Douglas Emmett (DEI) 5 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Stuart McElhinney	executive
Jordan Kaplan	executive
Kevin Crummy	executive
Peter Seymour	executive
Alexander Goldfarb	analyst
Nicholas Yulico	analyst
Steve Sakwa	analyst
Blaine Heck	analyst
Michael Griffin	analyst
Richard Anderson	analyst
Anthony Paolone	analyst
John Kim	analyst
Dylan Burzinski	analyst
Upal Rana	analyst
James Feldman	analyst

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] After management's prepared remarks, you will receive instructions for participating in the question-and-answer session.

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

Stuart McElhinney

Thank you.

webcast call Crummy, CEO; Seymour, for our This is the Jordan our our replay on website call Kaplan, our XX are CIO; being during and the today be days. Kevin President us 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 earnings 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 call website. refer I some Jordan. detailed of our now potential [Operator For be of Investor section to please the the turn can in which will risks, description Relations a SEC over Instructions] our to found

Jordan Kaplan

been morning, friends, impacting recovery Good you us. have joining recent many in our personnel supporting with thank efforts and Douglas Angeles Los of for fires our Emmett coworkers. partners around city's and The is and devastating, the expertise. and

an January, building site begun Burbank, purchased foot XXX,XXX redevelopment property. fires. into Warner significant development progress made and out we Boulevard, Studio corner to we We've property have of a it square on right our in the Wilshire growth multi-tenant Fortunately, by move our the convert Westwood of of key initiatives. Plaza damaged the none office In following were of properties Bros., and at several residential office buy

areas related We the are are commence that and floors completed. as common leases will signing

Plaza begin XXX-unit now to has permit construction. property a Our Barrington residential

negatively rates and our adversely departure. fourth impacted affected was occupancy the interest Warner office and FFO. expected, higher XXXX Lower also Bros. As revenues quarter by

However, produce our good rental stable assets. control continue and to performance we strong our office residential over maintained rates, across operating expenses

Excluding during ahead, muted is due are fourth in positive absorption larger XXXX below the both mid-week, than XX% our also Looking second lease average. well XXXX, We're Warner leasing Bros [indiscernible]. lower rebound to expirations record from high half We the even falling of our achieved tenants. office seeing a holidays with quarter demand the and X-year XXXX

during Given these factors, will XXXX. optimistic I'm achieve absorption that we positive

projects strong new I growth. am our also development excited details Kevin on ongoing development our project. long-term will provide provide some that can

Kevin Crummy

everyone. morning, good and Jordan, Thanks,

a a estimate the to investment, be X-year joint will we upon As a new JV's over million office period, site in construction existing XX-story, million depending development building a XX% of Jordan our a X- and our tower mentioned, to new the foot July Westwood. residential January venture final of building of the including the $XXX secured manage X.XX% acquisition to formed expect total to and We $XX.X adjoining plan. and enjoy interest properties. XXXX The And in JV rate in that and thereafter. to XXXX. operating own loan due new has X% and fixed a JV nonrecourse million leasing a other until matures We proximity acquire $XXX XXX,XXX approximately and square residential synergies interest-only significant Westwood upgrades to new obtained

of XXXX. The in swapped new debt JV. and January in X.XX% million million using a we $XXX a secured own for X loan The on matures in December hand joint loan by XXXX During at of we December that we is interest XXXX, office rate properties that $XXX which ventures another XX%. also our paid cash with closed a fixed loan down replaced until

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

Stuart McElhinney

Thanks, Kevin. everyone. morning, Good

totaling leases office XXX signed we square XXXX, feet. of record million all For a X.X

quarter. per feet square XXX,XXX of average an For

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

XX,XXX again in X%, overall quarter from and $X.XX of down year. leases improved demand per of back with leasing we over New in At average value square by tenants the to feet new cash increased square only foot pre-pandemic our signed QX an is spreads X%. average. The now per

Our leasing in group. for fourth below quarter the office the costs average during REITs other benchmark well remained our

remained our I'll fully With over turn demand. Our XX.X% at residential essentially discuss that, to Peter the results. with good call portfolio leased to

Peter Seymour

lowered Reviewing per Thanks, cash expense our the X.X% XXXX. decreased Stuart. AFFO with office Revenue to $XX.X lower higher which, good by by results to revenue, due under and combined G&A compared just remains relative X% million. low expense everyone. fourth benchmark and by At control. $X.XX share quarter occupancy, multifamily to Good due revenues, FFO morning, interest of decreased NOI offset lower growth our to group. of X.X% to office to same-property X% And partly our

Turning to guidance.

diluted our share and be And negative $X.XX. to $X.XX. We and $X.XX per be income $X.XX net share common fully FFO expect between negative between our XXXX diluted to per

new Our and we previously unconsolidated joint guidance the consolidation our just that formed. includes of venture fund the

However, to not expect FFO as to by impacted and venture we XXXX XX% do be only we expect new NOI joint during we construction. from a the own contribution significant

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

insurance possible impact sales As property repurchases, of or common dispositions, future guidance charges markets impairment or not capital stock the does property or activities. usual, our recoveries, damage financings, assume acquisitions other

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

Operator

Alexander [Operator from Instructions] Goldfarb question Sandler. comes And with Piper our first

Alexander Goldfarb

and affected wanting moratoriums. eviction or a is prayers those proposing some rent about question, thoughts with the politicians local have can freezes imagine read or to communities. in you Jordan, lot first Certainly, I'm we sure

initiatives. and think go think emergency governors of be and of what of to how the the these Just think down Cequa the of a stand will Commission if allow happening development the they're and Or also some any sense likelihood on to you on? ground, you you truly challenging if the going Coastal

Jordan Kaplan

we conversations don't hasn't off the while. production mean that of kind a have like I'm rental of for to agenda. to the I snuck rent been that it going of with housing. on the back certainly face from freezes, don't agenda don't terms do what's for they happen was the good It I It's know In move to I hopeful know hope I again. it. anything.

coastal In cequa terms of palisade, redevelopment for commission impacting coastal sure. for the about the palisade and talking the of you're the commission if

them when order governor's back Commission make a the then want think to and involved, to Coastal they're triply I he the came the -- said, be involved of not to the reissued to and and politics way "We order created, wants commission extremely it coastal he not was clear, sure involved. in be going is and of is clear kind was still the second if terms what be

way, sure and by And super They of had he them. way. in came on want And words strong. stay pretty the with strong. own city hard to fast their make track to came working on their they're super also conversations and make out the the to reconstruction, they I've sure

optimistic on that. So I'm

Alexander Goldfarb

is XX% then we is right I absorbing And think the ] -- optimistic when the you the which year, is the XX% [ Jordan, that the ] second is guidance But that way. positive Okay. gave question, XX% look basically to [ we're outlook at ], leasing trending occupancy and for this [ you'll year see now.

comments average trends? do basically occupancy on implies absorption which positive office with So your and leasing how that flat drive we

Jordan Kaplan

to a time but in. office a in absorption is working occupancy the get our out I and a say especially we if we're the Well, lag is you've widens. between of I positive apps leasing. leased lot that -- and past and occupied Leasing successful when I this, seen year, mean, seen and is occupancy you've fair, leasing this range, up, We're the people also on be will spread of has moving know

I'm great up course, always see leasing. that there's positive absorption hopeful eventually or so time. all But up. And moving on a the sign real And moving there a for we like lag that's of occupancy

Operator

Our next question come Yulico with will Nick from Scotiabank.

Nicholas Yulico

guidance. flat, us volume in up, get for the way this give occupancy a a the about? to down guidance talking year could in up order versus that Is you Following topic on you're and year, last range feeling there leasing assumed to leasing

Jordan Kaplan

real the for saw indicator at year, end a leading a the which last is So of showing. slowdown us year, we

But it didn't of people those kind slow -- amount I even of down. we like -- have mean, way below it went at expect see the both really the would historically substantially the very should -- not, get were So roll seeing one, forward blown I'm that just that move-outs to holidays, of X going of showings this very so showings X to so we in end. way with with saw not or even out that's there weeks average. December. Because Wednesdays it's average. I now in there's move-outs. combined And just our January reasons And said feeling of have the others year. we are that that and if above role low our low we're sort

very up. have expect this year. about Which role We XX% to typically get we little

I and So going around showing when and telling be that then then good pipeline, am. lower to go the have you feeling about and I'm you feeling a optimistic you and about guys role you're turn you good and I'm

Nicholas Yulico

terms ], how leasing? any I in makes sort the [ there's know shaping -- I kind just with a about been or of much really don't could decisions then January talk second you it's bit could far is whether January were terms more just existing about people that you lee breaks in anything leasing fire And -- talk leasing if thinking of on a about is But if guess, not. impacted, tents the about little works space in how year so or Okay. up. of how or if impact has of

Jordan Kaplan

impact tide does and data it going going and you very it's And think even overwhelm have that frankly, plus or terms have there our it fire the think it. the minus, that it hard quite out out on outlook kind even a tell be tiny have tide, the is. positive tell just would yet. to of if -- But of I any in to general what's whether any described, don't to on couldn't I I is figure I impact,

don't it I meaningful anyway. So was think

Operator

Our Steve Evercore. Sakwa next question will come with from

Steve Sakwa

for probably the like kind of you I size on maybe us the we at like XX,XXX apartment kind . deals, the can the investment? just look economics so think acquisition stabilized yields, planned kind of you're know just about loath IRRs, how Jordan, help new about think to help about office but of either of cap individual talk what both can up rates ] we and that [ do

Jordan Kaplan

I what, So know just only we've almost great working you XX something. -- year our been mean, that or together that's for,

you because I with cap I a the ] say cap apartment cap cap I rates when market, anything. will over than little other particularly rates, an ask, But XX% a I in rate, our that's [ to a of you going as expect think like will I on I over we're and done So I leased true. knowing, rate don't all really indicator rates at indicative -- That don't XX% think ] are hate we're cap like work building. be rate. cap [ with

Steve Sakwa

And the just that's office -- combined? -- that's component or on on clear, be just to that residential that's the and office

Jordan Kaplan

in on but and -- coming couldn't Well, office the then going be combined. out obviously, anything, that's the

Steve Sakwa

$XXX Okay. the you was the CapEx moving to XXs million Warner rent? know on When building, done Bros. we Bros. I redevelopment, the putting to that the $XX with the kind of new up in will prior Warner you're think of low think the then rents money stack building paying just do up that And rent -- for how to building. Warner as multi-tenant about million you're

Jordan Kaplan

remember, just that think I they so a month ago. -- like out or I say well, moved X -- will

people is get we to and leasing. and some can these pleased this already to But floors the that think we're get deals. get with work And remarks done got get paying. describe that going like tried in now individual done, we're these to our of leasing I common and we what's in areas we talk and prepared about very done our we're so

about good very feel going we on there. this, say what's would I So

Operator

will question Wells from next Heck Our Fargo. come Blaine with

Blaine Heck

And on answers. remind retention. is your I follow-up of between XX% leasing a couple mentioned you a occupancy what you portfolio? and that's guess for the Just us your typical lag Can in

concern the we given at So the got confirm year. noticed Are are expecting what a year, guys the this just in you've especially expirations end of lot that that's to towards of a Valley you all? those

Jordan Kaplan

deal, quarter-to-quarter, So historically you, we X -- and of is I with and a got historically, over think the expecting, it's X, has -- experience a regularity lot not are to that's very big it but isn't real I like tell reliable number XX-point-something very quarters.

would we're here. it I that's expecting So why then expect and

question? on was so was renewal. What your question that your And other

Blaine Heck

lag and Just occupancy. leasing between the typical

Jordan Kaplan

from positive range torrid you gets normal higher. there's I it get down are call a gets maybe XXX XXX of got time few to down, you I if like don't year to was leasing I real can a people like there had a above but got at time points. never number again. when ton you're leasing over, even a weren't remember doing you things where really but and tell years, at anything a time you there going when just can were know of normal about that -- of go say mean, So back, basis -- a We basis we to But XXX when points if XXX But recessions. extremely kind look we COVID talking it it know lackluster, a I if weird up it was would you, like I back would sort pace, in if XXX. estate.

And the I like that that said, a up of we're move seems to going they move in? about have XXX are doing of down When want you move it just trying keep were got are it. And to you was be nature that get to saying, I to going people when you means they well, we in, want and to want they because those XXX in? back Because just more to down But it leasing. lot everyone are to XXX because go in to that pipeline. to don't people remember

Stuart McElhinney

And that's X longer. studio going But if on they typically, out lease. building moving their would XX move about a that asking laws folks kind course, we've When and it's quickly, lease, we to within you're quarters. in or Blaine, take on timing stuff in can after the very folks quarters signed of sign that quarter of

Blaine Heck

Very helpful.

Jordan Kaplan

[indiscernible] question.

Blaine Heck

is considered commentary No, And just it's it helpful of this deals the about was willingness on new do partner, you? Jordan. JV the a Can fine. acquisition, QIA tell that to then you too, ongoing from their and partner interest was as then you. That investing that's whether kind partner case. like secondly, anything if And you with us looks with their a more and

Jordan Kaplan

had think to money that think for down been interest to in I had in the to them continuing look getting JV said, able whether they're making and question, been deals, be to make with of they've been And a I office, still we're aggressively And mean participation to Stewart a we them. and it. lose to know there. attention. X like because They If has you partners still is those frank. out our we've amount way we JV doing press. good So I we and be asked deals. going on want we're yes, partners say some deals Griff, to you not give in and being to want these got welcome perfectly know guys, definitely to squeeze to quarter they're like they we've an to saying and And they anxious we something every don't to if you're our now But interest they the fact do of really then have able those about I'm asked or how years, that traveling talk were the their an resi now Kevin tell the this buying be had do. and I don't in going be guys deal give happy always at much how this don't out you, I -- got themselves, some do do to X been can

So super happy I'm about that.

Operator

next question with of Spector from will come Jeff Our Bank America.

Unknown Analyst

foot talked in past, the to Jordan, on absorption, positive your if met health XX,XXX market fact thoughts you about see provide have 'XX you to question healthy bit up you you a tenants. to to that you're new, there's want in a role? less X/X around absorption backs -- see color Can in I you've more want we've on follow-up guess for comments you your a the what the X, that square seeing XX,XXX X besides

Jordan Kaplan

difference less sure. role lot big So makes a But a for we just we're getting of activity.

which XX,XXX quarter, Stuart But over terms goal, something As XXX,XXX tenants said, square X/X like one foot been and norm, a of which get questions the going and of has was be what's in to us big has again, at saw new. return the he last the of or answer. been we, and to in is above -- really achieving back missing to the to great our

better -- really showings our And prepared there we need rest And X/X and terms actual that, on that new about on so I with the I that's some of we're we're that just year write of out, mean, much we that's the going then everything add caused it. because the seeing mean these back. this back guys has what in of getting just trouble activity, really and remarks. all were launched as larger me having the that. to come to lease in come they've

Unknown Analyst

particular, coming from? a about And say. I should bit in, industries they're could that new and tenants, little Or of guess, you the what talk type in I more larger demand, are

Stuart McElhinney

concentrated Yes. across in demand We It particular saw any industry. the wasn't board.

saw larger So in across board we those estate, the demand we of real kind tenants. saw QX for

Operator

from will question Michael with Griffin Citi. come Next

Michael Griffin

that was the come in updated leases? work Is makes an market. out bit large I more mindset it home Jeff's your little just business maybe but go improved you're mean issue really that tenant's sort to to and in surrounding of changed demand. maybe the tenant what confident a the those economy. expand to kind them has know base, Is sign question never Maybe summation, outlook on confidence? why with tenants on seeing your I from it tenant back of an that the

Jordan Kaplan

coming recession away our really I sure sort changed I'm or a to I got has to -- I back that's didn't group, which why what's know kind and tenants tell also time, group, played might from or people of And kind be grew falling extreme They've market are our that's operating that year. prepare some and this and in didn't they out those -- of actually watched figured know a And we in be I many you, of I I of where and our of they've taking like add aggressive whatever. weren't development been to of some I things. posture role. and But strategies. and will of to attitude get be to how leasing attention. last that oddly platform adjusted during a maintained large kind were this how lot

And development think it's it's And see what I was our more we don't that to were know be might changing these we taking that it opportunities, this on substantially opportunity platform people some qualified and there bidding terms of was in -- only good a both we built don't someone deal they in is We're And everybody, the could I is I that perspective leasing our our from on are their have other deal. just I but because the realizing more deals. would bid platform. platforms whether thought trying even mean, of the were market advantage in robust anyone going attitude, come know deal, sort on and it take see of even now I a just can another was perspective up development we're development them there. now having us, I and even multiple not on -- now that handle of but maintained from rare. it's to of -- at that because

great a in going it, I So like lot about I'm stuff. our I feeling about on even remarks, good it. that my I things And really prepared just of wrote really good feel about not growth have we growth mean, now.

Michael Griffin

and XXXXX definitely helpful not big can that's envision there. can as you voice roll acquisition. follow-up bread excitement color. of tenant Do your a the No, maturities the a I of maybe you in building? on one gauge then whether your Wilshire building? And anything butter rent more mark-to-market Would or And the just the be opportunity comment it lease or kind and tenants? there's in on upcoming this

Jordan Kaplan

That to than with us to has extremely need we it, more -- talk decide and one what in. presented about direction we before good going we option, need we're building uniquely more

go So a got we're in we we on get time and to that need done relatively lot we've spend next that, what feel little provides opportunity but building in, soon. I decision the a that direction more which of need going to that. to to

So that I'm going let for a sit to while.

Operator

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

Richard Anderson

So now okay, get the you there a guys to feet. Warner a that on in opportunity to not of ground and going on quarter spending based you multi-tenant or the to gauge tenant, spending. so say, kind market Was the execution X ago, here, you're to Center your but work new that tenant. the single not it's It sort we done real have like had on sounds you're be committed it. hope What money got single square money you're it's I on mentioned XXX,XXX where done some not to of it's some to point definitely

process was? the Just what curious

Jordan Kaplan

about you're think talking I So Plaza. Studio

Richard Anderson

[indiscernible] me Excuse .

Jordan Kaplan

tenant -- The old the Warner tenant Bros. was for

Richard Anderson

know mean. You I what

Jordan Kaplan

have it. I way maybe that would have -- really we XXX guess going don't seen like a I'm the to that leasing if I've say just know describing -- XXX,XXX-foot never you're that. so down. -- lot. the would turning would all us I down had will sure that But the we're like market have options do had we we turned I developers that that we not a problem it So and not of good I'm by tenant, been say Look,

nobody have large But now and multi-tenant -- from distributed It's buildings. We X when benefit Our We of did a like single X decades wasn't. tenant in we with general, building in tenants. level market. decade it a a not it a well, had great of risk tenant the out or single comfort was the being there is to we we extremely be -- I'm that mean opportunity now I vacate, and lease-up. likes like like pleased an we're their lease pleased on that said, it And having seeing to And going building on. what's I'm derisk like building. but building we what I the obviously, up.

So that's good.

Richard Anderson

you'll stuff think real quarter have about you from -- in perspective? Do some leasing quickly concrete that to the talk a

Jordan Kaplan

Well, we're you're we start tenants Are and we're like X already in, actually not to of we're those that No. way? me of tracking we for going it going telling move leases. asking you in on to having But take a building bunch network tracking like if building signing the have going is ample terms ready given on. to start But it. that

up could our we think leasing going to it's on website we're you going has seen building, on the by ends some what on might have our even see like been people imagery I look forward . and prospects. that to

Richard Anderson

debt And to change year-over-year, that, behind wondering swap a Okay. and be lot environment projected macro I'm manage rate at might time your with can second kind Interest you this share XXXX. percent causing you situation of you're any XX-some-odd level, sort so question. is of environment? passes sheet if variable of you and to up increases how as rationale balance that of to to is bit approach way in in Anything quite expirations on. in the the the then expense exposed current a

Jordan Kaplan

got right? deals So those we from the it -- of and out, expect a years both see has we've X, prepared of his has we the stuck that the stuff that, in It's because nearly that And can we that's X So, you of as are debt. rate not right? with It's well, did, we've remarks, been that's strategy. the They're to been in never which X during refinance. come years when and Xs. been, go variable to Kevin fixed, way market floating. gone fix variable to deals just you loans those love the And borrow we in kind described for been

So we deals. swap up probably with it those opportunities, I willing loan the stuff or do With to that. to have longer-term live as rate to those and and changes. we're And make we're fixed mean, going comes opportunity and

Operator

come question JPMorgan. Next from Anthony Paolone with will

Anthony Paolone

Maybe anything where of And we increase looking out the at big guidance? that, asset a also just should minute. that we'll If coming as reside we be due. need you [ a any to next likelihood I for it's might ] addressing for that debt in out that or stay earlier whether of year? $X.X out billion look of have to we look level than spreads 'XX, in on of is And think debt that some about we some to Any consider?

Jordan Kaplan

because we're having we the line to with with and maturity. and so the deals that. deals, is the are walk Well, so on uncomfortable us everybody And it's sure, comps on them, And is, But In on ones, we're and for want deal loans these year. the working of to X definitely -- on working are deal so right? terms on out. have at down market to it announced much them far very equally with just dealing of way we're working this that when focused you extending But now closer the some we for this definitely we 'XX making that. they're debt time

Anthony Paolone

there's -- the assume? guidance, some of I in that that interest So rate

Jordan Kaplan

don't No, we in no, aren't because include our done. that guidance deals

that deals there. prospective or But like until then they're go those will potential are in don't deals done, the So include when done, guidance. we in

Anthony Paolone

it. Got

XXX then and unique. you talked And a you like just follow-up. [ about it's ], the how much XXXX, pretty Okay. deal On

and are seeing about should there out you markets broadly? more So deal we capital starting pipeline a that build to think one-off? Or as to

Jordan Kaplan

want Do to you answer?

Kevin Crummy

This is Kevin, Anthony.

platform this So coming can that our a looking that a perfect We're so that multi-tenant that's do. was see of not And to last we markets buildings that tenant great did format there's we year. number was optimistic I'm be we over and operating apply the -- going for what of more assets traded opportunity. to in our But a It larger fit. year.

Operator

the And next Markets. from Capital Kim question will with John come BMO

John Kim

[indiscernible]. you XX% I rate to disclose about cap see that. to I ask wanted wanted why on But the

do office in So the going cap that's you options. on I mentioned rate some Jordan, the side, think, you but have

multifamily, So housing if reason Is maybe one and can and an developing I yield That maturities can And XX% details, for more why the development, that then there the and a yield. multifamily that's you attractive you affordable to was that it? some just some if provide on it? redevelop you if wondering was upside get at XX%

Jordan Kaplan

So both just to In -- at I I income that didn't clear. XX%, above and not low the XX%, market. instances multifamily said is be say

John Kim

to above are in how multifamily? hard I to that? I you So mean get able it's develop X%, think,

Jordan Kaplan

right no in an our the option with function it of I allocation the paid included everything it's said does of no how there's It's was deal. It's the area. now, writing include paper of and it deal. remind and there's function gave a not on we a I'm of price to that to rents bought It's I it that by surround -- you in rate. because just land me the -- cost on telling It's building. building, the Kevin's a you earlier a piece cap build we

of be that not that building of have that I'm in what rate. saw we're -- we're building, going I for rate. people's only opportunity kind earlier the for But on -- it ones for a that entire a for it about to just because anyways, no XX% we is described and recognition you you're not development kind of to told to the with I obviously. I this So and what deal It's it cap project. the cap robust the a pretty begin what's respect sure here, there's won't But know it's with, apartment -- such we platform high say assuming when

today and that that locations Wilshire And And you been with. like familiar in law that own changes pointing world. new know along very out there's been that now a to guys it's state we're I've there's you some we

able And development fact I rise. buy resi. this of can a In and away. Brentwood, knowledge the a just know, that here right, We our just all and literally, we lot cost group high front. blocks and you Now with information have build on don't understand that built to being

and when were that's so today. And we the opportunity do. just contemplated And able against very I building to think that there to and in, recognize was everybody add we're price that bidding it also we the paid there's to be a easy able standing that

John Kim

Congrats great. it sounds

your guidance. on far capitalized wanted year? follow capitalize up an is contemplated Just end million were What And XXXX. how $X in as last up as think run did rate interest? interest in to you I

Peter Seymour

mean I all that assume specifically development, more And expand It's Yes. be to say can don't it. have guidance that. of we give as think we capitalized there that's will you Peter. on I yes, but interest, bit on I a

John Kim

Plaza Can us secured has at you debt? remind Studio

Peter Seymour

It does not.

Operator

Green with Burzinski Dylan from come will question Street. next The

Dylan Burzinski

back the go density can opportunity kind in is? having of but to to past, of of describe big you it within just your I to wanted alluded guys you existing portfolio I operating previous comment Jordan, an that just know kind the today. set about how

Jordan Kaplan

I'd like of units. past. people on thousands the tell It's to

Dylan Burzinski

I is these to of guess, at near-term sense able process? lot in any endeavors? I And term and nature Or to in a development of being mean, these terms actually of be for sort that start get are there longer

Jordan Kaplan

long most are how owner like and -- So in move past, state think goal building was run of we to the is X would asked this because Hawaii we're do units to and because be are deal L.A. on there these deals been said deal in in primary thing. the And at particular rapidly say, I And would going in then past, Wilshire one you well, said, then deals by because than Hunt, function our how a already our just how continue we in in took and we strong I and -- in rapidly changes and deal I as And think doing the a impacted I a going build going of a we do. changes. development at -- we're had of one. where now group so complete here become. how you more you're years time, few time wait go minute, the next and finish any them a but take And on it's to I Barrington -- like mean, has also another you have

but out have than the just is we X it one, it maybe And and can lot. we take X case take on now, more many that able takes to I'm not more a -- than

now. X have X Yes. Do now. we We have

Okay.

X. of stories now X fingers have put We

yes, lot have So on. a going we

Dylan Burzinski

And if may. one more, Great. I

driving sort getting and talk kind renewed sort think guys about mentioned just square levels. tenants? the amongst You over XX,XXX feet you of Can to -- what activity of of is pre-pandemic of optimism cohort you back this

Jordan Kaplan

one deals shift I going -- like for a dramatic know recession longer that's that these I getting got X, completely you, go. our there's kind face have definitely I lot it. been in leasing, of ] believe, to position -- tenants made. deals that's is if things to to in and X hard think lot going getting to I XXX And I'm beat and Number come of difference. leasing. tenants and mean larger see tell I difference focused ask as tenant so a people. in also they're bit I and is, of -- going place Well, Douglas to you going But me the going we've to no I them penetration think can don't doing our more go Emmett, they're on of big I an But and go, people how access a at And any what's Tsoutenants are I on. [ market about you, leasing, And got the vis-a-vis separate tell that what's do we a on. but to guarded a a we any you the a on up. mean going it's big making if

that going strategic you're focused enough what's and that's long say enough enough and and enough hard you if happening. So, and to do so, leasing

Operator

comes Upal KeyBanc with Markets. question Capital Next from Rana

Upal Rana

have that what's the loan finalizing And currently matures extension million that the of been $XXX what due there and an you're the and by conversations like? amendment process negotiating probability the the in on date? March The are of in

Jordan Kaplan

already there to I obviously, I'm you've right mean probably going willing that I prepared discuss and I think to discuss. anything don't on that's the now. outline going on, that's what's mean, amount to we're

we like to certainly So in and them closed. don't after discuss we and really announce process, they're done actually deals

Upal Rana

acquisition. my And on sure. then XX, would be XXX question the Okay, other

feet especially existing sublet of to XX,XXX summer that have preliminary and purchasing this as You any plans your conversations tenants the to asset, square with some well. about may being tenants have the had What's your tower? with it confidence with -- upgrade expiring resign those you prior those

Jordan Kaplan

with the tenants. Well, I market, we're obviously we're in familiar mean the all

So lot -- kind has we we're a confident and can path -- kind I We gave -- we're going where decide about It don't not I are and I'm for midterm. talk we're -- where have of give on. redevelopment to lot today can know individual guidance you I want tenants. it we couple paths going I mean, to a follow. that on. to has we It We of of has a gave have follow, not like building going residential, and to a going we we're what you don't headed. has on

just or be about sure decisions need it, will I'm some some out play that and better good. we So to make make it decisions about it

Operator

come Feldman Wells Fargo. from And our next Jamie with question will

James Feldman

picture thinking the impact Just wildfires. the big of about

going you couple forward? about planning, to going years rebuilding And what think the things on you most causes what with about different fast on forward about? of Angeles are what And here, be Los moving based then do most conversations concern is If going you the optimistic you and a forward? most

Jordan Kaplan

And by an is I morning, lot anything. there about that's -- I there's a thought probably that are of Palisades is a terms was is other the going read as that that, and New there outcome Times projections a that terms history of like Because is in impacted mean is been a But can Kevin, people and and I York go to this house. of to end. the to Palisades. was you not never personally, a the it going headed guess Peter's, even have didn't where the I around of what's thing, how back where the can't much very like, in forward, of in this imagined. the of made getting change would this I in imagine that I time market good about but which say people So Palisades fire, here mean focus at his article be Stuart, have it how at lot in all does beginning the personally and far you I now time on if the want going a communities spend Emmett, lot devastated. Douglas

be a of virus through, the area more development in you happened to and has of changes to that what city of at positive look is You where in allowing terms development, extremely to other making come markets Malibu supportive know that bunch dedicated rapid. where already

people I can how and the to they're people know also market almost saying rebuild a are out lot Actually, of just either their of fast I few -- are people lot. and achieve are I neighbor's for very talking about like I'm know here. [indiscernible]. in then

I me horrible, happening. does And think headed. give myself, going go We're see optimism where a few been destruction. this through about that Palisades it years, rough the So I has to to but is

And so see. we'll

James Feldman

just We've know as guys you're other in more rebuild you interesting profile think submarkets terms I commercial high be And difficult -- the for then some Okay. leases with topic. that a might guess, Anything or in going and I in demand different forward changes estate. school the heard submarkets you about the about for Santa real it's of thinking changes? Monica.

Jordan Kaplan

try that they all I and them, Santa to course, the that schools, know I students stay know know I we're we're have to don't not some programs are of one out. some open, are and that because, schools in whole want help I like space of I around kind other they City, right? kids and of on talking accommodating know. other they're -- I I to. for And Well, I'm now Monica. school want that but have there and schools know the schools thing. mean Culver damaged to Board mention look

-- Palisades So X or bit aside, be to know are of There Putting office makes difference. again, area some a I'm other they on. businesses medical that normal -- normal to little the the buildings, but there the thing is or are schools a had going that actual in size that, and not that market of that sure medical all transplant big have going X the is office. our say a I with Pacific I office I'm like

don't they something maybe I before. degree think, is now. other renting impacting the small or people like of home an leasing, People think I Work might I asked much big work to there more was as difficult earlier, I And even build might that said much. that office, any from until houses they're where come were that as from not lot the have us that tide a they home kind it existed don't a of just office the in the I their been renting they're of the smart and know of be overwhelm would want be place, I back. just tide said, house they of have as displaced

difference of leasing So I against even I'm think to think not -- even the and a big tide especially make where I is going. I can't say that leasing will that

James Feldman

would Santa assume I Monica...

Jordan Kaplan

[indiscernible]

James Feldman

helpful. from that mean would I closest? would Monica I get the I benefit Santa the super is reconstruction assume that's engineers. No, architects, type mean

Jordan Kaplan

Yes, that I will about me, that more incrementally to space Yes. I'm to office need when made there's here this sure Santa more a and activity all that that they and you too isn't for place means difference way for difference, happen. construction and big chance saying yet. to Westwood, Monica capital think few early there's a -- a it's if years. mean into going think be a capital the in, way of get I make but will you're in and here, to areas Brentwood a lot that's comes I come and But to these quite

it seeing aren't we yet. So

Operator

Scotiabank. with Our next Nick from follow-up question Yulico is a

Nicholas Yulico

on bought leasehold [ Just that going a but this, dead us on looks it ] to back XXXXXX to that horse you ground. the in beat Wilshire, not asset to

that you're So is the would is yield And that cap citing is higher expect? than also some expectation correct? rate why what

Jordan Kaplan

on own bought We own the the ground the it We're in both. building. fee. thing. in No. We We whole

Operator

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

Jordan Kaplan

thank again and a time you speaking had Well, in to know I questions, spent will was with for and a us. Goodbye. quarter. this over Okay. the you joining be and look complicated lot that it guys appreciate release, you of I we a good

Operator

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

may disconnect. now You

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