Boston Properties (BXP) 29 Jan 202019 Q4 Earnings call transcript

Good morning, and welcome to Boston Properties' Fourth 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 after the formal remarks 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.

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

the these you this section Investor not for on a are If investors.bxp.com. call of available Relations copy, our webcast documents at did the website XX of months. available receive A will

of this during Private Act. Reform to this At historical Securities inform made which call certain meaning are not statements statements like the we'd conference forward-looking may Litigation you time, constitute that the within

believes the no can it reflected attained. expectations reasonable forward-looking expectations be in give on based statements will Boston Although Properties are assumptions, assurance its that any

that expressed the and duty risks in any and Company press update could release Company's differ from results by to undertake not does detailed The yesterday's forward-looking to were with filing implied Factors statements the or statements. from in actual those SEC. time-to-time cause a materially forward-looking

Chief Doug Owen Linde, like Executive I'd Mike LaBelle, to Thomas, Chief Financial President; welcome Officer; Officer. and

Q&A and the Senior our of be Ritchey, portion to President During questions. address the regional Vice will Executive Ray call, available management teams

the we'll turn to would this the over I call our be in holding that before investor to Now team, Boston. mention fall I like conference

provide into strategy, our our be every date years. you business. many and This we once insight themes conference know, will our to great designed The of a three team, in for send September at hold holding event Causeway to this some our our event, everybody As and forward seeing out XX, Hub I'll reminders, the complex office it is conference. on at in we but look be Boston. conference do the entertainment and new significant we'll

formal his Thomas call remarks. turn over to for like to the I'd Now Owen

successful Boston Great. Thank of We at year which completed you, good a capped strong morning, everyone. another Properties. Sara, and quarter very performance, off

XXXX, share consensus. FFO $X.XX at square for per the in Park, leased prior $X.XX significant market Reston feet, Center. and X.X Boston XXX fourth is Colorado quarter of including quarterly Specifically million the GM which we record guidance Properties, We and above a generated Center, our of Town Building, and leases

over square our over We year-ago. and we basis increased for feet increase XX We the an XX%, a that and placed of XX% by rates developments XX% to increase is quarter occupancy leases a XXX,XXX last in-service were quarter delivered in-service We were rental pre-leased cash where new on point of all and which second XXXX. the for XXX yield increased average our XX% net generation of portfolio initial with point basis X.X%.

per Boston We by over increased three our XX% we $X.XX. per by FFO to X% guidance XXXX regular $X.XX our the years. for has Properties quarterly past the now quarterly share share. increased increased its dividend growth outlook of by our midpoint raising And dividend

leading XXXX X% forecast XXXX, over in to following in office growth last our years. two continue We growth peers XX% the

Street new operational leasing numbers leasing of in Avenue highlights, million and level in-service Pennsylvania XXX,XXX XXXX of of our in leasing, highest we terms and including XXXX X.X asset developments, exceeding We XXX and In Washington. Cambridge feet full-year annual development XXXX square feet square commenced second of completed ever. Main

Tower suburban XXX including East Madison in acquisitions our sale Center Winter New XXX remaining Brunswick, Jersey Salesforce in for land goal of of $XXX our a versus the Princeton. and million, new development sales X% in and assets interest in New Massachusetts. Francisco, York, parcels of XXX million million, $XXX Street in Center completed and approximately Avenue land completed $XXX We Tower in San at in Waltham, of parcels the including Carnegie total and We Maryland

we our interest including rates. formed XX% $XXX We green development with bonds holds are earning at ENERGY Partner million and attractive Platform among in Star now from San raised participants once financing, GRESB joint the a very which a and CPPIB, venture year Green for almost top also recognition, eighth site And again, XX interest billion debt We an recognized consecutive the performance in in $X.X ranking in the in Year EPA. throughout Jose. the of Assessment sustainability, STAR of worldwide the X% leadership, earning X,XXX

Overall, our depth management, for the Boston excellent XXXX and and leasing differentiator proud at Properties in strength Boston markets A Management experience, year I commitment and from am what a an success. team Corporate XXXX of we was teamwork, very of to relationships, Regional and perspective. is our Properties accomplished development, through and teams. capital entire

at spark high the remains turning our in in favorable robust power around job rates. exceptions. for projected activity is markets Now to creation, but and inflation our few to and economic leasing remain high U.S. and rent higher enough Conditions interest not space Economic growth very XXXX environment. X.X% for business with enough demand to the core growth,

to currently business and witnessed. requirements what X.X% positively to addition, for markets be risks over The leaders space indefinite XX-year do. tempered geopolitical make the have particularly like for U.S. Fed treasury on move hold appears trade creating And XXXX, Job new are action. recently disputes, to remains very in more constructive confidence and and around is further investments as investors capital we of X.X%, financial inexpensive concerns we for for the creation rate

an stable and yields estate healthy. The and hedging decreasing institutional private capital markets assets estate capital assets economy, growing with in U.S. for and and costs. office real for the market foreign real remain domestic remain destination relatively higher attractive core our

$XXX One U.S. there all volume of transactions were which and transaction about real past a to sold rate. cover million from square million and the XXX% this is XX.X% largest foot X.X of cap I'll quarter a investment in up stabilized for quarter little to District asset Marina prior manager. a Significant Yet sold estate over X.X% the in the a numerous fourth Boston office for Park ended Seaport This up significant again, domestic were leased over the was XXXX. building which, square and of and little foot X% $XXX quarter the or

Avenue non-U.S. XXX,XXX will Midtown Company. square and in XXX New to under a million East is sold a X.X% secondly, sell York, and in XX% Madison to This foot $X,XXX is agreement And for property cap $XXX a Insurance rate. leased square be foot or

moving XX% to and Properties In of into two time the square Now Akamai XXXX, of on for XXX completed was we budget pursuit delivered XXX,XXX successful quarter active to value-added activities. The be an continues for service. shareholders in and we leased foot projects and accretive primary fourth delivered redevelopment. headquarters Cambridge. and projects at our strategy attractive Development We remain Boston our for new creating value Broadway, in capital to new and building is yield. Akamai the

and We multilevel XX% Garden of podium Hub This and other retail theaters also our TD Boston. the project amenities, delivered leased was Station XXX,XXX an the entertainment venues. exciting development foot completed at attractive also podium the to entrance phase and and includes Causeway on North is new Causeway restaurants, The square is Hub on in yield.

XXX,XXX podium, was on to this XX% which Causeway, of be under which expected of square year. this a XXXX, all delivered of is top built a in XXX-room, be to to leased development, delivered hotel tower XXX the long-term will phases foot last X-story a quarter, that open HubXXHouse, and residential XXX lease include Further land office and tower CitizenM, unit luxury

square current pipeline our component of removed, X.X of are Most of is million office on development of deliveries and have total these projected With well developments at the portfolio equity development and billion stands and capital this cash $X.X shy our remaining investment billion fund. The is and for and feet X.X residential currently X%. redevelopments to share. comprising XX just pre-leased XX% underway aggregate of we yields cost pipeline commercial

XXXX, Dock Street, anticipate We XX, of representing HubXXHouse deliver development projects, to In square President plan and dynamic. feet CityPoint, Skyline. including will X million XXXX our $X.X XXX pipeline and East investment, XX X to billion XXrd Street, we continue be

We recognizing already income expected these portion a the from projects. of are most of

of to is allow will us received Francisco square San first XXXX. M San Harrison deliveries, XXX,XXX allocation these we construction that phases in Harrison for and and replacement in Platform to Xth Prop Jose. of in As in XXXX expect feet Platform XX XX. Xth work and of begin enablement the begin the site underway quarter fourth at And

investment. investment. pipeline X.X at $X of new phases million $X year-end billion totaled our starts, projects in current these pipeline X square approximately new development XXXX deliveries future $XXX,XXX, With potential could of billion of The be our comprising and first these developments feet approximately and

which Bay control a And XX Hudson the New for portfolio before foot additional vertical Boulevard and by in prospects York, square should opportunities. to XX% X land under beyond anchor Near-term us, development Back we this Waltham, million lead we for development. have include in Station to tenants bank owned Street in XXXX, XXX Boston CityPoint pursuing Dartmouth of commencing are which all in adjacent

In development of Town addition, we have at Reston residential phase another significant Center.

acquisitions Moving dispositions. and to

candidate. for under sale of that contract lease the current rent comprises years two recently making Technology property government for square in XX buildings strong The quarter. Government $XXX in We the disposition in we for a will feet are asset million investments. located the flat to proceeds We to subject of anticipate Federal believe retaining other property all completing the Northern excess extended and this for New XXX,XXX a Virginia. exchange like-kind this We close Dominion tenancy due Park diligence at for

Properties square buildings Boston Real amenity parties Gateway square portfolio and joint fully center joint funded completed San Alexandria totaling venture a contributing both in a have approximately formed feet. will three Alexandria We including when office South venture be Estate ownership XXX,XXX also existing our Francisco. XXX,XXX contributing feet a adjacent will XX% just Equities totaling three newly with buildings with This for Commons constructed where

and and the structured associated parcel development and The buildings, creating totaling Alexandria encumbered lab with feet both value with Properties office parties XXX,XXX for is a owned a of use. Alexandria, us and surface with including of by sites land, critical square that contribute for existing three parking Boston the joint will potential creation venture excess parking minimum by

in joint life premier of Upon in the critical completion of space of a the markets in the significant location will comprise one venture U.S. plan, X.X science and the strongest science square office million feet development mass of life a

driven year Boston on Properties. So driven very plan, by XXXX and up our growth well growth development. We of in a executed summary, for external was by properties the lease successful in-service

our very excited new investment team eager positioning, constructive market we a property produce, beyond. for leading to conditions, and and pipeline Given market are growing XXXX

over Doug. Let it to me turn

that commentary Happy everybody. Year. macro morning, months overall the you experiencing lockstep good, XXX leasing really in It as activity strong should the We're we about pretty everywhere. basis our increased going feeling the anymore. And not more our Good XX really that are positive we're of that volumes in-service from Owen. during clear state heard say business across occupancy Thanks, than New very so economy. leasing last daily to the we be by points, transactional portfolio is and Owen's

interpret shouldn't to mean You every is that strong. market this though

strong short-term our Cambridge, modest very characterized which we have CBD and LA, significantly, have markets, We are by San grow Boston, new and strongly. that economics and supply rental Waltham, continue and Francisco to West Lexington, deliveries, there grow tight

significant second on have Silicon very less Manhattan. West the technology supply Reston Center availability, the coupled Town group construction of area, new far consistent in the but the that are operate the deliveries, new side i.e. Valley, markets, so demand, which constraints, construction with higher We of

markets These are improving.

a function market So of it's of to the simple product the added being more of as premium market conditions. to opposed new a

the is Plaza technology lacks segment behaves since growth. District Manhattan. differently third The demand it in It the

were have concessions to this the they our really although more is continue in few talk way But deals economics over much an about of strong And supply are the And those from headwinds, and and two. in level. been at we growth, fourth to then best market portfolio non-tech there we'll both there and year which really limited continue users. which has non-tech the had from hasn't have users. to minutes. supply elevated a category last expansions activity, but DC have CBD, leasing changes the the We does modest or remain in two demand Obviously in the activity buildings quarter, significant

tenants continue established, large to most primary to space a their in for very their they in is the estate taking concerns customer, we Our business. to about business our or and few Even see which the actions or their prospects. with consolidate that users competition in cases expensive private real many looming talent, key markets, space our startup reflect expand upgrade decisions make as public and use

with that's of in our to in firm the we're in that a to point, XX% footage The they rent higher their discussions of versus currently case improvements San A is one is and square base site the will a in build on $XXX a negotiating service in of the buildings. changing top isn't be of new renewal a tenant their to the the come will building other one a have over move to located square Francisco pocket out where AC foot bit. and

the about talk markets now. Let's

Our in expectations on and our going what's portfolio.

practically surprises. rumors expectations. any The leasing last New City. over few tenant significant technology, lots options in timing was large Hudson space with accelerate are and fewer we Manhattan much X Boulevard, market there great since Let the represents since it absorption growth it with think construction months very new really me and of block There begin may completed York It's and speaking, weren't was of in the that opportunities. with line

firm in products. existing and new developments two to announced will leases lead The that availability the were law

optimistic. are we So

over While newly to continue of economics availability will we're constructed we the optimistic have view of a space, the years. shrinking cautious next the two about transaction

That our expiration quarter, was Avenue expire Shearman through at development lease XXX XX-year in a I XXX,XXX Last every we to extended is a have tenant That square use a our volume said, square we in and for minimum feet. a to now leasing very one due developments looks XXXX of major lease of the in completed tenant renewal XXXX Lexington strong. with square in & We've anchor Avenue feet XXX,XXX that our feet. XXXX. Sterling, starting XXX reason into above the portfolio being moving XXX,XXX Lexington is be new

XXX of four three remaining available We on have on floors signed lease Avenue the the are floor. leases a and at Park negotiating

level these conditions, these four market have square floors market $XXX of barometer bumps, and a average TIs rent of a a As rent starting leases rent. and on about free foot

win square XXXX. was XXXX deal done similar The about expiry foot. would the a floors in have a $XXX or We on

so square leasing get renewal signed going tower very and strong expansion XX,XXX and back in In are the for addition, of a a negotiating we as floors we base expansion to for an one feet we're XXXX, again, that activity.

the rents opening work including in portion floor since the on and cube full of September, a feet Building, and completion $XXX the and foot relocation the and than relocation Motors General saw the XXX,XXX between building, with million Plaza of CBRE X.X starting we've the square Apple a office At deals vacant a of tenant completed starting the expansion in with upper that feet the of long-term more to of million City renewal. leasing, floor a new reports over square X.X deals square rents a a $XXX. short-term $XXX

feet in X.X feet million square million that's XXXX. versus So square that X.X and

level So at the activity in high-end and of our we are at building. encouraged the by market the

the feet available Avenue planning Fifth that the existing square of And on for with foot X,XXX remodel Avenue square XXXX we Madison space is completed Avenue on a retail. retailer retail for did lease store. also renewal a X,XXX to our We Madison our expiration an

only would continues NOI. reasons to said, conditions Switching market as CBD the I to represent the that challenging most amongst our of Washington our have, D.C., X%

XX-year of XX%. decade to at for was The the for quarter, you a expire has This completed roll been a which rent, foot, for X.X% XXXX. XX,XXX lease DC. down renewal we is Give sense in square conditions to in expected going it current a about Pen XXXX escalating

the originates we The demand NOI both labor have tenant U.S. for we're where are and City to in growth. technology Virginia, in our developing continues and New significant Government quality X% are and highest are growing Northern also as in search they Virginia markets. Boston Northern that in same service companies expanding San and of York company Francisco the

Reston $XX that the believe still significant outperform vacancy demand to with create Northern in continues in office Virginia. in the is core contract but cloud-computing the the in to starting billion will low-XXs. We high-XXs urban There market, JEDI rents significant

This feet Center deals. for XX feet Town and leasing completed including of with smaller a in XXX,XXX square Bechtel square quarter, Facebook, XXX,XXX square foot we Reston renewal XX,XXX

We XXX,XXX relocation renewal The and are tenant. end is with foot square square expected and XXX,XXX in of negotiations lease to Leidos by relocation the occur XXXX another April. feet expansion, of the

do, discussions with entered negotiation some freedom significant have Next. XXXX so a portions filling activity with space to under XXX,XXX that going interested XXXX are so That's is they're square, occupancy vacate active tenant could to lease in at feet recently two building availability our construction square work the RTC fill significant of dialogue, in in but a tenants and for in still portion one, a with a most of So aka the Reston, that to availability that Mae, strong into that's we Reston. we a of requirement Fannie really we'll

no is began X.X million announced either of earlier to West CBD projects late million and is XXXX vacancy under increase or has square or cycle and about negotiation than the financial The rate San Switching XXXX feet and occurred. in asking lease There's of the a meaningful last XXXX lowest construction through is an The the Coast. square with time, in great in more crisis. X.X either level permitted taking and the delivery after since feet rents story beginning all Francisco in at availability lack than leased that

late additional and in permitted begun. XXXX moving delivery M the have There conversations we of develop start in development we tenant are XXXX beyond. land Harrison, XXXX and potential to hand, are early for in allocation Fourth our purchase construction With the Prop could towards and an

net, square triple rents $XXX a all construction on this a are new over development. approaching foot, New

to Bay, XXX,XXX New tenants. or opportunities stemming of market Mission Uber's little from early a bit to so perhaps move the sublet for about be there'll anticipated

CBD square quarter San feet XX% of committed. With ended quietest can little we XX,XXX availability, CBD the occupied only remember quarters I of portfolio Francisco and the had leasing. Our one at XX.X% with

In XXXX, expirations. believe we increases we XXXX realize as fundamentals, limited continue rental will we double-digit to Based have focus very on we XXXX is market our today space. current availability, that relet so and

terminated a annual of XXXX. market XXXX, X% escalations example, of years lease continue almost just floor was leased in had had Folsom after Street recaptured we an so The grow. a five which at As mark-to-market XX%, that even XXX in to rents bumps, the

Valley, Silicon record and the strong In development Google, great setting portfolio opportunities. growth continues XXXX. led in which the to market we quarter our square a feet had View assets by have leased another XXX,XXX Mountain the and experience during absorption This of market

In and renew net. excess we View our $XX to continue existing release space rents Mountain at portfolio, triple in of

with feet This XX%. increase feet quarter Mountain in leases most we about square will we Bay XXXX, totaling significant availability. in opportunity where of completed average rental have our XXX,XXX an portfolio, the two the of XX,XXX is square In View Area

as Google and location they Facebook seen employees recruitment opportunity on may companies a private Owen We've our to San hours is bus. retention. factor San critical mentioned an their that becoming in day work expand provide a clear as and It's grow, their companies been that quite plus in continue and Jose. commit for XX alternative Platform three employees to like spend Francisco technology the a in

Airbnb all Silicon into down and likewise, have and expanded and Valley Splunk the similar Uber reasons. for And Twitter

and Valley Caltrain the seen locations. proximity particularly office a in are for bullet that have peninsula premium those assets close stops to We the distinct and

from well and other bullet mile connections. Caltrain Almaden Platform the as future at stop are Plaza our BART as one than the development Diridon XX less

XX in it in new construction downtown in think and was that Jose of owner-occupied XXXX. last I drawn based set San was years the ago plans on a XXXX, was

outer but downtown least, the But it's San read of get Boston. The Jose, this the beneficiaries and immigration Waltham-Lexington to not growth corporate technology believe [indiscernible] growth coming. to going and morning, in significant suburban the relocation. Journal market to we're sectors ongoing as CBD, We in science clearly Street Cambridge last and you Wall from continue and life be and significant the

region As comprises in we NOI, one-third Boston a than the way. of more our big this benefiting growth are from

buildings San and are which very and to Boston will Dartmouth Francisco, including is space some CBD. with active construction, multiple XXXX suggested available are has project there XXX little blocks in deliver there Similar new Owen the Boston, our availability under construction permitted XXXX There plans Street. current in in in large for at late

create buildings been Cambridge beyond life And Back are the of new station the in being will science has disappeared. many twist, demand. interesting for supply Bay which the an designed That's to and in XXXX all meet site, users as availability additional

we Our CBD today is XX% leasing complete leased and portfolio continue forward to transactions.

we XX,XXX square feet Causeway, square talked quarter, as did about. Hub The the at including During on about Owen XXX,XXX feet,

addition, and of XXX continued with rents of leases feet square at Clarendon, get completed we XXX,XXX XX%. to expansions. We of renewals In increase over early average an

In roll the suburban to availability where in mark-to-market in the square to in was building over foot lease, be Akamai demand is we to XX%, market, market There our strength is region XXXX. would office Cambridge, largest negotiated be the to Cambridge of Akamai the XXX years. have were in the Waltham-Lexington which continues which significant XXXX, in four to the today, market open. if leased XXX,XXX perspective, Broadway, put And

converted Our use, be actively XXX ready project, build will to being the out quarter. Street is third tenant in lab West for which

requirements. universe will lab We continue Waltham to include potential to tenant our in expand

market rents and through this office the construction in in triple $XX net net. are mid-XXs rents New are pushing lab triple

is or in project with a office an position lab installation. to permitted and start a CityPoint either XXX Our

and of XX mid-XXXX. with XXnd facility repositioning part experience investment of guidance million, Tower. this expect residents extraordinary our excess including and expect open conclude creating which we a hope project, public is this return commence anticipate Prudential an space, on on We comment Boston, the to development local the our Center spending of visitors in the we I'll capital of to floors an observatory. in Prudential forgone with for line income this in about to Later initial year, $XXX to recent this area XXXX from major

has the about some comments Mike results that, XXXX FFO. and With fourth quarter

Doug. Good morning. Great. Thank you,

As we described, a Owen XXXX. really year strong in had

In occupancy our the came as portfolio the and rents and growth from growth, revenue higher FFO as XX% we well of substantial growth in from delivery developments. organically same-property externally of addition to demonstrated X% higher the

Our share XXXX, the NOI growth over of cash on X.X% full-year XXXX higher it basis same-property higher year ended by was even and X.X% at growth. a

incremental had from also in under earnings developments, construction to contributing X.X% active our year million projected several that an NOI our the have provide growth We to an developments pipeline $XX next growth. billion And in years. still we $X.X incremental are of for every

$X.XX The results. income tenants our our in earlier from We portfolio due a quarter. quarter guidance. better service the combination increase from fourth our from $X.XX share above was leases than per midpoint revenues share projected well to Turning was of as of of operation to per reported projected funds than as the that primarily and XXXX improved commencing

mortgage, had incurred property. we for Our is debt. stronger, our interest million results We $XX.X expense have of our X.XX% interest would been carried $X.X of New elected and million reflected the a rate a prepay a to not loan $X.XX Dominion The in extinguishment repayment encumbering high lower XXXX. from charge assumptions

changes our pending in updated changes expense primarily guidance XXXX, to ahead with coming and asset assumptions. we our sale Looking FFO our from have interest

quarter's which ongoing in of the last confidence solid markets, seeing with leasing Our activity detailed growth. same-property Doug us gives the ability our portfolio majority in our guidance. to line assumptions we're deliver remain in NOI

NOI incremental for million includes assumptions of development growth non-same deliveries of growth Our between million. XXXX $XX X.XX%, to X% properties from $XX and and same-property primarily our our

and to have quarter. New the we completed and per results the As gain. significant close Owen Dominion be a under sale sale in diligence described, sale first we expect contract to The in

the exchanges We exchange acquired option. Harrison reinvestment under $X.XX currently Street proceeds in higher sale under land of net earned allow is impact our in us prior The complete guidance. in with to and per for of San that the Xth These developments. and acquisition a Winter retain our that XXX compared dilution XXX, development growth is XXXX of the share plan of on Francisco lifetime to the earnings the FFO to interest projected sale, proceeds we

assumptions to in other reduced The expense. change interest our relates

construction Jose now will in this interest on our anticipate Platform XX interest expense our associated and We capitalized Francisco. we of reduces commence development Harrison for San The both our these San first that Xth development year the developments phases assumptions. in and

contributing at to repayment approximately Also our $XX New midpoint, million our and mortgage reduced interest rates by million the net of to $XXX lowers range of the interest expense for lower assumption combination $XXX expense interest items are The for Dominion overall. the these and the new is million XXXX.

sales. share our the So operation we per midpoint, funds from increasing the XXXX are of $X.XX from guidance asset by at for despite projected dilution $X.XX share per

$X.XX Our $X.XX share. per revised guidance to is range

would share. have per guidance by we increased So asset excluding $X.XX sale, our the

growth strong points our at projected followed XXXX midpoint. XX% X% of by in All FFO FFO rate the this growth in to continuing growth XXXX earnings with up

from growth in of our be from growth pipeline. our driven by increasing delivery will the XXXX Our developments profitable topline revenue existing and portfolio rental strong rates

We Harrison currently pipeline to the the expected development construction have with continued robust growth. additions of pre-leased. Platform deliver us XX% under later multi-year $X.X and well XX commercial space position billion plus a this Xth This year and

have That's our remarks. formal all for we

for it up will the questions. I open think now operator

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

there you give very Good work in doing development? a Can how a how to everyone. strong still, Clearly, market joint any for cost in any this is the plans can you you're there's foot with if San redeveloping in – along I square but you we Okay. through is versus I per think, market. And going rents new about buildings this build just indications should get to out know morning, venture the think South new going existing us feel Francisco. with starting the out of guess, of early terms today? incrementally

Nick, off. I'm have well. as a will sure Doug comments start few let me

lab doing for market, The that this strong and joint little up just is and is is frankly, that drove Transit part for joint assets this Alexandria's a market. near South is the a park Gateway land Francisco, So less second which is that located are a there back a parcel joint venture in a has office keys bit very strong talk of well very San rationale our venture. a between our assets to about and office venture. located

And by a one but buildings. surface is land by us, parking the it's owned that by of encumbered easement Alexandria

contributing can venture, on joint it. both this doing by are develop we our and and to we site Alexandria So rights that

up development opens that we have on Properties the also and Alexandria well. we contributed to as that parking side, we parcel contribute can additional Boston some to excess JV and this And So new sites. also

this reorient I the in the new our sides is So an to opportunities. think which is three. market date, our way primarily development locally, three to value investment and We're lab equals just up is get our free the look office Gateway, Alexandria, together. to this project two we putting one by standpoint, at creating we stronger. which We much is do plus standpoint, one Also from from

We loss income. of have no

for I and again, think So both Properties this is win-win Boston a Alexandria.

the those mentioned and It's plans be about in questions will remarks have in relates working feet. as rights, We – XXX,XXX separate on of and it for is and sites. the my development, some release mentioned your three development been I and total As development over the are to will sites. on Alexandria it’s

point at possibility buildings relates cost. this a answer in is launch one we There prepared questions these that of as So to we're could this year. your to of some not it

So of not of them. them, one all but

more would – I a comments. just just Yes. of add couple clarifying

that three our and buildings, that owns, is lab Alexandria portfolio current owned office amenity building the a an a building building. Alexandria office So

of think office, – we’re as transaction, we've now, Right of marketplace lab the and this build about of conversion to some this we lab, office of of reduced it formation existing so we're the and our some way. to closer day. And going So somewhere XXX% all the in have probably assuming XX% XX% exposure. assets, buildings, lab at we XX% be or end of the do the we're

of hopeful the for sort of – XXXX. developed contemplate to are to and start have and buildings. latter Right feet of by think in be lab there's to plan a that agreed that a gotten now, actually we've will our buildings construction XXX,XXX in building that couple the be pulled get I permits square we're a the on we And going first that parts we all range. that They're we're position will building

And with I are lab plus think view rents or the the and mid-XXs that rents, rents market regards minus. of to our is market in

think try achieve on same X% has we so Alexandria cost, perspective. and And return to I the a

construction new sense so of sort that will you think we can where And be. give a of

helpful. XX-XX? to And would the that's be are just venture. split of any assume Are future So the then terms we of roughly nature that Okay, XX-XX in spend contributions the equal?

more what value contributing. is Alexandria of slightly The we're value is contributing what than the of

with funding venture owning XX-XX. starting will with us more the it until be as of to trued bit off is And a So up little than proceed we all new Alexandria XX%. it's development,

that's Thanks. helpful. Okay,

you're Perella right XXXX. which to city. vacancy prospects hoping in other been well as with being as building about got redevelopments trying Building. I some them think, was some been a for the on the remaining some I the done you've do courted reports for there GM that an leasing expiring prospects the terms for, in lease the leasing in I reports Weinberg, get leasing about rest XXX,XXX But square question are looking know and expirations as just along – upcoming feet now? quarter. the Just – there's of lease there the renewal There've Thanks. update. was in of in to has for well How the early the one last some

want take that do Powers, one. to you John

We number Perella to them. that very We that keep We is on reasons leave. And tried building. worked restacking in they always a hard, for think difficult. the but Yes. leave of I will will think and place

up. of talking I'm we'll But of And are year, that had space don't pretty rolling said, Doug right quarter deals. now space. that and – the to We optimistic. those we end the we couple for a at pretty I as tenants good know make have if a deal

be plus. space think I will building, moving be in the some we also a will with forward amenity which

Thanks everyone.

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

leakage NOI million no dispositions. Is Hey guys. is from there Dominion? that there's loss from JV – in all contribution? increase $XX The Or the

No, That's a just not at number, all, growth that's net a Obviously it's a XXX% right. not number. New Dominion.

Right.

the – you there, So New what what Dominion? have what was timing on depending guys on rate been cap

going that. We're to about closed talk not deal. It's not a

other Okay. guys a absorbed? supply just that do lot I you sooner than what guys be have being is of kicking you And then realistically mean, getting timing accelerated, what of kind And now talked could you too? off are X about new expected. Hudson interest think maybe

one? to that want do John, you answer

Owen. Thanks, on has of the it sides. received, course, based we're that very a three the optimistic tenant on to acre all on it's Yes, The of positive first building, response avenues full and response. building we’ve pretty

So a designed a great that's in now. XXX% designed. We're And building it's site. pretty CDs we've

it tenant we've it's lot well presentations but probably So of a dozen to very and very, we've brokers, made received. been shown a

rolling So the foundation based on still foundation, complete with that the we're is yet. quite not

will forward tenant. we not an anchor go Obviously, without

that are have a tenants stream interested. of We

Some can That would have – the make. date. a that be earliest we lease expiration make could we XX

deals the done have of been tenants those that that with met Some have us. announced, been

of the it. make everyone really like that they but dates want earlier the building, think not them could we I

XXs, later we XXs. some So to with even XXs, also have dates. We're tenants talking some

now So I that think we is want we we've have the decided building to build. what

have We foundations. the

goes and see how continue is just to we we process. next see this go down two a it the be or quarters not forward going quarter and win we construction whether or have so the And if to to just over slow

had Is are land one, know talked that? in one still just about that on site Dallas. last kicking we And you around? previously Where Great. guys I

at time. sites looking not are all We the different

think Virginia And important about continue for so focus we our a to growth. as really Northern

have don't different And anything look assets. so on we that comment at continue we but we specifically, can to

you. Thank Great.

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

your the yards, tenant pay returns I three to off pre-development projects of the talked and versus you just project, right? here that rents the to you starting assume more the You up, it's driven getting which Billerman if for both, talked because you to of returns you Hudson they you those rent I require that had how them? shareholders those how one earn tenants think in want Waltham them thought? of other would about probability the Michael demand Right of about is need your John projects with Manny. the opening much guess in about show to the this the you And rank It’s guess comments, X Doug, part year, need that it or ground? and Back but then I Bay.

Yes.

So question Michael. I in way would answer the the following

XXX conversations said, with engaged engaged intent So we Hudson at with on in also conversations are Boulevard, letter and both as Street signed don't CityPoint. We and XXX of on actively John tenants, actively are we on X anyone tenants have with yet. Dartmouth a

we're don't announcing in I we're something. close So position think where to a

to rents The they are, us is to today where we provide start satisfactory with acceptable are those commensurate say return asking buildings. I more than with that are market would the and an

conversation they currently going XXX a or make tenants push Dartmouth force timing the have you we City. who are that one me from to most if with know the Street the perspective, significant are to a where we think move So want to where is I probably from in expand building the

said three probably likely. of I most that's one so that's And the the

Okay.

This Bryan Koop. is

from and up at And We them the that with development construction Back major ended urban let's completion as side. the Waltham additional about our which at say mentioned. of Hub, look position with leasing, on the that the we five this of thrilled exceeding Bay for standpoint sites years. of X% position development with sites Some with in that in position color recent with well, our because when then on compound late the costs have would delivered more thrilled buildable our pipeline been exposure of at some our numbers, the foot. we We're record be basis be the happy with last sale for sales cycle increases also new was year be over Doug our $XXX Station as last you you of with couldn't couldn't our the these land both

or for overlap Okay. Well, little you of And a Doug. some Can then that you take your of your on discussion And a have the core second markets. in thank you us curtain venture the joint I Koop. when behind also Alexandria, of with other the started? mean sort question, bit Owen lot

Francisco. San You think about holdings in Cambridge or in

philosophies ways management two, greater equal to expanded two and other to to capital plus of that can allocation between do a to you things? have organizations similar those your development, all of than see very that one your have Have conversations one sorts

Yes.

the think investment office conversations Owen. the it with also year and these and for Alexandria equals of initiated win also for initiated its to but only Michael, one reorienting three, income, rationale So plus us, Alexandria. the one lab. we not through I that loss We win reason from I a our was for in last gateway went earlier, No

know. So we as just close you it. got We to initiated

continue with this to other cooperation. dialogue time there's additional ventures to hope them other a or joint and have We have at with but about no strong relationship Alexandria,

holdings to Did them selling your or outright you discuss just holdings you? at selling to all them their

Boston strong that's for constructed. to think outcome was we've market. the Properties preference currently that earlier, all, think our constructed Because mentioned more we as selling Park. as joint shareholders Our a will currently the a for would we value create office. in doing We We it's for I sold the if it better It's do in it's than cash. lab deal shareholders by all venture

Okay. Thanks.

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

you. Great. Thank

managing assets? then JV. construction follow-up you the Can talk managing about to quick Just and who's on going a be the

Alexandria controlled So venture we the a property also will a be be though will receive of from the will the larger and manager, Alexandria be sense, co-developers, will the be we although of jointly structure We Alexandria market. joint governance portion fees. a South will those standpoint. the portion San and has receive and given makes Francisco we fees will in this that the in presence lead think Alexandria

do of you to I And mean, gateway. adds submarket? amenity value an that that your holdings it be what building to now the in joint there's kind in portfolio like your Okay. think in sounds included that's going

is why So this We of Doug, a it we is lot holds did Jamie. the think transaction. which value,

minimis of are saw in quality have that building, building high buildings buildings square a amount advantage office of we and amenities are a that we with is tenants amenities. pretty foot, with square leasing XX,XXX to that the XXX,XXX and regards both office from three building And first-class are almost marketplace. currently lab significant So that de feet Alexandria was perspective

their of much separate looked assets, able and where had So amenity was operating. not we better sort opposed the owned of they truly as untie two it at an an had doing our piece This where building. extra organizations and land opportunity we submarket to us is in off assets and being really – collective we're to where one particular this and and and said, parking other they this we on it own things where an easement had this

the in the all customers together in throw stuff a locations win-win this both all you for today it's So and and future.

just to flows. maybe I back beginning I And All thoughts starting then Owen comments right, on capital some to guess thanks. the at call. out, go your want of the your of

about capital. talked potential in a maybe increase costs, foreign hedging had You

so, here. Just as whether value, business office And in anything just office have if of the opportunistic, the think and may it's you trade been you slow add of kind or to years. kind assets, markets change few a types of that pickup? Do see at last what assets what look you core meaningful

Yes.

so free are from cap have risk interest spread rates the the so So between larger those little rates liquidity. very XXXX. where look transaction volume going I a being I bit like market standpoint. for things the just and healthy, in is space, buildings look far at there's the office But I XXXX a that at think rate the and least cap good solid, rates is not, down, versus numbers, up our are very are at was liquidity

other estate. there countries think in that looking very rates even destination, developed they're our look are though at lower. a of I given world rates low, in and liquidity think for we real as being lot is a the I even is lower is of strong And U.S. – our the most the cap

flows capital here, available yield available here, there's XXXX. there's into I'm optimistic So going and stability for

there higher tech the the of liquidity sectors of private think the capital I science for of terms life markets, and is In market. do level a

in Boston general So or in San they in that LA for I are York for or are think are stronger in New in than buildings Francisco West think I example. competitions

or people about getting on has it Okay. costs. that think When heads office, their around just tone that's the We've pushback to CapEx that to all heard do you at changed be comes going persistent?

a markets, been giving, private robust cap have know But it's every mean in and I or again, rates report more rates the the force. the sticking couple private office certainly on core cap pretty this haven't less the our calls, don't these the as I on on been buildings market quarter, a if changed. quarter, well. market in much. focus a and capital more That's A I I've changed Class for did

always cap and So office that's But the think frankly on all discussed is material had impact I types real I for of think rates. CapEx estate. it's don't for something a

into most sectors be taking markets? than going time into some sectors given expansions And finally, at it global leasing some the to year. to the lot the major business We do still commented heading this business today last better XXXX, Okay. also mostly other of seem would then large Do think a these of tech tech space? conditions spread risks you and just is that of you that's think could you other you? down see, where confidence saw will you Or from of

Yes.

think science industries life be of and continue to and the net absorption. drivers creative that other will tech I

I think businesses growth doing their areas. are legal see They're don't customers, well. the more customers, fine. those in traditional industries, as financial much I

to leasing. to driven upgrade there sure these but substantially. space, think be And going I them, necessarily will So be employers see their I'm many you'll they're lease also expiration seeking not will grow of think I

you. Thank Okay.

Thank you.

Deutsche the from question line comes Bank. of with Johnston Derek next Your

has at it company do the Doug, pace believe New continue everyone. even in runway York some mentioned you potentially Hi, actually City, demands, accelerate? this or you technology and potentially could

New I as the be City question housing looking of the answer would got it I proximity technology way. location York of locating. Derek, and all will that very major the relatively speaking where workers physical the are and to that believe reasonable that a easy has transportation So, attractive. for to affordable has great in the are within for companies kind continue following best system markets prices metropolitan It the companies in

workers. very workforce. technology have a opinion, of important are companies obviously my for in their where to things, expand two are lot educated determinants those they looking college And Plus, the

So I prosper. a will basis, a of a under to on will that companies New York the has be leg grow it, continue do lot believe market long-term and City and where technology

That's for Great it Okay. guys. me.

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

Good gained has role California morning. traction start a a in of to been that's lot topic the Split year.

impact your Just the to on have you're probability share also able thoughts curious if of it the passage on and would your portfolio?

triple on the So be. So way we I'll And "probability talk we we about gross the Bob talk will what to leases. passage." look Pester net and the I'm impact at have that leases let portfolio have about the this of going is

that get you taxes extent along on get the not pushed the In resetting gross along. that the make rolling, can tenants, you're to argument escalation will strong But the to but gross leases. tenants, very lease years and we'll market, well, triple of escalation a the the base with net that's passed to leases, easily

really your your that continue The to you sort probably and question could market, will that other net will And a of "path” portfolio. be, gross strong move those along leases net? to if leases how choose impact with it's

be about How assessments they're to get process? will very stuff be it be how this tax there escalation" will in many very, it to that you? reassessment take going Will How will long the the take? thing basis? much as an is split will the every actually that start on So reassessments they How "annual years to for it? The is will them FLEX. annual three that very do much years unclear it's How all occur? in

would the escalation get to to assuming reassessed it's all said you would of on it to years our for and a probably the us, through. average take was. roll you tenants, were $X.XX able to year tell to would leases, it and continue your lease triple between assuming We $X.XX okay, on to pass your what gross impact our length is net everything And to share somewhere take had so, well had you or demonstrate along If but a eight portfolio. you that

the want to taxing? probability do the you talk about Bob, of split role

Sure.

it at out think I present first I this time, not the properties, this there's owns them commercial showing that jury the a hits house a But raise of think polling taxes, don't pass. but which nine anyone on how it's a better have trying believe to we'll although then think current out this having a that issue doesn't is step property six I going I still and phase is months, second nonstarter turn that the just is on over out, just California, during And to pass. in is play time. to residential, will next for feel that going but the to then

getting any closer, or in And on transaction to guess just have votes a it. in just relative then pricing follow-up, acts I the the ballot? change asset given you activity this just California being seen Got

not. have I

And it is when a assessed sold, market. remember building that to new gets

structure going going a on on odd sale escalations viewing about way I occur, are people a the assessment to assessment the were to would everyone don't material building unless So after basis. the impact think would assume And that was forward have change. the the some there the value

And not that's a change.

of So that's always reassessed into that it's assets. always so way. purchase, guess been They been – I those the – kind in always get on baked

it. Thank very you much. Got

of from Sandler. Goldfarb line Your with the Alexander Piper next question comes

Hey, good morning there. up

from questions So two us.

different that law talk into building able things partner firms in just maybe, don't some So every out versus I like do just that to talk keep construction? on Maybe the it a chose submarket. to to and restocking played Grand to renewal, weren't I – are can them tenants just office, of they if first other you other But Sterling there one, chose the know if place, they're can go major to interested in that in you were and So if you they that of the in particular but don't where Shearman was just know commutes new about things & what major Central. general, that? about they or they there relocating

curious. Just

good quick describe at So one We I'll negotiation. I'll let just make do, John were really Alex. then comment what the and we

And a in be to about…? visceral do buildings. you tenants that But our that. it to of just I John, want reaction so sort to like make as talk

Doug. Thank it. expect you, I appreciate I from nothing you. less would

John?

more a Maybe little I'll specific. Yes. be

I think they were leave. to intending

And one responded and in all we we them them it space of I We've for the leave. I forcing Operating the to we things me think a gave I And that that one have lunch. took building. there and to then but to the them, in Officer they were list kept were and going found he touch Chief list leave. swing with lunch by have with

with their deal center. a across street made move We Citibank conference to to get the –

center. that, pay a back available. So It's that move then conference center, for a to and would conference very hard into rebuild be

So And something Citibank has the do corner. center. downsized that different they as with everyone ready to were knows here in conference

with that with did firm from year. we Citibank. made London made a then a And Shearman use firm sublease to deal allow So for to we it the deal it sublease in to a a

the across center. So conference their to rebuild they go street

some space, did. center, the in they had building these way weren't building based So built they stem it the but they a problems, the – from problems because operational really swing issues were the conference was that

they late get we’re They were and it to we understand an to in comfortable build that them a were way very standpoint happened how that XXXXs, back way, to the fix and MEP all all. from able going

which had they'll things in So a looked point done, that they that decided be years, XX XX on happily that a but alternatives years at at will it they another you list, by much here the this make of a live that they all when XX asset. longer number of high for could their given we of end way when the

up Okay. I that markets. And then political campaign And to second recently Thank fun rhetoric life stuff. of on broker came is, point about you. and talking the science that in was and healthcare was trail one all it the a the the question

it's question the And if is, impact leasing. having life any on science

happen based the starting any taking what is in So thoughts are dial may election full or in legislation? to healthcare all tenants on having bore? you science seeing to that back space rhetoric impact any in their life life on go maybe Or science not continues

been. So you life tenants in view the looking today And for science are. primarily more than that's our because is venue would our market life is science science life our that, enough, assets there on Boston there space where I tell are interestingly ever that greater have

of same if science life space those many are about finding centers because And concerned you warehousing actually, will, they're space they as grow.

down somehow perspective. are should a be of a rhetoric translate on doing stop goes our any So we that or models because the what we to what reaction by seen business going we're not from political visceral have slow stressed into

Thank you.

We sciences. We slow the in seen the investment year. life VC a any down investment number of of haven't record last had also portion

of in to VC I out think $X every it market. the was came one Boston

We pipeline continue to call amount it, to several of of, for a see of tremendous that. then And drugs which a approval, continue have clients also opportunity. up we are see have new our that

any into seen haven't we rhetoric So demand. translate of the

you. Thank

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

Thanks question. for the taking

slowing a in a So you rework all some York just New can maybe One, of maybe other sort bit two in and down and quick markets. ones. here base of just

that thoughts the broader And updated on maybe suites FLEX BXP, for specific thoughts plans thoughts the us makeready in some you give how around evolving? past? on just referenced you've see Just or

Yes.

Okay.

true I'll a make shared some driver think – ending I to operators. of think for demand on the down about has XXXX. new the with whole operators, WeWork I And not comment least BXP. gone tumult the talk but in over business. from Coworking So a there's of general Clearly year. markets of the continue workspace turn been to healthy all only away that's leasing it WeWork, to mean, be by FLEX smaller given maybe of I'll Bryan that also been I last the beginning at the slow

Yes. This is Bryan Koop.

been at look really FLEX our in it's to our you complimentary with If existing almost strategy products. Boston,

with we the example thrilled an putting pre-leased and on as into So have just one had opened we're came how that's Hub Causeway, product The last that it week. podium and we and full And with floor always XXX% out. planned on

And immune hope and to with it's year-end the have Coworking, to then By taking four the greater existing to market nothing in FLEX per FLEX assets the market. on Coworking place a in really noise product is a our a locations, think greater product a do Space and it's but we for it, enterprise, small-to-medium for the complimentary been product a enterprises. has because has se. lot our what's call It's Service small-to-medium not of from, really as I

Yes.

a right look we have if of the for space customer if FLEX – our have do we'll think growth. we future place, segment the we consider product stores. the interesting we grow sake in trying not of to and we're as, at is to But So base right the it

other only to in ilk floor got currently in we're and or a San of November San that Francisco. back we be actually in in a places Francisco similar The processes way it's that under

like maybe Great. very the that’s on seems but and a for interesting. specific a cycle? Coast you are firms sort think specific all your are in And on step you deal whether there the it's other color. the Alexandria where just of definitely with holdings do the Thanks a then back venture with partner or basis of in sort of we opportunity, as East capital private just sort well, joint look as more This kind at of JV given to curious opportunities

Yes.

and of there. a We answer me questions Gateway, you, to now. was specific, it. where the for very shareholders very kind next very So asked unlocked. value owned you potential to going we door, it of joint create specific Alexandria development right at venture about sites assets to what excited I think versus we're these let – this But own that think had it's fact the was the two it's Absolutely lot

So it. did we why that's

Gateway As project. interest the partner joint Platform Park for our We we're overall, in recently ventures using to we, I They the different project. on to made. XX% increasingly a CPP are than Monica XX our it recently joint brought that increasingly acquisition Santa the own less relates portfolio ventures guess, reasons Business in in

will continue to joint the of to The continuing rationale portfolio rationale that for is capital. the So we Gateway different are and extend investment from into very our venture. private inject equity our

quick just one. then Great. And one last

deals you – grade you a – specifics there's terms there's think did. and there referenced rent The obviously I you evolution of don't massive two rents Madison Avenue, lot of markets Fifth deals do thoughts you not churn us resets, sense retail a of where sort submarkets, your be of recently of just we in earlier where – in exposure have Street might two are at but curious give on have and thought the just you and just exposure? the there, where have So been of in your a Maybe I'm sort in a – the

the to John just for So tenants disclose is, are if and I’d what obviously make the some want make to those the then Powers, deals are did. the we're two that But you we answer rents just know specifics paying. you we of going not comments are more, what welcome.

that a The believe would business on the successful tenant as at their refer basis. place I to had rents have we great while long-term Avenue store what is Fifth first what an they that our invested look paid but they've in for conduct remodel, it have they ongoing have as space, fair a that now a we and second, we market not are doing are to

just that's the we're And they and John, that recognize have were are the rents reset Madison years you and five comments? other so a not there's Avenue, where any on – do we reality. then ago

specific have have need, We there important. retail retail the of and still area, dropped What market, any retail market rents the because in at other people store, in we've beverage but don't that's is concentrate towers, amenity which were the obviously the in specific exposures overall alternatives. in food looking a is on some an for that to office our very different done for

Great.

Okay. Thank you.

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

is quarter. self-imposed up if every when billion your good. of all? X.X Wonderful to us. net of bouncing the Wonderful debt X.X, year, maybe net And go question, to maximum million you're Mike One million is on and markets, at a anticipate development assets. What equity think you. EBITDA? XXX XXX debt about XXX to your you're do you sell around EBITDA path I deliver to million X guidance. Thank to Great. needing to to on Life

pretty So EBITDA we've and net over many the years of targeting last between consistent to X.Xx debt X.Xx. been

equity. been do we've without lot So of a properties development a deliver and to able lot raising of

in two, We come pipeline will if have us, number talked about as we And the including are when those those a and in of future of and determine, we opportunities today. things that front in.

all at capital look will are available to We us. the sources of that of

equity where a we we've So mentioned sure we the We inexpensive. our And in we that in debt, and should maintain that can place additional and public with to bring did very very also we and future, make consider is attractive in private which equity, in would be. that we bringing leverage CPP. think

questions up. I on I think space on a your Great. of reason And XX XX on the for second, the and Then Or it. couple just time, time. on going is it taking Hudson a then everything page in development any sup, taking smoothly we missed cleanup that? just a maybe Dock don't work

Hudson. to just the respond I'll X

right have and our we're a forward work and to the So, with move that we made improving land full there or that's in the land development. not that doing position decision commitment now is since

that. are development such would as not our page We on putting it until do we time

going for we that the And we put we're work, the projects. work, have. enabling we doing we the example, land improving that pipeline. development projects we're that that similar prep we're about, handle Platform we we're on to that's forward, XX aren't to very doing these way we until And decide going other But so those talked

Great. Thank you.

you XX? do Dock make comment to on about want John, a

this they're on number on the is a rent fine good and of paying space members side signed all this Everything of They up. built there. They have Yes. two-thirds WeWork space. out about

need part to The quarter, We XX,XXX we get we're after that what key in of the we feet WeWork amenities be are done. a in. there. and should done expect were we of slow That unfortunately that's first and on that the – will more moved members creating amenities complete, they're and

the leasing been side, On it's very slow.

have you about, a but how on out. we we're comes do know, we're a to have proposal trading XX,XXX-foot As optimistic we'll floor, full see which and paper it

you. Thank Great.

comes Your from next Green Street [Operator line with Advisors. the of Ismail Daniel question Instructions]

good you, morning. Thank and

to Tower, is add Prudential to For operator? X internally look then the an or other are for developments going manage observation at like there any this seek and you're And something deck to opportunities Hudson? this

that So observation how Danny, major we made will sense. Prudential decisions, it about operated. haven't exists of doing it a renovation a lot made any the the get and Interestingly on therefore of yet firm Tower deck obviously decisions,

at design we been. an uses. types our that, the where those we work say having Tower, candidates And transportation given the I observation about none but for of assets make thought when just were developing that moment, already of couldn't are would We vertical building Salesforce deck in had the other

in E then on Francisco is Proposition All in March. right. San Thank ballots on you. And the

tenants your timing cause this ballot hearing Assuming from anything it thinking this change And initiative? outside city? of does guys or you passes, you to development on the acquisitions are regarding

So what so Bob, it? initiative do is ballot to you want understands the E everyone explain

fairly aren't outstanding. right Central the SoMa get that's amount It's existing allocation allocation M now. if Todco, delivered of met. affordable space by put in office forth thereby goals is E John it Francisco, to well the a housing measure In housing Elberling. all ballot projects reducing could amount deliveries Proposition still Prop the San of would basically, tie that Yes. case, would the pulling their affordable be And our

as San want or get hearing So it's they're because as in. We're to anything Francisco not their developers a impacting we'd get always elsewhere. in in market up case, far looking tenants San XXX,XXX Francisco And feet front. they our the another develop fees any be been to from desire from the has difficult

anything. So changes I don't it think really

Francisco an impact elsewhere? of you would in phasing this projects think San or accelerated Do

allotment. Only to What accelerate rise on that be been to the phase already going their will M is product, substantially where would the rent approved the should impact continue Central SoMa Prop restrict the of existing it because it's have second supply. projects

in why M in be acceleration works because use and pipeline that, additional don't the think way The a So in that the Prop allocation is currently time, projects I reason Danny, Bob, if get there within is period this would their SoMa two allocation. the you that Central South years. a will are theory your certain of it's

Two years.

the It that so the and goes figure to you a way back out get extent into the allocation, you'd to to it. bank, want use

sense. everyone. Makes Thanks, right. All

time. turn for no speakers it to There questions would closing like further this back I to over remarks. the are at now

for I questions. and of all management's in Thank the That Thank your concludes that Properties. Well, all concludes remarks. interest Okay. all Boston you attention you. think

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