VEREIT, Inc. (NYSE:VER) Q1 2020 Earnings Conference Call - Final Transcript
May 20, 2020 • 04:15 pm ET
[Operator Instructions] Our first question is from Haendel St. Juste from Mizuho. Go ahead.
Haendel St. Juste
Hey, good afternoon. And Glenn, good to hear your voice again. Glad that you're back and well again. So first question is more high level, just think about the portfolio and curious on how COVID and life in the aftermath of COVID might be impacting your view on your portfolio allocation and sub-category exposures going forward. Clearly, having a bit more office in industrial has been beneficial. So I'm curious how the thinking, yours, the Board might be evolving here on portfolio balance or sector allocation post-COVID? Thank you.
Sure. Thank, Haendel, and thanks for your kind note. As you know, we -- as you followed us, Haendel and others, we've been pretty disciplined since 2015. The portfolio at that time we generally not understood and so we tried to make sure the market understood what we were thinking in the future. We put metrics around a number of elements here, percentages of property type, tenant credit, investment grade rating, geography and a number of others, all to provide diversification. So we have always thought that understanding the portfolio long term is the right thing to do. And we will continue due to that in future. So that's before.
Now let's -- if I took us to just January first, and we thought about where our portfolio should be, we'd be saying certain things like experiential real estate is a good idea because it's a bridge against e-commerce and restaurants and entertainment is pretty good. We also had a number of conversations on these calls about pharmacies. Well, would pharmacies be best or not be best in the portfolio? That's turned around today. We have all turned around today based upon this pandemic in terms of what property types may or may not perform over periods of time.
The one thing that I'd say for us now thinking about the portfolio is that we're not going to make decisions based upon what's happening today. We're in the middle of the storm. We're going to wait for some of this storm to subside before we make decisions on where the metrics will be and how we will reshape the portfolio. I believe there will be some reshaping, but how we will shape is very hard for us to judge right now.
To your point, some property types like office are now performing well. Our industrial performance is very good and the only thing -- the only constant denominator that I can take out of what's happened over the last five to six years is that diversification is a plus. We will always be diversified, but we may change some of our metrics in the future. We're just not ready to do that yet, Haendel.
Haendel St. Juste
Got it, Glenn. Thank you for the perspective, appreciate it. And then a bit more on the dividend, appreciate your comments earlier, but I was hoping if you could give us a bit more