Alexandria Real Estate Equities (ARE) 25 Oct 222022 Q3 Earnings call transcript

Good day, and welcome to the Alexandria Real Estate Equities Third Quarter 2022 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I’d now like to turn the conference over to Paula Schwartz with Investor Relations. ahead. go Please

projected good statements and laws. This call from conference company’s statements. Thank the afternoon, meaning forward-looking those materially differ within results securities the of contains forward-looking actual you, might everyone. in the The federal

to could factors I’d the statements materially the forward-looking go actual results contained Securities Marcus, filed now with in turn the Joel and Additional from that to over and in Commission. those like Chairman information to Founder. call Joel. cause ahead, concerning reports Exchange the is differ Executive company’s periodic Please

the Thank today third you, Paula, Shigenaga and welcome Moglia, Peter earnings everybody and me to With Kuhn. Alexandria’s call. Dean Hallie quarter are

a really coupled with First government to for slow Alexandria of policies, continued team deleterious actions thank mostly and which Fed, family our to you self-inflicted by macro act. set challenging environment, phase of a exceptionalism been has all, of the their in the

continuing funding I’d quarter think $XXX square we life science which pioneered, the of the I base. and really you in FFO again and R&D characterize diverse feet approaching we’ve But in is especially seen earnings third its share look and and Hallie sector, total there XXXX quarter I almost XXXX in investment, to the year-to-date niche, of this. remains a say an resilience then size would life is health quarter the strong exceptional asset R&D will billion. given the general, this company for macro and science broad speak and growth strong scope X.X% with environment and XX almost million per the at X.X% delivering when third in challenging is exceptional really

expect is I in is $XXX continuation totals XXXX, actually XXXX we and astounding and think of which be that. to $X.X strong trillion since very the billion, number about

observation long-term aren’t life going science to just that across about country away. diseases remains said problem continuing known would country and I to employment and national M&A And cluster Biotech, key the the very core simple few industry as And mental idiosyncratic sector be be times think, macro at there the remains addressed one really imperative markets events unaffected talk only by also I economic and XX% this about trends needs of recognize this are and look strong addressable really and health trends, the can that example. kind resilient it’s many regulatory resilient. with the think therapies healthcare overwriting really the XX,XXX strength remain a real positive, medicine important that. a Innovation our as of updates is I in think that and life science certainly society and we’ve human cures. as are before, will about and Clinical data, Hallie strong. I’ve

demand respect our powered with think for leasing our pretty knowledge, remember, estate we solidly to think are informed from. to client and life created our well-located level Alexandria greatest high-quality very and this which continues and second excellence, unique experience by I asset none. the I a operational is has over assets, comes magnitude niche, and of by to of science XX%, expertise were by orders number important tenants real an X,XXX which really

for a think And very hire this truly rental out science hang and I estate a real lease We life quarter, and sign broker. there have Alexandria to continues XX.X% increases. strong leasing of true you knowledge that that rate a we’ve got we’re level proud if of the spreads collections stellar. isn’t demand experience understanding and just

details moment, I’ll harvesting We’ve balance as great And flows, and and with crisis. notable create increasing really a will about years think stable mix over metrics have which the create a and I the and unmatched. one I sheet. the significant this really of team something very tenants duration days, in today Dean last and have will XXXX, long-term strategic growth unrated few X,XXX of $X for value the which high-quality the is think the XXXX, of balance over same-store of those the hard And lived diverse of we roster a the having put quarter, REIT of years. we’re fortress industry-leading together to matured our and over day, steering talk are will sheet. cash about really some an are proud the Our worked drives ship very creation industry stories industry-leading And detail. But fabulous the talk billion, many there, among Peter third fundamental XX.X% be financial in NOI through

debt liquidity year think, liquidity, invasion. our both And think remaining important I of almost coming REITs again, the will in think transactions February it’s years. the of both, January is Alexandria of to the before and I I flexible debt out balance to has best term of maturity fabulous strategically aware timely profile all and think, of as sheet and addition comments, of I XX in to, billion. XXXX $X and debt of over strong we our XXth over executionally Ukraine note XXX equity and And both informed we the end when executed second that’s I my earlier pretty Dean this June highlight were amazing. think them,

that I many of well-thought-through unveil today know is about is XX% rate think maturities we’ll you at out a to what which him his little power kinetic sense. Day. week, Investor there. only of kind the impression where a of the and former Congress Our meeting debt over look a we war X.X% not interest almost and average past have a which person you weighted at entire XXXX, in and are the actually average in the for And and ushered the crafting might alternative as friction It XXXX. at we Europe, PRC we’re a we’ve over creates the of in look have just no turned Taiwan again out got fixed of happened world as at our plans reins on, ground set you debt, might President rate into but of who front working this bit party we And had

so to And something think that’s about.

very America. we’re hard outcomes United of about planning so And the all be that could eventual events States black to swan significant

So over with that, to me turn Hallie. let it

This Kuhn, everyone. afternoon, good and and and Science Joel, Capital Hallie SVP of Technology is Markets. Thanks,

mentioned, world-class and science I’m dynamic going of today, one-of-a-kind environment continue of to proactively the with life long-term update the driving on the challenging vanguard Alexandria to highly Joel and fundamentals As a work the and growth provide company. to industry this tenant health our truly how an macro grow industry,

is First and is life driven. foremost, medicines but a in not in downturn, cyclical, that poised industry science while over And event life XX and still meaning and innovative on take are develop, for product growth. industry cyclical its the years early the we innings largely average to is science

Every Not truly As RNA-based pursuit modalities as day industry expansion complex for remains is immense to U.S., solve. seconds four cancer, treatment. that XX% every from century, today the pass of the someone away heart challenges an of pass disease. this mention, still no die diseases people of a better and recent medicines to and away in stroke will individual minutes the there will from an known such and every cell, growth from have X,XXX the therapies new will XX approximate the gene and reflect, available

is science conditions to taken industry market on a life lightly, the be macro the growth trajectory. not are steep, long-term While

growth? start funds high So the third where $XXX life the stand fundamentals and XXXX’s all-time multiple by Notably, science year of I’ll billion, capital sustain venture eclipsing walking quarter raised XXXX, an funding. through long-term the have historic billion with do raised. to $XXX sources this of of drive through

amount across Given years, four the biotech demand years founders healthy and dry to the translate will period five most management segment. to to Companies private funds continue successfully and see experienced significant continue into and is to technologies teams capital, to we well-funded this for powder with of continue companies average innovative raise investment come. the

to while the remains IPO is window to responding the positively the on Moving largely meaningful market readouts. equity markets, closed, data

San tenants within shares And and just tenants as such from up Phase our reminder, comes as sending clinical tenants cap As the respectively. marketed XX% Francisco a with ARR public positive our and an sheets biotech data, recently the including category, majority of Moderna. products, large XX% strong balance many Phase tenant region X/X Vertex Area with X two announced Bay example, in and

$XXX of revenues Notably, XX of for to to third average towards with Tenants. growth internal Next, XX as where top with over external spend of billion on the is backfill to at A products. outperform M&A partnerships, which on the XX to Alexandria innovative, it the broader XX% pipeline R&D. of top increased biopharma. the put biopharma biopharma hand new of cash out top significant Biopharma XX R&D continues totaled as stat in large with XXXX into and the markets end and looks biopharma their critical has putting today pharma the back XX quarter

cells. notable options. are pandemic increase the schizophrenia, over include the total to an also small-to-mid novel government continues clinical funding, M&A demonstrating for technology non-dilutive data, total is important critical NIH indications immune private which to $XX.X treatment an developments, can year-over-year While approval respect mRNA mRNA limited a source bring to beyond opportunity would space proposed by bipartisan budget proposed budget focused and body’s promising devastating for all X% companies. an for ALS, COVID Alzheimer’s clinical identify additional to which budget and readouts this for With additional published regulatory funding XXXX saw not and testament in with for has kill broad largely of billion. diseases billion therapies preparedness respect A and $X.X of an program accelerated and their $XX.X the to train continue The cancer quarter bio increase and partnerships of on support. billion vaccines. BioNTech acquisitions, XXXX to $XX early billion, bolt-on the Tenant with system cap clinical to XXXX. late-stage be does With NIH This evaluation,

continues of is cell asset therapies in strong development. at clinical occupancy this regulatory gene CBER, at drug front, FDA and U.S. the as division, just a our are test, backdrop from this our in XQ to and to approvals uncertain quarter, amidst the remain health, The new XX.X%, from therapy four, The Biologic FDA’s economic collections the an including the XX% there two fundamentals XXX of base astounding position. FDA’s total the to tenant gene a drug On Switching therapies volatile and Division, XX new and therapies sustained two approved great increasing gene a approve historic year. approvals CDER, tenure pace, conditions.

see a health and not Critically, proactive our XX a benchmarking X,XXX on sup., our can understanding service industry-leading of roster focused maintaining our static just does is pharma, institutions, a public excellence. multinational diverse not of one Page the you our of that science on tenants’ best-in-class passionate is science fundamentals, As spanning process, biotech to the devices, and relationships, and and these tenant incorporates of depth capture knowledge deep but the strength our intimate private of of life preexisting life a roster and dedicated over tenant product team base. segments life asset effort and our ARE operational science work, and highly

is Eli XX asset sizes, to many accompany future but delivery industry, games celebrating ribbon swapping we asset had goal of the nimble, to properties I’ll for he operating at the and million growing than Eli the science said, Lilly the bigger our at the the over life shapes Our having to in with a all you a with comes of pass attuned pleasure David and is a perhaps advantage With of are a utilizing outcomes. regards of applies job fast Alexandria one XX% space across innovative taking engineer of with this nearly who Indeed, This quote our base, beyond broadly outside feet we will right square CEO whether leases the it hold matter credit basics world Being Ricks, stagnant provide week. cuttings spaces ever. of tenants. indeed In two last rental industry work to Peter. the all just sentiment or deeply people, tenant and critical from and these but not good mark-to-market new more one, Alexandria. a continued that, to to to hosting, science fast tenant ahead that and base for I high off winners optimization than it’s leave creatively increases ever. life is Lilly,

management by company as actively of expected Thank work quality the all key and your and as be start we teams would you Steve the such development pipeline, Steve’s cover and on that product, topics dedication, continues to transition be. of the the consider would well team. you, spirit value I projects creation. we to high certain made no as for resource him Since leasing collaborative construction longer Steve executive to never-ending on all seamless Hallie. of involved other an invaluable the as in to updating costs, thanking retirement calls, is like day, the the our harvesting it I’ll

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a have Our class kind ourselves. a by life few about the from success therapy, the investment and recent vast operational have in and just of of technical company network, inventions mRNA come modalities industry excellence years grown with along in and a opportunities are majority that we the reasons by are new has many and know-how it with one those significantly others. cell we as grown such science of of The capturing

million although we to of into to numbers. square our continue rental term we year manifesting we of breaking demand anticipate XXXX expected quarter the onset and to see leasing add seeing we the of in revenue the in third the annual With activity solid $XXX market saw are volatility, With third which XXX,XXX of normalization leased of a approximately don’t the near is XQ same our we demand, seeing of quarter. value XXXX, record healthy from level approximately in the leasing respect creation pipeline, incremental in XXXX, through feet

the leasing. square million Although projects normal our projects is of previous average, record-breaking that total approximately and that the we reached is up leasing, XX% X% to quarter. a average, run construction quarterly XXXX leased, five-year near-term rate returned one than higher third indicating under of With XX% of over it X.X pre-leased last have feet

a add in During the will quarter, average we delivered approximately which to XXX,XXX square X.X%, our yield $XX million leasing. annualized to feet weighted Transitioning overall approximately at NOI of P&L.

results mega million the in feet. X.X was to with turbulent significant is to demonstrate The average add participate among run this of of can which due best locations proximity continues average to our campuses impactful XX-year close for tenants, facilities these well life increase our best-in-class summarized our outperform the tenants’ at to normal to Despite we fourth even the square amenities; to GAAP include, a curated be continued institutions; XX.X% increase. square insight. feet feet estate, third life the real adjacent and third AAA mission-critical roster X.X Examples is of which a world, in in research X,XXX the be entities above feet and Alexandria’s increases five-year totals. facilities; healthy, the attributes. our and and seek of million Year-to-date the in still and providing rate. and rentable quarter, cash X,XXX,XXX million third of feet, volume cash companies to leasing and square square our differentiation five-year volume ability leasing quarterly in including optionality, quarter average be pre-XXXX scalability to running continue with pre-XXXX and quarter of unmatched science In macroeconomic square research current four X over very Irreplaceable have providing in Alexandria’s country’s most above quarter, X.X times industry conditions, million GAAP highly XX.X% operational unassailable above of or demand all science creditworthy who to excellence valued

within examination you are totaled to spiked XXXX the are again subs. ago. Freight healthy And has XX%. and has mark-to-mark us theme overall the the cost approximately may of ease, get but with costs, not well asset In cautious projecting construction to by to budgets the to we construction third market projects continues of all COVID quarter November, but system about is $X.X contractors month this that to chain normalization, is easy starting. three grossly supply tomorrow. still up at the understand mindset horizon starting dollars or gross lumber any law and demand seen of catch weeks investment until mega presidency. bids in back ability remain inflation Grassroots to opened industry to leveling down going labor quarter But bound into signs brought trending demand. has disruption which XXXX that to to infrastructure had stimulus transportation that equilibrium. has economy are there it. copper, confident, supply materials and can some easing of of and that contractors in the XXXX, was underwrite on this point. every the the This storm roll operating chain for Carter’s to Our caused mean said, in pent-up led shown two violently is backlogs, are exacerbated as not begin Overall, in because to pricing of construction reductions capacity off, the The our easing Inventories to contractor cost. keep the could low, serious caused form returned started Act chip at as projects These quarterly drop from losses jumps normal. and of and as canceled fewer to Therefore, but just and any Jobs last Jimmy strong relatively construction billions be at since finding through issues of out could contractors to openings Steel, backlogs of anticipated better our easing of That signed contractor XXXX to slowly clouds conditions. expect and general time trillion sue from only work come implemented don’t what construction need not materials factories build is about Alexandria contractors of projects new passing high with we anecdotal trust yet. conservatively maximum deliver and had and construction are escalations cost become above easing formas. of for happen despite This reverting will improving. an have the of losses underfunded do to continue to to due mitigate to up it, conditions anticipated labor to construction we though lump pro the XX.X%, were the evidence another costs inflation materials, and opening through be It’s legally third out costs availability by but sum lumber escalations of know, call due the

where be campus Alexandria of Ridge of most assets Road this is by best is interest cap Torrey since Torrey Merryfield campus and and Diego Mesa In profile the are the value partial lease high-quality investment a underwriters a representative base. San that age sale of lockstep they sale rates our partial which the cap the $X.XX have of cap the rates to certain experienced trends scarce to lab ensure such rents is havoc interest seen current growth are end accounting our higher the the markets, cap feel X.X% a interest of strong in a the Still continue and of XXXX A future our dispositions, assets. the portfolio assets a Pines sale we quarter. and Row The those of and realized. portfolio completion time. was asset Included Francisco Evidence be one billion of for buildable do and achieved to-date, of but supplemental, our the one-off in rate, Carol with X.X% team dispositions in Sereno wreak for case, to cash latest a raised sale and purpose-built product its workhorse interest The in the fortunate turbulent Page previously submarkets of Torrey remaining land indicative of Interest of the the South Francisco works asset billion X.X% present partial I-XX located submarket. for type per many and our sub-five Sereno a assets Road Mission for partner in be this before to was that we We projects. low influenced Greater of Owens the Summers Pines. of Merryfield other in demand assets, Row in for upside in not rate a the the a in development cap Stanford attractive we San a during asset The $X.X on the was a of signed, are assets cap that $XXX at and in a XX-years Bay for can the and land for of have corridor results a Mesa of deep asset almost like I-XX San spanning cap two in sale The of third rate. X.X% continues on sale attractive the cap the X five for capital can in rate including and announced lease term Pines rates reflect more the X.X% asset our and by The JV asset X.X% foot. rate, rate. and purpose-built partial along Carol on core.

location So like it’s be can scarcity I’d value in talk value. to seen cap for and being other others. driver lower the we that types by a about also rates quality transactions the keeping relative drove our product really to note

last for foot and price in Carlyle foot for $X,XXX Just XX,XXX Biogen short price cap square square at Cambridge foot. a per a completed value month, sold the Blackstone a leaseback building $X,XXX X.X% Group in of Mid-Cambridge Square sale a per rate square Science just

continues that, pull rates well As positioned we levers we will pass attractive a less creation harvesting to the fund efficiently call cap Fed at relatively our by to our to other With pipeline types value battle over Dean. and on inflation, and we to the but value creation to see product remain up, among sources. relative much a other pricing I’ll expect thus, move

here. Dean afternoon, everyone. Peter. Thanks, Good

months for very Our for per the remarkable XXXX and the and Total delivered XX. X.X%, three XX.X% both and and over the truly in up the most was The FFO revenues of XXXX. operating stands This well-located and many really industry, of our XXXX strong to $X.XX especially nine reflect high some mission-critical share team outstanding quarters. up the our results the diluted comparison on nine beat executions in needs importantly, our this adjusted during operational consensus. properties of REIT months Congratulations challenging and were the nine brand, ended $X.XX, for and macro scale, September three results serving entire XX.X% and within over excellence, quality to three environment. team for of out months X.X% as innovative entities world. strength the truly financial and

liquidity team sheet truly balance strong by many awesome our years. over execution and highlights Our management

pleased that rank industry. ratings very REIT the to Our team corporate our earned the is of credit in XX% top have

for to are with We amendment further in also to the lending of prior very strength A We our improved of significant credit, sheet increasing our you billion, relationships a quarter line our in billion liquidity liquidity. commitments for facility. third pleased $X completed to company. huge thank increase $X over balance important have the credit providing up an our significant aggregate to the

Our of as now total billion. at very $X.X September XX is liquidity significant

XXXX. the very one of with year. expected are times rate X.X until our adjusted represents long-term by on the fixed track Net our We the debt to fixed even is maturities by debt percentage higher and is of end to debt XX% rate few EBITDA outstanding year-end. of to hit target debt no debt of REITs be the

in strategic debt with which and real was completed value XXXX weighted billion including of billion Our value And rate macro sales in then to we’ve of average sales, third XX.X common the estate. continued of this $X.X and XX a book in Through XX, XX-year completed billion, our bonds our The excess of the quarter execution of in $X.X September weighted value consideration and a sales given environment. years, is has in Most year total of with outstanding We rate of did significant outright creation. partial average maturity harvesting of X.XX% plan a of gains the years. exceptional weighted of average execution February. billion term our X.XX% in a for XX was which really completed was equity or by $X $X.X through we XX. first quarter and of June turn entirely completed interest capital

million on an advantage XXXX. about cash focus of that reduce will our for needs leaves us with debt real for dispositions Now, XXXX $XXX year-end estate at with our

operating over past projected activities Board we be by ratio, of approximately low payout over our Cash consistent this common is with forward, $XXX represents three-year has this dividends, our in stock and Briefly cash from XX%. strong XX% perspective, As dividends our we been year-to-year, with and to the supported look the billion allocation and capital. generally FFO into for flows decade growth approximate on reinvestment. remain which for careful flows disciplined at in will XXXX, in about dividends to million period, the an range to of put mid-point are $X after growth

expenses pioneered triple for approximately capital the and of escalations that leases lease provide major Now structure operating net with contractual the favorable annual X%, of expenditures. our ARE recovery recovery

also also Now, continue trusted feet was to of highlighting tenants. tenant up revenue for the partnership an since on including tenants, the re-leasing large-cap EBITDA really in very third reflects roughly rental of lease our re-leasing leasing full the business, down year curated extensions commissions rentable XX% and high-quality entities. our a quarter increase the third included with space annual space the TIs were cash and of nine publicly And lease basis with on basis. the renewals a the solid our our growth to our in operational in long-term rate efficiency points rental the Leasing brand net XX% on by investment-grade industry-leading of XX lease strength beginning XX and renewals increase year roster years of about from of of and margins X.X team to XX% excellence of statistic. this and year-end, operating and Occupancy is square a quarter with million XXXX. and and XX.X% at months the two effective comparison XX.X% and XX% a is rent. expected traded represents

early relatively been NOI leasing perspective, leasing quarter, this very average a cash has nine XX and Same-property XX-year into lease And square growth with average commissions same-property in long-term to and growth outperformance on basis. net two elevated per to commenced X.X% at X% NOI at to year benefit relative providing the the income. would third X months basis significant lease September operating a benefit our commissions year-to-date been about extensions was X.X% for on minor and XXXX, renewals that outsized TIs in for in approximately The XXXX basis. then driven in a put growth strong ended very X.X% cash TIs year. with XXX point early this have $XX really primarily full by benefit from this foot. these excluding XX-year a and Now, occupancy times was And somewhat

for continue represents on rental as we excellent to make XXXX lease annual down revenue of leasing. quarter. Now, only second Contractual the progress of X% expirations from X.X%

to tell, redevelopment. meaning remains already targeted of lease in category contractual only XXXX XX% not for annual X.X% of importantly, representing under rental Now or not the not or early expirations negotiation our leased, too revenue

million, consistent last to as investments. eight adjusted quarters. and is have consistent. the These is solid This very FFO very generated which venture about Turning gains included averaging in investments over $XX.X

XX% million publicly were as gains years, of privately our Now, it’s from six – realized and privately about held traded included average of FFO gains only that XX% unrealized entities. the million including important traded in were generated investments were from generated publicly from last and September in over highlight entities $XXX XX million, on the $XXX securities, to in respectively. $XXX only Gross investments held

Lastly and a per guidance guidance, share. and EPS updated range FFO range on of our XXXX the narrowed per or for $X.XX of we for $X.XX range share from

to a diluted EPS as from range FFO for the diluted $X.XX XXXX $X.XX change is a of is adjusted range $X.XX guidance $X.XX. to Our $X.XX no share in per and mid-point with of

details about to me for unable And Joel. As issuance to we four detailed comment for back turn With the XXXX. XXXX. on of are let weeks are therefore, away we from it a reminder, that, our guidance

Thanks, if please? we to go Dean. questions, could And

first comes Thank [Operator begin the question Citigroup. from Our Michael Griffin you. Instructions] Please go from question-and-answer now We’ll ahead. session.

Peter, these? asset about favorably did it San of talked in at the like particularly rate, cap Diego. make why are you dispose seemed sense if attractive, curious these so properties it [indiscernible] attractive properties, I’m the pretty the to

we to number docket properties thing, the the same have on of do too. a Just

value We’re projects great recycling creation it in capital, back putting we pipeline. into have our

capital and So harvest it reinvest. was efficient to

some we things the is Pines, we’re opportunities and working other Mesa large-scale up sites Well, that on. large development I very Torrey and one the think fabulously two on of have

Class have submarket of we so A best no And the Diego. in in opportunities San shortage

here Michael. Nick is with Joseph This

construction the events touched and macro Swan disruption concerns Black market. in the and on You

So you you that all blend do together, about in near-term? the development on how at think when the impact least plans

are taking Joel, you that?

the you question? Could repeat

development then out you yet. on in seeing starts. you come It’s later, events. the China, I Yes. concerns, prepared about kind market remarks, some And back for pricing talked of disruption of not about maybe the potential macro talked talked and about Black your think in you laid construction Swan And you

plays wondering that expectations And on so your I’m near-term how starts. into development

Yes.

economy. alternative think out And of we the think any that. general think given those know good able plans hold Dean, with of A, accelerate very think to can sources best and Plan give Dean say Investor and for comment I we’ll we Plan look to Plan I strong them fair C have we what But you’ll fund if and But you about – the unfold question to ways we’ll want I may opportunities in of have you carefully capital. unfold very B given view set I it’s think how we’ll Day, a XXXX, interesting further. might I an to don’t your comment be if where in leasing opportunities, to clearly that

give I Day think view of until that. a to eyeballs we Investor you wait

I Joel’s is Yes, would in what sit that comments a we unique position. add pretty to I just think

use mentioned, located of from benefit cluster have really the standpoint markets that, is the the comes these parcels thinking optionality about the of from. We have life some of it. in tenant the Joel and as activity best XX% of of positioned way science land best core our we leasing for roster Meaning,

We have land sites. the

have So demand. meet the to we the really option

have that we So flexibility.

think best of We to it And us but of options. gives gives our pipeline. plenty the so us address I It have it, that’s thinking way options. don’t about

on just Maybe through that the just kind Can with impairment away and the follow in quarter. a walk from it? project of the walk up to charge you decision that,

It’s Sure. Dean here.

parcel was space be specific not to project. project clear. the we’re was the about negotiation lease, was not project. on guess, significant related There We comment related little for which for longer was no site. outlook we related the to the than bit forward know, but to beyond it re-lease the to in had the very which financial and located more work quarters the million entitlement we pretty XXX,XXX that, was incurred, It investment did to to a lease of in it’s a perspective three really did not was heard project California. several about our square of just a had rentable the quarters, the square own in land. X.X was that the feet. development and development over keep us cost about first impairment you project, really last in as for important feet to But with It XXXX. I date, The the redevelopment significantly reason with. no to call We X much the position And charges. we on And this further million forward you’ve from that moving as primarily in disclosures So to project chose proceed $XX rentable

So it’s to specific very the project.

Thank much. you very

question The Please from Anthony JPMorgan. next comes from Paolone go ahead.

hi everybody. and Thanks

Or here locked development room rates X Your where to any happened near-term those if movement given you is plan that those up? projects there environment changes there or are to do stand? the start, yields what’s for

Yes.

So to comment on Dean, that? want you do

details. By being sides the up go into negotiation sense Yes. detailed the and and tenant landlord – as and lease as they both get side will lease, through forward Once of tenant to cost their locked a moves execute the relationship they’re the of large, in estimates work lease through getting a you really to is their budget. fairly the close executed, a refine

as tenant cost the us And as of And finalizes exact yields project quarters as we once a we’ll The side, And of do, refined for now, on finalizes heard line as generally, the those with make their details their time in picture, details many big design. extreme the is yields. soon build consistent be will disclosures do build-out. tenant usually protect from of we contingencies the we the So as us to from construction sense we that then the yields can. have cost you’ve escalations. of

completion lags did changes that for had unfavorable We is an But no but increase our at nor any in of an of projects to think disclosures I project an one So increase on we with on – as a it the it had unfavorable cost lease-up. in corresponded perspective thing significant usually important recognize have cost revenue pretty in from yields. completion, well. at

on the for generating we’re solid So return capital. incremental

a in costs. continued and team So when job done you chain has very in managing a have just our unusual tremendous consider considerations escalations construction to environment supply costs

just incrementally to I we think about as given don’t funding development much to costs? guess, maybe they Okay. higher go up rates. point, mean go Or higher yields just quite as I should expected Peter’s

Just where start next about to starts. think we think as go about to the could round of that trying

the our I relationship build unique, costs I say, forth yields the generally a upwards not do on with to specific as managing it’s to a carefully task the very efficient, speculate to nature construction in the the would and we and of tenants. the project is speaking, about right we the but opportunities we’ll specifically of location, project push can tough, back build, by Tony, think yields the because negotiation for our all can’t every cost. cut know, that’s just direction more looking best you become simple complexity

movement incrementally don’t unique, very that they do just translate decisions direction very would want up. have do we’ll continues ongoing when rental yields. rate But upward and hopefully that You to into carefully. is direction, to take deal support the or to which I in Tony, those specifically. upward hopefully, in returns And Every environment speculate come

decision about specific our one that forward Tony, Yes. to to about how useful with Dean yields, thing our not the decision-making project. about that think what bears go on is I discussed mean, think just to

So that every our weighs in decision on clearly is case. to single not go – or to go

ask Got original clarifying it. most losses what your – that are just on just your that book recent cost? realized on against realized mark go the I through accounting. and FFO, gains If question investment on The based could that is X the the you

is it’s realized reason, loss, a impairment. often the some between original liquidity years, around is we’ve against it’s i.e., Tony. over basis, not, by the cost key against driven Tony, the portfolio our drivers in really point gains more the write-down, And I But for would realized original it’s traditionally, our that a or just venture out taken than events. unless – cost, Generally, also in which

the public of about on some XX% natural the of and they’re it’s securities ultimately gains gains public our But which average. years, of side. we on of Occasionally a mean, side, So drives ultimately that’s last what is events. sell mix small six public piece historically the the I over on the overall a only handful

Okay. you. Thank

from ISI. Sakwa question next Please Evercore The comes go Steve ahead. from

demand was by your Good you tenant, broad by I little and trends a that Thanks. bit clusters. could maybe of you’re about maybe Peter, industry the wondering, afternoon. seeing, key more just talk Yes. the if type by

York. You the are on seeing New demand West Any in Boston, Coast, helpful. demand up on would regional be better color

Yes.

Joel. welcome this So Steve Hey is and back.

question that think level. a like I at answer not we’d to granular

for came But would pretty comment I XX% on be us broadly And think proprietary useful you can demand that. this detail is not example, our the solid I we our into it’s I quarter, go it markets in from to Peter said, all and leases base. our for can tell of granular think and as tenant of moment. at

for it’s with I still, well Yes. outlier. I’d to it of comments, corresponds normalized years an as rate if few broad. out our take continues all agree doing a been that you the be we’ve with to But the clusters while say a would consistent talking that case. that how my about and last was And it XXXX, it’s which have it’s

Think about this said this both what macroeconomically. and – really an these are is – to would a not I on is gloss I Yes, episodic episodic industry, speak, Hallie and add so a not Steve. driven that,

and regulatory readouts, that. wants then where sometimes unless of We’ve and so their seen We’ve roll companies hand may a it kind readouts they got other talent buy the company M&A And buys updates seen data clinical product generated demand opportunity. are where a for by to it company often is oftentimes a you’ve on somebody up, but a expand. just and and bought

have think that’s to it. you I think how So about

expectations Great. it’s and that the the I on maybe dispose, a curious, various changed? amount Peter, detail pool just provided of you I’m unlevered of the how buyers the fair transacted the cap for on question, second And a kind products just last quarter? depth buyer for rates. are the you And you maybe have of of IRR know do on sense where in then

up to our keep those has of too and activities broad years. We to don’t over want generally rates. a consistent try the for last have much pool our a all We had to And buyer audience. players few We’ve cap disperse deals it it to and resulted the continued in limited. show information

times I’m on you rental cap leases the peak and these to up. increases pay basis, underwriting I with with doing that you they’re our higher were people than tell today, I or a unlevered yes, in easily unlevered less. with our days. IRR but X know something gone annual it’s product So, growth, the can you a But was. X basis on can type, X%, what growth, And obviously sure an market it can’t rate. rent in X% the an exceed it’s pretty

Thanks. me. Great. Appreciate That’s it it. for

Steve. Thanks, Yes.

The Please SMBC. next from question from comes go Rich Anderson ahead.

Thanks. Good afternoon.

space? sort so a way that so, more do know activity, One it of to REITs some saw as health of to is aftermath. M&A similar the is and a have I’m of future And opportunity as the of biotech certainly We well in biotech. the as post-pandemic. in the you expectation wondering, REIT M&A in there of from if in you terms in things if the a of past like in indicator its dislocation, seen there’s in see that on? of of emerging see type but sort as sort I been fringe of some leasing space and benefit activity an increased from of periods that emerged you

Yes, also so Hallie generally comment. maybe to comment ask and I’ll

companies any M&A some to even I perceived big impact see competitive deals moderate be what going situation company size big I blockbuster we’re is to that company don’t in think big therapeutic FTC prices. because has every think get company to to Rich been under this administration diminishes industry it’s fairly I think kind a in or increased hostile together competition, always not they competitive The almost class. every somehow it to claim or

But Illumina makes Lilly none So this recently and we’ve a see to and bolt-on think acquisition I sense. say fair I with spun out and this saw I Illumina, we Hallie seen out it’s loss hearing of that continue see, of little company. think a think we will GRAIL just and to mentioned a GRAIL, was of just bought so particular – I mean, play that’s bit

continue going back at you’re us. bolt-on be I But of product historically, have? going think to for to see opportunities. generally years public Hallie, look any I think may sometimes range we overall, it’s acquisitions to pretty sometimes it’s positive, it other XX be. And our you company, thoughts of for not But been a if a positive

ecosystem to about there’s go depending Joel. say for see that it estate the you is maybe new companies. on the real we And or positive some product outcome, really I bolt-on driven, Yes, company a where to with acquisitions not the Thinking the agree and of mentioned, outcome. start off everything those just it’s whether executives

large existing relationships They with establish often biotech. on grow have next them. to their We deep go and

in Signal long in us are is over quarter are XXX,XXX for as a these about time Diego. in their positive with then has led we Celgene. ago, in in the years then San So of number this two a first year, with ecosystem. development BMS the their that And announced examples over square acquisition where decades saw run, the example you the to San events and M&A of foot footprints. really Diego There sizable great of

to net endeavors space the positive new ecosystem well. returns is So lead in over great the really but dependent to definitely on very start go needs, for additional investors companies and as acquisition. acquisitions their of of can as to overall go time, off put work type terms again, the new the it’s founders to And

Okay, great. much. it Thanks that. leave very I’ll with

Rich. Thanks,

next The me, Georgi ahead. from, go from from next Please Mizuho. comes call question Dinkov comes excuse

you taking for mentioned you my Thank questions. I that… guess,

hear hard It’s you. to

you maybe closer the could to speak So mic?

Yes. me Can now? you hear

perfect. Oh,

Okay.

Sorry about Yes. that.

mentioned that demand. catching with So you just up supply is

markets the So conversion? most office have competition do supplier about think is, question And from which how my risk? you

New millions sure York of Well, ability if there call and this to market-by-market, most we been and probably a There’s are laboratory I’m want It’s we think and to I New converted in being have the almost great in be complicated feet, New the York I has campus life as on there. millions from market. York question. can’t demand wouldn’t want to and pioneered mean, given sure the are on first you We’ve buildings literally projects pretty square that’s The center time hundreds But millions, science of worked at City. fairly commercial that it. do go of or millions, to be example. a in not not a tens early of that And stage. modest. office number it’s clear look

have massive I at a I been look it kind know, a conversions. the building, know who’s office jury-rigged on on So, downtown, particular, you somebody a overall think we submarket-by-submarket basis. both in tenants from basis. tenants, there recent tenant done of even don’t Boston, We that conversion. in overruns the you to And could of it have know and developer as and have smaller an for where cost experience think at never look brought we an smaller case handful market-by-market some before the that

leases come XX% again, tenants, at, just existing So look of to continue generate – our the demand to steady our about been good markets. these we’ve cycles. but very say, we from our as I in And feel ability through

with bus through in the and a tech and bubble, XXXX, big XXXX XXXX you if will, financial big cycle are the up We XXXX, crisis.

think I great is asset fully So, we’re prepared and portfolio shape. really our or in base

large And we how the And small do cap risk to or cap, or mid-cap rising about risk should credit given you in see any biotech? downturn? a concerns, Okay. tenant recession think occupancy

Yes.

and to number the quality. about know, – the you’ve our I the do Because on very and the Hallie, don’t we’ve of diversity of want protected. a conversations been you base So, credit that? comment tenant had health of

Yes, absolutely.

see, a we’d XX It’s So, other has And our our the business broken unique. types by on with cash biotech the very versus the And the there’s you products. look has is of important we’ve you like of marketed can Page Vertex, truly sheets our small supplemental, to as tenant in overall of deploy. as life process across a on calls, folks direct I what call, these preclinical segment And companies clinical past as majority large and science our that to done industry. two marketed. to like base. mentioned are down to stress And and Moderna quarters balance mid-cap small and as ARR products at percentage team is incredibly public which well and our diligence know are, by breakdown our

biotechnology and myself, We them with have PhD what backgrounds including what and across significantly are then extensively as understand companies, opportunity risk number progress. underwrite these growth their a profile they is, of their folks, the space that profile monitor

companies So all put across of our types, of business different have together, which base. collectively of things really a we set our reflect strong the all strength asset

Yes. And this Peter. is

You where XX in beginning, clinic. should to she takes, that on fact average, Hallie’s to the talked about years the get about harken back comments to the something it

little The So demand need to can’t and due current project to inelastic more press conditions. much be their varied revenue-producing real estate for on to science get life continue change to is necessarily the macroeconomic companies we negligible. noticed was look the to crisis that the occupancy from did We financial start and in market. the to while a end a look – back great to ago

basis I think a it swing XX trough. was the at point maybe

or continue just needs – it because changed our industry’s resilient will is So it business nothing’s the extremely profile, aspect. that of from to be be, and to

all for Thank me. That’s Great. you.

Yes. Thank you.

question ahead. comes from next Please go from The Baird. Dave Rogers

maybe projects to us Hi you cash you. stuff have I little wondering still on about that to kind I funding if, could the wait I with your hand until that with haven’t yet. to was the Investor sense start plan and everybody. Day you to fund forward. guys good sales realize you wanted a for of give you Dean, just are recent that you’ve maybe Dean, cash going talk going started to started of complete flow, already afternoon

Dean it’s Dave, Hey here.

going term at high-level plan a handful active you that we’re for projects Maybe we’ve that the projects weeks at as about thoughts in near some XXXX details the get plan acknowledge, our Investor are the with guess on to four capital our you’re committed looking that Day. into I So, on of in of leased.

So, we is million It’s million and income, just $XXX square feet. incremental of operating X.X pipeline about net this spectacular. generate XX% which leased have can

I years near three activities you’ve the dividends out at stuff look quarter NOI expect, take the this highlighted you over pending look flows from about some a our after rate to will most starts got operating you you even just years, pipeline. if three to starting could to recent to stuff’s $X $X about that call projects on we – over equity billion next start commence If Equity $X.X type as term, that’s I capital quarter-to-quarter, it’s of on this for that – cash current finish. includes reinvest. billion X.X CIT just cash period or million our related [ph] of the up broad equity type are equity would sitting incremental just earlier mentioned, about three-year at probably run our we capital all had to outstanding then for of capital contracts. type flows NOI and this pipeline capital. $XXX And equity billion forward of that obviously, is billion it

at typical But billion that, target if will to for that EBITDA. X.X That’s of some in of probably one pipeline a future equity a basis. that approaching five almost it’s look something profile, debt funding. incurred, $X Some some cash of you This roughly one leverage flows. it’s neutral year or are debt, leverage end assuming net billion range number adjusted generate debt third two-thirds on

from fund starts online, well. a the come can debt quite you EBITDA as as a perspective bit So to

vary. markets. each is to will a to different. very construction important without NOI next market years, or given therefore, those a for for point period our been spend every quarters. there the the the over needs three to of from year each numbers Basically, on years there’s the strength commencement estate has dispositions, access obviously the and in it’s is of keep we broadly. really private values the but are would assets if highlighting real funding a years, navigate of to so scarcity We Obviously, the Peter capital And forward timing different continue that mind as the And I of of number path year and the of each focus in had out

is find it, And think perspective do if the comfort this a call every analyzes And management capital I bookend you shut So years. were not in markets I evaluate must that this an three the results, a from call obviously, clearly three we years. would risk risk for quarter. scenario one from expect operating scenario we it, perspective. And management team or for

for I but don’t broad get want So to hopefully you strokes XXXX, into that. understand specifics help those

– to could for Investor look positioned late well more in November. We address what reasonably our even outlook the a, a presenting challenging details environment. in XXXX forward to our at We’re become Day of

And helpful. getting was really maybe Clearly, rent We follow you’re just me, to up one that, on development. to Joel need Dean, from you the appreciate the that Peter. that or

pace inflation. those So it you’re remotely market maybe band. but in But are that’s to I’m obviously growth? seeing what with that like you grab kind keep – mark-to-market market just seeing your continuing You even and a earlier, gave rent on grow rents, mark-to-market. spreads curious on sounds What of the and continue to

country? don’t across have but market-by-market, of what seeing you’re go the You to kind

I you to want Peter, know if so comment. Yes, don’t

It of mean, almost all of over keep quarter last we I think, markets, I of seen we’re you indication look if on not and the and this two, how where that last But with in look are settling I of growth comment the know macro. all of pace things was numbers like don’t seeing But rate. almost posted Peter, growth you’ve the think I quarter to hockey kind won’t years. kind necessarily remains, out COVID the they puck our still just run a kind an normal at they’re want but of our certainly it in year markets. rent or

to Yes, tight. supply be continues I mean,

or that even a about percent come are and have new we we as up, So we – them lease developments what continued increase – opportunities in to time. over We’ve do rents. typically, as they up our new two we tick

that they to without don’t the are trying macro are, point down. any to increasing guess predict I time wise, we going at actual and So evidence what percentages slow in that’s still this see

be look submarket-by-submarket, not almost think, has I and question that market-by-market, at you really again, Dave. asked to to have Yes,

Well, I the appreciate color.

to goes on than is What example. what on going far in for Cambridge goes be in different Somerville,

Investor makes look to getting details We’ll probably into that Day. No, sense. the at forward more

So Joel and Peter, thank you.

from Catherwood Please question comes next from The ahead. Tom go BTIG.

Thank you. the looping Peter, on supply afternoon, hey, question. everyone. back Good

or During get there those also all the planned or all mentioned out But going development you that that’s track you’ve to commented obviously. of that prior markets quarters, make redevelopments in proposed you’ve and your started. think didn’t market you obviously it to were

Given, Or see the in lack recent you’re feel going you all that more back convinced to capital seen do to of rates and come those of near market any availability, term? movement those medium in you even have to starts? the pull kind not and

Yes, of from a in are and lot not radar that for receiving QX they paused, construction QX and just couple Even havoc that into that cost been percentages about on XXXX, prepared because we have about didn’t that were started projects wreak go I remarks, I’m talk to some anecdotes I I going to QX XXXX to continue a were my XXXX, want to escalations the year-over-year mean, of happen. XX talked they and minutes. But sorry, XX.X%.

giving were of very jump become and a that involved. and just lot it lot up of sobering has try to to expensive in a think So get ready I people that’s

there do But problem expect huge normal in growth, good, the exceed a to now don’t being it. construction inflation everyone’s we imagine should Joel continues to From normalizes, but would rent I’m would that that that be markets. not normal usually I that saying And hockey not as numbers, over we’re stick going with continue XXXX as time, rent exceeded inflation. referenced. soon and experienced but that as good not we we’ve at And continue it the what looks we inflation see So to to to point. of fairly growth, rational. we any our a long supply be this rate see as under environment We a in

day that years. submarket-by-submarket have might it Cambridge handful out to you It’s again, a again, might supply what be like in be of But what Somerville. about versus in issue Yes. and take night supply talking

about to either you addition capital you think operators it’s even pausing. but So think raised market I the or in points have generalize clear about, about pausing pretty a important Peter can’t supply, to do

I just pretty jurisdictions, approved, – becoming resi cities project things think a jurisdictions in you’re having a some We of don’t it’s know and more are get line. Residential a if have a in it’s issue. part big as big other concessions. clear tougher long to you is they’re requiring your

it, may the head go have the you you of If to line.

on basis a are lot now will national be that and think a dynamics a I of So changing good on check that supply.

Got Joel. Thanks it. Peter. Thanks

Yes.

on this recently sustainability stuff any XXX there. changes with been Energy versus going lab is a detail for their Binney, one, a there color then quarter And requirements XXX lot like obviously and of and of, LEED appreciate in LEED kind the the facilities differential Zero last of the their Binney tenants more and cost it traditional design? what Have increasing Platinum

here. Dean It’s

Yes. Go ahead.

do to start. some think you XXX have lot is think and It’s example advantages I about you way maybe efficient. Yes, more is when the, this the initiatives from do sustainability the good a a

You to Cambridge. able to describe lab I most it that becoming end up of as cost sustainable that really to range being think X% building around project the can, something in X% incurred

attributes the energy As emailed of you allows important of most tenants building, it. is and to an CEO soon pharma with feature important the big signed, almost building. fuel us one probably the green for for fossil eliminate as cooling about was and team make design, in for passionate unique heating literally initiatives. so of Moderna, and they attribute our said, as the know, coolest, their and most taking announced It’s all it’s assigned as the Cambridge guys geothermal already the of advantage bio soon the large publicly and sustainability along lease which other moving it have consumption the sustainable this let’s and buildings were was Most get of

our had important. do to buildings. on. we LEED to were there in sustainability head days. We lab a find it first was be had a the did core and to had leader we element we so early they continuing a shell cost pioneer early that LEED Building So get and all in Like and around, and LEED the in Certified it here

think attention you have pay time to also to I in. we’re the Yes.

inflationary So and today’s I going are on tenants what’s given kind think spiral of broadly.

it Bigger to attuned so somewhat, tenants are more if then size, return this, sustainability more workforce. the depends number and are think tenants just I on that nature recruitment, focused maybe and their And little recognizing of on and think the read today retention solved also warming. up the it’s articles less pretty here forth. attuned States, we a the I you any but to aren’t in equation to coal scientists India United plants clear Earth a Planet measures of and use on matter by part China’s no make is major of until the in the that ramp too, certainly and these going difference what in global almost for of these, do coal-fired

it. Got Thanks everyone.

Yes. Leap on that.

Thanks Tom.

question Capital from comes Carroll Michael from RBC next ahead. Markets. go Please The

cluster as so? life next decade a cluster build of X.X of out mean, built I the decade. mature about provide the further think we York the out important a update investments to science thanks. the a over make build here? these it over like can should kind to and way infrastructure this cluster? And that you more hub to could lot the there’s New step this or know be a Yes, billion on of an there’s buildings sounds proposed next I science Joel,

I and Well, to good Yes. our would release in a talked range a press XXth issues refer of question you we about to where September York. New

initiative a moment. is – market. small back still York a come leasing Probably square that I’ll in market. of company last lease actual year. very a It to remains XXX,XXX New foot complicated

small a XX, literally were it’s a started is There or commercial that New we growth. doing approaches XX research companies the today started, that’s very in It’s two more. So years period number slow or when We market. XX gestation York only but more, market.

We’re XX years it. into

going supply. capital by to to the It’s is be grow. is market companies. by going be that That’s to grown not market create any the grown helping So going only way

farmers to Boston quarter BMS, Bristol leases these signed going big two or Diego. they’re have we like Myers and Lilly a You’re and doing, two ago San not in with like

that New see in the nature of never You’ll and the geography there. just York because the of topography

foster it it’s safety You’ve small different know other company state maybe think issues the is kind governmentally because you’ve place, is got to got that’s really there, up it’s other tax With that’s a City what’s deep the to it that in compared it’s But of land a a use away. will is. market create burden that all so tower thought the of go the company hopefully but State building Bay the the through build a, to to. Kips continue on But now and going market and and every but market, the to market. a help through to some development great the demand. a than It’s or and very And market we take we wake It’s others play then needed kind I process – will institutional that’s effort. a pretty high plan it’s of, process of and effort plus creation driven. a is clusters. respect to two an approvals broad unique and mean, then Much in I There and Governor really probably there that get, that of go area, RFP there. maybe decade it’s years literally that

mean, but the know don’t Phase investment, that coming probably does for and I longer of the outlook that that you things doing timeline’s I term Nice. And X? does too likelihood early increase make cluster that improves you are there? to maybe the I say, around encouraged more guess

are care are those that is to bodies can we’re continue developing. doing institutions Well, mean, of Part anytime build you I infrastructure research think good I which for or services governmental and that delivery health involved it’s not with.

really all at So Corridor best. things. those are its Side That’s Medical good the East

that’s But think and We’re is when anchored and by Mayor chose we say between really the to that why Bellevue Bloomberg. to it’s And capital NYU needed RFP we’ve will helped is site responded because XX fair we I it time. really over that it’s formation grow what years. been. last what That’s the over that company lifeblood that market be will the grow and what

are attract be – Or that opportunistic to just typically dislocated more capital for now. investment may one they And opportunities to capital for views are where look companies investments, in right bit book, deploy are Great. ARE of now? me. it for With at taking the regards some know finding maybe investment right and capital I your given just better And to Okay. when that. strategic? little then might book? opportunities Thanks Is last a new those give difficult more some you markets you lie the

attract Moderna company it we took That was bull company raise think had a Well, in XXXX I even been invested I sprinkled fund knows maybe capital in investment. in years to again four, over before which there’s great that because happen, XX say And investment Hallie with there. scientific said, high and great kind all-time took things companies Cambridge. on people year, and footprint that medical business out an as good the fair great capital. an started is this to helm three, gone then but prove, RNAi five mean, back in and that Alnylam venture startup it needs, everybody great the to IP, great do it’s has when helm period. time high a XX longer we a market think we of but technology, was XXXX, will smart a I early And promise, in the generally really protected has to invested at huge it unmet IP, felt and the was always story just to

that things are all they technologies that focused you of we’re really on interesting on as So suffering goal totally, sometimes create tremendous I the valuations markets on opportunities and many say, so give would are, shots may diseases are down opportunities groundbreaking better, that from. for

it. we at how look that’s – So

So yes, invest. good time to

Okay, Thank you. great.

Yep, thank you.

go question America. Bank from Dennerlein The ahead. comes of Please Joshua from next

high same-store I just the Hey today. had guys. gets on then color the for cash guidance? interest of all end the capitalized low same What and guide. question to And guidance. also you appreciate I a the

Yes.

Dean? So

property, the look think highlighted it my today, X.X% earlier is GAAP. call So commentary at if you same guidance on GAAP, And months X% nine for cash. we’re midpoint our X% at I

on right the end we’re we’re on the at basis. today. a then cash X.X%, on midpoint And So upper we’re

So we’re to nine at driving a for highlighted a kind Xx good the growth months. occupancy I NOI. benefit perspective And drivers of outlier

basis had we at XXXX, with then year-to-date nine XXX XXX So occupancy was also for driving double strength. in impact, renewals which to a early, and least early months, point the lease growth NOI early

So into backdrop. a us the nine We’ve the run our the for got a year. for outlook will rate which comfortable carry good spot months, that’s with full

capitalized the and about upper what Dean, the Thanks ranges? lower interest,

which activities continue trend the until business, out upward probably at volume of construction peak cap moment, The I QX Look, for you’ve interest doesn’t probably a often. run this basis, of on think the to interest year that very probably think our XXXX. capped in interest of expense; is we reflective about numbers don’t the way seen quarterly and rate meaning change capped an those interest

– bit, much So trajectory under for the the a our of costs of you’re little are what still of interest call capped The drives fixed. which in on expense. cost interest but interest. construction, that’s progress basis our function or you very There’s drives rate it construction that’s pure an just upward and would amount so as a little variable

CIP quarter-to-quarter So outpacing out of next as to adding spend the it’s will really quarter function to just that’s here a the two. at I or in pace deliveries earlier, a mentioned which, start peak

Thanks.

question, last our follow-up ahead. from we Citi. for Please go a have from And Michael Griffin

thanks opportunity? And be users, the worries the great. traditional coming portfolio, are pipe about be this would it’s more on. we X a saw I GE for but conversion stay to down this any prospects could Necco, your there Hey, for just space? backfill I’m about it it obviously; sublease potentially attempt the moving might think be of commentary X% of out that what to potential curious And there are news you the there office would

Yes.

with ask in comment, keep an tenant to maybe a thing but credit Dean there’s one mind, Dean? but lease to So I’ll existing

Yes.

companies in articles in mind, there’s thing company. other the press. interesting concept. – to in Michael, any you not key always think And it’s that I the keep will most on articles to about the I that’s guess the specifically comment choose And

don’t have we do really a square the Joel comment mentioned, lease Seaport it. As to that, much credit market. on. It’s XX,XXX have in behind around a feet beyond we somewhere with But

Okay, thanks.

any would remarks. for our concludes turn to over like Joel session. I this question-and-answer conference And the back to closing Marcus

Well, we’ll stay make and it quick. Thank you everybody. safe

attending conference presentation. today’s The concluded. has Thank for now you

You may now disconnect.