Spirit Realty Capital, Inc. (NYSE:SRC) Q2 2020 Earnings Conference Call - Final Transcript
Jul 31, 2020 • 09:30 am ET
Greetings and welcome to Spirit Realty Capital Q2 2020 Earnings Conference Call. [Operator Instructions]
I would now like to turn the call over your host, Pierre Revol, Senior Vice President, Strategy Planning and IR. Thank you. You may begin.
Thank you, operator. And thank you, everyone, for joining us today. Presenting on today's call will be President and Chief Executive Officer, Mr. Jackson Hsieh; and Chief Financial Officer, Mr. Michael Hughes. Ken Heimlich, Head of Asset Management, will be available for Q&A. Before we get started, I would like to remind everyone that this presentation contains forward-looking statements. Although the company believes these forward-looking statements are based upon reasonable assumptions, they are subject to known and unknown risks and uncertainties that can cause actual results to differ materially from those currently anticipated due to a number of factors.
I'd refer you to the safe harbor statement in today's earnings release, supplemental information and July update deck as well as our most recent filings with the SEC for a detailed discussion of the risk factors relating to these forward-looking statements. This presentation also contains certain non-GAAP measures. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included in today's release, supplemental information and July update deck furnished to the SEC under Form 8-K. Both today's earnings release, supplemental information and July update deck are available on the Investor Relations page of the company's website.
For our prepared remarks, I'm now pleased to introduce Mr. Jackson Hsieh. Jackson?
Thanks, Pierre. And welcome, everyone, to our second quarter call. As most of you know, we decided to move up this call from its originally scheduled date. Since COVID-19 hit, Spirit has made a concerted effort to provide our stakeholders with more robust and granular information more often about our portfolio health, rent collection and tenants. We believe this approach is not only warranted given the circumstances, but also aligns with our culture and the way we approach our business every day. One of the models all of us work by is that there isn't good news, there isn't bad news, there's just news. We believe moving up our call to provide more timely information is just the right thing to do in the spirit of that model. Our people, processes and technology have really made it possible to provide enhanced timely disclosures, all while running the day-to-day operations remotely. Today, my update will focus on: number one, cash collections and deferrals; two, tenant performance; three, active portfolio management; and four, our external growth pipeline. Mike will then discuss our financials, the revenue recognition treatment of our deferrals, and provide you with an update on our capital markets activities. First, cash collections and deferrals. Monthly cash rent collections have continued to improve, reaching approximately 78% in April, 71% in May, and 77% in June, an increase of 18%, 6% and 1% respectively since each month was initially reported, aggregating to 75% for the second quarter.
For July, rent collections were