Good morning, and welcome to the Kennedy-Wilson First Quarter 2020 Earnings Conference Call and Webcast. I would now like to turn the conference over to Daven Bhavsar, VP of Investor Relations. Please go ahead.

Thank you, and good morning. This is Daven Bhavsar, and joining us today are Bill McMorrow, Chairman and CEO of Kennedy-Wilson; Mary Ricks, President of Kennedy-Wilson; Matt Windisch, Executive Vice President of Kennedy-Wilson; and Justin Enbody, Chief Financial Officer of Kennedy-Wilson. Today's call will be webcast live and archived for replay. The replay will be available by phone for one week and by webcast for three months. Please see the Investor Relations website for more information. On this call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. You can find a description of these items along with a reconciliation of the most directly comparable GAAP financial measure and our first quarter 2020 earnings release, which is posted on the Investor Relations section of our website. Statements made during this call may include forward-looking statements. Actual results may materially differ from forward-looking information discussed on this call due to a number of risks, uncertainties, and other factors indicated in reports and filings with the Securities and Exchange Commission. I would now like to turn the call over to our Chairman and CEO, Bill McMorrow.

Daven, thanks very much, and good morning, everybody, and thank you for joining us today. I hope everybody on this call and your families are doing as well as possible during this challenging period of time. And before I discuss the highlights from the first quarter and our outstanding rent collections in April, which Mary will discuss in greater detail, I'd really like to extend my heartfelt thanks to those sacrificing their own safety and well-being to help others through this crisis, including health care workers, first responders, firefighters, police officers, and many others. They are bravely providing essential services around the globe. I know you all feel this way, but they deserve our deepest gratitude and admiration. While the COVID-19 pandemic has created unprecedented challenges for all of us, I'm thankful to report that the global KW team is healthy, and our communication across all parts of the company has never been better. I'd like first to comment on what we're doing to ensure our business continues to run smoothly. As we grew our company over the past three decades from one office, eleven people, and $57,000 in capital into a global real estate investment business, a hallmark of Kennedy-Wilson has been our ability to communicate across business lines. In March, we rolled out a remote global communications plan that has allowed all of our staff to work remotely for the past two months without missing a beat. We have daily calls with our senior management team, our asset management team, our finance and cash management team, and we've increased the frequency of our Board meetings to ensure that we are all on the same page and up-to-date on the latest global developments. In addition, we continue to be in constant dialogue with our human resources, legal, insurance, accounting, IT, and communication teams, which form the backbone of our company. I'd like to express my greatest gratitude and thanks to our employees, our Board members, and their families for their tremendous and tireless contributions during the past two months. I am very certain that what we have all gone through together will make us better people and a better company for the long term. With that, to touch on our highlights for the quarter, we produced EBITDA of $112 million and adjusted net income of $45 million. The quarter was highlighted by strong same-property NOI growth of 5% in our multifamily portfolio, continued growth in our investment management platform, further progress on our asset sales, and good progress on our construction development pipeline. As it always has been at KW, today, it's all about capital allocation while preserving liquidity. In the quarter, we allocated $95 million of capital, with 42% to acquisitions, 31% to CapEx, and 27% to share buybacks. On the investment side in the quarter, we were a net seller, as we have been over the last few years. We completed $199 million of acquisitions in the quarter, in which our ownership interest was 13%. We sold $331 million of real estate investments in which our ownership was 100%. The largest distribution in the quarter was Pioneer Point, our only multifamily asset in the United Kingdom. We acquired this asset as a nonperforming loan in 2015. After we completed our value-add asset management plan, including adding 10,000 square feet of residential amenity space, we sold this 294-unit asset in February at a 3.8% cap rate, which was unlevered and returned $127 million to KW. I'm pleased to report that the strong growth we saw in our investment management platform in 2019 continued into Q1 of 2020. During the quarter, we raised an additional $300 million in fee-bearing capital, bringing our total to $3.3 billion. This is up 83% since Q4 2017. Looking ahead, given the low interest rate environment we are in globally, we currently expect our key financial partners and other investors to continue investing in high-quality real estate. As a result, this will allow us to continue growing our investment management platform. Last September, we relaunched our debt platform, where we are investing alongside our partners in unlevered debt investments secured by high-quality real estate. Since going public in 2009 and primarily as a result of the great recession, we've originated or acquired over $6 billion in real estate-related debt. We typically take 5% to 10% interest in these investments and also earn recurring management fees. In the last nine months, we've completed $400 million in loan purchases, including a $125 million loan investment that we completed in April, where we are a 5% investor. When you include our management fees, we are earning double-digit unlevered returns on our capital. At quarter-end, we quickly turned our attention to April. Before Mary discusses April rent collections and leasing, I'd like to provide a little context on how we began two years ago preparing for this type of own model debt. Our past earnings calls have described our plan to keep higher levels of cash on hand in order to mitigate any unforeseen risks. I'm grateful to say that we started the year from a position of strength, armed with the most liquidity we've ever had in our history. We have constantly been adding to our liquidity by being a net seller these past two years. Since January 2018, we have sold $3.1 billion of assets, of which Kennedy-Wilson's share was $2 billion and harvested gains of approximately $750 million to KW. These sales also included the disposal of many non-core real estate and hotel assets. More recently, our balance sheet was further strengthened by the $300 million preferred equity investment in the Eldridge Industries in October of last year. This investment coincided with the expansion of our separate account platform with Eldridge's affiliate, Security Benefit, increasing it to $1.5 billion in total asset purchase power. In that platform, we've acquired approximately $400 million of assets to date. As of quarter-end, we have $735 million worth of cash and an additional $500 million of availability on our line of credit for a total of $1.2 billion in dry powder. We also mentioned that during this volatile period, our line of credit was extended for four more years with the option for a fifth year, while improving our pricing. When you include the $600 million of cash available within our two discretionary funds, we currently have a total of $1.8 billion in discretionary dry powder. Additionally, we have several strategic partners who are well positioned with billions of dollars of liquidity and a strong interest in partnering with Kennedy-Wilson. Our debt maturity profile remains very favorable, with $29 million maturing for the remainder of this year and $157 million maturing next year. All of our debt maturities through next year are non-recourse secured property-level financings. So we are in a great financial position, having both ample liquidity and limited debt maturities. As you may know, we have always maintained a diversified real estate portfolio, both by geography and by product type, which is dominated by multifamily and office. To provide you an update on where we stand on rent collections in April and on our commercial leasing activities, I'd like to turn the call over to our President, Mary Ricks.

Thanks, Bill. I'd like to start by echoing your sentiments, and thank you to all of our employees. I hope everyone on the call and your families are doing well. As Bill mentioned, our two largest asset classes globally are multifamily and office, which together account for 80% of our estimated annual NOI and 87% of our April rents. Our multifamily portfolio totaled 30,000 units globally and consists of high-quality communities, where we have enhanced our resident experience through offering a variety of tenant amenities. As of quarter-end, average rents totaled $1,660, and our portfolio was 95% occupied, close to all-time highs and putting us on solid ground going into April. Our on-site management teams have performed very well during this difficult time. As a result, I'm happy to report that multifamily rent collections in April totaled 97%. In our market rate portfolio, the U.S. saw rent collections of 97%, and in Ireland, we saw rent collections of 99%. In our vintage housing, senior, and affordable apartment portfolio, we saw rent collections of 98%. Thus, across the board, we saw extremely high rent collection levels in April and have a very good start in May. Our office portfolio globally was 93% occupied as of quarter-end, with a weighted average lease term of 6.2 years. Our top 20 office tenants include strong credit quality companies like Costco, Microsoft, Google, KPMG, State Street, the Bank of Ireland, Indeed, and the U.K. and Italian governments to name a few. I am pleased to report that we collected 98% of April rent from our top 20 tenants, and in total, global office rent collections in April were 97%. Looking regionally, in the U.S., office rent collections were at 97%. Our top 20 office tenants account for 76% of the portfolio, and we collected 98% of variable rent. In Europe, we collected 97% of our office rents. Our top 20 tenants in Europe account for 76% of our portfolio, and rent collection for the top 20 was at 98%. We're very proud of our office tenant base and fortunate to have large creditworthy tenants on long-term leases. The April rent due from our retail portfolio totaled $4.7 million. We have collected 49%, with $2.4 million outstanding. We expect smaller retail tenants to eventually utilize the various government relief programs available to them and therefore expect moderate increases in the retail collection figures. Finally, we have a small industrial portfolio in the U.K. with $860,000 of rent due in April, of which we have $240,000 outstanding. So across our retail and industrial portfolio, we have only $2.6 million of rent outstanding in April. In total, we collected 91% of our share of rents due in April across our global portfolio. As we look ahead, I'd like to note that the majority of our European office tenants pay their rents quarterly in advance in April. Thus, much of our rent collections in April gave us a head start in collecting May and June rents. I'd also like to touch on our robust leasing activity. We continue to see encouraging leasing data as we pursue and complete lease extensions and renewals across our commercial portfolio. Our office portfolio continues to be well positioned to retain our existing tenants and attract new companies looking for high-quality space and well-located assets, priced attractively, given that corporates continue to be mindful of occupancy costs. This is proven even today with the leasing activity throughout our portfolio. Globally, we've completed lease extensions, reviews, and renewals on 60 commercial lease transactions across 493,000 square feet so far this year, which includes 83,000 square feet in April. These lease transactions had a weighted average lease term of 6.6 years and resulted in incremental income of $6.8 million. We have another 450,000 square feet in legals, currently across 51 lease transactions. Many of our tenants are looking to secure their long-term space requirements, which is a very encouraging sign for the strength of our tenants and for the long-term confidence in our assets. In our U.S. multifamily portfolio, we have been rolling out new technology for prospective tenants, allowing them to take virtual tours of our assets and apply and sign leases online. By the end of next week, 100% of our U.S. market rate portfolio will have this capability, as will our largest Irish multifamily communities, with plans to roll out to 100% of our Irish properties by the end of June. We completed 808 new leases in our U.S. multifamily portfolio in April, a 6% increase from April 2019. 94% of these leases were completed virtually, and we've seen promising early traction in this exciting new virtual technology. With that, I'd like to turn the call back over to Bill.

Thanks, Mary. Now I'd like to update you on our major construction initiatives with a focus on our near-term projects. Most of the equity for our lease construction projects has been fully funded already by Kennedy-Wilson. Our development and leasing initiatives are currently expected to be completed by 2024 and include 5,000 multifamily units, 2.9 million square feet of commercial space and 1 hotel. Virtually all of our major construction projects are 50-50 joint ventures with our strategic capital partners. In total, we enjoy a 60% ownership in our development and leasing portfolio. We expect to spend only $20 million of cash for our CapEx commitments in Q2 and approximately $50 million to $75 million for the remainder of 2020. As it relates to our developments in Dublin, we currently expect construction to reopen later this month. Soon thereafter, we will finish Clancy Quay Phase 3, which totals 266 units, and is on track to be completed by the end of June. We originally acquired Clancy in 2013, which at the time had 423 developed Phase 1 units and 8.5 acres of undeveloped land. Phases 1 and 2, which are now complete, are currently 97% occupied. We are excited to finish the final phase, which will make it the largest apartment community in all of Ireland, with a total of 865 units. The two Dublin office construction projects, Hanover Quay and Kildare, total 133,000 square feet. We are currently on track to finish the construction next year. The three remaining Irish projects, the Grange, Coopers Crossing, and Leisureplex are all longer-term developments we expect to complete in 2024. In the U.S., we continue to make progress on all of our developments at Santa Rosa in Northern California and Rosewood, River Pointe, and Clara in Boise, Idaho, which together total 558 units. Construction has continued with minimal disruption. The completion date for Santa Rosa and Rosewood is the third quarter of 2020, and the completion date for Clara is Q1 of 2021. We're also making great progress on our vintage housing developments, where we acquired three new land sites in the quarter and currently have 1,800 units under construction or in lease-up with another 800 units in the pipeline. In total, we are adding 2,600 units to the existing 7,400 units as we are on track to grow the platform to 10,000 stabilized units by the end of 2022, representing an increase of 82% since we acquired the portfolio in 2015. Looking ahead, I'd like to put this crisis in context based on what we've experienced these last 42 years at Kennedy-Wilson. The current crisis marks the sixth major economic correction that I've gone through in my career, starting with the 1980 to '83 period, which had a 21% prime interest rate and high inflation, the 1990 to 1993 savings and loan crisis, the 2000 collapse of the dot-com bubble, the economic fallout from the tragic events of September 11, 2001, and of course, the most recent great recession. In each of these moments, Kennedy-Wilson mobilized. In 1994, we opened the first Kennedy-Wilson office in Japan, which ultimately led to the IPO of Kennedy-Wilson Japan on the Tokyo Stock Exchange in 2002. In 2000, we launched our fund and management business. During the great recession, we went public on the NYSE. A year later, we entered Europe for the first time, which led to our $1.7 billion IPO in 2014, the second largest real estate IPO in the history of the London Stock Exchange. After the dislocation caused by Brexit in the summer of 2016, we acquired the remaining 76% of Kennedy-Wilson that we did not already own, which closed in October of 2017. But we all know that each crisis has a beginning and eventually an end. While the timing is currently difficult to predict, this one will be no different. During challenging times, it is extremely important that you have four key components: long recurring cash flow; excess liquidity; strong joint venture partners; and the same team of people that have been successfully working together for a long period of time. Today, I'm grateful to say we have all four. We have a very high-quality real estate portfolio with best-in-class developments that we will finish over the next four years. We have the most liquidity we've had since going public, and we have very well-capitalized partners alongside us who themselves have significant liquidity. We have a senior management team that has decades of experience working together through many cycles, and the team has a proven track record of investing during periods of opportunity. We also continue to benefit from having the leadership of our Board of Directors. The most recent addition to our Board was Todd Boehly, who joined in March. Todd is Co-Founder and Chairman of Eldridge Industries, a diversified investment company with assets under management of $40 billion. I'm honored to have Todd on our Board, where we can tap into his extensive experience and knowledge. While 2020 will undoubtedly present unknown challenges, I believe we are well positioned financially. At the same time, we also plan to leverage our extensive experience and deal sourcing relationship network into uncovering new opportunities. The Kennedy-Wilson team is ready for any challenge, and I'm confident that together we'll emerge from this a stronger company. So with that, Daven, I'd like to open it up to any questions.

The first question today comes from Anthony Paolone with JPMorgan.

My first question is about the broader perspective. Considering your history and the insights you've gained over the years, what are your thoughts on where cap rates are headed and how property values might change as we move forward?

Yes, before I answer your question directly, I need to provide some context about where we see the company. To start, we are still in the early stages of this process. Any investor is in the early phase because the pandemic and its disruptions began just two months ago. There is typically a delay between when opportunities arise and when you are truly ready to invest. Reflecting on what occurred during the great recession, our first visit to Ireland was in 2010, but we didn’t make our first investment there until 10 months later. Currently, Kennedy-Wilson is in a significantly better position than we were during the great recession. We have more liquidity than we did back then, and although we had numerous capital partners at that time, many faced financial difficulties. Therefore, we focused on developing new third-party financial partnerships and generating deal flow. Our operations are built on long-standing relationships with financial institutions worldwide, which we have cultivated for over 30 years, both in the United States and Europe, as well as in Japan. Most of the financial institutions we work with view us as a highly reliable partner, meaning we consistently deliver on our commitments. Additionally, our team members have experienced the challenges posed by the great recession, both in the U.S. and Europe, and this experience is invaluable during uncertain times. Regarding interest rates, I've mentioned in previous calls that I anticipated a prolonged ultra-low interest rate environment, a belief which remains unchanged despite recent events. Looking at long-term asset classes instead of short timeframes, I believe low interest rates will eventually lead to lower cap rates. However, it's important to recognize that there will be some dislocation due to banks taking significant reserves, which, while concerning, will ultimately create opportunities with financial institutions. I remain convinced that over the long term, interest rates and cap rates will remain low. Despite the dire economic news we are hearing, there is still ample liquidity and considerable interest in investing in real estate. In addition to our internal communications, we have actively reached out over the past two months to our shareholder base and partners. We have been continuously assessing the direction of the market with our key partners. I can tell you that all of our partners, while considering our various platforms, have shown strong interest, not just from insurance companies with separate account partners, but also from major names in our funds. Patience is crucial in these times; rushing into the market is not advisable. I hope I provided a comprehensive answer. In summary, I believe that, over the long term, the combination of low interest rates will lead to cap rate compression.

The next question comes from Sheila McGrath with Evercore.

I wanted to get a little bit more information on the Pioneer Point disposition. Because you did mention that you do see some loan investment opportunities. If you can just remind us, I think that was a loan investment opportunity, loan to own? How that ended up in terms of the IRR to Kennedy-Wilson?

All right. Mary, do you want to take Sheila and everyone through the history on that transaction?

Sure. The deal originated when we purchased it from a German bank, and it was indeed a loan deal. At that time in Europe, we were actively buying a lot of debt. This particular transaction was conducted off-market, as the German bank needed to dispose of the asset. The asset consists of two towers; one was entirely closed, while the other was only partially rented. We took ownership of the asset, which was somewhat complicated, but our team has substantial experience in lending. In terms of opportunities, acquiring debt and then gaining ownership of the real estate is something we excel at. After taking over the real estate, we opened the other tower, made improvements, and added a full amenity block on the ground floor, which is a characteristic of KW to ensure we deliver top-notch multifamily offerings, which is somewhat distinctive in the U.K. and the broader European multifamily market. We successfully implemented all our amenities and then effectively leased it up, with the team performing exceptionally well. The property was stabilized and subsequently sold. I believe the next buyer will also find it advantageous. It was a valuable asset. The internal rate of return would likely have been in the mid-20s, but I will need to confirm the exact figure later. It resulted in an outstanding return for KW.

Okay. Great. And I just wondered, Bill, maybe you could comment on your bigger picture thoughts on the office sector with everybody home right now? And any update on WeWork as far as paying rent and the plans at your London property?

Yes. Yes. I'm going to let Mary talk about WeWork, which is a very, very small part of our office portfolio in a second. But as far as the office is concerned, there's obviously a lot of discussion going on about if everybody is working remotely, you’re going to see a diminished need for office space. I remember listening to this during 2000 when the tech bubble happened. At that time, big accounting firms talked about working remotely. The two social things that relate to office space that can't be underestimated are the need for human contact and the fact that logistically, it's not easy to work at home when you have other distractions. In our own company, one of the things we've had to be sensitive to during this period of time is that many younger families have younger kids at home, who are not going to school, presenting their own set of distractions. Finding a place that you can work in your house has been challenging. My belief is that there will be extended discussions of this topic, but over the long term, it won't amount to much. I also believe there hasn't been a tremendous amount of office overbuilding in the markets we are in. So I don't see any reduction in the amount of office space that people are going to have over the long term. For the last five years, people have been reconfiguring their space into more open spaces with less emphasis on private office functions, and I don't see that changing. While we all expect to manage social distancing, long-term office markets will remain strong. Additionally, we now have an extensive platform throughout the Western United States. As it relates to WeWork, when considering our apartment business of 30,000 units, which includes common areas, plus our office space, we have 50 million square feet of occupied space. For WeWork, our share is probably less than 100,000 or 200,000 square feet.

Yes. It's a couple of hundred thousand square feet. It represents about 2% of our income, so it's a very small part. The thing I would add is that they have some of our best space. 400 Cal in San Francisco, we only own 10% of that asset. That's one of the best-located and best-built out assets, fully occupied by an enterprise tenant for WeWork. Sheila, you referenced the office building that WeWork is taking in London, which is in the Southbank submarket, one of the best-performing tightest markets in all of London. It's less than 5% vacancy. Rents have increased significantly over the past three years. We got that asset through another loan-to-own type transaction in London. Our basis is very low in that asset. London, particularly Southbank, is one of WeWork's best-performing submarkets. They're currently working on construction on that asset, and they plan to be in by later this year.

And Mary, they also paid 100% of the rent in April, too. Is that correct?

Fully paid. Correct.

The next question comes from Tom Hennessy with Deutsche Bank.

My question is in reference to raising new fee-bearing capital, and you've been on pace for about $1 billion-plus a year. In a recessionary environment, it sometimes gets tough to do that. Do you anticipate any challenges with that? Or is it the opposite, the reputation you guys have had for special situations investing essentially could make it easier to get new partners or add additional capital from other partners?

Yes. Yes. I think you have to frame that one. Currently, well, obviously, in this world today, everything is in flux. I can tell you that we have had many inbounds from capital partners that we have never done business with and from existing people we already do business with or existing companies we do business with. Assuming there are opportunities out there, I see us quite significantly growing the fee-bearing capital during the next two years based on the assumption that there are investment opportunities that make sense to invest in. But like we've always said, at Kennedy-Wilson, we never feel like we're under any pressure to invest money unless it's the right opportunity. The key point is the money is available to us, but we need to find the right opportunities.

That makes a ton of sense. I guess just a follow-up on that. You had mentioned with Ireland and waiting 10 months before making your jump in there, but with what we have here, it seems ripe for obvious dislocations in the near term. Do you anticipate being more of a net buyer in 2020?

It depends on what the opportunity set is. I'm not trying to sidestep it, but in every cycle, generally, the initial opportunities tend to be debt purchases. Even like the one that Mary just described at Pioneer Point. When you think about some of the assets that we continue to own today in Europe, we acquired those through debt acquisitions. There are really two types of debt acquisitions we've done historically, really three: a modest amount of our own origination, buying debt basically to collect the principal amount, and then there was, as Sheila, I think, mentioned, the debt that you buy as a loan to own. Especially in Europe, there's a receivership system where if borrowers don't pay their interest, it goes into receivership, and the receivers then sell the asset. That process happens pretty quickly. In the United States, as we all know, there's many different protections that borrowers can seek. The first opportunities we believe will surface in this cycle are going to be on the debt side, as it takes longer for the equity ownership to go through the system. The fee-bearing capital will definitely grow under the assumption that there are investment opportunities that make sense. We have it available to us, and we need to be smart enough to find places to put it safely and with good risk-adjusted returns.

The next question comes from Jamie Feldman with Bank of America Merrill Lynch.

I just wanted to get your thoughts on leverage levels. If you think about your liquidity, you did draw on your line, and then you have a lot of that liquidity still on the credit line. How do you think about how high you'd be willing to take leverage if you found opportunities? What are the governors you think about from that perspective?

Yes. Yes. Okay. So Matt, I'm going to pass that question to Matt Windisch.

Sure. Yes. If you look at our leverage levels, we're definitely comfortable with where they are today. I'd note that over the past two years, we've reduced leverage. On our consolidated debt, we're down 20% over the last two years. Our net debt has come down by 10% over that same period of time. If you look at what we did towards the latter half of last year, we raised $300 million of preferred equity, using the proceeds to pay down debt. We have less than 4% of our debt maturing in the next two years, all of that being non-recourse. As Bill mentioned in his remarks, we have the highest levels of liquidity we've ever had as a company. We feel very comfortable with the debt position. We think that some of the opportunities that present themselves, particularly in the debt space that may come in the next several quarters, we're likely to do that on an unlevered basis as we typically have. We certainly have enough liquidity within the business and with our capital partners to acquire assets to the extent there are good opportunities, and do that in a way where we're not increasing leverage at the business. To sum it up, we're very comfortable with our leverage and liquidity levels, and we certainly don't see the leverage levels going up as we invest capital over the next couple of years.

Do you have like a high end of where you'd be comfortable operating?

I think where we're at now is the highest we're going to go.

Okay. So you wouldn't want to take leverage any higher than you are today?

Correct.

Correct.

Okay. And then as you think about the unstabilized portfolio and the development portfolio, do you think you need to push out any of the stabilization dates or fully leased development dates based on potential leasing delays or even construction delays? Do you feel pretty confident about your original underwriting?

Well, in the multifamily side, particularly, I mean, we had, as I said, in the U.S., basically there wasn’t much disruption in Northern California, Santa Rosa, and Boise with the vintage assets; we were allowed to continue working on-site during the last couple of months. Many states in the Western United States are starting to reopen everything. We don't see big timing differences in the U.S. In Europe, in the United Kingdom and Ireland, of course, they shut the sites. Ireland has announced they will allow reopening construction sites on May 18, with all of the new guidelines for work distancing and safety. Clancy, that I mentioned to you, which is one of the largest projects we've ever undertaken, is going to be completely finished at the end of June. It's basically finished now; we just have to move the furniture in and finish exterior landscaping. We’ll see how the leasing goes. We don't have a crystal ball on that. The construction timelines are looking encouraging. The three big projects we're working on in Ireland are under construction. We’ve got two multifamily projects with joint venture partners that we are excited about. We are on track to finish the final phases on time and on budget. We expect to see stabilization on many of our multifamily assets. However, we intentionally moved out our timelines by almost a year to ensure all costs were buttoned down and we secured our construction loan in March. Everything else is progressing as expected; the leasing process continues to be encouraging, as we can leverage technology to attract tenants effectively.

Okay. And then you've got a pretty unique market footprint with the West Coast and Mountain State focus. If you see disruption in other parts of the U.S., either on the apartment or commercial side, would you be willing to go to like a New York or some of these other East Coast markets? Or are you still going to concentrate around your current footprint?

Look, I never like to say never, but I think it's unlikely. The markets that we’re in, we have deep embedded relationships, both on the acquisition and the asset management fronts with our teams on the ground. A key in these types of endeavors is to ensure that you have the same team of people doing the work every day. You cannot underestimate how important that is at a time like we are in; when you're investing a considerable amount of money, the markets we have our footprint in, essentially the Western United States, west of the Rockies, and the United Kingdom and Ireland is where we're going to spend our time. We’ve been, for lack of a better term, a pioneer on the West Coast in going to markets well before they became on the radar screen for institutional investors. We have a big platform now in the Rocky Mountain states; Seattle, Boise, Salt Lake City, Denver, and we’ve gone into some other smaller markets on the West Coast in the last 12 months. There are still plenty of opportunities in the markets that we already have a footprint in. To answer your question, it is unlikely we would go out of that, but we have to see what the opportunity set is.

Okay. And then finally, you had some decent tech exposure in the portfolio. From the office side, any anecdotes of conversations that you're having with your larger office tenants in terms of how they may be changing their space planning or needs?

Yes. I think it's what I said earlier regarding Sheila's question. Sure, there will be a lot of discussion around that for a period of time. Then as things return to normal, whatever the new normal is, I think you won't see any significant changes. We're fortunate to have high-quality credit tenants. For the tech tenants that we have, which are the dominant tenants in Seattle, San Francisco, and Dublin; they are doing well. In the long term, I don’t see significant changes. There may be reconfigurations in how people use space.

What I was going to say is that we're hearing from a lot of our tenants. Our portfolio plays well in terms of the new normal, if you will. The return to work requires significant planning, especially around how work environments are configured. As Bill noted, facilitating social distancing, enhancing cleanliness during ingress and egress, using hands-free technology are all important. Our properties are more low-rise types, which minimizes the challenges often faced with queues for elevators. We're hearing from many tenants that want to take more space to spread their people out. I think it's going to be interesting and I believe our portfolio will perform well with these new standards.

This concludes our question-and-answer session. I would now like to turn the conference back over to Bill McMorrow for any closing remarks.

As I always say on these calls, we appreciate your support. We thank you for your interest in the company, and as I close it out, I wish everyone and your families good health and safety. We'll talk soon. So thank you very much.

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.