Boston Properties (BXP) 1 May 192019 Q1 Earnings call transcript

Good morning and welcome to Boston Properties’ First Quarter 2019 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. Relations Properties. Investor VP, Buda, for Boston Sara Please go ahead.

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

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

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

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

grew ENERGY our executing the guidance for million the and and period STAR XXX,XXX of above which from our XXXX full-year quarter a we over the Okay. ago. feet. street Marriott as energy marked recognition and in with XXX corporate leasing Bank first had We possible share a we strategy this which and income midpoint square of and month, EPA on sustainability Also highest expansion an from Partner past our XXX the Boston the to points and distinguished the for and programs. of obtained the basis from of at our for occupancy quarter basis a America retail XX.X%. office this last increased completed this early portfolio we increase XXX renewal year also in-service point the lease report were financing XXXX construction Street terms, favorable in Federal development issued another per We Thank for was for a our would headquarters management selected of our Year, share the our square $X.XX FFO quarter we XXXX quarterly We successfully good properties, and of and by Sara, well revenue consensus. raised for guidance above are feet strong our completed $X.XX for midpoint, growth. above XX% for We growth is on FFO which XXXX, average also you, performance the XX% $X.XX X.X one quarter above continued include, per of Highlights morning everyone. the at for in-service result XXXX. long-term quarter FFO

as tightening Fed the indicated, low rates not surpass be X.X% and quantitative foreseeable to stable has economic accommodative, the Job unemployment in Initial to and conditions created at for Overall overall intends turned be future raise first first pause quarter quarter creation The Properties. remains in jobs estimates will to it continues with and for were continue economy. will the Boston GDP steady estimates. prior for the to XXX,XXX growth X.X%. Moving by interest U.S. favorable year-end.

As in XX In for This GDP points trade and declining around this year our and strong our has been dropping exclusively and the business, so tension. customers rosy experiencing and far Europe Treasury X.X%. with escalating XX-year with to China confidence economic markets. U.S. growth leasing landscape prospects basis steady activity core a result, is not our we’re fundamentally

the minimal continue Francisco, demand Central markedly DC’s new exception and With Rents supply. strong escalate Boston San of District. and by the Business Washington driven to in

we near-term developments and aggregate said, are a our Given economic set That and this ensure launch. do levels pre-leased before not backdrop our to appropriately keep correction. signals, of broader the we debt economic continue anticipate low

inevitable predict. As we is turn economic an to precisely and difficult know,

So advantage flows. for The as core remained market cash contraction take growth private a a durable and economic ongoing to our result, we liquid. to estate our of markets and with assets are and real strong well whether positioned

stabilized Warner for And known and foot Time to years from million a XXX% XX% transaction billion more interest our developer In at terms down as fund are sold agreement office tenant $X,XXX foot and billion, overly New sold interest million, a by Howard and of finding not $XXX institutional feet manager to XXX an Wilshire a San highly first investors. volumes $X,XXX square West a XXXX. building building comprises a investors costs XX-story, XXX,XXX cap Financial of foot XX managers. markets feet $X.X of XX and we property. is is it’s significant pursuit the The fund seem to $XX.X District, square the at XX% a quarter It’s leased Boston, sold are X.X numerous just as that backed This cap asset rate Courtyard X% concerned in North sold Park a Wealth cap again, imputed is about State lower rate. for with joint In Street, anecdotally, being are this LA, is although a is or under the recapitalized of foot near-term or to $XXX there capital a at buildings in Hudson is XX% well investor. to be recently million recapitalized The financing artificially is finally, quarter. was Yards first Animal the and for leased quarter and manager which a mid-X% ended XX% last alive sites. developer better single significant condominium sell a condo year under XXXX a square X.X% under offshore competitive than building new square data, of past office under is in volume a XX% Street to of quarter low and our constructed spirits $XXX cap not Tower a being by or to is both an and billion investments are production. a be foot The square is rate. Francisco, fully backed $X.X venture for value and developer sell Starting In foot most of X.X% assets XXX,XXX of to Fund. were fund and agreement Yet in million square American in being XX transactions Sovereign leased low, York, the $XXX and and lower; agreement a the leased for and The rate. fourth because stabilized. to down from

Development creating strategy activities. for So, our to future our primary and shareholders value continues current robust. pipeline to capital be for developments moving our remains and of

DC. billion commence we Most Pennsylvania XXX,XXX our office Our of In Avenue, share. office pipeline XX% square is and which approximately investment. the capital feet XX developments, is will Class Central remaining is investment pre-leased underway building to be commercial Business X.X estimated for portfolio of pre-leased located billion current total redevelopments of development and and comprising cash at and are stands $X.X well XXXX District and expect to pipeline of have building The $XXX of component The aggregate projected $X.X and XX% foot fund. an yields is residential square million we this in A million X%. XXXX, Washington the a

Main current Kendall square demolished replaced start office foot in fully will tower, component building in Google XXX,XXX the which Street, of of agreement quarter. with will Cambridge with XXX,XXX signed will Center following be square the be We we and this office past long-term new the a occupied Google. The also XXX lease foot redevelopment by

current part Google their will years As additional of our leases extend an feet. Center for two the in buildings comprising XXX,XXX Kendall of and XX agreement, other square

at As an building. we result, Kendall Center. foot relationship XXX,XXX have value plus $XXX cost the existing Google the with project million Total is square a of long-term over will

we project XX% of the residential As at The zoning, units part a reserved are residential In with XXXX at of develop work of Jose, at in is least required approval its Platform Kendall design to commence as investment will and affordable. we moving land are office completing the building currently our XXX,XXX square for project the feet process. XX. predevelopment through local recently completed San Center

potential foot made targeting multiple challenging We asset Tower are discussions Carnegie agreement We XXX,XXX we the is demand $XX XX% in at in dynamics partner for to dispositions, location approximately a Jersey year. and presentations from entered Princeton have large On recently a in binding in with invest building The million square users far One Brunswick, a the million. us in a in to with and to office capital sales New we Center, leased are project. $XXX located property Center. sell stronger East experience this

of our in decision assets. line with this non-core strategy select So, disposing is

charge, our basis of XX Although occupancy the sale resulted in an portfolio loss companywide no income by substantial there’s will increase approximately points. and impairment

the Madison put XXX on this located We Midtown also in market quarter Manhattan. Avenue

asset a partners XXX% their square reviewing would of with foot the expected advisor sell position in After from interest joint-venture our pricing. this our property and in We outcomes likely there well. in yield sell and was best has sale XX% better substantial understanding to shareholders The been of the XXX,XXX asset Our interest process interest. sale prospective decided date underway buyers. to it as is to in the our interest marketing wanted

by energy to greenhouse reduction the Act City recently by policies, its has the emissions is reduction through actually the our reduced in of this energy given ago years New efficient XX% started the and passed many are annual of already have report, supports and own bill reduce Act – investments supplies. buildings Properties efficiency, all York available down of by investment years in such York the more Mobilization and and the passed month. greenhouse landlords by continue the anticipation utilizing Boston last cost gas contribution case last other of of global built the XXXX, XX road XXXX. that Climate environment which gas we goal been to markets. recently in business in XX% by last you Mobilization our sustainable over we systems of of about in month. gas and Council the Climate has and local carbon public many sustainability over We new released XX% to ramifications the Lastly, strengthen The emissions asked city our New core important potential likely Details intensity greenhouse targets regulations established emissions to energy as in this time will for

our time the targets by York, by have effect. of energy to second already Specifically, think more sources targets of and make XXXX plenty XXXX sustainable set take acquiring emission phase enhancements, related additional new we emission New probably the by the meets to regulations substantially when portfolio

in work role our logical city to greenhouse shared leadership mission legislation to reduced climate and create with our hope York and we Given communities on our accomplish to other sustainability, our cooperatively partners emissions. effective with New gas and

demand And execution per XXXX. FFO XX% completed to in Boston start conclusion, full-year with year-over-year lay strong we to quarter properties guidance continue is growth share XXXX in the successful another strong. of midpoint. favorable. to conditions We for Tenant remain company growth. XX% growth beyond increased at We foundation year-over-year continued Economic XXXX. So, the off a for remains

look I at with our progress. today, Boston As Properties I’m delighted

and portfolio capacity attractive sector same-store continue an pipeline a pre-leased leverage growth and to growth, of in FFO outperform terms development, with We our healthy modest new of investments. NOI support additional with refreshed to

over Doug. turn to me call the Let

good and Owen, Thanks, morning everybody.

up are customers, services the seeing Silicon our are it’s services in reflected we’re described we So, efficient to law San life the are Salesforce our markets, first continuing dissect Boston, somewhat spaces although expand, firms show service run of Amazon in science identified, led moderated spending Francisco, growth constructive firms Cambridge DC When achieve in In today a really has created that average on lease described up some seeing and make midtown lease that as those in seven of macro growing reductions professional in metro over XX% Northern service today. his remarks Tower, increase and length by our results Valley, of expansion, I our XXXX, hedge for signed the Boston, quarter, that the the as aside environment incremental last the I’ve demand the are defense employment fertile some the from the we base immediately our to rebuilding successful building, have In activity markets. that sector where number April of their the of years. the government are in area and leases, Owen funds Manhattan, market driven more done organizations It’s the don’t is providers tenants. the below or Last that really whether have firms Virginia, that space results. XXXX actions I financial like media, Spot LA, there strong the the have CBD, that we regulating the based the challenging market favorable by technology growth market and or financial while landlord office we week that titans and that business, well. from our the submarket tech tenant that suburban a where and of is in homeland in supply we friendly. long few fully in market and rents security. is rate deals October and inferior or occupied a expansion about In conditions

is our Google Street. signed negotiation XXX square least extension to the feet Owen in started XXXX described. for Main we new along the lease that quarter, This with with And build that the increase We XXX,XXX moved XXX,XXX XXXX, rents rent. rent higher which XX quickly, on today’s market commences extension XX% number have feet, in that so below in that XX% and contractual square cash is because

markets. the about talk Let’s

going I’ll in in with our expectations what’s on Boston. portfolio. Our begin

income and inspired Over the two buildings, full supply not little million with very with aggregate pre-delivery Cambridge or portfolio, demand, we limited result, XXX along Existing the in rather XX%. contiguous extraordinary describe foot until and the because a no XXXX. in a of of renewals. than to found foot early Boston which realm floors going last find. leases deed we’re seen another being buildings heard over to in square net in with GAAP me actually by tenants is goes pre-releases they very or the are it’s week, foot, and gross renewal feet tenant rent new The going few documenting short-term on unpunished, quarters, our structure starting have with is a to Street you’ve Federal all XXXX. XXX,XXX leases square The In square have Street, mid-rise XXX pipeline. but an towers, net is increasing kicking XXX,XXX at delivered good XX-year we’ve XXXX completed at are from XXX either expiring lease full space. Clarendon square reduction XX% to believe lead early XX,XXX At a a our Last XX,XXX XXX,XXX to In is in basis. of completed BOA our speculative of hard Street, Clarendon this extension inventory led more square net increase average not, lease it feet new

with able our increase space XXX% Cambridge feet net in square to tenant our and basis. transaction only on in to no XXXX – the is addition a XX,XXX we of portfolio, foot here, extensions were a In requested additional still Google available a direct complete

terminated and Street. on will square we retail feet all our of You should vacation million and complete XXXX, XXXX. of will at basis leases, the annualized of quarter in quarter, total the impact in occupancy by know this end the the XXX this to year the building We about loss XX,XXX large $X Main per of decline XXXX an second results and our

converting we’re lab in in tenants our suburban office life the used from demand Greater by buildings office of Given to science number increased Boston, straight portfolio. a

by at tenant. Lexington, vacating building lease previous in was because the investments such this first The of Avenue XX signed quarter Hayden

about Waltham up to rent square in We We’re investing the by XX%. convert upgrades West a Street only a similar to intend base and net moving in facility. is building $XX XXX foot

$XX occupancy rent case, rents of about vacate net expectation. enable are the apical we square You’ll in this have drop building and Lexington conversion. pickup triple Waltham, we’re the investing see XX% a a to the as In $XXX in in similar per this on lab square footage about a Lab market. foot we’ll

products, XXX assets. We had development permanent positioned square a fits next a that Causeway the product trial involving incremental suburban company foot sold incremental Point we disappointments leasing was XX,XXX science as when its building being remainder disappointing ready. site the We we the a as ready is transaction in is have had the had and of for customer expected Point, did feet of well. a development life canceled double-digit to few on was lease City as an and out a our new for M&A it so all XXX,XXX Tower We XX return and lease execution XXX our Waltham that canceled design in quarter our and at investment, during this City bill. square our lab sign

known the City, our west XXX not we happening. are The quarter days. last transactions rents and side expect, in with news All Lexington along we In in concessions Waltham, far have we will same XXXX. dynamics made park. leasing and New leasing in deliveries have Boston lower the City changed York at in Cambridge We in replace expect York concessions, decline New the XXXX increases higher tenants great last these a lot the with XX of with and the and rents of

haven’t and change. rents concessions seen we seen haven’t suddenly We increased

revenue feet. of today more Our at square XXX,XXX the $XXX about floor of should leased XXXX, we – the at of as XXX,XXX at The foot $XXX beginning leases revenue feet XXXX, that’s known This portion at by sign XX,XXX portfolio were block hedge rent have Avenue. available will not space community, advisors; an than XXXX part and this, GM out along XX% Motors financial about boutique rents space make Avenue. in of the XXXX portfolio the markets the space million XXXX of in should and and of excess the $XX the square we a moment, one have we square first available about private latter be XXX square foot equity our demand of million square and This square additional a feet, Park in General building foot. focus of to feet the a financial quarter $XXX XX,XXX is $XX under rest commence square of have the high-rise contribute foot. excess which this available high-end of in of Park with Combining a we’ll but XXXX. with ultimately the contributes kind XXX market, square and up the demand end in move At for of fund XX,XXX significant and space shops

segment incremental somewhat Dock package. at simply Manhattan previously, XX a leasing light. and Construction submarket the demand is As matter It’s progressing. I’ve concession of the of about smaller in described the moment, not that is demand at a this price or is pool

It’s technology we fairy able will a operational up from open dock to over to tour X go We the space what Tenant first received XX picking all by a and in and proposal take floor interest will look. full and open begin is amenity we our a by last should should to showcase September has you May company pretty be expect early and The and rework great October. be we be offer. week. to expect

Washington segment active near-term aggressive accommodate. you more the costs, be in should spot expiration increase in XX availability that demand. that available along prior base supplemental is competition never flexible space DC increases third pool You with believe and to In we of there’s their leasing resulted in demand stabilization GSA the foot were to that to with see supply to about granual market in there. the and very to pricing we quality market. the the with The a blocks has have pressure of demand the firm requirements challenging don’t an eliminating building has CBD note extended from the fierce of conditions more new projection There market continued square space project truly at and space. office providers our in this, continues some market the lease We XXX,XXX are budget significant our XXXX the that information. along ability law all continue The the challenging they CBD, aggregating medium would absorb to positive the as quarter higher

on While well the and last news near-term are leases face we our significantly are where it’s importantly, is NOI over that we Virginia, the district have is concessions and more Almost robust. good XX% at with of commencement least down rent more much stable, in modest demand company from rent about the reasonably the all northern dates. exposure picture years. position few resonated sold The

from of feet XXXX we the of known biggest – not in our block approaching delivery not future whose XXXX. and we accommodate have in with in be tenant, March stemming XXXX Leidos XXX,XXX XXXX could We will the departure to availability square growth and

their tenants XX,XXX are expand foot square looking We minimum in installations, XX,XXX users for are square three of each looking that rich square to a two environment. X,XXX number XX,XXX foot in active tenants existing of to are this a on with new amenity feet focused that discussions

day XXXX about users, from reduction for in revenue million. as known some will we retained be interruption of income the in there the the at While there’s expirations, will the many Center Town ecosystem Reston win $XX the these space,

for expirations. the Colorado Park, our the Monica XXX,XXX in At we on and well actively moderate while limited availabilities. Moving beginning are square new as rate working on Business foreseeable resolution active technology allocated, LA was this availability The XXXX In XXXX the big our LA, to Francisco, be Prop vacancy and ahead is cycle major footprints leased sequel future. of the lack block how quick in HBO CBD area. Rental the companies the heightened lease active Central an a there since XX/XX/XX will rise M financial XXXX We in to rate as expirations. begin vacate late of XXXX don’t of the have about were believe a are its issues. also expanded on foot Santa crisis. had be San litigation that the focus their there’s west, has marketing level in these number as Center XXX% the questions West we block last that media market involving at a of the continue The rates and should and lowest going getting as to great the SoMa well after

or percentage the points Mission, The block Salesforce significant up our to XX.X% Pinterest during over occupied, the are with rate square be $XX triple it that unentitled quarter the with of a Salesforce continue last pressed quarter foot could square to an XXXX. XXX,XXX one space it July large and at currently In are and new Valley, XXXX. rents addition net. been portfolio, space XXX already of an in Hawthorne requesting to demand leased. XXX foot starting square tenants full Folsom, continued before proposals. the XXX,XXX and full first Similar floors and completed of development feet XX we construction, sublease. growth. from market, release Boston, at we a option Embarcadero In or View to hard Research won’t quarter admission tenant XXX% Silicon all under deliver be in direct have at in tenants those average XXXX. Mountain negotiation major another In leasing. of renewal basis in committing was an new ended from uncertain renovation has market If has floor renew only delivery XXX completed rents the be days XXX,XXX existing Tower, continuous would of XX% XXX has feet wants only to You the of at center, the There second excess to like increase Embarcadero square prior The our developments. find center, XXX multi-floor We $XX leased. Folsom, early a the

them. site the preparing there more it of square leasing This the described, going lease completed renewals, a presentations weeks, looking property to making quarter. comments totaling last are steps the a At for my did average are I’m construction square we XX% for two and or up. about this square XX,XXX XX Owen to a had platform increase XXX,XXX tenants, are foot the quarter, some we it number who for and roll an we’re conclude over feet as two feet XX%. same of with and – remarks And have morning XX,XXX with we enabling

of feet deals in about floors This of of City square big prebuilt a where in Francisco. You’ll suites describing remember, TI in one transaction and $XXX that transaction commence a include are include feet the Saving in costs. of did. note a over of we’ve over the of outlay a cash occur square Obviously, entire turnkey those is tradeoff square statistics or San XX,XXX by XX-year $XX. the costs we many never on the revenue will into and actual offsets commission And the statistics six a which with cost Package numbers. when rent, occupancy, we deal our there��s million longer we in And jump last The reflected excess transaction downtime includes New while few foot. or $XXX months years, York the been accelerated recognition quarters. improvements

and Class that expected years. stop conclusion, continue and FFO coming in Mike? is grow mind continue space So, A well remains we competition I’ll reflects for our be values. to top for XXXX positioned brand as seek to customers in premium their the here, we our of talent progressing they and to

Doug. Good Great. morning. Thanks,

our raised midpoint. full-year As are now FFO Owen growth quarter at the described, FFO we had guidance XX% a projecting year-over-year and and again, strong

I the into a items. housekeeping details with do want Before I to of the of quarter, start get couple

required notice statement, lease which operating now accounting as recoveries service that and adopted was assets standard rental our First, are of income to fee that our income And quarter, balance use, will lease this to the together be you and liabilities we’ve income, income. operating lease reported sheet. on expense new required operating adds lease right

and creating these revenue is The our provide This we included will FFO impacts clarity, in statement the assumptions income service management geographic of also and development supplemental and approximately XXXX guidance $X previously same requirement everybody movement these fee of of minutia, increases report. make had items income our income. continue For our our to sure income our wanted quarter. million property services share our same This changes. NOI. XXXX our to to but growth we’ve accounting apologize I assumption share and from of our NOI development relocated management in understands by property into basis the last for in XX from lease on change shift fee points for breakout services and I guidance we service income the as include components

XX% in on for from details the XX% leasing, in and year-over-year our driven gains quarter rents renewal by higher development from revenue into our the FFO increase marked primarily strong another occupancy, deliveries. get incremental with a let’s increase revenues quarter. Now, and recognition replacement portfolio new QX

was from up our X.X% a on roll the second net leasing quarter, This generation and basis. rents

up year. is funding construction to Salesforce occupancy from portfolio Park property primarily in development. million Center the basis is lease basis Cambridge from and joint by properties the Marriott occupancy points part due at Google debt in markets, the One we occupancy points in for basis We faster The removing Corporation. at gains Marriott Avenue will for our Street the San increase New a to very $XXX LIBOR in-service Tower of removal projected by two York XX.X%, would and anticipated XXX service and The that range XXX Francisco. anticipate the and a loan improved Main points. XX.X% long-term City closed and of in of Center Embarcadero and XXX the attractively just provide Our redevelopment. the headquarters This part A to priced lease for with reflects sale is XX.X% plus than due In of these venture. XX project quality and loan is the to this between Tower XXX

So, our loan share XX%. the is of

Our development our pipeline cost investment represents new financing. billion billion of construction $X.X $X.X remaining and active net of to in-place the fund

raise of be line this of with credit. of the on from million year $XXX the later construction proceeds we retained our project sales on another cash flow credit will end We the line At $X.X billion quarter, share of our $XXX of and of and available Causeway remaining had our funded asset Hub to and million. cash financing for office costs The operating expect

Owen New an New this As Center Tower described, in executed Brunswick, Jersey, we decided and One to and sell sale contract. have quarter purchase

is reduce accretive from definition. net earn this the but and our us quarter Our minimal decision resulting building actually caused or an sale the are sales. losses fair cash interest We of part because or the borrowing value. sale. similar our are to $XX future Property provides impairment to the in on impairment our occupancy, the us, income NOI pursuant million to for on The shorten XX% an income, booked impairments gains market at will the with to property its from FFO property excluded period we NAREIT’s hold

$X.XX of results was in we Approximately in at quarter, XXXX. budget per per we above expenses, share later Looking the midpoint below of but guidance, our quarter versus is share this this share came incur these $X.XX our FFO expenses to timing of a where related our range. $X.XX expect of first to our the per guidance

our portion FFO. increase not full-year So, this will

$X.XX share portfolio performance. was other to per due The

was Growth growth GAAP project quarterly consistent year strong of NOI our a So, of the cash leasing and rate should the NOI budgets does revenues comparable look on and run at really year. the $X.XX this in for higher basis. quarter from service a projected to remainder in share our higher than $X.XX space the the show income for step-up last rental The X.X% over for our and same of by faster. not was on for as our same it property up year. X.X% basis split outperformance full in later you the leasing fee result the in quarter. between for so in year, property We This were a

will comparable However, of in year XXXX the the the slow being to half growth in period rate over XXXX back the due higher.

For calculation, of the property income million assumptions represents XX fee the service points full at growth into over increase last from $X year basis our include NOI of moving to midpoint X.XX% Net XXXX. this we current XXXX, of and to X% the to an On reduction in fees the share our quarter. million revenue. moving same cash assume reflects X.X% of of $XX XXXX. over the a million $X lease modified assumption X.X% also for property We’ve service development to services million that and for $XX same of income basis, management our NOI into cash growth of

rates interest with The This, dovish has assumption share that our impact per to the asset lower for past in additional result that full XXXX with million per has at new increase our for our share XXXX, quarter, of to of of are $X.XX increase positive increasing these in the NOI improved range but expense from portfolio million million more per FFO to midpoint in we’re a net to the Given and of share $X.XX future lowering $X.XX expense. the for year. our XXXX. $XXX in an combination adjusted financing we’ve representing of in assumption and guidance $XXX per interest $X.XX sales, changes outlook share a changes for for the $X.XX costs timing our interest resulted our had for rates funding $X on

there are mind. about to As XXXX, you a keep think few things in start to

We our property the portfolio. from same NOI and to continue to our grow development expect both portfolio

We expect to end and deliver approximately pipeline $X.X of XXXX. between mid-XXXX our billion of development the

expect rollover Reston are typical Doug from described impact GM Building and related is meaningful more to we XXXX our exposure. in the lease which downtime year, every some lease our temporary negative rollouts, do As Town Center.

of – utilize debt In vehicle off we finally, continue addition, lease this our value share rolling Building, our incremental at where vacancy. to of where expect next GM as for see we much will And revenue to the year non-cash new fair we of will have primary developments. we the with funding $XX million see

of a interest new current on total $X.X interest our pipeline, reduction consequently expense the billion XXXX. delivery of will capitalized result our in Although developments, of in higher we capitalized and interest

That had XX% now the highest growth FFO project expected the good over XXXX the remarks. is continue summary, environment midpoint our in for markets. on demand of favorable our increased outlined up we quarter remains with stronger for for strong could on strategy which we’ve vast the We open growth based sector And our I’d you of our year. portfolio economic questions. in So, guidance company. XXXX, appreciate if the to majority at we execute the We the completes trends in FFO a Operator, performance. than line among and the

Yulico [Operator Instructions] line from comes Your the first question with of Nick Scotiabank.

to should Mike, to similar your that Thanks. talked that see us XX% this the maybe case. and then how look improvement for a was commissions, this the what of guidance. about tenant feel be think if being growth and give I a wanted know quarter bit why a year, would growth number Fed leasing I for could terms in spend if we full-year in the a would about you like FFO Doug and TIs heightened little

problem. No Sure. Nick.

for mentioned, So, it transaction is costs. QX lease was you as high obviously a year

amount just tremendous had long-term As right. absorption, we and all mentioned, leases also had a Doug of we some

of points into we absorption which drops to quarter. basis is had – up the that’s all kind with XXX to the portfolio bring So, XX% of almost, that,

occupancy as to do identical you out kind basically building is it’s our that mentioned every this we Google of asset mean going and be quarter pull expect that. year, taking if the sales year of projection I So, not stable be the I out to service. to for the

quarters expect bit the higher rental drop back third quarter in the come in our we to actually be second rates occupancy and the So, fourth up should a in rollover. the and little then although

$XXX you our million somewhere be million in the So, our we projection expect lease to transaction full-year transaction lease AFFO for will $XXX total in at cost of our if look what range. the costs,

if a So, for been of over you look just this our that I not rest chunk big the year, of mean, at it’s roll experienced. has already And the big.

going $XXX stuff to our of leasing of into keep years, significant. of include that million. the Most kind into leasing that the to that Other is we’re into $XXX think line and million going for quarter rents, amount our place the to are about we doing AFFO So, occupancy which straight pieces right? of get XXXX the really to is have So, the is that future not XXXX.

going is to CapEx Our be lower.

$XX $XX recurring we million comp CapEx or to below then $XX $XX Stock million non-cash million going million That’s be $XX think is $XX somewhere items to our million. the million to So, $XX is is and in last around about range. million year. other

that of together. we So, all stuff kind pull

an somewhere share in is to get in XXXX. $X.XX to $X AFFO $X.XX You the that versus a

kind is pretty of a significant growth, which that’s growth combination So of CapEx. lower cash and same-store

Mike. helpful, very That’s you. Thank

it is, other New less question markets gave Doug York, on commentary except the think second about in if Just was Washington DC. I that positive

mean, targeting, science, lot park, assets Madison, the development are portfolio, I did if your a about New portfolio leasing be life now may you XXX guys lot or let’s demand this of you’re City that that we to right mean sell is we say think should mostly guess, tech, looking increasingly XXX of which your more York developments in even a feels besides stabilized cycle. like I perhaps you of a it’s you I like So, about talking which think about

we down don’t sell we’re should you New with I York again, open portfolio we results portfolio shrink for I but open-minded to our get shareholders, wouldn’t assume by an someone always it, think assume No, extraordinary think we’re York going I further. if approached we’re mean, about New to going our we’re further.

as Okay. New doing trying on like, your the seems commentary as just the you reconcile to I think if not of some markets. other market’s you’re York, guess well which just

then York. so presence New that’s the case, still as in of And – why have a the if big

demand leasing the think aggregate, years. Last been has at York was leasing. this We multiyear year, We is a high been New record think, There’s we’ve growth it for healthy. level. saying for

long-term a in So, Hudson more absorbed, our Yards Yards secular ability event we New will market. intend and to issue The there up. New the maintain in a And York market be healthy been The City gets in as in presence healthy that a in is But the very and estate Hudson there. significant until certainly New muting than push the rents York. York believe think the typical we and we has described supply. York fully have real New demand is it’s market supply to

country the the about and being the Contextually, New And than City, to were in at in go across San Boston money Silicon if in that City Nick, think there actually, you now, look follows investments the demand you Francisco. into more the VC York there’s is picture if invested New York Valley marketplace. Yes. actually

was of there’s those terms where a a point problem, what So, modest outset the DC, supply tech, City, supply the in York supply New really, markets supply in marketplaces, significant fintech as the which media, very City. problem, world there’s and there’s Owen supply said, not is about York is New opportunity Washington of rents, CBD, and really vibrant sort at where alive my in problem. namely pushing feeling our problem a but strong a in those problem, set we’re

We’re net-net, Francisco. over call New diminished has so way. San in years contribution much five York and the or necessarily which se, in New City, the not per And grown last, interest City by selling then a four York a not in significant our we’ve more where but exposure in position, reduced selling in And Boston that. we do from assets, can we’ve assets we did in actually by it ago. Naturally,

not and strength embedded San that, XXXX way, supply fintech relative a of see point hope in in – New going York in So, will and I on time seeing portfolio City thoughtful that a be markets positioned the going-forward will Boston businesses where the to have to part a those the of Francisco it’s going to will a grown the kind we’ve demand really we’re basis. and But And in cut think the as we there’ll in of media, be population off future, happen picture that technology, XXXX, in in always portfolio market have sufficient near or that the the XXXX. we’re our well. in

Doug you, Thank and Owen. Okay.

Yes.

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

even Doug, Can good in everyone. that Google, with help especially pointed case you renewals, the end Hey, will of that like us time given market understood with out early a at you sort morning about the below the how the we’ve renewal where you renewal, correctly. renewals being early about think they starts successful lot you spoke that. been and early up that just think how those I you if

they’re Yes, below…

What’s that?

They’re below market now.

So, be there’ll market even more below the starts. renewal when

leasing Boston XXXX in in market doing is being about that, thing the the when cash they has will We think and change interesting to The that which by we’re growth chances product want lease not was so the leases increases get at by take something our are well the and new and space. just bringing customers, for think at we long-term that what our we’re been I of I don’t to to most to lease our wanted incremental profile. was – that And logically upon XX Manny trying opportunities describe that to today. serve spot driven want rollovers that around, is have is is we’ll market online times. transactions grounded to space rent going those I timers. And years the space us who And who believe Properties to us XXXX

And a are from it’s basis going so flow and as be below significant the going growth going-forward to markets they perspective healthy cash market assuming the to there’s all on as company’s remain be today.

But would don’t I just was up rapidly. markets market. add, also point Yes. And we Doug’s renewals moving do early think are below the I

And the the is So the Salesforce and Doug then. agreed now. market when at were levels. market example that those Google But the to transactions gave since these elevated were was

specific will one as for purposes? easy hit the to an more delayed just getting Mike, modeling Thanks. for into later year, are those can that it. be Got you. The you when expenses

second repair lot guess. bit that I that stuff was came of hit third I if will in And in expect would There will than occur costs and our we a healthcare the majority to G&A, and little The a had through quarter maintenance would it. year. the the lower anticipate because that of and guess is I

right? – that at related would and fourth. But are out, I capital we third, and guess the do locations the So, we because in that those repair that where not the depends second – those when of be item So, is most the are maintenance the are will work, it goes in quarters, to least stronger of it and in. weather

that Will offset impact And I forcing one think how something me, to have on hands your any XXX one for that. about guess last Madison acquisitions? acquire you the sale.

will out to works out the exchange, always to something, to that It going won’t as deals “look” not the like want buy won’t more makes we that. go because see on for have in we of have – for an be If we’ll the do flow and impact mean, to sense will do, do acquisitions. if we gain, I on that an exchange, do business but it tempted if we attempt we of we exchange based that shareholders a but the deal. we’re on

everyone. Thanks

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

have near sales going you be question Mike; at good another funded but and tempting now of the below Hey, that pricing as the most terms mean, it is morning I bought debt. to Maybe Park look on said of at to the the Tower angle. taking the joint kind you from guys. got with know maybe interest? development you I to Salesforce, in look that market they that venture X% rents all you at

something think it’s which of property in tower in a one want salesforce No, not. And country, port is markets – the the one that it’s not properties venture. to portfolio, We our joint of of in premiere premiere premiere world. is one the office we the if the it’s Francisco, certainly not San strongest the

saying didn’t of the just sources didn’t go review from after been we me this quarter, pay dividends. let capital company flow – we our but have of we that kind cash terms what and So, back in I that. through of we Obviously, generate

So first for stop that is a capital. of source

suggesting million Last $XXX of each year. of have and so little the deal you’re been it because be funding non-core sales year, to of we been The or source second as for was $XXX assets selling larger, that assets that has a million TSA bit in. a we would engaged us. And

current The we’ve – third talking leverage stop the is on very maintaining levels. debt focused and we we at as been are about

would the have partners. us developments But limits debt going and to But So, financing next there we’ve do we that. are joint new been been place The to the which capital increased developments it. do has for venture have certainly for given created capacity, we that investment. use delivering is

we’re that talking capital Santa to remarks Park the common brought equity. a year. of that made at last in bottom is, the we a Monica on So, platform partner we partner described issuing joint Business XX. list venture I the my in investment And of

the our below ones we’ve that have thing that’s their significant So, other of well the is, more many basis mentioned certainly, market a value. tax assets,

the efficient of raising capital not perspective, because they’re dividend from So, a special requirement.

And particular, salesforce tower in yes.

Yes.

able a have out wouldn’t be massive with necessarily that. to that It just a have asset to would would that retain distribute we gain associated of and JV we

So…

factor just That’s thinking ahead joint that timing talking your get Platform an you perspective, want a with before but on you venture said you would does with XX, all? know anchor the helpful. I you’re from And go guys a lease to into partner, or at

different of we a asset into today. equation and about that We and – factor guess that structure was I We venture it’s appropriate and pricing our that could joint we at doing aware when was way partner venture then not, felt particular wait, – this the to partners we – model. – think, a to the do the I lease the do leasing asset. agreed get joint thing and that deal purchase “threshold” lease venture just joint no bringing while a and the in that of we’re not a activity the doesn’t It a in we we quite recognize there’s conversations we part to capital theory of having

Okay. That makes sense.

plays, just, guys more at what’s developments you quick just you keep of is cap the a up have can’t on potential for Mike, burn with know I outset one year, off. one just off Just next it mentioned of the your interest spending lot burning the

So, to of decline. that there’s way backfill no kind

obviously pipeline to about to add Yes. Pennsylvania I talk mean XXX we’re Street. to and continuing Avenue I our XXXX and Main development wouldn’t

continuing that, at a that is to but are lot just and to and we is supplemental coming of in stuff So, the being in. look add when you that you completed there’s dates look pipeline our if the development

keep So in not it XXXX, we to up. do expect

So, we year. year next this interest capitalized lower it was to be do there expect materially than

you. Thank Great.

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

if Fort In Ocean Francisco, you’re Harrison, San update at its And a also likelihood the year? or of it’s pretty valuable M given this you’re provide developments, getting an White the you. Prop looking can site. you Thank allocation on interested

that. resolved real So, about be are lawsuits long XXXX about we know year in calendar on sequel take. M discourse is will the a lot and don’t question I’ll answer to be A ongoing. allocated. anticipate give you The they Prop There’s Harrison. how and questions lawsuits don’t to sequel of We a going succinct Fort how

that to who’s they developer, in will there’s understand in that some lots how some that situation. regards our issues, mind, be any unlikely Central people forward building to, timing part has So of got first with trying a – project projects I it’s might of The SoMa think the XXXX admission. are currently in of helpful are go

And those one parties? are of you

We be don’t or – comment not we that that things doing. might on were might

Manhattan kind coming midtown – market? demand to be Do think being sublease of there’s demand Doug, the then, going mentioned into And additional Okay. you the And you also space you liked. moving these tech from any Midtown? demand that’s hearing on discussions wondering on Midtown South. really companies, focused I’m of And and you’re but any positive media more with companies to were if

Yes.

So, those end last I the In be a quarter that has I – quarter reiterate demand as very been. $XXX square expensive and high is going said the I into are space. guess which felt I who would the to was I than I end, it want that what high I lighter people, want this at to just foot, the over very the define said.

think is I the itself very healthy. market actually

there you’re midtown? to lots the from demand are So, people demand you to in that space, fill are $XXX to going John, have lots of I to and if think talk talking the side you there opportunities did tech want of space. $XX about

No, the you’d the demand good is supply. the at is The people issue I The news think coming The here. the it. prices have looking holding market. a flat that, good lot that’s supply onto of there’s is very

and question Can the you XX. discuss date being the last on just stabilization in moved One dock out? costs increase construction

Yes.

get importantly, the in have increases. coordination of were out is between and So, which led we’ve But the conditions just now to time. that issues found an some our were pushed site we either cost professionals in us the taken and/or of things for We some that contractors to unforeseen to how extended A&E going when doing given more and we’re work full period long it’s construction, project an lease cost happen so the to September. carrying clearly up stabilization the

spaces and space an dock it, construction. when XX Dock I activity really going shaping and XX. unique new opposed none we’ll up. actually under relative I show think feels unfortunately as announcement of then us, a but see that? like, there, sense seeing that’s you but previously the over the that’s now. for on is by me bar interesting can what the it, pretty opportunity XX be days lease with has had. outdoor was in Wegmans And yesterday other the than an to it picked right with about, that’s to for up you was And to what get it comments plans me going me we’re want make it’s more at a like when year to in tell I – fabulous And show any feel center we a other tenants I encouraged to there and before property the it of show second almost John, a go if amenity looks really touch lease, it. ago, a tenant will we’re – it that

big ferries starting The app a lot. XXth, plus. May and an on like all that’s a on The people running are shuttles it time and

when people we’re can this experience over and number this more action. a take work rover September an people, the in as times, opening Doug ferry asset, where I’ve moves we October, to to, get the as amenities going really they call, can there. and in of in and they’re So, lot to said getting said, a But is have it

increase piece a is that think I to the just I equity clarify carry. that big want of

you a we something that it’s the for ourselves as our put up. cost charge on impacts lease own obviously, non-cash out always budgets, extend the the that concept, So, which it’s job our we is carry and equity

you. Thank

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

good Thanks and morning. Great.

a seen about the in curious like? what So, the submarkets talk back I kind you’re Monica, have of of some getting and look looks leasing Burbank pipeline some we you’re and Santa LA wanted Hollywood, start what you in other pickup focus the others, more the of demand with prospects media spaces given interest just can like to

Yes.

it I’ll pick a Ray, make me Let then quick up. comment have Ray

relocate that space is only we’re that’s XX/XX/XXXX. know and getting that HBO we is and to the happen going a Culver currently the Colorado that at space decision to Crossing, made So, occupied by to Center back they’ve

opportunities Santa Santa in in only staying go include with media in that really, the interest and technology and property their space and then Ray? by the So, existing Monica. they have which to renewals everything tow, in working and outside Center on game Business Santa encouraged we’re and sort the of we’re companies, other Colorado Monica, may Park of some But else doing tenants that is our we’re in Monica early both town. in

Doug. Thanks, Yes.

Colorado of at discussions that specifically, – So, Center, was Hulu have future kind path we growth. the had a growth. in their with HBO regarding of we

years HBO accommodate have were block there more strategically are Other while calling in to tenants existing really our one, the that see while important already interesting was be that so are What’s larger intense building to the tenant. project as demand we horizon we sad the see space that tenant. driver. ago not being Monica the X.X it and is discussions So, us with about to was just and that have up Santa is Monica strong as it Santa main others in nothing demand does in when a the we acquired

other are We we of some Santa about Business if in but Colorado Center seeing at only exceedingly it larger prices, defined to are lower the the excited markets Park. still blocks some Monica exiting

then your that have there? there’s expand And being what’s buildings you. some appetite – Thank know marketed? Hi. to that I are

– Well, we are go ahead Doherty.

just to Ray. was and it I over say, going to Yes. turn I’ll

Our appetite for remains strong. significant region Boston Properties, just like LA want grow into We all regions. other to our

development a year, do to it. But been the think this of want challenging of ourselves However, assets at year to looking we sites we’re going of we there you a we’ve it number and it to to that a Ray? number deal all fashion. also And a have and a prices we’re as do well. at way have it been that’s pay has disciplined in to traded to is describing want didn’t about that way been a

three occupancy are are listen, up now. opportunities considering we’re at held LA. our or to the and four more years on come and discipline other million high and we second four right three here on XXs. levels square three came X.X We’ve in Hey, to actively for now we those Current feet. didn’t ago in or we in overreach But opportunities different

an So, also to on Manager, is Regional I’d John add? LA our Lang, to the like who for you we introduce want all are And sure. anything in LA John, and call else

pricing, our healthy but marketed No, the some To of both the been want aggressive existing are of non-marketed asset traded just a we which this pretty and opportunities we’re Owen’s for development but path to growth. opportunities to with seeking and here past would remain acquisitions, add in there’s I comment, and we’re disciplined to lot it. quarter,

just that real would the while we of like estate acquisitions market. I the in excited And very have that add we’re to about

he’s having excited in team. in John over market a really been joined grateful us We’re and only made difference year with to and our our presence him. a have extremely He’s LA tremendous already about the we’re

now How you’ve there the market? Great. to in it you say, you would while, say, the itself you differentiate be market? been and bring that speak What how a do would fresh

asking or John? me You’re

Whoever would like answer. to

answer community tenants our outreach and in could our our think a landlord And would breath John that? portfolio, think distinguished community LA to the to to our comment the existing little care comment ability to close develop to us you brokers has of we’re air in I that LA. bit with on the I Okay. fresh outreach leaders, development a I traditional from John, of and would market. relationships

for I you would Yes. And a other recently and reiterate Center. all have that folks Colorado those things. couple been of Jamie, to

taking tenants, approach, our but with with We’re our customers our improvements. physical very not our just relationships hands-on and a with

rolled here to plaza the just best-in-class new Center. going we We’ve out here So, at be opening experience got food new shortly. a public Colorado that’s hall

in more world and in little a with today’s more So, strategic what we’re demanding. little capital I a the here putting thoughtful, strategic that’s the are tenants think

center our Country are help are making Centers sure kind our regions. and XXX% in leased, see and improvements. you the quickly with before with leveraging and Cross that of Colorado resources deployed two here feel the all went So, collaboration the that was everyone’s Ray’s years about collective and of example across was we Colorado actually since acquisition can of to and great capital that and

a more some to the that’s story a success take compared great Monica to Park just of owner hands-on and we’re Santa right that as on the and So, I bit of approach well. think a Business the operators other And at do path little here.

you mentioned way very count like like the a That’s to of maybe quantify you or – able some share other per into rolling great. earnings to to can helpful. stays on XXXX, same, it? Okay, some about drags gears Mike, the your think you share are assuming pennies Switching

numbers. of described Doug some Well, I the think

I Doug was think, GM said, was and Reston $XX So, million $XX million.

then right? demonstrate moves explain the and to try those still them we’re lot of table. to in expiration renewing are of So, believe we that is stuff Every we rolling same-store on the out? the to the portfolio. what’s what’s growth going to rollouts, And be able year, and kind So, big them, got we’ve a

to are tenants renewing We’re those going in we’re leave. of There some on the and things. we know the of process working where are kinds

it’ll leave that I of a what our are more there’s they’re be you honestly We guidance going in the give just you guess, there growth tell to sense think – hamper profile. will you just now. things early. We the couple way. these sizable for still that some is to stronger So too help right think positive. a ones are where along we to I can’t know It’s

Okay.

which marketplaces cash significant described, very just to want Boston it’s of seeing – the if therefore, give described What to are in to XXX%, XXX% in limited FFO, close I of is, like our really is modest and time a increases Francisco. out mark-to-mark as very is of if San in and increases occupied in year-to-year Okay. amount I and our either rents. there’s not we’re sort those And least framework, our – projections. rollover there build I’d you we sort we’ve both think following you about

soon been number the is, asked because the last tried up over our anybody Northern which it what we’ve asked that to reason That’s I – NDRs City and we’ve one-on-one single vast the every quarter our done articulate property biggest of exposure, – and that leased exposures And and pull to that continue a is currently today. particular the with Town are the because that have We in the question had in pulling of then was. Main XXXX, we’ve including but exposure building terms down brought believe we Francisco Virginia. in the time Reston New Street, majority in XXX Market San a XXXX. of meeting Center We other Motors York is there General and taking some I a million of “exposure” the of and described which is overwhelm we Boston out of that and in the few service, power of as issues, as XXXX negatives that have power the other we’re going degree properties out to $X the from are

your on you modeling a about sort side, give XXXX tried roadmap might about you how of our to think you the think portfolio and for we So, XXXX. good did revenue of

Okay. And those not NOI are numbers? revenue numbers,

number. revenue Yes,

GM investment?

Yes.

you. Thank right. All Okay.

from Your Evercore. of with next question Green Jason comes the line

Good morning.

that the or could kind Boston a see is profile Just in submarket question on a major guys not Is you’re the currently. for in the quick fit it market. only we not does submarket, you The Boston enter Seaport of Boston what look necessarily assets? you

out you it’s submarkets call on greater looking the take market inspired X.X% the that range. renewals. We market. to happening, specific caught is asset we’re echo in of Doug’s comment then to with everything, on incredibly worse core about every that in continue markets, tenant part finding look a is of definitely a been And at matter just edge the it vacancy, It’s at Boston part Boston the The things seaports like other is just interesting, talking our of X% one if which core would at right play what of opportunity. it’s market, low. I like

the to it interesting really and still pre-leasing that a it’s significant right firing sites, with the them the them. echoing have couple a as with at of we for Doug play And development OT on well forecast discipline significant do on look markets years, time bodes is about these incredible of talked cylinders that all at of least what coming the look terms lot developable of all has right in was on and as next at for So, being each now of we now. pre-leased

to Mae, then right and into be And Center space not might maybe risk some viewed Got Reston, company to it. given Fannie housing relatively as be way? the the is what switching Town to any might over just perceived there about changes to as expensive the government reform continues talk lease the potentially Reston and at moving

credit to right? tenant, of talking about risk the You’re the relative

– was legal it’s risk. risk It a a legal

believe think are And NGO DC understanding going to Freddie we years that the So, the future least discussions at been that have starting I bonds the on with have that XX is, mortgages the I our how the or with which do XXXX. Washington a that and we binding beyond agency by go of have in lease Reston, of both the have well NGA. issued all are in or Fannie securitized.

from is way we the So, organization works. on not rent in happens that to to organization market terms our the ultimately of are relative changed mortgage What private basis receiving concerned a cash that the how tenant. and

anybody’s that’s an in and think be I it could XXXX, guess issue.

Thank you. it. Got

time have we final question, And O’Neill. comes one with and question Goldfarb Sandler for Alexander that from

that Yes. back Mike, Hi, year. thanks for my going question. just next quickly taking for items you of the mentioned some to

of $XX that million XXXX $XX from mentioned addition the if effect in the out? You $XX million? coming impact So size, GM the coming GM it’s $XX out that a in in Building, to of million Building is

Yes. $XX front. the million, to non-cash That’s that’s in a addition

Okay.

it in Okay. guidance closes the guidance immaterial in XXX And not Madison to so the or that’s year really share. or it’s then the is that in late

agreement Avenue we of at Madison have it. XXX on because kind guidance, The on not picked in market was It’s the point. any don’t this

Center Tower the is sale that only is the that the sale we announced in So, guidance.

funding $XXX issuances seems funding list, equity good about. in dispose you a – sort going it just flow your have then developments pretty that Okay. forward. like projects, seems balance guys of of new for Jay just cash think million guys then being is finally, between pipeline, that on new And on you it last for million And found you clear like were that your to free about $XXX thinking but

the guys a dispositions anymore. it? you fair sort the would sort like good don’t growth you the pretty gotten funding look now to that that that have a of big where way, to have of loop at past, So, it in seems your way model Is

the five have selling last years. a the but our forward. real that through to program non-core think the is nice company true, reason are is been that’s Alex, I raising we I we’re assets going that outcome, going mean selling capital

years. some I agree we in But still have we’ll with saying. – what you’re those future So, of

that and are in not of capital we think a we new capital resources we of terms our between I the own will resources growing investments. list – making constrained have of partners,

we And thing other focused on Alex that is leverage. the our

– six be right now, seven. of we are don’t our a want at conservative So half to north leverage is and times, since

we If you have look pipeline six. at new today below the pro forma were and

sheet we’re there’s for a to to in just of this, good why linked using of existing in partners amount we And So, of that bring there is that lot of a of which room work. capability on work, then this. some continue us comfortable for some to debt balance

okay. Okay, Thank you.

that’s the Okay, the sure. end question? all Operator, are we set, of

I turn for to you Yes. closing will guys now the over call remarks. back

much. Thank for much our That very Properties. questions the you includes of in Thank very your and all Okay. you interest remarks. Boston

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