Douglas Emmett (DEI) 1 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Stuart McElhinney	executive
Jordan Kaplan	executive
Kevin Crummy	executive
Peter Seymour	executive
Michael Griffin	analyst
Alexander Goldfarb	analyst
Blaine Heck	analyst
John Kim	analyst
Upal Rana	analyst
Dylan Burzinski	analyst
Rich Anderson	analyst
Camille Bonnel	analyst
William Crow	analyst
Steve Sakwa	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and 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

Thank you.

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

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

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

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

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

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

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

Jordan Kaplan

thank Good morning you and us. joining for

office close quarter We leases activity office at square XXX executed a strong covering pace. Our the X continued during feet. million to third leasing

new It Third included leases as quarter. had of quite percentage new very quarter to square second a a activity compared feet, XX,XXX much higher tenants few all news. over also good

in we demand vaccinations jumps leasing ubiquitous our and Once experience weakened meaningful work became building tenant focused simply indicated absorption from and absorption. with have Nationally, negative narrative our home reopened, offices long-term Woodland As has X which quarter, Hills that Many primary utilization. the large commentators volume, is inconsistent we office of cause was that wholly in permanently office one last renewed and the expectations. saw but downsized, on challenges. faces

on utilization rates low public which impact. was that the office tenant that transportation. It the commute that had until short returned remaining likely times in our slowdown the we to by have We large X national saw reliance markets aided slowdown, impacted absorption. leasing average our raised has very with to control meaningful high our Even that challenges Fed inflation feel was levels and more a not

is many from new as recent suffering those overbuilding. construction gateway that markets of of result One challenges a overhang are

been Fortunately, constraints where new a markets, strong not in supply has construction. have problem our limited that

fact, office our have past the In over markets added XX only to years, X% inventory. total

capital The economy. is that in raising particular, third reaction impactful Fed cautious us tenants the and new intended of the an challenge, large understandable have has slow been which This investment. to for to most about is become likely cost the tenants,

in results with Fed's last for of our prepared cyclical. have impacted significantly fourth long-term are is our which a pain recession, the quarters markets. well clearly opportunity. health of and managing mix typically We this comes been a feel and Our Emmett and recent confident by factor, intervention Douglas the in experience through both This though is resilience

I will turn to Kevin. that, With over the call

Kevin Crummy

and Thanks, everyone. Jordan, morning, good

nicely. Our multifamily to X continue development progress recent projects

and leased. can apartments fast into are Our to XXX-unit in We've them. another now conversion in units the property have units convert been as At these before we Honolulu, completed XX% our of on Brentwood floor almost Landmark L.A. is as we year-end. leasing XX XXX XXX office-to-residential track convert

will remaining convert X tenants As out, few move the we office the floors. last

move the significant properties, come in and our May fire has acquisition XXXX. using but market, the out and Brentwood, installation at remain complex opportunities SOFR units loan XXX have was them X uneven is matures occupying to development majority slow, vacated in preparation life tenants secured in which safety next closed built the in in market to plus as mentioned were free This transaction the liquidity. cash right Tenants intervening The The to XXX-unit for flow. loan by period. bears $XXX the our call. Barrington ample have an are loan the of Plaza, August our until we quarter, with At X.XX% last that interest apartment remained we already upgraded million new of new we pace a systems. at expect ready The

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

Stuart McElhinney

everyone. morning, Good Kevin. Thanks,

new During XXX,XXX the feet consisting third feet XXX,XXX office square XXX,XXX leases. XXX of quarter, leases, covering square we renewal signed square feet, of and of leases

feet. to third to Reflecting leases, average growth rise, we into see new annual our office the noted, rent leases high XX,XXX over a record on Jordan more continues reaching are demand rent quarter. in built pleased our the As from office tenants fixed square in-place

office leases higher the as our per the group. on expire, our X.X%, were overall benchmark spreads of average REITs new leases Still, square of At cash $X.XX average other spreads. though by year, leasing during third cash these increased X.X%. of in pressure However, ending only costs even the put per down below remained an our rents well leasing foot value quarter

continue providing well properties the third XX% to residential for is emptied safety Barrington vacancy of perform being preparation with in major Plaza, upgrade. a quarter, even revenues, overall life which Our our at during increasing fire

our XX% at rent end the results. quarter Our with turn leased I'll roll-ups call over Peter healthy that, to markets. With to was across portfolio all discuss

Peter Seymour

office to as NOI primarily increased a of offset recoveries Good this of to X.X%, by of quarter XX% from X.X%, and and higher partly morning, higher Reviewing by revenue leasing tenant share, footage as vacating Plaza. quarter compared out portfolio, revenue higher decreased built same-property and the our cash FFO primarily million, our units a due by result by third by to primarily driven square higher per tenants more as decreased result on rate volume, XXXX, Stuart. floating to everyone. delivered Barrington multifamily portfolio, in our parking expense interest we our XX% AFFO revenues. new Thanks, increased results our $X.XX debt. $XX.X

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

same-property to the not guidance FFO growth, and for the our of gave quarter. to outside but last you occupancy the range these was from assumptions impact NOI Turning increase guidance. enough we positive increased changes We

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

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

Operator

[Operator Citi. Instructions] question first And from Griffin come Michael our with will

Michael Griffin

you I'm the absorption on would kind curious you the demand order leasing comment see just to be XXXX. later via more in turn year Maybe helpful. to And in need front. of net positive there up if larger see tenant that into anything could pick rate

Stuart McElhinney

Yes, Michael, thanks.

be in range on because is renewal was that renewal that need is. XXs going high average, to happy to that we increase That -- So renew particularly historical rate to the ratio in see. we're XX% new of know where good our We new in to to QX. see leasing kind in in of

large So do We which new this that we we kind had see negative warrant that in drove in of of positive that Woodland need to quarter. leasing range Hills, you to most do of course, absorption, move-out see there. the

and QX. out looking talked end then to Warner for at expirations. that's about So lot 'XX they know year going Bros. We've of the a be when move We at -- headwind absorption next a

Michael Griffin

opportunities How seeing Can when or distress capitalize new powder see with you term Great. dry can about loan, be there you're on sheet. market? we at in you got out the little ample bit And in balance on the maybe the cash with or you've multifamily? potential market, a talk then the office

Jordan Kaplan

maybe our there own people's markets, may before, to private private distress -- people stuff. view positive but we've on really hands, certainly I -- anyone that. real tell Yes, valuing REITs don't I with distress, try preference think -- some are anybody, buy working or coming anywhere clearly people buildings think some around for some don't internal these I the we are the are and a I market. great -- values you -- said it's have I've mostly us don't that to similar and in want for But I anything we significant and don't seen we still are of can't to to hold their aren't although else of in is where

Operator

come will Piper Goldfarb Alexander from with next our Sandler. And question

Alexander Goldfarb

you that, guess, partnership like like it's Blackstone partners on like the of it clearly, Or want core guys and it's in, say, distress. is distress, headlines ones get they typical it like is distress outside say equity are where in? working like don't private just to that way? money are to therefore, or to loans wouldn't for looking Just is it I there when But type Blackstone what markets, of deals, gotten underwriting Hughes deals, though those point, of if say or kind -- thing family the any would don't "distressed" deal deals of interest up be coming and the has Howard deals other PE -- to that obviously, more the that even you Jordan, headlines, your that have is of you last put us sort are that to you from look at? capital lot put like to that say long-held are a framework type there a trying sorry, perhaps has is. that over-levered or not the family the Or should lot are a a guys of I that cycle the project made

Jordan Kaplan

Okay.

you know loans the for the debt way, sale, So much been do very been have of be or a -- is of going owned those guys are or been it some -- higher this capital have I working reading. stuff offered coming is remargin I'd the of lot assets a kind long articles at for that debt Howard by time. Hughes want hopeful thing. of I've families that reading or time rate, might to the project lot say put into that most that been hardest coming same at the they up hasn't a on It's to just we're a up -- the have by The but

what but and the just this into you estate going -- want which gone institution certainly And could and not with long. some with you happy were described we're owned not it too this, remargin, the loosely that is don't institutionally having of of we've they're money we Hughes real represented, kind is put Howard they're donning --

typical or But and had got over of a gone have been long was we're we've its imagined be I own together the of you an last events of period. would what than lot remember, these thing, might anyone these X worse a guys, adding to mean now happening. has lot X call would the a recession what couple we years. which through any I I a probably recession like of in mean, COVID, oddly

and out ownership, of screw just worn some this. stick with their big they're a it's So in [ institutional terms companies ]

Alexander Goldfarb

walk all of sort remaining the impact through, on the fourth question what I How for next in Okay. -- second should impact to far modeling the of remaining through are that's the year. third want to I XXX a and units But where the to units quarter guys Barrington, May the occurred the vacate. based said and move-outs then can just as we with get on as regards then much just sense that we then of guess, during the and more And quarter is you Barrington the is quarter is out understand, trying earnings reflected impact? take basically, you on third the XXX

Jordan Kaplan

tenants now. XXX than less there's there right Well, in

impacted. So it's pretty

Alexander Goldfarb

that's full to at? date? Is move-outs those Or to of XQ impact all get what of I'm trying the

Jordan Kaplan

out people still last are there out. moving mean, moved week. People I ahead. -- People No. go No.

Peter Seymour

It's They in. Hi, rent Alex. have still in still to order The people rent. they pay Yes. stay pay who in, to are Peter,

trajectory down many anybody's So holidays it's how May so we've and up, move know you we until to to but have they X, you're it's until at. and and guess people -- right gets got move And got going that the May. that the stay out in going then to know how pace the to they don't fast coming now ultimately

Alexander Goldfarb

of the quarter, the No, presumably impact I much of understand that, third first because the didn't get the third move in people quarter. out at, the trying how day Peter, to but I'm

-- how ]. rents so So pay the many people they'll [

Jordan Kaplan

don't don't -- I number. tell even think I pretty you the that, mean we knows if think don't happy here I I know anyone exact to I was and the just even number,

Peter Seymour

I'll other say thing. one

out. there of move large day beginning which had when deadline So people was a to September a was of a number big

of So activity of advance that, there of but lot was lot a people were moving September. in a out -- in

don't seen I think So you've this.

Jordan Kaplan

like be Yes, will as of third you less fourth meaningless be actually lot I'll a I go error people rounding quarter than there next second more think will that quarter. quarter in the think the that get And of I even building year. into

Operator

question Heck And Blaine Fargo. from with our Wells next will come

Blaine Heck

occupancy guidance with there it to first, the but of factors clarify more whether offsetting respect bit to and were given just you that revisions are might -- decision the a those some just positive about of same-store, conservatism overall FFO just to can kind little kind clearly, there talk on So improvements, not guidance boost or is environment? any in be

Peter Seymour

I it's slight Yes. again. about adjustments have very we Peter just mean, take predict course, our range. I outside the well. mean assumptions, some weren't we -- positive to they we can't like but of talked enough to us And Barrington, which, did

Blaine Heck

of you it just have of kind new look talk the that helpful. didn't have We establish like you line That's Peter. pricing? more And probably didn't the And or place [Indiscernible]. replace that it but quarter any renewed whether Can sticking about in process and expired it, the line noticed a future whether like decision one was Okay. the keep in difficult would this with I been ability it guess to to you, to just quarter? than is credit during be the

Jordan Kaplan

two. pricing. We Number like the didn't

I credit of cash, company at about you huge the office that and secret And ], to we're for cost to now. expensive prickly when be -- our any we then all, when [ of so borrow -- a it's tend have think we first that. there's So don't also users line. right look don't

this when to even gigantic you fees. a into at I'd up and get charge mean, and feeling like, kind the really and having and unused interest to it, then now of in the not the money. you it, And fees rather pay loan want even end they colossal look wow, I of just think then I do fees get colossus more bank,

priced just thought what reasonable. was it was So of we outside

still buildings by buildings buildings. now XX-plus that way, secured way. we by are that And was Now still -- completely And like the X debt there's them. it no those are on there's

So -- it's credit line, could that secure we very we now. buildings a have a right of ton to use poor economics but

Operator

question our with John Kim next BMO. will And come from

John Kim

still need about Can bit the there's occupancy some additional and year? just Looks in you for color like just uplift a your the was wanted you quite of do a this guidance the leasing on guidance. change talk to lot but up in activity leasing quarter,

Stuart McElhinney

Yes.

better leasing I think on we did a little bit expected. than we

in lot certainly of we've reflected #X to as you're and been is right, quarters here a is was in do and now positive we're to that of got range. So for focus. we the getting But leasing leasing been focus QX, That's a the what still office our lot that's around saying back absorption focused here on.

So that remains true.

Jordan Kaplan

good are and doing a new. little We're this my quarter, we amount the little because said was good tenants. new, we're of small a amount those to I In remarks, a a glad did I see issue of on better on that's of larger like both doing better of we really -- opening did renewal. kind And

what kind create pattern one and good an it just -- sure, doesn't a what there's our keep absorption. you -- quarter. a that's of want because But that's we been for eye quarter have out what negative for driving see might mostly that's to So

John Kim

or up And to other been those downsizing are from office businesses those that Or lease they new emerge built that have tenants looking Jordon, now spaces? leases, are are space? and

Stuart McElhinney

mixed of we've growing. got a bag moving We've got new see other business we buildings. We've think guys from guys I got I mean, formation. everything.

a for kind true used XXX deals. deals, typical of story so those of what and of kind we're lot did of to that's And get we variety So seeing. always behind you

Operator

with Jay [indiscernible] from Evercore. come will question next Our

Unknown Analyst

provide if some and just looking could breakdown was new the between for just are I leasing the that a renewal tenants pipeline and wondering industries just you of now? main safe

Stuart McElhinney

transactions and provide pipeline, not That's a kind don't small business ever on. like these with we so Jay, something We're tenants focused all many that. renewal of new flow happening. we've

So short -- pipeline. a relatively and it's

we're on still XXXX and the for that in end As leases pipeline QX got. of the you know, XXXX. 'XX negotiating We're working we've not leasing leasing

provide there. real to no -- color So

the assume look our -- can going As as chart that it's pretty the just it's like far to look pie in and that. supplemental at industries, much you

real any among seen industry. major in haven't We changes trends the

diverse, pretty historically So we've very what for typical still still seen.

Jordan Kaplan

it, chart has similarly, a very you I been that long barely you for in another of tenants back, wow, chart we our And at can way very that they've I and time. think the consistent have industries pie look moves. size long yes, for tenants if of had same very go there mean the back represent that you'll go, and mix time.

Unknown Analyst

helpful. the drive but I quarter? in then know question downsized. on tenant one helped percentage in that there's else just That's larger quarter. attention anything you wondering that And a the I higher just was the that had if quick that renewal renewed

Stuart McElhinney

quarter had couple a timing a little go Yes. before -- prior note, renew to focused remaining a to into meaningfully you're more showed that it decision longer we might It's did expirations guys so And fell of percentage over your in had with right that year. that, left you was which the quarter think than I that just a I don't to a I we do. that know that than percentage. was we be waiting at on renewal of QX that it XXX higher the their actually make rather typical. higher But of kind typically know the you, slightly we in

Operator

Upal next question our will from Rana come And with KeyBanc.

Upal Rana

do you Plaza fully to to of Do complete. be by expect quickly. expect be you out installations to tenants the the XXXX, sprinkler when to circle Barrington just just want intend all to I May and back

to here going the for for timeline just look trying of I'm a -- forward. sense So

Jordan Kaplan

out. because to the work the the buildings all project do -- years be tenants work while. city that -- its have life we Yes. I to vacate be years And that all required do the years in had a all to an it's the years modifications X, fire obviously I it's to expect immense all a and the to safety and is X mean,

Upal Rana

regards That's before confident the year, leasing Bros up Great. Warner exit has are next Okay. in in you given helpful. how space the maybe space? that to they potentially And then back that

Jordan Kaplan

I I'll would run confident best XX-year been my I that it that we're in -- that space. exited L.A., would historically before I -- has leasing market we're they of say tell say not in you one you up give the this, L.A. markets can the

said, a Now driven reason. with turmoil, it's I all studios the It's for just mean there's office media mean, that the like have right I the that the there. lot studios their not so studios by of and have fact right there. might they is it's called they're there. actually

for And XX so instance, own foot X never like, the vacated building years. for has being vacant we that this had

a market. So fantastic

large Now happening what's pulling right tenants now, back. are

entertainment There's a consternation the in of industry. lot

has this vacancy lot a building it's a a time of happening. a coming right like be are studio there, large fantastic the great maybe set a because it's have the deals So am to there. to outstanding now, I not where prospects of of long-term reasonably the If because XX seeing market. But of

lot great I fantastic job stuff can well So to about lease building. It's a be to this it it's big is located. up. going but also a -- of you the building, tell extremely a

Operator

Dylan question with will from next Burzinski Street. our Green And come

Dylan Burzinski

made changes guess I you at the level for have? were state zoning that some that on the multifamily zoning just of guys update any

Jordan Kaplan

has state the Well, friend our this. in been

in hearing do Sequel public on. L.A. was gave XXXX, an Wave component. And change so allows to And a [ zone AB at is process. us which there guidance July. a ], And there's affordable This it just without

around in and great getting that's for housing Squad done -- those so more And L.A. the nimby getting

so state things been the out. And has throwing

are some But... Some helpful, aren't.

Dylan Burzinski

one was That real helpful.

Jordan Kaplan

super That one help. was

Dylan Burzinski

on of to was of a that a immediate one college, still like go any impact SATS that's That longer-term have longer outside no this kids projects they Yes. or telling process? is Barrington, big change take to the one. Does sort to

Jordan Kaplan

right we've realization It's go before it's But like talking really and that entitlements, we you of we see get -- I making we big to big. it much change shorter. about the to it the and conversation mean, impact the and and you're right been through to mean, a that's it's more buildings, That's where process it's everything. and a construction time was able completely really sites that, realize it's it much to that a build guys It's decision have very period. that want the time city's still same of to won't own, costs think concrete have shorter -- in because a I different value happened. in than the And and I timeline probably

Operator

Anderson And question from come will our Rich next with Wedbush.

Rich Anderson

your you? peers you're look real more part multifamily might amount that you First have market and but owning multifamily California to you about as REIT, a interesting of REITs Is I in we want from this Do interest, any of And regulatory at product hadn't of of area that different in the do and all any for question, become and say, lately -- all type talked that peer that thought or have have a your things the any that seen to multifamily market of office doing. you given have Southern an your of the country. here, we REIT fair general get in to out rate of more come risks political estate pipeline? L.A.

Jordan Kaplan

that we want. more than office We're the quality we're seeing seeing multifamily

it's of new. some And

Some off of Yes. about loan. construction you a can it's talk coming Kevin, mean, of I it.

Kevin Crummy

we also it's some rate squeezed planning who floating to bought with a other doing now. definitely debt, and that owners combination are relative right out get of multifamily looking and repositioning some then a have we're -- it's getting institutional is markets. people in L.A. seen to are still -- And that attractive on It's Yes.

moving mind, and own. to keep the great wholesale little And it politics. those we're politics moved the that politics back that on But say there's a abandonment it have so build difficult wouldn't make working -- that but to of also make in It's the left, L.A. center. bit to a all I to due

Jordan Kaplan

Yes.

I [ agree I with it think said Kevin him ].

capital, to we want I happening. can money generate it's saying build profit still cheaper right in I cap mean, to And very low at apartments than those cap you markets are can what terms If in people selling you keep why for apartments way sell guys, rates. of now. or trades rate these you or are

Rich Anderson

And question San you I are of are the all there terms some at say you that knitting have in expanding extent bell get me you and sticking to where other question you're you derivative now. your quarter not ring about of Orange this is, What nearby then or seeing having your environment. second for probably you're and horizons, waiting look a but a every said geographical markets about a intel you a does world this and stress, that different County is to kind like or but And mean would a at to of different looking. Diego. you you

Jordan Kaplan

answer about like market Coming That's -- companies and We're 'XXs go I love we're answer, the your a what the XX real to lot book sounding to and you would habits of when short about long from great but doing. get talk the said. the they from a successful is the stick what you give knitting.

focused impacting the remarks. here's and prepared tried this the to haven't say mean is tried our like I about better so life, of of -- deal, the And really I are But why about whole can't we're I supply those markets out just our I environmental buildings in what's markets prepared remarks, I'm X tenant fantastic. our quality office, markets mix gotten demand. a optimistic the and here. questions drivers, like find then don't and -- any our in we I that things think I to on constraints, laid I

course, supply when a goes you then, mentioned And issues. go overbuilding and the may be, the case have we can it ton of is also a I of and super housing or another yes, and here good to ], nearby the short build whatever the market, the [ one we And commute constraints. but

gone very hard it's in find stuff I prices too realizing, -- would powerful here. although has more still a the markets, do just a in but are And think I mean, our this at people they point, I universities other capital that's Francisco think down, I have are good the now low way mix San say that have very drivers there. obviously, So their gone it's probably to to I

Operator

next will question Camille Our from Bank of come with Bonnel America.

Camille Bonnel

picture bigger teams for leasing your deserve challenging the this given date So credit just think market. to activity

However, at since in offset to trends, the enough hasn't portfolio's really look been there occupancy declines if we -- the XXXX.

seeing So downtime sort assets? are you this of concentrated you vacancy? few can the talk of your some a in this you're And vacancy being in or one to seeing of

Stuart McElhinney

his unfortunately, we've spoke across declines look submarket stats we challenges Jordan Yes, you, the of not at recent seen prepared challenges any Camille, No, you if of we more and COVID -- kind now we're that seeing vacancy in concentrated markets the face give the particular challenges assets. remarks. in as mean I facing the about

and of a see around demand some we in absorption uncertainty It's downsizing that So mentioned. in seen incredible business good pickup, yet. and still facing from the And market. it's we the things that asset we on get tenants haven't and we they're quickly they're know we that here mean I primarily small tenants cycles, but turn large good growth we're can and really positive kind based have in growth mode, when their then about specific not a issue we issue. feeling

trend so far, the negative. And slightly still been has

small that the larger again. growing just we more see guys in to guys feel the So turnaround. change need We need and to confidence comfortable about the see

Jordan Kaplan

leasing. the about the fee, less lows highs X leasing, we've mean, our I the spent building doing that low. said Xx the said obviously in lot quarters than a close size, mean, now But We've we're Xx our very, of doing And amount sophisticated more at X of a amount you and to size of what of an higher leasing. we've order if make in platform is doing just Which look good leasing million that's make very group were I ton markets. leasing incredible -- that money at our something look for peers to we're doing. I leasing are had a they're you

platform So and designed have and to of fair capture we that of ton share our we're share more our a really fair there's properly -- than activity. a that's activity,

as economy. in of of do, want has or Fed expenses. and constantly exactly cutting to, all whatever alluded outside tenants to They're know shrink back. the I would here's our people large whatever I'm new be And industry, that cutting I to when a function cut Peter how inflation. mode saying to going I'm address for the movie opening plan doing thing. expenses. I'm normally I'm are this read new this this expensive. division. -- asked there's lot And which do companies said, want it is, about I'm this running new people's reading to as more the pain. I larger the be to this believe we do is shrink going them doing They mean a really capital trying We And to is said, of they're -- I what making of we

my the So that it's in was point of like impacting are using That's trying course, that's a I of recession. a is guys. remarks. Wow, XXXXs make the But -- to typewriter? cyclical these effect prepared you

Camille Bonnel

lot a expiration your there's going you're point -- based on the is of schedule. forward just It's feedback. I activity, a typewriters. mechanical I doing lease and from leasing standpoint pressures guess still good liquidity like yes, occupancy the but

and declining So investments you the the of how in opportunistic the balance type do you income market. risk with liquidity declining of flexibility or sheet have versus this balance that on

Jordan Kaplan

years, X been it X last doing way or for we've it. same balancing the been we've Well,

of our We flow leasing. have cash to plenty do

else. the an not we and paid finished have issue. in really dividend we excess of plenty and cash TIs, flow. mean even of our that's Even still -- So our and everything after I leasing all all

Operator

follow-up question with from And be our John next Kim BMO. will a

John Kim

can this bad debt quarter. I impact maybe of actors? wanted of bad that to imagine And about peers some quite lot on Barrington you the an I on extensively the talked update multifamily an tenants has A had out, these get this your bad quarter? if kicked also debt, during being had

Peter Seymour

ordinary not Yes. on of the seeing side. I terms debt really in we're It's anything out of Peter. bad mean multifamily the

don't sure you're trends meaningful the other multifamily we're but payment And Barrington. seeing collection I exactly with referring not the there's side. I'm think from to what on impact companies, a good So good

John Kim

Would down you has quarter? bad come say second debt in the

Peter Seymour

never. we Well,

Jordan Kaplan

As a percent of our the collections in quarter.

Peter Seymour

handled side with begin to much on multifamily bad We've that Yes. the debt that.

Jordan Kaplan

to pays. I There everyone far down. much come to mean Very nothing pretty come.

John Kim

quarters. it among movements top top you during X in curious, tenants. list were saw mentioned tenant very the going looking And this ]? happened of couple quarter, is tenant that your Macerich top then Okay. quarter. of I'm list, couple that your a was the What at small secondly, a There off back downside the just And this [

Stuart McElhinney

Yes.

the cut downsized no, that not mentioned, in John, X% of we think at rents. list. tenant So that top I I QX that off That on was our list,

Jordan Kaplan

XX like To tenant understand could That locations. list a that it. is have

Stuart McElhinney

Yes.

the tenant they -- rent, little I would the then of a tenants begin ones I Macerich downsized on bit, that, think, we which we -- mentioned you off fell that. that list. gave of of but our out that not last kind that to other fell list And the are over So sign And with. is year was how and X%

Operator

from Our with next Raymond question will Crow come Bill James.

William Crow

ago, about Hawaii. seeing given tempting discussion last Honolulu equity more market your reducing we few the question some talked I it think And in you. potential Years for of exposure? to to investment has gotten now downsizing opportunities Jordan, the that quarters. that you're your about think much in don't acquisition a start Is

Jordan Kaplan

weren't more us. now I market really we successful for be a making in attempting Would much money mean so if that's

It more -- to But capital to units. has that. it's bring already that on discussion list to because So big smart And be to a in now do a there. to opportunity do partner don't or presents what hasn't right one we it a there correctly we right with our have now, not remember had great That right start. lot that. structured opportunity of gotten for to to I say for own construction you're much is it a --

We we can up. start some construction, have new

are like control. combination but we don't -- we construction rents good, of build right are don't out the of a now, the against like units We that but now where costs have costs we can the construction little out

a actually bring we're venture is with that. And while, but more joint to it who good do it a really a do we to to for capital So watching want market into us have people that.

So on putting like for hold put while. of kind that we're the ones a are that -- little

William Crow

a subject, a curious step-up issue. revenues, in whether volume or but Okay. that's the Follow-up the that's whether issue different rate parking question,

Peter Seymour

increase and and talking income parking the just You're in... in about other

William Crow

-- Yes, sorry. levels more I'm I'm or whether you curious get activity

Peter Seymour

Peter utilization -- year, a continues but been been -- a now. as increase it's speaking. steady higher No, it's it high relatively was It's last relatively steady it's just to

Jordan Kaplan

we're I Well, -- mean just with getting the people. I for I little it's do spaces, a more I suspect to a has and it's lot both. hope more it hope more

Operator

with Our next Evercore. question from come will Sakwa Steve

Steve Sakwa

I on for you've the Jordan. the payments speaking, progress any the companies, made with wondered if just insurance broadly redevelopment. Barrington

Jordan Kaplan

we've to heated because in that have to wood we're there. obviously we chop wanted as of Is And to We're extreme gotten those do. far. We're a not disagreement that it there in guys. definitely progress they lot know with go letting disagreements

is So is. what -- probably to but years it this is to It out. work going take it

Steve Sakwa

just around got breaks like would You sounds Okay. And some on of Honolulu take? what it on back it then assets. entitlements some maybe about guess I tapping questions aggressive forward. other I maybe development. moving not the you're circling some the mean are

new capital? potentially be those And multifamily are own Or raised in them? for a other you would think you hurdles yields What bunch L.A. on -- you of your need I I I how have to much project? a guess, start sites relative redevelopment guess, the where to to what

Jordan Kaplan

good a that's Well, question.

say think I L.A. sites these lot I we changes, in in on mean, are which buy like we're are I some So funny, have because some -- why of why Virgin these buy-right, incredible. it's incredible. also anything right, lot course, not is today, at I of it, for mean cap on of then, about by there and will numbers, a that we even sites amount -- for. a much to not -- mean, what higher units of like these sites but mean, today's And L.A. what trading But a I that, own. said, argue still, is is Kevin talking rates of now I of I'm even right now with than major

to to thing do want last is, well, get the how you capital. use our So we

to places it. do do in So we can apartment start our we to buildings where capital just building want now use

probably that to to probably not don't an be obviously some building. use be office. buy Do I have our easy uses you do which and we capital it's there, apartment, use that we going of be have because guard now opportunity away wouldn't mean want apartments. buildings, our to to want mean I to a these building is one list whole still it's an to like goes we

to go not do. now, one put an one bring something was right because probably hold that it's well, or So away. materializes, nothing a it that easy easy or will an some we're save put and some capital these of to to going But use going do to partners to to do hold on go, it's that things, for that's other then in we

Operator

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

Jordan Kaplan

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

Operator

The concluded. presentation. has Thank conference today's now you for attending

lines. You may your disconnect now

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