Highwoods Properties Inc (HIW) Q4 2020 Earnings Call Transcript

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Highwoods Properties Inc (HIW -1.16%)
Q4 2020 Earnings Call
Feb 10, 2021, 11:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good.orning.nd.elcome.o.he.ighwoods.roperties.ourth.uarter.arnings.all..Operator.nstructions].s..eminder,.his.onference.s.eing.ecorded.ednesday,.ebruary.0th,.021.

I.ould.ow.ike.o.urn.he.onference.ver.o.rendan.aiorana..lease.o.head,.r..aiorana.

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Thank.ou,.perator.nd.ood.orning,.veryone..oining.e.n.he.all.his.orning.re.ed.linck,.ur.hief.xecutive.fficer;.rian.eary,.ur.hief.perating.fficer;.nd.ark.ulhern,.ur.hief.inancial.fficer.

As.s.ur.ustom,.oday's.repared.emarks.ave.een.osted.n.he.eb..f.ny.f.ou.ave.ot.eceived.esterday's.arnings.elease.r.upplemental,.hey're.oth.vailable.n.he.nvestors.ection.f.ur.ebsite.t.ighwoods.com.

On.oday's.all,.ur.eview.ill.nclude.on-GAAP.easures.uch.s.FO,.OI.nd.BITDAre..lso,.he.elease.nd.upplemental.nclude..econciliation.f.hese.on-GAAP.easures.o.he.ost.irectly.omparable.AAP.inancial.easures.

Forward-looking.tatements.ade.uring.oday's.all.re.ubject.o.isks.nd.ncertainties,.hich.re.iscussed.t.ength.n.ur.ress.eleases.s.ell.s.ur.EC.ilings..s.ou.now,.ctual.vents.nd.esults.an.iffer.aterially.rom.hese.orward-looking.tatements.nd.he.ompany.oes.ot.ndertake..uty.o.pdate.ny.orward-looking.tatements.

One.f.he.ost.ignificant.actors.hat.ould.ause.ctual.utcomes.o.iffer.aterially.rom.ur.orward-looking.tatements.s.he.ngoing.dverse.ffect.f.he.OVID-19.andemic.n.ur.inancial.ondition,.perating.esults.nd.ash.lows,.ur.ustomers,.he.eal.state.arket.n.hich.e.perate,.he.lobal.conomy,.nd.he.inancial.arkets.

The.xtent.o.hich.he.andemic.mpacts.s.nd.ur.ustomers.ill.epend.n.uture.evelopments,.hich.re.ighly.ncertain.nd.annot.e.redicted.ith.onfidence.ncluding.he.cope,.everity.nd.uration.f.he.andemic.nd.ts.ngoing.mpact.n.he..S..conomy.nd.otential.hanges.n.ustomer.ehavior,.mong.thers.

With.hat,.'ll.ow.urn.he.all.ver.o.ed.

Ted Klinck -- President, Chief Executive Officer and Director

Thanks,.rendan,.nd.ood.orning,.veryone..et.e.tart.y.aying,..ope.ou.re.ll.ell.nd.our.amilies.ontinue.o.e.afe.nd.ealthy..ur.uilding.ave.emained.pen.hroughout.he.andemic.ith.rotocols.n.lace.o.eep.ur.ustomers.nd.heir.uests.s.afe.s.ossible..cross.ur.ntire.ortfolio,.e.stimate.tilization.s.ow.5%.o%.n.verage,.p.lightly.rom.he.nd.f.ast.ear.s.e've.een..odest.ncrease.uring.he.ast.ouple.f.eeks.

In.eneral,.hile.t's.ifficult.o.raw.rends.cross.arkets.r.ub-markets,.here.s.igher.tilization.y.mall.nd.edium-sized.ompanies.han.arger.ompanies..e.ren't.ssuming..eaningful.ncrease.n.tilization.n.ur.ortfolio.ntil.he.econd.alf.f.he.ear.

As.entioned.n.ur.ast.all,.he.ighwoods.eams.cross.ur.arkets.ave.afely.eturned.o.he.ffice.nd.e've.eard.rom.any.f.ur.ustomers.ho.re.ager.or.heir.ull.eturn..s..entioned.ast.uarter,.t.emains.ifficult.o.redict.he.uration.n.he.everity.f.he.urrent.ecession.nd.hen.easing.ctivity.ill.ecover.

Overall.easing.olume.ipped.n.he.ourth.uarter,.owever,.ew.easing.olume.as.elatively.teady.t.60,000.quare.eet..hile.elow.ur.ong-term.uarterly.verage,.ew.easing.olume.as.ell.bove.he.ow.xperienced.uring.he.andemic..e.igned.ewer.enewals.uring.he.uarter,.artly.ue.o.ow.ease.xpirations..t.ear-end,.e.nly.ad.%.f.ur.evenues.xpiring.n.021.nd..3%.n.022..his.wo-year.umulative.xpiration.otal.s.mong.he.owest.n.ur.istory.

So.ar.his.ear,.e.re.eeing.ome.odest.reen.hoots.ith.egard.o.rospective.easing.ctivity..ince.anuary.st,.e've.lready.igned..00,000.quare.eet.f.ew.eases..e.ontinue.o.e.ptimistic.bout.he.ong-term.opulation.nd.ob.rends.n.ur.arkets..mall.nd.arge.sers.rom.utside.f.ur.ootprint.ontinue.o.eek.ffice.pace.n.ur.arkets.ith.ome.f.ur.ew.easing.ctivity.lready.n.021.ttributable.o.ut-of-town.sers.

Turning.o.ur.esults,.e.eported.020.FO.f.3.58.er.hare,.hile.ur.erformance.as.mpacted.y.he.conomic.isruption.aused.y.he.andemic,.e.ere.ble.o.eliver.er.hare.FO,.xcluding.ne-time.harges,.n.ine.ith.ur.riginal.xpectations.f.3.60.o.3.72.

Our.bility.o.ontrol.xpenses,.aintain.trong.ent.ollections.f.ver.9%,.eep.ur.uildings.pen.afely.nd.ontinue.o.dvance.ur.evelopment.rojects.n.ime.nd.n.udget.s..estament.o.he.enacity.nd.he.edication.f.he.ntire.ighwoods.eam.

Our.ourth.uarter.FO.as.0.87.er.hare,.ncluding..0.02.everance.harge.hat.as.ot.n.ur.utlook..ash.ent.preads.ere.lat.own.rom.he.id-single.igits.ver.he.ast.everal.uarters..he.equential.rop.as.ttributable.o..ew.hort.erm.eals.here.e.rovided.ggressive.conomics.o.upport.ccupancy,.hich.ad.n.utsized.mpact.n.ur.uarterly.tats,.iven.elow-average.olume..ccupancy.eld.teady.rom.he.hird.uarter.o.he.nd.f.he.ear.t.0.3%..ame.roperty.ash.OI.rowth.as..olid..7%.r..6%.xcluding.he.mpact.f.emporary.ent.eferrals.

As.n.side,.o.ate,.e've.lready.een.epaid.n.ore.han%.f.he.emporary.ent.eferrals.ranted.arlier.n.he.andemic..he.ositive.ame-store.esult.as.chieved.ven.hough.verage.ccupancy.as.own.30.asis.oints.ear-over-year.s.ur.verage.n-place.ents.ere.p..6%..igher.ents.ombined.ith.ight.ontrol.n.perating.xpenses.ere.ore.han.nough.o.ffset.ower.ear-over-year.ccupancy.

Turning.o.nvestments,.e.old.129.7.illion.f.on-core.roperties.n.he.ourth.uarter,.ll.n.reensboro.nd.emphis..e.ow.ave.nly.ne.ffice.roperty.n.emphis.nd.our.ffice.uildings.n.ne.ark.n.reensboro..ubsequent.o.ear-end,.e.old.00,000.quare.oot.uilding.n.tlanta.or.30.7.illion.hich.s..00%.eased.o.he.AA.

This.as.ur.nly.uilding.n.he.irport.ubmarket.n.tlanta..e.elivered.his.uild-to-suit.n.009.or..otal.ost.f.18.2.illion,.hich.urther.llustrates.he.alue.reation.rom.ur.evelopment.ctivities..e're.lanning.o.arket.dditional.on-core.roperties.s.e.ontinue.o.trategically.rune.ur.ortfolio.nd.mprove.he.verall.uality.

We.idn't.lose.ny.cquisitions.n.020,.ut.n.anuary.f.his.ear,.e.cquired.ur.oint.enture.artner's.5%.nterest.n.he.36,000.quare.oot.orum.ffice.ortfolio.n.aleigh.or.131.3.illion..e.ave.lanned.ighwoodtizing.hat.ill.ncrease.ur.nvestment.o.138.4.illion..e're.ullish.n.he.ong-term.pside.or.hese.ssets.iven.he.ide.rray.f.alkable.menities,.roximity.o.xecutive.ousing.nd.asy.ccess.o.aleigh's.ajor.horoughfares.

We.ontinue.o.valuate.dditional.cquisition.pportunities..ven.fter.he.orum.urchase,.e.ave.lenty.f.alance.heet.apacity.ith.ero.rawn.n.ur.evolving.ine.f.redit.nd.100.illion.f.ash.n.and..owever,.ricing.emains.ompetitive.or.he.ew.igh-quality.uildings.hat.ave.ome.o.arket.ince.he.andemic.tarted.

Rest.ssured,.e'll.emain.isciplined.llocators.f.apital.nd.eek.roperties.hat.e.elieve.ill.eliver.ppropriate.isk.djusted.eturns.ver.he.ong.erm.or.ur.hareholders..ur..2.illion.quare.oot,.503.illion,.9%.re-leased.evelopment.ipeline.emains.n.udget.nd.n.chedule..o-date,.e.unded.9%.nd.xpect.o.pend.he.ost.f.he.emaining.104.illion.y.he.nd.f.021..ur.ipeline.ill.rovide.ver.40.illion.f.nnual.OI.pon.tabilization,.nly.8.illion.f.hich.s.cheduled.o.e.ecognized.n.021.

Now.o.ur.021.FO.utlook.f.3.50.o.3.66.er.hare..n.020,.e.ere.ble.o.ffset.ower.arking.evenue.nd.ents.y.educing.pex..e.ssume.tilization.cross.ur.ortfolio.ill.emain.ow.n.he.irst.alf.f.his.ear.nd.radually.ncrease.ver.he.hird.nd.ourth.uarters..e.xpect.igher.tilization.ill.ause.perating.xpenses.o.ncrease.hile.e're.ssuming.arking.evenues.ill.e.lower.o.ecover..t.he.idpoint.f.ur.er.hare.utlook,.e.ssume.et.perating.xpenses.ill.e.0.06.igher.han.ast.ear.hile.arking.evenues.ill.nly.mprove.y.0.01..ver.ime,.e.xpect.arking.evenues.ill.ully.ecover.he.0.07.rop.e.xperienced.n.020..ame.roperty.ash.OI.rowth.s.rojected.o.row.%.o.%.n.021.

Our.utlook.or.ispositions.n.021.s.100.illion.o.150.illion.n.ddition.o.he.30.7.illion.ale.f.he.AA.uilding.ompleted.n.anuary..ur.cquisition.utlook.s.ero.o.200.illion,.hich.s.n.ddition.o.he.orum.cquisition..e.ave..laceholder.or.evelopment.nnouncements.f.ero.o.250.illion..e.ontinue.o.ave.onversations.ith.uild-to-suit.nd.re-lease.rospects,.ut.xpect.o.e.easured.ith.egard.o.021.evelopment.ommitments.

Before..urn.he.all.ver.o.rian,.'d.ike.o.eiterate.he.trong.inancial.nd.perating.erformance.e.elivered.n.he.idst.f.n.nprecedented.conomic.nvironment..ince.he.tart.f.he.andemic,.e've.ollected.9.9%.f.ents,.old.291.illion.f.on-core.roperties,.ept.ur.503.illion.9%.re-leased.evelopment.ipeline.n.ime.nd.n.udget,.nd.aintained..trong.alance.heet.ith.everage.f.6%.nd..ebt-to-EBITDAre.atio.f..imes.

Even.ith.he.ngoing.conomic.isruption.aused.y.he.andemic,.e.till.xpect.FO.er.hare.o.e.igher.n.021.ompared.o..ormalized.019,.he.ast.ull.ear.efore.he.andemic;.lus,.e.ave.ignificant.mbedded.rowth.otential.s.ur.evelopment.ipeline.elivers.nd.tabilizes,.arking.evenues.ecover,.nd.ccupancy.mproves.

We.re.ognizant.f.he.ear-term.hallenges.head,.ut.e're.onfident.e.ave.he.ngredients.o.rive.ustainable.rowth.ver.he.ong.erm..rian?

Brian Leary -- Executive Vice President and Chief Operating Officer

Thank.ou,.ed,.nd.ood.orning.ll..ur.6.illion.quare.oot.ortfolio.s.ell.alanced.cross.he.BDs.f.ur.arkets.nd.here.e.ave.xposure.o.any.f.he.est.ubmarkets.n.he.outheast..ur.iversification.s.urposeful;.cross.arkets,.cross.rban.nd.uburban.ubmarkets.nd.cross.ustomer.ize.nd.ndustry..his.alance.as.erved.s.ell.nd.rovided.oted.esiliency.s.e.osted.ealthy.ortfolio.etrics.n.020,.espite.he.ost.hallenging.f.acro.nvironments.

We.elieve.his.ill.rove.eneficial.s.he.ation.merges.rom.he.andemic.nd.ecession..he.ommon.elief.hared.y.ach.nd.very.ember.f.he.ighwoods.eam.s.hat.e.re.n.he.orkplace-making.usiness.nd.s.hrough.ur.ortfolio.hat.ur.ustomers.an.chieve.ogether.hat.hey.annot.part.

Before.umping.nto.he.uarterly.tatistics,.'d.ike.o.irst.eflect.n.ur.verall.020.erformance..e.ollected.9.9%.f.ents.ontractually.ue.ince.he.eginning.f.he.andemic..ote.hat.his.s.rom.ll.f.ur.ustomers,.ncluding.menity.etail,.estaurants.nd.o-working..his.oes.ot.nclude.he.ffect.f.emporary.ent.eferrals.hich.ave.otaled.pproximately.8.illion.nd.f.hich%.as.lready.een.epaid.

Even.ith.he.raditional.easing.nvironment.hut.own.or.hree.uarters.f.he.ear,.e.eased..8.illion.quare.eet.ith.ash.e-leasing.preads.f..ositive..6%.nd.et.ffective.ents.n.ine.ith.ur.igh.atermark.n.019..his.ositive.utcome.s..estament.o.ur.iversified.ortfolio's.esiliency.nd.ur.eam's.bility.o.everage.echnology.nd.eet.ur.ustomers'.eeds,.n.pite.f.he.hallenging.nvironment..e.chieved.hese.easing.esults.hile.pending.imited.easing.apex..e.nded.he.ear.ith.ortfolio.ccupancy.f.0.3%,.lightly.ower.han.e.xpected.t.he.eginning.f.020.

As.ed.entioned,.e.ave.nly.%.f.ents.xpiring.n.021.nd..3%.n.022.nd.e.ave.o.emaining.xpirations.n.ither.ear.reater.han.00,000.quare.eet..e're.tarting.o.ee.orward.omentum.n.easing.ctivity.cross.ur.arkets,.ased.n.he.elocity.f.nbound.nquiries,.he.umber.f.FPs.eceived,.nd.he.mount.f.ours.ccurring.n.ur.uildings..oupled.ith.he.ortfolio's.imited.ease.oll.nd..ew.ockets.f.igh.uality.acancy,.e're.ell.ositioned.o.apture.easing.emand.hen.he.ecovery.akes.old.

Focusing.n.he.ourth.uarter,.e.inished.he.ear.y.xecuting.66,000.quare.eet.f.econd-generation.eases,.ncluding.60,000.quare.eet.f.ew.eases..s.e've.entioned.reviously,.verall.olume.an.bb.nd.low.epending.n.xpirations.nd.enewals,.hile.ew.easing.rends.an.ften.e.ore.ndicative.f.arket.ctivity.

We've.een.leased.hat.ew.easing.olume.as.icked.p.easurably.ince.he.epths.f.he.andemic.n.he.econd.uarter..s.ed.oted,.e've.een.ood.ew.easing.olume.lready.n.he.arly.art.f.021.nd.e're.autiously.ptimistic.hat.ecent.ctivity.ill.ranslate.o.dditional.igned.eals.

We.osted.AAP.ent.preads.f..ositive..4%.nd.lat.ash.ent.preads..e.ade.he.onscious.ecision.o.rovide.ggressive.ease.conomics.n..ew.nstances.here.e.elt.t.as.mportant.o.aintain.ccupancy.r.ridge..ustomer.hrough.he.andemic,.nd.hile.hese.eals.ere.mall,.iven.he.imited.ease.olume.n.he.uarter,.hey.ad.n.utsized.mpact.n.eported.ent.preads.

Temporary.ent.eferrals.ranted.ince.he.tart.f.he.andemic.emain.tatic.n.he.uarter.t..2%.f.ur.nnual.evenues..or.ome.dded.olor,.e.onvened..ent.elief.ask.orce.tarting.n.arch.hat.et.aily.or.lmost.hree.onths..ome.ummer,.e.ere.ble.o.are.ack.ur.eetings.o.wice..eek.nd.e.ow.onvene.very.ther.eek.o.onitor.ustomer.rogress.nd.erformance.

I.ould.ike.o.ommend.ur.ocal.eams.own.o.ach.nd.very.ighwoods.roperty.anager.hose.n.lace.elationships.ere.ey.o.upporting.ur.ustomers.nd.esulted.n.est-in-class.ent.ollections.hroughout.he.andemic.

Now.o.ur.arkets,.hich.ontinue.o.arner.ational.ttention.or.heir.bove-average.opulation.nd.ob.rowth.orecast..heir.iscal.ealth.nd.ow.axes,.usiness.riendly.limate,.ack.f.ependence.n.ass.ransit,.ffordability.nd.verall.igh.uality.f.ife,.as.ccelerated.he.reat.igration.o.ur.ootprint..o.his.nd,.S.ews.nd.orld.eport.ists.hree.f.ur.arkets.n.he.op.ight.f.est.laces.o.ive.

Additionally,.reen.treet.ecently.dentified.aleigh,.harlotte,.ampa,.rlando.nd.ashville.n.he.op.uadrant.f.ational.ities.n.erms.f.oth.opulation.rowth.nd.ower.usceptibility.o.ork.rom.ome.isk.

Where.lse.o.tart.ut.ampa,.he.ew.uper.ity.y.he.ay.here.he.tanley.up,.merican.eague.ennant.nd.he.ince.ombardi.rophy.ll.all.ome.nd.here.uccess.n.he.ield.f.lay.s.egetting.uccess.n.he.alls.f.he.ity's.conomic.evelopers,.s.videnced.y.fizer's.ecision.o.reate..ew.00,000.quare.oot.nabling.unctions.ub.

Furthermore,.ampa.anked.umber.our.n.he.nited.tates.or.et.esidential.rowth.n.020..n.ddition.o.fizer's.ews,.isher.nvestments,..ighwoods.ustomer,.as.ade..arge.ommitment.o.rowth.n.ampa.nnouncing.he.lanned.ddition.f.00.obs.n.he.ear.head.

Moving.o.ur.ampa.ortfolio,.t.332.vion,.e're.eeing.olid.nterest.n.he.emainder.f.he.vailability.e.ave.here..lso.n.he.estshore.BD,.ur.50,000.quare.oot.idtown.est.evelopment.hat.its.bove.n.EI.nd.ext.o..hole.oods.arket,.hake.hack.nd.rue.ood.itchen.s.inishing.onstruction,.osting.ardhat.ours.nd.here.e're.eeing.olid.nterest.rom.rospects.

Now.o.aleigh,.here.e.aw.nother.uarter.ith.ositive.et.bsorption.nd.here.alifornia-based.ilead.ciences.ust.nnounced.he.ddition.f.75.ew.obs.ith.n.verage.nnual.alary.f.142,000.nd.ational.ortgage.ender.ennyMac.inancial.ervices.nnounced.22.ew.obs.ast.onth.

The.aleigh.easing.eam.igned.30,000.quare.eet.f.eals.n.he.uarter..ife.cience.sers.ontinue.o.e.he.ost.ctive.n.he.arket,.hough.e're.lso.eeing.ood.ctivity.rom.echnology,.inancial.ervices.nd.orporates..tlanta.lso.osted..ealthy.olume.f.30,000.quare.eet.ith.olid.ent.preads.nd.e.re.eeing.ncreased.rospect.ctivity.n.uckhead,.hich.e.elieve.an.ranslate.nto.igned.eases.ater.n.he.ear.

And.inally,.ack.own.o.entral.lorida.o.rap.p.n.rlando.here.e.eased.1,000.quare.eet,.ncluding.0,000.quare.eet.f.ew.eals..ur.BD.ortfolio.nd.pec-suite.rogram.here.re.eeing.ood.nterest.rom.rospects.cross..ombination.f.mall.nd.edium.ized.equirements..e.xpect.ccupancy.ill.ontinue.o.mprove.s.e.ove.hroughout.he.ear.

In.losing,.e're.ooking.orward.o.021.hen.e'll.eliver.ew.rophy.ssets.uch.s.surion's.eadquarters.n.ashville,.nd.here.e.re.ortunate.o.e.ell-positioned.ith.ur.ynamic.nd.rowing.arkets,.ur.igh.uality.nd.iversified.ortfolio,.ur.oster.f.trong.nd.erforming.ustomers.ith..imited.orward.ease.oll.cross..ide.rray.f.ndustries..ark?

Mark Mulhern -- Executive Vice President and Chief Financial Officer

Thank.ou,.rian.nd.ood.orning..n.he.ourth.uarter,.e.elivered.et.ncome.f.82.1.illion.r.0.79.er.hare.nd.FO.f.92.5.illion.r.0.87.er.hare..he.uarter.ncluded..ne-time.everance.harge,.hich.educed.FO.y.0.02.er.hare..or.ull.ear.020,.e.elivered.FO.f.3.58.er.hare..djusting.or.he.everance.harge,.ur.FO.as.n.ine.ith.he.idpoint.f.ur.pdated.020.utlook.rovided.n.ctober.

I'd.ike.o.ake..oment.o.eview.ur.020.esults.ompared.o.ur.riginal.xpectations..s..entioned,.e.eported.FO.f.3.58.er.hare..ncluded.n.ur.ull-year.umbers.ere.0.05.f.ne-time.harges,.he.0.02.everance.harge..entioned.arlier.hat.e.ook.n.he.ourth.uarter,.nd.0.03.ebt.xtinguishment.harge.e.isclosed.ith.ur.hird.uarter.esults..djusting.or.hese.tems,.ur.FO.ould.ave.een.3.63.er.hare.

In.ddition,.e.ad.153.illion.f.on-core.ispositions.nd.o.cquisitions.hat.ere.ot.n.ur.riginal.020.utlook,.hich.educed.FO.y.0.02.or.he.ear..lus.e.ncurred.0.01.f.dditional.nterest.xpense.rom.he.xcess.ash.e.eld.n.he.alance.heet.ollowing.ur.400.illion.ond.ffering.n.he.hird.uarter.

This.inancing.lso.asn't.ncluded.n.ur.riginal.FO.utlook..e.elieve.ll.f.hese.tems.on-core.ispositions,.btaining.ong-term.inancing.nd.educing.&A,.ill.enefit.he.ompany.ver.he.ong.erm..xcluding.hese.on-operational.tems,.ur.FO.ould.ave.een.igher.y.0.08,.r.3.66.er.hare,.hich.as.he.idpoint.f.ur.riginal.FO.utlook.

Given.he.conomic.arm.nd.isruption.o.ur.ndustry.aused.y.he.andemic,.e're.xtremely.leased,.ur.verall.inancial.erformance.as.enerally.n.ine.ith.ur.re-pandemic.xpectations.

Our.alance.heet.s.n.xcellent.hape..ollowing.he.cquisition.f.ur.oint.enture.artner's.5%.hare.f.he.orum,.e.ave.100.illion.f.ash.n.and.nd.othing.utstanding.n.ur.600.illion.evolving.ine.f.redit..e.nly.ave.ne.emaining.ebt.aturity.efore.ate.022,.hich.s.he.150.illion.emaining.n.ur..36%.nterest.ate.onds.hat.e.lan.o.ay.ff.t.ar.n.pril.

We.ave..ittle.ver.100.illion.eft.o.ully.und.ur.503.illion.evelopment.ipeline,.ost.f.hich.ill.e.pent.y.he.nd.f.his.ear..s.ed.entioned,.ur.everage.emains.ow.t.6%,.hile.ur.et.ebt-to-adjusted.BITDAre.s..imes..learly,.e.ave.lenty.f.iquidity.nd.mple.oom.o.ursue.dditional.nvestments.f.e.ee.ttractive.pportunities.

Turning.o.021,.n.ast.ight's.elease,.e.rovided.ur.nitial.FO.utlook.f.3.50.o.3.66.er.hare..his.ncludes.0.04.o.0.08.er.hare.f.ower.FO.ue.o.igher.nticipated.ear-over-year.perating.xpenses.s.e.ssume.igher.tilization.n.he.econd.alf.f.he.ear..e're.ptimistic.n.he.ong-term.rospects.or.ur.arking.acilities.ecovering.o.re-pandemic.evels,.ut.e.on't.xpect.ignificant.mprovement.n.021.

At.he.idpoint.f.ur.ange,.e.re.ssuming.ncreased.et.perating.xpenses.ombined.ith.igher.arking.evenue.ill.ave..0.05.er.hare.eadwind.ompared.o.020..nnualized.ilutive.mpact.f.he.153.illion.f.ispositions.ate.ast.ear.hat.ere.ot.ncluded.n.ur.riginal.020.utlook.s.xpected.o.e.ffset.y.he.ccretive.et.mpact.f.he.orum.cquisition.nd.he.FA.ale.n.021.

We.xpect.he.0.05.eadwind.rom.et.pex.nd.arking.evenues.n.021.o.ffset.he.ther.on-operational.harges.n.020..entioned.arlier.hat.re.ot.orecasted.o.ecur.n.021..s..esult,.e.xpect.verall.FO.esults.n.021.o.e.n.ine.ith.020.

Finally,.ast.eek,.e.nnounced..uarterly.ividend.f.0.48.er.hare,.hich.s.nchanged.rom.ur.rior.ividend..he.ast.ew.ears,.e've.nnounced.ividend.ncreases.n.onjunction.ith.ur.ourth.uarter.arnings.eleases..s..eminder,.ur.ividend.trategy.s.o.enerally.arget..evel.hat.pproximates.ur.axable.ncome.ver.ime.

Given.ur.ncome.rojections,.ombined.ith.he.ncertain.conomic.nvironment.round.he.andemic,.e.elieve.t.s.rudent.o.se.ur.xcess.ash.low.o.und.ur.evelopment.ipeline.nd.or.ther.nvestment.pportunities..e.ontinue.o.e.onstructive.n.he.ong-term.ash.low.utlook.f.he.ompany.nd.xpect.trong.ividend.overage.n.021.

Operator,.e.re.ow.eady.or.our.uestions?

Questions and Answers:

Operator

Thank.ou..Operator.nstructions].ur.irst.uestion.omes.rom.laine.eck.ith.ells.argo..lease.roceed.

Blaine Heck -- Wells Fargo Securities -- Analyst

Great,.hanks..ood.orning..aybe.or.ark.r.rendan,..ust.anted.o.ouch..ittle.it.ore.n.hat.eems.o.e..ittle.it.f..isconnect.etween..ot.f.ositive.ssumption.aked.nto.uidance,.ash.ame-store.OI.uidance.eing.ne.f.hose.ajor.ositive.nd.n.FO.hat's.elatively.lat.ear-over-year..s.here..aterial.ifference.etween.AAP.ame-store.OI.rowth.nd.ash,.iven.he.ecrease.xpected.n.traight-line.ent.r.re.here.ther.ns.nd.uts.hat.ight.elp.s.ridge.hat.ap?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Yeah..ey,.ood.orning,.laine,.t's.rendan..'ll.ake..tab.t.hat.nd.'ll.ry.o.un.hrough.ome.f.hese.tems..n.eneral.-.o.verall,..ould.ay,.es,.here.s..eaningful.ifference.etween.ash.nd.AAP.OI.rowth..o.e've.ot.t.he.idpoint,.s.ou.ointed.ut,.ash.OI.rowth.t.lus.%.t.he.idpoint.f.he.utlook,.hereas.AAP.s,.et's.all.t.lattish.o.aybe.ven.lightly.own..ittle.it.

The.iggest.rivers.n.hat.re,.here.s.-.he.hings.hat.re.n.AAP.hat.re.ot.n.ash.s.eally.ttributable.o..ot.f.he.urn-off.f.ome.f.he.traight-line.ent.nd.ree.ent.n.eases.hat.ere.one.ate.019.nd.arly.art.f.020..nd.o,.verall,.t.he.idpoint.e've.ot,.e.ave.bout..22.illion.ecline.n.erms.f.ur.xpectation.or.traight-line.ent.

Now..ortion.f.hat.s.ttributable.o.he.eferrals.hat.e,.he.emporary.ent.eferrals.hat.e.rovided.n.020..o.hat.s,.n..ear-over-year.asis,.e.ave.-.t's.bout..5.5.illion.enefit.o.ame-store.n.021..arking.evenue,.s.ark.entioned.n.is.emarks,.s.bout.1.illion.ositive..o.hat's.6.5.illion.ositive.n.ash.

That's.ssentially.ffset.y.he.igher.et.perating.xpenses,.hich.t.he.idpoint,.gain,.re.lso.bout.6.5.illion.egative..o.hose.wo.hings.ancel.ach.ther.ut.nd.o.e're.eft.ith.he.emaining.traight.ine.eduction,.hich.s,.all.t.bout.16.illion.r.17.illion.t.he.idpoint.f.he.utlook,.nd.hat.ll.alls.o.he.ottom.ine.rom..ash.erspective.

And.s..entioned.arlier,.t's.argely.ttributable.o..ot.f.he.easing.hat.e.id.ate.019.nd.020.here.hose.eases.ere.n..ree.ent.eriod.nd.hat.as.xpired..nd.robably.he.est.xample.f.hat.s.anatics.t.332.vion,.hich.-.hat.ease.ommenced.rom..ash.erspective.arlier.his.onth.

So,.'d.ay.hose.re.robably.he.ajor.rivers.n.erms.f.ositive.ash.ersus.he.AAP.umber..nd..hink.s.e've.een.tating,.ur.ash.low.ontinues.o.trengthen.ith.he.otation.f.he.ortfolio.nd.he.ood.easing.hat.e've.one..o..hink.e.eel.ood.bout.he.ong-term.ash.low.utlook.or.he.ompany.

Blaine Heck -- Wells Fargo Securities -- Analyst

Okay,.reat..hat's.eally.elpful.etail..nd.hen.long.hose.ame.ines,.gain,.e.ppreciate.ll.he.olor.ou.uys.ave.iven.n.uidance.nd.he.ecrease.n.traight-line.ent,.eems.ike.t.hould.e..ositive.or.AD.r.FFO.rowths,.ut.an.ou.lso.alk.bout.ow.ou.uys.re.hinking.bout.apex.nd.ow.hat.ight.rend.ear-over-year.nd.he.mplications.or.FFO.rowth.elative.o.hat.lat.FO.rowth.hat.our.uidance.mplies?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Yes..o,.e.ust.alked.bout.he.rop..o,.rom..ash.erspective,.s.e.hink.bout.ind.f.FFO.r.AD,.e.ust.alked.bout.he.-.t.he.idpoint.f.he.ange.22.illion.ind.f.rop.n.erms.f.traight.ine.ersus.-.020.ersus.021..o.hat's..ositive.or.AD.hat.s.ot.mpacted.n.erms.f.n.FO.r.AAP.umber.

In.ddition.o.hat,..ould.oint.ut,.e.pent.90.illion.f.easing.apex.hat.e.xpensed.n.020.nd.e.nly.ommitted.ess.han.50.illion.f.easing.apex.n.020..nd.ypically,.hat.e.ommit.oreshadows.ind.f.hat.e.pend.oing.orward.

Now,..hink.t's.nlikely.hat.e.ould.ave..40.illion.eduction.n.easing.apex.pend.ear-over-year...hink.hat's.robably.ore.ggressive.han.e.ould.ssume.nd.bviously.hat's.retty.umpy..ut.e.o.hink.hat.t's.ikely.hat.easing.apex.n.021,.t.east.n.he.ase.ase.hat.e've.aid.ut.n.he.uidance.utlook,.s.ikely.o.e..ittle.it.ower.han.hat.t.as.n.020.

And.o.he.ombination.f.ore.ash.rom.ents.hat.re.ommencing.nd.ikely.ower.easing.apex.eans.e.xpect.ividend.overage.s.ikely.o.mprove.s.e.hink.bout.021.ersus.020..nd.'d.gain.oint.ut.hat.e've.een.aying.hat.or..hile.hat.e.eel.ike.he.ash.low.utlook.f.he.ompany.s.trengthening,.o.e.hink.021.ill.e..ood.xample.f.hat.

Blaine Heck -- Wells Fargo Securities -- Analyst

Perfect..ast.ne.or.e,.aybe.or.ed.r.rian..an.ou.alk.bout.he.cquisition.rospects.ut.here?.re.ou.uys.ocused.n.ny.arket.n.articular,.ike.rowing.n.harlotte?.nd.an.ou.omment.n.hether.ou'll.e.ooking.t.ore.eals,.hich..hink.s.rian.entioned,.ake.p.he.ajority.f.eals.hat.re.eing.arketed.ight.ow?.r.o.ou.ave.nough.onviction.n.he.arkets.o.id.n.nything.hat.ight.ome.o.he.arket.ith..alue.dd.omponent.t.his.oint?

Ted Klinck -- President, Chief Executive Officer and Director

Sure,.laine..t's.ed..ook,..ean,.e.ook.t.verything.hat's.ut.n.he.arket.hether.t's.ore.alue.dd,.ore.lus,.pportunistic;.o.hat.e.ook.re,.s.t.n..BD,.s.t.n.sset.e.ant.o.wn.ong-term,.t.s.riced.ppropriately.n..isk.djusted.eturn.asis?.o,.s.ou.entioned.-.s.e've.aid.n.ur.repared.emarks,.ore.cquisitions.oday.re.ery.ggressively.ursued.nd.eally.asn't.een.ny.rice.eterioration.rom.tart.f.OVID.

And.hen,.n.he.alue-add.eals,.e're.ooking.t.ll.hose,.ut.t's.ot.o.e.riced.ight..o.e're.ooking.t.t.rom..ease-up.erspective,.hat.o.e.hink.arket.ents.re.oing.o.e?.learly.f.t's.n..arket.hat.e're.n,.e.nderstand.he.urrent.ynamics.f.he.easing.arket..o.f.e.an.nderwrite.t.ased.n.ur.ssumptions.hat.e.eel.ike.e.an.et..ood.isk-adjusted.tabilized.eturn,.e.ould.bsolutely.hase.alue.dd.s.ell.

Blaine Heck -- Wells Fargo Securities -- Analyst

All.ight..reat,.hanks.

Operator

Our.ext.uestion.omes.rom.anny.orchman.ith.iti..lease.roceed.

Emmanuel Korchman -- Citigroup -- Analyst

Hey,.ood.orning.veryone..rendan,.t.he.eginning.f.our.cript,..hink.ou.ent.hrough..ew.isks.hat.ould.ome.rom.he.andemic.nd.he.otential.ressure.n.enants.rom.hat..n.our.0-K,.ou.ad.imilar.anguage..ow.re.ou.hinking.bout.ort.f.hose.igger.isks.ersus.ow.ou're.lanning.or.hether.t'd.e.he.ear.r.he.ext.ouple.f.ears?

Ted Klinck -- President, Chief Executive Officer and Director

Yeah,..ean.he.isk.actors.-.anny,.his.s.ed..bviously,.he.isk.actors.e'd.ut.n.he.0-K,.t's.ort.f.ust.equired..o.e've.ot.o.eally.ut.he.itchen.ink.n.here..o.ook,.e.-.ur.utlook.hat.e've.ot.n.ur.uidance.eflects.he.urrent.ituation.e're.n..e're.n..ecession..e're.till.n.he.iddle.f.OVID..o..hink.he.ay.e.ut.ur.uidance,.he.ange.e.ut.ut.eally.actors.n.ll.f.he.isk.actors.hat.e've.aid.ut.n.he.0-K..t's.ust.actors.ased.n.here.e.re.n.oday's.nvironment..id..nswer.our.uestion?

Emmanuel Korchman -- Citigroup -- Analyst

Yeah,..hink.o..ou.alked.bout.ome.ut-of-towners.ooking.t.pace.n.our.ortfolio..re.he.haracteristics.r.ort.f.he.equirements.f.hose.ny.ifferent.rom.he.nd.arket.sers.hat.ou're.alking.o.Indecipherable]?

Ted Klinck -- President, Chief Executive Officer and Director

No,.ot.eally..gain,.t's..ombination.f.maller.ompanies.hat.re.ooking.o.xpand.heir.ffice.ere,.ust.ccess.o.alent.nd.abor..t's.he.ame.hing.e're.eally.eeing.or.any.ears.ow.

In.he.arger.ustomers,.t's.he.ame.hing...ean.f.ou.ust.hink.bout,.ust.n.he.ast.ouple.f.eeks,.here.as.een.hree.nnouncements.n.ur.arkets..he.ew.nbound.nnouncements,.wo.n.aleigh..ilead.s.reating.75.obs.nd.ennyMac.s,..hink.22.obs..oth.f.hose.nnouncements.ere.n.he.ast.eek.r.o.

They.oth.ited,.t's.ll.he.hings.e.alk.bout,.he.igration.o.he.outheast,.t's.he.igh.uality.alent,.ow.ost,.ow.ax,.igh.uality.f.ife.nd.ll.hat..o..hink.hey're.ooking.o.ust.ccess.hat.nd.et.ut.f.ome.f.he.igher.tate.-.igher.ost.ities.

Brian Leary -- Executive Vice President and Chief Operating Officer

Hey.anny,.t's.rian..aybe.ust.o.ile.n..ittle.it.nd.e've.alked.bout.his.reviously...hink.hat.e're.earing.nd.eeing.s.hat.hile.rior.o.he.andemic,..ot.f.hese.oves.ight.ave.ust.een.round.ffordability,..ot.f.hese.onversations.hat.e're.earing.ow.s.eally.bout.he.alent.nd.f.e.emember.ind.f.%.f.n.rganization's.nnual.nvestment.nd.heir.usinesses.s.round.tilities,.%.s.n.he.eal.state,.ut%.s.n.heir.alent.

And.o,.hey're.eeing.hat.hese.arkets.nd.hen.ubmarkets.r.BDs.re.he.laces.or.hem.o.etain.nd.ecruit.he.alent.oing.orward..nd.o.rom.hat..hink.hat.e.ear,.t's.eally.%.ind.f.ecision.aking.hat.upports.heir.%,.hich.bviously.hese.arkets.re.ompetitive.rom.n.ffordability.tandpoint.

Emmanuel Korchman -- Citigroup -- Analyst

Thanks,.rian..nd..ave.ne.ore.or.ou,.ou.alked.bout.he.%.olling.n.21.nd.gain.n.22,.f.ou.ad.o.redict.ow.uch.f.hat.ecomes.ort.f.ypical.ong-term.easing.ersus.he.horter.erm.hat.ed.o.ou.now.ay.e.ome.xtra.nfluence.n.he.Q.umbers..hich.ay.ould.ou.ean.n.hat.%.xpiring.his.ear?

Brian Leary -- Executive Vice President and Chief Operating Officer

Well,.ood.uestion..ell,.ne.hing..ight.lso.ust.ut.s..ootnote.o.our.uestion,.anny.s.he.mount.f.irms.hat.e're.till.eeing.ind.f.oming.ut.f.he.pace.nd.aybe.oing.o.ork.rom.ome,.ost.f.hem.n..emporary.asis.re.till.ery.mall.n.umber.nd.ize,.,500.quare.eet,.,700.quare.eet..f.hey're.till.n.usiness,.ll.f.hem.re.aying.hat.hey.lan.n.oming.ack,.ut.hey.ave.he.bility.nd.lexibility.o.ait.t.ut.

So.e.re.eeing.nterest.f.hose.hat.re.ooking.o.ind.f.enew,.ooking.t.onger.erms,.ecause..hink.olks,.et's.e.onest,.t's..ittle.it.ore.f..enants.arket.nd.hey.ee.he.pportunity.o.ind.f.ake..ommitment.ong-term..e.ren't.eeing.econfigurations.articularly,.olks.ind.f.ownsizing...hink.hey're.alancing.he.eed.or.aybe.ore.quare.eet.er.erson.nd.heir.lans.or..lexible.orkplace..ut..hink.e'd.ee.hat.airly.onsistent..rendan,.o.ou.ave.he.erspective.n.hat.s.ell?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Yeah,.anny,..hink.ikely.t.east.hat's.ind.f.ur.ase.ase.xpectations.s.hey'll.robably.e..omparable.mount.n.he.uarters.t.east.s.e've.ind.f.aid.ut.he.xpectations.or.021..o..on't.hink.e.xpect.ome.ajor.nap.ack.n.erms.f.et.ffectives.r.ease.erms.xtending.ut,.ut.e'll.ee.ow.hat.lays.ut.nd.hat's.art.f.he.eason.hy.e.ave..ange.f.ossibilities.n.ur.021.utlook.

Emmanuel Korchman -- Citigroup -- Analyst

Great,.hanks.ll.

Operator

Our.ext.uestion.omes.rom.amie.eldman.ith.ank.f.merica..lease.roceed.

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Thank.ou..ood.orning..o..uess,.ticking.ith.he.21.utlook,.aybe.f.ou.ould.ust.alk.s.hrough.ow.ou.ot.o.our.ase.ase.eneral.ssumptions.nd.aybe.here.here.s.eaningful.oom.or.pside.r.otentially.ownside..he.ey.otential.-.he.ey.rivers.hat.ould.eally.ove.umbers?

Ted Klinck -- President, Chief Executive Officer and Director

Yeah,.amie..'ll.tart.nd.aybe.urn.t.ver.o.ark.r.rendan...ean.ook,.bviously,.he.ase.ase.s.e.tarted,.eally.t's.o.ifferent.han.ny.ther.ear..o.ort.f..ottoms-up.rom..easing.tandpoint,.o.e.it.hat..nd.hen.his.ear.t.as.ooking.ittle.ore.ifficult.n.he.pex.ide,.ust.iven.OVID.

Last.ear.as.ot..ormal.ear.n.he.pex.ide,.n.he.arking.ide..o.t.as.-.irtually.verything.e.o.s.ottoms-up.nd.rilling.own.nto.uilding-by-building,.ine.tem-by-line.tem.n.he.udget..o.hat's.ort.f.ust.n.verview..nd.hen.rendan,.o.ou.ant.o.un.hrough.ort.f.he.eat.f.t.

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Sure,.amie..eah,..ean.s.e.ried.o.ay.ut.n.he.ress.elease,..hink.e.ook..airly.onservative.iew.ith.espect.o.pex,..hink.pex.-.he.ncrease.n.pex.s.ot.inear.o.he.ncrease.n.tilization.f.he.uildings.nd.o.hat's.hy.e.aw.t.he.idpoint,.bout..0.06.eadwind.n.021.ersus.020.ven.hough.e.on't.xpect.tilization.o.mprove.ignificantly.ntil.he.ack.alf.f.he.ear.

And..ould.ay.hat.hat.eneral.utlook.ith.espect.o.tilization.imics.he.easing.ssumptions.hat.e.ave.n.ur.utlook.ange..o,.e.on't.ave.-.e.on't.xpect..ot.f.ease.p.o.appen.nd.hat's.ikely.o.appen.or.s.n.ccupancy.s.e.ill.robably.ave.ccupancy.ip.n.he.irst.uarter,.hat.s..ormal.easonal.attern.or.s.nd.hen.ften.hat.appens.n..ormal.ear.s,.e.ake.hat.ack.p.n.he.emaining.hree.uarters.f.he.ear..his.ear,.e.hink.hat.t.ill.ip..ittle.it.nd.hen.robably.ot.ake.early.s.uch.f.hat.ack.s.e.ften.o.n..ormal.ear.

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Okay..kay,.hat's.elpful..nd.hen,.s.e.hink.bout,.ublease.as.een.ising.n.ome.f.our.arkets.s.ell.s.ome.f.he.arkets.e.ear.bout.here.t's.eally.piked..an.ou.ust.alk.bout.ow.uch.ou.hink.hat.pace.ill.mpact.arket.onditions.nd.conomics.oing.orward.nd.ow.uch.ou.hink.s.oing.o.ome.ight.ack.ff.he.arket.s.oon.s.hings.eopen?

Ted Klinck -- President, Chief Executive Officer and Director

Sure..'ll.tart.nd.aybe.rian.an.ump.n.o.dd.dditional.olor..bviously,.ublease.pace,..hink.t's.ising.n.aybe.ll.ut..ouple.f.ur.arkets..e've.een.ome.ublease.pace.s.ompetitive..e.-.n.act.ver.he.ast.ine.onths,.e've.ost..ouple.f.eals.o.ublease.pace,.ut.t.he.ame.ime,.ot.ll.ublease.pace.s.reated.qual.

Some.ave.hort.erms,.he.essor.ay.ot.rovide.Is,.here.s.o.enewal.ptions.n.ost.f.his.tuff..e've.ctually.ven.eard.rom.rokers.hat.ompanies.re.ust.utting.t.ut.here.ecause.hey're.ot.t.ork.ight.ow.nyway..o.hey're.ust.utting.t.n.he.ublease.arket.o.ee.f.here's..aker..ut.hey.hink.he.ompany.s.ctually.oing.o.eed.t.hen.hey.ome.ack.o.he.ffice.

Look,..hink.he.ther.ssue.s,.reditworthiness.f.he.ub-landlord.s.lso..uestion.hese.ays..e've.eard..ittle.it.bout.he.ub-tenants.re.orried.bout.hat.f.he.rimary.enant.oes.ankrupt,.hat's.oing.o.appen.o.heir.ent.nd.ll.hat?.o,.gain,.hile.here.s.efinitely.ome.ompetitive.ublease.pace,.ot.ll.f.t.s..o.ow.hat.lays.ut,.t's.ort.f.uilding-by-building,.ublease-by-sublease..ut..hink.ome.s.ompetitive,.ome.s.ot.

Brian Leary -- Executive Vice President and Chief Operating Officer

Hey.amie,.rian.ere..ood.orning..o.ed's.oint,.t's.ind.f..road.pectrum,.ust.o.ive.ou.ome.ullet.oints,.ichmond.nd.ittsburgh.otal.ublease.pace.as.own..n.act,.LL.s.alling.or..6%.f.ichmond.ublease.o.e.bsorbed.n.he.irst.alf.f.21;.tlanta,.here.t.ight.ook.ike..arge.ominal.umber,.umberland,.uckhead,.idtown.ublease.pace.s.ll.own.

The.ublet.pace.omes.ith.ome.nteresting.andcuffs.oo.n.erms.f.ho.oes.n.here?.s.he.ub-lessor.eady.o.rite..heck.or.I.r.ot?.nd..hink..ot.f.t.s.pportunistic..e.aven't.een.t.rag.ny.undamentals.own.et.n.erms.f.ompetitive..nd.t's.cross.he.oard,.aybe.necdotally.ne.r.wo,.ut.t's.bviously.omething.e.re.racking.aily,.n.act.

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Okay,.hat's.elpful...ean,.re.here.ertain.arkets.ou're.ore.oncerned.han.thers?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

I.on't.hink.-..on't.hink.o..e.-.aybe..uarter.r.o.go,.e.ight.ave.aid,.ook,.tlanta.ooks.ike.hey.ave..ot.f.ublease.pace.nd.hen.ou.tart.eeing.t.isappear.n.he.ub-markets..ou.ook.t.ighwoods.ortfolio.lone,.ur.ublease.pace.ithin.ur.ortfolio.as.one.own.n.tlanta.nd.n.ittsburgh,.n.ichmond...hink.e're.ooking.cross.he.oard..ur.revious.arkets.hat.ere.nd.ontinue.o.e..ot.f.he.reas.f.nbound.ctivity;.tlanta,.ashville,.aleigh,.ampa,.hat's.lso.here.e're.atching.he.ublease.pace.row.nd.ompete.

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Okay..nd.hen.inally,.ou.ad.entioned.olid.nterest.or.332.vion..idtown.est,.an.ou.ust.alk.bout.hat.hat.ipeline.eally.ooks.ike.nd..uess.hrow.irginia.prings.nto.hat.ix.s.ell?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Sure,.amie...ouple.f.hings,.f.ou.ook.t.hose.wo.ampa.ssets,.e.ust.inished.onstruction.f.-.epositioning.f.vion.nd.o.t.asn't.eally.ven.vailable.o.e.een.nd.ow.hat.t's.ind.f.-.t's.ust.ind.f.hiny.nd.enew..here.s.een..ot.f.reat.nterest.nd.here's.hree.otels.ight.ext.o.t..here.s..orld.f.eer.hat's.till.retty.opular..o.e're.etting.ome.ood.raction.here..lus.here.s.-.ou've.ot.anatics.n.he.uilding,.howing.t.eing.sed.nd.t's..ery.ind.f.oung.nd.xciting.ompany,.o.t.efinitely.hows.ell.

Let's.o.nto.idtown,.ow..ave.xperience.ver.y.5.ears.orking.n.hese.ind.f.omplicated.ixed.se.evelopments.nd.hat's.o.ey.s.elivering.nough.ritical.ass.t.nce.o.ind.f.reate.hat.hey're.here.nd.hat's.ne.hing.hat.idtown.s.ctually.oing..o.he.wo.otels.pened.p.ight.efore.he.uper.owl,.he.estaurants.re.inishing.p.nd.o.idtown.asn't.ven.eally.een.pen.or.eople.o.xperience.hat.ive,.ork,.lay.spect.f.t.

So.ow.hat.e.ave.he.levator.ork.nd.e.an.ake.eople.n..ard.at.our,.here.s..ot.f.olks.oming.ow.nd.o.e're.oving.he.arketing.enter.nto.he.uilding.rom..railer.nd.o.hat.s.eal..nd.aving.xperience.ike.his.n.ther.arkets.nd.ther.rojects,.nce.t's.ctually.pen.nd.eople.an.alk.he.treets.nd.o.o.hake.hack.nd.hen.atch..oncert.n.he.ark,.t.ill.eally.et.ts.ea.egs.nder.t.

Just.s..eminder,.idtown.s.elivering.n.he.econd.uarter.f.his.ear..e.on't.nder.-.e.aven't.nderwritten.t.o.tabilize.nto.he.ourth.uarter.f.22..nd.o,.o.our.oint.n.irginia.prings.n.rentwood.nd.ashville.hat.ust.ecently.elivered.nd.e've.ind.f.rojected.hat.o.tabilize.n.he.hird.uarter.f.22.

And.ts.ister.uilding,.irginia.prings.,.s.ou.now.s.ull.ext.oor,.nd.o,.hose.wo.uildings.oming.ogether.ow.ave..hole.et.f.utdoor.menities..e're.ursuing.ome.dditional.ertifications.or.hat.uilding.hat.e'll.e.haring.ith.he.arket..nd.o.t's.he.est-in-class.uilding.n.he.ntire..2.illion.quare.oot.rentwood.ubmarket.

So.ow.hat.ou.an.ctually.how.eople.he.pace,.et.hem.ut.here,.he.eam.-.ll.eams.n.ampa.nd.ashville.ave.een.ery.usy.ith.ours.nd.nbound.nterest.n.hose.wo.r.hree.ssets.ctually.

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Okay..o.ou're.aying.irginia.prings.s.eeing..imilar.ptick.n.nterest.s.he.ther.wo.ou.entioned?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

I.hink.o...hink.t's.ifferent,.ight..rentwood.s..ifferent.ubmarket,.ery.uburban.riveable.urface.art,.table.ind.f.ubmarket.nd.hen.idtown.s..ery.hiny.nd.ew.ynamic.estshore.arket..nd.o.t's..ittle.ifferent.ibe.n.rentwood,.ut.e.lso.ave.ome.igger.sers.ho.ould.ake..ouple.f.ifferent.loors..o..hink.t's.ifferent,.ut..-.e're.appy.ith.he.ctivity.hat's.ccurring.ight.ff.he.at.n.21.

Ted Klinck -- President, Chief Executive Officer and Director

Yes,.o.amie..ooking.t.he.rospects.heet,.e've.ot.bout.80,000.quare.eet.f.rospects,.ome.f.hose.re.ub-specs.s.ell.ight.ow.here.he.eople.hat.re.ouring.r.he.rokers.ave.sked.or.rochures,.nformation.n.ricing.nd.ll.hat..o.t's..retty.olid.ist.ust.iven.hat.e're.till.n.he.andemic.nd..ot.f.ompanies,.specially.he.igger.ompanies.rian.lluded.o.ren't.aking.hose.ypes.f.ecisions.et..ust.o.et.he.nquiries,..hink,.s.ood.

In.ampa,.ur.rospect.ist.s.ight.t.00,000.eet..ctually,.ost.f.hose.ave.ctually.one.he.ard.at.ours.nd.oming.ack.or.ither.econd.ours.r.sking.or.ore.nformation.s.ell..o,.he.ctivity.as.ignificantly.icked.p.rom.hat.t's.een.ver.he.ast.ix.onths.nd.oth.hose.ssets,.gain,.s.hey.et.ompleted,.ou.an.ee.hat.hey're.oing.o.ook.ike.nd.hat.he.urrounding.rea.s.ike..o,.'m.ncouraged.ut.gain,..ouldn't.ay.nything.s..trong.rospect.et,.ut.e.ike.he.eneral.ctivity.

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Okay..ll.ight,.hank.ou.

Operator

Our.ext.uestion.omes.rom.ob.tevenson.ith.anney..lease.roceed.

Robert Stevenson -- Janney Montgomery Scott -- Analyst

Good.orning,.uys..rian,.an.ou.alk..ittle.it.ore.bout.our.arket.xpectations.or.021..verall,.he.est.arkets.n.021.e.he.ame.rom.020,.ou.xpecting.ny.eaningful.mprovement.r.eterioration.n.ny.arkets?

Brian Leary -- Executive Vice President and Chief Operating Officer

So,.ey,.hanks.or.he.uestion..ob,.aybe.aking.hat.ast.art.f.he.uestion.irst..o,..on't.hink.e.ee.ny.otable.r.xpected.eterioration.n.hese.arkets.cross.he.oard.nd.hose.hat.ere.erforming.ell.re-pandemic.ave.een.ccelerated.nbound.nterest..nd.o,.hile.here.as.ore.f..atural.low,.ooking.t.he.reat.igration...hink.e're.eeing.n.ncrease.

Again,.he.conomic.evelopers.re.aying.hey've.ever.een.usy,.he.ipeline.as.ever.een.ore.ull,.he.rospects,.o.ed's.oint,.nd.uspects.ave.een.usy..o.tlanta.as.bviously.een..umber.f.ins.here,.icrosoft.sn't.ust.rowing.y.,500.eople.n.idtown,.hey're.uying.and.o.he.est.ide,.he.merging.rea..hey're.oing..loud.omputing.enter.outh.f.own;.ashville,.e're.eeing.ots.f.nbounds.rom.he.est.oast.nd.hicago.olks.oming.n.hrough.ur.ind.f.ifferent.ields.s.e.ave.ut.here;.nd.hen.bviously.aleigh.ith.he.ife.cience.nd.echnology.nbounds.

We're.alking.illions.f.ollars.f.ew.nvestment,.ome.hat.robably.ren't.ven.etting.bove.he.old,..ean,.piJect.accine.s.uilding..igafactory,.t's.n.800.illion.nvestment..t's..illion.quare.oot.acility.ere.n.aleigh..t.ill.ave.50.obs..hey.ill.e.ble.o.reate.5.ifferent.rugs.imultaneously,..illion..ay.f.re-filled.njectors...ean.ust.tuff.ike.hat.s.appening.n.aleigh.hrough.he.andemic.

And.hen.ook.t.ampa,.ampa.inning.fizer's.nterest.n.n.nvestment.f.ver.00,000.quare.eet.nd.hat's.-.an.e.nderstated.n.erms.f.ampa.s.ow.oining.ind.f.lite.ompany.n.his.ountry.f.inning.ind.f.he.conomic.evelopment.ompetition.

Robert Stevenson -- Janney Montgomery Scott -- Analyst

Okay...ean..uess.s.art.f.hat...ean,.hich.arkets.o.ou.ave.hat.re.xpected.o.e.t.r.bove.he.ort.f.%.igh-end.ame-store.OI.rowth.ange.nd.hich.arkets.re.oing.o.e.elow.ort.f.%.s.e.tart.hinking.bout.he.ontributions.o.arnings.n.021?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Hey.ob,.t's.rendan..eah,.t's.robably,.rom..ash.erspective,.hich.s.here.e.rovide.he.utlook...hink.t's.oing.o.e..ittle.it.ore.sset.pecific.ssociated.ith.ome.f.hat.onversion.f.traight-line.ent.o.ash.ent..o..entioned.332.vion.robably.e.he.argest.xample.f.hat.

Also,.nother.sset.n.ampa,.here.here.s.-.here.as.traight-line.ent.hat.ill.onvert.o.ash.n.021.ompared.o.020..tlanta.as..ouple.f.ssets.hat.re.n.hat.ategory.s.ell..o.hose.ill.robably.e.he.ajor.nes.s.'m.ort.f.unning.own.he.ist.ere,.ut.t.ill.e..ittle.it.ore.sset.pecific.han.t.ould.e.ecessarily.riven.y.arket.ynamics.

Robert Stevenson -- Janney Montgomery Scott -- Analyst

Okay..nd.hen.ast.ne.rom.e..ow.re.ou.uys.hinking.bout.he.emaining.V.ssets?.re.here.ore.uying.pportunities.n.here?.s.here..ource.f.ispositions.n.021.here.ontinue.o.ust.old.n..nd.an.ou.emind.e.f.ny.f.he.Vs.re.oming.p.n..unset?

Ted Klinck -- President, Chief Executive Officer and Director

Sure,.his.s.ed..e've.eally.nly.ot.ive.uildings.eft.n.Vs.nd.hree.Vs.e.till.ave,.ust.o.emind.ou.hat.hey.re,.e've.ot..hree.uilding.V.ith.ur.ustomer.n.ichmond.nd.hat's.-.o.n.ata.n.hat.ne..e've.ot..V.n.idtown.evelopment.roject.s.ell.n.ampa..o.hat's..econd.V.nd.he.hird.s,.e.till.ave..0-50.V.ith..ocal.artner.n.ansas.ity.

I'd.ay.f.here.s.ny.f.he.hree,.he.ansas.ity.ne.ets,.iven.hat.e've.old.he.laza,.ill.e.ne.hat.e.ould.xit.ut.f,.ut.nlikely.rom..uy.erspective..own.he.oad,.bviously,.e're.oing.o.ant.o.wn.00%.f.idtown.ampa.nd.hat's.rovided.or.ith.ur.evelopment.artner..ut.ther.han.hat,.ichmond,.e'd.uy.hose.ssets..ut.t's.-.gain.he.Vs,.o.ime.oon.robably.e're.oing.o.nwind.hat.

Robert Stevenson -- Janney Montgomery Scott -- Analyst

Okay,.hanks.uys..ppreciate.t.

Operator

Our.ext.uestion.omes.rom..ave.odgers.ith.aird..lease.roceed.

Dave Rodgers -- Robert W. Baird -- Analyst

Hi.uys,.hanks.or.ll.he.nformation.o.ar..rian,.aybe.anted.o.o.o.ome.f.he.xpirations.nd.he.enewals.hat.ou're.oing..ne,.ou.entioned.othing.ver..00,000.quare.eet.oming.p.ere.n.he.ear-term..f..emember,.ou.ad.ike.hree.0,000.quare-footers.ay.e.olling.ut..s.hat.umber.rowing,.hanging,.volving?

And.hen.aybe..econd.ore.ualitative.uestion.n.he.xpirations.nd.enewals,.re.ou.aving.iscussions.or.wing.pace?.o.eople.ant.o.edo.heir.pace?.re.hose.iscussions.appening.r.s.t.ust.Hey,.'m.ontracting,.'m.xpanding.nd.'m.xiting".ithout..eally.epurposing.f.he.pace?

Ted Klinck -- President, Chief Executive Officer and Director

Hey.ave,.t's.ed..'ll.aybe.tart.ut.nd.rian.an.ump.n..n.erms.f.he.xpirations.e.ave.emaining.or.his.ear,.here.s..5,000.ooter,.hat's.t.he.ery.nd.f.he.ear.n.ecember,.ecember.st.ctually..nd.hey.-.hey're.till..rospect.o.enew..t'd.e..ownside.f.hey.enew..hat's.ot.OVID.elated.ownside,.t's.omething.e've.nown.as.een.ut.here.or..hile.

Then.e've.ot.eally.wo.ight.t.0..ne.f.he.0s.s.n.eptember.hat's.ikely..own-size..e.hink.e've.ot..ecent.hance.f.enewing.hem.or.ne.loor..nd.hen.e.ave.nother.8,000.hat.ust.eft.n.ebruary.st,.nd.e've.lready.ackfilled.bout.,000.eet.f.hat..o.hose.re.eally.he.ast.emaining.hree.e've.ot.or.his.ear.hat.re.n.hat.lide..fter.hat.t.ets.own.o.bout.5,000.eet.r.o.

In.erms.f.wing.pace,.o.enew.t,.o.edo.heir.pace,.e've.eally.ust.ot.een.uch.f.hat.et..t's.-.ompanies.re.till.olding.ack.eciding.hat.hey're.oing.o.o..he.mall.ompanies,.ost.f.hose.olks.re.lready.n.ard.all.ffices..heir.ensity.s.ot.ery.reat.nyway..o.hey're.ot.oing.o.edo.t.

The.igger.ompanies.hat.re.-.ave.ore.ense.pace,.hey're.till.iguring.t.ut..ot.f.hem.o.ant.o.pend.oney.et..gain,.t's.he.ame.hing.e've.een.eeing.or.eally.he.ast.ine.onths..hey're.aiting.o.et.heir.mployees.ack,.hey're.ertainly.lanning.ehind.he.cenes,.ut.here.asn't.een.ny.ass.nbound.alls.or.s.o.elp,.ive.hem.apital.o.edo.heir.pace.r.hings.ike.hat.

Brian Leary -- Executive Vice President and Chief Operating Officer

Hey,.ave,.ust.o.ind.f.ot.o.ontradict.hat.ed.aid.y.nyways,.ut.here.re..ew.hat.re.ot.n.his.pace.ow.orking.rom.ome.hat.ee.his.s.n.pportunity.o.aturally.o.ork.n.heir.pace.nd.ot.ecessarily.ut.lexiglass.nd.pread.ut..ut.t's.ime.-.hey've.een.n.his.pace.or..hile,.ime.o.pgrade.nd.educe..o.e.ave.een.ome.olks.eing.pportunistic.nd.aid.Hey,.ight.ow.e.on't.ave.o.o.hrough.he.ightmare.f.ind.f.edoing.ur.pace,.hile.e're.n.t.".nd.o,..hink.ome.olks.re.ealizing.here.s.n.pportunity.o.o.hat.

Dave Rodgers -- Robert W. Baird -- Analyst

That's.elpful,.hanks.or.hat..nd.aybe.ark.r.rendan,.t.ook.ike.here.as.aybe..1.5.illion.r.o.f.ost.evenue,.hether.t's.ad.ebt.r.traight-line.ent.rite-off.n.he.ourth.uarter..an.ou.onfirm.ind.f.here.hat.as?.nd.hen,.hat's.he.xpectation.n.our.uidance.or.021.or.ny.ind.f.ad.ebt.r.osses.r.re.hose.argely.ut.f.he.ix.t.his.oint?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

I'll.tart.ith.hat...hink.ark.s.onfirming.he.-.hat.ourth.uarter.umber..hat.ounds.bout.ight.ut..hink.e'll.ive.ou..onfirmation.n.hat.umber..n.erms.f.21.xpectations.s,.t.east.n.he,.et's.all.t.idpoint.f.he.utlook.s.ore.f..ormalized.ear..o.t.ould.e.ore.omparable.o.019.s.pposed.o.020.nd.020.asn't..ear.hat.as,..ould.ay,.ramatically.ifferent.rom..traight-line.ent.rite-off.erspective,.ut.t.as..ittle.it.igher.han.ormal.o.he.une.f,.all.t.aybe.3.illion.o.4.illion.igher.han..ormal.ear...hink.or.021,.e.xpect.t.o.e.ack.n.ine.ith.he.019.evels.nd.rior.ears.

Mark Mulhern -- Executive Vice President and Chief Financial Officer

Yeah,.ave..he.nly.hing.'d.ay,.dditive.s,.eah,.e.id.ave.hat.1.illion,.ou're.orrect.n.hat..e.id.ave,.s.ou.now.menity.-.ome.o-working.nd.ome.menity.-.etail.menity.ustomers.hat.e.ad.ome.rite-offs.one.uring.he.ear,.ut.ur.ollections.ere.ontinuing.o.e.eally.trong,.bviously.he.9%-plus.umbers.e've.uoted.o.ou.

Our.atch.ist.oesn't.eally.ave.ny.aterial.isk.n.t..o.e.bviously.ave..atch.ist.rocess.hat.e.o.hrough.very.uarter..o.verall,.e.ouldn't.e.appier.bout.he.ollection..nd.rian.nd.he.ivisional.olks.ave.one.ust..reat.ob.f.taying.fter.ll.his..o.e.eel.eally.ood.bout.here.e.re.ncluding.ollection.f.he.eferrals..o.rom..redit.nd.ollections.erspective,.e.ouldn't.e.appier.

Dave Rodgers -- Robert W. Baird -- Analyst

And.ark,.aybe.-.ust.o.inish.p.ith.ou...hink.n.our.repared.omments.ou.aid.hat.he.everance.n.he.ourth.uarter.as.nexpected.r.omething.long.hose.ines..nything.here.elated,.as.t.evelopment?.as.t.ust.ind.f.eaning.ut.ith.OVID?.road.olor.here.ould.e.elpful?

Mark Mulhern -- Executive Vice President and Chief Financial Officer

Yeah..isten,.s.verybody.ind.f.rudently.anages.he.usiness,.e.bviously,.arlier.n.he.ear,.ad.ome.f.he.mpact.f.he.arket.otation.lan.f.etting.ut.f.emphis.nd.reensboro..ut.e've.ust.ooked.or.fficiencies.ll.cross.ur.usiness..e've.bviously.ad.ess.ravel,.ess.ctivity,.ess.howings,.ll.hose.hings.hat.ave.ind.f.mpacted.ur.usiness..nd.o,.e.id.ake.ome.djustments.n.he.orkforce.nd.ook.hat.everance.harge..e.bviously.idn't.ave.hat.n.ur.utlook..o.hat's.ind.f.ow.e've.alked.bout.t.

Dave Rodgers -- Robert W. Baird -- Analyst

Okay,.reat..hank.ou.

Mark Mulhern -- Executive Vice President and Chief Financial Officer

Sure.

Operator

Our.ext.uestion.omes.rom.enkat.ommineni.ith.izuho..lease.roceed.

Venkat Kommineni -- Mizuho Securities -- Analyst

Hi,.ood.orning..ust..ew.uick.nes..ver.he.ast.wo.uarters,.ou.uys.ave.entioned.hat.tilization.as.ended.o.e.igher.mong.maller.enants.ersus.arger..f.ou.ad.o.reak.hat.ut,.hat.o.ou.hink.hat.tilization.igure.s.or.oth.egments?

Ted Klinck -- President, Chief Executive Officer and Director

Great.uestion...hink.'m.ot.ure,.'d.reak.t.ut.y.arket..ut..on't.now.s.t%,.5%.omething.long.hose.ines..ery.ew.arge.ompanies.re.oming.n.r.f.hey.re,.t's..keleton.rew..ne.ig.xample.or.s.s.harlotte.here.e've.ot.ank.f.merica,.s..arge.ustomer.here.s.ell.s.n.ccounting.irm.PMG..hey.ave.ot.keleton.rews.n.he.ig.arge.ustomers.nd.e've.ot..ouple.f.maller.irms.lso.n.he.uilding.nd.hey're.ack.n.he.ffice..o..hink.t.ust.epends.n.he.arge.ompany.nd.he.ix.e've.ot,.ut.'d.ay.omewhere.n.hat.ange.

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

I.ight.dd.n.hat..t.eels.ike..00%.f.he.aw.irms.re.ack.n.nd.ccounting.irms.nd.o.hey've.een.usy.nd.orking.hrough.on-stop.

Venkat Kommineni -- Mizuho Securities -- Analyst

Okay..nd.f.he.00.o.50.otential.ispositions.n.021,.ow.uch.f.hat.s.art.f.he.arket.otation.rogram,..hink.ou.entioned.n.he.repared.emarks.here.as..uilding.n.emphis,.he.our.roperty.arking.n.reensboro..ut.ust.ondering.ith.hat.ind.f.ollar.igure.ooks.ike?

Ted Klinck -- President, Chief Executive Officer and Director

Sure..o.e.old.ll.f.hose.f.ast.emaining.ive.uildings,.et's.all.t.90.illion.o.100.illion,.o.hat.f.e.old.ll.hat,.hat.et.s.lose.o.he.ottom.nd.f.he.ange..o.idpoint.f.ur.ange.oes.nclude..ew.ssets.hat.re.utside.f.hose..ut.epending.n.-.gain,.t.epends.n.ricing.nd.ll.f.hat.s.ith.espect.o.hether.e.ell.ll.f.he.emaining.reensboro.nd.emphis.ssets.

Venkat Kommineni -- Mizuho Securities -- Analyst

Okay..nd.pologize.f..issed.his.n.our.repared.emarks,.rian,.ut.n.ent.eferrals,.ow.uch.o.ou.xpect.ill.e.epaid.n.021?.hould.e.xpect.round.3.5.illion.ased.n.5.5.illion.eferred.nd.2.illion.epaid.o.ar?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Venkat,.t's.rendan..'ll.ake.hat.ne..t's.robably.n..et.asis.oing.o.e.1.5.illion.o.2.illion,.ind.f.et.ositive.ash.hat.ill.e.epaid.n.21..here.s..ittle.it.f.uance.ind.f.nto.ome.f.hose.umbers.ecause.here.re.ome.ustomers.here.e.rovided.emporary.ent.elief.ased.pon.ercentage.f.ales..nd.o,.here.ould.e.ome.dditional.eferrals.hat.appen.n.21..o.he.et.mpact.s.bout.1.5.illion.o.2.illion.ositive.n.ash.ersus.AAP.n.21.

Brian Leary -- Executive Vice President and Chief Operating Officer

Hey,.rendan..aybe.o.dd.nd.ot.o.e.verly.ptimistic,.ut.rior.o.he.hanksgiving.pike,.e.aw..umber.f.hose.ay.estaurants.r.olks.n.hat.ercent.ent.ctually.tart.o.et..ood.mount.f.usiness.nd.et.lose.ack.o.heir.ontracted.ent..bviously.hat.ind.f.it.he.all..ittle.it.nto.he.nd.f.he.ear..o.hat.ight.e.n.rea.hat.e.ontinue.o.ook.or,.s.eople.eturn,.o.ome.ind.f.ormalcy.

Venkat Kommineni -- Mizuho Securities -- Analyst

Great,.hank.ou.

Operator

Our.ext.uestion.omes.rom.ikram.alhotra.ith.organ.tanley..lease.roceed.

Vikram Malhotra -- Morgan Stanley -- Analyst

Thanks.or.aking.he.uestions..pologize.f.his.as.nswered,.'ve.umped.n.ate..ust.ort.f.hinking.n.-.f.he.otential.ebound.ike.ou.lluded.o.ublease.pace.otentially.oming.own.n.he.ack.alf.r.t.east.LL.ighlighting.hat.nd.ust.till.he.ecent.mount.f.nterest.n.erms.f.he.ipeline.

I'm.ust.ondering,.s.ou.alk.o.our.enants.r.otential.enants,.ny.nsights.nto.ind.f.heir.osture.n.erms.f.heir.bility,.heir.esire.o.row.nd.here.pecifically.n.our.arkets.re.ew.enants.hat.ay.e.onsidering.elocating.rom.he.lose.Phonetic].rowing.n..ost-pandemic.orld.

So.ort.f.n..ork-from-home.nvironment.hat.ay.ersist.n..ybrid.ay,.hich.eems.o.e.hat.e're.earing.rom..ot.f.orporates,.hat.re.ou.eeing.pecifically.n.our.urrent.enant.ase?.nd.hen.ew.enants,.hat.ype.f.uildings.r.ubmarkets.re.hey.onsidering?

Operator

Pardon.e,.ir..e.annot.ear.ou.t.his.ime.

Ted Klinck -- President, Chief Executive Officer and Director

I'm.orry.

Vikram Malhotra -- Morgan Stanley -- Analyst

Is.t.etter.ow?

Ted Klinck -- President, Chief Executive Officer and Director

Yeah,.'m.orry,..hink.hat.as.n.ur.nd..o.hat.e're.earing.rom.ur.ustomers,.irst.nd.oremost,.e.eed.o.et.hem.ack.n.he.ffice..ut.hat.e're.earing.s,.hey're.eady.o.ome.ack.n.he.ffers,.hey're.eady.o.et.heir.mployees.ack.n.he.ffice.nd.hey're.ot.oing.o.ork.rom.ome.ompanies.s.hat.e're.earing.rom..ajority.f.ur.ustomers.

So.hat.hat.ooks.ike.hen.hey're.ot.oing.o.e..ork-from-home.ompany,.re.hey.oing.o.o.o..ybrid.odel.r.he.ub-and-spoke,..hink.t's.till.oo.arly.o.ell...hink.e.o.-.hat.e.re.earing.s.here.s.oing.o.e.ore.lexibility,.ight..o,.ustomers.re.oing.o.ave.ome.f.heir.mployees.nd.ome.f.heir.epartments.orking.t.ome.or.ome.f.he.ime.

But.gain.hat.hat.ooks.ike?.re.hey.oing.o.ave..igned.eating?.re.hey're.oing.o.ave.ot.esk.here.ou.ust.heck.n,.heck.ut.ver.ime?..hink.hat.epends.n.he.ompany,.he.ndustry,.he.epartment.hat.ur.ustomer.s.sing.he.pace.or.

So..on't.hink.here's.ny.ne-size-fits-all.r.ne.olution.hat.its.or.ll.f.ur.ustomers.t.ll.y.ny.tretch..n.erms.f.he.ocations,.ook..hink.BD,.hey.ant.o.menitized.ubmarkets,.s.hat.e.ontinue.o.ear..t.oesn't.ecessarily.ave.o.e.rban.arkets,.ight...hink.he.uburban.as.eing.ut.own.n.heir.mployees'.ommute,.o.hey.an.rovide.ome.f.he.lexibility.hat.ay..ou're.eeing..ittle.it.f.hat,.ut.ot..ot..et.gain,..hink.t's.arly,.t's.oing.o.ake..hile.o.lay.ut.

In.erms.f.he.ustomers,.ou.ay.rospects.hat.nd.nbound,.t's.ort.f.he.ame.hing,.ight..hey're.ooking.t.ur.arkets.or..eason,.t's.ll.he.easons.e've.alked.bout,.t's.ow.ost.f.iving,.igh.uality.f.ife,.djacent.o.he.ighly.ducated.orkforce.nd.o.orth.nd.o.n..nd.nce.hey.ind.hat.arket,.hey.ant.o.e.n.he.menitized.arkets,.hether.t's.rban.r.uburban..o..hink.t's.ery.imilar,.hether.t's.n.nbound.r.xisting.ustomer.ase.

Vikram Malhotra -- Morgan Stanley -- Analyst

Got.t..kay,.hat's.elpful..nd.hen.ust.n.he.ebt.tack.ort.f.oing.orward..ust.ort.f.ondering.our.bility.-.ooking.ut..ouple.f.ears,.our.bility.o.aybe.et.t.ome.f.hat.ebt..aybe.ou.lluded.o.ome.f.his.n.ort.f.020..ut.ust.ooking.orward,.ny.lans.o.otentially.ind.f.et.ittle.head.f.ind.f.ome.f.he.aturities?

Mark Mulhern -- Executive Vice President and Chief Financial Officer

Yeah.ikram,.t's.ark..e.re.ortunate.o.ave..eally.lear.aturity.adder.ere..e've.ot.150.illion.ond.-.alf.f..ond.hat.e.aid.art.f.n.020,.e'll.ay.hat.ff.n.pril.5th..o.o.aturities.fter.hat.n.21..22.e've.ot..ate.aturity.f..ank.erm.oan.hat's..loating.ate.IBOR.nd.ust..ortion.f.t.s.ixed,.ut.ost.f.ts.loating,.o.t's.ery.ow.ost,.nd.hen..ond.n.23.

So.othing.n.he.-.n.mmediate.hort.erm.hat.e.ould.o.rab.fficiently.rom.n.conomic.erspective..o,.nd.hen.e've.ot.pen.ears,.hree.r.our.pen.ears.fter.hose.ears..o.eally.ood.hape.rom..ebt.tack.erspective.

Vikram Malhotra -- Morgan Stanley -- Analyst

Okay,.reat..hanks.o.uch.

Operator

Our.ext.uestion.omes.rom.hris.ucas.ith.apital.ne.ecurities..lease.roceed.

Chris Lucas -- Capital One Securities -- Analyst

Hey,.ood.orning.verybody..ust.,..uess..ollow-up.n.ome.arlier.uestions..ust.s.t.elates.o.enant.etention,.hat.as.hat.n.020.nd.hen.ort.f.hat.s.mbedded.n.our.21.utlook?

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Hey.hris,.t's.rendan..t.as.-.t.epends..ittle.it.n.ow.ou.ook.t.hat.rom.-.ecause.e.id..ot.f.arly.enewals.f.atural.020.xpirations.n.ears.rior.o.020..o.hen.e.hink.bout.he.verall.etention.evel,.hat.as.robably.n.hat%.o.5%.ind.f.ange,.hen.e.hought.bout.he.atural.020.xpirations..ut.f.ou.ompare.t.o.his.oint.n.ime.ast.ear,.hat.e.ad.emaining.hat.xpired,.t.as.ignificantly.elow.hat.evel.nd..ould.ay.he.ame.hing.s.he.ase.ith.he.emaining.%.hat.s.ncluded.-.hat.s.emaining.o.xpire.n.21.

As.he.loser.ou.et.o.he.xpiration.ates,.he.ikelihood.n.enewing.hose.s.ow.ecause.ypically.e're.oing.o.o.hat.head.f.ime..o,.hat.e.ave.rogrammed.n.ur.021.utlook.ith.espect.o.he.emaining.%.f.xpirations.s,.t's.ow,.t's.robably..ittle.it.ower.han..ormal.ear.iven.he.conomic.nvironment.nd.he.andemic.till.oing.n..o.hat's.-.t's.ertainly.ell.elow.hat.ormal.-.ormalized%.o.5%.hen.ou.ook..ew.ears.ut.

Chris Lucas -- Capital One Securities -- Analyst

Okay..nd.hen..uess,.ny.hemes.hat.ou.uys.ave.icked.p.s.t.elates.o.ho.on't.enew..s.t.onsolidating.ocations?.s.t.hrinking.he.ootprint?.ow.rowing.ootprint.hat.ou.ouldn't.ccommodate?.hat.-.ny.hemes.hat.ou.ight.ant.o.iscuss?

Ted Klinck -- President, Chief Executive Officer and Director

Sure.hris,.his.s.ed.nd.aybe.rian.an.ump.n..eally,..on't.hink.here's..ot.f.hemes.ther.han.e're.ot.osing..ot.f.ustomers.o.ther.uildings..o,.bviously.e're..retty.ig.andlord.n.ll.f.ur.arkets..e.ry.nd.ccommodate.f.e.an.ccommodate..ustomer.n.he.xisting.pace..e've.ot.lenty.ther.pace.e.an.ypically.se.

So.he.nly.hing..ould.ay.e're.ot.osing..ot.o.he.ther.ompetitors..o.t's..egional.ffice.hat's.losing..t's..mall.ompany.hat's.ontracting.hatever.r.re-COVID.hey're.oing.o.ork.rom.ome.ndefinitely.r.hey're.ust.onsolidating.wo.r.hree.ffices..o,.everal.ifferent.nstances,..on't.hink.here's.nyone.heme.here.

Brian Leary -- Executive Vice President and Chief Operating Officer

And.ed,.ollowing.p,.n.ome.e've.ctually.een.he.eneficiary.f.here.ome.ompanies.ave.ought.ther.ompanies.nd.onsolidated.nto.ur.ortfolio..nd.hen,.ther.han.hose.necdotal.maller,.eally.rom.,000.o.,000.quare.eet,.olks.ho.ave.otten.o.heir.atural.nd.f.ife.f.heir.erm.ecide.o.ork.emotely.nd.et.he.ust.ettle.efore.hey.ome.ack.

Chris Lucas -- Capital One Securities -- Analyst

Okay..nd.hen.ast.uestion.rom.e,.ust.s.t.elates.o.o-working.pace,.ou.uys.ave.een.ery.ight.n.hat.istorically..ny.pdated.iews.n.hat.oing.orward.ost.andemic?

Ted Klinck -- President, Chief Executive Officer and Director

Sure..ook,..hink,.ust..eminder,..ean,.e've.ot.0.ifferent.ocations.ittle.ver..2%.f.ur.evenues.s.o-working.hat.plit.etween.ndustrious.nd.egious.Phonetic]..e.on't.ave..ework.xposure..ook,..hink.hat.odel.ontinues.o.e.ight.or.onsolidation...hink.bviously.he.andemic.xpose.he.isk.f.aving.ong-term.iabilities.n.hort-term.eases.

So..ot.f.o-working.perators.ave.truggled.nd.e've.een.hat...hink.ong.erm,.here.s..lace.or.lexible.pace.n.ur.ortfolio.nd..hink.t's.ust.oing.o.ake..hile.o.lay.ut.nd.ee,.xactly.hat.oes.hat.ook.ike..ut.e're.irm.elievers.n.lexible.pace.hether.t'd.e.o-working.r.ome.ther.ersion.f.hat.oing.orward..o.e're.onstructive.n.he.oncept.verall,.ut.t's.oing.o.o.hrough..onsolidation.nd.ort.f.evamping.f.heir.usiness.odel.omewhat.

Chris Lucas -- Capital One Securities -- Analyst

Okay,.reat..hank.ou..hat's.ll..ad.

Operator

There.re.o.urther.uestions.t.his.ime.

Ted Klinck -- President, Chief Executive Officer and Director

Alright..ell,.hank.ou,.verybody,.or.eing.n.he.all.his.orning.nd.hank.ou.or.our.ontinued.nterest.n.ighwoods.nd.e.ook.orward.o.alking.o.ou.ext.ime..hank.ou.

Operator

[Operator.losing.emarks]

Duration: 65 minutes

Call participants:

Brendan Maiorana -- Executive Vice President, Finance and Treasurer

Ted Klinck -- President, Chief Executive Officer and Director

Brian Leary -- Executive Vice President and Chief Operating Officer

Mark Mulhern -- Executive Vice President and Chief Financial Officer

Blaine Heck -- Wells Fargo Securities -- Analyst

Emmanuel Korchman -- Citigroup -- Analyst

Jamie Feldman -- Bank of America Merrill Lynch -- Analyst

Robert Stevenson -- Janney Montgomery Scott -- Analyst

Dave Rodgers -- Robert W. Baird -- Analyst

Venkat Kommineni -- Mizuho Securities -- Analyst

Vikram Malhotra -- Morgan Stanley -- Analyst

Chris Lucas -- Capital One Securities -- Analyst

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