Boston Properties (BXP) 1 Feb 232022 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the BXP’s Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there’ll be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

hand Helen over Investor Han, to speaker your Relations. like to today, Vice now the to conference first I’d President of Please go ahead.

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

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

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

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

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

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

those to Regional that Q&A please limit the ask to will teams Management be portion one our you Executive portion questions. of question. available the and We Q&A During of address call President our Senior call, participating Ritchey, yourself Vice the to any in Ray of

rejoin the or follow-up, query feel queue. have to any free you additional If please

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

XXXX cover strong allocation finish good impacting I’ll BXP's demonstrated Today results. activities. BXP trends decisions I performance BXP’s year and discuss quarter fourth you Helen as morning and economic key and market everyone. full Thank and continued and in our with operating will capital

quarter fourth overall results in BXP to operating headwinds, Despite increasing and continued throughout had XXXX. perform the economic strong

of Our FFO both above midpoint our guidance. quarter and the this per share was market consensus

share and strong leasing the in XX feet leasing per our due and last feet which FFO X.X is to all of grew XXXX XXXX in leasing of Our of average XX% square leasing million for activity. X.X completed square million fourth over XX% years. We development annual of quarter deliveries the

was but The the weighted execution, This success premier by XXXX strategy which average captured are increased to again and demand workplaces, team's in only for hallmark be relationships can X.X term of portfolio. BXP's also strong tenant share signed leases the not client BXP's attributed years. our of and

and through of raised development ensuring companies decorated Light Most funding sustainability unsecured billion challenging pipeline XXXX, environment. one Newsweek's a in estate extension BXP a leader on green in for million BXP Dow and Index. property upsizing liquidity bond having won substantially $X.X named the in bank term and on most offering be recently Responsible the Leader a list markets in continues real ranking And to of only Award $XXX Sustainability industry named company sizable overall the capital additional Jones lastly of and leased loan a our highest Companies eight and XXth Nareit’s the to

cost the of economy whether growth slowdown currently are will landing, hard a a experiencing in other focused but particularly markets clients new on use. headcount and debate the back are in We space and/or Notwithstanding all in of reductions Many revenue line as requirements top halting which read headlines a running on U.S. our result commercial soft estate or the Many real experience or are are and moderating a space recession. market. migrating companies, sector the to giving technology significant are the layoffs sectors. into technology the in daily including have in most industry, control been

increases The which much The expected a Fed is federal to year including reserves of rates, funds tightening capital year, the to come at increasing sparked Reserve. inflation, X% down. measures slowdown inflation the is quantitative Treasury on rallying peaking U.S. federal further moderate interest The reserve for better key news starting hawkish inflation equity and around is interest last possibly scrutiny markets economic with markets rate more rapidly the banks. and with Federal than regulatory rate unprecedented is XX culprit X.X% tightening current the measures, are and less

able focus. the trajectory clearer is or depth of its economic but not predict are to We slowdown, into coming length the current

Our continues are upgrading office outperform. the in to an buildings workspaces in their back by BXP to and premier liquidity. is Users economy's regardless The accelerating and their corporate declining pressure. market workplace increasingly earnings segment materially The activity attract leasing office, in leverage for the flight goal to success to of trajectory the of the is office to position interested industry. to carefully managing resulting due workforce quality

XX% CBRE previously, for described CBDs XX% workplaces workplaces in million tracking of total the U.S. and and is of represent As XXX five the feet than premier less square performance operates, buildings. of approximately space the the the BXP where premier of

of was segment feet As leasing success. market, versus square as well for for XX.X and critical Including for growth X.X we for will million believe all captures buildings absorption is XXXX workplaces be negative and a a BXP's buildings square Rents net for activity. leasing CBD in workplaces, all feet two premier undergoing higher rated the market. the workplaces been versus and our positive yearend premier million are was direct renovation XX.X% the premier the has XX% of half balance workplaces of also for rest XXXX, and Premier which of over for vacancy space rent the XXXX, X.X% of of

down Mortgage available very office fourth to over the quarter. for sponsors. $XX Moving was to is from the down classes XX% arrange all transaction leased U.S. same in assets, across real highest and to and estate assets real period. Transaction only for XX% quality slowed the volume challenging estate markets billion capital quarter the materially third volume financing

rates both higher credit year First materially mortgage risen the on and financing have over costs spreads. based past

of difficult to dearth have asset clear Given cap but determine, transaction the it is risen. activity, pricing rates office is

There BXP the XXX to note transactions two quarter. comparable of the to completed another in for one lab a Boston, of handful Route were total sales investor. $XXX separate were quarter sold REIT of In and million, a an institutional a of

redevelopment least in a parameters In international fund. complexes from one transactions other leased and an Sunnyvale, fully at a Initial to [ph]. for real to square million, of stabilized of sold rates X.X% ranged California, one cap foot the the yield a the private So XXXX office $XXX company pricing prices separate per from X.X% X% pricing square per estate and XXXX and two is to indicate and to mid-XXXs. foot

Regarding of described sale market in and a in New in fourth we luxury BXP's capital of interest Avant, the activity building acquisition in Avenue XXXth York both the The the Reston. quarter, XX% previously closed City residential a

For billion all dispositions over of of and and we XXXX lab residential completed assets office $XXX office assets. $X.X acquired of and million of

we liquid will of our pipeline. Completion market additional more capital targeted So asset in conditions. require the dispositions have sales

dispositions and be and solely predict workplaces, XXXX to current residential will are for given and focused opportunistic very for science acquisitions acquisitions development. life difficult premier market BXP's volumes New on conditions.

X.X% past million service delivering financial results. XX% foot active continues which to stabilization. pipeline premier we projected be and Reston costs X.X our is of the is quarter future growth current This placed to development Our fully VW This delivered into Next basis square and Mae below upon on workplace, on leased yield to project long-term Fannie and a was America. budget to

initial office in a a a Street, successful Winter leased. foot, very project XXX the square for office $XXX project yield cash service at of foot Waltham located XXX,XXX purchased into spent is placed XX% in square approximately lab also XXXX the delivered $XXX XX%. conversion conversion on and to We the foot, square that We building an

also of and clients XX,XXX office Carnegie attempt is first at Princeton asset lab XXX use. Center our at building square in Life the We reviewing This Carnegie the to our we There Center conversion have science foot are first have life commencing in we suburban Binney projections, financial XXX Center, do in will our opportunity. Cambridge construction in Science and Carnegie commenced fourth appear our Mike quarter Street an projects, the XXXX impact on two are which that and greater detail. on that discuss schedule a current and in quarter XXX not progress

the on our building of office Biogen the described building process and we which in lease for conversion the for agreed Institute, of As call, years. has the Broad Binney last XXX to is XX use vacating lab Street commence the asset to will the

will project mid-X% in completed years. expect the approximately AstraZeneca also range. an a XXX,XXX lab building commence it have XXXX We Street, XXX development hurdles Binney at cash to be the to pre-development delivered story foot XX billion for $X.X in XX yield that to initial square estimate of the leased necessary We and the cost

Commencing Given in garage, a complicated initial the relocation construction temporary is entailing Binney parking AstraZeneca vault, which Street development Street higher. of a the XXX escalations annual an garage, by the a the yield from demolition FFO stall is unit will is commence facilitating XX-story, Broadway, XXX will also XXX permitted likely obligation BXP X,XXX being creates in residential house an Eversource which for which tower Binney build electrical and a to other substation subterranean the of lease, the parking XXXX agreements. capacity currently this XXXX. materially of

to solve problem rights remaining building an carried a stakeholders, for to than BXP's due In XXX,XXX the demonstrate upfront multiple for bring creating projects a and science expertise XXX identifying life costs to our infrastructure problems community the of an square two projects the opportunity having These developed highly be also the higher by to opportunity substation to accretive additional electrical development Center has the BXP. first two solving in creatively has for interested team project new locating BXP Binney development thus yields these potential skill Street. foot of significantly at Kendall development, reality which addition buildings, in to a by

when projects, well X.X% aggregates of add $X.X on The residential pre-leased. XXX XX% deck up XX approximately at development of our cost to these of observation billion the assumptions BXP more and over of component investment stabilized. our our cash and a including X feet commercial pipeline than NOI million square at yield years as that date Boston, as $XXX million View and all development Street we and Prudential five next project on is office, lab XXX pipeline the the current based After and Center delivery to the movements average lease Binney projects

investment summary, So well with success in development had leased and portfolio reallocation to slowdown liquid economic growth, leasing progress, investment performance despite potential conditions, balance BXP significant is another capital market weather current additional strong year robust our FFO our workplace the and positioned and and financial above very dislocation. activity. given successful our the in increasingly quarter and identify in adverse market premier and expectations, opportunities strong current sheet, well to market our significant positions, BXP

Doug. me the discussion Let over turn to

Good Owen. everybody. morning Thanks

in while America. industry, described, broader cons sized Owen describing or a what's about the talk So large spent really bring employer. -- in some corporate Owen concentrated demand. the more announcement also the primarily BXP. day the to as and going on staff technology I'm the tech, and industry, seeing announcements finance of at reduction little of medium going them some Every seems these bit to concentrated another And today we're be time big have industries, legal from been totality

the being way If job first growing, serve to XXXX, hard positive in in but to listings absorption. improvement offered to lining their manifesting overall itself of Fewer our that the job of an is ways. are reductions acknowledge labor growing being are Now in that demand unlikely remote announced, to I point of the for work. that in aka a overall can the we the companies examples we there's pool be that is see in are much in encouraging clients footprint it's silver availability portfolio

office. be work shifting. days employers cajoled hybrid Companies to asked, of are to employees Forms but the the workers stepping up sticky, the between are into and is come seem that power dynamic required,

up have in portfolio, week. measure each numbers office are our turnstiles. card that the is of omicron and day-to-day portfolio day on These the steady last January, the in of daily if the versus I basis number across is best in which almost surge a seeing March week a day ago, swipes the compare vary a we're unique number unique XXXX, so In we increase of sort in COVID XX%. the occupants where BXP volume of best the We after

we utilization in I how BXP XX% know York daily and we measure City. don't users ranges San of into San basis number a as XX% On XX% Francisco, in the XX% And basis in our have much seeing Boston, in New at Francisco. relative the coming a we're New seats if others XX% usage. on between Boston, from of as our the in number measures their buildings spaces. City, of against York currently and unique XX% number weekly seats, look to in in

using to day. clients they're Our are just space, coming their the every office not

said, spent XX months and as redefining we've part our with business developers As Owen of premier a being operators better of workplaces. you

space. Owen in space the headlines and and the newspapers, the rates and his availability published in As continues product business comments, The by publications described brokerage office to between track premier widen. reported bifurcation of firms general all as

as office users our will for product an this of meaningful process existing and happen going the to a is are better Conversions today. studying not amount non-BXP relevant to inventory buildings we and but higher markets, have use space years. in it's and take searching alternative may A a

the are the So much sticky availability be statistics even to published though not going any at price. to of users attractive is

new hard Again, that we would many in Fremont the from consider to premier to of potential the to there of companies, a to acknowledge broad Street be latest it's example. offering surveys. San a being at continues technology fact, opportunities in captured have Francisco BXP be XXX client space direct to the see market additions that looking or sublet buildings soon in In

even configuration but Amenities matters. plate matters. or and Availability matter. matters, in San Francisco, markets other premier matters. floor size In out matter The the build Boston matters, The availability parking like specific issues space location more.

due and in it would we our are occupancy in commenced our This meetings the occupied XX% explained we as have simply and while XX% not and it buildings leases Next occupied that's XX% the new November, As last XXX addition as reported in-service that our quarter press in-service call night, reported release and Street declined on Reston is of our leased that XX% and vacant. includes said has Nareit leased. last Winter in to have is in that

bit and actually buildings those this was a those Excluding occupancy be from assets the to we XX.X% percentages, little differently you the their math at portfolio quarter if do up our and at would XX.X%, still least include XX.X%.

So picking our in-service occupancy. is portfolio up

completed and in-service leased our feet fourth the we we today, million vacancy signed development XXX portfolio, X.X have our is feet. XXX,XXX on million Binney, on square here to square which is sit in development now not yet of which when leases we Owen totaling our In said pipeline. Binney As quarter X.X XXX leasing we up feet square include are

We of new each, the came in XX% from clients, regions Boston, XX% XX.X% leading of were at footage with square and is in leased. feet. renewals million feet which completed executed CBD and two feet square XX% XXX,XXX We fourth expansions. the the XXX,XXX square at of in DC DC, feet XX,XXX transactions with square the Penn XXXX now leases San the stands York, X.X totaling square way New quarter about Francisco were

their the slowdown reductions, of the Some renewing reduce still there businesses are midst in footprint extension. the of of clients Even that activity as job did expanding and in footprints. their a business part are

down and we York flat X% are mark to the in BXP's operating that top up our premier Francisco, differentiated, X% the on of surprise It should portfolio in New highly leases signed no best DC. think San XX% the City The on Boston, as were teams in that, but workspace come this in is market we business. quarter in

landlords, to a long-term team's a we make secure as the December. XXX,XXX that the outlay one looks to tour met of in describe was limited that engaged with The our annual Boston illustrate back space. We to were In does have possible desire and feet space. that direct late were we a principles identified lease tenant's an a generally square commitment. able assets. space accomplished attractive in transactions do team condition was block we with quarter executed sublet and not of great capital at in premier I a the building creativity. The in in in of The a fourth want the our rent lease space getting three typically client but deals

letter In available a met to needs. market approaching two their San toured wanted BXP binding building The a early that signed Francisco XXth. January or a non-DXP option the signed and feet existing square in fast in half we then move vacant on XXth, its a were with View client termination and with December XX% were lease taking risk intent. client December space. we They two market not the in spaces counterparty for in understood identified that any of and On to floors XX,XXX the they

and a to some were in New a their a our renew third. floors December construction deliver mobilized proposal We very arrange York in October, a had that a for Street persistence campus. an department for mid-XXXX, able tour. XXrd client to sent We no lease our a is vacant signed in to With place lease team two two for identified vacant unsolicited we we space needs In and floors an per ability expiration option and the in tight timeline. which our

that Street Owen at science our this quarter. life project XXX we delivered mentioned Winter

at XXX We Gateway. also completed lease our first

at described time, We projects commitments have experiencing project science is life in also XXX a to to the Carnegie we square which XX,XXX and At our not Street, leases any XXX% that as have other AZ available demand. is space in slowdown present at Center. additional build two market well a made Owen The Binney developments foot than Waltham. the

in our the will believe that available BXP fundamentally workspaces will premier in of not portfolio our going positive and demand market. be is It's market outperform space and market a the There is lease the We because and Medium the was we absorption clients market to near-term. be above will challenging comprised that XX in the Only make we up a fourth square lease of during quarter. the the in XXXX. complete of and financial properties. leasing service completed one wants to We feet. leases small professional these types bulk XXX,XXX is

where the surprisingly, the heavily firms. continues technology City professional York the Not CBD and Clarendon. strongest more and our most leans and are pronounced the New in active activity financial in less of occupancy portfolio be and building traditional, markets concentration GM XXX users to weighting towards the market is Tour services Boston buildings

stop Mike. I'll the that, call With turn and over to

Great, details I the to performance thanks Doug. our to Good XXXX everybody. cover morning quarter the plan and our of fourth earnings guidance. changes

activities. However, for heading Center sold cap a raising $X.X we've one in we I in markets three liquidity busy and would the of In start last summary buildings transactions very markets. $XXX into of with a term the $XXX XXX We Town corporate million. on three days, executed our recent substantially green capital We've We in million like bolstered an XXXX. five-year of to upsized billion, been our of million our and unsecured our capital different have issued loan $XXX and January residential unsecured increase X.X% Reston and to rate. extended bonds, in

additional deals have science Life in majority senior we that In Binney square and refinancing $XXX billion renewing commenced that XXX,XXX proceeds fully or which foot pre-leased, expiring our We've from facilities. million our XXX as September raised the an maturity $X.X these provide which our recently liquidity for capital other position totaling of of options billion, extension comprised these extremely anticipate net we us complete and loan to of project, five opportunities development notes strong as million and embedded is puts well in aggregate, of mortgages pipeline, including now Street all The $X.XX mortgages $XXX of million, also $XXX exposure share. may reduced expired is at our to arise. unsecured have these XXXX

are state well markets, with challenging of Given positioned. very debt to mortgage the markets, the particularly respect we the current

share. fourth per or and better midpoint This highest The is York $X.XX of performance FFO per turn share we NOI our The $X.XX a to ahead full XXXX of of building our diluted revenue, results of especially per our of of of consensus. earnings fourth cents in street see share ahead I'd $X stronger reported was income, primarily was $X.XX year lease and about quarter Now New hotel service in and guidance results. where the to our penny our like improvement of from outperformance diluted mix We from our utilization. million quarter ahead higher in space portfolio the a higher City $X.XX with Cambridge forecast. FFO

portfolio our that offering a $XXX The to offset related interest net not partially penny by guidance. million our higher was of outperformance was part green of expense original bond

reducing a FFO quarter our XX% or book equity owned including leasing describe venture of I has part commenced. in charge building that $XX the client interest not million last share just a is located where currently leased, York. Brooklyn we that not yet and value to it the took joint in non-cash although weekly we in Brooklyn, by in do The property XX hold per want suffered Although impairment Dock two have leases New $X.XX XX% in It's of building our floors. quarter, XX%. is contracted occupied, the conditions from primary This

by revenue X% a and XX% our XXXX. over had we by year FFO We in Overall, XXXX. strong increased

portfolio our acquisitions. our property well Our as same from developments growth came as and our

the portfolio property was of of NOI property which in X.X% basis X% range, our our NOI XXXX. a high with was it same stronger XXXX, growth even increased end and on same cash over Our over cash

Our our and per our our $X.XX dispositions XXXX acquisitions development share of added share. $X.XX per deliveries added to earnings net

to Now I'd guidance. our an update to like XXXX to turn

due incorporate we that control. several last guidance starting commencing of associated in projects clear the expense our new FFO needed did development XXX our As are interest our our prior the not financings. and release, to in we to changes the press to the outside contingencies We quarter with our most were XXX two significant XXXX Binney Street to Binney our guidance significant impact detailed of

quarter able these out in successfully the we January. in were team start items project late to fourth closed and the Our

existing in income The will forward underground garage. we Binney the and includes going development, include a completion $X.X produced million demolishing new and and facility. parking closing development of garage NOI the which XXXX Street the That in XXXX, of until plan lose will this

the the income the be way, highly As is is garage returns. all into future Owen project lost described, incorporated those accretive by to to projected and our FFO, development

We $X.X are to by demolition also required GAAP garage of costs expense million. approximately the

We expect the and incur XXX impact with million the quarters demolition thereafter of of These expense to lower will demolition the first XXXX in be per second complete. no $XX.X will as Binney in to XXXX share. FFO Street two or in result items $X.XX related

$X.XX With guidance. respect share FFO our green in to disclosed our our release and our financing $XXX that offering add we our expense in XXXX interest net million to reduce activity, bond would press November per

issuing result, only per of $X.XX diluted range at projected guidance the Binney share a impact $X.XX means Despite to FFO of from this, That areas. $X.XX other for reduce guidance starting is XXXX we new will reduction last our to expect incremental debt per our midpoint our $X.X, from a and per the As FFO share aggregate capital the XXX increased contribution FFO by quarter. of we've share.

places; the come is projected from our adjusted for impact assumption Binney revenues we our previously share quarter from some described projected better is reduction increase Doug of increases acquisitions in and excluding pipeline from Street, acquisition The our XXXth communicated our guidance. higher three in that from bond generate the share. of in development pipeline. XXXX. a penny only per contribution increased leasing $X.XX than XXX incremental the up The leasing offering, our contribution to is from really Also, will the Avenue this development and and per first, NOI so November

are our is Second cash higher impact for from balances and interest the expenses spend per this higher rate. on capitalization the of changes higher and our share $X.XX in lower our net by development of capitalized and interest revised primarily from net earnings interest assumption offering, bond improvement

share, penny construction million our $X or services last, fees. per for development management income And and a by projected reflecting we've higher increased guidance management

expense by are higher share, starting contributions offering to of Binney income we've summarize, fee to from to and penny. And and range at our interest higher The higher $X.XX NOI $X.XX income partially of costs $X.XX XXX and these So modified guidance a acquisitions FFO to of cents, changes $X.XX $X.X, for $X.XX. per are share midpoint. XXXX result of per decline of the developments higher of Street a capitalized diluted of interest reductions our and from bond $X.XX offset from interest the

Our XXXX XX% reduction reduction are next to X% due as a FFO NOI after significant year delivering we forecast The in interest increase our in of significant to pipeline and a in projected few is the the years. rates over of XXXX. developments result from wholly in have growing last portfolio continues accretive grow that

same headwind forward. cycle, rates should not As the appears so going to Owen described, tightening Fed's it that we close are be the end the of interest

quarter like The to with our companies we issuance of guidance other timing change sector. starting provide to XXXX earnings next would guidance intend initial for year. the of is the to I plan in We thing our similar to mention fourth release that last annual our

remarks. our formal up you of Operator, lines all questions? for the completes open That can

I go our Thank Bonnel line Camille the from [Operator question show of first ahead. you, of from Instructions] sir. America. Bank comes Please

Hi, good morning.

Your going guidance your the you into occupancy pipeline got dates projects few mentioned Can acquisitions pushed higher and but activities, like science a from contributions looks life a back offices year. and next just it for development initial is very properties outlook how and any be helpful? on bit contributing Thank leasing specifically you. color for this what's on construction would comments provide a to quarter of

XXXth of little that had the was fair value for rents at then leasing based a out we made of activity the bit Avenue, asset. and accounting XXX and on upon We did Park a XXXX. portion of of XXXX South did leasing at push significant Penn where contribute we And a and the the which is straight we place line and an acquisition that development one So an rents activities asset. other are in we amount that quarter increase finalized kind will of by that Avenue

So next up that's rents. line our guidance for into our through flowing is which straight line rents year, straight

know notes. if you a anything bit want about to on more Doug, I you leasing. I don't mean, little talked talk about development it the

Binney I Binney one. the including comments on We're we'll that Yes, at big the on leased said I assets schedule. And Avenue we're of is picture up we my other Avenue. The in brought quarter. about development XXX totality think at XXXX very be our on are, picked assets next Mike this XXX described got our quarter that by is The XXX slow the where Pennsylvania sort leasing at way leasing South. well CIP our, as XX% Park of leased and which

So relative to don’t the see to you’re much think in way I changes. XXXX, of going

And you. line the Please comes John of ahead. Markets. go Thank show Kim BMO Capital next our question from from I

Thanks. Good morning.

the a you as lot And expirations. for at the has my year? square does square about run at spent a leased fourth Day And how quarter. is sit that versus occupancy Investor of rate in I You have rest the million your compare the here near-term today, of time? question is know feet, that lot changed you but talking good your potential expectations since And million your the is, X.X time a upside then, given feet X.X

relative thinking are Well, we’re about to in incremental way I for about demand less marketplace there’s a you’re and was space. than the tenants is I been world feel we would economy risk nature tell overall still September the the due assets you the think demand the about that change in the were the I the to there today, that recession if described We of overall then. the overall ability world how in material asking environment of our and the the quality looking versus of thinking really to good in capture there

And our internal so we be actually the slightly projections we again, end third exceeded in own because year we thought at would below quarter. where we the the of were

at and leased occupancy year. if increased assets them, the overall service our actual put adjust again, actually during sort in we these bringing you of or simply new remove into for And their occupancy them

somewhere you look at XXXX. of square be per schedules look million will, we we’ve exploration And we the again move million the occupancy and be at through would for should so again, square and we X.X hopefully our quarter, increasing leasing tell XXX,XXX X feet you you, I to already in our neighborhood feet as leased, XXXX if

maintained add, same and for John, property we’ve our occupancy. mean, to portfolio Yes, for our and I our guidance just

of So what it outlook our last kind was is we similar quarter. to gave when guidance

the feet that square And think I of described, see X.X second going is through signed we’ve coming into that Doug or first we're rest from are now today. it so three quarter, starting in what from already lot our the will likely year. flat I to But million got play. occupancy of leases the the that’s in lower quarter there the think occupancy grow our that be than a that are months

in in going of just did to Boston deal in in this a in we of lot start a in York starting. also some occupancy the quarter. second deals a are And that signed that number markets is that we’ll in quarter. And some major is coming described of deal the New December, starting have we like leases City, Reston second be and Doug got the that we've

I that based what to So think upon guidance good as, we provided. leasing been our we we’ve conservative activity approach our but about feel the we in we that future see feel guidance

Thank you.

from next ISI. Evercore Please Steve the line And I go Sakwa question from show ahead. comes of our

both your good a Avenue morning. know tenants buildings towards Platform were talk about sort didn’t thanks, just and given geared some Yes, I know or of maybe on Doug if tech need South. you do there to comments the environment I curious you get little XXX bit could see macro Park XX the demand how those about tenants and And subleasing, these even you’re better traction buildings? I’m both program to marketing really of those altering just maybe slowing and of tech of

ask Park me let talk ask South, Spann Hilary to to and So on XXX Pester Avenue XX. about I’ll comment Bob Platform

the South, underway. redevelopment Steve, Thanks, Park Doug. is doing? are So you how Avenue XXX Hi, at

very that to with to we’re are far announce retail be in along able very We tenant when going exciting is it. discussions a

firms year, starting the Midtown And the in is to has last quarter everyone that to its point on tilted and location Avenue it’s probably of media early the slowed velocity tech year. making diversified, has last third the think South for I XXX fair this submarket. toward the of say call, in that been maybe dramatically because demand that but leasing of quarter of end Park second South

proceeding we’re so And at estimates. to original deliver pace development, with expect and per we the it as our

more finance, we has question cetera, industries finance, industry there. of groups, building that no that but seen in traditional support for that the slowed And that is et the leasing some the have a demand actually

demand looking thinking may square that XX,XXX the at looking And to more tenants so be that XX,XXX foot rather fill XXX,XXXs, to at we’re than we for building.

you. thank Bob,

Hi, Yes. Steve.

on a feel And in It’s them until doesn’t that is Silicon can is that they until that Jose deliver come still the the will before the up. that Platform going San it market this look or that’s market We in buildings Silicon XX, typically at XXXX. building a timeframe building. as tenants going Valley deal XXXX they So told and the many tech deliver build walk we’ve times the a don’t as to new. get Valley see building it’s project only

we’re optimistic tech next still over the user months course of that for the that will building. materialize the So XX

Wells question the show I our from Please And go Heck you. line of ahead. from Thank next Blaine Fargo. comes

to that leasing can some seen market. the Good slow tenants well the overall But to or The thus be meet BXP commitments. this relatively you the think of activity far talk Great, those whether have demand And about U.S. to seemed been maybe do quarter you’ve market. importantly, get longer morning. longer-term to thanks. change a change leases to to compared think sign you a fourth in quarter reluctant of level the year? needs leasing did more what in you

Blaine, demand of the in is So today a less I market as demand there premier business absorption have We economies geared think the market the thoughtful that I we comments overall are we let regarding due that are which making peers of is, were don’t more to the will honest we I then going think am towards hope that both and And what in -- be picture comment my think is the tenants that work than I’ll are nature Owen space and we and make well. much to positive think occurring. places changes. lease because decisions. our there’s any the

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