Boston Properties (BXP) 1 Aug 182018 Q2 Earnings call transcript

Good morning and welcome to Boston Properties Second 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. of for President Properties. Vice Buda, Investor Boston Relations Sara Please go ahead.

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

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

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

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

and Head last joined comes and of experience Sara, with President as Boston Investor of Properties. a week welcome Vice to Thank field. Sara wealth Relations and us you, the in

Good that you delighted everyone. morning, are We are here.

midpoint a tower large-scale closed Group in-service office We we Monica Business on project in July, with the of important Delaware of new the joint several which generated leasing square-foot key secured X to XXXX just growth feet, $X.XX is future by square our steps Hudson in and review. the marked X.X develop as quarter the increased per in this is long-term to we square And and our our we Yards. $X.XX quarter, share tenant on last towards office and for another a the continue million assets, X guidance in strong period above our complete Santa partner, North. a Hudson as property Second which Boston above leasing we achieved street the quarterly we wins development us well year, major last achieving CPPIB FFO above phase our Boulevard, full-year goals. with of the venture to closed with XXX,XXX and for in this We capital Verizon In Doug Park a West $X.XX. investments, LA the Moinian will and wins anchor consensus feet FFO average This leased half as Hub past of of million brings which acquisition almost first the of period. Causeway leased guidance,

acquisitions July. in quarter QX overall, continuing Boston development So, a and was leasing, for with in Properties strong activity

and with tailwinds. for a is market We continue to positive experience which real including focus several gateway high-quality estate, commercial office in cities environment assets economic our

X.X% second this us. all to markets, and actually at is economic the treasury to flattening, of in at last significant rates rate the is unsettling to XXXX, though prospects timing traded quarter. Fed rate Though and interest second in in growth We and that earnings new points since factor the global Though to quarter imminent Obviously, seem forces. not impacted increased trading of with capital the trade jobs the it is of downturn June level continue in conditions overall major stable tariffs, was the business projected yield First, X.X% quite Job last on inflation does unemployment long-term is of market the for creation if by U.S. to political XXXX. signaling improved X%. economic additional don’t XX-year have favorable be anything risk our be and GDP turmoil morning remains XXX,XXX trade flat our XX call. created increases and given steady see is roughly On quarter wars rate time. basis curve increases low as a and as

equilibrium, our growth backdrop of most customers economic market, is this remain and the leasing positive. turned Given estate general the and across has and demand that geographic industries. space healthy the in supply of volume in transaction with numerous activity office real In fact private markets

and a X,XXX,XXX cap quarter This The square-foot result first Specifically, the is rate Investor in the and cap cap Starting located $X,XXX a little prices just first quarter cost. Xs represented remain our per sell cap and feet X% appetite [ph] is and for the XXX,XXX XXXX this of Pennsylvania volume San from is is building low XX% leased. agreement transaction above Francisco advisor. ‘XX. feet Avenue a cap domestic volume San over X is from numerous asset square our feet $X,XXX $X,XXX domestic over In SoMa quarter again, were future X% to under XXXX. a to to just for and interest Seaport a a Brannan square-foot is XXX cap X X% U.S. square is XX% asset transactions Dropbox. street the advisor. XX% York, the to a pension a large district a in This price New In healthy leased. quarter XX% transaction in significant foot. as replacement the XXX,XXX the under across selling quarter DC, Boston, and core Francisco XX% X,XXX finally, leased markets. and at XXX% once at a Pennsylvania Washington Pier and rates And fully second of to of for leased. under comprises a feet rate a XX the X% Office sell and in pension Property in Yards is in for REIT. rate Avenue foot in increased square-foot There $X,XXX the second and Xs quarter building and from is rates record rate with a development and of a sold a fund in agreement a the to Hudson new, domestic over pension to building increased XXXX

Properties nearly disposition Boston will closed this Lexington, dispositions to sale we’ve Hartwell capital With million. and year-to-date. $XXX target having sale, million in year. $XXX this likely Avenue non-core our $XX We in XX Moving an we’re Mass activities, recently million active exceed selling completed for year assets the of

Avenue be Hampshire DC. square-foot We XXXX in This are vacated New will Circle XXXX. by marketing XXX,XXX fully for near Gump in located property of sale Dupont Akin Washington

our conditions and justified with We strategy. by lighter renovation developments of not this the is DC asset are executing market good many new fit ongoing a in

We are will free-up Springfield, options the build-to-suit Virginia, continue generate completed, and draws for development future our development recapitalization square-foot of TSA in considering fees our refund to for avoid explore throughout to on our for our we portfolio. select return a to growing XXX,XXX date, assets And to invested we well order capital. in non-core If development the capital sales capital as additional as pipeline. invested

project venture Plan lease Last the Park returns, acquisitions to the of and $XXX property we encumbered Investment years an market on into purchase stabilized LA. The completed Boston venture Santa to initial Snap, Monica is million. a with by X% closing coupon cash property the is unleveraged joint acquisitions. our We week, On Canada above the did of from above the the in to announced option is and Board in XX% coupon own who over ground the will Moving in market nearly approximately equity million Properties XX roll-ups market years. and rent resultant $XXX be ground our take the investment X% cash space a is expected is asset. Most tenant. a and yield of financing. acquisition must in enter of with due yield Business Pension five of major

purchase returns. to accretive be the So, future the land will of annual

future which joint We with to both this are form and excited lead expect of partnership will first investments. to CPPIB, us hope and honored

doubled remain which active, with Los We’re strategy be increased Development our Santa our and in with deal critical to and future the very pleased both market, mass our projects presence Monica. creating for Angeles this in value. sites pre-lease We projects. for new continues also primary pursuing very

price completed venture. an FAR most announced New in site basis. factor have capital we attractive the operational Boulevard, control initial components. $XX stake We in at FAR approximates to underway. and land believe to and were entered base building and our X construction the a outlay. the of prices Boston able Hudson the closing remaining less to capital the is tower $XX rentable a below We has you last tenant supports the Specifically, the in large on the the a partnership the to in a million of the an for purchase the for funding already minimize foundation foundations option XX% adjacent purchase, X will and million and The future a at square-foot into grade building square-foot needed purchase and Properties sites commitment by attractive, is X entrance. week, Moinian if million today Group FAR price one the site square-foot York with $XXX the and City. for per Boston the nearly is significantly located additional and office assume on Properties capital invested co-development, We train acquire When fund

to $XX financing land of an replace We existing million also loan. provided

now commencing securing precondition which construction. vertical anchor is a a Our focus of significant tenant, is

theme and the In is the described major the capital, Madison tower. Avenue, project public Hub the square a the XXX on of Avenue, TD Station closing With executed currently we to agreement approximately XXX last Madison Causeway, growth. phase. X previously development for capital and Causeway, XXX,XXX we Continuing in at we feet adjacent of for joint conserving York equity the pre-development have bringing we working XXX,XXX Hudson that at are to Communications square-foot with future located the partner our XX-storey New development toward our venture Boulevard sites office in announced anchor now -- for our also with the square-foot multi-phase in Garden. This X.X of a Verizon yesterday Boston, a XXX phase a lease million North two

of and phases top the mixed-use on underway and two hotel tower first a include residential podium. are The of project the

We we are North. and are Causeway XX-XX site building. the joint the the in balance tenant lease as part of A the is of venture XXX with to preleased Delaware XX% developing discussions

Center quarter, XXX-unit Our for initial of Boston, the we in future and with at cash be residential discussions hurdles, property lease-up. consistent Signature And delivered yields our service in is are existing an is Also approaching projected million Kendall capital tenant invested redevelop estimated phases office Reston, lastly, development to which their in $XXX an to project we’re in early expansion. our X%. with into this

we to approximate Our X%. square commercial previous the and These have current have feet is new XXXX underway X,XXX component not our Avenue and in preleased this commenced X cash at but and projects and aggregate the portfolio anchor These commence described we the projects have Reston will investment exclude billion we where pipeline lease XX% in $X.X office comprising $X.X all commitments, Pennsylvania Causeway. of including have development XX projected for is billion residential yields Gateway fund. million share. developments and of of project this $X.X XXXX. pipeline in figures calls XXX well remaining and and redevelopment and The billion Most stands

remains Our unchanged. capital strategy

property capital their discount of use the best stabilized launching NAV. our and both and development and shares, new yields rate value-add acquisitions, higher acquisitions for repurchasing Our notwithstanding which cap making to today is preleased material inferred the select are than

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

special significant dividend The efficient embedded plan have select gains resulting larger tax assets marginal our which accessing new given will equity another growth quarter We continue and if and requirements. equity non-core to assets, the raises is of sale This needed, capital. discuss. source, Doug of and delivered capacity about accomplish Boston is I funding been a We the core less can public wins plentiful Properties, private described and developments, has capital. for access which the leasing, in to both investments given debt capital, significant in without and

Our to and viable. starting XX% approximately we’ve remain to from And outlook in now given added our to our continue be assets We add becoming is developments to and leasing deliveries plan up growth clear all our with confident plan NOI expect materially development and existing through and an increase XXXX strong XXXX pipeline. continuing more to XXXX XX%. growth the future likely, new and our in

it me over turn to Doug. Let

we’ve comments my you, as that Owen. morning, ever everybody. as by we saying been. Thank Good were quarter, busy I began Last

creating Causeway places a XXX anchor best busier and the development actually matches We’ve strategy active our that from customer quarters. the of which opportunities pursuit that found have investments of these we talent. of of Owen’s where fundamental great with will case are string And on been can pipeline. in focused for we be additional tenants a number We once Street, into comments retain another again, moved communicating attract an start, immediate today.

was and is for a was the The vacancy You that high-quality a and unemployment availability, and our our issue portfolio BA an believe picture is that in market. in ‘XX. we Last had Boston This BS was leasing tenants, our advantage. X% development across proposition. ‘XX investor underway, critical our rate track conclusion our October, our a The rejuvenated for portfolio of is board. with labor the value activities, people new can’t we college, about the is degree huge described conference and capital our lose the Finding exposure in and or from we ‘XX. our workforce Those engaged, exception a the East refreshment XXrd in employment with and of a the have St. hoe. a shape, good assets million the to $XX had XXX with year of two where XXX,XXX feet revenue. annualized lot really a Avenue Park of potential availability over to Remember, XXX contribute first we report progress. of XXX combined square row XXX,XXX of October a we most it I’m And had East us of we’ve explicitly pleased at We Avenue. made XXX the only stated own feet XX% XXrd. Park in last we operational important to that challenge was square that front had of lot availability in We major

If and top leased you and have picture XX plan from the XX,XXX floors square feet; square our stacking been to feet. XX the have bottom, XX XX,XXX floors moving XX been leased

XXX,XXX that signed lease is feet XXX,XXX feet. square square The XX, which for and feet. We recently feet. XX, and feet XX, X leased are floors negotiating math a If signed. we leases, And XXth totals lease has XXX,XXX floor X, my XX,XXX X, negotiating square XX,XXX square XX, an are correct, square been a LOI are for of

in to square are negotiation In two And we top XX,XXX available, just this competing floor to floor as entirety the what that overall of to XXX. about for extensions I when XXX,XXX lease of at work the lease square second we to Midtown Lex the early The the is included XXrd the tenants the We we feet the million consistent leases leases commitment by of Base brokers amenity XXX and XX space we sign week, our represent of their XXX XXX,XXX activity The with with in a control get of fourth are the strong expected describe expectations The just square Midtown to square In XXXX. commenced are in build seeing change signed can’t economics. is winding for portfolio the XXX included the feet. WeWork We of last led over mood offers. St., advantages been and Midtown XX-year tenants that a continues feet. continues expansions significantly it at of be continues feet buyer space. leases of and building be leases Dock $XX quarter We the has total, completed with XX,XXX confirm to the XXXX. with and control sector a the expect activity and the completion market. that we first market timing affirming leasing and previous revenue the square-foot of XXX,XXX tenant signed. those enjoy that leasing Overall this by Manhattan our result in out up have its the revenue. which of of an XXst East work office out activity construction the space at quarter, and and consistent offerings. construction Lex, down recognition activity, is can building when weighted has

We a dialogues, from is last few a have improvement quarter. slight which ongoing

light large and a more tenants has tenant just-in-time Brooklyn, For perspective. been have a activity of

feet square each leased space, we has don’t the we Rincon first about at which sublet beyond, that XXX new is are from There and are large year. blocks at leasing continue stemming square-foot So, to new at expect amenity or square-foot contiguous in spaces been committed. commenced end completed until are XXX,XXX-plus sublet that now construction Center new XXXX, and of just The that Park are The space product in this the Dropbox Francisco. entire closer the expansion believe Market no or lease sublet Fulton. Tower. rehab leased of XXX,XXX user to much will The XXX,XXX XXXX for of in San product a improve fundamentals next square-foot Salesforce tenants admission deliver has to disappearing. XXX,XXX are and the available XXX single to be XXXX a XXXX, moving Howard XXXX, also

the Embarcadero we we’ve where half public areas CBD As our into in of commenced major our Center move and and ‘XX activities of the amenities. back ‘XX refresh

This XX,XXX available from bank square quarter, of square in we consultants to made leasing including office of Salesforce completed feet DC, the space feet move XXX,XXX Tower.

in full has feeling We Full or XX,XXX ECX opportunity the There next as and should starting million demand isn’t have pricing. the financial XXX% product at pressure rents where The and of megadeal Sunnyvale triple is rates over four square-foot, very pickup the the being will which leases service been but top the are in of lack at from square-foot it the Silicon growth, have been new has in in The Mountain The block more is lower a construction feet inventory build are in availability, at floors XXXX. to at together of single-storey Moffett business this excess leasing year. rents lead existing reduction more favorable year million be Boston are inventory ECX floor being X they’ve including the also feet, Class X-foot which value. tech-led been building. but XX,XXX quarter seen are of the higher A increased for first been may been still Valley delivered as as also that construction feet robust traditional noncontiguous There significant buildings office the a in square square space the absorbed. a large of toward in have great a economics. There inventory. tech in since another of tenant from existing in on build-outs traditional Properties than Rent activity. the of net. towers which has block traditional for half geared growth that availability have average speculatively based than our in landlords, rents increases for View in older creative It’s new deals latest mid-XXs, XXX,XXX did X We a square majority of Tower growth. at

We multi-building the on opportunity build-to-suit are North a also responding station at to First.

continue this included our have is deal activity of leasing. did growing incumbent complete we feet where The sign another security feet. we analytics base. second in strong, in square quarter, on development in didn’t at recapturing feet Democracy leases we square we build-to-suit and signed tenant XXX,XXX square-foot and the XX,XXX Tower, an see XX,XXX feet tenants. Reston quarter, to XXX,XXX we cyber XX,XXX square had previously expansion a XX,XXX sublet internet a concentrated of DC Today, feet company renewed signed from In negotiation. XXX,XXX square-foot we demand feet We square square additional renewal While lease which square of a company a completed of including XXX,XXX

face the working XXX leases leased this firms. as around XXX-unit JV Owen in and with residential Square, corner, ended and to mentioned lease same at software X.X% the on with XX% quarter engineering an the expansion rents companies and about quarter. contractors In Avant the occupancy an services Met renewals as we right while with line defense our trying came units. We’re completed XX%-XX% WeWork in of occupancy year-over-year at at web year-to-year with our project well of a project increase second of Blackstone. the We’ve XXX and district, which on the Reston, other new which time the in the units, XXX extension improving

of in Hampshire, one we not shared be was to is price to the of its in Nonetheless, be and surrounding decision This This deals large renovate M&A Santa asset a concentrate, to XXXX expect our and changes been a office market CBD XXXX companies building the which The was active. A buyer corporate Park. at the Fox, actually there position. we Disney, a identified plan. potential the the investor Owen quarters, Properties of building New that Business the deal were conference Boston few described moderately you’ll limited Hulu exit activities. other is in activity. activity structure. the expansion at has at Our that remember, area major the market Monica New last have competitive weighing portfolio. at really Hampshire we and more going Comcast, operate the to change hence on in very a very be our continues It an have we obviously where asset. HBO, for continues was to considering the into gut remaining The block component ownership renovation been been the Class only project

underway million The to square six X.X total. over in the XX% XX%. transactions on are have of we X,XXX extension we our week, this be we At CBD I whopping to they single quarter. tracking floor our tightest individual We in square the one feet Boston Boylston. at We Bird, or at Side. The leave to regional portfolio. remaining second assets is Colorado Boston started West signed that completed last When square percentage tenants strongest vacant assets one leased to of We’re And completed will a there either the do the which at the the Boston. during lease, motorized our with XXX,XXX Center, us be quarter, at floor scooter feet of what in XX,XXX executed the office in one square leased portfolio our Colorado had continues week, the at our feet scooter we expect not Center block feet with in market building. a XXX left space which them large -- brings company or occupancy guess company, the the call

included note XX% You’ll XX% in our our statistics you’ll and leased. on now Causeway is at leasing is Causeway see the XXX Hub at next that percentage that quarter

in technology now Demand piece in is Boston a for expiring Our that’s this tenants largest XXXX. we of space the place right ever negotiation as strong from have seen. involves growing region in

Back absorption with XXX,XXX lease the and a Wayfair This major Bay quarter, square-foot had XXX,XXX with expansion DraftKings. square-foot by

activity Proto XX and centered the XXX market little the up XXX,XXX of opened building ago of at square-foot Hub. rate units that limited where by The availability, Amazon apartment the at the Seaport, expanding In out days over Cambridge. We’ve X is XXX,XXX than building taking we our a Bryan building building. addition, affordable is square-foot In XX Proto in less have units. XX Cambridge, in We is leased

be in feet availability many the as Boston is at we entire signed a with with by building tenant our that feet square square continues and North, are Lexington the a Reservoir to XX the center Cambridge, remaining We tenants for developer in XX,XXX and a negotiations square-foot of attracted CityPoint. cities Even local XX,XXX demand out the owned to lease XXX,XXX suburban. tenants are two for upgrading there Waltham, of significant XX,XXX B of at

the delivery construction the We’ve projects, projects. contracts all about including active recent Signature, Our at for fixed of cost those signed total $X.X billion. construction of

our projects. Street next the bid be With months. billion give of industry in Causeway in when are XXX is new these in development have another things design to that are will of fixed and we $X.X construction in rates XX the headwinds announcement, other the and we Changes budget we tariff agree mindful and future leases for

manage of contingencies these include, events. of both and cost to All estimates types escalation our budgets

impact our provided are these investing about we in our allowances same-store and manage the that XXX,XXX sized package all respectively across seen component that statistics Francisco square of San Boston in going While disclosure we to we certain strong comments XX% some risks remarks estimates an very of are covered. had they on I’m projects, the for quarter. the have portfolios rollup, components our supplemental my feet. our total haven’t and with and their conclude net on to about XX%

turn very a the rents Reston small DC X% we at earnings is Mike. is by there XXX,XXX stop basis, in of effect Tower that rent on mostly Lex. the square-foot about down are did down initial from prior expense it is in usurped rent City the lease. leases the market and renewal And Democracy the On escalations bumps pool, are operating annual where York Washington an embedded XXX XX-year over New I’ll to same. from the in the at

Owen of lot this morning, to and ground completed the talk going try to Thanks, I’m the Doug. cover. a describe the had quarter, everybody. we impact quarter. Good and transactions about With Doug all to financial

a and full-year earnings our raising are second our solid quarter we as we XXXX had exceeded guidance we So, estimates.

in high-end our came operations that’s the guidance $X.XX the range. at share quarter $X.XX $X.XX funds a second share midpoint per per above prior and from of above per share Our

our exceeded about share will quarter. portfolio savings related to this million, maintenance and that later and the be and year were Our it $X.XX expenses estimate lower the items operating to for was full-year. primarily repair by per $X not now of incurred represent majority will these expenses The

the our joint leasing earning exceeded increase Our pipeline expense Square the of our on Metropolitan from or capitalized interest $X.X And development higher was assumption commissions deals capital venture fee income lower and The major Center, our than our also lastly, majority a on about slightly for and Causeway. portfolio from our projects. the to quarter Hub by penny development Colorado at million. included closed budget that due interest is

see prior quarter Park in same-property We move-outs out down from supplemental our on as cash space. compared described, the the that X.X% of the results same-property was it guidance was can year quarter to as with our to we we expected space quarter are same-property is the a of way it’s was will basis half the back and the at NOI period. This of second report, the And this fully XXXX as you in As of due we on re-leasing well have our Avenue third second to project XXX cash in our our the line income discussed. prior XXXX. performance and in improve year primarily Doug

a comes with includes to expected the we our seeing rest in activity our vacant. to Embarcadero result in renewals flow than at revenues are impact prior We’ve our These early increase In the expansion square-foot, expires solid View several the we the straight York primarily is This rents at of being quarter leasing XX,XXX Santa with expect Mountain and nearly in renewals revenues later similar portfolio, described look to completing As had activity that XXXX, hit we for increases that which higher two-floor rent And top-line Colorado Town all XXXX. cash Center, start we incremental Center. Center achieved. our XXX,XXX at in success, our square we to where had in year of and Monica, which early our rents portfolio will rents straight naturally renewal will we’ve in increase expansion the through Lexington feet leasing signed for line space and start we’ve rent City, Doug Reston due XXX numbers pre-rent deals fourth renewal year. vacancy Avenue our and New this at In that to large be assumptions an in projection. increased periods line this expiration. and

same-property our not we’ve ranges. within NOI end as expect assumptions we the However, will XXXX growth still we changed for up current

of our from from operating into most full-year outperformance the anticipate penny So, despite quarter we revenues. Monica assumptions share be $XXX In deferring second previous Business half the per on closed our expenses our we second Park back NOI higher of of acquisition higher our than portfolio, the million year, a giving will non-same-property portfolio in Santa July.

due XX of the in to of $X.XX our for financing a of the just capital at purchase to described, as land subject The Owen million structure the right fixed CPP X%. the share, is ground lease lease we ground the closing over expense. of capital we rate years. mortgage partner portion by approximately interest have FFO as our completed to bringing in accounted our per a to a As which property including impact expense and $XXX A and mortgage net XXXX lease XX% contribution is a

costs $X the of Hartwell in us closed Massachusetts. about leased XXXX. lost income suburban sale of also XX Lexington, million Hartwell We Avenue, building office NOI from XX a on in located The fully selling

XXXX our million services range to in development $X $XX for of by We income management for $XX new million a have the million year. to increased assumptions and

second budget, we half expect exceeding additional start we also commissions of In have book we leasing the one-time, year. And this recognizing year. later Monica to quarter our from in Business to two Park second income the addition fee Santa

secured an As part in our a debt Hudson X and million low loan secured loan will generate we an interest $XX loan refinance investment our reduce cost that cost leverage positive carrying is to corporate our Boulevard, This the land site. to overall an in spread existing of originated opportunistic at the income by investment.

our interest the assumptions, modified account loan. the XXXX have net income to interest partially for for We

representing reduction expense $XXX XXXX, of range $XXX million net $X.X million, new to interest is midpoint. million Our at a the for

per XX $X.XX The is our of projected portfolio operation sale the of are offset net expense lower range $X.XX the loss higher NOI from share we which from includes guidance fee Hartwell our raising $X.XX to higher share income Santa of by share, guidance full-year per Avenue. So, the for from an funds per Monica the at Business of Park, $X.XX increase of $X.XX increase XXXX, per share per share $X.XX midpoint. for $X.XX a share in and to from interest per

any not dispositions. guidance Our assume acquisitions does or additional

in market successful, our if to in year. The DECLINED, New to contributes Hampshire close Washington FFO. XXXX $XX this currently property the later we are We sell annual approximately will million and likely we’re

if by FFO XXXX, per share. we end and at of less close to quarter $X.XX by than on about were $X.XX it reduce per the share the XXXX FFO the So, third sale will

high-value of front significant back from half the portfolio feet a we growth component delivering residential years have of where Looking will all out on two Park of Causeway vacancy. the XXX,XXX the Broadway still the two the lease-up in that and Hub commenced developments Doug sizable Salesforce anticipate the end XXX the of at and Both be next with Avenue currently the the of of lease-up with this Cambridge by of of growth square will leasing the incremental on XXXX, year. XXX that to being the over our podium delivered revenue of in XXXX, third we year. FFO in growth development deliver anticipate during the pipeline strong leasing activity Tower detail in a XXXX. our driver described from We quarter we project development the

We have space. intent letters of on this all nearly signed or leases of

the reminder, becomes of not the occupied. As majority a the until space XXXX income later in will commence as

developments drop related to in interest which higher projected our interest to in add made NOI XXXX. they expense continue will although incremental pipeline, by development funding. offset great be we achieving will partially we’ve new of offset And space property delivering in this all the goal of be The debt progress for growth primarily will in XXXX. the having leased capitalized our However, our will interest projects funded with to The off. capitalized the

with addition, of In Salesforce of XXXX, interest will revenues stop quarter will the the a associated XXX% even the project not end at though from XXXX. Tower capitalized stabilize third until

expense also Santa in Park, and investments will of X Salesforce acquisition our anticipated Hines the Business Tower. interest for Monica interest new have Hudson We X% Yards, including

Hines early late discussions close with to XXXX. expect in started and or have XXXX sometime We

been So, the quarter, not detailed to we XXXX next want have we That And of year. on remain all be past our cover while delivering will will giving that the for stress you could until materially XXXX. we guidance that we over describing if opportunities we’re that NOI, our formally. be to the wanted open we questions increase what confident in Operator, completes plan to in growth line great. starting up

first Your Korchman comes of question Instructions] the line Manny [Operator from with Citi.

you and how tenants vertical. which will tenants to Yards, the the or I be their Can everyone. required morning, those in Hudson desire two other those the projects New you wondered, big big and before potential tell one one other us projects, Good of maybe projects differ? discussions the on discussed go York, type of preleasing at and both Hey. both of Doug, with in you Madison on sort about

morning. good It’s Manny, Owen. Yes.

different of first projects So, time schedule. are the all, on a very

is to go. Hudson Boulevard X entitled ready the and So,

foundation to be development ready try and conversations will some to market. or for tenant is We’re in time. the XXX to actually new Madison speed kind of for entitlement any not working the improve process on our

And are that’s market So, X Hudson think the is, with the we first Boulevard. the point. second in I point

significant project. remarks, are very are -- as I mentioned seeking the tenant We a in my certainly we to launch

our this. engaged and we didn’t those engaged you phone. -- more who John, we John engaged are have to to Powers you. We in And is help on that’s us anything John? is there behalf been engaging working say We that? have hear like one would JLL are with dialogues. about

Sorry.

the site go out first. the the said, that MTA some you as future, So, city the the that to have taxes between sorted have and process. unit is And [ph] state we through regarding issues in get has the to

just very excited the in starting much JLL very that’s said, Hudson with X now. you future. we signed we’re And people as and up we meet with and So, are to Boulevard,

of there that to to Great. try switching West out -- in buying us Salesforce buy And you’re is Can Tower. Coast, or to Hines, why that then, it’s there building? the contractual deal sort small think us I the a the tell new you stake you

Sure.

that originally, us stabilization. set the Hines, that the they upon something up we doing. indicated their deal we when to like they’ve ability effectively sell So, to that’s interest And would gave consider

the sort conclusion entering with haven’t is, are we the what months. so, them couple will interest thoughtful hopefully dialogue property. come to a of promoted And And we value in position performance their next of successful into based some and they of about a upon of the

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

X Just Hudson. on curious

X You Hudson. your comes stabilized return you Hudson development and XX costs curious gave value XX at where at just of comp Hudson? in I’m the think relative the all-in to kind

value price XX know the thing a what other for is Okay. purchase what the Hudson was. stabilized I don’t about than

to comment on that. So, it’s hard believe… We

Forecast...

amount our a to generate we appropriate going to that time appropriate the the there. goes those and are will return costs believe -- for for we of determinant comps and be developments. it all will that executing for impact a of interest that cost we build other rents square-foot building going what numbers. numbers. those and have key will space cost been the sort construction, of Where with obviously to So, of that be $X,XXX carry. impact When we’ve somewhere near are in in lease position amount between the a of $X,XXX will where at obviously market risk we what on start will those TIs, our we to what are we be believe speculative we upon be able for have building based tenant, to we are the The take a escalation And the somewhere on to

to is is we’re and unknowns be dollars too because say So, return many not the timing going to per there going x from square a the foot percent to cost in be a are perspective. position x today

would foundation, And were be from what you get guys kind you significant the to are do here? time of far guys given you how think, delivery if along prelease a the on

So, the date, the in construction the go right XX months once that having has to now somewhere completed XX a physically have between foundation schedule we tenant on building. from is and the

And me. then, last one just for

real this tenant do of general Just of the change this thoughts branches kind out tenant tenant your them point? exposure as and a here view into or this at curious spectrum. kind in coworking other on you in versus of on at kind competitor look how areas exposure more at estate WeWork that as your particular all updated to to Does of

in is the Properties. WeWork X.X% an are of sheet important Boston we to put them In our of you’ll they’re buildings. And see customer income. about would of selectively talking the additional now supplemental, terms XXth size, about their they stores on that they’re in

pretty getting we’re As full. Doug described,

and the our -- for less we building So, certainly WeWork. are of for today. right we there situation, right those opportunities But, expanding relationship with the consider would

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

quarter. nice Owen,

that equity that you price difficult not issue just do it it issue any and you increases and too commons to there much makes conserving denominator use that JV mean because price would move You at mentioned -- public equity? Does that a too twice would needle the equity rather capital. is or

and the this value lower equity. yield do the debt John, best we debt much is an way the with think that us to attractive the of developments market because is debt rough capital and much price better for that’s don’t And at that financing all creating the is the breakeven it discount the juncture. now material delivering, the of a to we’re capacity we we way -- very public are cost right which is assets issuing trading, to in certainly than raise low-X, at stock to think do given where -- underlying much it a

another great to continue our we to if and think access want the don’t we the would get the real to company point with that of buildings. terms I other we for in would certainly Monica Santa demonstrated -- leverage just estate. make the we We have great more of in private capital, capital and that the pushed access Now, equity if we one market increase require is have partner I deal

about way list that’s Public terms it. capital. our want thinking So, is at of the we’re in of the where to we equity bottom raise go

get midpoint think floor from about talk Great, implied about okay. a second. for Can $X.XX, $X.XX a your LaBelle, good XQ how Is about Mike when your then, you you a XQ XXXX. I $X.XX for And And is $X.XX. is about to quarter by then midpoint for $X.XX? quarter

one-time is half back One that thing there think fees about in leasing is one kind year. the of some commissions, to development time are this

So, kind I’m year. not next and of development income commissions sure that of fee the level have same we’re leasing going be to able to

as our add may So, that move that’s With continue recur. every of development -- kind quarter. of kind to regard will incremental to not through, we our something

can’t months, and are then, residential as though in occupancy So, we’re occupy and quarter -- Salesforce move from we’ve obviously, every these months and space. we in, Tower been space, well. revenue cases, suddenly and the revenue. then we for they And their finish cash recognize have in until getting coming can going these tenants we two we’ve their to that months at properties Even it’s many of recognize gaining the

higher the are so third other The particular we in and the utilities operate, kind have between higher. fourth is months where of expenses the quarter summer difference

in you the will fourth that in quarter. so, fourth benefit from the see And quarter, some

may. I if question, last then, And

You something interesting, Owen. very said

but -- X building give the a square less rentable $XXX like net You rentable foot a at land FAR, square or quick difference tutorial FAR Hudson was said, foot for X Can on Hudson your on a you significantly between net and per that? basis.

the rentable part the be per price rentable the between ratio building is. configuration to square yet how and than the lower foot square the is to the related feet it’s usable is feet the latter determined. And John, that $XXX. But, square of -- square and of ultimate foot

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

questions. two Just

two like on the timing leasing back? laid second guys for that incorporate next well, have it Is fourth now discussed to that of Day And -- the and something you NAREIT Doug year. we guys I before that described revenue our previously fact the XXXX next sale the at sounded LaBelle, clarification at on Investor models earlier XXX Mike as into quarter have year? you New been want items. of consistent or the and this recognition all some at want and sounds really get to has the all what think is, XXXX, then, guys new year that like to you it with based I from of the in we just to sale in and is expect out First, hit look One, that it XXX, Hampshire pushed

plan has our mean, to space we’re we’ve with been that line timing I is deals and to revenue exactly what with when City we working will demolished. what in into the New feel what talked we come the The have regard regard and about leasing kind picture. is the the meeting with York of the deals expected of majority before. We on like those vast are

X So, XX be And get and these kind between of to months anywhere space. has tenants take that it will into to rebuilt.

And lease some a of these tenants expiry. obviously have

be not may tremendous So, a they rush. in

because to of may don’t until XXXX. lease out end lease may until of need a to quarter move fairly lease closer that the able be build expiration. XXXX, expiration that But in in they They signed third the is their their but really they to be So, space space. slowly, they

pipeline what of the we have in getting next -- And as then, with of And pipeline in right are to way. what years. the that those delivering are spaces our with be line rent by couple we We’ve kind in the provided terms that. is expectations with line on development development been guidance in So, expectations the also with delivering started. of going our and to and

potential on think buyers. we’ve and we’re don’t talking would before to I that. So, really it to It’s it. XXXX, selling there’s now about On any consider market we change the talked that

it’s that than it be likely quarter. we in last have would selling been that will would more I much successful asset So, say,

a is that So, change.

have happen. We going not because not that yet just that’s point our I in think included don’t to to wanted done. guidance than But out because likely until more we why do that’s I it do it’s it’s

second Ray, pent-up in just in of possibly with government whether FBI down a the question about then, just DC government some Ritchey. from And uptick speaking brokers something mentioned some demand the pending it’s for is leasing, to recently, sort leasing. Ray but for

-- So, could and tough you in development a you’re market been been just that just great it’s but it’s what given comment hearing a DC tough market? landlords on seeing market, a the

Alex. Thanks, Yes.

FBI much forward not. very think, they still the I in about or question is go whether

[ph] has it’s President faces, get he agendas. target one don’t And I it one his his number of given on Our made personal think everything like else to started.

be to when In the next got feet have done. something million terms expirations lines to in four you something’s XX GSA of lease leasing years, general, square along the of of three

priced at that very, makes still point However, new is challenging. it a development very

So, cycles. not to no to I in extensions I a on think government of the we certainly place short-term past a we’ve see tend with the lot the of moves, downturn renewals, keep side, but think seen lot in GSA major

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

Doug, great to XXX. hear the and about XXX all at activity

versus at So, away this $XX frame of LOI? handicap the And of those walking about contract under that or negotiation out incremental outside under that is point? are just possibility of maybe any much can you NOI how million leases

that square before signed XXX,XXX signed. Friday. that is XXX,XXX XXX,XXX another of there is is it there So, feet, expect I will get

get XXX,XXX or think feet going I square And of major will that they is negotiated. it. And done. being other actively that get So, about to the half our to are leases are expectation two just

there’s in around the back same-store X% pool. a in implies half lot the not guidance the of NOI noise same-store year, assuming Mike, of

that Is can elevated? through the how third should of or sequentially? just stay the up and to kind jump So, quarter of it we ramp you end talk about about in year the going think

in the space of I I the to until think, The move the to quarter, year. it’s portfolio up fourth be midway was quarter. last through out going mostly third all not guess XXX going but it’s

a So next be going there that’s quarter. of in for part still to

So, it then we I think better provided in supplemental. to range this that than better within be it fourth even quarter than be that quarter, the and will achieve will that the our was

specifics cycle? me. guys might you for then, supply given Can guys you a range just back West to you color maybe guys more give a the at the that Side? On picture demand hurdle last this coming have any X construction or there, around just one Hudson, on in And the one. additional how point on for the are new Manhattan little And viewing in preleasing

try Let satisfactory. it this. [ph] me to answer Owen’s you and didn’t find maybe tried

So, the I’ll is, on they long tact, going they try a and where different it’s all paying. they which in tenant the building are in building, how who are are doing much depend to lease is, what the how the

square-foot square-foot if if X million can’t showed no wouldn’t a I can’t tenant tell and So, I you up, deal; deal. the can’t tell a number. XXX,XXX do do -- we there we is show, we the you tenant that would

a on So, we it’s just previous I the Owen described -- we’re facts around leases. as have toned that not move speculative in in position the our risk for And tolerance number. we are to quarters we we But, cycle, think going has know a space. because big down be don’t in

judging I we’re no things so, there what think that think lease about we number. are we that the -- is building, to as And need the those but

is The that best interested one news in is not is, for would thing do tenant out the of are Doug what the the to to there find of in a many our look, terms there that that of is that And York. are such tenant I absolute said that thin good new scale construction in options only scale. market tenants describing. the it sites this think a And tenant. New Doug is marketplace, of we is add a There large

be coming market we quarters. the the accessing will as evolves in So, demand that

appreciate satisfactory this point. at Okay, the That’s very color.

Evercore Rob question ISI. Simone of from the next Your comes with line

the of on Just that kind fourth with obviously until through the whatever majority the you quarter could large same-store one-timers are any of of isn’t a And next print your I assume, question that the ‘XX? like you basis, But ‘XX most the piecing result or the know, yet. fact hitting follow-up that same-store guys reason run of year. the talking to guidance starting leases not being together going cash there guys Is from aren’t kind earlier. P&L revenues just question kind quarter to there of in of rate on any being a like in fourth about

that of And done renewals couple We’ve a got of number in Francisco, ‘XX, in XXX. over last some Cambridge, growth that to get stuff, expiring the that of refill the and were We’ve those when we’ll get addition going at Boston. out that we deals in of embedded increase kind ‘XX, to years in is San casting early cash were come in ‘XX. started

Got it.

like could tea -- leaves versus the So, to be it sounds QX, it it potentially read trying upon just could sounds -- it higher there. like based that,

in it’s we’ve our XXXX. But, in got we’ve be is going guidance about better do AFFO now will that than feel coming right embedded XXXX. that be like that and in it really give talked for XXXX can’t to what We some I is growth

prepared Mike. Okay. year. about in the follow-up. quick in Hudson around. significant it there just your swing back X there’s all expense for for just that’s to attributable moving being And $X.XX. originated else or of sounds of is that you was It Thanks, the you -- about lower I this. you remarks. net mentioned a wondering, a kind half something like pretty been year like of And guys interest pretty sounds it loan on there and Is the clear Interest have guys factor expense That next

little capitalized interest, little than had bit expected. a cash more It’s a and we more we

So, think margin. I on XX% service I Salesforce Tower it’s right kind in to something that. it now important for that But, the think, or of next year, people for understand is like is

is XX the you because date months with though the leased, tenants that people the building have kind to us off just match square cut be that’s require XXX,XXX Typically, model XX ‘XX. away income great, And of if XX/XX/XX. there’s building on interest months. you that there’s as I’m build building, XX% But XXX,XXX those still there’s not when understand. the kind square-foot square you gap mismatch on get it building interest But it going So, delivered. again, million space in to to a delivering, built. within foot it’s X.X the from project. coming there even of billion that away you’re can longer goes is a and a XX% And throughout foot it all But And income $X takes -- you’re fully kind that away, the sure a and there. rules capitalized goes goes of deliver it capitalized out

tends very to a these mismatch. large there of for very, kind So, be buildings,

be impact that’s So, we to development that new are be to debt have. of using we all that for going thing we as ‘XX, the think I an we the do. into And that then, funding are going using, nearly other is move you

is capitalizing. to we’re what debt equal be going roughly to that So,

we So, of we’re deliver year. to what kind this lose going

have interest does pretty on that a significant So, expense. impact the

this I quarter, other that also change mention leasing the item -- the quarter, The it I costs. it’s counting ‘XX it for mentioned these but didn’t last and affects

last in that’s I ‘XX as versus $X.XX $X.XX ‘XX. to mentioned negative quarter, So, us to

another that’s keep thing to mind. in So, just

Anderson from comes line of with question Mizuho the next Your Rich Securities.

out -- and obvious specifically can’t build space the you’re speaking timing wondering, leasing as this that you up control at the mentioned you the kind just these going Doug, XXX. there. I’m of of process the through buttoning

the a space, at you attention they’re incoming so would sense because have that If circumstances, individual the their be out into you’re sure terms of where hoped taking longer build they’re I’m to what waiting don’t revenue you’re potential urgency of get now, paying than the situation where in to you of had to space? tenants are recognize to you

their design, absolutely cases, are. it take space, construction to build tenants in of in We are And the then are XX their cases, are plus their them in rush to and actually to months some permits, issues. hope get start cognizant fact going those out. we build bid it they out the a of one Still and

timeframes are significantly are cognizant that what not we are. when than to their know going the lease of and we clearly expirations be different So, But, anticipate. we

between And the so, we they have know “time leases”. how much

of The these their on moving needs a actually there’s all commissioning and with that financial basically other because the to can’t rebuild a they cases, issue and down on to most their are they’re companies moving computers. because have start services certain also occur by Monday -- space for systems, up. the that shut simply is They Friday in part,

them cognizant getting in that would otherwise. a space they is news good little hopefully will earlier drive to be their the more so, of And than

taking too if the long, revenue, future? you into leverage, just negotiating point get it to far Do have to on start like -- some where they’re too just if lags they literally recognizing at way you some

sense At should be able that point, cash suddenly the some argument it of the lease deemed going lease XX We and out of wait it’s to day. to that day start turn revenue anytime in we recognize on. already not Because soon. until make doesn’t can they’re last obviously one building years the worth to they’re paying be it’s deemed and that rent to make

occurred. have right take those. have they they some make judgment There’s space -- kind protectively situations away. those don’t in build decisions people we to yes, it and of So, that And out

that you have And stops, lot later of the you estate this Second current picture. that nine-year I’m own of to added respond what up feeling And get might And to before some a question. the might it of slowing some influence cycle? this being I question real you is larger music if talk be of a should about the economically always A part why in cycle. pressure down REITs, question case. button how curious that’s leases these or are I

On economic question of inning cycle… are whatever mean, the of first of couple reactions. we all, in a your ninth of I this

analogy. baseball the so to the are in not ninth use year, We

this. mentioned in a don’t downturn imminent. I that I clear don’t my Yes. have see ball at a remarks crystal on even we

there market. We we lots to are the -- going lags. I are is instinct are beginning think are closer positive but in clearly some our things there of and end on the the And

that’s So, reaction. one

lot when as with as other our of at on I been extent corporation. think companies, a typical is, and economically second about is not and talking calls company we’ve call the The true is least about growth sensitive some that a this in previous

our lot our So, an average and impact in basis. some we year over the on our leased, suggesting seven growth economic is is existing a company XXs growth percent Tower And But experience are again, not lease as going to And have book. the on for term lot plan wouldn’t XX% years. on is outcomes. in of that is a the it’s I’m a developments of are delivering downturn that our Salesforce next coming the that leased which

we economically company So, of sale results, we relative of value space, -- a the in are of sensitive true in is underlying I terms think assets. corporation. and growth stock think our our typical than the and less others Also, on to certainly the

And recognition in clear cushion. also provide of described having that our So, kind some as we of lack keeping crystal this low. should leverage of a are earlier, ball,

We by and leveraging more doing are taking that. up company risk the not

to of comes low, take and keeping might out that there any us that frankly allow storms should We up. be leverage weather which anything advantage are the

to pressure buildings pressure our always things. of to look, have generate I terms do mean, income. feel we In and flow

because prepared in take of that bit and some to that we that is And that accelerated imminent. So, less the I wouldn’t our the the we have cycle last requirements I or risk. any bumped see that we for are a we and pre-letting development. say as over Doug have described plans year we’ve little way leasing are so downturn expressing later

that I helps conversations So, you’re you the hope having. with

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

But, and litigation Millennium in cited One in this of your to about costs? relation in experiencing similar you neighbors quarter hear you And Tower. this didn’t all are expense at guys Francisco really involved San case I this. talk

absolutely are the We involved in case.

is a design the professional in this. Mission, think, last every I part and that contractor site or eight seven the has who put years, XXX around every in of over ground TJPA, shovel the

We capitalized are and are K in litigation disclosed our comment liability not being on Salesforce into And we to moment. the would have expect don’t at we say, expenses Qs. or to Tower material the any going our than legal other our

So, you that’s “disclosure” see of any don’t what spending. why were

of business you fixing far interruption at resolution Salesforce as the the do as any And proposed resolution foresee problem, Tower? potential the or

with don’t tell can is liability expect material you I All that associated we any this.

with enter Okay. you At a what discuss demand mind Monica other for as you potential if was Business this like [ph] Park, asset? not, can this CPP Santa asset could in acquiring And partner? from partners

Yes. which in a capital we to reasons described We this that is the partner equity we thought in for in public bring acquisition did we preserve capital. our early should -- process the decide particular that we

as was in bring but think about deal. I that exposure. the made talked I that on in And earlier also estate real want there CPP, mentioned that investment. investors And capital to real last call. a So, prior particular to private partner estate healthy multiple to committing was are are and decision There we for underfunded the think about in the equity other us is market certainly the quite partners potential in interest, and my about more I remarks,

at retail. now placed far fully final Signature service in as as question is My multifamily, Reston, it’s at

to multifamily? amount potential of You’ve just how rents you do compared given done some market leasing supply progress there. underwriting, periods your the the and in But effective are and lease-up

pro in think would is tried I started an what the we that with when XX% well existing occupied building. put you is the saying I guess, of apartment say was building on, would leasing is have rents with a whole that forma, going bit the little we basically the having liked lease opened our I line I at say John, if are is the So, pro the where noise describe of progressing. to would of by implication But a to street building there rents. lie building a in on with the in didn’t forma and that XXX,XXX we was open. increase higher year across a And at when ground our that up did not to just base detector Signature the the The actually we across fact retail that signed My been matter anticipate the we leased. me, slightly I on is year the activities. construction [indiscernible] and street for

lease-up the get So, through moving had it. we a to little slowdown that in we’re there through, bit self-inflicted of but is actively

Center general additional, the would outperforms just office Virginia in dramatically the residential Town the like multifamily market. I just the market, Northern itself

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

in on thoughts and I you Ray just increase a spending to talk your moment. budget what want defense far seeing given you year? we’re go fiscal going terms into the I demand? so translating appreciate the GSA. for can closer forward, to of But, office in end will that closer what And you’re of happen to the think the and and back getting about

Yes.

down coming welcome companies what or where engineering Reston last defense the business stay sustainable. receiving I to with the with that on would we’ve people a efficiency a I is of environment the quite these some trigger growth even it that related on increase seen gotten lot for that years. have budget long an under users contractors to All X don’t And is modest level or demand. think we’re contracting seeing doing been defense are side a think we’re or are the we’ve government, major us a X that that just put so over to our

So, Corridor. yes, built, little very about certainly is space Very future positive being we’re demand. the Dallas spec

there’s increasing we ahead Reston, signals demand. to think good for it as relates So,

for And these type well do cycles? is from is similar buildings? think the know different I high-amenity type back will tenants of Reston buildings go location, as looking this fits it like, you time to or different in are prior

Yes.

for Just is in the Corridor. as, is demand all for Dallas in of tremendous there our markets, talent demand there talent

So, way the brightest the best go concept is and not to to of going recruit to a Greenfield office amenities in park with the no the right and Corridor. retain Dallas

seeing amenity defense. we’re center. the users, from They seeing the So, from base demand corporate town we’re same Reston just the in we have want

the leverage, And you Okay. seen -- couple for asset you sales raising larger from last going to of thinking Thank see asset just your forward we sales, than more about do might more not me. in then, quarters? last we’ve comment about question Owen, you. are the dilution

non-core Only assets.

selling assets. As we a pretty non-core I mentioned, are active having year

we’ll $XXX and remarks, -- and the of of the think gain assets selling special I I our a core mentioned million dividend target. FFO. dilution involve a to in a significant our most as my But, So, exceed

Vikram Stanley. from with the question comes next Your Morgan line of Malhotra

of assets? you see progress talk leasing what’s Just on can million XX of Gateway, for at XXX about some sense apart of timing on track assets those XX Center, from incremental, properties, sort XXX, maybe or well of the you -- the other of million lease-up Can other there. some just Embarcadero, just of which for the Colorado the pretty you

Yes.

So, I will try I and reiterate said. what

a simple So, one. I’ll start with

And revenue So, Colorado for in the is we’ve Center. year. of already part leased our Colorado increase slight Center this

leased. we’re So, XX%

the these So, of talked there’s on going from block there. looking the more is cases Tower. are and had one tenant musical Center that’s creative again, the one because do to, four Center, about coming space There’s spaces of as that in At existing Embarcadero at a another X which the that little not at project to have Salesforce bit to and refer taking much tech bank that office. we but And the floors I we Embarcadero -- I tenant, space we go left tenant to when tenant would consulting space. have have converting portfolio is what the two chairs outside to we we oriented

done year the leased. begin construction we’re of prior is XXXX, and there. In and think of to quarter leasing be is end our And XX% we Boston, so, very to going described that is which be the to before successful that major in the I hopefully this availability first up where going I that end of we’re think,

a feet foot not square have, a $X.X XX,XXX $X year $XX square in leaves so feet XXX to of or we’re still get minus, now. or feet rented probably about going We be the or leasing lot do million. XX,XXX a that’s Gateway, plus there’s square to right there. XX,XXX million at XXXX, space XX,XXX So, actually about square

lot revenue. a So, of it’s not

of I -- at rest other the the have City the portfolio well, well. hope this have New sometime pieces building. on that high of space do have one out is value doing Motors to a few So sign in in very which General York revenue the We lease likely in the majority quarter. recognition calendar We think late floors a space. will XXXX we that that’s revenue a and actually of high as of And

well. the of the So, rest doing portfolio very is

revenue. If spitting me back within force our to “$XXX XXXX done about talk go distance of that on we and bridge”, of are to having “revenue you everything million”

to XX and to next over of I to about referred next fundamentals stabilization And view York Do then, et share just X you have your six sort anything over or like Midtown up maybe things nine months? New positive be in just the where your of peers trending on would turning upward wondering, York, the New guess, overall months. you rents that to firming some and sense maybe of been in TIs optimistic I’m cetera. share

his where is are se. I lease give flat due and they largely TIs They -- think house the economics I’ll [ph] per stabilized. the the And coming of to not perspective, you let refreshment in are that capital transaction are amount John in better has a are tenants leased in of occurring. significant there form There a space view that’s continues and through are there new rents haves, that places that be to down pre-rent fact gone The buildings of better on the major there. and bunch have-nots built go. are construction is have can out the those being space and

rate of the if think any be to There any few over thought? years. other steady significant, next it’s is John, rental expansion we So, sort going not she goes. as

No. very the is had very has I added good year, a activity the would We half of development but leasing the strong. first supply say market. very, to

the result Doug kept the a result although says, net -- leasing the with activity. that that active what a market, very a of pretty dropping that’s from is availability So, of it’s one. as flat rate And

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

the question That Monica like attractive addition Business about portfolio to an and an with LA. to it’s seems growing going Santa in strategy Park. back Just the earlier consistent of

asset raising thought given XXX% LA maximizing wonder partner rather asset and capital you the it selling know and asset? on you an you decision your incremental just of non-core made last if on call on but to touched that that that Just through sense own on expand through your bit. how than a that, the I little that more than briefly could a on I doing just why kind presence,

a tax dividend gain sell special non-core to we We asset, -- significant of creates a dividend sell don’t Yes. so core we keep -- our all almost which have in shareholders. core When assets when a a we them, money. the that

can’t use to make acquisition. new that we capital So, a

look source you of So, capital, it’s that in way. it inefficient at if that extremely

is is -- the we developments to yield a good case stabilized that a it the the thought than doing. lower a we we Santa in So, it bring think of than was opportunity partner Monica, attractive, on in are basis

So decision. current the want -- we development that at the active leverage and our levels. was keep it’s very have part a of And we pipeline to

to an And capital so, we thought private area equity appropriate it market. in was raise the

cash How flow potentially about for good where contrasting of versus stabilized it growth asset asset? sort lower a upside asset got to or this you’ve a non-core maybe

point our other as we in didn’t We the is, have one bought Monica we interest. half that deal other Santa well. partner we inherited because a Jed, in a in, that bring

our Santa XX-XX. are So, in actually both deals Monica

-- source lot a this or the kind of of if that our price, a we that’s question kind money, assets we funding we great it to the the if So, we investments, use sell answer, go of tax if asset for in first the to can’t, can’t again, did of if did a back of even capital on make the to activity. not most most I’d it, of get capital first the basis given we not raise the, new most

would C landlords tax gross in there Prop passed was in X.X% Okay, thanks. town. Francisco And receipts office a on recent measure San that introduce

your to in get tax you get measure to of And take to ultimately. passed so, tenants if along curious going long burden stand the think whether that Just the on run? think much up is you how

It or answer I’ll on to were was you repealed. It’s the be able they that do vote if sense well a give a to XX-XX withstand economics will for. be going and will my I’m on not not sense it our legal unclear to as both or revote as question the So, that. the whether litigation weather

refer the types Our these leases, with allow to structured, increases we recover taxes. associated have as I to us costs what of in

So, on have the space. we margin, vacant

may And we upon the but of that way pushed landlord, all -- this to some depending so in those reimbursed. vast be structured is revenue there are leases cases, the majority would that be

five road? expires And years down when how the lease about the

we The a allow believe new in lease will more will pass precise language have pass it in way. to that us this, along probably

magnitude. to last M of allocations then Okay. a to maybe Francisco office and resi uses, that. or that buildings have to that Give and visibility that new related And plans? There for added been account back million X.X of chances the it been affect into other I order talk through converted one maybe just maybe it how think Q goes could and has me process San the your to and getting Prop

-- you be. “legislation” and do Sure. of what to want may sort is just your understanding that describe you where Bob, what

supervisor pass. Peskin, and been has Legislation will by we think submitted Yes. it

impact as sites. going As city’s have the think it’s all amongst M far the Central to don’t up SoMa I any to allocation think because plans, our material the divvy I going Prop

question final Stifel. for We have comes from John question and Guinee time one with that

and and Hey, in -- Ray guess, are James you I LeBron active now. you LA Ritchey,

there, out the the new been it XXX you’ve Beverly to is of Hills, west possible that Now is or Westwood, do build? it not

in the Business comment of Owen could picking Park. of reasons to Well, West in sites Monica up the barriers this LA market are like as the strongest on country. one of well. It’s course that’s entry we’re -- Santa we see any The the

effectively XX where and acres to acquire today, years Center will the tech we certainly jump we success at XX% Santa marketplace. Monica that when a sites it the XXX% almost validates ago, we’ve leased, just amount demand get bought we’re and exactly in so, of two the unbelievable scarcity in on both of a chance Colorado we And had it. And given some

be any advantage chance asset, site any it we’re it. developable we’ve But, question we get a tightest to ever John, seen. to So, of in acquire or a terms the acquisition, your new going market it’s take to answer specifically development the of sites

But, possible see never up-zone, or another foot? is it just or square et cetera impossible will to we it is

OT, that? city virtually it’s say The any on up-zone. do Santa comment to Monica, impossible I’d you have

attractive in what one John. hard define, investments that one no of question are time, a evolve how protection local will evolve. There’s you Ray the community’s we’ve things toward made the -- think supply. the going And features that lot never we is posture of things of of to These to accurate. described it’s But, issues is know the there’s attractiveness with these these new how are and

Thank you.

did do back I’m in How you impressed that? you got the queue, John.

I I don’t divine, think. know. It’s

right. All good. Very

your all the think for all you questions that I thank and Properties. for interest Boston in today, concludes of

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