Hudson Pacific Properties (HPP) 9 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Laura Campbell	Senior Vice President Investor Relations & Marketing
Victor Coleman	Chairman & Chief Executive Officer
Mark Lammas	President
Alex Vouvalides	Chief Operating Officer & Chief Investment Officer
Harout Diramerian	Chief Financial Officer
Art Suazo	Executive Vice President, Leasing
Nick Yulico	Scotiabank
Alex Goldfarb	Piper Sandler
Craig Mailman	KeyBanc Capital Markets
Jamie Feldman	Bank of America
Emmanuel Korchman	Citi
Blaine Heck	Wells Fargo
Rich Anderson	SMBC Nikko Securities
Omotayo Okusanya	Mizuho
Michael Bilerman	Citi

Call transcript

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Operator

Greetings, and welcome to Hudson Pacific Properties First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference call is being recorded.

I would now like to turn the conference over to your host Laura Campbell.

start. may You

Laura Campbell

with the over our website Good Investors Properties' section operator. our and to and the an the of next audio hudsonpacificproperties.com. for available of welcome release are of also Thank Investors will Quarter morning, XXXX Pacific week X-K on call filed be First supplemental section our today, replay SEC. Earnings on Hudson Both and now you, were everyone the An webcast Call. available press this by website. phone on Earlier

which we reconciled in During discuss supplemental. this call, will release press our non-GAAP results financial financial measures are GAAP and to our

We regarding These SEC in also our our making subject the on including uncertainties based current statements ongoing various COVID-XX discussed will filings, expectations. pandemic. developments forward-looking to be statements are risks and

cause forward-looking these in direction update. certain prompted could to COVID-XX. the response materially resumes. events duty statements, when by our today to which operations our maintain disclosures we expect results do differ to of normal undertake We of changes have special added disclosure disclosure level no in business Moreover, to from this not business Actual specifically on we SEC's

call. our I'd senior management CIO; Vouvalides, during the Chairman With Victor be portion President; other by Victor? our our will joined Harout CEO; welcome like CFO. our that, Diramerian, our Mark Lammas, to and and and Coleman, Alex COO Note, of they Q&A

Victor Coleman

Hello, Laura. everyone to first you, Thank welcome XXXX our quarter and call.

all line who are and to doing by do And hearts out healthy us what impacted go to all front stay remotely COVID-XX. know, many our workers keep these for grateful and to for As of unprecedented very albeit enabling safe and us. times we we are we're everyone the

vertical Pacific like we'll then markets our the first weeks. those start cover the a the details job over phenomenal has I swiftly by adapted construction in and Coast. positioned operations as came a And built. eagerly the over along to of where are we West our Hudson incredibly team realities of and it's the We reopening company has well solid leasing proud since quarter every and or and last entire imminent for several off an every course team am whether done await off to new company absolutely we saying what the sit and I'd the very today or other we've all call.

their tenants second to every for we've innovation shareholders Our passion balance any none. resourcefulness and sheet employees, a our maintained benefit markets. our we office circumstances is wisely and build a leadership extensive excellent and always resilient their $X team and We've country's and their expertise, of Under from to credit most premier access. the capital dynamic And liquidity billion and modernize at transform disposal. over strong in today, and have portfolio invested

And high-quality of the quite And media adapters. innovators and and ABC HBO others do we have tenants, tenants current many and well Google, our who Amazon, like themselves to environment. in among Netflix, stand are tech

pipeline development going later very the little with further in call. Harout spend all risk Further, substantially funded limited on fully Mark, with above are the and Alex we context have of construction provide remaining pre-leased and to

place and operations, of are home finance, on among We our legal. across from we're of and HR, put headed emergency a force, continuity organization. that our the team mid-March any date. by to the we executives multidisciplinary senior communications from out been unaware report Most employees to cases was COVID-XX task business working plan team thankful have rolled our We are which X, successfully response in of March leasing, a IT since

janitorial proactive staff: and protocols, cleanings our with like recognition to teams. engineers and our I'd give a a essential They're safety and operational open on-site and doing fully job of CDC additional to day-to-day working Our and the communications. special managing property guidelines. compliant properties enhanced remain and BCCDC fantastic managers, our

work ensure finishing and to our reintegration expertise the orders touches to employees putting are internal stay-at-home distancing. our own experts. hygiene, robust and on We're and the once areas focused our and a like tenants points testing. on are program we're configured plan on-site leverages to adequate lifted taking outside things And of filtering; return safely on enable interventions both team and steps common properly and to products We're allow like and cleaning health air amenities PPE social access to managed building

and – the And we're latest practices Firm partner design best area. looking solutions thinking requirements at this architects health taking Fifth preferences for a vendor at variety the and leading incorporate our best safety new about our and We've and into of practices. and and in Venture to with Wall engaged collaboration PropTech management

the the various for While exact communities we work going implementation up civic with to greater asked and other And in and I commercial ready local community. honored of Relatedly, we'll Angeles be real these Eric a best we was can sector. his such roll seamlessly. accepted variety economy our have believe, for our inform markets all join Mayor lend will during in Mayor extraordinary no the request federal advising forward opening throughout. our very I that office leaders a specifically Los on timing and I've to it's to markets administration from and our been and remains working estate practices important unclear Garcetti Garcetti state particularly the commercial city's across my especially, benefit doubt I expertise of the initiatives co-chair have to path group. times more that out by, where

and gather released Blueprint Mark, mention we leading over corporate it, our with like to and Before our XXXX review governments. year Along Social turn report. Better And I'd team with to to responsibility that over our call platform. we local launched new the I recently VP ESG Sustainability impact institutions data Teear last align Natalie of the leadership our feedback worked the and

an Hudson understanding reverberate for Pacific to vibrancy Blueprint our tied we stakeholders. from work live properties. authentic around in Our goal in ability ESG thrive comes cities. who company and the to is make the an choices is our and program our that and the broadly to existing urban-focused Better to rooted lives of resiliency of our to most that And ultimately, to the our matter initiatives play and and the build upon issues a various The as create office in our businesses concept those REIT as more and these communities

of In all creating of this programmatic for from elements culture for on to XXXX, I vibrant, you space wonderful report foundational report focus and sustainability, honed and website. Through a commitment highlights those. more outlined than we encourage in health our process, XXXX long our goals equity. each and our to download It's we for built three testament term. ever urban the to areas: people importantly our thriving, and a our now

turn to over going I'm that, With it Mark. to

Mark Lammas

report an Victor. pleased these of no impressive we've We're studio rents, XX% doubt of rents XX% Thanks, XX% reflects collected rents. office to which tenants. This respective the of and that includes total April quality

more XX% I collected will discuss in of moment. also a storefront rents, retail which We

jurisdictions Those California program. afforded orders impacted were and rents, essentially to respect with Early of the tenants local shelter-in-place throughout orders Washington uncollected beginning to pandemic qualifying small by we've and many rent With requirements protections. businesses, various the adopted in medium rent as the relief commercial a implemented tenants. businesses relief disrupt pandemic, to preponderance protect

With portfolio by was those few governmental exceptions, covered our orders.

two remaining been with rent of about ordinances. local dovetails our orders, program either with year-end by have Most rents term. typically the Our lease requirements deferrals near-term the repayment or before repayment months, over underlying relief deferring corresponding amortized to with

granted X% April to we've of equivalent deferrals $X.X million, approximately To-date, or rent. total

for deferral. Another X.X% approximately $X.X total April either or payment of million, remains in or rents discussion

a of storefront of only $XXX,XXX retail have hit, granted we've of monthly These but rents, hardest rent. deferred our the tenants. shops total to composition cafes little over about been of and terms X% In smaller comprise restaurants deferrals

While a to as be keep they soon retailers amenities revenue, large our of types returning of communities and in office these diligently provide local they're to nonetheless both place, tenants. we're to not working portion our

quickly and office longer comprises XX% storefront We've operations. deferrals recover million granted storefront normal retail to Ferry $X.X buildings about return our to take of occupied may feet rent retail share XX,XXX company's the represents of become Consequently, which we to of marketplace The again. relatively expect just to square tenants. Building as co-working

connection share doing and our We in another abated of it of true entire Maxwell to just some intends April to to of that has with rent opportunity our other paid an rent all company's with throughout co-working locations portfolio $XXX,XXX X.X% enterprise Meanwhile, space. rent at co-working. WeWork at monthly X.X% The our so. attributable comprises indicated portfolio or recapture of co-working all within continue

distancing, social role We for rents believe direct space, may become to us co-working but opportunities clients deferred albeit for there for create a go traditional enterprise continued should delinquent. modified is

deferrals. $XXX,XXX and of small terms In of about studio we've office tenants, granted

rent. $XXX,XXX been shutdown's likely Specifically, has of our is only the rents. tenants not studio and of studio as which noted, abated, just we've related credit fact impact highlights, equates production the to a deferred always underlying This to total of revenue X.X% April in rent both that prolonged or be most seen

we'll content aside, are studios even perhaps look restrictions demand. shelter-in-place and in catch up a acceleration we lifted, related once an with see revenue believe to normalization as That production

to four to seven-day schedule may which week a week hearing For enable typical us over productions schedule, a recoup lost time. revenue we're example, may that go from five-day to a

an non-contractual Angeles In We Francisco decline surge shelter-in-place will travel Los saw stemming Los to the studio and color production the first for our in Harout the parking revenue future. major bringing in non-contractual on and transient to as the films more resume stages and quarter, parking expected be guidance shows a look in expect Seattle, the we with from demand foreseeable various curtail garages connection immaterial also also revenue San will for particularly measures. pullback in Angeles. first market provide in across our

from word approximately projects delayed that projects. of square involving Northern feet improvement portfolio Jurisdictions improvement ranging final an delays. across delays on measures our restricted policies all-in these tenant more may carve to our temporary tenant essential adopted that for outs back XX,XXX nine only construction have deliveries. tenant California temporarily service some Thankfully, experienced as One improvement push

impact any, expect we minor. it too While delays, the to if such be to gauge it of early relatively is

lifted Fortunately, both this restricted and San measures. Francisco week Seattle said

along in unabated. continue with these improvements tenant those forward, markets Los going should Angeles in So

And now, call Alex. turn I'll over the to

Alex Vouvalides

the record crisis market, strong West of most end supply. part We of and footing rents limited mid across low Thanks quarter to the for as first which single-digits the the the Mark. had on new very our available Coast in entered current vacancy

and XX% leased of GAAP feet new nearly square respectively. Our on and the heels cash XX.X% stabilized deals rent spreads XXX,XXX and office respectively. of very completing This was XX.X% were renewal XX% portfolios healthy in-service and and at of

XXXX We made our additional progress on expirations.

As balance expiring only at the or first XXX,XXX the square material ABR of had for we of remaining feet of X.X% year. with the to the address quarter, leases end our no

coverage that thus We changed. have those on is deals conversations approximately far related LOIs in and not XX% terms the deal space or leases, have to that proposals

fourth our Only tenant February, earnings about pipeline others officially one are feet. quarter slowly. feet in around square of those on are hold, interest and Today, market. diverse of square moving it's across while As with call leasing about million XX% XXX,XXX deals our was size industry,

week We've conversations things of out in still revolve seen to tech moving bigger to have tours to deals or fewer in-process like just space last forward density. they The the with trying around a over talking or handful need those if died. how same have a Typically people they expand. are sort so. albeit the deals can we're Only companies actually resume few and

on deals over we're While most in early efforts renewals, new focused feet we've and signed since deals activity began on some square to and of March. our of now first working expansions are right slow XXX,XXX

in we've progressing lease are teams there is Westside, no have have where far, Again, issues material our terms the wearing delays We construction development only which chain Angeles or construction been under length collectively or no projects Los and XXX,XXX includes in concession. rates, Harlow square shift essential. deemed Thus material with are seen two and supply and feet, appropriate One PPE. redevelopment total on-site projects that both

We quarter fully of million and One is year. received Harlow Between these on swiftly, this projects, under first the remains Department off spend and circumstances, have track $XXX in quarter the Westside rather on delivery. is remaining about to deliver Power. second schedule for we Water two funded. XXXX late sign from of recently which

pivoted pre-leased and projects with we Westside even aggregate, In these to at XX% current environment are Harlow Leasing pre-leased in One the to strategy. fully multi-tenant continues Google.

over call to I'll that with Harout. the And turn

Harout Diramerian

Alex. other Thanks $X.XX lease year the as year-over-year Northern leases significant Fourth office diluted to share FFO throughout share this were of of ago. The several EPIC as expansions at In and tenant diluted the $X.XX first per material quarter, of excluding specified increase. commencement a California items generated Traction our compared primary we well commencements & portfolio and drivers per

First from $X.XX tenant of quarter reserve to or transitioning one-time million per basis XXXX relief share specified diluted cash to items or related and a were $X.X transaction-related $X.X expenses diluted $X.XX rent co-working per million straight-line reporting. share

Specified items diluted $X.XX debt share of the $X.X first and million extinguishment XXXX share in costs. or expenses or million per per of $X.X quarter transaction-related of were diluted $X.XX one-time

office end were first As XX.X% mentioned, portfolios leased and of at the Alex and stabilized our in-service XX.X% respectively. the quarter,

was XX.X%. percentage Our studio same-store leased XX trailing months

X.X% GAAP X.X% our quarter, NOI increased basis. on In a the on XX cash a properties same-store and office basis first at

by XX.X% X.X% in not on basis cash but a Our $X.XX increased studio and if a payment NOI same-store of quarter basis, and of impact decreased fee first have X.X% million for GAAP respectively the XX.X% XXXX. we the received one-time a inactive would on

manage for in opportunities we buildings us for also It billion have we ample to pursue XXXX $X.X as liquidity our One revolver. point This preserve the dry the no capital until Met enough by and Park out and million as near-term new except build should loan future. deliver some Victor in North, to which us and provide secured gives powder and $XX in at intend our our Harlow Google. commented, Westside As we we with liquidity pay maturities

$XXX Specifically, March of our capacity have million of facility, we credit after million on on cash and our draws another undrawn revolving revolver. equivalents our over $XXX unrestricted and cash

which We revolver also and our million excess Bronson $XXX at access discretion. on we secured a by CUE can have of Sunset separate ICON capacity

that Westside of capacity million entirety on We fund also $XXX our project. have sufficiently loan the undrawn will of nearly than which One construction more

based Due related to the the uncertainty of remainder XXXX. potential our we We've in COVID-XX, assumptions assumptions of results what and on today these help are assess lieu offering the to ongoing disruption earnings know to guidance. following we you for formal

perspective. to have a our GAAP impact program We expect relief rent minimal from a

in deferral. In terms deferred approximately for million segments have another payment discussion of with cash $X.X million across cash rents April or all of we $X.X remaining approximately

depend of Additional months. portfolio. the appropriate the over cash time on frames deferral deferred shelter-in-place may various coming across be duration The rents will

Non-contractual of As continue expect previously we $X.X abated income of mentioned, month. $XXX,XXX totals per April rents million cash approximately which we will throughout parking NOI the approximately year.

Las anticipate with rents, As with the million of delay the on compared in a expect studios, of guidance. original coincide duration respect at approximately we timeframes. cash to this shelter-in-place occupancy With income NOI to handful deferred of in some stages resulting our in impact Sunset Palmas we reduction our to the $X

to NOI on $X.X compared to in -- million acceleration content $X.X intensifies. prior anticipate we depending activity approximately shutdown resumes as studio reduction the temporary activity million expectations in production and production the our to Due productivity portfolio, across an our in in

the our duration stemming guidance, While mentioned year excluding the shelter-in-place we currently in compared could to original share a in estimate again on company's remains of to that other healthy, slowdown impacts from activity X.X% depending leasing already ordinances. full ordinances of our a in parking NOI the decline shelter-in-place X.X% and pipeline leasing result

as in requirements Even of on revenue still Mark Alex our deliver had call and/or we've ongoing across has once Harlow and As continues of this markets leased delays though projects impact shelter-in-place recognize and and terms construction Westside. timing. noted, to minimal One all and may track we're at improvement resumed tenant

to over Victor. back call the turn I'll now And

Victor Coleman

and the Mark, to thank Alex, I applaud Harout, times. entire Pacific And adaptability you, for them these Hudson Laura. even their tenacity again, in excellence and for want and team passion challenging Thank unwavering

we're healthy know updating your we being back support And form in in the or extremely together stay and appreciate I look to looking fashion you quarter. forward listening, all we soon. safe next office forward some everyone to and to

Operator, line the for with that, open questions. let's

Operator

from first time, question Instructions] Please Yulico question-and-answer you. your Thank conducting proceed with [Operator with session. comes a this we Our Nick At question. be will Scotiabank.

Nick Yulico

everyone. Hi Thanks.

I decline stuff on that a in you X.X% guess -- studios, just excluding think decline assumptions So, to that you NOI, that's unpacking said some vacancy driving that's a here. like bit? numbers in that, X.X% I Do little gave parking, the appreciate mind the year full I leasing just other of NOI is mostly that terms a you number?

Harout Diramerian

Harout. needs. is bit bit. little more out to as It's space their -- delays little try this A in A figure leasing companies

the down bit. slowed that's leasing a little So,

Nick Yulico

Okay.

less some mean backfill along So something of effectively, just -- it's lines? or assumption on I those it's expirations

Harout Diramerian

slower. less, Not just

are on needs. little bit I their a future decisions companies taking make longer think to space

Nick Yulico

earlier of And whether your seeing tech from exposure sublease supply. about not think haven't just market? Can your seeing in particularly, capitalized it. you're in of Got in said benefiting long? around talk maybe And about sublease even you are markets guys any some what that new Okay. you requests? as you're little you smaller your And terms space thinking companies I'm own to your been as well pickup portfolio, in

Victor Coleman

up the let Peninsula. of but what end in, sort lot is not Victor, XXX, market. in That's not others. still jump the the with some San this just down Uber asset Nick. sublease Market sublease piece of At from change but a had our we're Francisco the looking been and I'll standpoint There's So the largest material of day our of at is at in that's Street, Art

changes material here Vancouver. California million has sublease in been the think no We've in square to or about still feet, it's the in three it's Washington in lowest but sublease or increased three space seen I years. Southern

increase. at general seen we've not basis, much space of sublease overall, So a all think I on

Art Suazo

-- realm in tech And smaller you certainly and add the as just Yes. not I'll mentioned.

Nick Yulico

just terms worry can I the -- of aren't guess portfolio, well where more I where us you that public, this your would exposure in portfolio Okay. capitalized? is that companies -- are that right there? of now piece not about exposure the lastly, what's you the haven't remind mean environment? as smaller tech to I like stands mean, private, in And

Harout Diramerian

Well, public square the than feet? are or companies XX% larger I either Mark think, of XXX,XXX

Mark Lammas

are that if industry XX our Yes. breakout. Or privately yes, see Nick, existence want only for held our than percentage can companies years. tech latest But less table of small a in diversification the exposure you in you have been overall

there's the where that don't size the Indeed isn't at and collect, ABR, somehow look Bay which is say overall it a is of didn't XX% our So tech indication Area is but XX% by I number any indication -- through non-collection of what has regardless we think is, while begin big of you I if judging Area portfolio. more look tech comprises how prominence one at number, Bay April exposure only our if vulnerable. only strong just you been is, collections of which would of our to tech say in that XX% with, exposure,

rent to of throughout California Area Bay size up we've it's portfolio, disproportionate further, they've non-collected the quite it, that been got midst portfolio in have paying bit a amount the the rents, a the midst a regardless the disproportionately going means early also of of happens which reliable tech but smaller to in which And this take storefront on pandemic -- terms retail, extremely they've just tenants. performed making of a really step in it amount well the of Northern is of large of and tenants

Nick Yulico

everyone. Thanks Okay.

Victor Coleman

Thanks, Nick.

Operator

with comes with Piper from question. Our Sandler. next Goldfarb Alex Please your question proceed

Alex Goldfarb

out -- morning good few And a Hey, just questions here. there.

on bunch a just of from of some basis Harout, like threw and was and and both those some of cash monthly, a perspective, Mark modeling a a it GAAP you were numbers those on sounded First, out annual.

at? impact I off sounds What rents picture we're from FFO. going the sort a you're So looking that just because that and guess big it of of actually GAAP Because for what deferring a like you're to lot recapture. we model is perspective, easiest net the that's of

impact? GAAP FFO an what's the perspective, from So

Victor Coleman

given right? chase. That's Right. you're The tools obviously cases how on of of -- And amount Yes. impact not some I the in shelter-in-place a the reset in long because for to why we've trying time because right, the you cases to will gave is reason amount amount were go. full-blown some and just the we on you FFO, -- orders we mean Right. the depend the monthly toolbox cut providing some entirely a

difference for parking between and there's non-contractual So revenue. contract -- example no in cash -- gap

a three know will given cases or we two, a a monthly four that, normalcy seeing in parking to some that's don't on So month, and why monthly restore so we've if you amount the because amount. in you're

of long reason have we a you full get believe how estimate to pandemic goes to cases, that impact can of good some for. In the a pretty year regardless

that's we slowdown balance remainder the a X.X% model a that year year. gave the end on number of studio the to in you And that's look on year's full-blown So overall the we likewise X.X% leasing of can full that why the to for your did NOI. That's and of you ahead adjustment the million. $X

So really entire are highly cash impact. And across why we end highly, time-dependent no don't just exactly we we in when gave a try of know that's we will lifted. and that's give because portfolio -- monthly forecast at can't there's all orders cases the to some the in get amount, the the shelter-in-place GAAP year. why difference and the those of NOI cases some There's you highly, you

Harout Diramerian

to to largest our office the FFO So this NOI. add way. -- of is Harout our component by just that The is

and parking to the think make blocks you estimate. those So to building point need A on all are then pretty a start piece you estimate have the there. point I make getting and an decent just to almost layer you around get you the B, have you biggest Alex studio numbers, you from to And the

giving providing but we're estimate. you not own to guidance, we're So the direct tools your build

Alex Goldfarb

Right.

X.X% studio then components? $X delayed year monthly X.X% for of the parking on the on It's point. FFO It's our a the from the of the to million for the down leasing, impact estimate are and that's revenue, that sort those the GAAP NOI So balance perspective.

Harout Diramerian

Those Yes. the That's are right. building blocks.

Alex Goldfarb

your binge switching video mean, would it space that game, Okay. to watching to like a from guys And out and studio for domain, office this guys guys seem areas. tech, new production in would to restart people of benefiting to increased should be to demand series get employees be been contrast to back But here worried Netflix or where seeing be and about subjects. have for markets I and not think three go going everyone's from you seem you other are demand waiting a probably a even the you whether are then from or you going. should start leasing. them in It from respective I would would that those stronger

the oversimplification or So the about right Are it this is it? is sort case? is way that of -- we think to

Victor Coleman

said, analysts Alex, it remember said business. can't I was briefly it somebody but studio no a farther this it's morning -- mean, the about pieces right. sort I read that something of so various from the a truth. -- negative in some not -- you're I who, could the of hey, be had absolutely negative

here. touch Some points

at the every has and is a out it's team need now for by saying, is this production production studio we right like reached company need we been The strike. space. office height -- effectively virtually demand Our space

wait start can't to And filming. They're are reads. table so, writers virtual writing. They doing

all Amazon to four their into approve They're to saying, seven out and the week now a SAG a moving -- Netflix location of is come unions going shoots. approve studio is said domestic Los already Angeles. filming said, three week, going filming. trying their and to shoots days all get days to to move to from They've are

voracious. to is be The demand going

be And may say just But, said, does I Mark after to be as the I you're not location while. mean, tell that for the L.A. fact looking me talent given at travel or to number remember will able I will obvious. one something. probably shoot, want who And, the it not guess, I I travel so was, can't a

beneficial of the pretty of And around the like, fact the we've it's so, when be good and of to others Netflix waterfall it's a it when opens looking a lockup proliferate, this indication the because are content. and to but that open, all And absolutely us. they're of going will production got out running for

where I an and them I probably content now There's it's running pushing mean I of -- interesting Korean they're content Ted this their the South to had they're of wrote first already do filming article, up think of and yesterday next. they're the Times, by in backflow they year and that's through or mirror what Sarandos half way, right through Iceland today think and that going Japan about current in in and filming to here. LA

So --

Alex Goldfarb

Victor. you, Thank Okay.

Victor Coleman

Thanks.

Operator

Capital question. Our with from KeyBanc Markets. with comes Please Mailman next question proceed Craig your

Craig Mailman

Hey, guys. Maybe just a two-parter on the studios here.

business, big of basis there. out XX maybe the on the of concerns back an very seem relative to some Just be point studio doesn't envelope, drag it which seems may the it like XXX to

the of just is were ancillary other wanted long-term work the also, would Wondering are just structured, clarify how just you from lease. I then, to way a hook? much the some with on us that there the kind So remind leases how Netflix fees of that. And tenants? Can

Victor Coleman

then sort of take we'll I'll it Craig. beginning bit, the roll So, into a and little

up yes, So, on picked cannot variability. forward. be filming, the that start But drag shoot it's think additional days unlike roughly and can lost recovered, by get when the I looked adequately they you being mentioned, rent, I the abate Harout number. which rent, as And ancillary that if is at has going

to a whether negotiated fixed shoot aspect many so amount is, other the they we or long-term have -- they year have others earning Netflix will days to pay those basically have currently out of today basically not. to days The us pay they're -- going forward. They're -- on by and where with going be a and leases, not to sort that don't paying have automatically able to they pay get They where they pay. they

We is would rent, ancillary. I we've shoots end would the typically of know loss of at said what number day. is some the on lost don't have been have but XX%. impact like always this This anyways day complete a the the annualized. ancillary So And not annualized, the is, had Mark,

Mark Lammas

And Yes. of you kind around sense and point to Victor's of a it. give just analytics take

of If you're about just looking at, a-third out, revenue that stages of require, as And through million XX shy is that production. deals and you're contractual points deals, under even see say, long-term million bit not to about if the $XX $X ancillary-driven services, NOI about a you million. they're as QX those that's production-related annualized long-term that -- tenant Victor XX $X cash are Victor the of then the numbers in studios points out, you'd -- of think, ancillary looking for of if is the under pay in revenue

that sense what of of a ancillary sitting the component the of And so, annualized contractual revenue NOI inside the amount. kind you is gives

Craig Mailman

I'm assume us just tell does not kind drag Then helpful. That's Okay. of -- assumes a schedule. seven-day million that how assuming kind you for? production that down production And the can $X of long

Mark Lammas

assurance be now we number a gives of stages you this say under to remember December that do I not have we're was going till going production update do a a of And expectations I Victor this -- it's overall production our there's on XX which the getting giving lull giving and was it when think Yes. to experiencing contractual I giving XX and super that, -- important and that us you when to here from and the contract, I you XX. think temporary number, we're revenue. we're guys end studios. guess regarding we're in

year by ramp just, ramp full quite benefit of to the we're not up going the a ton and right? you're time up quarter It's to number a going So we that that it goes, see calendar year. and see up second going It's the ramp it's and gave for first to to you the going of that bit. comes of in next the quarter

end just up all ramp year the it's in going make all to going of cut that we're of get to off a that So we're the sense, -- occurs. sizable real up. before it It's by

Harout Diramerian

clearly, more question done conservative to just your included of I'd we projections. to right. earlier on, exactly, measures. we little number, our depends of stay-at-home say. to That's like additional said, in just not a the And kind really have days production -- add We've do that, answer It we so a

revenue, if that on and catch-up ancillary come of conservative production assumption. but board, were when in So do some we they we have

Craig Mailman

helpful. That's co-working. then, just the switching Okay. to gears And

of touched or daughter of on Maxwell Sorry, my all the back. deal? Is that some potentially here. in You just that getting space ran Spotify back, it

Victor Coleman

at thought for you home working won't I long. be

Craig Mailman

on or Maxwell, -- And accounting? Or if you to space? reopen. of And then, is on enterprise, the the any non-enterprise that that into, million space? defer cash on could of care, all just that’s is that is The go the just -- the the the kind or Spotify at day that $X.X

Victor Coleman

our location Spotify, at every take just have me over period not back let very was Maxwell, where option with process. at ability that's our deal a On in it And of with we a conversations And, they're was take to period. Accenture. upon we have them It And agreed our with short that's component of March So the in we this fairly the them. time deal this. sort share level WeWork a paying on top exception of early is, yes, with the had on that rev and there. it's Maxwell,

something XX think I like it's like that. days or

whether a we or the whether Spotify with Accenture take or can make space. reconfigure we deal whether with So back and just we deal it make a

they two of through with abatement, we So did And Do negotiated are the deals a it economics? to you we want as one was have any walk only said, resolution WeWork. portfolio. very the I on. And early good within that

Harout Diramerian

Sure.

to is of switching straight-line receivable a type as based straight-line rent upon, that, initial we're terms. our result lease to adjust a required receivable over their agreement, rent different of As

we'd that So, and of -- remainder is have the space, component space impact of deal enterprise the space. It only or And take direct. one I to XX%, other doesn't that will we with. there in back believe, can that then, component be what go And small is a impacted. any

rest it So, not of us to of sure only it's the ensures to collecting make and by is isolated the the impacted this space And Maxwell. kind ability pandemic.

Craig Mailman

you. thank Great,

Victor Coleman

Craig. Thanks,

Operator

Our with Feldman America. next proceed Jamie comes Bank your question Please of with question. from

Jamie Feldman

about, change already their you longer-term about implemented, was even decided move tenants. that, what have talk to on provide? be little you're thinking bit guys with I just start they the having design more, or you they a do spaces hoping now as might conversations color you. if And changes can Any of any before you're some people in. designs working Thank can

Victor Coleman

Yeah. seems it is probably similar Jamie my listen, landlords guess us. I'm sure, they're you've been and talking to to other --

higher part, current back. giving tech even they needs, to positive relatively space give has having have specifically -- we're us want space Nobody density. tenants even layoff to that conversations, the around have the or staff all people tenants most back. their nobody's are lower And if decided conversations indicated decided the For

lesser based the the here amount is density people. think increased of the I be will upon misconception

we're some own having on conversations and working so tenants their those are And configurations.

we're that. consider prototype, specific specifically. to everybody moving We in Space architects would we work have in. going X.X back engaged space two what to one on post And design, And

think be exclusively higher been densification. the on We've at of that response already of our -- a very some obviously there's I back, a reached And Art that. with could start our to paying be going porous Gensler has we've have working thinking It we end And day, see coming out to attributes rent. retail you going by lot numbers, when about tenants interesting to people the level is to. been

tech to own tenants becomes people to come space media an will had office space, occupy office it. And and Tenants office available Art's we'd want access tenants. going an already be tech-related without from to specifically attractive, us. their if floor to say, And have into to like elevator. Ground retail have this will standpoint,

frankly was which when for And portfolio. be want space, interest said, quite we those office that the in before tenants', levels denominator lowest space our to --

that, end some we're And to think mean, on it's to you with got the Art's XX moving, I it? I last going around ever days. in of adaptability going done see want patient, it. be it's to we Art, So, of how comment at to day. terms the be deal deals in the

Art Suazo

March. done about remarks, as square at mentioned in deals feet Yeah. I our we've the No. of since We've -- beginning XXX,XXX prepared mean, of the slowdown done we

-- not have to anything change going kind plans, -- -- in floor any category, not architectural have drawing a we of going that the seen We of nature. a that back board seen redoing

about we're tenants as large think, talking and I small.

to to how I Victor be said, going don't going think wait and as a know. it's react. employees see. their They know don't literally They are

waiting so, kind And of that's what for. they're

And so, we're standing by.

Jamie Feldman

space high helpful. means employee Victor, number higher to saying kept like And just per goes the so, confirm per... density, That's you Okay.

Victor Coleman

space more people. density for, Lower less

Jamie Feldman

space More less. for

you just as about of the portfolio to just abatements does mean, And the picture tenants? do through what think credit the downturn, long-term Okay. rents those of then, working making the you you've still then, the bigger Kind X% I risk X% how given think about you're that and look of on. it like?

Victor Coleman

clarify in amount. abated. just what a let's the -- rent is portfolio very small tenants not Jamie, X% relief. two We've That's only Yeah, the just whole abated small

So Washington our -- by two law and rent relief is, in California months.

defer deals to rent, enable to so their a or deals, back, tenants are either different the they that bullet negotiated upon qualify rent. aspects. year-end by don't, them based done pay various done if is we've have some we've us But over or the And and

terms to have whether we end around said, will -- us tenant hey, keys" that the the and the "here's any not any is they So, the indication don't has at And -- in default the said, back. we have not, mean, of have that us question all intent literally day. pay I they tenant that one of or come

of about we you talked the tenants And WeWork. to two

X.X tenant based was settlement settled pure on -- in lawsuit. that the rent conjunction other The lawsuit we with the abatement a a and of gave them months' was

April. those any -- So, are And there's no indication that's that we're April talking abatement. for future the numbers

Jamie Feldman

as may concerned about are of the like this, feel portfolio, coming of out you much And quality change roll. through think And you or do you more credit rent buttoned guess, Okay. pretty everyone's I the what the up?

Victor Coleman

office, I is good paid. from mean studio XX% guys pretty XX% have that

what our to-date. So we good changes. -- of I have May. and to received about pretty we're that see comfortable tenants, May, be it feel the quality the quality we'll with, pretty is. But, been will responses of think we've our how And that portfolio

Jamie Feldman

on, know about? the I three. you throughout based been there of supply and long. then, just different story? do on the firms Valley And And any factors and around about Silicon about should very How this thoughts compare smaller downturn, you other the submarkets think act, we thinking those San kind tenants think those Francisco, be are that talked and But maybe CBD, Okay. you that Peninsula tech as haven't

Victor Coleman

marketplaces. It's on And virtually mean a I supply is coming percent all in is, the those is market anyways. Yes. question. pre-leased, limited listen, what the good XX-plus

I have pushback a as marketplace think the and Alto markets. had San is Francisco Peninsula we would very has tenants. those in thought Obviously, a the some would lot well. large secure of of more smaller from Palo I tenants have

that that break. L.A.-related I do our or said in we will didn't some don't financial-related for tenants asked relief "No the Candidly, for that you a that think people wanted pay were that asked eventually qualify those relief they that qualify" tenants who were marketplace, just ironically pay

that be something a aspects there, start that? that just be comment tenants, paid that prospect that There's don't of on to aspects of going a for But to have their basis. around ask on tenants can. work, they because, going business. should be long-term were shaming think, coming is couple back partial to There's running social to do to I they a you going Alex, when of want

Alex Vouvalides

you Jamie tech healthy. that I those I look markets, tenants mean, Yeah. think of preponderance well-capitalized still at are of the companies the the each are when large

mandated are While reoccupy take the leasing, going to how how they they think about for cities like? to them by or any there in they stock I be reconfigure really and it's space what now want of to look is on right states a can might space, slowdown the

these that grow. for go growth all we're conversation around conversations had a to is having, we Every they to think long-term how environment. plan to still companies less going these companies the they're dense is and But are the have

home, not because there's if from even another that going people accustomed to whether or So amount just grown that prove they've they are of -- and hire working didn't to And keep needing same them not can. we more. been can about should chatter space equate they the employee, if

that's going There's not where talking to that's to we're large be think the one norm. tenant they

the it's of having companies to dynamic together environments many collaborate, their companies. of creative culture the these these the about employees So thinking, and

heard heading haven't anything path. we So down that

a the going So around conversation think people footprint those still them the health feeling continuation the it markets at be for office and to capacity, less just when types exposure we think and I supply-demand particular to of have a in the of have to in dense you of bodes and well they some work our look companies. we in like companies

Jamie Feldman

Okay. Thank you.

Alex Vouvalides

Jamie. Thanks,

Operator

from your comes with with Please proceed next question. Korchman Citi. question Our Emmanuel

Emmanuel Korchman

everyone, to to the think about, the Everything capacity. density issues back so studio going think to is afternoon. take there? while It's If of, we've work, and Hi, going beyond we business, we get sort about that. far of concept heard there good are occupancy XX% a issues or,

things other certainly You doing guys that. on are if to think are stage production, about each about a sound you think stage each actors to other next beyond not next

how resume so different does And production under scenario? a occupancy

Victor Coleman

the are Well, in resuming mentioned don't is that production whether production. as I I I think correlation mean, Manny, the to any correlates think occupancy already. to around to don't think world filming in already it's there's XX% markets of XX% earlier. I or to -- they going I business I XXX% production how think XX% listen office

out or mean, they're still set. to to on going XX. a set different. XX% boom a -- already They the limit to they're two XX% won't line that zero or they're have a be is -- They're more they will outside. people food. less to this I a to which not are going have -- where roadmap already. prepackaged to They're grip would not they in have there on a of is they private set backup having security Production have a if people, have because doing are new be people It's and going optionality food not assume itself film. union going They've correlation. XX doing that. by that guys XX%, figured to going they're already the set, They're going They're filming there's have mass

going to So that. figure they're they how out do

can. filling made on that already they sets to as determination than said And set control they've going can't which still they have parameters on be by, they more location because location, I on they're the earlier,

So and to controlled environments less are going they have people. these are

How with they on how that -- how do how people dissimilar control come and or space. test and in athletes not professional they going to sports is people with private do they deal any to temperature having be potential our companies

it. They're now. and on around going It's and what that's that they're going on magic unions likes based no going talent the on based driven there's make So and of to be execute, their up rules. and to own organizations based they're doing to SAG

Emmanuel Korchman

if a total essentially to then retail your And to rental with that less becoming how office the rather layouts, the back office we with the the lighter that at Right. or and rents go deal correlate provide the head come density? expense does level the of than back to it company level, that dense has per expense be comments rental street on whether to -- maybe

Victor Coleman

our is tenants Well, -- portfolio I next and year year our light now for be have clearly. Right rolling think this that's we Hudson, to then is X% of fortunately another determined year.

So under tenants current obligations terms. have lease still their

pretty that end the for going good see, partial back It's the the tell of a are rent not last -- a as to give But But and been come fortunately that. effectiveness pretty may we most to And we sorry leases. cases -- we're to through the to to. quiet -- Going deals intimated, with on on impossible forward, the to as want the on don't may on and that have asking sheltered Art Mark much across have rent have us pretty to has to were basis now give how they said deals see we've given one-off rent on as tenants a space. mean part arise, negotiate have to and have board that that aren't done say I deal you we've earlier, around not space I in I weeks near got those any back yet. giving that the we'll few or but back before XXXX conversation. as the window basis. we -- tenants XXXX can We've

that's by -- to the that won't. we that And not way say

is wouldn't But to a Our mind. anybody single-tenant don't lose keep objective maybe want shouldn't part every to don't because -- We we we couple as is that say for lose anybody. landlord there's a the most to currently have. anybody want we I

to trying make so deal every forward going possible. as we're And

Emmanuel Korchman

me, they the that necessarily for driving And What discussions? waiting a little X% you than it one an paid? be X% whether be in for or paid it final the those haven't those you you would more they they at programs, discussions. in of deciding to whether deferred, guys maybe or bit tenants Are pay just up mentioned one haven't forms either other -- agreement are like are aid all government why with the than air of rather or are but not

Victor Coleman

is said, you you states and That's Mark to we where have and as shelter-in-place the the months have a California those are deferral. two on Washington both But in in of a in tell is going I'll under jump reality great governors I rent of earlier, and mentioned question this.

And to so some out tenants have chosen us. to reach

rent. And They respond hold not of are reach a pay they haven't contingent want don't disavow to will at just to number. tenants have a there to to of the they by they're chosen now. there's of they're obligation we that pay respond. and as have -- others. We jump gotten not to to in? just -- of to have Xst, the the they do you June They don't And not responding. have -- themselves that's And Mark, end May but law, don't out the of it

Mark Lammas

Yeah.

so routine of discussing have forth. especially their of checks for slowed right? rent little tenants, have and tenants, be been smaller lot even has Victor There on the exactly in logistically, which using just are ordinary mentioned Logistics most deferral. we're -- really may bit where process a Just cutting not of I space. down challenging what a a them with things we them mean,

as a deferral. are numbers So just moment rents even through ultimately to as those come we come Manny don't through in April process are documented largely just really provided be continue the that a time. in And speak. even to we

Emmanuel Korchman

Thanks, everyone.

Victor Coleman

Thank you.

Operator

from question. Fargo. Wells comes Blaine Please your question with next Our proceed Heck with

Blaine Heck

Victor I quarters. better talked one, updated know more you weakness how pricing studios' seeking thanks. there. price both if liquidity invest. of aggressive or your guess in of guys willingness opportunities I arise? and does capacity But, the Great, side those number later year the on and about and result affect have do thoughts a you Alex, on office the there couple debt Number potential your anticipate the questions And your as guys acquisition do this to recent be out two, to opportunities you have in share pandemic? a opportunities being

Victor Coleman

out There opportunities. question. So market end our few Blaine, somebody to are -- effectively the But listen, they're -- there. an thanks have the some is bring very unless right desperate, and day in asset that seen for At we now, not super to going opinion. of

items I we we the at transactions at the non-marketed opportunities are looking come that may may fruition or Now not going end some think marketed day. some forward, and and will see of

If will it, going as are opportunities. we game our additive to look to for going and quarters. and think several always opportunity, there's cap asset part it's I to too in of heard of been where in and me Right, parcel go we're a just we say rates I plan that's at portfolio, hopeful Alex? you've an to way early the that think our this part I because now, any like see where Blaine, impact how be forward. would has same that. and got it's fits many company, we the an think years how Right see and we are I of

Alex Vouvalides

Yeah.

there's leasing. a kind whether various in that's wait-and-see of new markets or all investment think on transactions opportunities I

for the big I is have markets been investment frozen that on debt time being. driver the essentially side think the a

can't So transact. financing people without

to there could activity hopeful to I starting it that now we be some think and starting are see come about. you're deal

studio the unique those clearly opportunities. think vertical, I are

area to to So continue I and think want an scale we grow. it's

have look. So we office the see we we'll a markets. something if Same a handful side, of that's take on compelling,

lack But no We environment something specific there's the on going accretive because opportunity and current And if long now, right a time thesis. of term, have spend it. is we're financing a to options. of

Blaine Heck

this getting That's market or Obviously, renovation was some great. quickly us right, had pandemic guys you on there plans strong extent? just of leases But success update All on Bentall can at there, very some fair. And and to recently. then does your Centre. The delay you what done pre-COVID. redevelopment plans

Victor Coleman

So listen that market now is is think still asset new I our mean leased I XX% the strong. deal. with really

extremely strong. the actually it's growth in It rent positive So X%. over of first had quarter

reconfigured, the in the will and engaged executed to to. positive design Interestingly completely given enough are Blaine has retail gone had design where our the world around We a be phase. we be which

to taking we bringing all the retail from ground and the level. the so street up sub-terrain And were to level the

But in on no still are the we're of this. basis. -- we're components building other there's a how office -- And are new -- aspects terms designing there pre-lease we're change then in we

before design getting some differently. team ways deciding I from do that. and finalizing the that, that and last configuring egress and our to then of week break architect away things entitlements On think meetings likes on ingress ground. the still with and week our had are construction We we're and we

and I'm assuming So, parcel of the to process. that's part be going

Blaine Heck

guys. Thanks, it. Got

Operator

Nikko Our Anderson proceed SMBC your from next with comes question. Securities. question Please with Rich

Rich Anderson

you, good Thank and afternoon.

go is How somewhat And about that retail away? that it is that? what in the fit talk of but could you kind a bucket? sort symbolic, XX% XX% of there risk sticky of collected, And does So, how is the that it? maybe for first perhaps question retail

Victor Coleman

that of kind got couple paid. a we have -- a We've of of and -- name had got paid. household we I Well, listen, that tenants couple of couple a banks

Ferry but is I are -- get like Rich sticky or it's really Building, Listen, it's because biggest and XX,XXX we can our retail. detail. pretty our and good. the retail those are feet seems XX,XXX something… So that of Mark Remember have pretty overall, small think exposure numbers into probably

Mark Lammas

Yes, our that's it's the like Building. of in Ferry XX% storefront

Victor Coleman

When outside. that inside-out will mean everywhere opens right. else coming outside-in. down. back those mean -- shut of tenants I to like already they're -- at But looking I Francisco people as retail that they'll opposed and is the outsource from San up, -- there. are flow completely They'll an come be

that a standpoint. big us on for be So movement that will

are amenity, to will we fairly be retail in shops paid because buildings these whether The office populate even come -- likes they going they're still start again, office component component that. the other believe customers that I When their coffee their haven't and back are. think are though retails sticky of tenants that's who the to office

for customers. they're looking like not outside it's So

related good tenants, that. feel about potentially maybe restaurants a and some may be some of there we the big the Clearly one here problematic. So of other or

Mark Lammas

retail talking think about I paid. from Rich, we're the roughly $XXX,XXX April that of rents collected

big have just a Victor So some But we out small it little gets do small a they points name unwieldy. they dissecting tenants such -- a footprint. as have relatively number relatively

branch tenant Nordstrom Nordstrom. they was institutions the one paid. down example, only they Rack have for financial have that So that Or even we breaks XX retail and And paid. top that the locations list

collected there. the hit. retail SurveyCTO. So lion's hard rents are share -- there the XX% our bigger think of collect from be as or deferred along almost traffic. -- really really, some They names -- abated with Ferry rents in operations, We pointed foot like a We the get business normal the we And cafes shops simply was brand getting tenants lot -- and so are not the that And didn't that tenants. small and as really they'll smaller then these is of I Victor it. back of so right any as pretty buildings really out were little of Building resume did the made storefront up soon -- XX%

Rich Anderson

Okay.

significant Second have point. Cinco wondering observation percentage that there's question, on it's at -- X? if that's May sense perhaps Mayo, I this on even May know but de in due only the a any I'm any we're you sense rents

Victor Coleman

know. like to know. well. It's us, looks it month until early pretty it's full -- even days just early mean way too their tracking here I look, too way in behind it's the to early But is

Rich Anderson

suburban of for in which maybe see, you'd bigger Victor your time, lastly, is Peninsula, Silicon perhaps future, happening lower some and what you about a I'm more Okay. picture, you around from Fair. from see portfolio? an real to And a all use how play found space as if easiest urban Just talk systemic then from in about Valley type long of a outtake ready in the because -- a for standpoint a of been this? even California all of going kind there -- office estate change of of of, have model lot office suburbs. that perhaps if to a curious density the thought wondering maybe there's operates for many

Victor Coleman

light from You know, marketplaces. the of it's in Rich into moving suburban too early any terms the We way that. urban see that don't to see

place obligation. -- whatever and They note move. need think time something it's going time. we take to all this is period challenging lease to I that are sort of, There's Tenants to of a I in remember that have are of for move. hard a to, think

go years. to X Our years like leases average another X for

the it are not say want today is be going demand. end leave. pick increased in And to -- assumption they're there at where up to the just the at they're going is and to easy that's try places work. day -- of comment Alex? to, So you it's make of, sort to that Tenants Do to

Alex Vouvalides

as attract for tenants I we on now to in hubs changing I as to I urban that companies down talent see this add going it to West markets retain the just talent. and have live the can think right even Yes. where still will don't wants in environment the think Coast, there. comes was those and their these still continue long offices to our And specific

employee San you're driven Peninsula Francisco already markets from a on seeing to I in in of where just San look that's think the the at lot base. down Jose based

and changes it's footprint as to where to the any And going about to are near far work. be in So, see term think we as the market-by-market geographic lives where these shift talent I companies be. wants the going don't still of

Rich Anderson

packages extensions these a you're And any one. real lease that then being Are providing? Okay. deferral quick there into negotiated

Victor Coleman

In of part that were expirations. mean matter that had did into we became and leases extensions. the way looking look to some a kind of ongoing do I with we look the at -- of cases, near-term we discussion any of at relatively inbounds ultimately as And yes. near-term fell collections that sort expiration tenant that it

Rich Anderson

Okay. very much. Great. Thanks

Victor Coleman

Thanks, Rich.

Operator

from question. comes Omotayo with proceed next Please Mizuho. with Okusanya your question Our

Omotayo Okusanya

Yes. Good afternoon.

quick from me. ones Just two

and two. commentary sense what the of studio you to the how you the quarter know -- you business Harlow I given shaping the a can unfold next going about positive give had how curious Just strategy. us just business multi-tenant lease-up is around that But over just or you a talked up? of expect media to

Victor Coleman

question. great a that's Well,

to We got city. -- just signed we get -- it's So think The stuff the signing actually I Harlow get in prepared cities remarks. it we stuff DWP was just off. been challenging off. done sign-offs during have in and our positive this And on time very

operational fully we're and So up now.

will be one actually has it we group we consistent this that's still before whole before moving seen January. touring. tours. have tenant a thing. virtually changed the Hopefully, in amount And pandemic, of the back brokerage at just are multi-tenants. flat looking Art We into changed our we We

You want it? on to comment

Art Suazo

No. Yes.

So it's making that kind same really is still discussed needs once things their us this is as we they're and evaluating the feel tenants. -- behind that accelerate. what of good Obviously, we this safe

Omotayo Okusanya

Prop to Okay. - on also in That's rumblings ground? point new this any commentary then any of that kind regards at will the XX helpful. And

Victor Coleman

to the of, been, sort get to put XX listen Well, on has rule I'm the the on try assuming ballot. that still Prop back going burner. it's

approved. get it everybody day. for at of But to very end challenging think position think going I our the the knows to be I it's

believe a the call up John and as our consistently think made where don't seeing it are. Jordan made peers and the you I whether Kilroy go today and comment, believe we're real last same mean comment, I I As Emmett and prices I estate was values

paying readjusted going the that's XX this that the less. in ago on taxes that NAV made mean has time to And I they will comment everybody to Prop were get is down. and to that that to through where we some call concurrent. went That our would virtually at levels there be currently be going if our But money they're going

not And about over see at see concerned There's time. the outcome this opposition group We'll what of we're it. around said, capital the that happens has around battle massive months so we'll has been I the There's But as what a formed that in been Prop summer happens. raised. XX. terms

Omotayo Okusanya

Great. luck. of Best Thank you.

Victor Coleman

Thank you.

Operator

line Citi. with of Our next the Emmanuel comes Korchman your from question question. proceed Please with

Victor Coleman

already think you … I

Michael Bilerman

now Michael it's Well, Bilerman.

well, the -- is Manny on So phone.

to few guys you had Hope If wanted it him can, questions afternoon. ask you want follow-up I but you to I are a well. on. Good

you last and I Victor though the in out to the of shares So where come I pandemic levels. clearly, are a frustrated level pretty down pre-COVID. were and know, it like terms in quarter. of the late early trading think had this you buyback to look I the post didn't or year. still to in low where guess, anything quarter even break it there terms was has finally frustration And whether stock part -- had been just year caused I done stock this of with started know

why the use capacity any are to not buy of you thinking back, how that? So about or

Victor Coleman

the to out. where until point, got back did. we blacked up started So we where couldn't, buy we We

down is we of got be did. that $XX a to think – answer definitely may end we Listen, at the the So about And we're I day. levels the we XX interested share like million. in

don't it out. Mark and know get price to average you So probably to but will is as it guys buying back He's is. what back we were our I what calculated

excited in were know. clearly back first But – at we of yes, were the those a early did. I were a there was But little about was back bit buying don't were of answer there process. And we if markets you stock we is backlash and one stock the – our about but this were we There obviously we buying company's know we the levels. on as public

Michael Bilerman

the go transaction stock. you back the into you the can relationship And have then the on EOP talk to you then coming big Obviously, about portfolio with Blackstone?

on They've And early venture did little the Can I asset. been the out there stock Building you or they then XXXX. Vancouver opportunities as either I them Ferry bought you got work with did the think there future are the market. with out was – to joint of think talking a it them talk about about bit into going purchases? a public whether you you for for the stockholder

Victor Coleman

JV had conversations them level think and both year with assets so. our structure are that others and we it's and Those multiple assets the I on as public level Listen assets that consistent opportunities market think look asset new last for both I or over would there's we've with as the to stock. the conversations around the well

an company. attractive We're

excellent opportunities be assets. performing will confident forward. have going the such and will Hudson positive that be that I'm a that's got phenomenal management well for We've team We

Michael Bilerman

there stake? rents to opportunity of table liquidity you're Macerich buy the them an today Is amount One to On of a have you is on side. – remaining the the to fortunate they out collected that the Westside, need on retail that provide the have that

extraordinarily You can imagine on the mall side less. it's

that potential execute you can on? near-term a that transaction is So

Victor Coleman

would us little opportunity two-year both lockout a a there had that have venture year. piece not will their sides that buy anybody I'm a on. in been get. over else we've for to it's But for out. a with So agree at them can that an We right that the assuming to be time piece

based would opportunity. frame be time on the So and desire

Michael Bilerman

Last needs down of for capital one that of for just there me. near caution, XXX added The in were term? abundance that was the line the other or dry

Victor Coleman

and we is, I'm have No need allocated are because down where what guess abundance sources collections already market XXX% cash ample month, high assuming for that line our we Harlow past given imminently were to rent for now. my so pay caution. of that anyways going probably And our this right

Michael Bilerman

Thanks. I appreciate the time. Great.

Victor Coleman

Thanks. Jump in back in

Operator

to question-and-answer like At Victor turn the the over to the closing for reached have I'd comments. end session. of call this We time Coleman

Victor Coleman

Hudson we quarter. this forward I you quarter and the And look at as appreciate your participation. to everybody's well of support throughout for updating as end the

Operator

conference. concludes This today's

you You participation. thank for may disconnect lines your your and

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