Boston Properties (BXP) 25 Apr 182018 Q1 Earnings call transcript

Good morning and welcome to Boston Properties First Quarter Earnings Call. This call is being recorded. All audience lines are currently in a listen-only mode.

Our speakers will address your questions at the end of the presentation during the question-and-answer session. At this time, I'd like to turn the conference over to Ms. Manager Properties. Relations Investor Joyner, for Boston Arista Please go ahead.

furnished Boston quarter and in G supplemental earnings morning well package and financial call. package, measure first to to welcome as as reconciled night, release requirements. Good the conference company In all GAAP Properties The Reg the distributed most last accordance Form comparable has with on X-K. were non-GAAP this supplemental measures press directly

our the these you of section Investor of not available in a in are If the Act of that section www.bostonproperties.com. this historical, webcast Investor Private are months website. to Reform the not be Relations copy our like audio made meaning documents at did will Securities time, website constitute for of Litigation XX Relations call, inform available would receive forward-looking statements An call which of certain may At the within you during this we XXXX. statements this conference

expectations I Linde, in Officer; Officer. Financial like in a Executive Company that, Mike with does statements. and in differ forward-looking to expectations those Tuesday's duty forward-looking Chief could assurance Although implied from Boston can be assumptions, the not reflected statements or welcome no and Thomas, Doug to actual detailed forward-looking from results press any would were cause based by that release Properties expressed the LaBelle, and said Factors statements attained. time-to-time on Having that will give undertake its materially filings it reasonable risks the to Owen believes Company's are SEC. The President; update Chief any

his of any the remarks. management will Vice would like questions. portion be to for our available formal turn Ray call, During Executive regional address Ritchey, team over Thomas to President I now Owen to call our the Senior question-and-answer

year we quarter energy, signed in you, highlights by $X.XX this and for the Gateway the foot we morning, a our the the plan. goals committed We last to above generated Mae Santa purchase square to guidance business week We which early million another X.X Arista. quarter water The growth XXXX emissions and park And the quarterly reduction everyone. for three leased and progress prior intensity continue of and productive significantly period. development Reston Reston our with for West our Thank XXXX. steady an midpoint FFO we above good feet, of square our forecast include, aggressive in $X.XX. lease is per had last raised XXX,XXX more very new We long-term Town make with Monica averages L.A. our square years Okay. for agreement goals foot share full achieved and Center in X.X midpoint at and Fannie of million establish

the to moving So environment.

healthy to and Importantly remains quarter in year positive The business X.X%. for projected be creation stable. economic with created with Job stable our outlook GDP this continue the at overall and is relatively to remains conditions approximately for employment jobs first X.X%. reach XXX,XXX steady growth US

markets asking absorption net expect arrive, In long-term from imminent. quarter, new increases activity first in where remains interest our The fiscal rising XXXX, based eventually flattening be anticipate rate equilibrium. in low market operate absorption. in activity rate rate the short while increasing been low and the X.X to timing Leasing f volume Overall points markets Though this year. with vacancy we Fed our in rents interest ended office office doesn't real forecast quarter the which by global hawkish yield which certainly and with basis million we The for square modest X.X% increased markets healthy very continue Treasury grew and private across modest around first further continue of Though general multiple year points relatively term to and is near relatively it U.S. billion, the rates quite were to while over will inflation and economic While hikes was rates U.S. markets rates with just broad transaction we term. significant remain Fed down this XX million. feel The sub has widening, feet, the the X.X%. in is this XX in basis are downturn deliveries an at five quarter remains 'XX. deliveries X.X the estate markets quarter net the at income tones U.S. industries. curve XX% the difficult outpacing fixed their $XX [ph] its deficit XX the

a XX% the to And transactions property company sold Lexington The in is around core this occupying Also York, a parent past for significant a York, Street Boston, foot numerous from both domestic XXX,XXX and agreement or markets. a quarter. square located square cap insurance of domestic a fully continues volumes in second cap is foot to is for which over Alphabet. square building square rates - Manhattan This and foot with leased up XXX,XXX XXX,XXX initial X.X% and there in Google's there a square for holding a cap square close Market it's Chelsea Google again, sold to and in and quarter. $XXXX midtown However decreasing a building New offerings the a is adviser. number markets a our street our less to rate healthy under is our full This remain fully XX we estate company. and interest and the and foot feet. rate. anticipate see initial asset In leased. In feet directly square later to more supply pipeline X.X% of $XXX State X.X across $XXXX tower was expected sell New domestic in real XXX leased year. stabilize the Avenue were sold building to healthy Yet are million just to foot the Commercial transactions in investors see from international pension

with of capital our activity, acquisitions, sale the over are With obviously Santa continue given will possible Mae opportunities potential for size own We new transaction a to a our with Monica of XXXX, square Park, XXX,XXX strategy neighborhood its that next next project, via which Santa critical Line On investment. remain pre-lease the presence to or and strategy, is the lease, or Reston very agreement site Monica Center and XXX million we've could present kicking feet less on XXX,XXX acre larger step redevelopment in also In with foot adjacent tenants, XX track the our the given purchase is we're to Center of sell be retail buildings our immediately station decommissioning we Development which feet office part portfolio themselves news we to six scale, XX% square will to creating signed open this of Street, quarter Washington approximately could that XX West Unlike The acre years, a million California. Monica - in this anchor of Reston at as corporate Boston over Monica either X.X opportunities Park space space. the we the decade, XXX million for anticipated Gateway. With comprised to the entered office XXX Airport. Reston urban a under L.A. buildings retail Silver foot site important This This for positive Santa Square to Airport. of its lease a over XX a our the our campus west assets are connect partner E off Dulles office core office this in two complex in an multi-phase pursuit. on L.A. in into ultimately will south X.X been market. X.X of to Corporate time Los projects million on will and pursue acquire tower active this site we line this both located square this of of kind double is value Reston that Town D.C. week is of at mass Moving in markets a quarter. the first Gateway acquisition track core several shareholders. the continues directly to with Gateway we we of strategy myriad our our Angeles Metro Discovery big Angeles X.X value to business ocean grow the Town in future Reston XX% the non-core offered leased. agreement this Santa in with and million suitability last changing capital the and We location feet Reston our the of square Reston contain of Centers in development and is foot committed to primary added competitive into and Los in Property. with square of Properties is the focus market. bring Fannie the dynamics the few to It is

feet hotel occupancy Fannie and Reston In square the over Reston of Center. XXXX. amenity future first ground of a for base approximately square include the of two of community Town and by will western residential Gateway Mae, anchored floor Fannie plans the the be XX,XXX Mae buildings in office the the addition complementing highly all mid-sized of quarter retail successful portion feet XXX,XXX to site environment an

the execution a Doug cover commencing lead lastly, Boston we also lease Additionally, an co-development. of agreement additional adjacent Moinian an Boston redesigned seven Properties in square Hudson of term tower stake and purchase supports X site completed building office with Cambridge Boulevard on entrance. control minority for discussions This the site nearly vertical at the anticipate that partnership development to And upon near owner. a current and LOI anchor Construction on we the what construction active is and would start. park and the in underway a train Boulevard to moment, have tenant located Hudson assume a on million the is could working X we operational and final foot foundation have a as to Group, a will under in signed are lease.

is this all office Avenue and million we expect the that, So of the $X.X yield Mae pipeline developments Fannie previously we XXXX. component in are discussed is portfolio commence and which approximately XX% aggregate way Pennsylvania pre-leased, This the X%. pipeline later commercial pipeline an investment. of by remaining stands projected comprising fund. redevelopments to The excludes have cash XXXX development of and Most our and billion with billion and XX residential at developments underway X.X $X.X well feet current to

are We us or fund development Salesforce new based near available the winning execution, development requirements. return new expect without raising this sites, equity Further, level significant made to Most lowering our term increasing of the team on our quality through by business given debt capacity our to notably and development - our Tower. deliveries. leverage not company our we the all

to new best their strategy, NAV. pre-lease shares, summarize acquisitions yields rate on making development to and notwithstanding than capital for higher launching capital our our is cap today stabilized discount repurchasing of and the are added material So property use acquisitions inferred which value both the in select

provided of financing, our capacity our by credit we from new source can cheapest and due deliveries. to the best materially utilize changing development is income the debt profile without debt which Our capital

self-select and embedded assets dividend result efficient raises is which in of have special The requirements. a to source core assets, gains funding sale larger continue less significant capital. tax marginal and given We will non-core

conservation energy, on outcomes. our pursuing targets Lastly, three reduction goals, have by we our years updated continue sustainability water and we execute and gas positive early. recently emissions exceeded and to as measures our economic greenhouse emphasize strategy environmental that intensity XXXX We

new longer well starting becoming to targets XXXX NOI new a bolder in and establish use, To and developments by we growth more plan and and term all to from the pipeline. our goals XXXX. materially energy as expect confident development our XX% through we've clear Our with assets increase existing conclude, and our our as given emissions for reduction deliveries is approximately water XX% added leasing to likely add up now to remain

So over to Doug.

so ever tenants you of Good interested are always have investors or the in have Owen. your a everybody. with business. doing? is, is my first conversation how I our market, any we the question else Properties estate been. And anybody real our Boston morning, Thanks, busy is who's is they ask now as right response or as that When How

square million operating strong our at portfolio. foot have leasing activity XX We

As Owen on said, we're additional an new development billion we've new to $X.X leases will billion which $X.X of new of additional entered pre-leased construction on an lead active into developments. XX% developments, office and

or by units. large customer, development XX users, and expanding. XXX their are We real upgrade start-up primary making space We've opened in are of are Our consolidate just residential some or decisions the in private and established estate out public to Reston exhibiting January. in cases confidence our leased second they

and with a big and FFO nail are stick in in and from occupancy we having leased Boston the Cambridge finished residential We rate area building already conversation And going open to with during of growth development second a an investor, will units. market gains XXXX. we've one, I experience XX not our hammer I'm gently deliveries if our XXXX out XXX is how June meaningful

markets short, talk, individual short feel and Now in term opportunity and obviously some our really things nuances we'll good great. medium which set in there but are feels

or estate been City have in and based migration amongst Instead and rather on there our City. decision talking the market since commentary January Street the the has conversation of investment. west has some to Park real XX the on have shifted to call changes construction JPMorgan's New changed Avenue, new of demise grow community. not midtown significant Now most but the the New York conditions Park Avenue movement York location, remain capital and and on about been

'XX seen were thirds of that product in report fact, or received infusions. Manhattan I've capital and have relocations significant more than one new all XXXX In in that broker's to suggests two that of buildings the recent

space, have market. fire late being as been happens, which the by advantages activity the is enjoys provided a Avenue mood led available has the sector and XXXX in economics. at change of reduction enabling JPMorgan and in the real that The it Midtown lease tightening a firming the of Madison primarily Manhattan Additionally, leasing the XXX And the required move XXXX in some Park results to by offers.

floor completed in have and full have of feet during XXX,XXX XXX,XXX feet availability. We tower in another almost law XX,XXX section floor square of the totaling on building, and the At the feet outstanding square Park, leases have million XXX of we three XXX,XXX square leased foot firm of have square leases of we of square proposals proposal a portfolio, base remaining the feet midtown expansion the foot over the quarter, including XXX,XXX for square we space. nearly our

the lease XXrd XXrd square have about XXX two that up which for General entirety We thirds a the building leases takes out the our of floors progress of feet East XX,XXX and XXth space. on Street of redevelopment at in remaining Motors and

early we XX space work the to completion deliver during Our and work New expected positioned an is Construction well significant amenity City progressing and is latter portfolio 'XX. gain of half of quarter the York and with revenue at Dock occupancy we in so their expect 'XX. space to this

light large Brooklyn the perspective. space the of more tenant time showing and are a have just activity we in tenants While has been

tenants much mission to in or XXX,XXX of if but are the blocks going active next for in the the close becomes XXX,XXX available commence as completion. amenities expected San new Park in expand. are of beyond until come and be is which will Rincón to year XX anticipate expansion this foot new space Center, relocates technology not scarcer product Blue not Francisco, foot of to Shield construction, product continue contiguous continue are once XXX XXX leasing in fundamentals Blue the form Tower from Brannan, building. first and new yet sublet square that XXXX Cross, coming at Dropbox Market to at all to Large The discussions square majority to the to don't Beale, and XXX Salesforce at in we scarcer improve availability that the a spaces of So moving Folsom. has Oakland. space tenants rehab of started, it's

we has at are in tech has we square towers inventory in Tower absorbed. leasing in the not in ECX large buildings have leasing final we renewals. feet be being upon the square blocks also of single tenant, we three to from net, Tower focused for $XX, Mountain or rent users growth to to XX,XXX and Silicon this in the a The activity. follow had Valley on leased We've trailed deals 'XX. increased storey full space in CBD the this going rent older rent and themes. XX,XXX My some rest is all XX,XXX relocation that The the that As Sunnyvale has for The filling then that rents the square delivered as note did remarks the been Tecla feet two non-contiguous to million quarter We Moffett as XX% up in towards inventory. increase at available Salesforce activity Towers foot a leases where XXXX, single XX% for continue foot robust average availabilities, the our increased demand close four View of will the classic at while story being business triple And significant to mega floors pickup D.C. where Salesforce have non-tech that product and market and latest of have into a our are geared city. for negotiation new service ECX growth deal starting existing is product. quarter totaling floor, financial the important about tenant Salesforce at It's early a there Tower. negotiation be square at is to move resulted and floor,

the the Bethesda and quarter our and Last X, it XXX Owen this together quarter as tenants it's Penn was at which launch Town XXXX Center of in Marriott Mae was and the to heart DC as [ph] is otherwise previous Gateway. and known and franchise. transaction it a TSA and Reston, quarter Fannie Leidos discussed site matching First, Reston Reston development, new

is a The contractors strength for of the sector market, as technology the and second Reston magnet private theme Center Town tenants.

demand. continue We see strong to end

are two growing recently And tenant feet have and and grew to third One tenant with expansion square signed this expansion tenants square the deals extension a We feet. time technology grew we square XX% XX%. other extension XXX,XXX feet. XXX,XXX and for XXX,XXX a negotiating

spending of omnibus more feet because development than with margin, in also increased CBD dollars and includes for the positive creation the how on additional is leasing. a GSA lead a unclear budget space. when economy positive. and or for early will sectors the It's non-dispense for tenants it's job of are the increased We the square will D.C. translate government. flow in renewal And into or of XXX,XXX into But contractor finally billions demand much it net to discussions market it of new

going Now to leased of there In highly and assets, has abundance to continues continue renovated an and market the market will be are improve. CBD and the competitive. be will partially been be recently Boston, to

as totaling our Boston availability good Office Regional activity the in City had CBD are New XXX,XXX quarter the over strongest When at started we of our floors portfolio. assets or Boston overall XX%. those and floors the Five we now of in company we York the transactions is our leased. entire on San this completed NBC, percentage XX lease is As in Francisco quarter in square feet six

involves region Our now of in expires negotiation the largest that a XXXX. piece in space

tenants begun. as all have the and our are that continues the of being of square and strong over city not and expanding XX,XXX new at we remaining seen, pace the it. now at committed the Hub for grow Boston never spaced for committed total Demand project - XX% X users to space RapidX Pier that it's XX% ever feet lease most as Causeway Hub on at the inventory existing as over to retail seen retail us space with which in at we're under signed leased. gets of of With we've the construction garden space the of have technology We of

Seaport the for work the In foot and Kendall we with tenant next availability, with close to the development XXX,XXX we have commencing inventory. project Street significant addition, an tower the Hub in expansions If in tenant limited this in Cambridge square In continue forward construction will to where is on very the Amazon and Back Center. we and of with office building anchor tower all for a the continue Wayfair replace on and foot Bay MIT have conversation discussions mid-XXXX office to Causeway. are street we with moves at XXX,XXX a for a Main across square their at reportedly

many Boston are of be suburban to Lexington attracted city continues tenants Even Waltham in to and Cambridge, as portfolio. our demand centers the significant there

low availability at are square Starting building the from square mid-XXs. We out XXs with XX,XXX ranges lease feet a $XX over in CityPoint of morning the I'm for existing an about to construction statistics comments negotiations square a that's the same are the property while foot would North conclude with are entire in for our Class remarks to tenant XX,XXX from A XX and to a at existing a coming my this XX,XXX some square leasing quarter. with going CityPoint. suburb, product we new feet at grow square Reservoir that tenant feet talking expanding XX,XXX foot to

giving the true note concession This last few last is of reflected as will there's costs. have couple all the these numbers. the years. with years which in of market the has in on a plus suites, we accelerating describing pre-built illustrates You as the well transaction years, been been across XX markets cost for for jump leases and trade-off of our occupancy not pre-built a which Obviously is for

transaction of deal $XX, basis, doesn't the up months If rented in these it were statistics. but by on you we XX%. cost mark-to-market show up the Overall, that save a a on six about space $XX reduces downtime of

done re-let City back year New I up where the and the there floor building and only comes was space of came renewal and $XX XXXX the this a were to roll square where hit a it. went foot, foot square a And improvement a January of statistics there from and square in was right transaction foot General the In variability low portfolio, $XXX of Boston portion variety that Microsoft seven full a last rent some quarter roll described from allowance. Motors real York primarily took but from tenant down we in there. the $XXX from Cambridge However quarter the our

So are all and always them. story With numbers there's I'm to a call stop going these and go the Mike. confusing behind let to that,

Great. our Good morning. as Thanks, we Doug. package. about Hope you all are as are financial supplemental excited revamped

looked, that you'll check it related want If much you it make to out, a reformatted point quarter. disclosure in and it of we've There items haven't to easier this financial to hopefully out couple read. our are changes I reorganized accounting

rules they net revenue in totaled each First reimbursement. items quarter, each for we've million reimbursement $X.X and zero for for statement we both netted included recognition due one net Previously the had the FASBs the each adopted will the zero quarter on management income we for offset and costs is the to simply expense expense our against income These change payroll other and that contracts. to the this to which payroll service quarter. the

$X.X that million highlights where internal of will totaled we I is this will XXXX that in lots disclosing expensing This related page, us start are And is quarter. I adopt to item and require new leasing leasing. reason out quarterly variability other suspect costs. be on costs now will The legal external these our for rules the the item. our costs financial pointed that to the there accounting in lease we capitalized

to in would I to minimum per FFO $X.XX our anticipate a share at additional So hit $X.XX XXXX. expense of

Okay.

accounting the into minutiae. for digression Sorry

very to some million of been our year later our of fund We've see to a a and Owen describes busy of the the million activity to a refinance can week Last Avenue closed we've from Madison residential Causeway this quarter. banks our expect markets. $XXX component construction As existing year. on close week four press in sales. we loan loan been that you investment our also mortgage York $XXX release, on expires we construction with in asset later development on New in Hub this active of debt City this XXX syndicate

reduce for million be yesterday Santa to a by extend development points credit expect spread loan And we of years. to drew fund we that unsecured the used We that down five closed term will Monica XX our last and line XXX% balances our year. on acquisition basis credit to portion costs. the business fund of Park our outstanding repay equity and Proceeds of $XXX

a about a Turning results, earnings or share our the to share per $X from above of funds we That was first operation million per reported of midpoint for quarter. our $X.XX penny the guidance.

by the than with Avenue at offset Our received a portfolio near the And took share consistent Cambridge OI projected than a due improvement with was vacated approximately for tenant City, higher backfill we The floor non-cash Lexington a back increase rent. per earlier immediately payment and higher leasing, expense. health leased signed $X another than came in by December in term expiration, the XXX,XXX our feet higher space at much in Microsoft a quarter was That's in space by the Doug outperformance $X projected and budget The tenant. projected $X.XX on New NOI commented of approximately primarily from portfolio square square about the from the the exceeded million what or share. statistics. in compensation. and of care to lease a stock York from we costs XXX majority new lease G&A partially of to The to million where of foot XX,XXX a our higher

timing investing our year, the stock to competition than is is As G&A quarter quarter first it every due payroll higher of and taxes. subsequent provisions the

will at leases will expiring vacant improve early in of we're as at in on XXXX, well rent. Park negotiation have on of rest which XXXX, and the the the XXXX at encouraged all level renewal of by a Embarcadero XXX to positive that as leasing our for that in Avenue As we described leases space mark-to-market many continue activity Doug be Center Boston, The activity opportunities in we our through vacancy, our occupancy. portfolio seeing activity look

take Some of the the be until pool the XXXX by of increasing deals to assumption growth from XX X.X%. our are we're NOI will end will majority the year, at of these not our midpoint impact X% occupancy the realized basis experiencing, to this tail at but same for in upon property Based the points what we XXXX.

low million free where quarter's related XXXX, for not which the commissions of to We've funds have up quarter million management midpoint same for by That's is to assumption third share of straight will by $X last services and portfolios. assumptions the higher million $XX our share in and for midpoint have midpoint. share fee assumptions guidance at per increasing to in million $XX $X.XX bump project to operations up and the periods per NOI a increasing increased income are impact and occur million inception increase our will rents line our XXXX to up our not cash million to by up also $X.XX for we party per a income to of per We $X.XX $X the our NOI at midpoint deals million or income million for ventures rent primarily well to cash NOI, per $X.XX guidance. of equates natural We adjusting for end $XX our $X.XX modified joint year. and the due $X $XX for leasing increase development This We're at increase offset of as The from first G&A share, projection year, as is share. G&A to the $X.XX these the our until non-cash $XXX an from our bringing growth $X.XX guidance that's service projections, the early mostly to expense. as expiration. higher million lease $XXX due expense to total Overall, range portfolio renewals increasing of from managed range new the property the typically rent per results. the is share

these assumptions, as in of ultimate deal. still the Monica we for of We included finalizing Park the are have Santa the impact not capital the structure acquisition business

a the lines XXXX penny share. be July questions. completes it by up our to remarks. we open a approximately could I'd formal Operator, it closing, appreciate will That X a if creative However projections for you our FFO assuming anticipate per

question comes Yulico Instructions] from first Nick UBS. with [Operator Your

Thanks.

for guess, there It talk leases we could yield I about was sounds you you the It Monica know bit parties Santa the the Can about trade rolling couple the you were you years, asset? site. more project? that interested off how like market on about below how some should underwrote yields first like on versus some deal. Park, know, Business So publications that next are a the know sounds lot written you a of have a in of there stabilized think little one over there be day the there

Good morning, Nick.

So we a pricing. things couple of say will about the

Mike So to all mentioned, one. accretive us the as deal is first of day

per foot. Let square me me talk about and let about talk the yield the

NOI commenced mention of the yield that mid rising also not that and initial that high have the in on is should five. to the that on XX% that year that to X% yield, over have is are somewhere the payment. threes, roughly from - rent leases by lift asset I signed So been is

are again lift math paying price square the Obviously that Then foot. not on we've disclosed. from second the Colorado lot in investment actual do we leasing can But yet. a standpoint investment risk on ago. similar less that years there's from we because and that actually whereas here the the rent of of is profile this income per So to Center there's signed vacancy, an the two had footage that leases Center been square the here, Colorado is have the you made

simple apples-and-apples interest. However, are assets the transactions that this basis, on other quoted roughly the with to be park a leasehold XX% encumbered by are of in

have foot - you is. the at value in have the purchase number per those you lease to in We But fair believe the ground square land up of would a to under market need fair what come buildings - years. the to with value right add XX we you a market wouldn't

think you one just guess discussion to lower think Thanks, that some how - foot take block, I an going? a for know, foot proposals in square where much but the Okay. Can NOI floors, get said XXX,XXX for block? with from you that to how and that guess close you - on didn't you of you you actual block. square leasing Is is terms about, That's tenant, that a know, timing for then talked helpful. of Park have all were done you financial back might I an option sounded getting yet and million it Owen. that you talk standpoint about it know tenant to where just XXX still have you you the space turning I like

Powers will you the let I John know, and in. answer chime question then

we for XXX,XXX have some proposal XXX,XXX they then a square are plus. number who space tenants who actually would so for be feet actually a floor back from larger get after and who tenant a we a have a other have trying So another tenant, feet, take - with we to out of square looking looking would are than tenants floor or us

smart the know you to available feet, I that the square tenants would feet, square am we signing. floor a not XX,XXX XXX,XXX are a be so and half. they are handicap timing so enough think So for have physical we floors looking lease of a around

on be have We XXXX. the of and if income leased rise know will over, you will want year I that are John, portion significant that we this of the there the of low space that. add end building confident to a anything by before don't to hopefully - this is

floors deals a floors and to one great people single block and but quickly. block we break at of interested the would point people do we at it's certainly the in happen to have probably have two it, going we're or and to to looking We because have going some hate that's very

everyone. Thanks, right. All

question line Feldman Bank Your Jamie with of of America. the comes from next

Business sticking Thank Monica morning. with you. guess good just I And Park. Santa

I in Colorado desire how your now competition think landlord? think the strategically and point like digest a a Monica Park. you that to about So while market get play or this at for in fit you how do versus feel how and as you now out do in do now things L.A. you've see mean Business you Santa Center, got can to grow more even you

estate let start Jamie, me a perspective okay. just real sort me So with of let

corporate Colorado it kind about So that be property buildings larger Monica hope when would Center companies we that that these to - Business be leased to the you Boston in to glove. our in see July that the Park fits know, investment so bought were want was same investment larger of could we that Properties leased of who kind meaning that of would XXXX, users of grow. were us to was or would property, that kind the what we attractive Santa was And

park just space tenants a that occupy the know, you square feet space. XXX,XXX is over one So office and XX of million of

So it's Center Colorado a as fits very we way of with organization our similar build a and to business. the kind want really it profile an to

of know, and owner just know two marketplace. it's that's significant XX% think pretty significant competitive assets office as XX which have that said, Santa way a supply years the to I enter in is we Owens percent, now so like in plus pretty Monica, of two these foundationally sort you that what So much about we're we you

I additional point about to this think little at talk it's a growth. premature

particular Let together put purchase and the and divest us this two assets. work these

Los remain what just look regions. our five committed said, to Doug be Jamie And. have Angeles one we of to major Yeah. add to

timetable going not think that make encumber make we to with we're where are with - to we think we're assets so, on and going we the make fixed going to money company sense grow the to assets do we ourselves for a with also However acquisitions.

to to going be disciplined. careful. We're going we're be So

Santa the be Center new been that been that and we're to Park. going be since fits but Business You been we think to for do a it more making at same perfectly it excited know, it care in investments, going forward certainly took us L.A. doing particular Doug reasons the We've described. We couldn't look And this we're disciplined. two We've Monica patient. with find discipline to to started years we going following Colorado we've investment,

were to potential Okay. And about I transit you redevelopment in then access. think a I an airport That's if timing also mentioned just, and partner bring helpful. maybe public and guess talk you

Just together? those the all timeframe when come of of

the So let estate talk real and side. about talk me Owen capital let the about

around XXXX. adapted be to Monica parcel some a Monica Park Airport Santa parcel the is The going slated at point be sometime to That the that re Santa [indiscernible] So means this and use. XX that Santa to other is Airport. is acre Business Monica enormous decommissioned

changing now own how point because think and the the acre at of to are in that reconstructed purchase there by the we commercial conversation uses, be the We as not could hoping reconfigured. will and community, be feed conversation we have the it be that. expect and that a of it the Santa will way and the we help how premature and it's we about council site Airport we process because anybody public, that Monica, redevelopment public ground one part hope will again about uses too will But had point city and Santa thinking Monica XX with that how but some do not about

decade going over know know, you so. the forward You or next

the the not long-term excited here, potential about we're something do So to potential. term really short

tour to know, cetera. buildings that are changes. XXXX you conversations recognize are you the getting any all with the guys with the and in growing they if very it leased, tour know XXXX, back your officials few tenants are been community of and do with a the with see the has in going tenants lot Because in public you're tenants. do buildings, that you city the You there of from away when will not Monica a The that have neighbors way Santa et airport the there - long we

the of and but to heart be it's to got highway prospect, this Santa a it's Fed acre [ph]. a the all Monica a long-term is in access going So parcel XX great

and that considering. it's But And capital, something we afterward. are by providers we're could Jamie you close are that there in in clearly be or we equity this considering interested partner know, we a on that capital that could and are property do the bringing time

you. Thank Okay.

Korchman Manny Citi. of line the with from comes question next Your

mentioned it's end Doug sort of do accounting about start working also Mike of XXXX the this point guess of Michael at that's at on coming you lot efforts here a growth. both that 'XX. Bowman the you've of looking going Manny. assuming XXX, A to to you you Mike all consensus, what $X.XX knock about leasing right by and Hey redevelopment. and $X.XX. with talked now lease lease I lot development XX% at been about up FFO towards

to the by gap end XXX to about going between You mean, call relative currently? annualizing, be trajectory the is to know, of street you're how a where it close thinking I the you is mindset XXXX there should year. that

Michael, this is Doug. So

numbers lot of for in - We the spent are time XXXX. know, provide of we the you street what a we have about quarter obviously thinking our not We're the year, third guidance.

And numbers that's expectations been that the where and have of income how our the dollars impacts you providing outflow when income that year. will our in actually come 'XX our into the the and will the beyond balance and of We and stuff into know, development statement service. those be question sheet the far are, variability

December actual announced have results Akamai to half which get deal in Xst going XX. delivered for of October we year it what on up going be that's quarter. Is know, the you and on the to a a delivered terms building will an in the ago, it to be or a is as big example So XXXX. going delivered fourth we It's you know, get

the provided So in-service accuracy number, one we why the hard until coming the until we to closer probably understanding which we with developments get obviously online, great it's a and is a third date - we for won't - haven't us little to XXXX are provide quarter. bit yet for actual are that

will visibility going as at we to lot leasing know, and obviously timing of is the the states come. sign well. a The better I to you is think rent know, growth as that of as XXX you start. a big going these makes timing - leases get a difference lot to that And that's exact when of of And we

beginning - to when of as I the whether at at much we're point, more is know, So footage but clear on. us not 'XX, square the said goes as that end time and where, it'll become this you visible will be how 'XX, of

about I'm right. function, a just step thinking

it's based a a call for and the fifty a quarter back your quarterly. on it buck buck If you're two guidance between running, called as the the second first of half XX XX year, buck

then step As couple be up holds you that the when first guess should And next of think XX about next you the is the - a - to bigger happen is I comes it's hockey stick Because again? like I it's street or street the end for think do towards of what hate I material year and that for thinking quarters. of get the guidance out below buck another year. the year sort of

thing. the to year pipeline that back a With of higher increase year. of mean, is going is half pointed from biggest increase the coming first And is into biggest half mean I the for the you FFO the development coming the service. the year, our back I the be of this half out good that of than towards

that leases quarter are going on in taking signed obviously, got additional they building other that we and that additional we've So taking every Salesforce tenants Tower floors to are we be have get spaces. on

know, you back then are we've buildings of provided builds So that some in up up. we to then and half our 'XX. kind residential as And of also through of you, have information the that disclosures that 'XX the two leasing in

as you know, helps So that well.

quarter as growth. quarter, prior same fourth XXXX on guidance year on the you're you we're the second XXX. continue calls see we'll another back as to we know, going through of year But comparative as prepared as Doug and But some portfolio because comparison store has of insight said, - see you're our negative going to see And really that that. we a we store give improve the the know, basis. to to not provide to the half same third today. go year In You probably you'll the get into in see

terms gap. quoted And give sort lease ground cash the purchase to the ground on And yield you then you around we that is know, think a land? in an of and at Monica, mid lease what as that of on Right. is to you've the Santa initial that the details start on that expense the is of least about some yield in going can or the next high threes expected

a things. couple just So of

to you, not okay. all the but give You're going like that's answers I

the Owen quoted yield So yield. that past were

had So impacts not all. they had GAAP at

going know, five of high to embedded threes the in years. the it. cost in over included rent said he ground the to Those you sixes so the yield And mid

has capital the this we you structure And associated been signed But in there quickly mean, better [ph] and our with accounting so will need going and package. to that thing this figure components the we're provide the our literally when treat I with are disclosure we all how issues Diego contract yet. stuff, know, we out various on

thinking pretty land, Right. I'm I per be know, costs that square the elevated range? is that of well the land yield just foot you basis to yield imagine perspective, from a perspective to going X% got value in are and cash the below so market that

No, not. it's actually

currently think the it away in expensive ground yield about when way thinking ground you're it's will the pretty that structured, lease, that ground we be know, is goes way. leased enhanced and The the lease actually. You wrong

Even the to though for you have pay land? value market

Yes.

you. Okay. Thank

of the from comes question Malhotra. next Your line Vikram

the taking for question. Thanks

obviously of 'XX, of 'XX the visibility timing. buildings you up potentially bit Park the if and Just sort you XXX and of XXX about maybe variability Can sort the in there's look sort Embarcadero? Gateway bridge, at little components that some maybe a you going sort of more talk bridge of detail mentioned at lease into in NOI are key and

Yes.

Embarcadero our Center at visibility So strong. very is

know, we've very on, Gateway. - we're been negotiation we're on going of what that comfortable have in Center I set working there. very the lot measured XXX going a say expectations our of on contribute. with We've lot proposals actually that and view we've terms to so leases in to you is of that are happen We what's Embarcadero a would in

and effectively square that assuming a feet you that The pace that one. - XX,XXX XX,XXX kept between leasing really somewhere on we've driver all the in that leases you everything is everything be of been at else committed signed by be end terms Avenue, fundamental is know, and at where XXX this else uncertainty of the perspective where big know, to actual “operational” everything our occupancy - gotten has on being point and you is where we'll and of in been increase of up portfolio. relative so well, year And margin has the we that's our need the know, we've XXXX Park

maybe sticking Got it. And New York. then to just

you've a are - - focused But just big you you - New gives very on quoted maybe some still discounts that related you a us buybacks, around you. rates holding a and in pretty market move to - that many York for comment Thank referenced rates know, also of up. types You And New know, the assets of with York names cap give within Maybe NAV. traded a cap we've capital any private seen for obviously and where we have certain market? robust thoughts sense just to as allocation about you well?

mention usually you in some know are but I time quarter on on Class to there the the and see and been the leased didn't fours the up buildings market consistent A lease hear are market that low in rate. a for becoming this a some other spend under real are on going deals the cap to in actually core markets fours. private we that - that estate, either - But mirror cap equity that that generally in to trying high or demonstrate try assume vary They below call buildings based the trading quarter for committed are that also number rents, we the generally this are fours. are I are didn't we and rates agreement there our foot every have are Well, of per that change or that is

to to going are know, three in rates next is quarter quoting be again four. expectation my the going to you or four be cap I'm you that deals So

the think market remained I strong. So

capital use capital point my question launching I know, on we are of new we're value allocation, as you today our we remarks, - doing is said acquisitions. think in pre-lease best and Your and development added that the

its is pipeline at development our $X.X pre-leased. know, You billion, XX%

generating a materially yield at also X% priced talked six it's about the I So Santa around a development mentioned derisk I five pipeline been investment yield. years. and Monica our in over as is currently

You know, on in think on the development you by think depending trading that, we give our we and know, our perspective. but fives, should see you stock data way low does you from how the about traded a cap discount do NAV you some how valuing and rate pipeline the stock we

So that's why I value our investing made better the of and we use added think is a capital development that the the acquisition. remark

you. Great. Thank

Your from next line Craig Capital question KeyBanc comes Mailman the with Markets. of

then something on would in competition the curious right you think to Hi. years why and the and expect time, for this the that type could the to to this capital pretty market. guys you'd SNBP IRR relative on as low. know, sources But out is base of look asset any you of touch cheaper XX commentary the what high the like [ph] be on Sadler what were these you constrained for to of cash potential IRR unlevered ramps some it there? look a going supply market, of yield here. Its in maybe seems in buyer, and one Jordan more the opposed land quite purchases based flow the like I'm I what wanted

attractive Yeah. was relative in across to West frankly other that and Look, the country. looked the IRR I at investments L.A. the think us to we've

it and bidders read was as is very you competitive speculation it was very about we we think were And won all the Doug reasons were We a IRR know of you who doubt look, with we and Boston you'd great for investment. described. have So for that a lot other comfortable a probably auction and the the we attractive fit Properties property. have. no on I know, There's there's that think this an

case. is that And that so I assume the

in for I'll sort of things has you pay is occurred the last Jordan, of - prepared give returns by on disciplined just overall market degradation been And very comment years in been just the the acquisition we people have which that where of is in couple general IRR that that, terms And to part and most that of in sales clearly a frustrated we the over people have better able and have And been not we just view low been of hope sixes. haven't purchasing significantly than our that is know, IRR to that. participate. have We been that assets participating market. going you this to the that are are be

Okay. then X expected heard there a return an there? your or haven't investment commentary And up imminent. then tenant start follow is I a Hudson, and it, a talk start regarding of about on anchor and your you Can lot

one is have So just be we're a to have we - an NOI a clear on we where not are commitment, Hudson negotiating X Boulevard. and This signed we commitment.

commence in We're commitment. until the as market that? So any we we are anchor more development and the an want would for Monica. to Jon, you we've in not we vertical prepared do provide clearly detail talking much to not tenants what color Santa as provide on secured about been

they Just XXth its like that bit, Yards of site you really and Hudson and avenues the know, a Boulevard. little - right on Street on three really X the like Hudson we so north the with train XX it's

a So you had now. lot of light

we like site. like the we - really So really

we requirements range our And our rigs of in the you other are regions. of are what in other of all all our - in know yield seeking

cost escalation, talk in mitigating you underway what just a development construction post-tariff are could guys cost incremental Okay. last we question, rising you and guys obviously are escalation, seeing about cost, of you're on And other in development, those committing obviously to bit construction quite how then costs? and labor have

seeing world, between of of the differed we our particular X% all projects and on Jordan, escalation X% trade. of pre-tariff it all So by the across But our were regions.

when we electrical. one reason when What is of those with, our might into and been that X%. might the generally have all and jobs upon to and quoting we between have build might an we it have building developments, escalation escalation which we third reason market rents, it live wall reason So it in are we another budgets do building concrete been for mechanical have curtain an been our are and depending X% we're a

any scope things - a that the that the little we on “leg We mostly more margin aluminum room” in in that you market not we steel, tariff escalations will So have sort don't the than we change increases currently that also then build occur conservative that what's in impact think today. and could a more order little in contingencies way could of for and of happen. know the - the like those bit take more bit things give us

Okay. Thanks.

question of with Evercore comes line the next ISI. Steve Your Sakwa from

pro I of started new through three of of the now, forma committed that of debt where you are that I the from a net do through the you but not about balance maybe and and sort of sheet EBITDA maybe debt to moving. numbers some balance kind of funding sort are the question the Good guess of leverage how us sort the kind leverage today, Thanks. balance is do and funding on of Could you to guess of debt see really see levels you haven't sort the walk projects years us and for talked you yet, kind sheet where and LaBelle morning. funding, of walk Michael just sort changing?

debt now and we're to about $X.X to right development So zero pipeline, portion billion debt net billion effectively at today. is EBITDA and $X X.X that's generating the so in its funded,

up as Monica that But billion that billion Business us. we'll or And the think a in pro Part. X.X know, another and Doug of Santa And on. see tick capitalized then of the described as got after in of that and in two we've little through the from development developments we new then So basis we look maybe plus kind this. will you I working going you we're know, plus we're may fund $X six to next feel of you all that forma and kind three bit, minus at $X.X or how other on or flow but quarters, another that, minus we come very down of going get it's comes a we be to cash deliver to confident quarter kind I

But lot over make balance enough net other because know, that. to is that's be to enable a do our can from opportunities, have kind And we further coming things. sure sheet a we investments, haven't how times Now look obviously like we markets. you there's to bring to kind know, that back debt investment keep X next actively EBITDA partner of it goal to to our and that three effectively things we not we going us dollar to years will the above the think at going to equity you managing without in as want about because new we're our change of

we can we EBITDA do could we Our view right times, we're have now comfortable which that acquisition on maintain with. everything can just think we including and raising very that we debt below without we that to our announced, start, books, net the equity our seven

know, just Steve You to add that. onto

$XXX we plus So having flexibility concerns. Business Monica to on acquisition, a balance is Santa the do to Park which million like any things have our the sheet without acquisition want

we're we actually developments will and can how doing in thinking one relatively be what fund market use we now about are because soon, third to so And party that do right capital actually our the about and better that. we are

these And capital cakes a demonstrate the in we can bringing assets. cash of to the so when bake assets, participate these know, those we and you partner flows strength in from

on probably selective are You can would and to the that that have we want is financial know, that do is on so largely consider flexibility the without to we something consider early basis we going maintain to doing things, other doing going… project

may higher not newer some maybe older - or efficient guess to tax developments point the it some table of it whole I sounds take buildings off is or that to efficient, mean, more of go created tax where basis? efficiency. sell to are Owens selling gains a back maybe be like cost and I as the those about, you to vintage, better with earlier maybe maybe And partial

starting started you that talk are about development getting initial the most a we then issue “stoked efficient we've that having bring know we're provide that getting don't worry to partner that trading to where you stages we or at a of have just that and it's either that the think we capture yet of. or I us to basis basically and like of we've know value into without for because haven't a in of financial created terms creation things land can in with equity” done promotes flexibility [ph] we terms value

Got it.

guess the just a about you was down little the was it pretty building. talking side. guess on I in GM Boston it clear roll I know York, then And Okay. the spent time I New

I Just Boston… - a was in there huge uplift the guess

Yes, up… it was

realize that I of older, you again? maybe they're describe And just kind but can

feet space another some brought to feet was tenant muffin. of and Yeah. down XX that took the quarter, enormous, was on That December We other expiration. because to it XXX,XXX of that back released XXX,XXX we terminated than from by space in know up we was them lease deals prior was square actually their with so more XX% Cambridge determination the lease and their mentioned last square of about and roll we did Microsoft you

think to I I said I quarter, think a last what I basis. remember on - XXX% increase don't close it that was

it. Got

it That's thanks. Okay, from me.

from question line next Sandler Your Alexander the Goldfarb of with O'Neill. comes

Hey, good morning there.

questions Just from two us.

and of you now asset two outright. there. it will you first time just is or since foray years Right the you own mentioned initial L.A. The Owen amount the thinking about own the

to partner know, split in. one, Your deal, been versus if all thoughts on the find to that effort put why such the and capital second bringing up in a you market difficult it's just just time a you just JV

You certainly also balance the have what it like lot described and asset. of in sounds there's sheet from guys a upside this you've

economics why just to bring keeping work you partner hard the deal? for second that also a you just fact the versus yourself so would and guys So that you in all know, get leaving

question. Look, Alex its Yeah. great

minute talking is dollars - it equity precious would about I a spreading what think goes back ago, LaBelle I was which Michael to our further.

equity with times increase selling in know, are we know, of some company. a partner would a described debt that you we driver. not about the and this particular on we leverage certainly EBITDA, deal to thinking want non-core and so and we're net Mike be seven careful our it as want the did You to assets be to bringing

comes know, JV our I that otherwise as L.A. would obviously be think it our be, from market the not impact that of percentage you it a in you bring if thus doesn't but would NOI partner as great position.

be market us operate to market we and it how position market own a we in is the Our enables really thing whole stronger that the if participant.

thinking there sort redeveloping once were private is then make know, the the developer it to JPMorgan around the of And it what is or if otherwise a - the MTA the going here the a that - different does tax you guys you inherent is what you'd site you doing, issues site that have than straight in complications timeline second would be how the or Jamie transferred next know, have timeline handled - some in recollection from your use up Okay. impact were for deal? question Does MTA use. door. if doing asset But to property it's public

know, prospects which process to will no think of We're site. New our And doing the middle a you sub-market plus in Yeah. activity question JPMorgan timing. York. No year But that improves for an still MTA I- that particular what that's helping we Alex, question take there's entitlement in no driving the there's JPMorgan really is our the accomplish. is

that? add there to else you'd to is like anything Jon,

Europe It's it. we're a better. that think the it process whole I dislike probably No, and going than in. But more plus through year

Okay. Thank Alan. you,

comes from BMO the question of Markets. Capital next Kim John line Your with

you. walk JV in On the Monica time and year, with going the one in? that's Santa any there just that is us Thank how X%, you're you cost versus the that line given this of just fees are Park, it through factoring accretive funded Business yield can

partial of because determined partial how that going versus assumed are We debt, a we would we're rents building of debt cost to below know, at - the kind are it the mortgage exactly know market. it. do But average kind line, in of don't a market weighted a you the - haven't be funded we you in

ground lease we do value on have thing a the that fair So do addition GAAP And yield this increases we lease by for basis that. the in to accounting, on bit. GAAP accounting lease capital so

we kind versus what the of lease expense little expensing a FFO ground instead as So is bit that and with have well is. actual expense modifies the rent, that ground interest of lease of expense

are XX to So higher the it's kind in making in the from things, impacting addition typical you - really are than rent that of gap [ph] those that know you yield. two know, bumps FAS the the yield there be cash

Okay.

So accretive FFO, to but necessarily? not

is a those the Not Owen space had portion good yet. of haven't that initially leases start described, as income cash, producing just currently and is but contractually not leased we

So as paying and space those the cash yield they of should occupancy quickly take increase start rent. their tenants fairly

your lease devolving minimal on purely in to then going risk X.X% just a to flow into I perspective, X.X with it on flow after cash And and to development your what seems up. be X% is pipeline, that you're match a acquisition an What there's years know perspective? X from from would purely like response for given opinions yield doing been going five the with X% cash to just But different it Okay. the of difficult this.

of XX% is first leased. property Well, all this

we our but have pre-leasing, XX%. developments, do Now substantial its

also building. a have to We build

have timing there's Business and the income bought that we whereas delta. a that's the have closed, the So soon occur delay, so as to there's construction, Park, you Santa as know, prophecies Monica we we

tenants? just Dock XX, effectively And you impacted enterprise how question being is one much final with WeWork, of for by on leasing your competing

believe that “competing” tenants. WeWork we're I for with don't

that see to fact, having interestingly as if will - want think it I are In some tended who there tenants call they're actually better they to be outpost experiment extent suited they Brooklyn of an being works that they we WeWork and initially to. the to –the in

advantage take would we of know, in You the Park. growing

add I it Jon, at on a is look if where don't very that. So to relationship. have think cooperative we anything you I

think that's I No, it.

to certainly all will cooperative. we We're now, terrific a it's looks be going build occupancy be is the show of and amenities, special. better the I the that in that now. the very think building It out with I it will excited probably And done. and people lot end but it now its that than, undertaking does amenities think before WeWork the year its think

you. Thank

Your Green next Jed with comes the from Regan of line Advisors. question Street

to Hudson, be large up just morning, Quick Good pre-lease kick Hey. follow guys. the to of need X would order on construction? off magnitude how there

significant. Jed, specific would we down don't have want percentage. be a to ourselves to to It pin

Got average a and any Park. project it. ups the term Monica you of much Santa in lease snapshots - bit you can in little about follow on give what's there Business outs up that And [ph] talk just big how the remaining and Can campus? move coming expected couple then occupancy

square I the feet lease and can't date off take whole my Snap in for is give the they you have option. the campus. expiration about head top of average XXX,XXX must

the with I there. close a larger don't home is walk at to out know point, There you anyone are to everyone of a that going meaning the great been couple this project XXXX. like XXXX, term there - feet. certainly think we near We tenants that for think XXX,XXX expirations, And goes assume of are square project. to is who's that other

our people and aggressive going stay. tenants rent on that be and to the to You for know, try to and park. going be maintain to tenants and have occupancy grow to trying the levels determine are finding not we appropriate maintain hopefully about to whether we're conducive or going we'll ways we're to are charge But

capital can't any those the position near significant accurate heard and for And buyout that that in statements? feet great. incremental are at Okay, think that get the I plan project not really there's term before then, I spend you both XXXX

the really, make the really competitive, the and work are sure on I think systems conditions. in the meaning buildings up class focus appropriate well, the structures to of that to of term capital we all and - are is short buildings our first

find sure are you short to to is is an are you of contractually with will So days I motivations will and not land great. allowed move will XX the owner with over we be aesthetic the And a the from know, - of something fee work forward my purchased in we out do conversation we're about what know know and am fee that We perspective that recapitalization' don't there the the their what their purchase years. be is would can are the out that have which the desires building we a 'revitalization, going if term. point before expectation when and long-term. we the before that being,

And you're specifically project? you're potential not for not - that any up-zoning underwriting

locally usages, be that the you are get we was the this We be we are may find ability time what constituencies will and the had. out of in much tenants, community, Santa assuming the buildings over - time about our and front spent a be involved fortunate some zero perspective the a underwrote we that that's getting the of current that. more we Monica, that have way going have you what would - discussion you literally with to enough configured, to We've cetera, is we interest know, see no change et to city that long, in the but long and thinking

Thank Great. you, guys.

the Your John Guinee Stifel. next with question line of from comes

comes question next the Heck of Your Blaine line from with Wells Fargo.

Hey, guys. Good morning.

of the can in-place Monica, the color one on any Just give magnitude Santa another the on you on us at that mark-to-market rents asset?

we're I'd think ready numbers. do that. ask guess, to have don't we initial triangulate. I I to some you quite Again,

what you told return are going you said the going was Mike what we accretive. the it returns to cash initial in were. So like We five be positively be to told look years.

so. less not of signed that XX% paying is are more that uplift yet, the And or been rents from have coming

do Okay. We can enough. that… Fair

That least. is five years the at

should then And and or growth, on the there NOI that we cash for on been a same I line something you store the several pretty Mike point at past NOI store significant one increased has whether adjustment rent as straight going same think Can negative for quarters, maybe the between Okay. GAAP off and expect comment to even free is just quarter. see more unwind there? on else we some this burn

spread there's are between on, think is unusual I is don't GAAP store you saying same the the anything going - and cash increasing?

a it it cash looked we negative this been to the as Yeah, number bigger has at quarter. seems that it

like there seems there's I be it sure… some am So there run in that, might - pre not

our value that two. rent rent free is the non-cash have rents we I $XX it kind that over mean, and million I rest of fair or off of would year say the about is basically will next of burn

in going to large that, the see know cash there to that there in store you that up burn leases we're Are driving same I boost to a that guess, are that's going number off of number? rent there might a and have free bit any been

in Well, we was XXX Fed periods. yeah, not think that Clarendon, feet many that I stuff is of XXX,XXX we're leases leasing over there's doing yet, I are that at space. rent The of at [ph] mean, square the XXX paying those cash free did

the now last leasing that our with free the leases That done You we natural that know, into numbers just so in Cambridge then Cambridge in that you I one 'XX know, some associated that XX did in that. and and that's rent into and described and is its wait we've have to had, of blending in until the those 'XX in getting expiration to lease Doug of described some this Francisco we year months. things also kind and like we And XXXX the a and rent extends is in free San cash. in period for in turn

those So are examples. some

Got it.

helpful. Thanks. That's Okay.

closing the remarks. answer I the like would question back the to now this call concludes portion. for over turn to And and speakers

remarks. time our attention. your Thank all all you and concludes That for

Boston Thank and again day. today's good concludes attending call. Properties conference This for have a you