Duke Realty Corporation (NYSE:DRE) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 03:00 pm ET
Ladies and gentlemen, thank you for standing by. Welcome to the Duke Realty earnings results conference call. [Operator Instructions] And as a reminder, today's conference is being recorded.
I'd now like to turn the conference over to our host, Vice President of Investor Relations, Mr. Ron Hubbard. Please go ahead.
Thank you, John. Good afternoon, everyone, and welcome to our second quarter earnings call. Joining me today are Jim Connor, Chairman and CEO; Mark Denien, Chief Financial Officer; Nick Anthony, Chief Investment Officer; and Steve Schnur, Chief Operating Officer. Before we make our prepared remarks today, let me remind that certain statements made during this conference call may be forward-looking statements subject to certain risks and uncertainties that could cause actual results to differ materially from expectations.
These risks and other factors could adversely affect our business and future results. For more information about those risk factors, we would refer you to our 10-K or 10-Q that we have on file with the SEC and the company's other SEC filings. All forward-looking statements speak only as of today, July 30, 2020, and we assume no obligation to update or revise any forward-looking statements. A reconciliation to GAAP of the non-GAAP financial measures that we provide in this call is included in our earnings release. Our earnings release and supplemental package were distributed last night after the market closed. If you did not receive a copy, these documents are available on the Investor Relations section of our website at dukerealty.com. You can also find our earnings release supplemental package, SEC reports and audio webcast of this call in the Investors section of our website as well.
Now for our prepared statement, I'll turn it over to Jim Connor.
James B. Connor
Thank you, Ron. Good afternoon, everyone. First of all, we hope all of you and your families are safe and healthy during this pandemic. When we last gathered for the quarterly earnings call in April, the world was grappling with the onset of the pandemic. At that time, I outlined about a half a dozen risk management strategies that we had implemented tied to safety, remote working, capital preservation and more closely engaging with our customers. While there's still a lot of uncertainties around the pandemic and its ultimate impact on the economy, we are in a considerably better place from a capital markets liquidity and consumer confidence perspective compared to three months ago. Even more encouraging has been the resiliency of the industrial sector overall and more specifically, the performance of our portfolio.
Second quarter highlights. We achieved 27% growth in rental rates on second-generation leases on a GAAP basis and 11% on a cash basis. We reduced 75% of our expiring leases, and including immediate backfills, we released 96% of expiring leases. We signed 7.6 million square feet of leases, which contributed to a 100 basis point increase in our total portfolio occupancy to 95.3%. Leasing was broad-based across all industries with about 20% tied to e-commerce. Monthly rent collections remained strong