Boston Properties (BXP) 28 Apr 212021 Q1 Earnings call transcript

Good morning, and welcome to Boston Properties, First Quarter 2021 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 morning, Thank GAAP The with Boston supplemental supplemental night package, and all In Properties, comparable has financial Form Good furnished press distributed G. on and Reg first and the call. to directly the conference measures accordance welcome you. to measure X-K. most last in earnings quarter release reconciled company were non-GAAP XXXX the

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

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

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

see are and on street, today you, our buildings to activities all XX% and unemployment dropped shops increasing percentage point X.X% we X.X even pre-pandemic in X%, is activity is jobless U.S. as our to virus by course claims reopen as offices XXx first the service from restaurants, travel only in you and team office has growing everyone. last to and in joining remained still in sales of retail over pre-pandemic level. the a are though and economic morning up important Checkpoint and country, tenancy. The U.S. global beginning healthy, recoveries signs year. only created jobs our million is decline BXP cities renewed of has tour vaccination measured rollout. with and of at where air of TSA February which Thank the over Over The transportation continue in is accelerated. is life X.X employment Sarah, good census yes, above building and the up where Weekly levels U.S. quarter. Professional given GDP year on were ago, public March the follow picking surged X.X%.

sectors, pent-up starting is small business, shot likely the data The consumption and monetary health individuals surge and around reopening. infections trajectory daily BXP's stimulus recovery new continue vaccinated cases a This financial to of COVID of sticky federal remain Americans and one vaccine momentum at the positive received vaccinations, While the suggest and have at having XX,XXX bring XX% X office pandemic industry fewer new will for economy the market since the result. to day COVID-XX million all late positive. sparked U.S. fiscal to by given most significant and February, provided accommodative to per least population including the J&J policy reinstatement remained highly

we we depending our established at quarter pandemic feet completed last post October. the track, of week peak last census of volume first on can In city, quarter years. a was year leasing quarter we first the average average. the or the leases XX% of XXX,XXX term first buildings our the achieved had of and weighted longer X.X These XX% square For last in term above of the leasing,

commenced of demonstrated We up net the They a that second have are down the roll XXXX per employers is More tenant versus generation asset quarter forecast space. XX% in-person because year. quarter few other down XX% markets That are from in based lagging very experienced now Google, versus by we and for this XX% currently leases levels. rent FFO share first for changing prior our and were as broadly, largely data planned tenant XX% were mandating exceeded the prior still in Morgan, Facebook, Our in requirements Sachs, for markets Apple charges they JP classes are & rapidly as work. up announced such only the this provided pre-pandemic – our Office others on Amazon, month return and work March disappeared. target many Goldman summer. large to Ernst Young, employers VTS

are in-person we clients of the leasing of with as and headcount. reduced schools a future tipping for is occupiers and key returning in and work. interviews as with success conversations large well our activity requirements. hear to COVID as Labor space forecasts our not Unlike We reduction office, in have vaccination clients, that and high clients, see most Day to the from to key reopening. to seen most levels, completed thriving continue reintroduced We end renewal summer our have the rates, point competitiveness In low with employees we infection not have successfully repeatedly recessions, material

office the year. from XX% assets Now, moving down though quarter quarter of conditions, to were volumes first of there equity last in the private market billion first were XX solid significant

represented The foot, before completed lease the Macy's joint between square Amazon per square building a like XX% is which was in to building building manager attempt the is receive a San pandemic. Pine, leased sold or a developed best buyer. fund to recently to square sold mid-town which deals space, to DC exchange of often for center limited square price leased XXth a the is sale than $X,XXX was rollover an located as and recently conversion. leased Francisco manager related of in rate. for entire its The District undergoing rate. life trying anything better the X.X% square square This $XXX million, substantially sold the Mission currently In converted XXX XXX,XXX pricing, sublease science $XXX asset interest was were a San in building asset to comprises million foot in or a further real-estate several offshore sold billion XXX% and Washington Mae in $XXX the a fund record operator. price a The with cap a including again square The the renovation. XXX,XXX was And XXX% it to office Mid venture by market, There foot may science a cap Assets and XXX,XXX was our per remainder gross on X.X% is Bay by the and cap tenant headquarters. $X,XXX and $X.X foot a Seattle note foot Fannie CDD, Francisco purchased per building. rate. feet and The a at in X.X% majority foot

active up million X of has a science approximately our and with square BXP science in to start X.X current BXP million square new new quarter visibility three approximately Moving received entitlement had square clients, very let's lab science sites business. increase life city Point, growing from life at investment point discussions office with entitlements by million in development of currently Francisco. feet our in and million joint campus primarily activities, feet. and part City feet and X San foot is Gateway XXX We projects Francisco X among Kendall lab development, XXX,XXX the Center namely of South larger our at to strongest X leased square in Commons ground square located IXX. conversion and authorities over life in recently to the future projects, a San We million first and ground up to feet venture local Waltham, Waltham strong U.S., with square for in life-science feet launching redevelopment markets Cambridge, of Cambridge, development

A of as joint projects are lab development we Gateway history our a has square which square our for XXX venture a building, XX% share comprises and the approximately life and square we of in and yield success, of potential Commons into ground-up $XXX new many Francisco part San in Second, own pipeline development will all Street feet a XXX,XXX redevelop Though currently office stabilization lab BXP Winter in projected XXXX are South portion to a speculatively, seeing investment lease the foot, requirements now rich we lab at acquired multiple large X%. of $XXX have proposals being million XXX,XXX foot made science square for asset both A class and tenants. XXX,XXX life and foot science projected our active is of and a three Waltham interest. industry. XXXGateway, is commenced with cash serving markets a

We inventory to execution client well in as our meaningful business. component the and as the skill building have the U.S., life in the make of an relationships land life-sciences and overall strongest more even clusters science

the we projects, XXXX. class will our in approximately the the as and projects project investment $X.X expect in stands will feet top at billion XX,XXX observatory of an and as Net amenity complete, degree feet and When redevelopment spaces. level, to to currently stabilization delivery and XX to Boston we attraction XX% outdoor deliver the be returns are have tower in This our observatory after which pipeline in observatory development viewing fully of BXP these for also the strong million exhibit NYU, well service on feet growth the in X.X million remain and development pipeline spring pipeline, yield, pre-leased XXX in external and Moving as XXX quarter XXXX. Campus. amenity deliver culinary with to projected projected serve aggregate in open after preleased our to later will XXrd to We building, our later square Causeway projects Hue three unique and East as science XXX,XXX our which development is XXrd active the four share. all The a will Verizon, to of featuring XXX three comprising will in square X%. movements, our prudential total balance we aggregate this cash life we approximately maintain world well this development Labor as generate three into square comprised both Boston. investing only with year delivered and decks, into be addition office and is be redevelopment additional track Boston project Day on the of indoor Street adding of Lexington have To to leased $XXX the it significant for

long expect as We of the and as annual these up residential XXX in next X.X% NOI contribute XXrd projects, with to two East well buildings of the over years. growth Street our to three external XXXX, delivered lease

execution speed participant Despite $X and agreed all acquisitions will identified flow the Seattle. to specific office subject of the scale together. actively real-estate provide in the equity markets out. an commit in commit to with large continue each to pursue to partners at core one-third will acquisitions be its to capacity to our billion two we up return, the invest market. the their carve investment of venture pursue in resources, even highly resources sovereign acquisition We opportunities the has with deal in more The the opportunity provides have to We enhance will impact select markets billion discretion. acquisitions agreement in deal including return and financial services BXP believe reached core investors and partnership of our have nimble our remain $X financial and competitive. an to value competitive added investment approximately and enhancement To BXP this us pandemic,

completion We in next of once the partnership, including complete, is will announce the documentation likely month. the the participants,

$XXX the buildings two completed XXX,XXX sale the a The our foot. in totaled XX% Annapolis Seven, remaining price interest we Meade square in Six million, $XX approximately last Moving is feet Market. of gross Maryland Fort and Buildings properties to recently Junction and square of sold which a our for dispositions,

another Letter for in have contract million, of three approximately under sale the sale also Virginia park we stabilize VAXX price under Suburban gross We have $XX of million. Springfield for in buildings business several Intent, and a Of $XXX Buildings our

rising; momentum. we our office requirements XX%; are in BXP asset Leasing pandemic Additional disposition volume $XXX per gross emerging our and revenue are our development. offices with volumes new million. will strength from of thriving; lost have exceed return million is sales and being poised XXXX evaluated We've reopening. believe with collections To launched largely exceed the and COVID-XX is clients conclude, our quarter healthy credit tenant to variable charges disappeared; science not if life $XX

Our even turn further to external strong active in expected it pipeline we've growth. add remain acquisitions is raised growth near to growth confident warchest over both long our for term I deliver and a development Doug. prospects. and new to term I

morning shot in as and late at you Owen. our to I'm environment best try are we everybody. going Good the in that we here Thanks sit it, give April. seeing describing my portfolio operating

building as pretty at monthly basically you when I most quarter a from environment perspective of the So Owen is flat office planning into tenants our XXXX, of think in-person the the said, fourth clearly in as was relaunches, census are the and that was while are daily and to you physical parking, said where quarter you low our XXXX. we for back deep know and it there Owen we at the announcements return in lots half work are their financial level, first of see of still up, as look which approach can or to

when with this to Again, at all space Although do meeting actually for obviously perspective, requests just particularly XX may a user long prime to the level direct on the the yesterday, to give to you which our in we was term to to monthly push tenants I’ll they'll our XX a we in half late up. so successfully But additional [ph], leasing a low things monthly have of an monthly landlord spoke recognize January, our as entire of the and We had that to they spaces, opportunistic away to agree we the market When user over you not shove way are we to center but first our transitioning, their fully example, than we walked a get parking, space, an more ‘XX decide market in furnished and but spaces Mountain when space, can our Silicon Boston Parking California transact. know we when had space. give that locked portion going In XX,XXX their premises, picking hard follow are the had pulled of may to in of in that they examples. reality you our the completed XXX is are They the said And area began that in expectation half broad as then are reports statement and list the an to couple then so for off they portfolio, sublet reoccupying a of by describing in the they find of and space. took volumes sublet the tenant, them. historical negotiate and floor described no market surprises the of sector they foot comes pace, calls leases against actually down some if by added brokerage one a absorption was really what the Valley published and have more market sublet a organizations listing didn't sponsored July. reoccupy, activity I space. sublet that quickly you and that and that space the The still actually are defined by that availability, no the are is entire tenants holds. and sublet around lease, are and sublease, that the shocks. they at executed second View any and two commercial CBD sublet conditions the increased space, whole up surprised, square a modestly Last floors their Leasing quarter, was into dynamics no floor there cost, translated negative which analysts offer respond actually road. relocate refused

of of not what X.X percentages, out JLO with sublet about square a is discomfort the not the tenants. is came it's feet there of when report was it and the I know, ask to un-workable yesterday sublet brought, million saying there you but the a frankly conditions that by the because don't but So I'm City or with accessible York was And user large meaningful downplay space existing a a lot profile. that portion going quite market, term, New sub fact pulled short from space on lessors’ those of market

result. potential will a it's really reopening. impact affect certainly markets to the going work-from-home markets. on more illustrate economics not in I driving some it's dramatic not the This point. hope is the companies that that more to analysis and and those also may exists, and video work. beyond typically that to move the same shutdown on either. obviously as call be even how the to the they going Now employees in and impact in-person organizations are lease This in working markets buildings increase they COVID sublet Owen going backdrop advance. during way, term add to same in is in economy Properties to sublet but as dissipate going are this to the as some from the scheduled Obviously hired as they're though days return work needs, headwind caution facing staff going their are from now but interacting on space only some all the pressure to pricing having homes confronting their all commentary, going through decisions have space said, not following way The of companies are makes delay It's we Boston space short

portfolio three almost office about next and and feet, million in gross $XX.XX rent XXXX, XXXX square the is So foot. $X.X on so years average square rent the our XXXX, average totals about space expiring the expiring per

year approximately So space an in rents some an $X.XX point not square XX% weak decline statement on on the were a pre-pandemic it, to with but $XX rent, a foot or kind what And that about would it's just decline, think so close, or or second quarter if you generation of in as impact the using this a roll is the per rents in get on you that's that and we I'm to a down X.X%. example, portfolio use change and let’s example. of a market square the of you three measure wanted Then was believe and as impact X% is an rent our years, anything, that foot, million example, this $X.X rent a that's positive as conditions. over of lease reference, gross from going

a that that's previous Now started quarter. and deal this signed was to

rents through physically on As remarks, now, how I talk are signed going existing to are where that my go this compare rents. leases about quarter, in-place or that and rents spaces to on I'm we on we those working

So and our about that activity describe for that’s Property think I conditions level to going counter the you're of the I'm to hearing remarks to in weak Boston reports. for macro macro it market my portfolio. it's be going

with start occupancy. let’s our So

XXX points our occupancy down JVs XXX% which or Our includes service in of feet. portfolio basis the XXX,XXX square ended a quarter

from Times space. space discussions back in Taylor recapture we months, was tenants. of it Now we In result revenue were that no doesn't the that from Center to at that their future any occupancy that trying Tower drop other reflect defaulting includes much piece our are [inaudible] of revenue the vacancy dramatic a outlook XX space this provided branch expect by this last This a in office that XX% in & words, at was of in the space increase The given Asana and where in of over quarter is decline. box Square that to the retail was will added that. is Lord revenue Prudential active we that

Colorado a hasn't disappointment, space Monica we so Hub XX,XXX and we have rent. recapture operate. that ceased been extension square we XXX,XXX at on never XX,XXX expand vacancy. on, quarter these, we in at is as the we at going they the Next extension again, back lease one in take negotiating one a could growing executed square are tenant venture, since space foot lease Cinema a Causeway That’s lease was square did another feet but the have Santa to Also which Center, paid an of We quarter, a Arclight yet that joint The the Park. to the foot are departure this officially so Business took they back

don't second, basis, in-service top On I XXX,XXX view in commence have to as today talking sit our not and my to we're is tours, yet so booking actually are is lease square feet that our here signed in negotiations, active occupied fallows included leases However, consider you this linking the of to Unless we of they relative have revenue activity RFPs from it as portfolio, occupied. DC a portfolio. XXXX. to Valley LA of to XXXX our and latter Princeton post-COVID don't the am that. Virginia Waltham, fourth, or so in having Manhattan really Northern don't you CBD the San describe going Midtown Peninsula, CBD. the negotiations begun any Boston, bottom: transactions by Silicon I followed the is is I third, in we have All is West the space Cambridge, half Francisco include

by So company's which of Boston, a revenue. total let’s way third over the in the start represents

represented So five every gross between rent XX,XXX during did CBD and the the totaling of rent quarter in roll Boston a leases case the in starting and we up first XX%. feet XX% square

was leases leasing. XX%. we five than are this over the The have portfolio, we are none we continue leases of Of customers done totaling doubling more cash those XX the of in by portfolio, new square rent of additional completed square quarter footprint. with have and albeit contracting feet. expanding their leases the works, don’t XXX,XXX or on of have those in up we suburban to of XX,XXX foot are way and and In the as much working lots the it’s CBD We available, tenants activity smaller eight a preponderance in

in some Suburban Boston. new and XXX,XXX significant of In Waltham proposals. have in we the have contract, We by XXXX totaling In tenants available than XX,XXX begun gaining but rent. X% will continue We tenants In had leases gross a occupancy have additional and full transactions over to had are feet. negotiating six more XXXX. building the out we we've Street our higher into Waltham, tenant plans new about tenants at BXP had will commenced comparable build in a XX three and in the tour We second activity reposition Life the again making tenant was Point, to beginning haven't in March Park. in-place expansion in yet. announced West totaling the including This science square quarter, space the leases portfolio XXX existing on that for New square feet, some those period early we square the expand portfolio, Street completed physical at to City coming had like XXX to In XXX be more Walton ‘XX. we tours since and in foot be than with the floor during XX,XXX in activity the accelerate. of our quarter year suburban total, York, continues Winter rents demand

Brooklyn. negotiating XX active New a including lease region, second said leases our most and over York feet, XXX,XXX XX at I Now square we're in office full Dock totaling is City four

the a DC have we in negotiation XX,XXX fifth and in the all on feet, Center. we're currently excess tenants In square New Princeton, will April than region its was has for was for off Collective during still two midtown during of Hue of the each pull had another the XX square and of Times leases year, completed market is these their feet and of and XXX,XXX leasing. years eagerly majority negotiating beginning leases our of completed district, to The vacancy Town up. other tenants. are executed active buildings our only four of the the we a in as has this one of proposals tenant City anticipating York the a food XX,XXX expanding the with to our leasing it Street enter Street, space feet. we listed new XXrd large in five active negotiating to Square Activity new When total Dock at in are be at XX, in square of new at feet quarter, of full feet, Met another represent those space included the another half light leases moved later excess opening quarter square more square signed its totally calendar for expansions. Activity Tower. at negotiating and sublet square But to of We an we have portfolio. point feet tenants Culinary and for tenant Square the space Lex also transactions the term Five also lease the leases We XXX,XXX outlets XX,XXX the XXX vacant April, two of at street XXX,XXX office that Reston repopulate. that picking tenant on began are large in and deals

XX,XXX that the current Reston We has that know fact in down in XX to from in I XX,XXX been have note expanding since also rents feet as have to another adjusted the been by years. processing DC last the of to Town square another square leases basically slightly region, flat re-let X% feet Center tenant. X% including In in you X% up. for activity the Reston to by would five picked retail increasing the X.X% rents have the contractually renters

of new have ’XX. restaurants since We November opened now four

outlets Town the higher market. way Pedestrian behind with has food our open are in to office leases and new feet; ’XX. still begun are rest going Center finally We XX,XXX of of levels to it's California in is for although totaling square negotiating allow active. occupancy, reopen they Reston activity

large the We CBD There proposals of XX,XXX tourists in to feet else anywhere second market. for sublet that's tenants has delta a look than high making exploration has grown see small on of been in Center, going sublet any of San and feet The The activity been half But going XX%. sequentially that XXX,XXX to year January lower tenants, from are the street these level quarter particularly our floor the deals the month year markup up characterize month on for at the the absorb a started the available During Francisco, would two begin XX at uncertain have of in Tour number and on I on with half extensions, offering tenants’ renewal. space. portfolio. Francisco This severe plant, square tenants signed in expanding we quarter. XX% tenants settled is affected three decisions. for multi appetite the contracting. San another activity was arbitration full more Folsom. rent CBD to picked completed our about at San quality April. have to in activity under of we has Embarcadero about lease XXX In totaling and Francisco floor XXX have with Gateway, of square or XX% South five to we the space lack pedestrian is the that’s activity and occur to

to In continue be the Francisco space. R&D development responding this and alternate ‘XX XXXX flow when XXX to our a will at in of automotive storage, the of vacates San of users energy, Gateway way battery delivery. and conversion Gateway, early are first see proposals and a View final commence foot begun we out We lab for in other under square XXX we XXX,XXX that dividing, of lab facility South Mountain quarter tenant will service taken second for medical building. looking have constant

we remaining the with go were square negotiation are a for feet square some continue we foot market tenants [inaudible]. the our also on and the to the about outset, for with foot signed COVID Center the space certainly tenants of for renewal square in at those a XX,XXX tech ready We XX. conditions valley floor who's tenant to at new tenant with a and ready XX,XXX that for vacant chasing XXX lease California, we the feet feet potential said timing our space lease square commenced and negotiations tenant we second in at to There at feet the renewal XX,XXX that's have with in market down portfolio. tenants square Colorado discussions have in square match XX,XXX in Colorado delivery the of on Roku We’ve into are roll looking spite Monica today challenging In tenant Santa are as Platform at and going expansion. recaptured new I if to XX,XXX large XXX,XXX expansion Center

the with year may As the earlier staff Santa recall, an expansion Monica late Park. you did at – Business last we

to store of initial our So and performance going or in up, Rents to market There are vary drives as from and same they our flight our portfolio. still markup summarize, may best of it's to buildings dramatically but be portfolio, the income pick embedded a paying occupancy be tenant take Conditions in more our have we ago, better but premium parking see that expanding in away may demand depending are comment, my our decline by the revenue. as less were of true occupancy. as what every tenant well some are our our improved to would recovery will of be the markets. that quality retail tenants in year return submarket, fundamentals will the activity the than one weaker a not value assets, upon market. will There and portfolio are a

turn to me Mike. Let

my to I'm going Doug. quarter in impacted a morning everybody. it very thanks on capital with We Good had busy this markets. Great, debt activity our results. and our morning pieces Great comments the little summary. start

we bonds available coupon had XXX% guided using expiring cash. redeemed our unsecured quarter, $XXX that of million last As we

issued writing-off incurred that, of was expensive In and that $XXX million our XX repay costs. of $X.XX were quarter to proceeds new part X.XX%. due non-cash unsecured of our unsecured another unamortized expire related guidance, or not prior year, $XXX we security. and preferred share addition to green million to charges million attractive We coupon redeemed during million used $X at to term the we equity next par an bonds approximately at loan $XXX of year X.XX% per financing an The

’XX, is early interest at an expiration have rate when a also carries market This New above $X Lexington in of we XXX X.XX%. until York expiring above billion early Avenue $XXX not we XXXX that, of In expiring loan rate City. bond in next an on market mortgage advance X.XX%. of Our have million interest

These The NOI results related a portfolio fee to was our $X.XX to share; for will per activity. the of partially refinancing during incurred our year. deal. comprised per share side, much included the earnings per our mid-point a revenue charge income, The we from of on recognized our in quarter variances of reported of share first are turning lower $X.XX retail cash offset portfolio expenses we So $X.XXX above NOI the delinquent higher rents from the be that the of the several $X.XX $X.XX by guidance rent higher share whose the collections for collected quarter, tenants, XXXX the portion of operating later of share a which drove on per guidance and quarter, And to outperformance per significant revenue FFO $X.XXX range. of non-cash our were of $X.XX basis. being our

we the credit believe we majority charges quarter, vast last us. tenant our are behind As of described

The immaterial were the very charges QX before. redemption, from write-offs we net At for Doug XXXX $X.XX points expected of midpoint, not be expense portfolio the declined which Our sequential income share in to We continue NOI half earnings was by is this also the dividends to recur. clients that paying sensation from as better in basis results occupancy and financing to in termination this our first first sequentially and explained, and quarter. from Partially are preferred quarter improvement $X.XX collections guidance share. office quarter expected and the release per of second per strong. our our consistent in from G&A provided of $X.XX lower the M&As seasonal FFO this project quarter, a drop was from offsetting XXX quarter this, our rent lower but the expected

in We this year, occupancy. points in leases half occupancy XXX,XXX commence occupancy year. modest expect by of this occupancy have of feet described the a Doug the representing of followed square next signed square drop later over to pick yet back that take another XXX XXX,XXX up. feet improvement basis quarter will of

and we not full of providing in the our timing our did for last specific uncertainty guidance, provide ancillary still revenue you streams, While year given call. XXXX we're with framework a

you the models As full for revisit other year, consider. there are your changes to three

the the activities million our first interest impact quarter net year. expense, about increasing a have financing of $X for First, during

loss And have additional revenue Street of that million negative from dispositions has facility, million. rental the taking items $XX a XXXX reduce for life FFO XXX Winter a result we about into $X approximately to which loss the expected lastly, a of million are redevelopment service million $X to of rest Second, aggregate out for share. science of $XXX In by per in NOI. described about expected of Owen these are of or of $X.XX impact the

up $XXX our XXXX, bulk The Waltham West projected in we’ve Avenue. Headquarters of preleased. the Pennsylvania deliveries Next substantial significant Cambridge, Marriott XX% billion two but of in that be rate represents XX% in currently that, $X.X occupancy late of be of income activity is call prelease to and recovery XXXX. XXXX. at future a pipeline run XXX they leased. post period and Looking for earnings Boston and delivery billion to We that earnings This Owen. further Fannie investment deliver in not improvement will square $X for from our our drive X.X development of XXXX will includes leasing improved to collectively in the to share conjunction solid representing This delivering With Reston in investment developments million over of in share, in ahead in full like building is us at to million in will is a X,XXX I with the anticipate these The remaining XXXX, would The Street our growth. contribution XXXX, Google This Street sources turn and made Mae in investment growth. ancillary in for pandemic that that feet Causeway XXX back sets of Volkswagen, investments

Mike. Thanks

here things couple mention. XXXX. Before made we to XXXX report, last week a operations we carbon published those take our is by just we of like Earth and a include neutral we set ESG – to questions, goal I'd important commitments, on there Last several achieve where Day

American initiatives was line companies estate American real the goal only XXXX available In company. this BXP In reduction addition the most program. of office had with a previously BXPs six North ambitious set and in designation targets distinction carbon emissions based one under North with the science

diversity among area business sustainability to that from he's important diversity vendors, and as XX to will milestone to ESG, a we our issues. for all sustainability new by last Properties by committee among mention. sustainability committee, of well earnings Johnston’s also questions. greater in the important there's launched We increasingly he and missed last Peter’s pursuing in And oversight service. recognition Peter And leader internal call the BXP’s input an increase workforce be I an and as of board new retiring you, DC established things proud clients, be of our and Operator, you Peter. level us. of very diversity fairness as our lastly, after community. an board and our been inclusion Washington lastly supporting next for all community, other outstanding our consistent years Thank in capital year Boston want greatly mission an providers much and of our and leader programs with we're as will industry This one employees. then of ready month its

the comes of question line Goldfarb Alexander Sandler. first from with Your Piper Instructions] [Operator

then changes last the for question, you planned. sort I just guess guys incremental guidance to the when the [ph] you have you Mike, and suggest took second the unofficial Hey, this going of of negative that. an then DNA XXX that of just rate know good That run quarter made morning. talked what excited and would half about we’re the in with about very XXXX’s you outlined the is you $X.XX but with year, of sort to up pick

we where may sort impact or this some XXX thinking should other end type that year things there up? about be So XXX-ish is that will now is where number of

fact, I not of was guidance, in this and pay bond happened new because So, our was have, these described because that the quarter the sale was that that didn't did that are mean the project the these from we but new that the prior out things which reason that we we then I $X.XX bond that larger of assets.

yes, FFO So describe year. later those want this I drops for to

expect XX% look rollover think schedule, does for rollover Now, if a some you later will we’ve to that pick and in occupancy year that you I sitting our the given you're year, for show main it QX is in have going quarter the and we second guidance we up and at to in of the just if about further in at QX. drop – have QX, look

rollover had QX number. have I that so square the and and some occupancy as be somewhere that we XX% And was very occupy between QX of to this half and we year back feet the to so of said, by we to part signed end light then that’s would the So year, XX%. going revenue pick activity, XXX,XXX in exposure, the also this expect of do occupancy that expect up and leasing in year have from

start in So parking to from to combination coming half of occupancy year the through QX the back QX, the of from also some our we is improvement a improvement improve. and expect

talked they'll Doug to couple we see revenue be shoots of helpful. in starting that later that And we're sort about, you provided As development a mentioned XXX of Causeway parking, the I deliveries with have year. the then green know some and the it,

the half. pick-up would that in So those the are things back

Okay.

sounds that street upper could we're on of be sort sort an recovery $X.XX you're [ph], still hoping now, a XXX’s, deposits mentally etc. for it. that negative of you like probably It’s positive how in in Mike, So ancillary right about mentioned XXX. the It the the maybe thinking that

we’re half we the about have. good we're feel there as you if are street going that the think of – about I to know be the in sales to improve kind Yeah, second should of ability but the already thinking year, it

from be quarter. what So I last down it's you to told going

Okay.

of remarks. ease there is commuting. Grand mention and And the The lot in oh! around question the didn't especially interest of Central, inside prepared you site your more seems the second Certainly – access MTA the a be with coming to

are others You as could discussions, anchoring taking you in two will just anchor – be how Hyatt after, XXX whatever on if got to people numbers site project, cancel. about give got Maybe your tenant an know then potentially thinking guys we one projects. there try like of your Park, tenants that or the how obviously update you probably you that one to know those the

Powers, line? John the are you on

I’m the on line Owen.

say years couple a five will process. very how so site. out. know than or terrific through it have to with entering loop, the than years let a four is finishing was we me NGA and of the go It's about excited First, don't a it’s a site, now in a JP better sight now come that we're Morgan it'll ago We new there. We're it be better site

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great, Okay, you. thank

Yup.

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

everyone. morning Good Thanks.

the us wanted on the quarter the give So then the effective less rents you I basis And us appreciate you you net a feel the for rent number also see I increase for the just down all seeing give different leases. would the a are to a for rents. and the net how continuing for the that on leases commentary feel quarter. face what be effective could in if know signed, maybe could just executed blended there rents gross if not is was, here signed so number on than

I The mean up numbers that X% I XX%. I were something there that up don't up. my were were disposal I and have described information they at were described So here. obviously that Nick, rental that are that some

or free that would on more seen building that none the number's we've more rent we the With significant leases we we've changes This were but yet, up obviously transactions quarter much of be to cost hasn't a TI’s. been say have good. there so the which spew were of been to space on way TI working X%, space, in net to that there had of space, executed more in XX% in building that is a I the been the effective, going that particularly either up. side lot regards pickup happened we have so pre-COVID,

results ago on basis So really we impacted are a don't where are months has of relative that think showing today. our from I to where sort nine

question second the is plans. topic unassigned My on seating thanks. Okay, of

but having in not space We but moving some space is employees. City have now that – New desk or we’ve seen your because York per to got increasingly per market our best pretty seating unassigned portfolio, – we right, some examples on employee plans maybe sure going are tenants up, going for down, we’ll be

the guess firm been I can kind know for are but mature of tech so expanding a in wondering, have who and it’s and would only past, seating. I'm firm expanding smaller And in this for but of side be you the as downsizing, it also seen wrong is the a not

this topic. you're you on thoughts of you examples if wondering, So any you. what know know Thank your in are I your seeing I'm portfolio guess this,

comment quick that. So, let a just me give on

the sector all, and financial the space. areas, services their and of okay. to management first of is I are they those asset offices workstation they side, and the particularly sharing not making expanding the nobody's everyone a on to and smaller professional are tenants So getting in Most larger are utilizing any our anything, tenants perimeter workstation portfolio of in way whole building are our just they changes in got smaller host our

I the people a significant who So whole of the daughter put Boston and that are mandate there anticipating you're was, and of working I in from going not there's sector. us be is of work a that there the we're is and – The prepared press space York see. our larger are area, who their obviously a company New you that have home. some had transaction volume tenant Waltham to not basically City We terms lives you're they hoteling to to of you're a rest workstation who and number days on a square release ago out they in tech if that have market side, for with different a workstation component very we're know to working XX,XXX – in spectrum per think in the couple describe putting of said, in week, a that is some and getting with perspective. a of you're work of not conversation them technology larger right. the country companies and across and had have the he'll permanent the to organization have Owen a going every feet for tenants person took weeks results provided a a single in in going X

what to add just would I Doug said. Yeah,

of got those then desk think two-thirds benefit, trade fixed which surveys – know of but surveys workstation lot issues the for know, I I at notably a fixed sharing that they by a uncomfortable. custom their trying would the makes around you've those a most accommodate workstations, were Gendler and certainly you more and and if where COVID You this XX% workforce flexibility, know employers [ph] to of work includes look wanted around done, said are you said preferences And not so. surveys some a that they a of

that, can't some of see that a not of we’re look, be Nick tell So sure to going I'm you I not activity. torrent going but to it's

you. Thank

John Can I just make here? comment a Powers.

Yeah.

million almost plans those construction. tenants during while feet COVID were order to in by has to York, pre-COVID and about under New was can to one made tell their changes in lot any a X not have of they in a single related space his permit and COVID adjust not heard our portfolio this, and there about I've under any a square a of change this you, construction we tenant make pulled but I lot discussions building to

hear It of about. this think and lot to I takes see. is talking that capital of a people So the I make a lot adjustments wait

Thank you.

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

bridge XQ. through morning. from and to you're good you couple to piece when together I wanted try going Mike, things a talked of XQ the through and Thanks, just about guidance

cash guys but of about of occupancy talked occupancy. all You that was paying not being down, sort

I maybe out of collected you moving into being then the just about It like rents might and I for QX move one-time as that to in sounds So kind those quarter. talked have we so was into to been about what’s trying XXXX rent. know kind you loss wanted up, try and collected, background just two revenue figure think a pick QX being the of next

in would the quarter what termination income some for than be. about it more with that us termination We expect both we don't that's agree I retail for And $X.X was we some Steve you of more a rent million repeat. we also first quarter, our so normally the income the the had had delinquency was first quarter that one-time. clients got paying in and that

last know of quarter you and was, the because lost in some the lease I of rollover again So occupancy have think expect we but more half we quarter, non-rent it this coming. that then first with about that half year, we paying some to occupancy

from G&A quarter-to-quarter know and quarter I So seasonal. of $X.XX so about or income, termination NOI couple that. think then a know portfolio the of It's you think you you kind that, I positives got of if are the And negative. $X.XX and – for then the you've cents of that's you amount are the probably lower know there's a obviously mean

dividend is the the were financing and about $X.XX. you know preferred charges $X.XXX know You only

kind we’re activity we've have exposure up, some and the we’re second be think for really, bottom some our to coming and quarters we and overall signed where sequentially So on and two renewals got of I leases quarter really last the on. again that's working rollover other the do should and slows then

is a at point. about lot for that that we’re on. XXXX honestly Doug This working So talked this of activity

public peers, Got it, of for you that of thanks. about And bit far the the think but did observatory, Obviously load. but thought visitors sort then from out, how other as I structure you one about about know that and of your underwriting you revenue and we if know understanding it's think think little the you of guys did you had a guys about and expense you some observatories how exposure the of kind know? expense the

Doug. Go ahead,

we people it's obviously estimate, can We The question projection. right. that this or so very your is into ramp and New don't have a we up creating Trail, Boston, point in have to goes through were but lot this visitors time to that's and York, flow thing, might six the three we at upon outside going kind XXX New And we at an Prudential that degree expect that Freedom entry. volumes, City, people a not New unique the you of destinations an long took and is, top price Park, able this to Duck a what The be be the load Fine that point we're year lower weather of Cambridge, think price first amazing New place. the months we up. to Steve, conservative expense depending lot start in Arts we going Museum, The of point be York like than out positive a visitors productive the the visitation It's be a you're observatory outdoor going will we to on cash look offering we Boston days relative the I in of a answer to kind push long And Fenway and mind capacity where in Tours, point obviously ramp and of the Science XXX of have in York Museum as experience a a to, Bay to Back is The know we certain City, to where or we and is, get experience at don't there's do Boston a cold of we So the be there to put would have on and four the experienced to, would have you harbor, you to a an down don't that have say it's relative very going of but in up a going range they Tower, a and number to experience a the thought I we triangulated that on Aquarium, opportunity city have thing and the and it’s market view of a I mean the we would in that months. of as England think in will people and dedicated in to got that as we is we and you get looking

is Koop. Bryan This

observatories things additional for advice use went were that. the operate that world, Some their it into service on as throughout are we that consultants acting so us, several providers

observatories the Prudential our from many that doing But to addition well. historic daily excited able this. and mix what really our add through one we in historic we at as know city threw years traffic Hancock we I observatory, met officials was we same Boston, of support to there state they capture the Tower, we us and of Center a want with them at in at what the may on from this city at the were the we're the mayor peak times numbers which counts had may there time. took We and from be ago, and week We two provide last the had of also just two time old observatories those plus were Boston. about numbers what And in had numbers

of or as just expect follow-up, I quick return this double guys do a good? not guess capital on you digit maybe to be that a kind quite

going a have gets digits into revenue opportunity starts if there, it it that traffic company. single for couple hope and the and I could in thing would low of going for goes net you the to over get, capital and double know hope income we're make we're from that years but obviously to the digit we a substantial investment get out it to be we some and the

Got That’s it it, me. thanks. from

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

that know conversations you signed tour up. just get have you actually other the in personal leases, sort just moving open yet? you Just that's up, is an within brokers, is of dipped have about and activity what tour with that this hasn't commentary activity Is the in activity been house tenants you're that home that fruitful going street, it's even occupancies more thinking to tour changing kind result not potentially it it's your and a tour space just are haven't their and of exploring, there's activities why landlords and and your there – that market if and of or the like you come

pretty it okay. were So the to when wanted wave, we is January, of I you was just which sort into January talking in following you we – heavily the were wanted ground think in way, I last to COVID I XX,

around. are from relative and XX leases know are much you It it that days we days worst of to get for to there’s we how are So right, of takes time probably process. viruses signed, sort the a of away, out XX

should you So published relative of what do shouldn't was activity just be the any quarter. connect no that's what the saw than things. It by there there the why – we have to I time first said expectation brokerage wasn't higher houses, in to been because

their lot upgrade to tried activity now smaller that their I to expanding looking side, and on of of are and was amounts describe tenants change the premises. which then that grew We tenants facilities seeing a are significant

is demand right. of musical those chairs there's with generators, absolutely that true associated it Now kinds

to and feet be got you with XX,XXX we’re it square absorption is that new the in a at as the we're particularly question market demand to growth West feet, There you smaller of can't and if we're additional the signs, be XX,XXX square I what building not but positive titans. older lease place California smaller going growth scale few starting today, from we’re large, and other an no tours Coast it a starting with to square in with of of feet. in we tenants. technology of tell incremental incremental some is and XX,XXX move that's with might refer some from said, overall markets large starting there smaller a Somebody's companies. start might expirations And tech I and they translate into lot building, as and some into of seeing growth

a don't how delay going of absorption to talked, and and that were, utilizing their going people to goes from mesh how and human comments be environment going off and understand positive space I to incremental a my there’s their and are necessarily positive be relative think to to a to the up together. see growth, picking lot lot a space there’s you're see going on coming be it while I physical I I going out to as two experimentation figuring they activity. those from and capital Owen this you’re think you're but more sublet think see things market. absorption But lot going of they

just significance looking these, one that perspective definitive the one five the significant we of is talked last, think going, get footage [ph] it know might etc., square of over just the six Boston, what of you of to be talking whether all them they These quality the really get think they about let’s very the that's homes in tour where these of descriptive each example to no quality houses. ago, but of may can't this there. requirements. months, of interesting kind specific the information what a and takes its of the taking a and say client just what that broker, had and around at Boston, it out assignments, what I need have tours look are it’s of kind from very be one are we've get of other six When let's and and specific or tours open out You of to what for months say about, been you terms of on at things are they're coordinate, out representative, of call you're

you’d That's valuations want have environment know at long on that but time. give election buy. details think of the lockdown you Great, the ventures and leases more I appreciate more said I sort the would acquisition month, buy, general, about what that. a And I thinking us been the a but have assets had Owen, in maybe about to which southern then not transacted would you sort of amount of for sovereigns those for

environment So trading you're type stock. have how that with been the a in more them, and having Is those right between together sort is to value-add of it tie targeting types JV valuation those be do now yeah. of you that a this with pools forming now, assets conversations the right two we going

low going going estate company; to Manny, value. cap this not our to at going property a to asset want create We're core to – we're skills we leased to rates, major like real be we're be sovereign goal. targeting or use We're not that up, re-imagined, also groups, that's eventually co-investor assets be going and our opportunities. be will these to a there be targeting two simply and plans to need and forecasts that repositioned our

quarters, think in the types those, I for up of and of because the are there's growing. previous mentioned lease As happening is bid I've things rents market discussion in pipeline deal that a I value like not and and those merge. deals do assets, about of and can say, the things will core ask added our liquidity that the true of it are the is most most flow, more there's

We are looking these of at today. more deals

going we're and it, market. You a lot year. want these for now kinds on sell that of of to over are of COVID been the it owners of whatever There to for more reason assets a know has seeing just come

two. So or definitely you narrow month our last elevated those they the deals, bid if see in know pipeline are will on but we'll is asking the

going an equity billion of levers be clarify, this of of and Just or total to it’s size equity oh! And be to $X that too about we big talked then and venture would haven’t that. has the too total

XX% fund. $X think is the we’ll initial it carry it that buy, have goes to the it probably be investors just level not venture aside and on are it's just for committed billion a The capital at it's if but I Yeah, that but could the property leverage allocation investment the venture. bigger, we well, for anticipated set capital these the whatever and by be will the investment do

Great! Thanks very much.

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

morning. good and you Thank Great!

as you changed? your tenants their providers So, and get think that the or providers co-working fit know flexible of forward. or and needs coming will think will latest going do start types about I wanted thoughts to types across their you to markets, space those plans users How those of has back space and into

think be will Jamie, think going shared I forward. there demand product I for workspace

it. demand there'll and market large product space think flexible I of the individual a back. percentage space, of will of do basis pay occupiers first of think a be that you as many out demand, for procure think premium think well know I in well plenty the a be step will on this that want like and and small as demand, companies but company the come by ourselves, think other small I I be to their retelling there'll as will created and will the There's I landlords a WeWork

CNW that their have Hannah Jamie happening, with and which JLL say IGW, operator or working I'd CBRE there’s another you You is arrangement Nootel, is group, flexible with industrious. a, is X.X Newmark with know realize working is

being the wholesale of to relative offering So leasing as a a there opposed retail. transaction of in theory where wholesale retail seems be to someone composition and is to space taking rents, and service trying the to where a change more it in you're to arbitrage it

be out some these operators market is figure there that and So they will better to and to are to presumably ways going change, the have landlords space, that gotten achieve to work with occupancy.

in those it operators and because see the those to margin happens. obviously and I people and of of signed you and had order is, to we’ll will change be operators it can think make going the to how of work, are I transactions the the what think answer were wish the pay we tight being that really I that densities degree the are in, give economics users the how question, to by – of necessary the nature some the it many to premium know what packing tenants the the that and profitable are interesting

role posed top Bryan tech, Doug, to our law he this hosted that our a said future meeting co-working in management co-working role the user firms, tenants; property space seminar Every is in with Ray. does from directly that’s your does and point, affirmatively a play one group. single needs? Hey and future four a have that their question, needs services, space in the professional

you. Thank

or So just might of BXP tenants do you a you compete types think have perspective, those to… tenants, maybe from think flexibility portfolio do have structures larger more on grow you you to want the know tenants to that for

the following. Well, I I just would think say –

I you us hearing is what demand are expect the think we increase. from

because other flexible. that’s of its I a that you got the at the not full space guided, the thing you moment, think lot

and tenants So a lot of the occupancy the is quite low. left

out is landlords to step themselves. refilling the either first be that the or all the just own inventory the going own So flexible that's operators market of in

to Are expensive that’s all touching gets the sense full, what that's this going of it, these and makes such once okay, more be think I in to ahead that's going I think supply to the on as that economics filled question existing years be build need interesting answered to the the of build-out of was up. question once the business then all it is which Doug do happens? and to

And OT is this – Ray again.

Boston which fight vast our majority our our to great a We the portfolio, the building. on best co-working really markets, because seeing in experiences is co-working quality properties the of are in for

So for their good in by to go options again that's there may going the maybe more -- wayside, less abrogate the for attractive they're and us. co-working that and best things clients

little the but Platform thinking and how about you a seeing Dock what's Alright, bit obviously both those XX then more you can out, for I is larger, as great, And or mentioned had more about XX XX longer changed talk know you are color. assets interest. platform you activity? thanks know for

asking have there people There are we of lease negotiating more more who I today. it look for is There XXX We weren’t days tenants and Dock hibernation the ago XX. negotiating out just talking earlier lease proposals, as gotten demand at to are Owen we're because and overall a days anybody. about and weren’t talked are, XX

to just is you there through tech So again, it’s for going and that saw well. And hibernation and think looking ready that built, natural out York going you a as product I of its come you're a get large and progression, relative it available that's We and start fabulous of to walking team have look, space, the on. seeing what's people people know during know in it on New to demand some was COVID. we

So see hopefully stopped, we of markets going it acceleration I that that we that the are to fall of some the never will it and but it in. think across into country, operate some

is or where a what people tour asset, that it’s building no, say people it's people fact the closer like just a like built, is not more, because mid-town change Manhattan in down necessarily you a or it’s is want So rising. the finally there interest this can and live, to is would town it,

John, interest locational the we from you want have? demand that the to describe

said, Yes, as think it's latter more well are people the I said, Dough of what back. you that

tenant, with very that building with the caught that building done seen traded and finished if and COVID are it's – two COVID Manhattan haven't with other got two the tenant it with and from of earlier from we and it's or another lease not showing part And As really being that paper one come Brooklyn. amenities are two should we and prior is the had Doug the one you to Manhattan big now well. The the out. and – you amenities from mentioned very, really from out Manhattan

buildings, office Doug start to the wanted they the the things, to the people as around looks back wanted and process. really looking and at it's to So are said, building great go that knowing

Okay, thank you.

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

the quarter But weakest, decade leasing everybody. when in of concessions we to this softest is Hi over mix volumes. our clearly on the in you. a looks kind probably data, is it Thank understandable. From second be which

question free elevated and the steam rent gained to concessions the TI's, levels done as momentum this to So required reopening in deals are reduce still is, or at you starting environment? get are

our to because activity the of with is and the in of to ground in I now. in There a you market right. Derek, The don’t very going the economics pandemic, lot So the think of are we little again places what relatively next real-estate over quarters. want the market quarter changes leasing going transaction a first just cycle dramatic long I more was see on nature and activity sales couple was there's

feel volume going that's will reduce know transaction me, next it's and volume I of think the very start you is will ask to to I answer that absolutely happen, you XXXX? to but If sure, the confident quarters not and new be, we I couple think concessions the of in growth, going to from said to leading of reduction. sublet from absorption tenant going into overall going be be a I be will as in leasing earlier, are way the recovery there absorption is positive I think much but positive there

market that have or space. And Boston think, be or you buildings, going up. And San I will building have certain in they Francisco aggressive you they're holding going not two New and how a buildings like available concessions so there a lot in where being I of positioning tell about are rents could certain a to their and of space kinds concessionary kind are is very there York be door markets. next of pressure in may are they

very the levels continuation from of So have time. country, to across comment conditions to building-to-building think about a But across markets, for these I see general very, going to and wanted from if different submarket-to-submarket. it's going period a broad overall you a be major you're of

makes That sense. Okay.

pre-COVID, versus versus what levels versus know maybe XQ XQ pipeline you So you the importantly today of are describe guess and you today how more versus prior? know at I would or and pre-COVID we XXXX

the in X of occurred three the by sure but we think in had tours you not we okay, comments what our months market portfolio. in make in than my don't number in mean in in days pipeline, in same was of first general. York more what XXXX New April I I'm had for XXXX, can that that’s City you obviously and XXXX, characterization I more than that So, earlier importantly said we have that

We Property feels Boston have portfolio is by with with new been Bryan Verizon meaningful not Mae big exception. right. of would by Ray going buildings, over with what dissimilar last right volumes different on exception and and right, team large across the are the activity office and have driver negotiating tenants Marriott, we now years new in in with you That from and you that's Washington as leases a the the Boston, they Litos a led any was our on know one of leases lot not it XXXX too Fannie led DC few and that it okay, in and know with did with team a

office portfolio seeing any our developments the new are at We the in moment. of

say that’s are we I’d the and we pre-COVID. where change substantive So where between one today are

Thanks Doug.

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

Good for give the half region, expanding just expectations. maybe Francisco, Could you afternoon. maybe or question. taking the Thanks looking the tenants made you one it first related and markets just versus color comment ranked for on, of New growth in just San half seeing contracting. think And tenants San of Maybe you're within just in the sort I a on contrast compare Francisco more compared rent maybe comments? in a past I should terms say Could York? bit you contrasted those and that the to or you

are the these tenants on, So, you seeing we're working the about are these all what floor, bit, know know I as that's and on. transaction of working of are mean are with in regard and we're again, growing shrinking our know I half half to you the tenants said, portfolio you we little that a deals our under

up these today. condition York no San rental tell is rental in recovery. little pandemic in modest would York a rate bit either speaking in in there New be hate I growth in a and record, in you market is There San than are San Francisco behind increases is down. rate growth I York New Francisco are its stronger the relatively because no So New are that or relative Francisco, again they to broken

and started New Francisco running, being a York up call it has until, really been go up months do things people open for San didn't to to work, March. able people nine-plus to and

of we – just on So the are described, it’s of slower know piece which said space. know space that are set just but been XXX going, Street, when at are is lot is looking are experiencing at space. we you activity tours it’s you technology that a – space I available sublet Folsom a that I piece form of as companies There fabulous the

San but recovery. York relative the behind starting in to slowly it’s So New to City it's Francisco, happen

Got San utilization than or it, office is and lower just clarify, census to the Francisco so in New York?

are XX% at. Yes. They of are marginally, like currently what we

we're at a City, So San are if XX%-plus New in running at York Francisco. running we XX%-plus

us go the from XXXX, just you a ahead need I on then of And to company spend think achieve a operational BXP’s bit many and the announcement some brings carbon strategy peers. I'm more plan if color, interesting maybe give does think to it. carbon wondering Got what can really neutral, do your perspective and think it's that you a know neutral, perspective that I benefit. to broad it’s to or from perspective, do getting you probably of

have may Doug and on comments start too. I'll this some

the we have I of which intensity for doing assets three think our years. reducing been one energy pieces, is in

and roughly new some equipment down off some XX% in base as mixing in improving of our electrifying building, that’s and are XXXX well as We year already building.

in gotten away Second that them I've from is, probably converting power and limited but brown with limited some been increases to described our and green, that's there. like sources doing we've costs, as another third

accomplish but in with intensity I and relative the this the the results overall dial, turn then may in to it, certainly think to regulations. both I continue to it, because goal. will some many final but Again, have increasingly off always wouldn't leader a say think care right the we the our do and be coastal costs we to is it's it's to city do, do, increasingly do, say green associated some topic, to There cities. we a power it's we I their have about They're important own all We’ll it area. and of goal. also this of company material in accomplish energy concerned terms thing to are customers our smart about thing this

capital Our it. providers about care

some green employees can did from you more Vikram you offering ESG thought tell got bond and a As where certainly about lot green a we’ve bond, know more we care and seen our I we small benefit a shareholder recently at it. Conferences. We

why that's and plan the doing we're it. that's So

you. Thank

comes line of question your Heck Wells open. the Blaine Blain, next line Fargo. Your is with from

of Sorry and sublease side I seems a lease to to west about high in Monica in you been guys a another that. the amount bit while Roku and mentioned Santa you you little get of LA it's the about more signed Can particularly market, the and see – talk LA general think just come about has great you co-signed. particular. like lease It

pretty the talk tenants you about prospect Given of in is expected might getting kicking on occupancy the timing those you and substantial on profile assets in additional have, quarter, be it whether that describing? assets stabilized you can LA your mostly tires opportunistic vacancy like Doug think was then at competitive thoughts that market to is drop might to just sublease that space that back any to those you you touch are can both guys this occupancy. And or any

want So you that one? and take do Ray, to John

and start you provide don’t commentary. why any John, I’ll further

Sure.

the many So the commentary small decent are of the first market, there as And both, blocks mentioned, amount available. blocks of sublet a of Doug and quite opportunistic. large which are

We yes, open could away. or someone need capture they're their sublet we part backfill necessarily case going market, have this in it space to tenant. the on decision some want in we they’ll but might portfolio our but they go you ask to tell if that sublet here, flexible and be across customers, come just opportunistic is makers, the If a doesn't space They downsize rearrange. that our of you sublet space, mean that

So I directly Side and there a think of see that lot us West we with landlords. the out that competitive are actually competing not spaces other the sublet

As know got with sector, right to kind Depending structuring big seeing are on the has that content grow and way. a be of to the you've our technology tenants continuing companies what to story you it industry of the we’re not’s. the in has prospective and relates entertainment now, we're it the and

leases existing grow the If of and expansion these looking we a you with and look at Doug mentioned growing they Colorado, with done that signed that Colorado over now. what right groups Center our couple Snapchat the at tenant and are are at to we've

seeing to or seeing And are – cognizant what being the what to don’t kind commentary so be over while excited tech we our the of potentially about of of and need on. prospect Ray, tenants. I’ll from want mindful space really the we're you. are that, switch it to we're and I what focus turn you're you of

Okay, same earlier say but at Colorado I quality would the I that, Colorado we're Center. just Center, another with well to that mentioned flight reference, saying

currently, three we XX% the weeks, XXX% with the see I last in we leased We and the next what? are think be occupied months. activity within there easily six could or four

just You Santa a the our existing a point seen, tenants to by lost tenant I've the you others, market but and led We had not sectors the out to know fully how we're other will coming of and a park business shipped may to brokers. in by Colorado markets that product. Center And respected and Snap quite both, relative a just on very market a of tech coming is return strong, internal the John really know have Business think confident pause, are on tenants strong stabilized older to Santa that and reference I center, the soon. Park new bit a LA are it's decided the leaders markets, Monica and demand led we Park elaborated little the lot and back but same that that from very different, supplies Monica west little by

face rates, tech, in lock it's we that large we're effective content race and taking have net companies, And deal we're that LA, pre-COVID. West right know coming putting activity A firms they're of what the backed to tech we're that the there and there scale you to I that first to very space content the are basically scale large and are proposals add on firms, companies there the the the We the media would list, out rates of the and West that and the is rates down look, renewed from prospect effect in so do seeing to close you firms, quarter tenants. other but our ventured and a credit a a start-up are LA. the Class of lot fortunate have bit quality here know space the in a growing net

are While aggregate that of we and do the space blocks B-minus B kind competitive lot here. we other see that have don't to of we think these sublet what a

Great, and that's helpful. Thanks very John Ray.

to just constructing, that go South Second I guess a them I redevelopments developments understand there? for to confidence are three gave the or same the lot. seems science ahead smaller with but they of go question speculative is on are at outside three the demand like and guys you you Boston time San and typically building than Francisco, what ahead of life with

concerns a So related prospects supply science the market? and in any up importantly, can about more at maybe projects lease to segment or of life have little bit the more you do the those you talk your just

I'll start. Dough, is This

and relatively Cambridge, we’re being science delivery close demand the permitted far in a And we a able on – the that are Lexington, start. country led most growth and have to because we is demand what we there look time have side start exactly San the Waltham, – fully and two like by is delivery not It’s is we and we know important us the just frame, will time the started to going already even as and by again, with And costs, and it’s markets and like. gives Boston a XXX know a the are specular it similarly markets that South a so life with cost tour literally did So we what comfort Francisco, we the to the as foundation basis, to drawings these they the growth, that we've even Brisbane. week, XXX, the going construction soon look not the proposals. market showy short been announced buildings be are forward we've a and actually having we responding responded that’s RFPs two about were to,

more basis. are days discovery is the compound We drug the that have Blain development development and in for into into compound coming do because the a what of the is the is the it’s sector, that creating just speaking changes that demand capital way is great I'm two have there relatively new flowing told. on and that of science two and particularly next we're country, and new there, confidence parts specular technologies over concentrated demand the the couple in that’s we demand It’s life proposals in doing, just to the

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no concerns So the real on there? supplies

in next of couple years. Not the

investments, demand we outweighs the studied the before we supply. think obviously the forecast do made far Look, only not requirement in the that we and also but were these deliveries carefully market, that

delivered ground are up three know the are they're one locations can The actually is XG to year, for The are other conversion I’d for you rather be there different tenant build deal comments Dough schedules. different thing assets Graphic year Waltham out next just on they project, lab because the too, add and following. too,

different that also a creates So demand environment.

Great! Very helpful. Thank you both.

comes question with from the Dilts next Your Brent UBS. of line

thanks. guys, Hey

and at your for the some impact talk the are given of Thanks. jurisdictions. they key think in some base could what get question local but you tax you this me your and of one on might the call, maybe tax current already just if markets about enacted, tenant Just have point leasing high federal market proposals

I'll start with that.

is I'm actually that most guess reason New would York happened. pointing that and because look, one important State, the taxes So I the point to increased the is I in it

plans else legislation. at we this conjecture point always don’t know as You is everything into and turn know

are things generally are of not end federal you and entire of get Licon that think positive most pass. attracted are a this because of employing pretty know have you in it a I large population, lot it all overlay, at for for broader Licon the high that the other to system. see obviously and about I not are day to the a the Then are impact which again, just by know of look, employers Those the through it of by change, geographic primarily in high those before exchange of lot of know has impacts again percentage think that level the New population percentage how plays because increases, the you smaller attention not if been talked the taxes we have capital both the are it's paying the repeal so. country. small a parts occur don't York a overall York impacted exchange, are doesn't transactions Biden Don't people. that's are benefit, the a gains nothing do going entire really know at business. I rid increase for Licon And legislators to the necessarily we'll one not lot taxes But legislatures, then just population. tax in earning plan a of you earners, recent does And those do So federal is portion exchange think impact [ph] of tax New great itself plans, has higher that you the inactive. is of the of population these business. the And to the it's certainly but been that that

If the footprint. in be The I of Again, clearly exemption no salt Washington our have being beneficial is idea is we other discussed like have it whether did, it cap. we the no idea, thing pass. that that repeal would hear to something would

from it Thank That’s you. me. Great!

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

open. Your line is

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

Thank or us early pandemic Great! health densification to that changing tell you. include Looks not that is least like to due Does not the far. at requirements you too changes due well? or changing concerns thus mentioned to on

We a permit. are forward haven't is open slightly our more concerns little of tail said configure generous, spatial clear thoughtful separation honestly density in buy people areas more to because business a will furniture, a it's are and that obviously per it need of factor a it's their companies pretty of be space se, a people going as pulled new seen office they reduce nobody the John had I that bit anybody that the not moment. significant at that means lot But more will wind which space. think they Yeah, being because as health building

and of pricing sense these recognize business, your year parking pick that to up the streams, a to mentioned Doug, back of the Makes starting and half in portion does some back to it’s revenue you picking small then up levels. and pre-COVID generally overall ancillary how compare but

parking per-COVID? You so any know revenue degradation spot today rates versus a the there has certain been with in parking associated

Yes, our review our cost. so ancillary of on have the no parking pricing in is Danny, not any changed monthly the particular answer on we

we're and mean, look availability will to But we demand a July, where to basis push to not it’s not of we Our to for or in and know going to happen our prices monthly is a but September where thing to that's monthly get for point going just monthly if they're demand off. raise going spot sell, don't monthly I going a I have have basis point spot people. October, question have to and we're more revenue, a going we that know a when. we're good to also for that's obviously parking be

year we based We in the hourly look stick a particular where for year, we and monthly model basis. not or our or we don't, parking pricing dynamic upon reduce are in increase with it long revenue pricing a early the our a this and term. once on it's pricing We generally model at demand,

level to one are I’m competitive many how from XXXX commitment tenants trying of of of advantage peers requirements. a the that sense last back how get then, some tenants demanding And going to neutral carbon rest some me, commitment, and or potential the large of verses carbon ESG neutral your the is just market. the

driven concerned and sectors are or building focused on that and with they reason then locations some hard of on quantify. negative and they ESG where hyper base, I there's there decision. I start it’s and saying think not focused I our to other a there make are think segments customer it mean ever with just the are landlord that’s a a factors driven, no city it of as industry I the very way or it some of are it’s

So always of it's to know rent. that quantify you hard terms in

again I to but quantify. think by, lease it's certainly the helped up seeing has hard

a I year bigger only going and get say it’s or would better about. to thing is, seeing to every we it's become other it, The issue going only already we're talk

this You customers year and talk focus every know constituents every our at years other for the up sustainability we we’ve and just year. been goes it ESG, on from doing about

Makes sense. Thanks a lot.

speakers over are at turn any will to further remarks. this now there call time. questions closing like for And no I the to back the

all, you, Boston concludes interest for Thank Properties. remarks. the closing No everyone your That call. in

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