Vornado Realty Trust (VNO) 5 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Catherine Creswell	Director, IR
Steven Roth	Chairman & CEO
Michael Franco	President
Joseph Macnow	EVP, CFO & Chief Administrative Officer
Glen Weiss	EVP, Office Leasing & Co-Head, Real Estate
Haim Chera	EVP & Head of Retail
David Greenbaum	Vice Chairman
James Feldman	Bank of America Merrill Lynch
Michael Bilerman	Citigroup
Piljung Kim	BMO Capital Markets
Alexander Goldfarb	Piper Sandler & Co.
John Guinee	Stifel, Nicolaus & Company
Vikram Malhotra	Morgan Stanley
Emmanuel Korchman	Citigroup
Stephen Sakwa	Evercore ISI
Anthony Paolone	JPMorgan Chase & Co.
Daniel Ismail	Green Street Advisors

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. Investor of Director Creswell, Relations. Cathy Please go ahead.

Catherine Creswell

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

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

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

over turn Roth. now the to Steven will I call

Steven Roth

morning, Cathy, everyone. you, Thank good and

our Stanley during and ask Before pray friend, our health health our of following COVID-XX down, the commend of upside in the all moment as and uncertain. protect situation. and tenants We all, communities. and protocols total taking talent this We our future measures have for and and for pandemic, lost and is our know are been honor safety employees, strict we to hurting, and now first businesses of we my we a admire care courage on the silence we sign never it Haim's people are is almost shutdown, Avenue, Square our dear including the Vornado, the Chera. now father Lexington are is of find scrubs lives as that before In providers. priority, in light is as the blue, their honor, Life beloved theMART. Bloomberg also begin, XXX Tower, of hurting, I ourselves flying a our projection block-long Crown Times and At

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

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

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

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

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

We closed Pennsylvania the Hotel have temporarily.

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

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

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

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

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

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

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

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

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

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

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

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

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

think gross is exaggeration. a I this

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

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

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

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

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

have cycle-tested team. We a management

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

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

So say ringing you the bell. am might I

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

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

Michael Franco

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

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

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

up of we were the office would short-term York potential been X.X% building as affected renewal X and end. negatively ground-up years. that per mark-to-markets square space expansion stood XXX GAAP lease, second-generation initial and GAAP office at mark-to-markets negative Without XXX,XXX in positive to respectively. and a foot. have the Avenue for quarter, healthy development $XX.XX very Park In X.X% one New and positive space X.X%, rent by at XX.X% cash a we start of XX.X%, Citadel a quarter with occupancy respectively, cash leased this The on line square at feet at and

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

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

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

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

loan no book. have We

up back wrap our to Steve Now remarks. opening to

Steven Roth

Michael. Thanks,

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

office growth. years very our only get average both side. of square be years only a end I Farley expiring But optimistic. or feet generating Further, must coming trend well million am of expiries challenging, date. an per will and will PENNX so will When to will be will XX% generate and lost rent year portfolio, us. there, the look income of large COVID-XX our Amounting of $XX. year, only and to we Next this. to we weighted for quite next other average the York These for earnings accretive actually X.X the be at or PENNX will X X for a have life. for a New tragic year stability X% an

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

that dividends far have upon our time reevaluate and must, to third any year, million. at to So do taxable X.XX intention, income. dividend based expect Without paid estimate year. fourth as exceed then fed and our $XXX we and this dividend of our telegraphing amounting this quarterly will, we We economic we financial conditions quarter

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

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

You get the message.

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

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

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

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

to hard With to and are happy teams questions. the team our protocols that, as health Gaston operations preparing leaders we're Vogel Lisa Silva and of visitors safety Our tenants, ensure operator, here. our at their staff. well as take our work are

Operator

Instructions]. [Operator

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

James Feldman

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

Steven Roth

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

James Feldman

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

Steven Roth

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

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

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

James Feldman

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

Steven Roth

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

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

Michael Franco

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

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

James Feldman

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

Steven Roth

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

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

Operator

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

Michael Bilerman

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

Steven Roth

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

Michael Bilerman

York. New Upstate are We

Steven Roth

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

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

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

Michael Bilerman

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

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

Steven Roth

company. a York New are We

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

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

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

New company. we York-centric So are absolutely a

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

Operator

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

Piljung Kim

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

Steven Roth

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

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

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

and are block for incumbent waiting them that and is with has has which basically aggressively at Glenn away, with who open a sympathetic conversation is to and going that. devoted up, in tenant tenant almost that in reasons. I for are They Not is building even obvious forward and Penn maybe hopefully in that going another large Two There's and of absolutely an and be to is rumored been forever understandable, David basically for pause -- and been One but space we've that dialogue with large pause. their business of to complete. been

Piljung Kim

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

Steven Roth

No, no, no.

no. sure, For

Piljung Kim

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

Steven Roth

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

Operator

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

Alexander Goldfarb

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

X questions for So you.

first, happy The to about hear XXX...

Steven Roth

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

Alexander Goldfarb

Yes. Yes.

You were unambiguous.

clear. You were

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

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

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

Steven Roth

Alex. Thanks,

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

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

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

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

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

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

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

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

Alexander Goldfarb

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

Steven Roth

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

David Greenbaum

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

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

talked about I talked we earlier think you about -- garages.

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

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

Steven Roth

will end Alex, an look, date. this have

the an end have date. will pandemic So crisis COVID

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

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

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

Alexander Goldfarb

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

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

Steven Roth

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

Alexander Goldfarb

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

Operator

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

John Guinee

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

Steven Roth

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

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

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

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

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

So was uneconomic. it

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

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

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

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

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

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

John Guinee

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

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

Steven Roth

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

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

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

continue. resilience we We the best -- infrastructure, York's do of human will finance, infrastructure, in we think so we to world, Mr. get I'd infrastructure extraordinary, well. other love think in Bloomberg et would is I in resilience. the New and New terms landlord, believe So we cultural -- business and cetera, infrastructure, know happen. him going its back, each York's to not very that's to but his I'm get love

Operator

line our Vikram next Malhotra. comes And the from of question

Vikram Malhotra

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

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

Steven Roth

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

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

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

So that working the difference home, you're is in from isolation.

the could collegiality, benefit can where And regards, And is But and you upon you from office regard. working only other an wins that thing. save important in who depending I interaction, creativity, in see of I guess, the that sociality, all is winning you socialism every the the the commute. the -- are the terms in be of home the ticket live,

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

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

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

be find, lasted enormous it a number we continue. there's of margin, home years, of incremental your mean office. little So I -- in find terms bit the employees there benefits work of controlling, will at and traditional for it's to we nick. an will At the traditional X,XXX controlling

was to is in trends. only of all the kind rent X/XX And trend. dangerous. space happen in to wanted they They like it are was a to and reaction then of There the nobody now This back. relation space of because the The crisis, buildings. the upper go the space is the reaches upper that most valuable buildings -- that's the reaches time

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

where am. So anyway, I that's

the think ticket. office I is right the

Vikram Malhotra

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

Steven Roth

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

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

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

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

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

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

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

Haim Chera

I don't believe so.

Steven Roth

is that our And firm view.

Vikram Malhotra

Okay.

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

Steven Roth

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

Michael Franco

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

Steven Roth

No, no, no.

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

Vikram Malhotra

For May, yes.

May, For specifically.

Steven Roth

Okay.

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

Operator

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

Emmanuel Korchman

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

Glen Weiss

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

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

Emmanuel Korchman

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

Glen Weiss

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

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

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

Steven Roth

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

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

Emmanuel Korchman

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

Steven Roth

Haim?

Haim Chera

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

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

Steven Roth

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

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

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

Michael Franco

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

Emmanuel Korchman

had just follow-ups. two I

Steven Roth

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

Emmanuel Korchman

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

Steven Roth

that? try you do David, to want

David Greenbaum

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

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

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

aspirations find to get seen what nobody today our densify. terms X to going But Steve feet we've of I it in as believed it that the were like Steve of seen, to or to want ultimately, what relates that is had XX months, offices, may ever Ultimately, the we is we some substantially as of said. we're co-working going going we've to both portfolio, companies seeing we're much way person in to think financial that And think have back think be technology, services, that that, happens, long an years. we density I is, of don't antidote to really some our going were. is changing people People to going the are recognizing as other expect the today. to we terms to effectively think come radically, companies radically I the so term? virus. space, do of said. going view We to to know, their XX in months use X of a take change are to service as When don't that

Emmanuel Korchman

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

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

Steven Roth

Michael?

Michael Franco

Yes.

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

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

Steven Roth

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

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

Emmanuel Korchman

Right.

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

Steven Roth

hope. Let's

Operator

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

Stephen Sakwa

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

Steven Roth

that? handle to wants Who

David Greenbaum

I could take a shot okay.

Steven Roth

please Okay, do.

Michael Franco

David. ahead, Go

David Greenbaum

for question. So the Steve, thanks

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

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

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

at. the with, it our we're currently In working is about technologies But potential looking thinking It's like we're obviously, relatively fact, that. experts, something engineering that first, efficient.

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

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

designed the think we to right types would are really months, XX of spot-on the are it's been the make these we continue the obviously the the PENNX, these of from that next XX designed and people in perspective, systems spaces that's there buildings spaces, to future. the spaces fact, are social building, the that think auditorium we're the in long-term, for change whether And then X, in Stair themselves about the have any thought about, systems again, want again, pre-COVID, that a great communal communal nature have not of buildings. in realistically are that tenants designing buildings that So Grand would designed We for today, But we no buildings not have long-term we the for or the in the long-term next that thinking comply buildings generation. spaces the space our designing These we space, is PENNX. with distancing. being will for the

Stephen Sakwa

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

David Greenbaum

yes. and Yes

Operator

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

James Feldman

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

-- the that's back at reserve now to will know I you your the that I credit But do give all. this we'll know how you through normal. what and to extent to tenant get then, Just feel default but get risk? changes any balance? things guess, don't about And changed guidance, I

Steven Roth

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

James Feldman

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

Steven Roth

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

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

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

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

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

James Feldman

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

Steven Roth

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

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

So I can't quantify it.

a as imagine. have would We you list, watch

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

Operator

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

John Guinee

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

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

Steven Roth

Michael?

Michael Franco

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

Steven Roth

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

Michael Franco

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

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

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

to users. to are there that don't I their thrive, it's it of willingness whether I personally as detail, years, beyond know their challenged I don't elements But and obviously, users, of particularly in a and like are of types runway. inned small I I for know But out think so certain balance view which but And is attractive I to sheet survive think highly it's business. in of don't couple their a terms want sort prognosticate.

Steven Roth

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

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

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

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

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

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

interior The industry for of a tenants the kegs look conventional is way what and people have want you. culture of office the their you thing to that's informality, work. adopted tables space, conventional beer they second And lot been innovations young at if of design because the like and have sort ping-pong developed a

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

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

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

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

John Guinee

Good.

Okay.

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

Steven Roth

that take on? Who wants to

Michael Franco

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

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

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

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

city. arguably probably had the tenant a about for the looking We've preeminent And headquarters danced location that XX in locations best and is inquiry the previously, so months and ago. we have with tenant

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

ability the upsize it's building a that So is market has interest. potentially the it, to garnered is it economic And given there. if

being East that we several one knowing is leases, a option, that that line years last finalized. was from And have Midtown the district standpoint, done timing the of the so the up things we've over

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

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

Steven Roth

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

entire tell and emphasize to that Michael inquiries to And other said, said you. far thing upon major I and said. what a what us very headquarters want build the danced financial but down block never with the based one merely to the do, line, marketplace and So which materialized. have we company he will tenancies do that a them, He services for

John Guinee

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

Steven Roth

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

John Guinee

No comment.

Operator

And our the of line from comes next Anthony Paolone. question

Anthony Paolone

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

Steven Roth

please? would, you if Joe,

Joseph Macnow

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

Anthony Paolone

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

Joseph Macnow

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

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

Steven Roth

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

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

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

Anthony Paolone

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

Steven Roth

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

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

Anthony Paolone

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

Steven Roth

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

Anthony Paolone

Okay.

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

Steven Roth

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

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

Anthony Paolone

then question. last Okay. just And

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

Steven Roth

Michael?

Michael Franco

Yes.

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

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

Frankly, assumptions. last to So unlike developed borrowers of with look, either has stocks trade-off. still capital looking some helped of have I are quite terms stepping city cost, another it's the their longer. and in of not high-quality back other markets, to them was think discounts on developer and come that, right? the the where situation were maybe make ratios, crisis, But had all, That's some it. think, But money. And to working opportunities, public skills I get market the and of the projects we on lease-up into buy we just the can time early the some. we private Fed maybe you sort markets CMBS apply frame. in stabilize of lot mean, right we're the a that takes now A quickest, in it the real the first of essence for bonds days, side got can during to stabilize, being bond of balance react look, our that forbearing out the the But replacement think value. opportunity, lenders I when to bit I allow a -- of this assets where that

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

Steven Roth

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

Operator

question comes Daniel of the last Ismail. Our from line

Daniel Ismail

a Just here. question big picture

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

Steven Roth

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

not New are New York City and isolated. state York

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

their other guys budget to somehow. have balance The

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

upon biggest spend what's So almost I -- trillion believe happen. us, in presidential the this. single I which is next know federal the to going $X don't going to whether that the is the to election, fight in is fix government

way rescue So we'll don't I federal go But raise I going believe for only see. don't out clearly, anything. God the going put are The to to crazy what upon rescue. to the that election. federal they're they're and is that the taxes. the conditions outcome that will knows government governments do And believe of to going depend only come on lot and money, a the to

Daniel Ismail

Okay.

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

Steven Roth

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

Daniel Ismail

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

Steven Roth

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

those. X Now there's variables to

environment. -- We this not or yet, gets know so does projections Barry a be. react possibility going Barry. first to but this okay? don't will in is our the the that's visibility, and a rents newspaper adjust what or is adjust plug build get after. which for will the just if second superman article precipitously we to And the giving we change So that a The to will when we week to a when a job better, advice we're we get next them is week less, we absolutely I'm And

Operator

Steve from And comes Sakwa. question last our

Stephen Sakwa

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

Steven Roth

Michael?

Michael Franco

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

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

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

And in those so refinancing confident we're executions.

Operator

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

Steven Roth

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

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

Operator

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

may You disconnect. now

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