Liberty Property Trust (NYSE:LPT) Q2 2019 Earnings Conference Call - Final Transcript
Jul 30, 2019 • 01:00 pm ET
Good afternoon, ladies and gentlemen. My name is Jerome, and I will be your conference operator today. At this time, I would like to welcome everyone to the Second Quarter 2019 Earnings Conference Call. [Operator Instructions] After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]
Now, it's my pleasure to hand the call over to your host, Ms. Jeanne Leonard. The floor is yours.
Thank you, Jerome. Good afternoon, everyone and thank you for tuning in today. You're going to hear prepared remarks from Chief Executive Officer, Bill Hankowsky; Chief Financial Officer, Chris Papa; and Chief Investment Officer, Mike Hagan. This morning, Liberty issued a press release detailing our results, as well as our supplemental financial package and you can access these in the Investors section of Liberty's website at libertyproperty.com. In these documents, you will find a reconciliation of non-GAAP financial measures to GAAP measures.
I will also remind you that some of the statements made during this call will include forward-looking statements within the meaning of the federal securities law. Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from the expected results, risks that were detailed in the issued press release and from time-to-time in the company's filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Bill, would you like to begin?
Yeah. Thank you, Jeanne and good afternoon, everyone. We are operating in a very interesting world. The industrial real estate markets continue to provide unprecedented opportunity, particularly for long-term real estate operators. We entered this year with certain goals. One, substantially complete the repositioning of our portfolio through the sale of our wholly-owned office platform. Two, take advantage of the market and our operating strengths to drive portfolio performance while operating with a couple of constraints, namely high occupancy, which is a nice constraint to have, and a lower than typical volume of scheduled lease rolls for the year. And third, maximize output of our development pipeline while maintaining an appropriate risk profile. On the first, our repositioning goal, we're pleased with our progress on that goal and very pleased with the monetization of valuable properties that we've created. Mike Hagan will give you a thorough update in a moment.
Moving on to our portfolio execution. As you know, we started the year with very strong leasing volume in the first quarter. Our teams were able to maintain that production volume from the first quarter through the second quarter. We leased 8.6 million square feet in the quarter, bringing our first-six months total to 17.5 million square feet, nearly what we expected for the full year. We've reduced our 2019 expirations by 72% and our 2020 expirations by 26%. Our