Earnings reports from Real Estate Companies in Q2.
- Rent collection: SL Green reported office collections approaching 96%, retail at 70%, or 91% overall. CFO Matthew DiLiberto clarified on the earnings call that the figures are gross collections based on contractual billings, not reflective of any rent relief deals that may have been cut or the very rare use of security deposits. Pace of collections has also improved every month from April through July. (EarningsTranscript+TRD)
Columbia Property Trust
- Rent Collection: The REIT collected over 97% of total rents for the second quarter. Termination of a WeWork lease at 149 Madison early in the third quarter resulted in a termination payment equal to ten months rent. (EarningsTranscript)
Empire Realty Trust
Rent collection: The REIT collected 84 percent of rent in the second quarter, representing 86 percent of office tenants and 75 percent of retail tenants. As of July 24, monthly collection reached 90 percent, representing 93 percent of office tenants and 75 percent of retailers.
- Other notes: The Empire State Building’s observatory, which remained shut for the entire second quarter, reopened July 20 at limited capacity. Observatory revenue was $128.8 million last year. (EarningsTranscript)
Rent Collection: The firm collected 97.8 percent of office rents and 57.6 percent of retail and other rents for the quarter, or 96.4 percent overall.
- Other notes: The REIT leased 300,570 square feet in the quarter, with an average initial rent of $93.47 per SF. Most of this activity consisted of renewals. The firm is focused on filling an upcoming 500,000-square-foot vacancy at 1301 Sixth Avenue. (EarningsTranscript+TRD)
Hudson Pacific Properties
Hudson Pacific Properties said during the earnings call that the $1.65 billion Hollywood Media Portfolio JV deal with Blackstone deal was “imminent” and that proceeds from the deal would more than double its liquidity — from $1.1 billion to $2.4 billion.
- Rent Collection: In the second quarter, the REIT collected 97% of total rents, including 99% of office and 100% of studio rents. (EarningsTranscript)
- Jon Gray said he sees opportunity longer term in offices and hotels, which have been severely affected by shutdowns… About 80% of Blackstone’s existing portfolio has been resilient to the virus, including its significant holdings of warehouses used by e-commerce companies. Roughly 90% of Blackstone’s office holdings target tenants in sectors the company says have remained strong. Much of the company’s U.S. residential portfolio is concentrated in suburban garden-style apartments where occupancy has remained more stable. Hospitality and retail, two of the most coronavirus-affected areas, make up 13% of Blackstone’s portfolio. Blackstone owns no enclosed U.S. malls. (WSJ+EarningsTranscript)
CoStar… Second-quarter sales were $35 million, down from $59 million a year ago.