Kilroy Realty Corp. (NYSE:KRC) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 01:00 pm ET
Good day, and welcome to the Second Quarter 2020 Kilroy Realty Corporation Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Tyler Rose, Executive Vice President and Chief Executive Officer. Please go ahead.
Tyler H. Rose
Good morning, everyone. Thank you for joining us. On the call with me today are John Kilroy and several other senior members of our management team, who will be available for Q&A. At the outset, I need to say that some of the information we will be discussing is forward-looking in nature. Please refer to our supplemental package for a statement regarding the forward-looking information in this call and in the supplemental. This call is being telecast live on our website and will be available for replay for the next eight days, both by phone and over the internet. Our earnings release and supplemental package have been filed on a Form 8-K with the SEC and both are also available on our website.
John will start the call with a look at our industry and markets and then highlight second quarter activities and our priorities as we move through the second half of the year. I will review second quarter financial results, give an update on rent collections and then review our current financial position. Then we'll be happy to take your questions. We are once again calling in from different locations, so bear with us if there are any delays in our responses. John?
Thank you, Tyler. Thanks, everyone, for joining us. We hope you are doing well in this extraordinary circumstances that we find ourselves today. It's always not easy to navigate. I've had my children please disappear, daddy has got a phone call right now. I'm sure many of you have to do the same. Here at KRC, we remain vigilant in guiding our organization through the current crisis and positioning it to outperform in the future. We are working from a strong foundation. Financially, we have $1.3 billion of liquidity, no near-term debt maturities and a well-capitalized tenant base. Our development projects are 90% leased and fully funded. Operationally, we have a well designed, highly sustainable and young portfolio, and we continue to make great progress on reducing our exposure to lease expirations. We've reduced our average annual expirations through 2022 to 4% or approximately 575,000 square feet, which compares to 6% at the beginning of the year and 5% as of last quarter.
We've received a lot of questions in recent months about how the pandemic could affect our industry, our markets and our company. So before I get into second quarter highlights, let me share some observations and thoughts. We are in constant contact with our tenant base up and down the coast, and they are focused on reestablishing their work environment and getting back to the office, while at the same time, protecting the safety of their employees. The next 12 months is likely to be a transition period. There's likely to be trial and