Alexander's (ALX) 12 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Cathy Creswell	Director, Investor Relations
Steven Roth	Chairman & Chief Executive Officer
Michael Franco	President
David Greenbaum	Vice Chairman
Haim Chera	Executive Vice President & Head, Retail
Glen Weiss	Executive Vice President Office, Leasing & Co-Head, Real Estate
Joseph Macnow	Executive Vice President, Chief Financial Officer & Chief Administrative Officer
James Feldman	Bank of America Merrill Lynch
Michael Bilerman	Citi
Piljung Kim	BMO Capital Markets
Alexander Goldfarb	Piper Sandler
John Guinee	Stifel
Manny Korchman	Citi
Steve Sakwa	Evercore ISI

Call transcript

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Operator

Good morning, and welcome to the Vornado Realty Trust First Quarter 2020 Earnings Call. My name is Sidney, and I will be your operator for today's call. This call is being recorded for replay purposes. [Operator Instructions] I will now turn the call over to Ms. Cathy Creswell, Director of Investor Relations. ahead. go Please

Cathy Creswell

the to package Yesterday Welcome release Trust's quarter www.vno.com, our Investor XX-Q first filed documents the Commission. Thank well under available as we Vornado on issued call. as with Form on afternoon, quarterly financial earnings section. and our earnings Exchange our These information you. supplemental report Realty Securities are first Relations and website, quarter our

Exchange on variety ended these refer XXXX supplement. XX-Q non-GAAP deemed and risks, in factors. other documents we today's statements to financial comparable Securities filings forward-looking our report Please differ measures. on directly quarter uncertainties during and made the for year the of including for information to Form the report Form to ended with be December these statements. our our March XX-Q of for actual XX-K included Please and certain these In quarterly call more Commission, a results may and annual may date. statements that and as will our XX, accurate that does call may of GAAP time-sensitive forward-looking regarding XX, Reconciliations be only The risks and financial be statements, these company call, today's measures release, are materially The update most the discuss and may measures XXXX during aware from this to any include not uncertainties. due information Form earnings

And team on available comments Executive and Chairman Chief and call today Officer; senior for are our from is President. Steven Franco, the management Roth, call questions. opening On for the Michael and our

turn Steven over to Roth. now will call the I

Steven Roth

morning, Cathy, everyone. Thank good and you,

COVID-XX of ask friend, including of are hurting, for pandemic, Stanley dear lost we the ourselves Haim's this is during a know honor now the and is businesses shutdown, people moment Before future in that father a we are as beloved my uncertain. have begin, almost it and been before lives upside in situation. silence We Life down, hurting, total find Chera. never I

our of blue, care our as and our and In we projection employees, Crown on strict are as Square of following pray courage health the admire commend health and all, and measures flying providers. Vornado, Avenue, tenants now honor, the At also of scrubs sign block-long the we and our our talent Tower, and taking our first their is communities. to for all Lexington is safety Bloomberg and priority, We protect our XXX Times protocols the theMART. light

keeping doing is entire remotely and on the thanks. organization Our remarkable and a time. working have job trains They running our

in buildings industry. some and a office remain already open, to Building less giving rightsized census X%. a All closed, operating lethal is with blow but sanitized essential Our currently is retail safe staff. challenged than an

taken the steps We reduce following have expenses preserve to and operating cash.

We temporary of and the have which owned services corporate placed BMS, staff. to engineering properties; at furlough, including X,XXX employees XXX provides Hotel cleaning, X,XXX our employees and on wholly employees of Pennsylvania our security XXX subsidiary, our

tune the million. of projects $XXX deferred have We to certain capital

cash Trustees there, for of my with We salary, Pennsylvania reduction have their portions our remainder of X, scaling the XX% Hotel Board April forgo closed and the will base beginning their retainers. of of XXXX, Effective down temporarily. annual year, each officers waive executive from member our annual the and

affects of see as about COVID-XX this business. let's parts. it our in it situation a talk the math Now, little I three

and signage from closed; Hotel party a Pennsylvania reduced we from: reduction canceled X, being one, X, X, rentals. average from revenue First, third cleaning the our $X income expect services; reduced spot trade income theMART's X, shows; million BMS garages; monthly reduced

all only X% normal. of upon fixed these levels price revenue, All will and to to leases. businesses depending opposed as our activity of variable represent economic rebound returns these businesses They when to overall prior are life of

lease an of all revenue with X.X rental year, eight supported total office annual $XXX years. due term This X,XXX over per leases is term is our rent over billion leases by Second, stream years tenants over of from an lease month. retail $X.X and with million average average XXX or

we rent is collected normal, As have from January March. all virtually through due

is For of retail the creditworthy and tenants. rents due a office the April, almost Interestingly, we of unpaid rents or XX%. of collected retail XX% coincidentally office XX% and of unpaid rents, rents, combined X/X from

balance a become we our rents April, of calculated our almost in at receivable in which million, have XX% that's a to uncollected effect, loan and million, $XX will So sheet, on $XXX times tenants.

tenant We have yet from of protecting not tenants debts, paid rent. April's who $XX deposits $XXX is have security bad of which million million

would discussion our almost are you of with imagine, we every As in tenants. one

rents, the We of four that first office the of days of of we collect most are of ultimately further days April. receivable. By which we slightly very confident retail first is way will information for ahead have collected of this XX% four and May,

Here's they around be what entire for, the XX hope of an to XX-month might it a than that, onetime would earnings that shorter variable a bad per I of the not mentioned from first gain cost punchline credit total two security as give and say, valuation. rate educated businesses does be plus and debts April's This our $X year, If points deposits. were continue share, from any will the for for run to months. be guesses is cost my surely or affect we

be building And issue estimate what What valuation. when my rents like third world will We our of will guesstimate and each has affecting larger the billion. passes? stock demand, be voted bankruptcy. tenants not tenants point taking our will by the tenant is how or $XX many survive and The retail How or price seek stock many $X down will COVID-XX market values.

exaggeration. I this gross think a is

current and facilities. restricted including credit undrawn cash billion $X.XX cash Our is billion $X.X $X.X and billion $X.X billion, revolving liquidity of our under almost

this million XXX $XXX from the May receive Central to year. Park balance from scheduled closings are we addition, South In of through

liquidity really might $X is over our billion. So say you

the We our the proceeds York, These million. plans of anywhere. projects be remain of closed restrictions. through is project of albeit construction a units District, in where and we Penn District our point since to pace capital crisis heat at cutting-edge, epicenter Interestingly, mid-March slower $XXX center five are PENNX Each unmatched new PENNX. for for we New amenities for Farley, and of will the committed services Penn to scheduled tenants delivering April, due the and as the net vision, government-mandated next-generation and progressing, somewhat redevelopment

the XXX closings. Central sheet are Penn Vornado upside. we keep shareholders no No As joint these Park proceeds projects District debt-free ventures, off XXX% and being are aforementioned debt, said from South from have large funded three and the our before, and of balance

storm to flourish the passes. and We have Vornado built as to importantly it weather

We have management cycle-tested a team.

pushing laser-focused aggregating always and our billion, over selling $XX sheet tech spending pushing aggressively from are We buybacks. acquisitions and balance liquidity on been stock and away assets, in top have and years away recent from

all go, surely a to next cycles time sell. is it better buy The for be to of a now few investors. than sudden, great should As advantages years

you the say bell. So, I ringing might am

for time we too. rewards. passage for five years, patience, you for invest you. even three and a Buying we thought do not get of but is and outsized hope returns, and quarterly and Here We right X, the

financial I'll results. first now it to over Franco turn Michael for quarter our

Michael Franco

and good Steve, and you're all everyone. healthy. safe I hope you, morning, Thank

As was year's per $X.XX for compared we first our as expected, $X.XX adjusted, quarter. FFO, share quarter to first last

cancellation office quarter postponement trade resulting excluding was First the positive of same-store XX.X% basis X.X%, York was down was California down X.X%. but and X% performance follows; and theMART as the street from was cash NOI New shows was retail to trade XXX Street due up shows, up X.X%. pandemic,

we feet space at rent New of at of a York office at foot. per quarter leased square XXX,XXX very XX.X% healthy office occupancy In $XX.XX the square stood end. quarter, initial

affected expansion Citadel positive to The one been respectively, by have and mark-to-markets for space second-generation short-term and line development GAAP years. a as that X.X%, Avenue and in three GAAP would X.X% at cash cash we Without mark-to-markets were ground-up positive and the negative XX.X%, and start X.X% respectively. a Park lease, building with XXX renewal potential up on this negatively

leased of respectively, an New York XX.X% stood and Square. XXX.X% end. foot. GAAP by The positive quarter, retail at occupancy Sephora square our lease space Retail rent square were driven we XX,XXX the XXX.X%, and per In of mark-to-markets and initial Union $XXX.XX cash at quarter feet with

feet. at GAAP and California was end. $XX.XX The per initial XX.X%, PayPal $XXX foot at are respectively. mark-to-markets XXX,XXX we the end. cash leased occupancy respectively. with leased and XX.X% feet unit of theMART, of at an quarter X.X%, a quarter for Street, XX.X% renewal we square rent the square In negative initial an and mark-to-markets we XXX foot In at positive X.X% per square with occupancy GAAP XX.X% rent At At small important including long-term XXX,XXX square square X,XXX quarter, at quarter, of an and were cash full foot,

As to York leases that amount office progress were They pre million are forward. our square COVID-XX moving X.X in New to already feet. pipeline,

million non-comparable fund the Central write-downs South, gain on $XX.X Our first real million accounting from of of the credit a at and our consisted receivable from of after-tax at $XX.X $X.X Park primarily resulting by standard. closings on net of GAAP offset estate CECL new XXX quarter unit items partially million losses loans share adoption

partnership loans provided money $XX a to of purchase loans We in two XXXX. totaling facilitate loan three have sale receivable million, consisting and mezz a

book. loan no have We

Steve back our to wrap to up Now, remarks. opening

Steven Roth

Thanks, Michael.

in leasing New a slowed just about has trickle. and York New activity everywhere to

generate COVID-XX very and year, to there, earnings a us. actually must income These look be will I and side. accretive other this. year end will we But Farley generating large will will quite to When optimistic. a get coming challenging, be or date. PENNX for the have an so will be we lost life. of Next PENNX tragic am

York of will expiries for $XX. X.X of growth. and only rent the next or an average weighted our portfolio, to per of trend a square at X% office for both years three million average our only New Amounting the well for three only year expiring XX% years stability Further, feet

days We XXX% declared $X.XX Now, quarterly dividend A a our out pay of common our regular a our at least May share Board about XX. of income. payable per taxable word dividend. on few ago,

paid this amounting year, have we X far So quarterly dividends $XXX to XX million.

economic quarter fed expect our this conditions time and year. intention, We to telegraphing will, our then based must, we upon at reevaluate and dividend our taxable we exceed estimate fourth that any income. Without as financial third and dividend of do

for Here you, actually some for final York. a are thoughts plug New

headquarters, now and message. a of center world's best large believe growing and Broadway, New Its all eight continue York, concerts, teams, it Hall, Lincoln workforce, in to has museums, and Carnegie great and to great restaurants offer. and the highly Center, the the media center; world's educated We universities, banking get sports Fortune professional XXX concentration course, of tech hospitals the nightlife, largest center, the you and

New world, New and human business and capital York has better and New every infrastructure always York's of is bigger unparalleled, the is York crisis. from back the come

from we socialization working that trend ticket. believe While office property and social trend do Also cautious will now now couple is victim has values. the home for of collaboration believe of the the office next I years. respectful a of are not winning In from become working demand the traditional we of home, the densification are The and will bottomed, distancing. and we the of impair situation lots severity including of sum, things the current and

optimistic prospects. that business actually about and after are Vornado's excited We

forward as return to look to we Lastly, our tenants buildings. they our welcoming

well our at and Vogel leaders our teams tenants, of to Our our hard team work protocols staff. as ensure preparing here. Gaston are as Silva Lisa safety health the their are visitors operations and

With to happy that, operator, questions. take we're

Operator

first of from Instructions] Jamie with America. Bank comes [Operator question Our Feldman

is line open. Your

James Feldman

you're it and morning. talk finally go on you troubled the think that the in want landscape you I to good to thank comment start good might bell, And back availability you ringing how time thoughts Can you fund to to like Steve, Great, see, of sheets also expect be terms and competitors? might about big buying. your a through capital acquisitions? what looks what balance to your

Steven Roth

competitors about do by what understand you didn't meant and mean what that? you I competitive

James Feldman

opportunities. of might Well, some types just where distress you see in

Steven Roth

has in is very do prices, well of us world economies there. our the amount that in there a at before prices change obviously, may fair from cycle expect, opportunity Look, sea and change the distress global sea is prices, been actually, a buy there we of alert. the can and it's and uptick disruption already fair a can even good away okay? we the maybe we we out and I'd very say to give So antenna push see this

have our And high We financial radar the stream. on that are and about the of very We very feel actually prospects we growing expanding partake. capacity enthusiastic externally. it's to

potential I are going team But environment the to forward. we're can anxious management can't going a in. perceived years. say predict way, different we it's I have a we going to can't number about invest the So four last is this that I what totally where by for go. of the predict And as opportunities three, than

James Feldman

you just for then, how seems just you you Penn balance a needs It how there, redevelopment? the and sheet, when several the over there's And keep to think your Okay. much years, Plaza about use think think about do there's I liquidity different and fund? would of big to like out you want about funding, you'd the how if lot what next long-term do mean, opportunities

Steven Roth

is shape. The answer in think our very sheet good is, we balance

already, think we number have funded We that internal have the we to think of requirements of our next years the capital And markets. all fully different access and we are capacity. for phases capital

Michael Franco

we add we look, as said, capital out the I constantly just have have already and this seeking many soon with as we crisis But hits. Jamie, we've partners do Steve opportunities significant reached things identified us, capital, as internally. have would also that, for to

capital opportunities, are do we ourselves the have We're avail we're going confident balance there large sheet. if their to to to beyond So capital want so. of

James Feldman

And the at outside look metro York then, or consider of you retail office? things only City would region? you Would New

Steven Roth

our value. We're down going set. for for road going that right not to to the to look middle down and is of we're the value to the look We're going skill

to We're the going our four and skills in to to how we're know company. in we're invest So to it's in necessarily invest and it and corners Argentina, not are, have steel going Manhattan. what of what be not If going know do. we a in we doesn't

James Feldman

Okay, all right, thank you.

Steven Roth

Thank you.

Operator

line Manny And from Korchman our with of comes Citi. next question the

Your line is open.

Michael Bilerman

to five gross investing Haim billion, do you to terms partners' growth either the driven of line the in capital being deals you your the And condolences family. down the Bilerman. some you stock how assets? in buying out Steve, market a versus talk exaggeration new my your Michael interest capital his and terms think or of stock of as of venture It's and new $XX, about in about being the up external own company, in putting stock

Steven Roth

are How by are way? the Where you? you,

Michael Bilerman

We Upstate are at New York.

Steven Roth

a back recurring believe the with it capital insignificant actually of we what sap of wealth and our investing will capacity. by stock similar again, that since company's can very to question, and Stay thinking can the creation And I stock, my different the And safe. first transparent make our I to again of do our thinking to that been in do think continuously don't in of that, very Look, capital buyback I've relation NAV a have to chunk think. have is that amount We situations. buying a earnings in been accretion and that this we recurring, that you. we old all, if clear about amount we back we is in is we buy don't

stock. publicly, and and Two that in example, commit published might we that additional multiple back to we it. NAV we which based the returns even think might exceeds upon we that a earn Penn this buying For create said we on have accretive by that our I make Penn capital we've or expect to which One The

talk away many we're $XX pleased not quarterly look number about right the the we recommendations board back mindless by and on that people are we continuously. we And not higher. stocks we that it So buy now, And our at meeting. actually from of of every parade. that's stock pushed not our hit it our way, one We at

Michael Bilerman

Going may it investors you centric diversification think can perspective was maybe centric. we York diversification sort different a basically the growth before what where it And don't to where in company own New choices before, it invest. remember of that's was of said, maybe the companies, And are. last or you by I being don't we I talked in know about of company addressing you terms that, York the letter, New if a buying make their from external was year year year's a the

wouldn't so, I I from four not why the for to perspective confined of you corners further and elsewhere. guess, why looking be your guess York, of And value be New and go present

Steven Roth

company. We New York are a

plenty tried-and-true are New the that. York We say, of would in York. even have doubt skill we and a York New One is New about York. set New company. of operator, are There there no We opportunity in think enormous best any opportunities

have invest and and Having preclude we priority said know not first, our we will a where powerful third we will know what other in we things. and be to franchise. that, where So second

So were better a part different. New doing of a in long go and shopping billion the by Jersey-centric the you time $XX sailing and back if centers, made we across that's company ago, strip we river something

are So, company. we a absolutely New York-centric

and number would invest New York. for breathtaking low, three Our extraordinary priorities one, The may and be prospects we that and one. there it of are only is outside two York be opportunity, an absolutely New will

Michael Bilerman

Will you. re-queue. Thank

Steven Roth

Thanks, Michael.

Operator

Thank following comes the question Capital of you. our from Markets. John And with line Kim BMO

Your open. line is

Piljung Kim

you think, includes to I'm mentioned And slowed Farley? trickle. leasing that that any at Plaza leasing wondering Penn if and Steve, has a activity I

Steven Roth

this an our would time disruptive, everybody, as customers. paralyzing extremely confusing, and expect, including So for is our you tenants

including period, have Our be it our shut thriving those including are revenue they the financial is are our the no that are, clients of broad basically into ramifications There long ramifications. in into visibility and others no tenants are and fall basically customers that FAANG. to going where have they down, how this There other two are what categories. and

in the past. Plaza. We've two getting about So big basically, that to in leases talked area now Penn

with is Two tenant block building for incumbent to devoted who them that and a has space basically of reasons. and Penn for large is forever been of at an obvious One

absolutely They business we've I for and going aggressively large and away, basically are sympathetic been maybe open rumored in almost are has and conversation that be understandable, to pause been complete. and waiting Glenn to even but which and is pause. is that with another David going their There's forward in tenant Not in hopefully up, that. dialogue with that

Piljung Kim

Are either are your What on of those co-working? tenants views co-working?

Steven Roth

No, no.

no. sure, For

Piljung Kim

to the has table. recover about services. this I It just the are off half Of parking just second revenue of more? of the like one expect do ask retail sounds But that nonoffice how cleaning I'm in and shows you trade Can the of been impacted, year? and hotels, X% much wondering

Steven Roth

call Well, I returning. you will mean, no have cleaning crews trade full The The crew probably but with them basically, definitely those sense. same The missed rebound That year the up all and to tenancies business, of variable this shows this businesses all is and will a period, we'll be that rebound. buildings. year. a next upon that, X% that will can't was are census, cleaning will of I less as the shortly revenues after from than based But the makes thing. There return be will garages, in back a the what where this it ramp-up pick open.

Piljung Kim

you. Thank

Steven Roth

Thanks.

Operator

Thank you.

line Piper question the from Sandler Our O'Neill. with of come next will Goldfarb Alexander

open. is line Your

Alexander Goldfarb

you family. Condolences upfront. for Haim Michael it. And Bilerman's and Steve, Echoing the comments. addressing to Appreciate dividend his thank then,

So two for questions you.

happy hear first, about The to XXX...

Steven Roth

I you hope on I dividend. clear the Alex, think was

Alexander Goldfarb

unambiguous. were you Yes,

You were clear.

about considering to it. guys Park, are that good hear you obviously, one, So XXX

the has preferred. broadly sheet, side, also balance Central $X comments of retail of press South, disrupt street that which thinking release guys you potential closings. your about billion the one delays in could been about On the the XXX the with then Park And capital for hallmarks

as not it liquidity means thought it something of there that billion $X was So that's street preferred the $X year, that source the risk Or was. but may could XXX; thought the less it is that you think funding retail, the last guys one, impaired? billion be liquidity not on about originally somehow than, of projects, is we risk that, a which we for that on these second, be and

Steven Roth

Thanks, Alex.

on middle First March, pandemic, actually on of communicate you careful for since $XXX closed the I notwithstanding XXX, schedule to we the to million. was that pretty units five all

and do that, certain of the So are year, of closings neighborhood the little $XXX from somewhere scheduled will per only we expect have those fact, punch XX million, The minor the schedule. come apartment. in is maybe wrinkle days in not view, we work more even a to off that the we in we apartments, than that that of construction in on for remainder point finish list

those And work apartments going so right governmental-mandated come pretty soon. stoppages, because but now, we don't to have that's back to of access

all will of part So give will and those schedule approximately occur million we closings of us are $XXX-odd confident very that this the year. on better

we our our With or of think of to I have is $X.X preferred, respect a opportunities used that any whatever. in billion, never public ambitions private which source investment the as or capital retail in for or

you So preferred, probably, books, $X.X we it, tax-driven as And asset looked year will a on an upon sell just structured were which quite we that was this I billion we to tax. have ago. of don't our that remember now think deal that XXX% that if generate a triggers did highly a

So, liquid books. an It's on asset on our basically, books. asset it's our a

our plans it We in or augment in to our use have sell had never never plans to we have it capital. for our

Alexander Goldfarb

telling key to tenants, buildings transit? is are you, employees? it New their thing York? can before solve we the it York's What get Is crucial their New question. of what are your employees PPE conversations it issues start for saying with sort into obviously, have that mass solving from the second reopen need what are for is then, that providing and the they initial these office? items harder Steve, And Is to back tenants to hit, we reopen them

Steven Roth

Glenn for David. something like sounds that And and Alex. question, good a That's

David Greenbaum

Alex, physical David. a is a and this that everybody think psychological issue. I Listen, recognizes good morning, it's

initially gradual XX% over XX% time. major shutdown anticipating to range, during reopen, ramping you to up world think to begins speak process, building as as tenants the the a the Tenants to very as process. be I return So continued it's a going in we our are have to

earlier talked about about garages. talked think I we you

People initially, are we're going up, walking are open transit. using be seeing be work. or bicycling going mass fewer to people to we driving in. to And going work driving think think work, be when either to I to I most to people

process to some So a it time. going going that's take is to be

a this But process as anxious are acclimated it's become unfolding, phone, else I to all hopeful as about we gradual be back work, coming see we we people the that to get don't going are going. to but on know which everybody all,

Steven Roth

Alex, have look, this an end date. will

pandemic COVID end crisis the will date. have an So

the therapeutic Now end date and even will a be when maybe a there is vaccine.

So from as all. infected, problem, be is it you and treat I scientist get will therapeutic if there at still of a be, understand infection going disrupted, vaccine to a disrupted, you to XX back are hopefully will be hours a there But it, will to solution there we day some regular risk when In just is be be medical disrupted. world going a at baseball finite will medical on getting in subways is between, there this prevents working every the and is period. crawl the regular and still behavior behavior

happen, I back like to of know rubber some very So a quickly we in predict going that I to do revert what's normal. back finite can't time, will band period but

Alexander Goldfarb

is to the not having a train A.M. certainly Well, take X:XX help.

at Anyway, is, there. listen. least there So something there's

Steven Roth

to continue you're it, take work home. I to going from that, by So

Alexander Goldfarb

will town, but efficient. yes, David me more It on it's efficient. It and much much the be same is more

Operator

the from Guinee comes with Stifel. of question John next our And line you. Thank

Your line open. is

John Guinee

I Manhattan to of them opportunity hear about selling of about congratulate you thought on about And there people. the on both execution and ago. very of Is demolish later? Pennsylvania page sad a or and been want of Mall, time. over just furlough a X,XXX the XX% Hotel for the using decommission Thinking this First, your retail to know year long I any those brilliant a sooner redevelopment to them have to

Steven Roth

furlough all, the about on under was that facts comments in terms PPP by everybody the getting for furloughing. unemployment Federal almost is The the the same of matter of of than or more new thanks wages the maybe are First your before. insurance, program, list augmented even the

a sensitivity this and our with this to and not employee anybody. for hurt did we of So deal done great was group, care

thought would where In fact, list off we the that people be we programs. by government able to get cut furlough the recompensed not

carefully So but feeling this folks. you your we for care thank our sympathies, very a and with deal I did for of great

enigma in went parking for a The it for Hotel an the Pennsylvania obviously lot has the a We've down development pandemic rates closed digits. teens, because low time. It's to long site. occupancy been a single

So uneconomic. it was

We have I and it. using never happen, might thought about reopening just this it. internally And doubt but that

that's Manhattan building. in two it, floors components on is performing a mediocre Mall, is which with And retail Manhattan fully a and really then Mall building So is The is X. it top step the of one well. there to large There a a office building let couple of below it.

because above. down of shut you you can't up building the the it demolish office really could really but you can't So retail,

the and development first the backs mall you Hotel in to Manhattan So Pennsylvania. know, way, our plans, the the by as up

more square four of So would three support million that's giant one giant, feet, even million, that block maybe development.

Manhattan future Pennsylvania in and is going go the the So Hotel some wall is future. way, way first the to the that's date, at

John Guinee

a New in Second the Bloomberg New But of last everybody I believer York. of is York question, number big name Giuliani think you resiliency of there. the by the had has the mayors issues and had,

you how that the New Now that of about incredibly political current resiliency York? you've changes? or hurts different political talk Can environment, And helps that environment. got an how

Steven Roth

this think a a obviously. we about good that's question. lot, John, And

things New Francisco etc. estate is has, in is York issues, that issues a leaning, each For real point which political country In is best a San homeless orientation, leaning, San right situation Francisco. that, and like city leadership political homeless all extremely the the left New the It's is political the left which worse York. further other now liberal and is than worse,

not important, situation political depository. the is It's not but So definitive. it's

New resilience and extraordinary, believe we of in think etcetera, we world, infrastructure, the New resilience. So York's business in best human is will continue. the infrastructure infrastructure, we think finance, We cultural its York's and in do terms infrastructure,

his I'm but Bloomberg, landlord, so that's Mr. happen. I'd other not know well. to back, love get very to get each love going would I him to we

John Guinee

thank you. Great,

Operator

you. Thank the [ph]. Malhotra comes next Vikram from our And question line of

open. Your is line

Unidentified Analyst

condolences said My York safe. is of family maybe and addressed South and But everyone hope to this Haim's sort I prior Yards West, know I given questions. as in that many sort of was well developments. and ago just moving New you've else other to Steve, higher-level well. Hudson question. years you a

to what market, what were do high-level a that office could you be? of would maybe view home sort from If the just have New more to broadly, or of work York

Steven Roth

about that question. a very all think the We It's important time.

fact, couple end gave sentences I the In of prepared question a remarks. that my at of

way I by talked now all this we the I we've even of see be experienced the At mean to So the talked we margin, way, that the our it. tenants, there here's will our and into all at Alex, very home. a to are employees, office. prefer dying of I small guess to the which that majority, get home Most to working out people there's includes of be at

home that be are see and save So only the from where from of upon you guess, commute. can difference the important who could you I in live, an is isolation. that that depending working And is the benefit home, you're thing. working And you I

in the of collegiality, ticket the interaction, terms the other winning in socialism the creativity, But wins all in regard. the office is the regards, sociality, every

you ambitious and to getting are ahead. get ahead If you're not work home, from and want you

all are ahead. you you're get then colleagues, with you in can the If performing your office of and

it's of in work in and an from have been all contact leader and home, team them, a work almost impossible job. people, you a of all you can't they If are they with

this there's it reaches at an for reaches they upper controlling it's relation of enormous to the little we to your in lasted a is This the to they mean trends, will bit X,XXX all crisis, At will wanted nobody the office. that will dangerous. pass. reaction now there was traditional And in space I buildings and we controlling, the margin, The years, the so only to the go benefits there happen kind terms in it of the So trend; of the space the space X/XX of find, work employees valuable be continue. most find traditional rent is nick. a because home and of upper incremental that's was are time then buildings; number of back. like

justification continue but people have their At let's some spend payer in pajamas average to That continue running the a again, who and payer XXX is in going office whatever for The the pricing. went XXX feet that certain from that. feet. to, think example, maybe I trying their and like was know, think XX went to I the values. is it densification. to I the now REIT, home, something to in work don't about that densification don't nor for it feet, the that's WeWork, down are to buildings kids from the densification or margin, trend day And it mean, around, their a demand for to level want didn't macro a there take to work.

that's where anyway, I am. So

the think office ticket. I is right the

Unidentified Analyst

where of over rents what Haim, thoughts near-term distancing, sort you kind maybe again, holding and core meaning of result on sort the street Can sort up of power, a any That your thoughts upper the long-term pricing of makes for could on given us over core penetration Madison, sense. taking social retail, sort as then shake higher in e-commerce just out sort give of this. the your these on fifth of of, etcetera, And on - markets? very rents markets, specifically,

Steven Roth

around. made Vikram, The I country decline perverse secret. are that's everybody are. got the go said and Look, many and give I don't with at there you retail this problems be. we huge ago written secular written to that two another a I a in get important feet call you two five there should maybe times us. laughed and And that ago, have to we years good space as there years the retail. retail here as question. or thing, most which three of want on are to remember, early of I'll six I have is square any to have the is

I think, less be capita, math, should square XX. So think do the the I like number there's I per feet or than as XX

it So XX don't space excess - off I evaporate. work and then, would that years for take, to and I said know, that

pandemic us to and into perverse a much alignment this is way, in So get more going quickly. maybe

down to they very you the are tell over it's retail the give for in the short-term can't happen to dead, So are I injured. we'll only that is you that can and think I they to math physical think rents. outlook store really don't see. certainly I short-term. that negative I going do the what's to and they're have retail as I a but going rents

think great adjustment I medium-term, be for some the will there property. Over

in the get I great will be you. Haim Haim, ever will And tell to on that ago there fifth three we think will property pricing demand. years peak I always was Avenue? think

Haim Chera

believe don't so. I

Steven Roth

And that our is firm view.

Unidentified Analyst

Okay.

seems is Can retail? we clarify, clarification; parking up office, strong Or etcetera? you last XX% average May. could just and that retail, are where rent pretty office the collection across between break you XX% on given Just in that

Steven Roth

higher lower XX% office for obviously retail. for is It's average. It on and much

Michael Franco

retail. retail? clarify, Steve, from It's let's that XX%, just is the just what

Steven Roth

no. No,

I April. I not May think Vikram, think your was the collection, for question

Unidentified Analyst

For May, yes.

For specifically. May,

Steven Roth

Okay.

retail in that it's is in is, and office $X a XXs in are for this, math for in And in think April. our happened the April, which math tracking collections weighted the it's insignificant, think XXs XX%. right running that significantly May So which now, what average morning, of this I exactly than the exact is me with the million, better told May in David I is

Unidentified Analyst

Great, thank you.

Operator

Manny Citi. Korchman next our with of line question the from Thank you. comes And

Your line is open.

Manny Korchman

back be Glen. of know they leasing the targeting will, So to into think either planning in, kind about leasing you how one that to do of, the that any you in Glen, of make term, your don't decisions how context? company like half is renewal you if if in far sounds renewing XX% long Maybe near will office you how environment? what for for do workforce or coming sort you're path last, that sort decision for with the and

Glen Weiss

is it building, be as existing to I their keep their the quiet minus, answer and market's the we expanding leases. expiring need going out months, we're people for leases decisions, call meaning six think or first, building. plus it, have Look, moving going their people existing the Renewals relates within because to of leasing new

during portfolio. a slow in, And that life I and move this We've with see our been ramp-up another renewals. building But expansions. for being change would So getting on for their generally, deals action. back demand going to proposals within and of new you're tell to the you, of looking discussions during some we there said, lot are receiving shutdown is people in some to

Manny Korchman

decisions they the of they are about guess, counts much need? per of think of are so the And question drastically question I just a of level, from how a from think about person focus more sort those they do so guess more square going number even off? I space feet it's when to how how the person

Glen Weiss

think soon going I buildings and to No I get into back the summer between too knows. winter. mean, it's we're to the say. one the

in. and I things have so set. get normal, is table think settle how We see then to their back to back to speak, people

get we their space foot, they're until to at I much think the they people are going now, many think back knows year. offices not etc. need, be how right back it'll just and fit going look during per to into how project get how people settled chairs I to nobody fair

Steven Roth

I X,XXX What I mind. what "Oh, are as do space." really, a they get desks way, tenants in of businesses where David as to trying full, is many focusing I tenant top past That's other can office their is need speak And with back Glen a months ago. you great renewal six employees with my go large respect the will not this to for their I frequently. all they're the and they're And than looking a important to back. I has. feet They of hard an ones be really not can want that on that period. save they back. their and than deals, to to this, to, this really to they is to other deal basically, the were by the a saying, to, They square it want speak Manny, thing, speak or not don't to they God, try way space tell and want the making good respect time a by all They

not us a bargaining it's tenant. with the be And time good to for

So we'll period, everything get and to going at within hopefully, come year from to now, back to a is normal some then back business.

Manny Korchman

a a more a in so about where becomes or think retail street based and they're shift nature among the past go flipping than or we guys the psychological shoppers, And in lot larger that A was lot a that then, a probably to going harder and you a to maybe context. were do guess, tourism deals of I showroom on concept similar retail of not a retail pitch saw flagship like. environment, as to showroom and shift time to tenant? sentiment shopping productive

Steven Roth

Haim?

Haim Chera

actually I format with prove ecosystem the important to connecting the So resilient think of consumer. will more be the and retail street more to

will prove grow will e-commerce more think also mall. the But market and I street to gain physical formats, share. retail that think like resilient I continue than retail other

Steven Roth

opposite. Fifth Avenue. frustrated. is very down out think up and Madison wait think walk an she wife shopper, is be walk to down My could I there can't and a She up Avenue, could counter-intuitively, be I there and and get

So I their the shop, back. opens think when a has to and up want out, want to to which been go that restaurants, be there this they to have will down, go want they shut they they population, to life want

So, as the some I I've of is not dire think this commentaries as read.

Michael Franco

they follow-ups. of has think just I Michael but haircuts, all a really want couple

Manny Korchman

I had just two follow-ups.

Steven Roth

haircut, Manny, take from your get me, And you please. one when

Manny Korchman

more jam the of to to in just more terms One able allowed two dense able because more cost density tenants to question, a that and need have Sure. into they of having to landlord to you to of people that able I It change does as paid things. you returns were rents move more as the equation part be act being seats. people? the take affordability they tenant's the How same the the now number populations much space fit was the afford get to which of on had was think I the to follow-ups.

Steven Roth

that? try to want you do David,

David Greenbaum

a focused as time, focused, question, which we're think that relates Again, to it of period I you're today. is on

about So It's public the today, mandated Today, authorities. people by talking it. social they're about people talking are distancing. not been

couldn't them the at today, properly as decisions I looking socially Michael, fit XXX% back bring So office But within are obviously, your think, you workers, office, in long-term you an themselves. couldn't for and of distanced. people,

be were. substantially said. people to People it that to to have When think think months, to happens, the take said. Steve recognizing effectively years. much I as as to six going an is offices, find are going know, to to want antidote that, going may Steve what We come really we we're ultimately, back two we're seeing virus. or are Ultimately, don't XX like months I to going

their of expect companies we've in portfolio, terms the services, to we is had that some of think the to our radically I companies we ever is, density don't And going think believed so feet today. the changing aspirations technology, nobody person way in of going of to view service some long-term? do seen seen, XX as the it that in terms other a to we But of financial densify. relates today our that that both of change as use co-working is get space, we've to radically, were what

Manny Korchman

And just on retail venture. joint a the then follow-up

distributions X.X% on work the of to cash in security within flow only that afford venture? preferred on that XX% able Given flow paying waterfall the cash rent fact how paid with the be only What's the the to tenants? preferred rent, paying of the the tenants your XX% have today does venture

Steven Roth

Michael?

Michael Franco

Yes.

on preferred of the cash paying All So we pieces the preferred. you as venture. that, have for the of way is on look, know, aggregated the is the two debt is effectively purposes as portfolio the well third-party structured

But cash to is that being to the the the But the preferred pay accrue. and as across preferred. excess that point, sort then of think paid, in paid instruments. continue of there's near today, that cash there's is collections term. the the never at sufficient so and will that different extent and off in that's the one current if not time, other, for we it there's a all deficit case, fall To at the cash aggregated And a be will

Steven Roth

the But undoubtedly pay, income. to answer rent negatively is we mean, collection preferred gets will approximately the which of not that decided percentage call who creditworthy by that one big on collect. I JV very tenant swung assets the first in and XX%, the was the

So it's bad are. not as you the numbers as think

Manny Korchman

Right.

there's cash the venture So be into than coming for overall? would it more the portfolio

Steven Roth

Let's hope.

Manny Korchman

you. thank Okay,

Operator

from Steve you. ISI. next the from Evercore question our comes Thank Sakwa line And of

Your line is open.

Steve Sakwa

newer Most the issues do of stuff? sort have to developments, place might of guess sort you stuff question one floor, my of I Two be with deal the design handlers Penn. for and need the building, of And the just at make the to on that questions had elevators on of that changes some order But the like and and you're kind been air and some hand today? changes might the all I costly doing those What of asked. thinking the the Farley work kind at take how of base maybe in about

Steven Roth

wants handle to Who that?

David Greenbaum

take could okay. shot I a

Steven Roth

do. please Okay,

Michael Franco

David. ahead, Go

David Greenbaum

So Steve, thanks question. the for

forward, will I tell buildings. buildings I you First, call is what would designed these as we've forward-thinking

was this pre-COVID potentially state-of-the-art ability available. being In of There terms in terms in the handling to are of of the terms the the filtration of air systems, are all other filters. having engineered that technologies systems, use MERV highest-rated

relates not technology of have to them through not an yet tested United It's been enormously as flow There costly. States. of even type Some the air having is tubes. in ionization the it

that relatively currently looking In something is fact, It's efficient. at. we're it

But obviously, working our the first, that. potential thinking like engineering technologies about we're with, experts,

we have systems, in entry systems touchless the facial portfolio. of terms recognition In

in to ability for the similar have access through the portfolio to visitors. turnstiles, with We iPhone get your walk

distancing. types we then next about, designed systems fact, that social have in are the systems the designed spaces, our the again, of of the buildings pre-COVID, not the themselves would And the So in today, building, realistically about people communal obviously thinking comply that that the have being thought for we with nature are generation. spaces

space, and XX long-term, long-term communal we for designing the no a spaces But change again, continue auditorium these we next the Grand been the think buildings want XX are make PENNX. future. the buildings. in have for space we Stair whether would long-term that right the we're these buildings to to spaces X, buildings These the that not for months, great of tenants the it's perspective, think We any spot-on are that from designing or really will designed PENNX, there the that's in is in

Steve Sakwa

time in kind Do point but... just looking of there know that Dave. today don't Would was large a large like Penn rooms? you your short-term, gym they Two longer the were conference I things at And term? buildings. I work things in for mind know follow-up, still include like Or a that

David Greenbaum

And, Yes. yes.

Steve Sakwa

it That's for thanks. Okay, me.

Operator

Feldman question you. Thank of Bank comes And our from Jamie next America. with

is line open. Your

James Feldman

out to of so. So, bankruptcies thoughts your now quality, on through week or headlines We've in of this. tenant in get coming latest credit coming retail I'd like seen the long-term last especially several

Just know default how get normal. to what I will feel get tenant back this we'll do risk? through But and the things you credit now about

I then, at And balance? reserve changed your you that don't I but the to extent any that's changes to guess, all. guidance, know give

Steven Roth

The question is retail credit, as to Jamie? our thinking about

James Feldman

businesses retailers it? may it your your how some of through more bankrupt, of making that go this have you risk may for or small and even go reserve Just bankrupt

Steven Roth

conference think call that had I've have I read is of transcripts gang Well, of most the the the so of answer the all that far.

reserve one only of remarks. that point a our the the we're debt raised bad think I in

of everybody. ever moment. is this any is see the new we had accounts we us This thing periodically, will and first we a So time for have receivable

gave so have weeds reserve my I the which cost be, what you we you COVID got debt prepared a down of our XX inkling accounts far. when thinking for think foot remarks the will $X our of be to the in figure might receivable, I have an what into to and months out So was go when I

to about reserve we financial a So will, have we publish When debt yet. anything statements, of course. we say don't our

James Feldman

ago? a your just base back, retail quarter this not your from, base say, may view of of downturn. But or your kind it even step tenant changed I guess, have office through How tenant your taking a views some whether it's that of make

Steven Roth

is out but mean, may are that poster a Because contraction, there This a is traction. severe child to total shutdown. only that. tenants every economic economic is, there Well, that be I who history not an there's there the is time the drop

and of part our So I business. some failures expecting of the are mean, customers, we part of the that's on

So I can't it. quantify

you We have a would watch list, imagine. as

out And so the months but wash next will and that come the in year. all over

James Feldman

you. Okay, thank all right,

Operator

the And comes Guinee line with Thank our you. question John next of Stifel. from

open. is line Your

John Guinee

negative Just been a follow-up. pretty I know, you have co-working. Steve, guys on Michael,

at look do WeWork particular, you is If in end Indefinitely in you how insight? long see them business? or there

Steven Roth

Michael?

Michael Franco

as as them. I was going to funds say SoftBank long

Steven Roth

a thing that's to bad I don't think that, say.

Michael Franco

I SoftBank's John. fund the probably near-term is willingness be more think dependent deficits, crisis. those mean, to this significant Their on given survive which I ability to will reality, that's

densely. in high square I their said a But Tenants know. in they Steve don't while by Look, were per model little a foot more ago, than landlord lease. So was I density. were normal them packing more tenant actually think driven business paying the traditional as

also They're a now. paying obviously challenge flexibility. for that's So

there that users. so obviously, And are elements types certain for attractive small particularly of are users,

of a years, in think beyond of willingness it's want view is like a in-out to it's and think challenged their highly [ph] But I couple of But whether their sheet in I personally and don't I their to know balance sort as I survive detail, terms prognosticate. which business. know don't thrive, runway. to I but don't I it

Steven Roth

share let me I you give of if a might. my John, thoughts,

nonevent evolutionary value develop. to it not huge of the the co-working have market So that were just seem loaded for business been sort would an WeWork

$XX whatever value got was fact attention. they nobody was, number a paid would everybody's of if The ended that that million, had or up WeWork venture markets So $XXX had market some in attention. some the the with billion crazy have

stay. I couple be So which things, of WeWork model think a might here to contributed

first a The their short-term lease total is or flexibility to user. gives lease, which no

about a So that will and that that's people. to interesting lot. thing, important be a talked very some we've And

tables The what ping-pong a informality, second have is thing culture of beer you. and developed and they kegs

lot you conventional of work. space, the look that's young the because have of at to interior way adopted the tenants people like industry sort been a their design want innovations conventional office And for if

So work I two commitment tenure things those financial and that two of of culture the going are things, are the think play. to the

is you The you made walked space, into took you desks when existing them when is. and that third thing use WeWork as you

architect of to out didn't You period through building space. and have an go hiring a month six

all of I a also very a it, think, I rest The think that's thing. of load is attractive hogwash.

John Guinee

Good.

Okay.

size haven't of about Park. a that? But this first I talk you maybe the and question, the about the Second I've of is redevelopment and been in the tune. XXX timing Can scope heard ground-up

Steven Roth

Who take that wants on? to

Michael Franco

we've I'm it referenced happy twice to think it, or do Steve. I previously. once John,

We down and square we to And that existing office building an Midtown district, of build the to with XXX,XXX-foot that with are rezoning building. have air the have ability tear available East the building. million a rights one foot brand-new acquisition

X.X buildings. and also square combined a with again neighbor our existing combine which build expanded has million, to We combined to the from have option building, the foot West the X.X million

ability, So those and there's and rights air cost-effective. the available are

best is have so city. we and the location the in preeminent that a And arguably

XX danced about previously, with tenant tenant for looking had locations headquarters inquiry We've probably months and the ago.

brokers best in there. spent and we continue buildings ability build as from And We one world have in is the team office interest the possibilities the locations. of preeminent we have others educating think of the to in time Glen to have the the on one the site what

it, of being so And several last things that economic to was market the is finalized. is the option, over the is we've it it's building ability up And Midtown East interest. upsize that has that potentially So standpoint, we a there. a line have from the given knowing garnered if done district one the that years the timing leases,

lined his all to with leases including building leases one option all up the most that in place Citadel, put recent demo Glen we So, are the in tear clauses, have the that the so and down. has

years the building And in create it's a location. effect, opportunity so or have in an to that that's so is first-class next preeminent a we the what three

Steven Roth

that build or much Number which bigger more the in neighbor, rear of position John, Michael either, whatever have flexibility brand difficult than said, one, new and I say, which building. would tear we two said, the that a to building, in nuts stay said with am best a can where X; we are, is million we we're to is West. in as perfectly always or feet, build situation. can to serviceable we and is a to combine XX-year-old Michael think little a, down a Number bit very location office I the value and single interesting has have a Michael building one it Michael soup our the because a West, I we

will based the to do So marketplace inquiries and us what upon tenancies you. what and tell have

emphasize never major build and to that to said. we a for them, merely materialized. far want other I one He entire that danced thing do, company financial headquarters with down which services line, the said Michael he very And but said, a block the

John Guinee

you a have no-observatory that pledge Do on development?

Steven Roth

there give I Unless you no we my think be will word, observatory. you an should have observatory.

John Guinee

No comment.

Operator

from question Paolone next And [ph]. you. the of our Thank comes line Anthony

Your is open. line

Unidentified Analyst

the could of to may just quarters cash just be but had at few shows may drawdown brackets back. in I missed other have can we you if look you things so signage, first the much the not wondering from million deferrals, some parking, in But move-outs, what theMART where around Can quarter, $XXX was that I the hotel, this. go NOI. that next or like and the put goes?

Steven Roth

Joe, if you would, please?

Joseph Macnow

did which shows, Penn, Hotel $X trade signage are of run packing, Steve million those of a say that business, our month. the the prepared rate variable, his are in elements yes, Anthony; remarks the

Unidentified Analyst

go do the away And quarters? think Or... those few you so in basically next

Joseph Macnow

is not to Signage at going standstill. trade is closed. Penn this remainder of are Hotel The the The today. closed shows year happen. They're a for

to be goes they're COVID as effect. long sure, going for So on, as that

Steven Roth

look month begins it's is it The this is Tony, million make open a is and one-time the COVID businesses that mentioned, up and Joe we way important spring distinction. economy hit to up $X the up. a to because to at open this back the going opens when

our as not that be So not this if long-term have it's in will permanent values. basically, is you diminution a it's space as empty if

businesses, bad So if XX the this diminution we might be hope what a that for the and might and of to our these what a guess amount or months, debts million share it one-time way variable might be $X we've for if $XXX is, it foot hit. dimensioned you it take coming long, for doesn't, lasts a it the $X

Unidentified Analyst

have And clear to understand. the plan just know this, the the of on sorry, on dividend? was year I what I then, Okay, the I don't dividend. repeat But rest but if this I as is others for maybe

Steven Roth

we said three the I pretty declared We I clearly first dividends. Tony, paid or paid think days ago. remarks that in four we quarterly the two second the my quarter second

and respect the the fourth first the With them in of light that's of half. will $XXX-odd importantly, quarter, third income. dividends and look market the our of for economy, So world, million the taxable light conditions, expectations quarter at of future, to in most our we

Unidentified Analyst

So that in means as course not normal you have been? them you paid may have

Steven Roth

tried No, no. think as I It's any Tony, these that's where be least decision. the the said. you're parameters clear, putting go, indication words in my might to clearly, are all of to said giving mouth. we I very without at I I

Unidentified Analyst

Okay.

clear no It's around brackets you about how it? was there So just think decision.

Steven Roth

any So possibly we This decision, has time, now. which that can't is the okay? can't a possibly be forecast at Board made we have to

is prudent basically want to to, of business. for a combination will that we what's do The that financially capacity the anything thing plus do the and other have financial we we

Unidentified Analyst

then, question. And Okay. last just

fund think points. that magnitude and order rates the XXX just moved with, that by opportunities basis rates cap matter? would by in you to of of arising What front. the terms of or constitute noticed was in value up investment basis Is opportunity estimate interesting the XXX idea of on the IRRs the IRRs that cap Q, Just economics? I and kind accounting I an changed and you you points

the zone get on Just for trying strike to would color what in put something you.

Steven Roth

Michael?

Michael Franco

Yes.

latter on the on I Tony, hotel. mind, primarily in And point, was asset a fund, is accounting think, keep I the think that largest driven. the

think there. rates And so category. cap I And stressed up that's the rates, have obviously, most gone discount

forbearing mean, So Frankly, the CMBS I a of all, during last early trade-off. bond react look, of the I quite come in markets think think bit to lenders Fed has market longer. it stabilize, allow the borrowers quickest, just to public with in the days, of stepping now to right terms unlike some back sort A still private crisis, the But not stabilize lot have the look, right? this I the and bonds opportunity, some. think, them opportunities, it's on markets, of working and are takes I timeframe. stocks the helped first of

we other But But when capital we of was had value. developed got to into can being buy developer situation a replacement in we're we maybe the apply of on can discounts either the out That's and money. city assumptions. some where the lease-up of side that it. to were that get another high-quality that balance you projects that, their looking the where assets ratios, our make for cost, essence real skills And maybe

as sort early characterize You would looking when know days. I out debt still assets. of at it it. and both you But We're see

Steven Roth

an is That's acquisition terms much correct. field early more for ago. was cycle to there attractive than absolutely this But that of the acquisition It's it cycle. days is in playing three the extent clearly today months acquisitions

Unidentified Analyst

Okay, Thank got you. it.

Operator

you. Thank

of question [ph]. line last the from Daniel comes Our

is line Your open.

Unidentified Analyst

big here. picture a question Just

is the nation, many and fiscal others emerging market. several budget or fix Are on clearly cities the have near as in long-term stream, landlords City's your York New which ramifications there their for look any across to might threats like situation? under opportunities

Steven Roth

has billion York be New this will in projection. states $XX are over In $XX situation. big there's fiscal the year one other governor disastrous it And announced years, the that's States. states, fiscal one entities next that's the its every Danny, XXX and of Every of rear cities of is United the every every similar conditions. the thing those head one a single question. the just Well, hole single and of one billion in three Look, state, of single going of to governmental the largest the terms in in, that ugly XX is the in condition

isolated. New New York York City and are state not

is only the can that by expenses the government can have a, plug federal deficit they only hole the that is country budget. by radically the or going in So, hand-in-mouth the Because cutting to that government place federal either, government. a

to guys their somehow. The budget have balance other

said, leader oh he if mean, to some But their got national control. be was a has let to So at Senate that I I his for weeks of to attention, be there majority my I two, There governments appalled statement due get to was start was them these pressure. him something And think saying, ago give has God. budgets that under the made really, the go three bankrupt. that that. I just you what

upon see. they're trillion we'll going biggest to which I going So is that the is whether way to taxes. federal so $X the is go in in election, this; what's believe rescue. that fight almost is they're fix The know to going happen. But federal only don't to I the do believe to I going and crazy don't us, the government believe presidential raise government I next spend to clearly, out come anything. single don't the to for the

are federal lot going upon knows only depend governments to what rescue election. a will that conditions put God the the And money, outcome and that of on the

Unidentified Analyst

Okay.

So at rights, anticipating like anything near you're least any, the that, speeding York, air of not permitting term? up New in processes, say, additional in areas rezoning

Steven Roth

but happen, years take think zoning, will change I anything happen. it they takes five make to that the will if that

Unidentified Analyst

still development yield for quarter-over-quarter. developments cash then your pre-COVID redevelopments development brands? me. still for pipeline those the Sure. And and Is projected lastly The pipeline it just on didn't in-process anticipation in your that change the hitting

Steven Roth

year. two Number for caveats. which conclude, yes, in answer those them one, put with process The was basis we leases that believe will projections is out we the when last

to Now variables there's two those.

a advice is a a gets will for does okay? job environment. to know superman if is so the Barry And And in we possibility I'm first better, that less, that's Barry. the yet, absolutely what be. build and which We giving this second the plug just don't is rents The

we week get adjust article we're get, change after. going but a we week we or or the next a will visibility, newspaper when adjust to projections to not them our we So, will to react when this precipitously

Unidentified Analyst

Okay. Thanks, everyone.

Operator

Sakwa. Thank you. last from And Steve our comes question

is open. line Your

Steve Sakwa

things you And I due next follow-up. north to to of and advantage think, curious of that have of I are, And just perhaps over much $X the low year this it how debt if you year, don't year. take of of coming of know rates coming you due get mortgage debt that kind next do you this Just are away? lock kind but billion the six spreads some can debt I'm narrowing there credit can months? and one early

Steven Roth

Michael?

Michael Franco

ahead are trying always we to Steve, out at refinance our debt.

something in down we're XX-year refinancing the treasury so those working some are we borrowing you and though an have that X%. that California, process opportunities, of quite extending of north all-in there going both costs XXX think we paying agree at may are And that out, the on And if particularly LIBOR given bring so are already those, And attractive. that and of we're There's the both opportunity down. Clearly, spreads look like gapped to we're with. dramatically. like even

is some the office or answer of maturing on to point happen that the I assets loan values premium that year out low next debt and our are We're would highest the So be yields. comfortable. it, on to loans And Steve. assets, we're

those And refinancing so confident in we're executions

Steve Sakwa

Got it, thanks.

Operator

like further speakers. back Thank turn time. any you. And not this to showing at would questions to your call the I'm I

Steven Roth

our too office and that's paying back isn't Thank from healthy for this you need buildings. stay in get home, you. Please Thank in safe. you, you. everybody. We're working don't comfortable joining Alex, rent We the grateful us everybody morning. and Please

Our to earnings forward second on quarter and stay will again. participation August your Take X, call look care, be Tuesday, we healthy.

Operator

Ladies and for Thank today's participation. gentlemen, conference concludes your you this call.

now disconnect. may You

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