Columbia Property Trust, Inc. (NYSE:CXP) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 05:00 pm ET


Columbia Property Trust, Inc. (NYSE:CXP) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Columbia Property Trust Second Quarter 2020 Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions].

I would now like to turn the call over to Matt Stover, Director of Investor Relations. Please go ahead.

Matt Stover

Thank you, operator. And welcome, everyone to the second quarter 2020 Columbia Property Trust investor conference call.

On the call with me today are Nelson Mills, President and Chief Executive Officer; Jim Fleming, Executive Vice President and Chief Financial Officer; and other members of our senior management team.

We released our results this afternoon in our quarterly supplemental package, which can be found on the Investor Relations section of our website and on file with the SEC on Form 8-K. We also filed our 10-Q with the SEC this afternoon and an audio replay of this call will be available by this time tomorrow.

Statements made on today's call regarding expected operating results and other future events are forward-looking statements that involve risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated, including those discussed in the Risk Factors section of our most recent Form 10-K and Form 10-Q, which includes specific risks pertaining to COVID-19. Forward-looking statements are made based on our current expectations, assumptions and beliefs as well as information available to us at this time. Columbia undertakes no obligation to update any information discussed on this conference call.

During this call, we will also discuss certain non-GAAP financial measures and reconciliations to comparable GAAP financial measures can be found in our supplemental financial data.

With that, I'll turn the call over to Nelson Mills.

Nelson Mills

Thank you, Matt. And thank you, everyone for joining us today. Due to the hard work and dedication of our talented team, we again generated solid performance during the second quarter as we successfully navigated this challenging market environment. Our second quarter performance demonstrates not only the strength of our unique portfolio, but our ability to remain focused even [Phonetic] while prioritizing the health and well-being of our employees and those we serve.

Building on our performance over the past year, we produced strong second quarter results. We achieved normalized FFO of $0.40 per share and drove robust same-store NOI growth of 20% on a cash basis. Despite the COVID shutdown and even with limited vacancy and near-term rollover, our team leased another 87,000 square feet, which is more than the second quarter of last year. We ended June with a leased rate of 97.2%. We also produced strong leasing spreads of 12% on a cash basis and 28% on a GAAP basis, that 28% represents our 10th consecutive quarter of double-digit leasing spreads.

While we have limited available space across the portfolio, a leasing accomplishment worthy of note was our extension and expansion with Berkeley Research Group at 1,800 M Street in Washington DC's, Golden Triangle. We extended this global consulting firm's 57,000 square foot lease by an