Alexandria Real Estate Equities (ARE) 25 Jul 232023 Q2 Earnings call transcript

Good day, and welcome to the Alexandria Real Estate Equities Second Quarter 2023 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would 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

could factors statements materially the forward-looking actual results contained Securities filed with in the and Additional from that to in Commission. those information cause concerning reports Exchange the is differ Company's periodic

Please to like Executive turn the ahead, to over Marcus, Founder. I'd call Chairman Joel and now go Joel. And

Thank everybody, earnings you, our call. to and Paula, welcome, second quarter

company, Our in resiliency model continues times of in pioneered and one-of-a-kind perform good business unique our which niche, now the lab both the our to post-pandemic space tough world. demonstrating times, well

science lab the for In fact, COVID-XX infrastructure. really space reaffirmed the fundamentals life our need industry essential sustained our strength and of

This demand for nation's favorable the our I every and the each and mission-critical industries, team one to Alexandria our member we differentiated financially of to operationally nation's thank and for business, highly world-class most quarter. of underpin backdrop serve, and second assets continues family this which excellent an driving want -- for operations. brand

A a and truly our has for the by an the unprecedented for pioneered on accounting NAREIT which Alexandria last industry lab and REIT, transformational REIT. most the to and metamorphic winning a ever years. made believe the REIT awarded best-in-class and which science niche any I big is for NAREIT innovative Gold transparency, team by Award the June life and XX impact space amazingly, out XXXX in best shout and finance reporting eighth award and

where billion a days financial we we of many crisis proud successful very $X accomplishment REIT. of billion." real debt the source of closing line environment banks the balance struggling are a in were sheet This unrated the facility significant of credit is great the add-on, owners since your of on and the accordion our the Upon $X to "Congratulations of credit any of said capital. expansion when We're built small one Alexandria to estate stellar

is of the It and testament Alexandria quality platform. strength, the a endurance to

So want detail, give bit some just to the a cover I of but turn let quarter. highlights in to perspective. will little Dean me of

The reporting line second the very quarter our a REIT metrics historical COVID. generally and and strong certainly in run was XX-year rocket with during quarter, ship financial of outside performance X- rates,

feet We ahead leasing nicely rental the square of the the a X%, historical had about solid nicely, same-store half strong run stable $XXX for almost quarter occupancy Positive and X.X million also per and Strong approximating in was up second the feet in X.X beating growth, both and million rate NOI consensus. at increases of square hosted. million especially NOI and macro quarter. FFO challenging share first rentable growth quarter continuing

The continuing I overall of and balance solidity continues. strength think sheet our fortress

environment. to maintain to strong a dynamic all ability space, our lab our and tenants and for should with operate coupled essential reiterate demonstrate the elevated moderately our Our confidence metrics ability in continuing successfully demand guidance, supply way,

let increase will part critical a M&A, biologics, $XX investments. me which mostly the the early-stage make just of industry, attracted of detail recycling, of high, with so XXXX science bolt-on a life have comments and Jenna capital rounds product Series far all-time deals, not in million, then positive A observations. a have an which surprisingly, good about a And and moment, couple continues is sign. averaged the majority high-level of a to couple in on

And of with let turn me intro, Jenna that it brief kind to Foger. over

fundamentals solid Co-Lead Senior Alexandria. of President here and Today, going the comment everyone. is and This much, Vice Foger, you these driver at contribute growth. the to Joel, I'm of of Technology on how life innovation of so secularly a afternoon, best-in-class Thank continued and science science to science vitality base as Science and and Alexandria's long-term tenant our health the good Jenna team fundamentals life industry life growing industry,

across significantly markets. industry, over by billion has in growing $X our macro demand the scientific, impacting by infrastructure and an commodity This market nor cluster which impacted approximately cyclicality life market commercial R&D is is value some $XXX for essential and and of driven of by XX/X estimated of REITs trillion today. clinical The is estimated industry the achievement fuel funding, science lab trends Alexandria's milestones space secularly continuing not XXXX

incredible With position our our over tenant a of place the our XX% a addressable segment from facilities current multinational imperative. XX% base, the XX,XXX strength. which diseases national and to with operate therapies, to than at of is Taking with remain up within beginning makes of a closer less lab-based pharma, taking and health continues this ARR, innovation look humankind known will

expected spend is biopharma which XXXX, continue past representing in over $XXX R&D In increase. deployed years, into an increase XX estimated biopharma billion a to to the XX% R&D,

immense capital of the in Joel new firepower the continue of $XXX there's a M&A, been revenue, pharma pressure its and uptick excess on large-cap with the Given mentioned. to pharma in sources balance significant healthy to on pad as billion sheets of late-stage pipelines

years totaled full surpassing sector. values liquidity additional half transaction $XX and first of M&A for pumping value The total XXXX billion, deal 'XX 'XX, the already into has M&A

increased life activity significant with in and and in makes $XX.X XXXX across levels. the standards line continue science we strong life period to pharma with Transitioning ecosystems see quite venture to which regional of half historic partnering of a total by our billion XX% well. XXXX see while up We ARR, the center activity as biotech, healthy from first invested also venture-backed remains down peak, our private pandemic XXXX, activity which record science

stay venture there in is that given new of with future Given private by broader disciplined dry expectation the the demanding very and capital deploy narrow and investments fundraising to capitalists to longer. still venture more record and a the powder of 'XX, are context venture high for years of need life may science IPO window, plenty discriminate, and 'XX market companies of funds course,

to of underwriting ones sight the inflection above selection rise continue Private strong and with management tenured that to the line tenant consistent value biotechs technologies with are criteria fray. own clear milestones teams, our differentiated

contributor biotech, up of for tenants partnerships As our make with our revenues as our innovation and ecosystem. public Vertex public across XX% This companies also and critical a ARR healthy our such include of products segment substantial be is Moderna. continues and marketed biotech a with tenant base Gilead, and to Amgen, to very

perform. Black compelling Biomass Diamond, follow-on heels clinical segment continues data. recently this promising substantial raised name Fusion king, a remains Medicine such For and stage our few clinical the of public of comprising Tenants to preclinical as equity data financing and on XX% tenant and base ARR, clinical to of our biotech public have our

always science very our tenants we our closely. team As technology continues and to have, of all underwrite meticulously monitor and

tenant of across facet infrastructure our we of industry With Notwithstanding operations, in into be base of course, market medicines, further will enhance there deep a this tenant every roster. relationships the that of and in the our ahead and of get always and is, type and to course, backfill developing process challenges potential each regional quality every our highest in of ecosystems macro of the some novel baked tenant model. fail environment. And

at our July over collections rent. XX.X% and XX.X%, Reflecting the already in XQ of of health we've base 'XX, tenant current collected tenant were rent

Now technologies, fundamentals, modalities, uniquely and industry challenges. tackle need unmet health persistent a the care innovation, our most and science by new positioned groundbreaking life catalyzed massive word remains medical on to major solve strong and

age, the the the bolsters science year new Collectively over be our the biology at productivity a set only are the drugs of drug calendar XX of industry. all-time golden XXXX on of high FDA the forefront vital of innovation. over this over of strength to new review drug to approved and FDA PDUFA the record age near industry off historic bringing of new dates patients, year XXX past emergence this to this and decade, many impact a track medicines applications. new approvals, has on The potential the to of tenants growth and is starting new with new life In reflecting

respective failed in long name lacking given Vanguard a a debilitating each and ALS, neurodegenerative few, for debilitating approvals development received tofersen for feat Pfizer RSV. vaccines, And disorder received Biogen's of current incredible a approval this neurodegenerative treatment current their RSV year a also To -- history vaccine GSK, treatments. new an lacking

trends Alexandria reaffirm fundamental recognized These truth the nearly decades three ago.

lab improve human infrastructure fully for scientific centered integrated space is in Our our and innovation discoveries mission-critical to hubs tenants essential health. of advance core

programs house, Alexandria's safeguard to of XX/X provide every fully equipment, and for facilities in intended scientific tenants integrated workflow optimized dollars and on billions rely purpose operate, the of infrastructure lab-based research, specialized cycle, pipeline advance commercial market central assets. and a compliant help aggregate to Through

Much in building advancement utilization and and constantly capturing that a It related and drives that and science for is is intellectual space the of property space. data consistently lab like the center this storing of Alexandria's data occurring in throughput, out buildings is throughput and correlated with not people the and scientific spaces flowing point volume any of volume, the velocity at in and in our time value of the our campuses. of demand

we tenants Alexandria's a Alexandria's pre-pandemic by consumption space lab more -- electricity utilization consistent seen as across the consumption. our And such, relevant same-store for today assets lab asset is As same-store have electricity measuring space we in years. consumption of metric energy energy base did

non-technical within and space Alexandria's workflows intentionally floor assets, be to space spaces note, to important seamless enable plan adjacent cannot laboratory as premises. designed decoupled. Each fully lab the and nontechnical building within base and leased the is laboratories integrated and tenant Equally between

science new the experiments, interact interpret in including data, nature about some Remember, and of our of engage experiments, assets This business space other from clearly critical aspects with the in tenant cannot the which related to be activities. or companies in plan majority of analyze in science make the employees performed conduct lab ways, is data decisions life home. research workflows, lab the

pharma and biotech collaboration, translating also fundamental and by diagnostics for is collaboration and life lastly, to productivity discoveries industry science innovation academia companies. cures overall critical treatments, into and from really And

our a XX access Diego point of San innovation. collaboration collaboration and two And Alexandria this XX the recent Lilly of It Greater I multinational in collaboration biopharma's early our top markets is as key from the and to J&J why Verve also from recent to space Pipeline reason across lease example Therapeutics across campuses. Boston, examples regional in

are, is forth more more intentionally collaboration. tenant of these discrete executive people a ad and in one by less really wandering or spaces back Now teams hoc. managed correlated with course, regulatory proprietary tightly Clearly, building not collaborations campus employees to and company not on less given collaborate are and or or from considerations, between the and a

secularly the to environment today's Alexandria industry to to to will best opportunity benefit for an is So advance growing it the to will life fundamentals tenant and value science continue comments, prudence, reflected life while my base the that and continue broader to extreme wrap from bring across the companies macro warrant most medicines technologies science patients. solid

I it that, with off to Peter. And pass

ago, when is Jenna. very few It upon way concise reading Thanks, over few a was arguably of the past somewhat report, describing the A even capital by boards. past years. the uncertainty couple and all has we days enemy the science decision-making of economy been insulated a in broad harshest and the tightening line, over I by executive slower hit quarters, seeing the investing. markets of came have life budgets teams manifested of the It what industry

starting be continues stopped. are it. to changing and innovations not inertia the being is biology success rewarded. turn being like positioned The golden Alexandria age of in perfectly on to we're is The progress capitalize labs, the achieved milestones is again, that and bring, flywheel will excited see will and to Nonetheless,

submarkets, deliveries supply, first asset to I'm square touch seven and into leasing, hand high square In year-to-date XXX,XXX it four XXX,XXX feet to projects projects. Dean. in the going our total then to we and barrier entry over on development delivered briefly sales to pipeline, feet covering our quarter, bringing

the year-to-date is weighted next deliveries Moderna. NOI generation yield who X.X%, build-to-core investors to world initial the bringing by of $XX Cambridge incremental average East the companies Annual million. total this project brought from influenced for in quarter's additions million, $XX The totaled housing a stabilized NOI the to

multi-tenant Development an and six in activity covering saw quarter feet projects. redevelopment leases approximately with XXX,XXX for projects uptick square the of signed,

of have XX,XXX quarter feet we under end, square another As negotiation.

expected the three Drive During both next into of ground-up in located conversion quarter, construction opportunity placed XXX in quarters, projects in of at to lab development Boston Park submarket the Park Greater stabilizing XXX the and we the Drive, commence Fenway near-term beyond. and XXXX neighboring a the

Alexandria development will to the portion Necco, institute, closed joint will with in the which of the of transaction, the of This a be great Drive to the of the to XX optionality proceeds April, help feet project in examples a A fund of highly complementary development. XXX remaining is fund process the remainder being and that Park venture are mega along a pipeline. research fund creation value of presold has square will XXX,XXX which the its campus

our XX% is XXXX. Fenway end, primarily leased to million from pipeline quarter leased of of was The At and and decline incremental addition generate greater $XXX NOI, second quarter XX% expected annual of the of projects is due the to the current near-term last quarter than new projects. through

would been XX% have Excluding those additions, leased. the pipeline

and strong numbers again, mega loyalty, our to Once Transitioning operational a continue supply. market. campus to challenging drive brand leasing excellence and strong offerings leasing in

is which and of again the achieved feet. a X leasing consecutive to our pleased report feet leasing quarter have second pre-XXXX we million volume square are where volume XXth five-year in X.X achieved average square exceeded quarter, million We above the

rate heavily the CapEx. their Seattle, of to X.X% Maryland. re-leasing spreads space minimum remained Triangle on and and effective build-out, reflective numbers, operating net down in renewals strong generic rocket assets enables leasing towards due which a coming of Despite the basis in rents weighted COVID ship were our XX.X% vacant cash Rental increases Research volume from with

they also significant Another uncertainty, markets, a of investors it by put from demand, a positive to notable realized powder XX% three to driven dry increase this light end top economic perhaps are tunnel at to in XX% to need work. that the the quarter seeing the our sign in when comes but was likely ranging

a requirements our to existing demand typically of pharma because There also positioned by opportunities from been square a large increase amount which of few venture in are regions capture relationships, an anticipated many in for plus have creation investments. leasing. foot biotech driven coming is XXX,XXX these account and this well significant Alexandria

square year, have the leased In existing the of X.XX first from of tenants. we XX% half generated which million feet, was

considerable the providing our discussing covered in and our mega wide high-quality addition, spent a choice campus clear during G&A In our time variety of are white meetings supply scale in of amenities paper. offerings it ability REIT We to recently the companies.

the The from in update you first meetings those for the paper and we'll of data white it presented here. was quarter and 'XX,

high-quality As to entry to to projects robust a high the analysis believe and on are competitive ground, supply reminder, we in we perform ours identify building-by-building new our barrier track from submarkets.

offerings high entry on our operational drive and and generic We the to brand AAA excellence focus markets of mine in to lessen primarily campus locations which enables loyal and our leasing tenant barrier deep will mega continually to supply. likely us base activity, our impact vast,

X.X% estimated by which Francisco, of XXXX In is a unleased delivered to unchanged. X.XX% increase during X%, estimated to market remaining In over be a competitive reduction supply remaining be of be quarter. will to in supply lease-up XXXX in supply the XXXX, unleased San last X.X% is to of Greater is the inventory, be X.X% competitive market of Boston, quarter. In the unleased market to due that inventory slight inventory increase inventory, delivered competitive

supply unleased estimated inventory by In supply space which direct be mainly downward with revision to a delivered unleased a competitive In Diego, square X.X% the delivered remaining in estimated during inventory, vacancy. competitive market to of XXXX, now to is X.X% X.X%, be decrease to will projects a reduction in being due the year. footage be of XXXX delivered increase San to X.X%, reflected unleased due is of market

one. vacancy in sublease pause X.X% decrease competitive a reduction part Direct of the Greater in X.X%, submarkets another market at project vacancy direct will sublease conversion Boston core stable stayed scope X.X% X.X% to vacancy in XXXX, and our increase as follows. by a increased by but X.X%. net increase In supply inventory X.X%, a market is unleased of due a operation to for available and for and updated space

for sublease total supply, a increased increase direct unleased of at available X.X% to vacancy due Francisco direct of X.X%. from operation new of San space in net vacancy but by and available San in and operation vacancy X.X% in Diego sublease to stable for a X.X% delivered by X.X%, to stayed largely X.X% a increased increased net space X.X%. vacancy increase X.X%,

in supply next delivered to new and be we'll tracking are statistics quarter. on update those XXXX, We you

read be program. higher on current to harvesting costs, of our I'll our construction high asset currently volume XXXX recycling below update cost deliveries, supply that is and capital, For an due will conclude lack a financing debt with value construction. likely of available adequate under

We fortunate are and assets scarce asset proud to in own quite a class.

million all has the our make have in another midpoint markets. we sales, few end, of little Alexandria progress activity value the which the closed of our know, and over including months of because last able total for great sale quarter transactional a you product attractiveness our But had As harvesting At have had the to reaching guidance. million, Necco little quarter towards million pending broad announced a past $XXX of been goals. to type, halfway $XXX XX $XXX is

a have reinvest pipeline. that if We majority progress other our into the vast plan of and assets opportunities. guidance to execute The of would or to fully non-campus in proceeds number choose of be our dispose value-add noncore on assets all efforts those we to of are launched exceed we soon identified the

XXX% interest for is us strong on be X.X the or one-off to a a foot around when million of closed no will to there us, first execute campus years, sales opportunity a on aggregate opportunity. amount in a asset $X,XXX in lease it. needed Torrey This There Pines approximately include mark-to-market the for was for expires fair sale quarter asset capital but that was a and significant Notable cap at the square in per XXXXX the X.X% of Road $XX rate. North

joint an with We their Drive, XXXX Centre jointly sold position who wanted partner for of venture initiated Towne exit and asset in interest an sales our only. interest to the process XX.X% institutional owned their

Towne this at building, we participate we with Given for asset, the tenant strong ownership. rate, participate demand the our sale, the the Centre mark-to-market reflective which cap X.X% in in in will credit University high-quality strong a proceeds decided captured future opportunity $XX continued to million of and

square our non-core $XXX million a Waltham non-mega of in combined Second A located Drive asset quality, vacancy legacy inclusive a of in for XXX assets assets term. of of of credit affiliated X.X%, and per $XXX.X sold some at Mid-Cambridge campus portfolio Avenue mix & cap cash XXX reflective Memorial foot rate and our or

We sale the also adjacent pure XXX conversion campus fruition. to not Originally Newton, asset the planned with for completed did lab as office of Grocery assets mega into in to of assemblage Massachusetts. access, an green line part a come opportunity of

decision So, noncore the The reflects office we to price prudent per its asset. made square occupancy. foot XX% sell $XXX this

needed negative we to buildings a of amount The the outside are far sentiment of value asset program. harvesting cluster reposition and capital with very of the results achieved asset. our locations pleased office significant thus recycling Overall, in

identified achieve have through XXXX to enough opportunities goals than fund more dispositions. we our noncore to mentioned, our primarily growth, As

pass I'll over to Dean. it that, With

million for were of Peter. second Thanks, development months annual here. by income NOI second that service right. six the related net commencement driven revenues for Dean to were quarter over projects XX, square placed up $XX the XX.X% was very Shigenaga and quarter feet redevelopment over XXXX, of results and operating the XXXX. All of up Total We rentable the million, second solid of primarily of XXXX. ended quarter. the in the in XXX,XXX XX.X% the Good second financial June quarter second quarter afternoon, $XXX.X operating everyone. reported and

driver pipeline key our to outperformance from The significant of NOI comparison growth quarter of consensus. was this the completion in projects

of consensus. was to generate the per per key the Additionally, we XXXX, to of year. second growth solid relative of FFO for items adjusted over on as X.X% beat FFO other $X.XX, we're share our up quarter guidance of and at X.X% slightly year diluted line another the growth midpoint in share track

operational statistic or highest science REIT generated revenue life tenants, represents strategy continue and our annual high-quality by traded brand rosters excellence investment-grade the large-cap Now the of in our appreciate today. publicly XX% one from our entities quality is mega-campus team. industry of this and to client rental

Our remain at collections very high XX.X%.

Our growth year, for at solid half guidance strong X.X% for second the cash in line very basis, of Same up a and adjusted the X.X% on a Same-property and results X%, remains on NOI first EBITDA for quarter year. were was basis. up and up up XX%. the very X.X% property the full and margin X% with cash

for outlook X% our a basis. remains growth of XXXX cash reminder, solid a NOI midpoint same-property on and X% at a As very

small to transactions leasing. driven and results of related renewals rental the leasing to and growth mix lease drive relatively of turning volume space. that re-leasing a are Quarterly the by overall Now rate

on quarter, renewals XX.X% X.X feet, rate and second basis. for on up Now re-lease X.X% space cash was in rentable the leasing million and lease volume the a was and square growth rental

on driven rate based Now by of out out San XX.X% first basis, Greater rental rental comparison driven Maryland Boston, and Area quarter XX.X% for which Bay was transactions rate in the and growth Francisco and to second of record Seattle. transactions by was quarter cash Seattle Triangle growth Research in region, the a of the

for space at growth The cash to and basis. base mark-to-market outlook re-leasing midpoint on rental rental of a overall XX.X% in-place for at and asset the remains related entire leases renewals strong rates Our very remained solid on lease the XX%. cash XX.X% rate for

expenditures fall capital Now into two categories. key generally

and space The through first non-lab on redevelopment. of lab redevelopment conversion And to is time is specifically redevelopment. space focused category development first the

trending Now averaged nonrevenue-enhancing five the has been our for nonrevenue-enhancing net last XX% at XX%. over expenditures. XXXX And second of expenditures income lower have operating category is the capital capital years and

annualized an For XXXX, the this closer XX% operating 'XX upon income is net to basis. quarter second on based

lease expenditures first year, allowances half the at the square these included been costs capital earlier. per have very $XX in the modest of and foot the re-leasing related about improvement space are nonrevenue-enhancing Tenant I renewals to that and for mentioned

expectations consistent with was first quarter occupancy XX.X%, quarter occupancy. line at in Second with

as properties the third or square in included quarter recently of growth flat XXX,XXX June midpoint reflects guidance to from fourth that quarter XX Our of were XX.X% quarter. of from the and XX.X%, feet and the and XXXX approximately vacancy second XXXX. of is outlook XXXX in occupancy acquired X.X% occupancy occupancy The for occupancy rentable

Now already is and ready quarters of acquired has the -- the for will over an is been negotiation. and vacancy recently XX% under XX% number additional be already leased occupancy of next

Now a entire thank $X you relationship and and huge Binda credit. to Marc team our line billion under lenders his of important our

aggregate up to During the of we from our billion, quarter, increased under available $X billion. commitments $X line credit

Now billion allowed us sheet this to has XX. $X.X to increase liquidity on our over June of balance as

first of 'XX, we Now toward during our and dispositions had partial with flexible pivoted remained sales the outright strategy half interest. versus of very

Our half There second for our of first the are the details made for on focused on and are and a dispositions. X supplemental working has of half partial your interest progress transactions for Page on on more dispositions year package the primarily reference. team number sales of outright excellent of

cash from consistent dividends to flows. in high-quality our turning Now growth

with dividends representing increase for ratio low have run activities XX% last of payout conservative months. common operating and over projecting XX stock X.X% quarter $X.X after FFO million, the annualized in rate $XXX cash net flows from reinvestment. a for over a We three-year billion in of second the We're dividends

venture averaged investments a cost investments as the for $X.X under per and investments. quarter gains just of eight million last on to of venture on our was were in $XX for XX the $XXX June has basis venture $XX.X quarter our quarters. second million million Gross unrealized included Turning Realized from gains billion. about FFO

of Now on our have income external operating pipeline of million feet. growth, incremental we net square $XXX X.X rentable million from

in and And leased will $XXX projects rentable aggregating X.X million XX% income. in incremental expected generate operating of -- reach the projects is Now XXXX these are of feet million square XXXX. XXXX net and stabilization remainder to

million reach have generate XXXX after $XXX we X.X million is stabilization expected that another net and Additionally, rentable of income. feet will square operating incremental another to

are guidance beginning guidance, on to detailed package. supplemental our our Turning updated disclosed assumptions of Page X underlying

of down from plus per outlook $X.XX $X.XX plus minus updated Our midpoint to the a from or last guidance was range minus XXXX quarter. share a range or for

and $X.XX the our diluted EPS our in of Now to $X.XX range for share change midpoint with $X.XX $X.XX. is as FFO for of from per guidance is $X.XX adjusted to no range

Now year in this last excellent represents a X.X%. share FFO of strong following growth X.X% per growth

dispositions mega-campus partial XXXX and integral overall strategy sales for reflects our focus with enhancement fewer interest. strategy our outright no longer interest of partial of asset base our Our properties of for sales of disposition to through on

this to sale is date reflected This strategy have of for transactions the the the a of result target Now outright year. an XXXX the of potential half completed replacement capital and and interest properties. an of to we uses our a sale in in to in due second sources update transactions did of partial with

from of funding change estate. $XXX change this construction while spend, did reduce million did real with for in construction a a partner Now additional spend not result funding gross in an dispositions in it by potential JV that replaced was

turn stop it Joel for it and to up questions. over open there me back to Let

question go comes with our [Operator Evercore. Please Instructions] And first ahead. today Steve Sakwa from

to occupancy XX.X% Dean, I QX. to build more pretty to midpoint, little bit But about. was QX big a you you there's just a like from are talked sounds guess, It could I get if that provide the wondering XX.X%. to flat color on things that uplift,

Just So leases are kind please. there of think based kind a incremental that yet? do? bridge, of that leasing walk that you us to going on help signed bunch just through you're of Or are commenced is not

Sure, Steve.

the it So leases. the in from growth anticipated occupancy of is signed some quarter, fourth in

acquired the the the the recently time feet square commence includes XXX,XXX in mentioned that leases occupancy of that will year. executed vacancy. about by growth have end That I in some of We for of spaces the

impact And doesn't XXX% but same that key anticipate also time well. that spaces the order some should much of slight out leased. which of operating to in leasing the as a development have delivered occupancy our also some the by space benefit delivering we be out to of then drive from to tenants being that delivered to complete We they're close activity that need growth. pretty pipeline, we quite portfolio, there And is have

could to that a follow-up, you the think that spec as just done target? the quick the to a as just that team five hit frame get needs you over maybe need to leasing you months range So next maybe help complete

pipeline figure basis, rate leasing that, -- in rentable A million previously I activity we've X.X right activity you that look to averaged at run quarterly know, volume value my of back fingertips, and of vacant that out Steve. feet. don't portion if leasing of at a 'XX and creation XXXX, square million, the period we're have development leasing stuff. But our the as of look, X.X comes you and pre on is record of which redevelopment that

the So, re-leasing on only square rate deliveries. on of we need per average, is portion complete probably, our X million quarter; to feet and fourth renewals to space stuff about related is that quarter run that and a

imagine, can As for a only of that you quickly. real that be -- estate it's portion probably ready sometimes actually most can but X of feet delivery company, million that any space, for square immediately, delivered

So, get done. it's fair, to do number, leasing to have we But not a big be some Steve.

that we've work to got through opportunity. so And

guidance. over kind might it it maybe amount. Okay. have question. about And Maybe when a in uncertainty there's or I second talked But dollar the that think guidance termination. confusion in of the not hits, Toast know how been some had just or just you I

that and in should could transaction? So through back, expect you fee termination maybe from QX to some maybe the in and maybe what walk QX we take just the flowed what space through offsets

Steve. Sure,

So we we Fenway tenant, lease at a space XXXX. in second pretty of XXX related there that good for in completed this was the reference. for January in-place back background the The submarket was quarter. acquisition an that this to an is in Park took opportunistically of Toast example

the only of for diligence be conversion for to during was Brookline, campus if through that Obviously, commenced site were lease-up floors remember, a seller building due of we had it. identified team Fenway pre-leased acquired it the lab XXX acquisition, successful multiple the construction the floors And targeted will suited XXX after had this and that for XX% development our on, our that Brookline at space now These time redevelopment. office you was our at redevelopment.

construction the of the that rental development project were well at team Our remainder underwriting. -- exceeded leased initial our project quickly rates that

Toast, XX,XXX we opportunity in commence going to about back the square we here from rental feet to when get in back at the feet rentable remaining rentable end square total. our it redevelopment. so was square the back get take to XXX,XXX feet XXXX. about think XXX,XXX And We're space had XQ I And of

due the from is this Toast The that covers Toast that to net bottom about a And we'll line, the remaining way earn of entered with rent think rent about write-off arrangement of deferred rent, really into was we of Toast revenue the quarter. X.XX to quarterly the the overtime. this

so, revenue arrangement end this to the through allows our us earn And of XXXX.

pickup to way we're to run rent. about net this the prior the earn And going the benefit slight is relative a think to is rate

space lab And So of timing million The up $X of or lease about up move after a couple our for so. XXXX, new able in there's successful million pick XXXX, key benefit XXX FFO. is then of a Brookline. up that XXX we might the takeaway we in expected at similar Park to bucks of were

so, And start earlier to sooner to were access to than the to able excited be that later. redevelopment get we

you. our Dennerlein question Thank And next BOA. from Joshua with comes ahead. today go Please

I like a earlier, growth. of focused of guidance an the half acceleration confidence second off on the year that all gives follow-on the your is XQ in but looks still reacceleration? on occupancy based lease color. What you'll rates. see growth the It appreciate that you the rate assuming the Maybe

about were or Can asking you growth? clarify, occupancy rate you rental

growth. rate Rental

rental remind to it, call cash with to outlook just everybody, basis. of XX% a a XXXX growth XX.X% XX.X%, range -- our XX% is of for a rate outlook XX%, to a of midpoint midpoint our So, on XX% for

and to Research the at was Bay on for XX% and everybody, And a Area Maryland just XX% to recognize quarter, basis. cash San Triangle. quarter was important record of pretty different first Our consisted growth rental primarily driven remind rate Boston, second that It's by which a Seattle. of subset Francisco, very Greater and the most was that Seattle, geographically,

about pretty growth GAAP cash you across market think of this outstanding rental on a rate type basis, of when -- When REIT sector today. XX.X% basis, the and that's you X.X% XX% in on think a

on guidance look of quarter we're that gave. that as the we the rate and hit actually track feel range So we're that rental pleased with we on very out comfortable the growth we to delivered

our a and at the talk unique us capture I gives have brand in What advantage that excellence, think comfort? heard opportunities us about to strategy puts we you've operational mega-campus us think, our I an marketplace.

Okay. It's seeing already not It's Just based stuff signed. in the are signed? of... kind that's on kind just of you're pipeline what

weeks after Well, end. we're only quarter weeks X X.X or

to six the relative as little what So, look months forward. sign for there's going we to full we're very activity

to have tuned. stay you'll So

Okay.

mentioned Peter, then disposition you range. above your And Okay. I potential guidance heard sales

go give additional those sales? the ahead would Just to what make you

so attractive, apply it, We're going in consider we over if that up a program. targeted we'll to need are very next way But highly selling year's we what end that if to. with definitely amount and don't we that market we that don't values need towards overdo

other Any question there?

good. I'm

today Please go question Anthony comes Paolone JPMorgan. next Our from ahead. with

I year. the about into think I think you portfolio. mentioned -- that question, Dean, I think XX% XX% was First And the coming across mark-to-market number

to that's how from just maybe happened of and in wondering, versus gap market bumps talk can much you higher closing some far? rents that So of thus moving the what's the just

that here. quarter, correct, is we XX% Tony, current the mark-to-market. are quarter so you're our The that it's was the XX%. quarter where was for XX% today XX%. Last on it before Yes, before was and outlook Dean

quarters. over the So, of leases we have made some last that our number way executed mark-to-market through with the of we've

outlook by is slight driven the executed. to on So, there move specific and actual a here of most it's our spaces. primarily on that, leases adjustment maybe But related we've

expirations we just will months, XX think hurdle you and development in it's of for it out that. talked the or just bit it's start got new a for just that. I Okay. looks in kind coming reason with just coming XX, XXXX, But and whether how And to just out Park up? XXX like general, so the ground new Just moving XXX X.X projects, for instance, incremental go redevelopment about so next redevelopment, pre-leasing, about what's think into and that or about what's in then, the whether Drive should up you But million forward guess, returns? of the another teed stuff expiring

up for acquired here. contractual So part XXXX are that is recently leases exploration. to And and keep at exploration in first we burning question really mind, these on of have In from have your these of the off as saw. a coming an Tony, that the part do at where opportunities case, we your let start looking spaces are front. this all related look What me in-place with acquisition projects are if example, for number we're you most

feet about Only the to is the tackle a portion of It's for actually opportunities square roughly -- something that it's number in of actually expect future. overall that that is development XXX,XXX we near term.

been is that future going So And it X.X construction but not and expiring site in some mega campus design, with really of start go immediately to future 'XX and X.X entitlements, to opportunities. these on million that's redevelopment, XXX,XXX because that's development -- for through possibly associated vertical development. targeted needs are is work,

those. build square at here the because to we opportunities. or so, we view there's to start tackle. look to market, our The current projects, remainder Those potential more But feet of near-term we'll speed square redevelopment can time and is those XXX,XXX be would XXX,XXX as today to out feet that, sit so less roughly opportunities of XXX,XXX are

number the much smaller. So, is

other think We're well-located development. for on the very approach find that campuses, need to and we that to remain given redevelopment to primarily are As we projects macro have development going how projects far environment. do land as we concentrated disciplined focus going look question, really Tony, in you're your I and our with new mega future at our it? to

from and development our to future to pipeline, think to on maybe you expansions as projects. And It's -- important continue it's that address about are opportunities these important have mind in going our to we requirement preconstruction keep clients. the we to pipeline on the recognize the advance flexibility activities not expansion needs future

sites campuses vertical activities large, they to for oftentimes, commencement value commence mega And sites to of require design. actually Class it the do delivery before Entitlements -- large to clients. construction we entitled. these to add ultimately a can fully vertical They the construction. from years And reduce our campuses, A require space so time preconstruction infrastructure require are the

where to in we'll with Tony, macro back getting environment. the approach, question, just we remain started to again, our given very So disciplined your have

more Yes. just Maybe little Tony. color, a

tenant, in a to us in West portion We in have campus case, tenant, Coast Coast. one approached on both And new that significant the entitling case, take mega on we other cases, and those we're a current East of one the have campuses. one have, the former a

positive. sufficient we those times, about our thinking many as Dean that So, to as to would long-term we're site something off, sure all of is cost and to Peter actively our before make want and But and be entitlements said design capital IRRs pushing spread things. kick certainly said, and we

Okay. And just one last one. if I could ask

just you the can And and office just lab think us from like perhaps your scientists buildings well, I you remind Just guess, in split home as around in that between do type today? over workstation, discussion what's space the time? working changes

here. Tony, Foger Jenna over it's

comment guess on that. a So, I

our nontechnical space. a the technical between assets, I we've -- split be historically, and training in mentioned lab course, space lab lab the about decoupled. again, on seen XX-XX earlier comments, cannot of space in as So my the It

In some a XX% and level a cases, go of lab that's to bit multiple of programs platforms at XX% that's kind we're yes, kind seeing up pipeline But probably it attributable once. guess prosecuting mostly to thing. I or companies high platform

gene new Tony, cell environments too, back and of companies lab And home the with kind of out and complication into Yes. therapy, modalities, enhancements been The therapy, well. et as the cetera. certainly the the before, we've and more lot processes have COVID certain pointed remember, of also caused repatriate to and much as enabled work sophisticated a expanded overseas

last to have macro three a big those that five say, two of made years. forces kind big the are So over difference,

our And comes today go Please with next you. Thank ahead. Citi. question Griffin from Michael

a with termination here Joseph guess, Nick with lease Maybe the It's up starting just follow-up, Griff. on Toast. I

$XX the was guidance million initially and that clarify, to in new want or incremental? Just is

was number down. deferred Nick, in rent have in So range. that place that total arrangement The in that was down or the to out earned with right $X cash the $X million arrangement was is prior over million way time something $XX replaces in range. rent with I that of to million front written what the about me, The to that flows think don't is were consideration take but Toast it net -- effectively to number something Toast. or that

XXXX, net-net, there's so in each very mentioned, at bucks million I least it's couple through And upside. a year. little Like

big in So, any it's net really way. FFO not changing

the So, lease already with couple question, revenue with lease was business. of that to did to in in the What generate acquired change was pickup XXXX, a XXXX. specific in because building from in in Toast this was for a back to place Remember response going It our lease your FFO. dollar was it we're the guidance? million

selling But you it. some improving Got noncore? Was guess, more the portfolio wholly-owned on expand I Obviously, it more the Is can And that? sales, pricing maybe JVs of from pivot, plan. then capital just asset in broadly? selling about you decision? how more do on that to of just that the terms that's strategic by a think

about Yes. to -- was in back has I'm have Peter 'XX. But Company -- respond is startup garage kind Joel. of the a that. to going I -- this I'll think have

start So over We strategy. even afford of didn't grew, go into did years those Cambridge as kind a of had campus its regions, We start we've variety it even to couldn't grew strategy. a assets. many in days. We not a mega-campus

assets assets of with So nature tenants workhorse solid very, solid very with cash solid our set a solid really of in the flows. locations and

core Now move entry us enabled assets. couple of in to we've barrier of as markets mega-campus high or as last we has over this noncore let go years to strategy moving those this to the to been really

fundamental of But Peter? kind that's frame. So the

best really of still And It towards far is getting mega pipeline that asset, the it proceeds that campus. reexamining improve that assets at assets. Necco. one-off likely the somebody in and continue in one development Nick, a very it in XXX% But that duration us do other bring complete could is development as like non-cores at value. lessening assets just into for number we campuses tempting of mega part world of and our to the was and the concentrating JV of to and funding of base as asset portfolio we as did of just seeing end made we well it then the to the the as Yes. day, sell overall long far story of the needed our and much just substitute had a to it, as keep fund better our to

here This Griffin on Nick. with is Michael

was question order do to report kind for a pick And to Joel's saw expectation Is Boston. of one VC translate this recently Just you in incremental VC there need capital around incremental VC in where to showed funding, I that positivity to some your funding other in up markets? see see demand?

returned I rates remember, Well, on of capital. think I'll kind take high venture the Jenna run her of kind to you pre-COVID. But we've give have

slower allocation still a But is seen is maybe the some What market. Jenna, greater numbers. it you've reserves just macro and healthy. So given

true. absolutely that's Yes,

So seen we've $XX.X in 'XX far comments, about as my billion. in so mentioned I XH

of is across science So this in Boston not and center on if line, obviously, market, really is life with XXXX right being the this kind of slightly -- Greater XXXX, activity. above our levels,

of across but this of leading chart, we kind ecosystem. seeing kind the So are our

next of certainly into the dearth the the We're opening kind the again, end had. window of in a kind to be potential there's of to pace opportunities see financings been of but we then maybe down rationalization And venture no IPO as a on allocation also the of seeing mean, but that increasing, Joel mentioned, public investment a a a little I trickle in capital disciplined as terms and follow-on side. of bit towards of year year

be I 'XX highs, there science center early even comments, to like with being of 'XX, to my in at mentioned really and dry And all-time 'XX deploy. kind fundraising, life continues powder

this million all-time high, astounding when that's the about pretty think I it. And comment remember made, Series you $XX Yes. that A, year,

go of today Thank ahead. you. Carroll comes Please Markets. RBC next from Michael Capital And our question

improving? biotech Did down you turn the more in now and jump in that so guess, you to some I tenants -- I did Can were wanted around or and the that you on just color active? you is mention flywheel delaying were mentioning remarks, decisions Or are on, some again. slow year now I the that can just provide your being that? provide additional comment? prepared Peter, starting flywheel color past what to it's like mean,

Yes.

But that Mike, XXXX, on market thesis since is So been central I've Biogen biotech the I'll answer the keep of -- 'XXs, tariff early XXXX XXXX. bull mind, market 'XXs. has early bull they ask in in and maybe Peter to the industry just It late when Genentech fact. since longest were days through was started and in Amgen that the seen a

So that says something.

'XX, rocket the with of then -- And and the and remember and remember, 'XX start just quarter activity move. first funding kind of you amount 'XX, index to XXXX the of years into the biotech saw huge and ship of

Now of remember, science, biotech started Peter? is to of But the life but macro. a sub-segment of leading all it a move as indicator the

Yes.

confident it last would quarter's some to Michael, just the positives wheel I'm So That, this had that comments I financings going the XX% remarks, uptick, we one actually to companies three starting significant knowing had mentioned happening, with as weakening is are that had, demand. in in momentum in feels again getting markets. and XX% continue. a our been in And call, turn me, I coupled building, it's we in news, have to have of my prepared demand quarter, that like a out pointed top to is good that seen I

Yes. companies are over markets of that sector. number I footnote, there the That's in exceptions good for the on as just a that IPO preparing sign. last, XXXX and a extraordinarily would possible And except really for has public say rare personally know I a the an been for say, not

I going obviously, forgot it's upticks. to activity, had the action today maybe and think they is where significant think of M&A are kind what Fed partnering the tomorrow. peak people has and of I or looking at that day all strength

which therapeutic clinical there's of these the some all the been So classifications. -- one disease. advancements some and And that directors failures good here. neurodegenerative said I means But Jenna or Peter a awfully in is modalities and seeing across area all ALS, of days obesity area, darn had news and good our there's said, We're died remarkable pretty in young daughter always diabetes activity. former who think that

think is what trying with like are are the and then that in process? get will do guess, their Is willing comfortable them guess, we guess financing, the and are today? to into actually mean to comments? to that make And quarters? read I market few and decisions? cause driving, Great. Okay. that allowing right kind I expand next just is your uptick can that growth tenant activity, incremental of research comfortable overall now? people more demand over I driving more And I what they Are it you execute

and industry, is lot back really that need It dry work. to uncertainty science to put are -- what's mean happening go think is has people economy. entire I uncertainty I comments, Yes. touched that a my I theme back of they and the life of there's on that starting has held away realize the held starting the to to powder and

of markets going move before, things that to that a money. pharma So clinical to were met, on grow. we're seeing And we're new are position able lot investing occur, we raise big to our is When be top of continues in of the formation the and seeing themselves -- companies that that, company not biotech think milestones to investing science forward.

what us positive is giving outlook. that So the is

Okay. Great. And then me. last question for

front, developers that past life around over non-dedicated Has new you science occurred of so? or slowdown a supply the the have seen On some quarter the stop-breaking of those projects?

not inexplicable, to decided of forward, there be quarter's We're will some in exceptions seeing have With ground, breaking folks that update are anything but for a couple which on next are much 'XX. new that yes. move numbers of the

Vikram comes go with And our from today Thank you. ahead. next Mizuho. Malhotra Please question

just want and color. some back to I go get more

I the top But guess, You you mentioned in in are color? you back these the just comments, Can more up. to requirements your smaller deals, those ones talked and new in XX% top market give about XXX,XXX Are XX% for foot also expansion picking in specifically three the us square markets. markets? increase

and X.X pipeline maybe we And if sustainability the color the around second you the second of give developing qualitative as you in look then think are just million leasing, us of can kind pipeline of the in of into comments on half about how quantitative the the deals terms half??

me is say Joel. your this first Vikram, yes, Well, this regarding maybe let question.

what we I too say proprietary don't to do about we talk requirements. the it, nature probably think we of much just how given want do and

Some are sole-sourced RFPs.

are broader Some RFPs.

from come our Some that own markets. the are that in base tenant existing aren't tenants

I think we make don't comments, about want particularly to any that.

I think give on when the et cetera. rental best can the we occupancy, you issue -- of leasing, guidance to comes it we to affirmation comes both of on based judgment have Dean's when only rates, it

of XXXX We haven't yet. given our view

that will do We toward year-end.

our of leasing. fair to But the of numbers history, from comes I that, and The cited quarterly own long got a remember, Peter that vast some it's of think we've say tenants. majority

a ear have. finger in have have we the I the And very people could -- groups pulse think on few so and ground our or way we to that

articulated for business can and by gives And us I that the year do achieve our plan way that this we'll same. think we the confidence the we that last November,

I'm not think color. can sure give further any that, I we to or beyond want

the clarify, can Is the source if a, offsetting but Okay. I'm that you pickup half I hit run there wondering to But guide? something just second did modest you magnitude then of happy from rate of mentioned reduces the in of an a beat clarify half that the and very vantage of uptick second that second to talking the was beat like on guess in the I'm million not whatever, into your off-line. the from there of just, 'XX half X terms was leasing. you XQ? million the beat Street kind of about just why that beat the Toast, in did estimates. Dean, in point, translate X.X pipeline in or quarter, I And feet

Vikram. NOI, to relates it as Not

I timing the deliveries models were, think view expectations. various a to world, our that differences. the large, track of just was timing by speak and on what can't our with sell-side the on difference. our But I from drove

So that doesn't upside to translate there.

there there was wasn't item that a were -- on. that And only line variance the

If line look consensus, some were there across items. other you

I an think example. the G&A is

lower driver line across key was that G&A the than the coverage. We consensus are on NOI But item.

Okay. That's just helpful. And then one. last

a with of of I'm out, out estate the part have think they in wondering exposure I them? them as their call. cost of reduction overall on plan next tenants, any terms real call And your you Specifically, top of pronouncing year wrong, reduction update or one I'm one or Illumina, two your called their maybe into specific so, projects

Yes.

lot So a I'll attack with strategies activist Remember, and icon some is to do GRAIL. of make They leader weirdly a comment. regarding from pioneer the have kind a about management EU the FTC GRAIL, in Illumina their took enough did and still an a issue category. Illumina or acquiring

can that campus. maybe of but as a on. that San no they've but going strong was GRAIL run of is a kind their you here's to their have a a and spun of made very Ryan, it yet going still of involved thing an give been ask started Illumina is Dan They I'll and ever. weird thing Illumina ideological who's Diego view of market in who the -- a lot they what's and left kind got Illumina, penetrate, out on sense, as broad Well, in

Yes.

more but They sublease office you pure on is what on not campus, our are area -- space. square They that feet need the the be campus, the So in leased adding in put of to advance currently about about look would a that the manufacturing they to XXX,XXX their or UTC discussions life science space, they desperate headlines to continue They market. continue saw kind in us they're for in two which with innovate. the to have subleasing. and -- building of laboratory

deem that we're what they in pieces Bay from seeing they think no really the real estate I and -- that's up then critical. as So longer them. had Area they've bits And of

a I in the on campus. later office to pullback space year and San them So, additional engage laboratory to we with on expect expect do Diego,

The were sites announced, they by from operated retrenching us. not Yes. two that they by were owned and

ahead. BTIG. Thank you. comes Tom today Catherwood from And go with our next Please question

allocate you've commentary XX% of mega there. then bringing sense a I Peter, assets of a In garner level maybe bit how me. noncore getting continuing you're the Do how all for about your your sense one appreciate to compared of more do premium is And your split and about the between talked have you're a to Just campuses rental you campuses market? to mega that market? broadly, and campuses these little past, mark-to-market focus on premiums. have rate the capital you of kind

Yes.

are as the that question project. the that to the premium about far XX% you're of for get one-off going rent cover not As a I in going pay goes, to study on the and pay there? did more desirability and Companies scalability amenities it's indicates effective asset. net our for your versus the Tom, else What

comes see what trying selling you're in you're of is had X% more Dean as at what X%, kind that mark-to-market? with your is when is a selling is, mark-to-market Or portfolio? breakdown it you're you that Just that XX% consistent XX% and to to holding it you're looking across mega the XX%, referenced campuses what have if

is. assets. breakdown the those are each what holding don't mark-to-market have are I we're by and every the and mega best the we in and and of campuses, Yes, the large, mark-to-market But opportunities asset selling onto

are what be those would one-offs not selling that types So garner would we the premiums. of

a Yes. And to historically typical number the XX% sales of XX%, that range, somewhere has in pretty a had on mark-to-market which good. been we've to I think we've is said date, asset high

Green comes question Please Burzinski with And ahead. next our Dylan today go Street. from

new effective curious, net rent operating are concessions portfolio. particularly the that development comments And side. just the sort But we're appreciate leases, for on hearing higher the of for today on

net might So effective to you in of guys pressure impacting moving forward? rents expect that terms you start yields feel development

correct. are Yes, you

are tenant landlord the On are They cash. conserving leases, tenants more looking side, to to development new provide the improvement.

So that is into the there. creeping ether

that for be, of will that some to all able make up the push instances, that. rents or We some of -- in to

because the are The built generically. they're spaces side good built the out operating is because on out news

We order out to have very We put concessions space. or and lease need renew few to TIs. in that

Yes. the you big of by top the $XXX pharma that landlord if the is of buildouts to credit And at and fact, the about the contribution working also out one say in -- the not on markets, the bigger I we're as a essential. Company, the the bigger foot. in one look is build would pharma contribution the

based, configuration would tenant that's or only that some credit and triangulation features or would -- to need put of unusual want So, tenant's oftentimes, on that something that unusual the bill a on be not situations, do. is in oftentimes would deal architecture extent, and the to we

So have to you that's keep something in else mind.

That's going sort I helpful. occupancy are at of just And XX% in still call targeting, more, you and occupancy of terms it, year-end. one that guys low to back realizing

guys sort Just as vacancy? grow I we as guys Or can to the of think term, continue structural view you do you about the this that approaching on you mean, trajectory we front? intermediate should over think this

No, I so. don't think

Company. we've I almost asset Dean grown, I'll but size time, can comment, over to have think where how double think the an the at ask historically of look base we about we then also

in shape So, think we've I form. way, or don't any any reached plateau

agree. Yes, Dean here, Dylan. it's I

You've buildings. the and asset tenants excellence level strong deliver our have seen with our of operating occupancy base manage in our relationships business way we our a in really really

occupancy than our to end points that above from bogey Our grow can for XXX -- or above or the of more bogey basis our 'XX. XXX XXX midpoint

is mean midpoint occupancy referenced. you I the we've the been in range. So at XX% XX.X%

pipeline bit of aware, mentioned amount the going Joel there's guys So little had visibility as all NOI is you also to now. room way And well you a gives up of 'XX to and and bring our tremendous set as that are plenty on and there. 'XX into grow a to

as Fenway whole conversion number a Greater mentioned say, first-time years opportunities was and lab a Boston area, couple that involved to existing the last of, of part those happened the give, over one great that space occupancy remember, think, and our of I Yes, gains. for acquisitions in vacancy

gentlemen, over concludes I'd question-and-answer and any Marcus to remarks. closing the for Joel ladies our like conference Thank you. session. And back this turn to

everybody, forward say call. our you look and to a thank wishing great want summer to quarter Just third you,

We call. today's sir. presentation. for you This you, concludes Thank today's attending conference thank all

and lines, disconnect You may now your day. have wonderful a