the recovering spreads leasing I'm spread occupied high. to to We X.X%, X.X% an expect on to in positive leased Our this this to line occupancy happy point and

at full rents over our rise I'll discuss remains and results. Peter portfolio to to multifamily that, XX.X% the continue strong leased, Our turn to call clip. at With a

Peter Seymour

morning, Stuart. Thanks, everyone. Good

increased the revenue to increased to increased our AFFO cash first FFO increased Turning quarter $XX.X by to expenses, Compared offset both of results. Same to XXXX, partly by by office XX.X%. by XX.X% mostly and share, per XX.X% and $X.XX revenues XX.X%. million. by higher property NOI residential driven increases,

to revenues, benchmark remains of group. G&A, at Our very relative our only X.X% low

guidance. to Turning

our reflects We XXXX assumptions. are to higher acquisition, for be $X.XX per increase rate partially our from recent offset by $X.XX by raising an which FFO between interest $X.XX share, guidance and

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

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

Operator

[Operator Instructions].

America. from first today Our from question comes Feldman Bank Jamie of

James Feldman

want back go I first I just guess to to your comment.

larger from your maintain to more strong the you the think thousand year? leasing did in from said going talk expirations half quarter? XXX-plus small you You you base the especially this leases the looks tenants. and into the And moderate tenant how volume, demand can about you pipeline increasing sign Do Can start interest today? of affluent back given

Stuart McElhinney

which small strong seeing leases, XXX like for from are number Jamie, I yes, a people was, larger small I office think tenants, we're tenants for which tenants, good for a leasing. from signed it most mean us. demand like is I but for quarter us, medium-sized And real larger good us. said, We

quarter, good still really a healthy. So remains the pipeline and

about happy we're So that.

James Feldman

the Are on the also, what signing who I that you a mean, us anything you have leases been then pipeline is while, than especially maybe like the time say would sidelines last larger side? there look there actually sectors? is on for -- tenants And about Are this quarter? does today now? there different tell can

Stuart McElhinney

be of pie the that We for strengths think I demand, portfolio base the we've in across we industries have. here, to of And board the true. We're to shows demand the typically changes that from have of we had. kind our that continues tenant all the guys nice Yes, is seen of, is our kind all you industries supplemental real kind that we diverse those of any haven't one still material put and drivers those and groups. that chart getting

X I of business point call shift no in of here, leases. to. leases. there We're signed a We're don't several So a day, individual would X that we lot out kind notable really. slow day doing business a and we or office Every transactions,

be we're demand. good So case, that continues to seeing the and broad-based

James Feldman

similar it as ago, put the say you next pipeline as And good was -- like numbers months quarter? is the pipeline could easily today up X is still you

Stuart McElhinney

going QX for pipeline in early not quarter, I'm mean, make to the remains I yes. prediction a Yes. healthy, or the but

Operator

next from Our question Capital Markets. BMO Kim from comes John

John Kim

any Is acquisition? you could on Any you other it characteristics joint characteristics on one-off your if can multifamily? pursuing I this new the a acquisitions? partner about fund big venture How was wondering Or with? be? that share apartment you're are

Kevin Crummy

in and asset our but And larger rightsizing out and we we're buy over the plan very John, haven't it's amount it for it's joint aggressive that can properties class Kevin. The certainly when anything that we units, set partners it. a have of where ventures. we get formal, we've all up an and certain multifamily, some existing go to that of a sovereign other have partner got

Jordan Kaplan

to then a of feed a equity up I more If have deals, available. to problem the having there's we fund problem having the deals. any the access don't set do money don't think of an with I a deals. your the It's Jordan. deals. additional obligation question to It's problem it not we -- it's do think to finding

calls make -- easy when a then So have when we they up, to and come partner. we it's

John Kim

is So I just portfolio. higher-price-point more was typical a your asset wondering, luxury in this than

to higher-end were So targeting I if was market. wondering just you the run

Jordan Kaplan

We are. definitely definitely are. We

for way we office the something portfolio, are own that portfolio. both to the end. end, at at that us. top end, was we're residential, and here coast a moves across this and targeting along other the fantastic all we've the the our stuff the We So built the just top office highest and in on, that have -- most high trying doing we made premium have All is been residential and we're work the fit

John Kim

the the that that is would on Will on renovations asset assets, you can that? the as turnover of doing vacate? the imagine low. I timeline mentioned pretty Because be units You describe

Jordan Kaplan

a started, where little owners this the asset, we the back The money when and lower turnover in we're is but unit previous that program that's just it to a then a we it. get spend continuing lease upgrade that unrenovated

Operator

Citi. from next question Our Korchman Manny from comes

Emmanuel Korchman

And the about the that the on question by following much is money certainly just line the program we incremental about put on you how time into capital? intend program. renovation should to do of that Jordan, asset think yield done? How

Jordan Kaplan

to the one past, any in it the as of lobby buildings. the to the over are project. reduce the as big a in we're That's I -- of will experience -- dollars in something -- bought and range. million told $XX isn't make on I also I rival There's just it difference. XX% deals you're put taking said that I've putting And deal Most these -- less small we'll think a this within new than suspect be that if doing will capital work most a the to -- be we different. I yielding to

Emmanuel Korchman

owned properties be goal, a the the higher resi public more market commodity on the sort mean, and stuff. sort some the run appreciate rate I to more your while that's of the this you've JVs, point and I the of wholly a to on be why higher not one take investors owned sort of high then, And exposure for if of the moving to exposure JV end the have end on of market? and

Jordan Kaplan

that us the We JV stuff I tell investors, to does up along those you'd don't is new commodity, we're lined put buying. you're will lot with also right like but have that you our with projects a have and

It's the in a phone put joint So It's I'm going something, them. much really something. we're same easy much That's when where call. easier venture price. agreement with you together, need all selling harder buying at to a we're an

here's the outside We also have to because things "but it It's which going me people we come put harder back obviously they buy the to they're want in," have documents they deal And value to these this," other to not those. trusting I'm to that, then seller. to of a have do, so done to I'm do to which have to that, together. put just "Okay, to value a we're valuing say going part what going

Emmanuel Korchman

but rate have I And this, purchase? this about have the cap missed you might spoken on valuation

Jordan Kaplan

in mean, the Xs. low with but know rates. thing I I I'm we're think the past, in in will stabilize that cap the you this mid-Xs, love somewhere not in, from But going

Emmanuel Korchman

that widened has quick one spread space the you know, me, for -- past, a then between bit. being just the Or talked about excuse point I And little sort occupied the anything there attributed Stuart, on to Okay. side. when question and Is space lighter just of inflection in to come does Stuart. for where that leased flips? tour traffic, on that? the note

Stuart McElhinney

I spread, think you're Manny? to lease the about occupied talking

Emmanuel Korchman

Yes. Right.

Stuart McElhinney

Yes.

gap kind So it's mentioned. It's that of which yes, out. semi, I we -- have seen all

honestly, bit. to what see it hope stays quarters of a times stretched doing that build that slowdown, pandemic we these we're is our continue So a elevated. moderate. ton out over little Really, seen future likely and that But we've during I the it leasing probably

taken in. us folks moved to get it's little So longer a

stay So we're than that's to caused little that used wider to. a gap

Operator

from question ISI. Steve from Evercore Sakwa next comes Our

Stephen Sakwa

supplement, absorption I bit first little Jordan, XXX,XXX trend. over only about back XXX,XXX a square leasing, surprised was I if And renewal wanted that in square it guess, just deals, had your more the feet the good in the And strength kind feet showed you I expiring understand quarter the given guess of I look had you fourth to little I of and a very activity. new quarter. to

and almost And double did add trade activity, XX absorption. you of lease up the So only you the went basis points. amount

what basis this trying missing than you So figure pace out or you kind math at the do I what XX see to points I'm pace if a absorption actually in quarter? just continue to am more need And of here.

Jordan Kaplan

huge we a don't of quarter, much I'll what first exactly too quarter, know the then of you're and half know year numbers first good the I you Well, very in what mild year. this, that second a pretty knew I a don't -- But give is more because tell second number the don't where have I tough. want had we is know we we and we have role half the pulling. role to

are you do positive fantastic leasing, thinking told happier quarter So with we're be to you, to going of And were you that going leasing I to if to looks it. positive than still the pipeline first we're Stuart it that a during have would get a this I news. said to me that was about we definitely was quarter. seeing way, mean, as get is all need to a which I lot

was So a had the lot basis there. fact amount -- that a the matter If a -- been that and going did the quarter actually XX positive lot other points. was on you XXX,XXX consider more a during that's there leases have I places, then look, I We have as positive. of right? quarter. leasing was that done feet, tough would pulling that we of mean we it a from role

right there that, X backfill good this in row, market because up? thing sign all It's seen sure, now But great quarter. now. done that's the probably quarter, for it's take a by now and that that been and saw to really not quarters looking the it, a And very X a thing out but in row. quarters this main that we've fill did we And people a for crew X the a So lively also I've that are for. like, only job was fantastic

economy So where very headed that feeling terms and as refilling the I as about, the on the portfolio I'm the took good think doing long up is directionally, keeps recovery pandemic. holds losses the we we're of job and rest going, which X, during the of everything in

Stephen Sakwa

very the of more I in detail. go can to the in we guess, it time? against kind the that success you Is there some formas. Well, were just the having since toured of through sort rents us and XX we follow offline pro volume of your March, Page with when anything guess, achieving Landmark, as asset, supplemental the early Okay. late relates I and up on certainly the were on the share pricing you you can

Jordan Kaplan

we getting we'll I we'll we're it moving substantially it going with the we mean, X do saying better. that rates make X pleased years, when having little still mean, make we're are going the up but success. really we'll that I'm there. sure in, -- all didn't construction that yes, on years project, from changing we're that signs Well, take really within are a to Yes. to lease people leasing not that's and it's I are And maybe it just we I'm above in X expected. years, and for what sure now. start to

Operator

comes from from Mitchell Our next Connor question Piper Sandler.

Connor Mitchell

of make Brentwood the the given outperformance to it projects? of want So and round and Bishop, you success accelerate does next

Jordan Kaplan

at probably last started -- council for next various and office here all round people both -- We the sure deceleration offices in respond and we're again the just yet, city's municipalities things. and having Honolulu seeing of the back L.A. to are totally with the just meetings phase. projects. their in And accelerate of in want even even members it, to the meaningfully to in into COVID been of Well, periods I'm Unfortunately, not always a rest

steer So we're not on We island. our can't own.

already we it getting own. back some things they're we just the and right. takes for low-hanging been these even of done but of tremendously it's all that I and that pipeline we've have through have getting construction permits I system time prices cities, though But agreements along, By All of residential property on as -- now. saying take fruit think particularly just a think up, construction with very getting you're all gone with and costs, we and good inflation have course, -- just

been love quicker. more successful, super Of do to and course, has we'd this

Operator

from Heck next question comes Fargo. Wells Blaine Our from

Blaine Heck

to quoted partner? on just Xs, rate, be paid NOI? the on will in be cap include just the is initial that does XXXX cap that you your rate low guys Jordan, you management the that clear Or on by fees

Jordan Kaplan

cap NOI price. question. cap that's of the includes Well, your rate if divided property is by purchase it's I a it -- mean, fees, the like management course, rate

and your the understand So don't expenses whatever going-in That's NOI billing, it Maybe allocated I question. to what you is. take divide I are of it. mean,

Unidentified Company Representative

for… thinks He fee management

Blaine Heck

I'm just asking whether it's...

Jordan Kaplan

like like it mean fee No, a an promoter -- that. or include You asset that? something doesn't or management right,

Blaine Heck

Okay.

faring an less how the -- the density? different west second you And companies talk markets? Okay. trends can or demand side? may urban in do markets just you question, in want to seeing how That's you incremental about see your I Valley utilization to environment Are helpful. that those in guess, And relative office seeing just Is location a any any any you you're then of the interesting return Valley? from during do to have less

Jordan Kaplan

Oaks lot Well, in stands. the a said it's of Sherman got it don't always that sort It's The of west area's well, amenities call. a strip side. -- if Boulevard. kind of finally, and housing that's It's and said follow on of nearby. that build Ventura got to know high I've of hard really there. pattern is kind on doing Encino It's I -- I -- It

probably in -- spent that's a stuff mean, with plus that for And basically, there, to big secret few -- through for right And back the Warner it's I the put know at think getting next deals new -- right We now then that a we to more or office, years are Center. ago, of I it we're supply be taking Center and practice it of one making shifts literally whether multiple markets companies don't now like strongest strong than years out ramps came Hawaii. I finally, guys way Hawaii Warner and seeing make the for hit of because at pandemic. space field Warner of deal, studio excuses was You happening kept all excuses one stopped our finally, Hawaii Center. great a having there's like XX to

We looking will building. down practice be the at they're that field

all office And think I and residential. project so probably that was cleans is going another that takes up. There's that convert to that that to

will clean up. that that So

So commitments studios Amazon use to that that people there's around as there's a of others area people, right very then and lot -- a lot some of a of robust I said, their there's -- them. hire lot are moving like for and stuff,

area. been piece in after just that it's another one So of news good

still been for area So way, we've been development saying in I'm And stunning. very it's optimistic. by that has the while And residential the a that going.

If you other are you're residential our a then amenities, of the centers you're -- studio just fact where our I be everywhere. this their people the being there And all little described, going like coaches players go you are, where additional is this like there retail will this our lot the there, built now seeing But see building people. retail, now is where being retail to events, seeing that facilities out out next larger some to users, built. saying, where are or is their

a to difference all that's So going huge us. for make

Operator

Anderson Our question SMBC. from next comes from Rich

Richard Anderson

observations So of And noise? it of but applications can what the just some we and cadence time relief sort have you area or latest that in behaviors latest as this to tenant last whether color all to rent on conversation, relates this closing have may be the curious L.A. give in are? the on not

Jordan Kaplan

while you Well, to ago that defaults our be less than quite X%. a said we to

even X%. we And still, less collect are I this already we'll more. think than at probably point,

us. money that's a good. a collect We're And owed smaller us be. used to that's is owed the number pretty feeling to I'm it to So down money of to majority to super much than going the

at say the are the said don't said in up it's been in I any vanishing deals -- show rest have I the that So way we're of now, case in or coming it's or meaningful I as I'll to as new but and think in into mean a numbers guys. been been, it's put whatever right the collections has showing -- coming you going fast. I it's

of a Douglas big I tenants. loss and -- X things. a impacts One for Emmett. three we lot we there sure retain we're things. recession Number I of pandemic, on one, recession, -- the and the loss don't into well, are talking -- rate, leasing, lot to this lease about big think occupancy, we've which obviously and was there which So been corner into I two this When call, -- those went we doing of mean, this we -- that turned think just on need that were

The we coming hit a been parking, very in comeback had second took was has back. strong the a which for We while.

back, kind money deals their and a now of But people numbers are and -- have lot not we'll of are of parking or but some And ones craziness. programs down I of told our rent. do some big Now reasonable back this, about long was using think would on way of making the the that the seeing ALS. to or but their to a didn't. government with reasonable people a as that we're last lot thing them -- deals to was timeframe. didn't, lots as with very rent pay That in have of capture not we're we make spaces. we're most full. a even down had fact left now. keeps something never the must-take paying -- kind parking that where the people And We're and to They're rest good on did, paying going, some economy they going And imagined the it's the you

in took, X the were right all sort of those So metrics traction. hits heading all the are back, we of

Richard Anderson

I rent $XX recall or -- $XX that don't million. I this -- completely What's the now? wrong, number owed have might was I million

Jordan Kaplan

We're like that. closer to half

or some... $XX think I million

Peter Seymour

in XXs. the It's

Richard Anderson

Okay.

you of And inflationary opportunities? maybe from we're to got It you buy of it. the environment you mean out pool you you of do what opportunity, prepared smaller, for is the you? means it, clarify buying the question, come mentioned that meaning terms kind relative that opportunities what wonder -- perhaps is of people stand Are just competition could interested for to in do what had the inflation an those such Or specifically, opportunities by in opportunities stuff? XXXX brings. that Second the I types you could money to that it?

Jordan Kaplan

classic from real a it's Two one asset, to things that estate leveraged early estate inflation, right? against But calm as you with rents things up it like end growth all fact value, tends up So The and that hedge because is up. from then inflation down rates. a the interest estate. is tends real like it's again, of substantial hit which in real are comes coming -- perfect higher with rest get for the

And tend so just inflationary longer that's the that very a mid- estate. one opportunity real happens, be environments term to to on good

now The becoming that building. might bring get an highlights my value for what lot debt in to to not have leverage, their the costing "Wow, just there building jeopardy get a is of there has second I of along going fact sudden, them again but buildings there's more opportunity cost have tired the And themselves, Maybe of up the little putting running cost losing they of all a the their they're of deal my leverage stuff debt. leverage of saying I'm with sale. just better it of kind me to the buildings, And we're run some opportunity maybe to the is very and hoping is People that properties need out the once to maximum available. for. and still been of out of it. with That's scooted Maybe cash this." more. low a

Richard Anderson

it is came why not? the tethered XXXX free was environment? or Or So that to maybe

Jordan Kaplan

basically XXXX. I the that -- well think was -- wasn't cause XXXX no, for

everybody it a fit XXXX, and was fit. we -- seller feel was right the made didn't to for it deal us, were think I very able It wasn't good negotiate the that happy. a

Operator

Rodgers from Baird. from Our comes next question Dave

David Rodgers

last and leasing least quarter, of of impact the the or way expect talk most think part the There the side? on of forward. guess second a it cash blend-and-extend last maybe questions, something more out a about you I transactions please. the you said kind that And you're just on collecting cash quoted? bit seems the question transactions of is you you where to way model that maybe with two delta go kind of of year. like revenues Can year those come the as reconcile to back that bigger in economics between of at trying those effect I in So little deferrals same-store this

Jordan Kaplan

is everybody the even main us almost reason if has money, people think more on side come I current. collecting owe we're cash Well, the

some weren't paying are us. now. with part So And we're us, own paying like people that they that is what us dealing the

that going that's So to you're asking? big a difference. make Is what

Peter Seymour

that month's pay rent basis. continuing a on to regular Meaning this paying they're and

owe the have this they amount us some then So Peter. that from they -- past is

balance And on so own we're mean, market amounts. outstanding at lease is come recognize working past new up rates. through its new with that you a and do stands I lease program. blend-and-extend, talking When were we the the we is them the with what a typically, payment And then

David Rodgers

that's past point, those guess It's the and from a rent really I last spread. quoting due what in kind And not that higher to really of Peter, kind reflecting you're collections of numbers. cash

Peter Seymour

That's the the lease, not in correct. spreads. program payment our We're quoting just

David Rodgers

questions. I both answered that Yes, think

Operator

Jamie from follow-up America. Bank a Feldman have of We from

James Feldman

You but it didn't answer. answered have hear or right maybe just may I misunderstood the

decline. cash kind up explain So they've to would this and spread on of X% were quarterly last your leasing minus I spiked move? this sequential of basis, low as been that how X% kind quarter quarter, mean, on a as minus they you

Peter Seymour

on are not decline. spreads quarterly a the increase Leasing on and sequential

James Feldman

X% last think minus saying, it cash. was quarter, I'm I No,

cash. minus was it quarter, This X%

Peter Seymour

Yes.

James Feldman

past you said... I the in think

Peter Seymour

Yes.

improving. they're Yes, improving. they're So

number that you quarter, really wouldn't recover, as things that is number Of too can jump course, tight what but hopefully turns tells that in grab around. -- any I that it again. number particular something, positive because But generally, rolls depending on number

during reflected asking, kept you'll I fact might what's has you straight think, people pandemic, and off, of rents, off when aren't said, the as rest X% fell but gave and happening -- a on line haven't I'm now think. best in it. numbers, the far with is But not we Jamie, sure up those that's a and what that to even the roll-up, this And is, what's fallen. cash, rents the the we with is more the could minus in proxy remember, and all as of rents huge And happened of for off they do we what what roll-down fell such They fact, amount. guess you rents? you

numbers big you're these very bumps because -- of remember, all in have doing leases our So them.

ending growth. say cash cash, when of So you starting X% that's X difference, to year

you're signed. you growth when your was from X that, Beyond got got you saying years lease of that still that

that's not." So back rents doesn't different. are a seeing are And I meaningfully rents we're -- thing "Hey, people coming good going to that. mean, tell and are it not you, that

it. seeing You're

Unidentified Company Representative

the straight-line the compared the positive anyway. the comparison you I you total of prior those don't to a We rent And spreads. lot lease. lease, have gives value see think free of

really it's measure you change of the a lease. the in So value good of pretty giving

James Feldman

I'm so, get just rents. the Yes, year last that the or extra your can Okay. Is occupancy pushing you talking to and start changed? thinking really about if we kept about, over well, messaging we can in portfolio,

Kenneth Panzer

no. No, Yes.

happy have rents. lease the just the to rent, lost need that in I'm rental we now want to up while thing one much ground losing thought aren't that as will that much it's thing to But the the through we might don't also That's I think not tough to portfolio. it's lease lose thing The say, portfolio. we period and job. over years, rate. I is just as And last on another X as push you that I we've ground think

James Feldman

Okay.

-- Maybe -- is was it the things definitely sounds it's a written to it is -- but not So like do it the for feel going better. quarter. better the forward, stone think trend takeaway

Stuart McElhinney

in Like Yes. quarter, it's be -- going around. the moves I to said this quarter. We'll on Jamie. choppy that's lot get opening, number that such quarter-to-quarter. we -- mix the my have one -- they're I have don't in of -- curve, signed this leases depends A a

just quarter. So to There's curve, forward. very not don't smooth -- leasing use this a it's don't improve, yes, but a We're the happy going sailing. as good

or every straight no good. Now, recovery happens -- I But a every hope this quarter is next recovery quarters line. just in the

James Feldman

or year your updates of known know in on And year, months we do larger you about terms next didn't just this ago? X Okay. of any then, move-outs some that expirations have

Peter Seymour

We have guys out. we steady mean, I of some always noteworthy. a larger our pretty have nothing No, role. rolling

that's So worthy. still nothing

Operator

comes James. Our from next from Raymond question Crow Bill

William Crow

That about one why Jordan, going do TIs? I first And commonality of reason -- last not my of Or but renew? why any you see of is you led more guess, me rents had. actually discussion that the talked because any really I reason or tenants don't lack rents into there the down, is, asking leaving questions two tenants

Jordan Kaplan

has it's pretty steady rate good. renewal Our been and pretty been

already was than it totally do fact, for has the new lost of year, weren't that reason last much. a lease tenants as The to higher the moving As around normal. matter the rate fact with

less. moving they So were

Now they're more. moving

new number. reason focused what's gotten XXX we're getting guys more we -- on I you Now I tenants. it have is a that XXX,XXX... why mean, quarter That's was such it, the -- said is spectacle

Unidentified Company Representative

Yes.

Jordan Kaplan

That's like XXX,XXX in a fantastic quarter. renew.

And economy, steady, on held back you're number, grow a us with the is the if very the what's work, renewal. new key to see in people all new if going going in say sign the also that that the what's leasing. up, number number going So new we've is okay, to good new you to on on good going our number back

Peter Seymour

when getting major market, no of something that. moving big they're the we're they're reasons we moving in growing there's are out. there's -- why move million a that. or out. of shrinking There's or or they're going They're obviously, spread like you out, list why survey It's same tenants out shift reasons. guys a of tenants moving And if business guess, Bill, our just reasons different still

William Crow

at side the Right. the helpful. look of And local you mentioned, just new then, and the No, economy. leasing you that's Jordan,

on where what whether relative we the are Where new we've or or momentum parking it's to are leasing we based are So XXXX, in back of rates you XX% XX% back, scale? revenue, back-to-office lost?

Jordan Kaplan

we've because a we've income, catching the done in of to a lot Well, new up business. stuff almost we're lot XXXX, done, of but

all we're what we good a to can't full mean to all giant but is around -- the -- to But tilt, of spectacular and XXX on -- to and is this -- up that I almost still look, fact And I sign the points, going saying next tenant -- looking going is that the long these a are at when we out, pointing numbers rest pale trajectory. keep really as difference. economy recovers, basis I news -- Rents keep mean, and But is company good number. other of every there that going we're make that is down activity. with it that fringes money. lot keep part is to we're sign -- will as I huge strong. numbers. economy, new still be ignore pretty some as whole it's every And the when you the So holds. and got the a that's

William Crow

political pushback? the today? you And feel about Or into better you're overall I not guess, environment, getting

Jordan Kaplan

not the Well, politics, problem environments not -- not that. of moment. the mean in like terms removing number stuff loving certainly, politically, one moratoriums that's improve and I the but rent I'm at I'm my

Operator

Our final Street. question comes from Daniel Ismail Green from

Daniel Ismail

acquisition back Maybe well that And the curious, share I'm a market, you're currently just to rent-controlled are is just if Monica. many how that so, figure? below Santa going able units to if in building?

Jordan Kaplan

up good a it some other that building in play not of a sure just is have as -- in what's as in of role I'm rent-controlled buildings. them. rent control number mean quickly. that I but rents that big it happened But very that A is moved building, building has

during of that off earlier were market done current far rents the deals So maybe pandemic where are are. or pretty the even

and roll, call cap. stabilized we'll that That's the pick up. those there's such between meaningful would what I going-in the as So why cap a spread

Daniel Ismail

Jordan, movements tangible then, have inflation office comments rate due side, just any in noticed I cap And interest of guys either curious, price on the and movements, rising appreciate rates. or terms it. you on the Got residential rates? I'm to

Jordan Kaplan

I I few transaction. in mean, that, there's is enough a don't this at best, way months phenomenon been think old. is the of

a you're enough think homes. there's transactions, that. single-family going to you're where sure I transactions cash to as -- slow show down of where lot not The there's I'm place the So seeing the homes, already world

market. in move very interest and that -- think around of pricing has slowed effectively home down trajectory single-family quickly transactions is I the the rates

Operator

a Evercore Steve from ISI. have from Sakwa follow-up We question

Stephen Sakwa

there mean, to and or tax $XX million. L.A. an I fund story the article Just homeless guess in housing is that I issues. on a potential And truly a I on just a was nothing reads on quick it's over article commercial. if would certain about that to go just be was mansion one. really Jordan, like wanted that's housing

Jordan Kaplan

tax. that's transfer a Yes, think I

strange little tax bit for it a So mansion calling a name a of it. is

all people of -- in the And that tax due think -- like tax. And I cities, taxes right various it's to now, might stuff to negative just a at thing. fight have proposed. these many don't just see and more of and things. be it we one that it to transfer on are kind how will it's a was It's this make look transfer

Stephen Sakwa

But of on not commercial. residential on not Okay. certainly that single-family, either just your on correct? type and Is

Jordan Kaplan

a me, you haven't just mansions, in heard just they To I article. way of just if was transfer just misleading, what even which it my is sent doesn't odd describe my To house right? so something it extremely tax. I industrial matter tax, the that. newspaper you article way described the -- anything so else. that's just it's was which that -- on knowledge, to though that The and a -- I It knowledge, is me, there it that being send the It's or saw transfer happened suspect

Operator

Jordan We to now remarks. have for no closing back hand I will further Kaplan questions.

Jordan Kaplan

joining Okay. speak quarter. for you Well, you will and again all to we in us, thank a

Operator

your call like now has thank participation. We'd concluded. you Today's for to

your You disconnect lines. now may

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