Now in our fifth month with some degree of shutdown related to the pandemic, we're adapting swiftly to
evolving protocols and guidelines, ensuring our properties stay open, operational and safe for our tenants,
employees and service providers. Our rent collections have been exceptional. In the second quarter, we
collected 97% of our total rents, including 99% of office and 100% of studio rents, with these trends
continuing into July. This is a testament to the long-term nature of our office and now many of our studio
leases, and our very high-quality tenancy in both those segments. Our storefront retail tenants, which
comprise just under 3% of our total rent, are bearing the brunt of this temporary, but protracted crisis. In
recognition of the amenities and services these retailers provide for our tenants and our communities,
we’re working closely with them to find viable solutions.
Our company remains extraordinarily well-positioned, despite various headwinds and continued
uncertainty as to the duration of the pandemic and depth of the economic downturn. Our stabilized and in-service
office portfolios ended the second quarter at 95.1% and 94.0% leased. Our remaining 2020 office
lease expirations equate to just 3.6% of our ABR. Even so, we signed approximately 110,000 square feet of
new and renewal office leases in the second quarter, with cash rent growth of 21% aside from short-term
extensions. Our recently announced joint venture with Blackstone, which we expect to close imminently,
further fortifies our already strong balance sheet, reduces our funding requirements for future development,
and brings our liquidity to over $1.6 billion, with no maturities until 2022. In short, we’ve optimized financial
capacity and flexibility to fund our operations and/or to strategically expand our portfolio as opportunities
arise.
Victor Coleman
Chairman & CEO, Hudson Pacific Properties