Boston Properties (BXP) 29 Apr 202020 Q1 Earnings call transcript

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

Our speakers will address your questions at the end of the presentation during the question-and-answer session.

At this time, I'd like to turn the conference over to Ms. Investor Boston of VP Buda, Relations, Properties. for Sara go ahead. Please

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

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

At and believes Properties be are can involve expectations call the the Private that this certain conference although which and that are forward-looking the These you on Securities the Litigation expectations not risks meaning of not Reform constitute reasonable known like and statements time, in within assumptions. to Act. We historical inform statements the you this statements based made uncertainties statements during Boston may non-known assurance we'd attained. reflected forward-looking will

Risks mitigate its not on to our pandemic then on the the implied the a Boston and Properties contain were and and there forward-looking cause uncertainties pandemic, pandemic the actions in statements. in impact any COVID-XX differ severity results with from Boston forward-looking does significant and SEC. company's are detailed and of will and to and press tenants. time-to-time by yesterday's release Properties statements to duration risks scope, expressed measures update effects the duty those filing that materially indirect from taken particular related to the direct could containment and or actual In uncertainties of undertake economic the

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

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

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

you, I performed from beat I'm morning and earnings quarter how the dialed the New in explain our York. normally in Sara, well again would our out we as growth our and as good we for expectations estimates at in you Thank to once that of well everyone. first point call, Westchester XXXX. County start

about confident However, we doing focus see that to and impact the and changed state describe, of crisis. coming Properties optimistic be the I'm and market to morning COVID-XX time the our will business, themselves challenges in over the what Despite all the recognized near-term how I'm and a we're pandemic, world in response we the our March, present as future on undoubtedly new of result weather this opportunity future Boston on pursue of the crisis, as will as markets remain Properties and ability about well which both uncertainty, to of current Boston unfolding.

them. The lost The downturns had and million U.S., business more The economic retail COVID-XX is on being course importance downturns been U.S. impact and prepared the future pandemic many in past predict. that economics, COVID-XX and lesson the precipitous and in such surprise. is science, from significant estate to recession a energy, globally least drop making at travel as by the jobs driven of and short-term. difficult activity XX have not was for in difficulty the good on has its took industries sparked by the negative and industry the real the predicting It's always community it different world,

the fight against how science-based this driven economic So downturn is virus. from progress and entirely here? does The answer the by

of can individuals the vaccine, feel a the therapies, the testing to of development fully only cannot return and/or understanding normal virus. a come economy until safe, better Our which danger with of

our road, data the to down state months likely balance extend as and is analyze outbreaks. are decisions either at the with elected the risking lockdown economy further reopen officials they difficult levels the imperfect very and federal health or solutions safety the need faced these With for

So balance The to been the in economically far remote the industry. is successful achieved, through in If for slow work has be resolution But likely the economy over distributed is reducing probably infection process economy so many discovered a challenging be normalcy opened few shut XXXX. strategy medical slowly and up next rate. new is cannot proper until and will months. the achieved

would downside and given likely many operating environment will for pre-pandemic level in macroeconomic wide are science economy difficult and case predict, of a sometime later swiftly rapid factors. XXXX. we upside case elevated And shutdown infection create resultant driven is of lastly, outcome have be the further reset spike Its Properties the scenarios, a economy more solution restructuring to be year. opened A in achievement new below causing to unemployment this XXXX. and range has another which the in in medical These normal Boston

And the fiscal relative on lastly Fed has and the important very as the of health in Treasury U.S. have impressive, with helpful monetary rapid aggressive impact economy, by and and mitigating the of the the banking been as intervention system. stimulus crisis

a CARES Fiscal reduced of ensure lead functioning crisis. so capital the far Fed businesses, the brought stimulus, quickly affected over has individual across small $X rate support by to of The Act spectrum. including has market Treasury industries and to the provided fund measures needed most federal financial significant and through markets trillion zero number the liquidity to

on moving now me lease. markets, level at the So to the the property let impact start

users the renewal cautious need difficult after onset price reluctant new offices. ripe. and or It pandemic as where business capital which of in volumes as is likely leasing of where invest result the determine been probabilities a the very on currently market As today space, leases rents, will have become market are to and very they rents in putting Incremental have past pressure new growth settle slows recessions to reduces the tenants crisis few slowdown expiring more slowed those uncertainty, completed. and will leaders can for economic for some created

be pandemic. healthy by not all science, life The as Further, crisis of markets technology our is and the news such affected the government markets good with the should will impacted less that regions and core equally industries majority outperform. entering were

real thinking pricing are there current the transactions In markets private sales number in office were a particularly in our of valuation. of capital quarter estate, But for relevant and first completed level. of terms Class XXXX core A for about markets these consistent not with buildings

have been delayed financing. closings walked contract have seek March withdrawn reductions on of March, building As deal before sort price stopped to are late agreed have essentially late either sales for offerings buyers most and deposit,

values of property with assets reduced risks flows secured prospect decreased future of rent buyers, the fallen. will lower expectations nervous to likely With have be leasing private market access cash and with and for financing coupled

spreads Public glove. cash could though reduction were We and marker denial the rate undoubtedly very in retrading Low there new provide correction a are the the rates reforecast pandemic are relevance still price flows. of and office limited wide interest early phase push in post-pandemic to due to magnitude provide transaction pricing still in historically being the the sellers potential values severe are the probably guide. cap to

me working all the of return arrangement let weeks, efficient camaraderie to change majority Now Properties and for turning for are and clearly business, us The to a our the to is less the remotely impact though with us six most start of Boston on offices. anxious operations. the last notable half of

goal. been to have We important our operate and business able effectively accomplish

their and Our workforce to buildings have heroes conditions. our remained thank essential COVID-XX our do customers can crisis vigilance the fast throughout I access. and for Boston the property crisis, under Properties organization, want and attitude for open who management need stressful of

most return our to likely and at safety and in work the as next months. they this Our for important planning in time our activity security employees the few health of customers is building

which We best Doug that internal Health Regional cover. have ensuring formed an Security is task force will cross practices,

late March crisis. On underway, and the activity we are before deals pending largely significant Reston There portfolio. our the But the as of disappeared. requirements had close tour continue particularly leasing, to negotiated we many leases new for of

short-term several requirements of and or The lease our rent payment These return cash been in entail portfolio. activity customers abating months retail into for experiencing XXXX for other leasing our later deals extension. generally difficulties in financial rent deferring significant restructuring largely XXXX has

activity government Washington order except by markets all halted been DC. construction our in has Non-essential

opportunities for some for the tenant tenants The coming offset construction project achieved orders or our base delay of month. who Assuming lifted meet the schedule the in But delays delayed greater and are and have halt recognition work to our schedule on cushion This revenue cause in will this of for in planning impact day. our new the is will rent the the couple Washington region. of sufficient customer portfolio we next occupy over from hold several out contingency projects months, side to vacate on still have leaving. delivery tenants DC customers construction building

financial to turbulence Boston Moving market market to credit navigate diversity, the scale, revenue has impact, the the and of storm. access to liquidity stability, current Properties

our in have with we leading vibrant cities quality buildings portfolio that year-end. office in yesterday. our of portfolio X% tenants Further, revenue. April between now of First, U.S. collected high have the the XX% demonstrated And industry portfolio of is the XX% our as and only total most we This office filled roll due very in represent a tenant. rent of by fact of

hotel retail and which parking, blocks service more residential our economically and our will stream. sensitive. revenue and of from The for Mike are more balance be fees a revenue Doug tenant, detailed building providing comes

our account, strong and facility. and in liquidity to over dollar of of access available credit at on funding quarter XXXX our $XXX cash a sheet Our a with is in also billion million $X billion escrow $XXX a very million balance

In the is debt our have unsecured pipeline insights debt available remaining of need, issue not of next rates. unsecured billion at $XXX maturity XXXX. low development million over to years The terms market three fund is we on $X.X coupon next until and our to May also of

million with year which purchased Boston Winter substantial complete the the terms site this asset the Francisco Technology of last $XXX Park in from to of tax investment XXX suffering underlying exchange for intend We lifetime Development Properties Dominion February. San we XXX and new sale and raised Xth a a in In activity, Harrison Street gains. we and

suspended sale of a also given essentially small assets, are sale which, $XXX further raise if of market disposition over negotiating would We additional conditions. net number completed, activities million in proceeds, the

focus of new our buildings at and health to time security. managing preserving is ensure this our terms investments, resources In

limited consideration. new We under have investments

likely would XXXX, will as that that later level. will opportunities in the expect I So crisis create interesting acquisition change pricing reset

help continue formalize to new down capitalize partners to investments relationships private We equity the with road.

building pipeline, be to a pre-leased continue feet, located at strong leased in office investments into total X.X Reston Properties. foot will driver delivered more which development X% projects, at Boston XX% existing billion XX cash currently a service growth million $X.X and square Leidos We XXX,XXX just stands than Our for XXX% in initial XXXX President, quarter a last square yield. to and

are investment material Due with to pandemic, development for projects in we new vertical the [indiscernible]. suspending

As you conditions. two projects know, we are in have to planning XXXX, launch subject to market we significant

Central square in entitlement this first later The year. expect have plan project Xth first the and Sonoma, purchase Harrison is XXX,XXX where phase we site foot the our and for completed to and

will have million San but own the three commitment. commence office interest XX, entitlements, responded a XX% have tenants, We we Jose, X.X and Platform significant plans square to site. a pre-leased a development second development anchor vertical With in without RFPs where potential at from foot phase not

have we'll we get the the phase have partner, completed and preparation we of our in activities once crisis. construction So consultation site we through paused our revisit current work plans with

during have office As Though questioned, is questions, of pandemic. is their urbanization space result a given the one knows on the myself we it no today. be to focus success about speculated needs. spacing much imperative a claimed of their answers office and to future including these well commented the remotely for Further have pandemic. instructive and as future densification as what a and term space know office the final and Several written longer need viral been on leaders being business as to reevaluating point, operating use

near-term I interest capital definitely market discussed office value. the which previously to will Low is impact recession, and adjust rent as biggest The help. rates

less Boston Second, our a dense dense in workstation customers removing to Properties with layout environment. and are will including return work

space. users require some Some a have of and more their these continue to remotely portion of will will work workforce

Third, building modern premium be before. with health will a at healthy never like state-of-the-art security well-managed and

and tools so also Lastly, our an others practice and anecdotally, procedures. work and at collaboration, improved that has cultural of skill this benefits productivity remote working made has It with office using apparent environment. in

form a though summary, correction in widely So market in the has few speculated predicted. arrived,

downturns predicting you we've difficult to be over years As always communicated is prepared. and the you must

pipeline. leases, result liquidity high quality the and long-term Properties recession modest access As for our given pre-leased tenancy, Boston development a is leverage, ready to COVID-XX

Let in Doug me turn it Western over to Mass.

in Owen. morning, Boston. I'm Thanks everybody. Good suburban

the against If smacking you that my it's keeps in Robin hear noise behind me, the study. window

make refill as on I our remarks on I'm comments what context we're leasing decision want our to focus to well buildings our morning but doing the to XXXX. health going withdraw to current our to begin activities this activity, guidance as security few behind a enhance for my our as

quality, outside health The tenants, of Properties employees from Health formed the as our a on are limited in products will experts visitors building signage of first and Internal access industrial and include and that cleaning and water safety Over and of employees, Safety to the is procedures, during comprised and around We activities vertical an separation in hygiene, construction use Force foremost our social providers security. transportation, PPE, Task company, filtration, procedures standard use in janitorial our management of Boston we building. service well designed but service month minds. air ago, as operating not of and

being outside by experts. validated All activities are these of currently

that some may procedures over get relaxed possible It's time. our of

by As caution. health medical we being the and with of abundance acting and experts guided are an

We the will be community. next releasing to week entire our plan over our

pre-COVID-XX. the San leasing had number also a Francisco, at a for a renewal on where quietest occupancy under increased the recapture one and net seasonal was concentrated XXXX. be and We we In our in negotiated is on was to Recognizing like modest quarter typically of release the from first renewals first the just period. activity Boston Walton by year asset. this Leasing perspective, XX% rent our basis, XX% levels, anticipated and was our in quarter ended occupancy late

Avenue expiration, more than a New our at again, Park on XX% an XXX we of X% in leases DC, our In gross forward with from York, basis, late October XXXX. completed negotiated XXXX GSA renewals. lease In were increase on Washington

I interesting little more on think right bit is going a what's really perspective now.

that is There furloughed know implications person is in space the As in we either tours what many space the Owen on their and of or and uncertain. have staff. recession social cleared, are economy organizations utilization planning and no laid-off of are distancing a

In fund. Park during now office month XXX% space spite Avenue lease April, signed at at XXX of of with a we hedge is this, the another The floor XXX leased.

a full tenant a the at banking We Center. Square firm. XX,XXX also lease expansion law extension signed with We square firm completed Time at floor investment Tower and new foot Embarcadero with an

foot June a a late square company square the in we new have XXX,XXX XXX,XXX captured with did completed We in of Town with lease expiration suburban XX-year with and extension technology XXXX space Center and starting Reston And feet a Boston of a contractor. XXXX. in XX-year relocation defense

actively are are We the to that working leases find in progress.

Northern square San XX,XXX paper square in forth, Francisco, square the including on additional Center Leidos portions in Reston in our and our for XX,XXX XXX,XXX XXX,XXX almost backfills feet Town Reston square feet occupant and expiration in back square moving of development. Los feet in an City, significant in York feet New at Angeles and feet leases So is Virginia, of XXX,XXX mix Boston,

XXX,XXX square pause signed across feet refer are on our about LOIs what Separately regions. to COVID-XX as currently of we

discuss So our revenue. let's XXXX

impacts the with in is economic described, to revenues strong us very unknown the We if the have guidance time. as margin. on revenue, able too the of have more of annual is coupled you our variability this believe provide that will importantly, all data judgments you XXXX. And at 'XX, XXXX, make be about know, Owen uncertainty areas certain visibility the that provide tight for COVID-XX created has individual on for but we quarterly to a you forecast base and with that I on and simply

three. disclosure, If you going four first we start parking, categories, those supplemental our hotel, and into services. development out to break on revenues lease, comment management with I'm

the is and the up majority represented lease if office is XX% And little the XX% retail, our category apartments. a at of X% our break bit down revenues that and you that XXXX, In XX% made total. of of further

office asset including bottom-line, in of total JVs. revenue base XX% make So unconsolidated revenues our up our

office on data our for composition I'm of based the April minutes let's use of of a to last So billings segmentation share, you cash that from that focus perspective is few portfolio perspective The portfolio. and going a our this again, cast billings. to office XXXX upon this collections give a month

about things major and kind XX%, make engineering manufacturing government about X.X%, estate of up [ph]. makes legal make are firms about and retail insurance or telecommunications and and companies financial profession education up up and and providers X.X%, firms make accounting about life the science up space real make [X.X%] services X.X%, up other consulting office X.X%, media So other services and that XX.X%, professional companies firms XX%, which technology make X.X% flexible

of So sense revenue is where good perspective. a the from our that's a money coming

from revenues totaled the leases, portfolio of XX.X% essentially ended end billion. more quarter than office the Office occupied of XXXX JVs including first to unconsolidated $X.XXX share our XXXX XXXX. at flat

you office exceptions retail the April manufacturing/retail company. I those category described those gave office with our collections rent leases. baseline all product categories just of collected of for manufacturing/retail. flexible and XXX% in We includes XX% buildings and consumer The our operators space of Owen the to with tenants that

is Jewel that industries sector those So battery manufacturing. ones as are company, those as Taylor, defense and as are Macy's.com, toy and well electric and larger like JAKKS sort Aramis companies to Saucony diverse which the as Pacific, a Clark of category, the

base. broad pretty a it's So

$X.X retail the Our those share that and end quarter. take of manufacturing/retail not at balance of they're accrued at the did oriented grant of businesses tenants in red million the the stood all a

million. it's XX flexible issue share accrued catch are the X.X unpaid rents for short-term stood simply significant clear liquidity those business not not into we'll have of days operator, quarter, paying, but our tenants at up, a space In challenge. more

quarter rent accounts on and cash reserves expect And but from net take our majority have really our not the strong COVID-XX the written bottom impact income April. of many receivable, yet But we identify operations. is, we happening. AR, line and vast the those our can't the really this reserve a have full where reviewed accrued And decisions increased of will we We've set that up balances quarter today. XXXX while we've our our funds shutdown and we businesses additional is over next collected impact we tenants of still rent some in our

repeat to is ongoing want an I is of flow knowing and our average lease lease approximately recognition our spaces book office that we the revenue foundation constructed challenge revenues with leases being Boston are Properties length have the base signed have on X of years. newly One square At of over short-term of of many with on revenues that forecasting XXX,XXX annualized revenue the contractual with cash XXth. and leases. by moment, condition in sell delivered $XX feet million we of sciences office the

for GAAP any are rent revenue. not this We but of booking receiving cash some phase,

it's yet. So "occupied" not

has complete might can revenue could construction will their and on shut have recognition. it authorities been and when asset and those we restart. most clarity in-service tenants mentioned, be down don't How on before and Owen mobilize work and contractors long As and San allow in equipment when will job a we Francisco fully importantly, commence New York Boston local

there. So about $XX an of on uncertainty again, million annualized basis,

assumes deals no current been sell lower from year-end space of is for be earlier, additional I XXX,XXX XXXX leasing have the and level. square in that contribution office feet than the condition. delivered modestly other volumes than this our working no on baseline current to assumed at virtually Our we're revenue Occupancy described

consolidated from annualized that including billion. X fixtures XXXX into of $X.XXX the in 'XX, approximately revenue well months office as service revenue brought contribution were is and contribution contribution rental consolidated share in including Reston, from The properties baseline our JVs

that's higher company's the block sort of our baseline is building for about So XXXX XXXX revenues. X% than

Okay, so side. that's the office

is XX% sit is casual retail technology million street in tenants and with sectors. urban million of institutions, remaining lot breaking our Logically, and up level buildings and annually of more majority After of remainder of the is $XXX for $XXX tenants with of made out retail the exposure telecom restaurants than fast the in that XXX the have retail about with food revenue the and financial This down XXXX. services. we a operations,

technology from after group, [ph] AT&Ts. companies we retail [men's Microsofts, is Apples the the and having the the broken Verizons and out April, of rent its again, banks XX% telecom the In collected all the ] and aka this and

with accrued $XX about we rent So an tenants have rent, of for of collected where current spaces. XX% million the that group those balance retail we of

collections all XX% collected other yesterday. Now if jumps categories, retail you the day between money XX% somewhere to and upon our we add the some back depending more

with of proactively continued these their working get we to new to modifications are lease operation the back normal. tenants when We many ensure on

some in of that leases also We rent receive in the we earned to percentage tenants. We any clock percentage rent performing high expect XXXX. don't have with

parking. Okay, retail next so about is I I revenue, revenue, talked talked then office about

in revenue was parking Total $XXX.X million. XXXX

primary to of May totaled transient at home parking non-existent. hourly, monthly income expect have Consolidated in April we or $XX In and million. parking be XXXX business our revenue. We and closures, orders transient passes two parking components and stay with daily transient

revenues contractual some at parking will are and are Some monthly agreements, investment leases, agreements. our of individual

parking well. transient potentially monthly In with drive the increase slow as a know will choose some seen to or our gradual a build rapid office the short-term, public don't much coincide parking work cancelled agreements We take transportation. if and have up of customers monthly up opposed more occupants we as in as to ramp to

the or is leasing portfolio expected leasing early in we of pace stoppage are commence Our but developments only XXXX across of the XX in and leasing of we we the May. this our up apartment contribution XXXX. additional X% not lease that and Construction hoped million and had in Again hub it 'XX. those lease at to in of revenue. in-person 'XX had house impact leasing contributed total and consolidated portfolio, Skyline occurring that at portfolio the will revenue in from apartments, Oakland Virtual in delay initial new experienced in

operating Finally, leisure It's contributed million we in when travel, And unclear a at income and tourism business in have closed it's and March will XXXX. ramp hotel travel reopen. net will it $XX The in one monthly fully-owned in deficit. of early be up what's hotel XXXX. the that running

will Construction Mike necessary slowed continued health, commitments sites as to and minutes. discuss Boston liquidity and New safety our DC, COVID-XX activities capital few Francisco. it work our say albeit capital due suffice has Greater stoppages But have and Washington significant in development to spend precautions San impacted in intermittent a York, Owen clean said workers. in to with

I up for of for of will XXXX. to where come your our be in think give sense pretty XXXX and the yourselves baseline building on views think estimates you do what again, economic COVID-XX a you well can given impacts as should you you earnings the own so quickly provide you as So the blocks, with with I've choose

put to to Mike Russell is here away. famous Shoes, Mike Medfield, the going at Computer XXXX Tennis Disney College. of The Massachusetts, starring I'm stop in over movie, Wore and take a who Kurt it that as Medfield hand in student call home

Doug. Thanks, Thanks.

Disney with up home, Shaggy time Dog. you're just I spending catching But the while your on really see thought I'm at happy that go you'd to Classics. your

morning, Good everybody.

time. we your families as are all hope really First of safe tough we that and this you truly and experienced healthy

going three to through go topics. I'm morning This

liquidity. prior to our performance, and access Our and changes from guidance balance sheet details more quarter first on our

$X our orders R&M million which strong of approximately was rental lower us parking place from related and a a About $X utility by offset $X.XX expense, had This to quarter the close per reporting by winter of per costing the first was portfolio higher $X share $X.XX The the our than exceeded to lost $X quarter. of about revenues. million Hotel, a million COVID-XX primarily midpoint us to from by to $X.XX greater this FFO milder is and due income million. are impacted share, for $X.XX expenses, our shelter million caused income assumptions per or $X which and compared guidance the share. from Cambridge our budget was in of $X.XX We office lower

Doug did a great profile. job describing revenue our

exposure current consolidated crisis are the first during quarter as the areas XX% parking, retail which revenue primarily first our and for Our hotel, comprised of of this our quarter.

the from is But be can with impact your run help will last impact model, on from rate our you to clear the areas summarize expect get these assist you of views. the change exposure our sense businesses want will quarterly I how a we so will guidance To your what based long on not us is you on What own information quarter. shutdown calculate this last. of the

about revenue. of is Retail X%

Doug a but cash most rent, both. or increase cases our needs by are justifiable As lease tenants there structures, pause described will there have financial portfolio in in of followed rent a segments term with working were are retail alternative be feature actively on that of amendments. There a number

our will those we the We $X be line our to more income. to million GAAP GAAP will income loss revenue But for a the result quarter. cash the modest straight quarterly operations. be per exposure retail on will related impact impact tenants The believe on resume as estimate $X we of near-term million rent

per revenue is remaining totaled $XX million parking today is and Parking where longer X% per or corporate we've mix $XX million The impact. revenue tenant is typically about leases, daily about approximately of impacted of which our of transients, month-to-month heavily this only seen and leases more million quarter. is quarter modest term a $XX

quarterly million is currently the impact $X negative FFOs hotel to closed, versus is our Our approximately assumption. our prior

expiring leases current impact environment new Doug affecting on regard tour of also for the pace the described of that With activity the office space. to leasing, vacant is and

are related In out impact addition, to delays revenue he likely space. are to tenants the who described currently building our construction recognition

million a revenue million construction We assumptions for our a slowdown the of new is reduction expect for This prior and From leasing, year in compared XXXX. of to the pace $XX XXXX. to of $XX full TI delays combined.

one vast we debt our the The to and our interest in venture lower year. of result floating $XXX drop is positive rate in to interest prior The fixed side, million but in million basis share, from majority our floating rate, rates but on corporate being to of should LIBOR $X interest reduced the points million capitalized. $XXX interest month assumption, debt. joint is approximately rate rate reduce expense expense debt, have On where assumptions for our million $XX debt the floating is not approximately expected XX our

accrued may environment or a may These defaults their of of we change encounter economic the we face. rent to include tenants our in business dramatic numbers tenants we not reserves take actual see associated with do the impact the may risk for the due where prospects

Hopefully, provided on a leasing I always fortunate. sheet, and business. level a the mitigate BXP to perspective built strong of would creditworthy appropriate base withstand say provides pre-leasing maintained on We've our on impact Overall, situations. are tenant such of was information we development conservative of and tenant an current to COVID-XX collection, we risk. development the balance

and at and many we the for unknown returning with depth work to provide economic XXXX this time. too uncertainty the Given the believe timing there variables the pace guidance of of recession associated to are prudent

in withdrawing our are on economic future we pandemic. this more the As trajectory XXXX quarters the we develop revisit will result, decision clarity we as of guidance a and

expectation. better over remind up to was our same the in property want which X.X% quarter, property slightly growth also In performance. I trend NOI our you than first of the XXXX, was same our

including the described negative Reston the our XX,XXX square expected in outs known is same square last with and the NOI related quarter. Center, we growth second in COVID-XX Town losses have XXX,XXX GM in turn feet quarter, we at quarter, second As combined to property building. This feet to move

cover is to sheet and want the I balance our strength thing liquidity. our last of The

philosophy, good in sheet a investment our we balance As also disruption fund capital but so a new ready we to to be bad core from forced a in be are market. prepare economic not raise to position to times, in that

credit. of billion billion debt under on our our currently We unsecured fund $XXX $X.X XXXX raised maturities we and to of capital available evidenced, our have of to million investments. debt As development cash future balance our cash and XXXX line refinance put in $X.XX sheet

have sale our the We escrow $XXX in million properties also [indiscernible] of account. XXXX from sitting

liquidity aggregate, exceeds billion. So current $X in our

that another XXXX We're and for And rest $XXX also approximately of our external we the acquisition currently escrow include and Harrison in account. it our Xth the Owen XXXX San with can described million the have million we funding development working that in $XXX land fund to disposition for in raise for million. the expect $XXX on pipeline Francisco that needs

Our we with venture our mortgages joint XXXX representing five to are million have refinance. $XXX share that or maturities extend only debt expect of modest,

liquidity X.X%. have until sizable of unsecured providing throughout $XXX bonds during bond today, next we upon market GAAP rate for treasuries open where issued bond one remained market a the high investment markets is low wide interest lower have million basis while have spreads capital And a under crisis. XXXX. us credit May XX-year into in Our lows this resilient historic we the bond price They mid-XXXX. that from been and near XXX we on The maturity corporates. Based than of When debt X.X% most to the expiring the of has about of pre-crisis XX-year not point has are unsecured grade settled XX-year at could yield XXXs. widened still XXXs points. a the to now The down

in to to and liquidity We the monitor will the market in continue potential layer additional XXXX.

while COVID-XX, diverse long-term with come array economic companies our the to to of reiterate we industry that rents credit office of immune want certainly I are impacts total revenues collections April not an leases mature of in conclusion, XX% and and balance from comprised groups. In clouds providing exceeded out period a ride the and challenging us from opportunistic clients to with investment ready to our access our for these when be strength a to and of comfort liquidity sheet time the clear. capital company remain XX%. ability primarily And

Thank you. completes formal That the open for Operator, Q&A? our line can remarks. you

the first with Your Instructions] Feldman comes Jamie [Operator Bank question line America. of from of

reserves and going and about, could you you pulled you see just the think you Thank forward, all guidance. forward, start we appreciate tenant Great. see going to more detail guess I you bankruptcies out, thoughts. could your as

on long reserves see just that it maybe are that do greater start up kind how of to pick of you your in and before wave watchlist how shouldn't but I think the or say volumes can you bankruptcy on to your do tenants wave Just about list, that really end. make

this Doug. Jamie, is So

quarters there this some that we're see happen. of I the think the to some the to you restructuring in to disruption also it's office that tenants to restructuring for situation. severity think think to to of But going in another that, this hard at use tenants the likely couple a We of particular expect going next space on is understand of whether one people that do we as office of we their our involve way what's major But are us or they described. ongoing currently they able go the using or and of workflows the be using we in it so have but they're space are months locations that is back today, to amount shelter done do may critical not restructuring effectively be they're -- over because it. sanguine everyone going that we to with space expect about and point and although they'll extent their to space I so not some that the tell shelter place

then side? what retail about the And

come Again, I we side where or are of haven't recognize we retail a down be our So is, fast, collected or sit that restaurants terms we And have in service of awful say to going lot that's casual. collected. back. we an that slow and/or would

were areas it's a where doing get crowded those from work organizations a with them not back long and to how difficult that think constructively that think our more ones well. a in are of be puts are situation. it's problem going good thoughtfully getting sure businesses very that trying to are business to perspective And comfortable those being and And locations, for really question and into before so I people the that they to going And make we eating we with more I regards takeout. financial

that to businesses or their not every whether to to to not And companies figure road out operators back. almost longer know forward. it's for want just to they move -- going so they're having "sustainable" decided of them where sort and for indoor, I again, it's with in come conversations constructive those they case very a we we're be But, think going good are going enough be to those

me, the second on term. think gone feel just, And seems Can do you you just more employee? That's has guess, on and helpful. are of too of per tenants dense the longer conversations terms they amount they you initially, far And from come discussions from in will Okay. density, having on color the then, back had like you're it in need that even the here Owen, for I like work commented on pendulum with less what space the just initial layouts? provide home much that

Yes.

So, I my do the Jamie, today. And then question. the in remarks short-term is, questions we there what out focus speculation to long-term I acknowledge there's answers. of that some I there's think some think and way And focus know tried on and

So first, on the densification.

going is our markets we to distancing back Social go even after core in work. to continue

six to have plus minus going So work feet to apart. are employees

office trying our to accomplished. space, or come own to to our have in that at that can how going configure we're distancing to we're even figure workspaces, workers be we're that So going the such how looking and out

going be And, literally just now, both days, I some is But more this they going issues. figuring take rebuild take chairs, again, to are think chairs, early out out will or right to the happening. may it think space, not to take temporary work to cases, figure and return out to space, seen in customers going going out I or they're because they're landlords some customers we've their

know the assuming virus we distancing sensitivity that foot won't we goes They'll as real to be a period. So that's virus and post-pandemic is Longer a into be in six term help. what the important. get always away, the today. vaccine we're My guess

I health anyway. February further And before, greater, six that these that frankly, but think be are think to will be as trend densify going we've were remain. distancing in general, of sliding doubt in foot seeking security that on don't we requirement social I they I everyone's focused sort And will thought from calls where companies of to was said XXXX. but on

and don't know the on about last lots your was question going there's that's think I work what speculation from home have? impact Again, of And we it. to

all I that no think there's we are it. at better doubt

efficiency -- camaraderie it, with They of I to We that value. we the their there's tools, go its all every whom have want understand speak anecdotally, don't also of the the of any back doubt think But I to office. it. miss

is need space don't that the I office for go think going So away. to certainly don't

accomplish. that that's needs you to personal accelerate to But I trend, a be Zoom. can from going travel that home is do for to day one you or next going someone otherwise, home from work to on maybe easier think work if a a reason, it meeting, now If to won't week, do

So I some like opposed that to as wholesale think office demand. there'll be trends changes in

tenants you're early, the It's guess. not thinking how of But it's terms discussions having they're in just about Okay. world. initial really too with yet those my

into Boston the broken out And Well, deal to that also want the space we customers and not at we [ph]. taking customers -- That's we're Properties now. with taking tremendous why are are But [lease] a is having this absolutely number are distances. conversations one that short-term with we that having out know more of having, point.

that. know we So

of are with about "areas amount technology And And collaboration" space clearly Jamie, tenants, our would the to no per that had reducing the we've to is looking thinking question tenants and increase of increasing the there you they're as and what personal conversations of some refer space. technology employee.

own and a issue much there term view My longer is, issue. personal there's short-term a is then

a people less we -- this be the is not longer the you is concern But happening like to there that being think -- masks because that in something get able proximity future. of the their get will issue through could a what in each and believe I particular be wearing it once close think has virus, crisis this realization do for I to created comfortable, is, to back, this prepared other. have term in be I that offices

be problems any I from have we much to so of but recover people know I it. going that want more now, able problems? positioned what impact in okay, way quickly get are I to another don't that we be And meaningful densities kinds a look to one think We say, and will think more these if of to because

Stanley. with And Morgan Vikram your next from question Malhotra is

questions. Thanks do for the of all will better markets for the comments, the back talked sectors And which again, "coordination." to thanks probably one about and just original certain Maybe taking going others. than details

I how and growth, maybe us some it's they hard know were relative kind why I rent color. will think government to on tech of trend, mentioned. comment give

markets a view value on a you Just relative rent from your a and thoughts how on perspective? growth basis today

Yes.

I government either that in the crisis. industry will remarks, like because those heavily science, drivers outlined you depending in I future suggested based life state And Vikram, look them nearly different of do my instructive I But that is to up technology, I this they by I or a think I it enhanced factors a what likely it's Owen. do at suggest industries in region rank on for demand That's my that lot -- are on are remark. each to regions. as think think hard as like that understand and think as not like there impacted been outperform

it's industries, are think are energy, going of are perform heavily like I true. think about going those like be office how impacted. to think and retail those There In also that the instructive I travel, think time. And over to to industries percentages I markets cities more that's that the converse, higher like have lower

to like you'd more [indiscernible] Doug, add?

condition would supply the do I have those to as markets current Yes. you a at from just add that of well. look perspective

recession tight of market less like today be that like real a which are relative and a DC there'll so the impact from Boston Francisco less CBD than And Washington perspective. very estate of and to -- have obviously San markets will an Cambridge,

to companies what has whether the government at invest see mean reaction will look typically forward. demand that to people and And space will been be would infrastructure from a not hand, other to States the be growth. recession. And helpful market going world Washington a going a interesting United DC office during to that on or be as better And On the the job and perspective it'll in from technology there be might life where if you But tell to area. will we that it's is in some question But interestingly and that in Reston, growth. Washington in are tenants get I space inquiries and DC additional and and thinking both requirements, about the in the Silicon science in continue moving to that of about the are quickly. degrees Valley them none -- Boston,

technology-oriented sectors. that time, are also are upon in At economies" industry the like, direction in the industry their in "New tenants that companies there the are the based travel Age food are "Techno" same or in were that industry obviously the other that going

helpful. viewing maybe up thinking bit maybe of of really we And some trajectory then as granular how you on just development sort new And what should That's on as to just -- more well. pipelines, building us prior a we of give kind on you that this. kind maybe you Can given and us can here leads 'XX color be the about were think inquiries, give starts the inquiries. from XXXX the color and about

answer the the I'll me take first question give just second, the you and Owen, Let specifics. then can

would of who significance plus back for Dock because at Reston Brooklyn take today is lease the our which negotiations portions a all Reston So us tenant Mae space" Interestingly, only the space of Fannie where gave Navy of supplemental, we in Mex. is And floors. in of XX, any place couple down development existing in our our are noticed have "available in we was remaining occupancy platforms, Yard. the you've if virtually a that

other XX,XXX only CityPoint have our have two exposure in or floors we that, property, where space. of feet we from square is aside So the

is full than existing Dock committed pipeline development other our XX. So close basically or to

say, to risk. given I crisis, remarks are And we're my three And understandably, then, Vikram, going as speculative that take an I in to Yes. just would as to more much that think reluctant mentioned development forward, just to mention. the add projects there would overlay, I

how we those Jose, put pipeline, XX launching, San in our our projects least two projects that Platform marketplace at before And look on one of Xth on in considering mentioned and at XX you case project call, further. phase and Platform quarter the advancing were last Harrison we we so want when that see to because And first tenant. pause, of either this unfold without the we

We significant first ready plans go, pre-lease. the the market land for and the we Xth to under but in Platform for the the and going to we're wait under entitlement this own buy We -- site are all phase. we're have Harrison, to XX, environment going

Boulevard much York I pre-lease go going say ask that that case. the to project that, about project, we be other we've continues to as on New that because a Hudson that I'm been in hasn't would sure forward. is saying changed The someone's And to And City. significant needed X

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

it relates as I a it's it's how co-working big the to But not a portfolio. to Good in Thanks. guess morning. necessarily I of could you just co-working, first not -- big speak of you and realize maybe some part your could key that guys about that marketplace, the general space the that impact could on come gateway are the market, sort markets. into of thinking in back have the

go to first? want you Owen,

Sure. Yes.

think a location. I sorry, Steve, different we're in

I So this. to going I Doug address or whether know didn't

But a no So economic because, was is debate before this about co-working. there's recession. I look, social environment that how recession, to challenging always not what an would doubt there performed was counter approach required really distancing, co-working certainly think only of recession how crisis co-working none the co-working. the that for well which And of economic about would in a us but thought is withstand

don't recession. this a I the long-term be real a think shared that during industry term and do it's challenged there's there estate I market. That is of So for going in being any a a the place workspace think doubt to said, role

small that small are cuts, a basis. are I want their continue of are think going market flexibility company of enterprise that percentage short-term and companies to individual procure to product. away. will think There customers, don't I to And like to that's go the there space the larger that speed a there on

So are I demand away. going don't go those think drivers to

in and still growth, there office clearly there probably absorption amongst contraction, net think short-term, challenged co-working the But in the foreseeable of it's markets around. not some to for the industry limited the may the and source So consolidation be it's be will operators. that And is I long-term the over sector, the future. for going be a

that new There's fair probably think the some "overall of currently I to probably leases the installation. they to relative of they there very a do know, have that have And operate mothership". are And and And reduce to to. ability it's as amenable space, Steve, a their continuing supply, in no to that to relative LLCs you currently cases question. their it's the number going "leaving" to question not, operators out that configured many is locations as

that be of make put it with it retro the capital functional. it amounts Now, very that doesn't into reasonable can't fitted, mean to

obviously, spaces are from to utility. to or landlords redo have were a constructed make the types to to money whether as But going they not kind decisions the those spend a to want those of different of because they

in of that markets the space some be will will there with we've talked deal that that come I a to from think we past. is that The perspective. news think the that in and major do I will so And about supply good back have that

great, to relative like Boston that and Francisco, so markets total the tight. because In the overall stuff, amount wasn't compared of markets the San market that were

installations a of have had have some larger New obviously is are And some of then, impact. where the have York of that flexibility absorption going there. are City of operators number going the proportion as think the other clearly, markets more to the issue I with to an co-working

to it the by just be of did co-working of, the that, And space think that the in have BXP to would on into market? to flex get Okay. traditional it maybe do as of you you a space, I just intention reconvert guess, up you'd or reconfigure release it sort office product, follow your, into back sort sort and to extent it

exposure I it is where think we get those fact, relatively spaces and spaces on floor sort of of there's a and here I small, and and have in that are in it'll there. where is were position some it back. a little mean, do floor relatively we what the we're we if depend a

what the they adjust going space we as right will are So tell goes way time based that customers looking we'll you for upon and floor the figure not I'm the configuration able that be a I to out want they entirely to new appropriately, like need. sure feel what have what today, and at on we're

configuration would and put just to take these And "selected" into be BXP so the by of we spaces it one got in probably somewhat reluctant and it short-term. back and

just of curious right I I how And or restructuring question levels are just to the of some you're guard. Mike, you thanks mean, about what extent the and laying thinking thinking that -- retailers? the sort restaurants on the that about Okay. sales guess then are the -- you about other to troubled I'm one these of for for leases, talked some And retail operators out for the of of have how thinking terms of on curious the for level? is we you lease reset they just a Or what I'm more are guys And rents? at percentage sort much pace sales you new impact are new retailers are sort recut So the sales these improved to about rent deals? as structuring going flexibility you and forward? just lower them? benefit trying

Yes.

is this Steve, Doug. So

sort think a makes not restaurant to of work are only retailers. that they of Sephora sort of not With or having food conversations or they So BonoBos the we lot we're start sure that of those that conversation regards with of when types having operate service a our with company's operations, we're soft are to overpaying sense. the that making food with any whatever that retailers,

of with feel good are for periods we of paid that into clauses our so start certain we'll types And get to orienting time, back. deals an levels, to expectation percentage should rent

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

guys. Hey

into back cost Just new supply and development, down as allowed here, brought higher these of to curious clearly less thoughts to, the it more just kind demand to a ability space density. circling I'm And of pricing rents. and pack occupancy maybe relates some here people

Harrison and guys just early about of kind think coming just to you as be start of you and and So you how impact to what designing curious potential the Platform or thoughts either a go yield. XX, look that could Xth

early too it's think address to question. that I

where we're I there talking are think as mentioned, there of -- to and responding customers handful RFPs. I places to are a

Xth For Boulevard have we and are that not those kinds major of discussion. two had I'm Harrison, requirements But examples. Hudson in X aware impacts those

impact certainly rents it's seen density. yet. So I less that of suggest haven't to early because are think We affordable less just too that

have this portfolio of I'm your of I specifically, maybe guys would in getting densities don't gone that, then, law figures you if in have these your just firms average And have that Okay. just density kind handy, more of cycle down you knowing libraries anyway. but curious know tenant portfolio, guys rid naturally brought law terms where

are maybe could your impact ultimately you think what kind is on portfolio knowing today? the curious tenants be of Just where

extent are There industries. over that has to to not it So that did down. a different come for I see it we Board very interesting come of we the while people different to expected guess, they study they you may kinds then would in interesting, very to in very density workers, there people the last kinds the And nearly traditional needs. different most workers, down would for levels definition get down would who types and refer our middle actually their same that you are in are, was, two was as the of And has the year. or time, are come think spaces people I is because are to it to, office, are around hard density every space to of that your are for work density arms are is as who day what are there that There to kinds using workers. a "come realization not people it came the who office, different space". in that of when who was of frequently thought And be that refer dynamic surprisingly different

not a Owen how does of which impact home real people as the our assigned actually is working day But a questions is, of space overall density remotely higher built who the talked there people going and/or about giving were terms of are different from will space, well out necessarily but day the room and particular that And to working raised, elbow in way terms to day a is and be who is in more to be so as, wide not issue on earlier, using may density, it to be more manner, office. how open, are expectation it a space some a because open that much the have of people other in will lot basis.

are to future. how relationships understand those very it's work so of the hard And sort to in going

using we numbers to not But spaces on to we a were can a location." that we're viewed and particular significant having spaces COVID-XX people but were prior themselves basis, "office that as tell assigned of frequent that you seeing at those that

I COVID-XX over that in from would before that summarize densification coming COVID-XX, increases this before physical occupancy. saying densification was by was and is likely were saying we

And partially think think be from go direction which physical spread and we're can the focus tools all do by out. they'll facilitated home the other to all using. I work be a actually accelerate, think will that I more the that densification will So get I continue occupancy, on in

just for quick Mike. Then, helpful. one one That's

about a debt, number there. we didn't out As bad think put you really

that happened need cycle. look significant where the crisis, at and going with we on up to tenants thoughts non-accruals Maybe about any your to just that could ratchet GAAP? financial worry this cash Just what versus on accounting

basis tried we distress. potentially for We do really to that see a those tenant-by-tenant guideposts it and industries in on more would provide some remarks, Doug's he thought

on. think for balances came somewhere we XX of up accrued of the focused those in that million kind rent I Doug with areas low

very most go we to part. companies, very, I Doug again, Overall, mean, number something tenants So it's top very through is we we're point, that thinking not and this doesn't long-term early strong, that about. you they're of look creditworthiness mean right? that the at feel have, determine. for going the all mature, to kind at the that good happen, And That that's kind of to overall tried portfolio. very, of about the the

positioned. But, to few whole to Lehman necessarily some expected, numbers look losses was downturn, And well it Brothers, which we the a of I you have downturn, a that you there's a downturn. you at was just like wanted last providing give in And wouldn't of financial mean, the is better we think we're much time. get are you cycle, we community financial certainly kind insight. this closely. credit areas And if overall, that, monitoring But for insight last from different give shape places think that where those was example. I the some the of didn't you I purpose

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

morning. Good Thanks.

Just trying rent $XX the Mike. this office million for that one, to on I'm point, further the through million reconcile million, range on XX that then is $XX you Doug kind sector space the of those his and incremental that to balance went to just observations. that had accrued in went The you office two starting through,

that from basically I have the last separate, because reduction are to slower. likely of quarter's that we they described guidance revenue think the because is $XX you are leasing pace million mean, that of is we I to So $XX million a we gave

space, off. in have space tours have ability spaces to to do kind be tenants may revenue lack coming what's are tenants stuff's expected our no expiring leaving, expectation where pushed be And filled and lot those and is we to or either of on of with So, starting in the expected going going we to XXXX. of a vacant and

it it be still till not may but will leased, think I occur XXXX.

dates they then, wait construction those revenue, a XX-day we perspective, to disruption got that complete of we spaces. XX out. And can Until we've to to until start their have push tenants on we have a TI from

were those So year, of getting and tenants down many of expected the at pushed XXXX. in work complete they're to now end their the

we little point, think are at we're certain accrued is was industry with that on is $XX exposed. million whereas million, $XX item accrued I monitoring that basically the separate balance a bit to more the a said, our as our we So sheet. are sectors this But comfortable really balance where rent that

When out that the there right Thanks. then are now, this development drags thing that down you in the but any maybe earlier, it. pipeline you perhaps length mentioned at got in XX Dock not about exit but way, your look on at road down the fundamentally lasts? any a if an that won't road, restart thing project the Okay, a eventually pipeline everything or this think stoppage like looking will just was for you of got time like how work shape now right long depending and from do on form feel Dock or some could you the and in you be

developments that in marketplaces the have and going with started highly of to in Virginia have place and Boston that we their Maryland the tenants tenant Greater finished are we and to are built marketplaces they the confident pay Northern underway are to their We haven't continue those credits be out Obviously, going in that that the improvement. rent.

change. it to spaces, so it going that is be approach of very own way yes, installation their the Construction, their may they well

use you're building a there be will work. how I'm going the From a they're doesn't a So so improvements learned of and and I sure that to referring out the that entered well be pause space, can From those concerns prepared financial of will with that expect of lessons there But we for to sure developments. have have today review as relative they're would any tomorrow. perspective not as to. how no that for they're feasibility they make other types the into leases work. tenants we financial

great. Okay,

your about was the And of I part think also, just question prospective pipeline.

we're have would the unless described, project such that the would the significant suspending characteristics risk. they investments we described, so I pre-lease, As the get that have same in future quote, been, Doug a pipeline, material

portfolio have described land -- try try do bank to options or significant covered of in we control minimize but our million land land and control lot we that before, through play. XX cash And in Now we've we of that to investment a over all a fee. more as through very cases, not it not

Again, the this this of my So, recession, is I projects through we remain be optimistic is this can guess future. subject through is Bu, the pre-leasing. in at viable, these again, don't one yes, this planning will entitlement And will those I they're work piece not. to projects and tell long-term, and every it. think you, about stage we viable

And might of question you feel I'm just got terms years. the completing XXX will wire like under bridge there wondering, for bit several or that you kind you over of a some Last Okay. much the the little NOI world at buttoned do me, got lingering where that in kicked do like kind issues of assets. famous the you feel nine get past there be that perhaps down Park Or longer? pretty up

the one single be we question leases every And in their of is the of having front spaces their and is have tenants space or TIs. space when the completed single actually us on those will Every of only done. some occupying

booking be that from have So able we revenue rent. recognition perspective, a will the to start

-- many cases are -- actually is will like certain start to now we we Interestingly, rent see done. case to in will cases, in we that prior may to we start when cash see

those we So, issues. years from are an perspective, past two economic

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

Hey, good morning.

So, a said development first, to questions on in specifically response you Doug, question your few Maryland.

guys at as cash leases of they that restructuring expectations one is development within is But, million are rent that's But little if So maybe part to about I and you Marriott XX GM, end Armour. with Bethesda. discussions as a the bit talk know that of headquarters their the lease the you rent comfortable far or, assume of don't could for taking that that of you're paying on in Under aware that, year. current I if are the start accrual. their the

have well, Under last Armour no And right that, obviously expectation we rent -- they're since call. is So, not their with now. quarterly cash not additional any our added conversations there's

And we a commitments. "collection to their live So retailer that and issue". up they expect no will continue thriving be we'll to position a there to is in all fully be

Okay.

credit, you you seems you and that versus confidence through if and At development your in the same fact drew all Mike, you statements. time, guidance, is a walk and you only income guys, walk have lot you in guys it on the your Mike the that line little fund we and spending from development a The second through at variables why your variability more to rescind the the it. credit bit look question of ability LaBelle. to market the chose

is of balance line versus confidence of lot you funding cautious So light in in whereas sheet. collection. outlined needing seeming a rent are downs of COVID, maybe sort very because you on companies just variables a not have more have a lot to balance you guys draw the on your to juxtapose that heavily that of their could sheet And credit, your seem

Because entered I that we said, going think not in from this think, I too continue can capital, as se. think that to Alex, to of balance in of we because much we're doesn't you like feel year, don't about we per periods period sheet ways mean have raise shape like cash to time I great this, a perspective. a raised last capital lot

we the to other and go much liquidity possible event the have all get on to side. whatever So, evaluating happens be thing we're this sure that to be for ready then going as make through as

-- we for be opportunities capital recessionary to improve, a till company parcel whether certain if situations things start after a history minute start in we other we developments hold and of opportunistic. don't recession developments because where but invest lot is there's environment was think a a we those we our there's land ago that development really can you at would about that a look I talk in the recession. history, during starts mean, And or there our

make I available about good feel So that our for sure feel want good we We where think have that. to really access. capital about we are, we really and

with So with that on things. work those pleased us partners we're quite our

This is Doug.

our our shouldn't construe of our any with decision receipt and You with provide to -- not our guidance, abilities discomfort forecast. income, our cash and ability to

to relative month $XX of our they -- with as be lease about numbers. transients tight this when of like construction told deal we're don't that of balance suddenly that and operating space we the renewal we closed $XX In us revenue? And coming was what's accrued start income the on Or the million the the So "a $XX with giving the of following. projects more month under are can we we things or think to parking recognizing going we May April able a to to up had little or quarter would pause things the million, should sort to a would non-COVID-XX are, to that reflection at is And it our went basis year, this environment, to any seven eight thinking range. our on You look people a work. of negligible what bit margin it the a giving numbers or traditional, guidance are balance on, should be when hotel or economic because sheet. the guidance revenue. start is level we pretty a our things dealing go had has or How are next currently consider to we in rent that level." so the be are right? in recognizing -- you were weren't provide, kinds we in not And can with that we when of million completed? we month, on that going and million Those allowed uncertainties increase the happen conversations instead that hotel, with that, this to have versus going many with place associated comfort We're right? relative I $XX And going be

So discrete -- those are two of issues. sort we're

you. Thank Okay.

And I would point. add to Doug's

they're for didn't impact. the drug economically driven, a future the is going They're in excited. for drive rally also new make the gets new they're everyone my I timing driven. therapy news, estimate then thing and science there's and COVID-XX it other to The factors science and There's about but point remarks, to are us work. the economic that markets And that harder was outcome are or to driven and the trying rumors not

of driver the certainly was the decision. that So

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

Thank everyone. you. Hi,

practices reopen? and fully the these Can any increased offset? incur that of systems procedures, and from details including you're expect potentially some share in technology expenses, say, are let's reduce place you putting new and on options to systems what So expenses you to that any G&A to or new

Doug. is this So,

just Let you comments. me give

our So vast to operating be different we air cleaning expenses. much procedures doing are to what are different be showing of and up uses materials going our standard be changes moving and buildings. in processes, the operating around will and buildings and The that of of majority in going accessing to

the screens -- there's at the China it types one area quite relative that like again, not moment, And made airports And haven't they're "new high available. seeing that of lot we're we're with considering that, not we checks thermal doing in because not point effectively not frankly, associated we're of a laying comfortable temperature in looking screenings to the out. having at where are so and those at technology" and you're technology's a things And is on a decisions not the screening. final that and instrument But thermal are tech that.

seen it. CapEx the until thoughtful about right that amount environment our side think making cost operating increases on of sure And concerned not we're possible I cost we of health, to best and work side safety the to satisfied giving we're so we're doing go of So the short-term, income -- have be our in people be not the dollar be about in the will statement, expense will in. really work

also They're you the occupied. held in saving expense question, are buildings because crisis in, less obviously as during suggested your operating a

have tower So less to that tenants just wanted janitorial so expenses down, users certain down.

savings have been there have that related occupancy. So the the lower occurred on some OpEx to

Okay, great. And it can your be a today may levels you that tended to return to will on do looks be it disconnect? late you or, looks XXXX maybe versus in pre-COVID, previous or is out pipeline XXXX still believe comment pushed how to it how demand

say that talk started, handful few you as discussed far activity. about mentioned, As very remarks requirements, when when in the than are assume we're on a and working I new -- you I I of tour leasing. that demand, my crisis between developments Since limited other

that pandemic. leases completing success having work are underway before the We

next scenario going to have think the I unfold volumes is economic to you what over leasing decide for So, year. return, to

return solution medical slow then of kind and there's So three I've months, we solution to the remark, base being my case feel back in people if described of over have safe next of down But, that by think kind sometime a a the couple some where or work some of leasing go year. XXXX. occurred, up. could are we level or there And the to safety think I other next outcomes yes, I slow can speed pre-pandemic that it

financial to that I the incremental doing that that any were additional be in what made was went going not XXXX. assumption And projections was in we over the we leasing

give we're means sort can increasing a on then assumption that to obviously, the what that baseline then, from 'XX and in you And can make that an extent occupancy going XXXX. of just that's the a to But that for you that a today. non-existent number So as leasing activity everything's and Owen postponed, of fact look, going said, is right? is, matter of tour on little physical the There's virtual get to revenue means perspective. relevant bit

But new there be Again, Owen lease expirations in every And that renewals to are in or a those or we're the if a to on marketplace something be moves year year. sure the installation short-term. two are or activity may going lease renew recession, happen And like. to be for very installation. not a as should explorations described, not that I'd a different require just the what rather single that look leasing I'm possible locations. money will three to entirely I'm new many companies going spend say, years or years

itself, So will leasing it to it's how say happen. activity that hard manifest will but

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

Hey, planting looking to something that you when talked need some down seeds their today pre-COVID had few maybe the pricing And reset at I about your to deal sellers happened look over it's setting comments, referring I expectations? potential about and to at and maybe in Manny. topics go here wanted the commented road. also Bilerman a reset Michael that first, Owen you to with acquisitions

GFC, pricing to the to active post go you What aggressive, do the that So purchased. that What the you portfolio And think from today? try are see the need market perspective? you Macklowe transact? about what doing out how building, need you actually So become are goalposts right? to do you clearly see were to GM active and to in a

Yes.

that So as general, usually lot in buildings. certain my types creates, We I in have and going into for that, values would interest in a lower mentioned which reductions do say helpful. reductions very rents recession and we a of rate, in I remarks, is are

interesting likely as So we as this an opportunity I do crisis, that will it's think acquisition identify a result. of a that result

So ago. your six This just be to needs weeks and today settle new established. early. where There's timing the a of period to question market on is started needs that too time -- pricing where

any to market, pursue of making gets sure those leases away. we I So the trying But the going to understand staying simply types in are rate, new we what's something months understand on, think that is things. done, desire whereas our rental

I one think do of economic we will impact we're how be remarks. of have I because in on recovery a know those that's opening on, which the to Michael those of my this drivers described When big scenarios going that which first, it goes.

So and And I leasing think that. prepared some interesting we're activity we understand think clarity for second, they're But transaction activity be to going it be would be other so more on valuation. have some going to maybe some want we to to opportunities we that. helpful want well then new and

to to may pricing, the hit. is your all a do you coming does of in you denominator their to liquidity? way, their already have this, wealth sort the a big stakes where back acting there you existing different answers But obviously, by buy the being that in in capital corrected. out if partners how everything you those effect, highly little your attractive provide How terms from that markets in everything Will distressed that is have of sellers impacted talked tied to a be oil and of in perspective sort other the market sectors of oil at bit taking You getting everything them. pretty Number you known, of opportunities you ventures joint you about, by sovereigns want have is have where venture one the do place see energy once need history because to may are this going act to of and and transpire. they this, not before

investors Yes. can't Look, agree with case too you be wait it will during your their late. your this Look, I I think because be behavior for crisis specific. it's last question is, statement and very to is perfect different what on

to said, have composition their on some As answer even And my oil do driven portfolios. certain appetite is to the will that. the We sovereign there bearing or to don't that are that are know maybe you revenues. by investors their guess to business new change

another part factor in? that performed? What that it investor did think invest that the does that I the of performance? the affect how How is like? portfolio how -- And is, did for further what I investment? is is look appetite What sovereign it. think that's of

we dynamics the market and most for equity remarks, that major the part, still the the private active there my to investing and enthusiasm opportunities in staying their result. going I are of an appreciation to are say interest understanding is mentioned talking for I and market would U.S. level real and As in it in before, investors the estate

So, obviously now. are a not done getting deals lot right of

haven't lot to enthusiasm pursuing to arrive. their demonstrate been investors as there's opportunities certainly and they checks, but this, So from a do interest desire these the writing of -- able in in terms of

the recessionary environment a just And split is longer and by going of term, aspects to into the as the clearly which I both a well appreciate office social second that is, you impacted more And distancing the the it as back topic near fact whole term. utilization.

the And of dynamics that think space you relative focus so that basis, from Boston a office given XXX% anticipate putting I of quality trying that work longer But to part you portfolio is better and management investments wanted really where -- fare the is people this buildings. understand talked there having an and used. high going a should is office perspective, I from home. the about just to your And making, air of experiment your and corporate a don't trial and you've way that perspective, you change understand the on in aside, the be America utilization all to on that through I Properties very in term demand quality wholesale you're have from going

And back normalcy, it we're willingness there that of to remote some to not go have in I levels that would to office think going that more coming locations. XXX%, of could be people out of

footage So social where incremental not having the Again, will square net hiring into same we're level translate of right, per not employee. distancing. post-COVID,

there's and like of take you commute. is care commute time wouldn't to can the can you wholesale productive, because Maybe satellite way the the be I in not maybe a things in childcare more future. the of level office the more offices get time and have employees realize not why -- there and see a change that. of have Just or don't good used we'll then that be cost being willingness have

future. of Yes. in manner in question would the terms about Michael, following thinking your address I the

businesses markets people the First to growing are most are that the are more growing, they where question is, and new going thing they and is -- hire that need that are we industries important space. need there customers are they're their in

think So the I number that driver one. key

crisis. we up before I thought that frankly, what's two, out? over the We thought And occupancies it the believe stopped. Number I but physical build densification densification was were going firmly was the of desertification the

of a think result is the with as frustration our some going some crisis. I even there's direction result and in crisis were before other no the this of environments, that as densification of to customers their go debt doubt a having

that's think a I So change.

you, not being that great better all the in tool. then And And third we colleague? we together talking is or I for think you're home it, with work from the power about, the of also at ability of agree the gotten think understand work location. companies to within it in look, with companies is, And terms I about what what's which groups I understand remote and we've not over question company an are more I postulate. for being really term? working be going it remotely Can the through and you efficient these remotely? manage themselves a over really that answer long questions leaders a group think to you are culture business work organization Can have everyone the Is person as or lead that for they to to by the long-term? build in the

viability So what to is But office questioned, change experiencing. saying change, I'm we're by again, real in office the going not use the not estate I of buildings. and think things of the always things aren't in

say, you what come of safe? planning, come of distance then can on employees in the I a to percentage footprint use your it that assets environment, that when the bring XX% do you social short-term it, foot in back looked impose let's is current six the it XX? percentage distancing in guess only square employees a in amount back current your So the XX? be tenants your of Okay. employee, social at is only the the and basis, today, Where And you for if what workforces that could and just back, per or believe Or construct could with still of right? foot

at dependent some I primarily is are customer it is we've physical that got think individual that highly workspace on is offices because I mean, hard in and a Michael the don't they in. to answer, adjust customers that or person are per less can't And at give there seating you are and in bench question. to square feet others I all. packed have answer So, XXX finite to a that number that in

Okay. Thank you.

which their areas thinking do I do is, all deal the installations seat up? not No, you the installations, are services, necessarily the that with a how provide And contained we're issues are can't set bathrooms, physical I in you how answer. things about. people's Okay. just can is space our the are with ancillary right? you of tell their sort that other customers How where there, sitting, final give

And be so go. I a a And of to they will expect case. abundance with of And going going operating out people I have it people the an are little to figure bit of caution. as it's think sort test would

And put don't lots they so of situations in small they sure that are people congregating in will make enclosed where areas. themselves

are to work particular hour during medical importantly asking situation floor, work limit the people the people coming and/or day, allow if people puts but necessarily people create at hours, the about treatment much elongating and not businesses there to and are all back and extent a time to from operating you concerns that expect all back most will accustomed come not at and possible. get to vaccine safe, so the will at in people necessarily that a better people one who and they where of until, perspective. the healthy of may And where procedures comfortable, are there to that, kinds see again, and/or And I day that in a number there's feel different are to any floor come moving,

take just That's helpful. we the -- from I up it expect cash are, and issuance little quickly And out LaBelle liquidity? you in perspective, of of also a unsecured debt would bit an -- I XXXX build know can side rates sort one if If just a debt timing? large to unsecured so sneak unsecured a bonds where additional the sort about should from from that. non-guidance didn't hand to sense a bit you're offering terms financing your You of tipping a talked have of an you of or doing

almost debt deal know happen. as Michael, before ahead they always to year we're our you with maturities looking we're every

be So get things. bond not. to outcomes mean? any bad capital on this does or no if think is can't we're the What with markets that So, of different to say economic I with news, that. We depending do the you do market? kind to going virus, thinking might year always environment. what's what do different than COVID-XX the respect whether we're those the in it volatility about the raise going about And

the to of of we a out to debt be make not thinking of think time about the year, a in year, half and market the it's us that in starting if character sense. But, first half have of in following maturity what might for about the windows back

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

first of Great. sites want you years that And runway cautious the existing the the maybe to the guys find on reach in on any few land these typically opportunity magnitude development of Or, side development significant Do the in be that whether sort to there'll morning. focus of crisis values? for buildings, a there's of out you decline going on kind Good land emerging more Clearly, this last do you have situations. discounts be they to that thoughts the are decrease stabilize stance that land come things, be didn't in of to mainly this? lengthen more value-add? any throughout think your Thanks. we values as to is potential of

right. think you're I

I there an think is understandably, they a cash negatively building, we than a this the flow. be during get more values may land at price site that used downturn. possibility, attractive that impacted generate downturn a don't it in And identify

directed most something So new which to I made think at I've know, as that in about buildings, the that were more up existing do chasing of been is reluctant we've the remarks opportunities more you cycle market.

So as a switch. yes, could sites will be looking that But well. we be at

targeting? In specific guys markets might that be many you

investment, site the building? Well, What are What the focusing importantly, we perform pipeline that I'd they what we What with is bottom But very the life seller, pursuant as the pre-pandemic, so to have as, think and -- we call the for opportunity have to or have? as done, DC. think specific. more from the I earlier, been are government on insight technology. going maybe that is tend be much we been sciences the And we've opportunities What where whether Boston, opportunity? the that is York we and the is remarks relationship California, New and better up. new drive anything. we those focusing They're deals to Washington and less on industry and primarily development have on my decisions our

of would would after us have dictate to in confidence on interest areas be that more think when that more the we I them probably the cycle would margin. what

project? That's Fannie on talk agreed that rest was you And great. Or Mae the construction some on commitment their maybe Doug. you Just other of how mentioned in met up Was helpful. be on to opened development? just able any optionality? Then that wasn't All maybe activity Can right, were helpful? to some the about milestone you situation mutually that that sort decrease situation? for the there gateway of would given just they color something that that guys

Sure.

project schedule. lease of the number. square Fannie give think So way XX,XXX Mae negotiated they back, And the their that's is right for to the right negotiated feet when of space, I ahead

contractual had And right. so they a

As issues, plus conversations not we're discussion, we'll the all remaining part figure the their of space to another interestingly, space original in in wants lease enough whether we're with then, tenant out that trying have accommodate of or And building. worrying actually And it we're having space in the Mae's needed Fannie who as other of Mae to actually, any opposed types tenants. growth their those space or as both about as in needing if lease. not future they well working Fannie outs the to on

there's right it actually going with now. on of a So things lot positive

Yes.

or was the usually back have of a take as a but that the give the to would The size, ever you for a during the leases the percentage do is, to determine at one a development. point not of obviously I during total to other it's of right but to that -- that they space provide if size Virginia, non-government space. thing deal to when the more not term deal it's their customer It's commitment, state some are development needs just in the uncommon largest you what small do customer of that say uncommon the

add just want to to remarks. Doug's that So,

committed either sense. to they Are have increase your pipeline other to have even decrease And commenced? there the that their is tenant any requirements? No, and Yes. leases optionality maybe either situations where or or signed that space that a makes development you haven't

discussion tenants like just those that negotiated in lots there our upon ordinary And pipeline timeframes. development and deal have notice such in of their feet service in contraction properties, basis. deal are or gets that portfolio a our requirements no of XX leases, course based In rights of square an lease are on business million by

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

have more Good least work morning. tech anticipate not September. portfolio the or deferral? in already seeing industries not at to whether you're all. that [indiscernible] be this of I'm And, abatement earlier, until will media September companies of either it's do number at office A are employees tenants wondering announced coming back requesting if you

than the we're are we actually be in broad all making I try some they're we our So, releases actually and back out up accommodations earlier a tenants them like that and would we to the tenants who things would our very where really can have those markets, other position us question. we going of to of, for In coming have roll types some that filling made broad we have before of a then out. guess give that's expected markets, I'll in buildings telling a are and answer. roll

market a much very is it by determinant. market So

very the constructive of than where customer moment where abatement has regards us talking situation financial a particular to we're the isn't really or a concept deferment at it's office The significant one unique helpful. in challenges tenants, that with be other to and about think for we

back in a I'm stay or if wondering current many just to and How of the the workplace on companies not actually that lot can going norm timeframe. industry becomes them a five month web? six the of

actually that working, continue not revenues they because going to remote business the back they're have operations if basis. to on a Well, they're office and work them allow would and/or working presumably they're to

selling their I'm retail organization or and channel, consumer product substantial would sure they're financial brick Obviously, viability. a their of their aware, amount it's That's it a that people example, not a is I'm media back go for office company But work, that's situation. that So have shouldn't a if revenue to go what a can't they that's strong back impacts a organization to situation. about mortar not they that in doing. a necessarily telling not that different if very

the but lease changes it's leases for you across signed related any that were the COVID-XX the there instance? clauses term, in any April, And Okay. pandemic to signed

problems with of insurance there COVID-XX unlike forward, will associated to-date, this a do mechanism for those leases issues in have that those not seen right will industry So, will and risk be to have what it with occurred. we any will and to-date clauses, not types and addressed expect in not out dealing terrorism, realization the going to figure have we has be get that that

comes Your next Mizuho. the from line question with of Okusanya Omotayo

Good Yes. morning.

closer long. the Just with the a split running may be on not couple elections. given Prop of minds any but about XX people's everything one, call thoughts is that's happening getting the pandemic, to and national that we're This quick anymore, closer roll now

Rob line? on you Pester, are the

California it Yes. it I'm shows we here. don't so per now we're that see I are will passing. seeing taxes, tired The right it polling ballot. increased Yes, will people of the pass that the -- be on not think se

walk other Are then, That's to And ask Got is on the XX% with for I to with the just could ownership? that wanted going you going through to how's you. helpful. consolidate Alexandria accounting the the question going to JV consolidate is, you Alexandria, that, or us work? that

want to an This is accounting we Mike. venture. for as our speak joint Alexandria is, but is what unconsolidated I treat accounting will it don't is,

share it. which is significant might there And share have non-cash noticed, their treat acquiring of because so it of We our assets, that into contribution went that's we'll their XX% of -- was their our gateway right contribution gain a it how XX% pretty treated as properties really you of assets. gain into and for a on a kind that as

So accounted that's for. the transaction is how of kind

question from Jefferies. of line the with comes Peter Abramowitz next Your

to the parking on want how income? for question thank kind ask parking small leases? built How a into I month-to-month What's is the other Hi, the is and income. you. just much breakdown your of much

as much think break you. can I was number down I for hourly gave $XX or it we $XXX parking, transient million said, I and million we And total of So, about XXXX. as a had that's give in

Your next Advisors. from Green question Street the with Daniel of line comes Ismail

you and you. transaction. to hoping that see on can I Other few was update sites MTA status lately thank than the provide a reports if the of immediate on any Great,

you Powers, are still John on?

still the us on how that up and years. they And this holding that seems forward made for a revenue been our to our the would I'm would It be midst deal on, decided that's tax yes. governor, move of in when distributed. of a this mayor couple

So we're we forward there. have a going through unit process whole to but go

project. multi-year a is this So

Okay.

not close still but advanced little So a further?

Advanced will time it further, more yes, multi-years. take

instance? just from environment, opportunities say for then local might Park, Santa you Boston And be at this in driver short rezoning. of under pressure long-term any budgets permitting clearly for the are which a state that, Are a Properties here and Great. the or follow-on Business there Monica

in think opportunities a I think create you're it's lot And I interesting an some could Danny, question. it areas. of right, potentially different

I in all think that the of a the sudden, at went is a words, perhaps that a we've made other headway that situation on. one of project lot them, through of John MTA just

too those with don't it's the disagree might concept. I think but early I to what conjecture be,

question comes the Nick Yulico next of with Your from line Scotiabank.

Thanks.

want your where in are, and basis you a to pickup I portfolio seeing about in real-time any on Just space you're ask sublease sublease markets any in if maybe space?

pickup any organizations we the the Francisco, not the employment some that tour planning has have that where Doug. The immediately upon that, mean, come actionable guessing to based [lot] only created it's market, headcounts, San company put not is this has have that been a there place in space more to were activity," significant and on locations seen moment. and the I it's on I'm of their probably actually seen Nick, some the we thinking COVID-XX, other [ph] need that but on So, space I were quickly an fact impending come subletting to-date. market -- at about there's and space is nothing the no "physical not in situation market because again, there's our quickly some where there's think

Okay, thanks.

there? any latest had that one if I space, to is, update think they you sublease XXX Folsom, thoughts on Macy's Just planning on follow-up any that were at

Yes.

So we and actually on we're we that checked of Folsom Macy's.com Street. there's the space yet" no in at XXX "lease aware

to as decision space again, a location regional that, from a people perspective. market that they pre-COVID-XX put a on those made think to I the different move was

thought will lease be And it they and defend. space to do deal. to and that great on were the will anticipate they that market space whether to Macy's where so that hold ultimately will we what the a going hard get still That's economics for sublet relative what it's

are no like there at questions to time closing remarks? And this continue further you with would

operator. Thank you much very

Our call is pushing two hours.

remarks to us So these my Properties. and Boston everyone minimize for and Thank in going all closing staying I'm minutes for with simply thanking you your interest everyone.

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