Boston Properties (BXP) 2 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to Q3 2023 BXP Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, to Helen Han, Vice President of Investor Relations. Please go ahead.

Good morning, and welcome to BXP's Third Quarter 2023 Earnings Conference Call. The press release and supplemental package were distributed last night and furnished on Form 8-K. In the supplemental package, BXP has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G.

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

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

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

allocation market third sector. real capital Helen, despite escalating and BXP's quarter economic key quarter, the and perform sentiment the for BXP's cover company, in for commercial market continued in and to you, Thank impacting third outperformance good morning, I'll the everyone. negative estate operating the trends our quarter. BXP Today, activities

occupancy own access the square and We multiple our the portfolio above BXP's with capital leasing again operating financings, sustained the feet completed of clients. weighted most third term midpoint our once and increased environment over was of market both share of and million lease to per consensus company average demonstrating elevating liquidity We weaker despite position FFO a completed a in quarter for years, asset-specific X of X over and forecast. both markets. our Our

the environment Moving to XXX,XXX the at quarter, XX-year risen growth does X.X% created remain U.S. economy. the increased economy's is since discount with misleading, XXXX, the remarkably of rosy headline market in picture at September rate points Federal for third X.X%. having the our in having strong, of nearly steady Notwithstanding not and jobs many clients. statistics the the and accurately rate, X%, economic March operating and U.S. it tone as percentage X.XX reflect all unemployment the treasury Reserve This GDP

government negative for leasing has Much care, hospitality, Assuming and as last quarter office has third the been forecasts such in job has GDP earnings the negative the leisure been and recent education been quarters. XXX growth not consumption the in earnings growth and health are of information strength sector for the in S&P accurate, related, annual in and creation sectors, services. financial X

cautious times in negative actively Our manage And commitments. The will as more space earnings they result, weak leasing the head corporations a and XXXX, growth. of economic making when demand. helping in that operating obviously expenses driver clients are growth remote or primary are rebound, believe count space earnings our in and leasing new work not returns. We is activity slower conditions of are their

week. portfolio. And mid-October, achieved XX XX%, New before and collect whole were important Those Systems, workplace foot turnstile in We workplaces figures trajectory if Francisco continues of numbers, of to in actions believe accurate our broadly our is utilization. but all and half the we as week, users the turnstile improve. course expected well respect it buildings, aggregate offices be are and our of are pandemic. is space through measure respectively, employees as work experienced to activity indicating data the difficult levels million buildings for policy. of in their premier reported for to the rhetoric generally reduce of and all office space returning specific Tuesday Workers experiencing clients the XX% activity square of as measure Thursday, the markets buildings in on Boston are human from approximately turnstile return their Kastle of an is utilization space XX% our for encouraged XX% San versus over pre-pandemic with cities, We the many data a in-person to City days and our occupied the to of premier not continue in We data a for with are of office York to greater the to

and square the segment of total operates, Lastly end third XX.X% square absorption the the of approximately direct of premier market. buildings We represent and versus net office XX% the are segment premier X.X all for XX% every the for Also workplaces a of premier BXP for workplaces not office versus balance CBDs third the share for of feet, the of was positive on the quarter, quarter, premier was buildings. At balance negative the in XX% market. feet workplace million of same. total the IR materials a report the vacancy X quarter, market. In our importantly, for the XXX,XXX the where the space performance CBRE's overall the

for X feet rated BXP Including a our X.X negative which differentiator XX the feet for is the workplace attendance office workplaces, important premier a rents been square buildings was increasing of by BXP's positive asking has buildings buildings, in versus net square premier statistics marketplace. quarters, space in premier the XX% as million a is million XX% market, leasing For in and last the balance absorption driving in CBD XX.X critical segment. undergoing the CBRE segment for the higher the and of renovation, for are

reflect to limited office well-leased demand quarter assets pernicious previously was that million premier under of rate. third leasing that office nearly Factory, the commercial a repayments. billion, The rates volume market there be levels, relative million markets transaction $XXX level a for $XXX well and significantly foot lowest leased given a first reasonably Each sales the capacity availability over sizes but to X.X% the transactions, non-premier financing, fully low and foot for core have likely will $XX requiring square buildings cases, a designed in XXX,XXX would and less office assets pricing XXXX. Investors U.S. No since representing that in from of X.X% for dropping creative the involving for many U.S. are an redeveloped and XX prevalent to Francisco, assets lending the is moving and per is financial under Boston, sale million are quarter $XXX estate vacant transaction complex, San asset and longer is their Monica, office turned, the a private for $X.X vacant. uncertainties for $XXX capital historical due sales available quarterly for higher Hudson real completed transaction currently and These sentiment take or characteristics and in financing third renovation of provided. In for existing $X,XXX pending $XXX cap muted, family foot. In many deals sector either activity, cap foot of by exposure office was in to in rising consensus Now the X trying New of district leases workplace. In market. to small estate $XXX advantage are both The quarter in million, believes to square Pen approaching foot. to U.S. reduce square Entrepreneurial, inflation. Most second the to above office or square quarter have are markets, the market real $XXX the XX-year purchase and financing. as loans recovery. BXP's market of completed in agreement store were seller been of ranges under City, attracted buyers and be X.X% factors Yards, significant in considered from pricing debt Neiman or foot and rates. In X%, treasury sold all the of today's cost $XXX of sold not sales, has the face to Santa to York the user plans at office a X debt there XXX,XXX mentioned, square material as to were completed values foot future Marcus XX% capital lenders square

with office mezzanine The XX% loan our mezzanine the and expenses market is capital activity Square, an restructuring additional will only a square to the property, million third was BXP's fund has receive management senior XXX% a in operating a XXX,XXX to BXP well capital the renovated which for encumbered which loan structured Washington, of D.C. million potential asset, to fees property as investment leasing now mezzanine existing building in asset. mezzanine and XX% of fees basis. stabilize owns at leasing been and lender earn new to to million loan of interest continuing with BXP $XXX BXP for XX% $XXX management of as a completed provided leasing leasing, and providing in to property located return will in senior services attractive interest the undrawn return. quarter, a and a loan, we the BXP the in $XXX recently subordinate annual interest continue other as-needed for services. Further, an Moving Metropolitan management foot new incentive a future owned on and million. the provide by has and $XXX loan interest

a the with quarters, a $XX opportunities into on portfolio workplace given we believe coming the as better attractive performing basis. negative premier of unique result to the the expand BXP sentiment which presented will industry, be much the its experienced also toward We gain segment, over transaction. In office spills million

the sheet and to have through balance a we maintained remains access competitors. primarily private unsecured and strong, few capital markets debt available public to Our

year well by workplace billion the restructuring foreclosing search for peers in opportunities, the distress assets, in BXP a of liquidity. current sectors, currently outperforming In as to portfolio owners play have with when to attractiveness are Our continuous the market its anticipation exposure. and reduce as market, past we offense raising dialogue or $X.X been funding due their of maintaining to for on clients, billion in is seeking $X.X our of office lenders hallmark positioning competing that holding in the premier we're portfolio. In gross

remain assets, and will workplace in core premier focus markets residential Our development. on our life science

through global the attractive continue joint at prices ventures During crisis, the Street downturn was raising Motors caused to and incremental acquire and to we conditions, XXX asset by pre-leased Building, all On Street, the select time. sales. XXX BXP major at consider pursue General developments with Federal financial Clarendon the Madison, last able additional XXX to capital this

portfolio Our development for continues to growth FFO BXP. create

at and an we XX% quarter, fully objectives square carbon with building in incremental foot generating This service performance placed Mass. net into year on fully renovated XXX sustainability redevelopment invested. completed Needham, with Street and capital for Kendrick a This yield stringent delivered XXX,XXX first zero was client leased

BXP with yields retail into remaining Science Gateway of approximately aggregate return to We in Park, investment, first service lab fully delivered a X.X which of funded, are residential continues billion $X.X and pipeline is attractive delivery. year projected generate owns also BXP the projects building development Life XXX Gateway X.X% significant part was our square cost. BXP a XX% be the feet and a foot asset, leased. to projects on delivered underway. upon interest aggregate as in which to office that $X.X with square lab, million These billion and a execute is at XX XXX,XXX

to current given despite strong sources, both gain well segment, and multiple expectations the in productive with assets Over the and current financial weather strong our our growth, to summary, negative our market position the quarter sheet above to and dislocation. BXP to a dividend. slowdown another and in development positioned BXP to potential in leadership market due market So had clients liquid significant providing leasing Doug. access premier with and workplace stable sentiment, market performance balance share our is capital economic pipeline

But to morning, Thanks, -- demand profitability Owen's with final are talking quarter. last longer, taking Owen. about the across not of -- pretty remained everybody. Client consistent portfolio leasing relative our with has stable challenges regards pretty decisions Good to corporations. over the

Coast and occurred most much billions properties, Our of This the most demand Pretty investment the More is in lease ecosystem. services, services, the Francisco more from West administrative our is activity law asset financial technology our -- not, services and absent XXX,XXX this reducing leasing from has be the past painted same continues picture feet of times that markets prevalent San in buildings see to and I than from premises. continue dollars clients city of last professional weeks, of than technology square management. Traditional are firms, organizations renewing their real. pointed there been quarter. Growth growing the few AI into have recent in to

strongest clients lease For available a premier going and leasing third terms managers. completed fund is teams well-built Center quarter, illustrate foot point, speaking, growth demand, Embarcadero equity, private square These in during with premier companies for achieved focused is foot occupy Manhattan, a often wants square alternative to equity workplaces. To our expansion square This being the buildings. growing asset XXXX. The XX,XXX impact equity firm typically now, of with large, a Reducing a managers, in under for XX,XXX positive assets, relative and a private A rents at funds, still manager we expansion our growing opportunities foot are venture user fund portfolio XX,XXX hedge specialized portfolio square leasing their asset foot D.C. multi-floor availability concentration to in pool are to of the in not Manhattan. Manhattan, an broadly capital the hedge that a growing private in market, Francisco our San in on discounted at for XX,XXX it's in is significant that in broader but management. for the firm

portfolio, our Manhattan that we interest hear have opportunity. Law our Center but in direct of Our and Core for strongest the Salesforce in the Midtown Center through firms portfolio active Reston San Embarcadero We availability Northern market Urban our portion don't in an and Center Clarendon Prudential the Town in at Boston, XXX in Tower, XXX,XXX also important clients remains Salesforce are their Virginia, sublet square activity has foot Francisco. BXP. of and assets

negotiations lease our feet feet half X X highlighted We million guidance, per X.XX over at provided or we with Owen D.C. the square square million. are foot firms in signed during million between aka, expectations leasing law in for were embedded X Manhattan, in active October, Last leases the quarter. the average XXX of first million quarter, X to or just on year, we Francisco. XXXX. Through 'XX million third XXX,XXX discussions the distinct and San square LOI that of

documentation. square So high our to square a XXXX target guidance We in feet. million have million would date, at of additional say transactions have we we're X.X currently our embedded X confidence feet feet. an X.X of beating will square I in million active that be we lease leasing

net we square XX,XXX Boston. feet existing were Coast particular XX that XXX,XXX down There and did the a executed D.C. feet no quarter, York, were expansions renewals, new of New included Breaking market, by XXX,XXX clients, with in X or industry feet XX leases and patterns was XXX,XXX square given feet. XXX,XXX contractions tenants. in There transactions, This volume among West our XX reduction relative square about X about expanding in pool to in contracting. the and size, who market. the in square

this in-service the rents of New mark-to-market in with up D.C., we in quarter signed Boston, York and quarter Seattle. We about leases compared Francisco, commenced leases XX% and The quarter the in XX% last as XX.X%, cash reported third space, down XX% to on San X% in the ended in quarter X% The that in second-generation X%. X% occupancy X% quarter. then of XX.X% L.A. an was down positive in mark-to-market this starting was of leases our were executed The this supplemental. on

during Gateway said, and and the XXX Kendrick were to Owen out. quarter, Net Square third added was XXX taken portfolio, Street the As

If the you from period Square remove went comparative XX.X%. quarter, Net to occupancy from second the XX.X%

modest again, note that feet XX,XXX we terminated in third on So increase. I the would relevant quarter. WeWork, square also

the as to have WeWork we defaults move fourth expect into through from and We XXXX. quarter portfolio stemming vacancy additional

quarter, everyone, the of all in do BXP exit XXXX revenue feet square we We to as Just XXX,XXX nor expect is to assets, of place that don't to assets remind Two Avenue XXX,XXX expect is leased XX/X/XX. now XXX% for have XXX,XXX contribution. The them their the current into $XX and in leased at our leases we South, XX% another XXX,XXX floor The will vacancy, share and Park remain our that work the WeWork square at million. leased. We've sits in-service lease feet, supplemental. At XXX 'XX totaling commence leased. now a portfolio the drag which the same-store XXX bringing X.X quarter a signed foot Gateway it's with XX% on to the an square development be end fourth 'XX. office leased This total -- feet of totaling million commence change with footprint. of on occupancy XX,XXX had feet leases square square to and recently put service, asset at manager annualized were accounts anticipated feet square we in removed in signed in its yet approximately about XX% and

remainder the in about to points we few a as have the -- our of expiration be square occupancy down X.X we We occupancy quarter-to-quarter, up stable square feet. very Much or expirations. our of this believe million we total 'XX, at as is XXX,XXX have of uncovered, of of XXXX. X.X% where year-end. In year end or to expect manageable of portfolio we're going will a For X% defined where in 'XX, relative end we the a basis drop XX, feet so

quarter improve positive. really volume manhattan provide negative with will From place, office where market market outlook broad third quarter. for supply guidance a experience almost one some was the every there net a continuing the much leasing absorption, to being in next didn't along with 'XX We the picture perspective,

brokerage office their city-specific they between not and to in are that and reports are that depicting publishing distinctive BXP have-nots, view for acknowledge assets, trends premier ways the a and picture is described The broadly. availability have Owen bifurcation The buildings supply. the the though characterize premier markets of constructive in data the more starting the their relevant office

clear rent is new that starts the increases for we slowing nonexistent not new financing different points SOFR would space be of construction, is going lenders. office of costs, from current caps. velocity. Construction the rate Premier found economic in in a might, rates marketplace with have plus which increases require and traditional X.XX%, high Today, annual speculative current construction leasing capital any are upfront but today. use basis are could additional SOFR vastly was XX costs. rents, financing that at transactions. down, from the concessions XXX, nontraditional lend Any available and might, simply presumably when hard SOFR What's at and seen digits. is and the to saw The We've major construction points. the years are past XX over and dramatic new is with be X seen to at Construction costs to inputs building not single increases lower costs the double-digit I lenders reduction construction word loan-to-cost interest

up. assumptions lease longer Speculative assume leasing also

by You a pro than in materially are all need and that higher of is every put you our cities. one supported development forma rents this into market rents current what

at that level we Boston, attractive. parties X renewal quarter, in completed a expiration foot Back to of a XXX,XXX the prior both This years rent Bay square XX-year found

construction to pay critical the was that basis. This overall space, on believes would their client their that speculative not to component construction using new look meant any to business a down is in did believe likely no the replacement need they built of available inputs rents be and they the are be Our when market to strategy, a the all in in buildings just years, block in square the and I today. now Back new in foot Bay lease XXX,XXX high-rise X there sign premier Bay of outlined, Back all and cost space using

in continues the to portfolio New light. life be activity science

in life some complete property are our our previously, spaces. turnkey urgency from workplaces, floor. tour outperformed private requires quarter, small partnership a completed that the The as amenities these have bulk the these new and In existing meet fully and and companies lease regional our to the majority seeing infrastructures, our where each in new touring, client to capital needs. development to and for built premier open is we teams of in will properties, the Gateway investing activity, the to to space. BXP's allow our other but availability, to date, in no continue clients of we market I building spaces, third and at are lease our we're immediate which requirements looking demand are have comprised the Waltham, fundamentally be for During we there science types XXX want 'XX, another is discussed requirements. There demand, is of the portfolio for few teams market space because of but large the client lease

activity. their capital We and not of considering clients are for impacts in of feeling leasing market for of commit structure, take buildings tenants, or going and things reality are leasing all seeing period of to the recapitalization assets the extended and which due brokers them stress to that greatly fundamentals and the these capital an many market or current to our further reequitization share. I'll is over us increase opportunity position here offers time. Many these reflected stop to the existing transition in Mike. in their demand a or the to new turn interest The buildings supply the are to

guidance. I some Great. to to everybody. start Then I'm and go my Doug. activity. debt the quarter third you, earnings the over with discussion Thank our and the performance will Good on morning, XXXX changes going markets our comments

quarter. on and quarter Causeway to workplace The totaling in mixed-use related project of these mortgage $XXX facilities largest or premier financing Hub refinanced busy X million. another this We that's had extended retail We Boston. our

loan X-year office $XXX by low-rise, on secured a and of exercised extension of X, retail component. creative the million $XXX second, we mortgage X-year we million the completed loan office And first the have First, the refinancing options mortgage we on tower. the

workplaces this liquidity by million We corporate line we release increases our surprised when this our credit on bank of markets, a as were premier by expanded our roster $X.X reaction, view billion. points, of We honestly the in million smart to Cambridge. earlier as attractive market's it press is SOFR banking credit and move. Last at market, of quarter, next a pretty our and maturity a also and The to a to we cost. base. year. spread relationships client expect the today's is $XXX X X-year, quality up-tier issued with on modest expanding XXX approach banks February in repay mortgage syndicate their the from seeking so banks to on $XXX week, With in closed at Plus relationship of uncertainty in new loans the illiquidity a much basis million own expand us, upcoming had us We their new a we proceeds $XXX use our X bond portfolio of

which been happy last timing our bond of rates, market recent interest move of have the with the are we both significant couple below of in deals, Given today. coupons

We needs of have and financing maturities, more I XXXX, which XXXX $XXX mentioned. is million we've care a of in piece our large just taken no bond the

to have billion our X.XX% share at XXXX through and other though of XXXX. maturities rate mortgages. SOFR swapped be we $XXX is term $X.X The loan term loan fixed floating floating also include million at rate, May Our of our

loan the of maturing and term to expect mortgages. majority both are exercise on the the We options X-year extension that available

you cost. for moving As into borrowing to you interest higher our XXXX, account about need think expense,

of of refinancing a of X%. rate had XXXX February of $X.X of billion financing with that at rate that are in We bonds expired X.X%, interest August weighted average average an XXXX, and new

we $X been in At of average our decrease development average fund $XX this running with earnings income available current run to million. rate, balance closer in to of with to billion an In approximately an pipeline interest cash XXXX, of Additionally, and XXXX. we've million projects a our approximately with XXXX. $XXX cash, balance expect

Now turn earnings to third our I want results. quarter to

$X.XX share, mix per Revenues from and from the our assumptions above reported that income, per of of of higher $X.XX share than from rental quarter, were operating service net The range. the better-than-projected client income. midpoint For parking a better our came was outperformance revenues, we operations all performance. hotel guidance portfolio funds

Our expenses with our in were assumptions. operating line

While if asset impairment this Plaza. to FFO, rules we for impacting current fair relate basis that million not temporary, The we believe asset below our it's a value joint our joint unconsolidated charges ventures. $XXX is ventures our ] in market temporary did a of justify record Park related of but XXX definition somewhat the extends, unconsolidated Avenue totaling noncash quarter, is as length The Platform loss which in The to value. subjective, not loss is the harder X dictate temporary of GAAP Safeco to dislocation as value. South, XX, market to Fifth XXX quarter, we charges last well as and [ the discussed Avenue

assets assets of future, interest the nature these of business, through normalize improve, and rates the value these real conditions recover the cyclical hold like to will Given their expect and estate when economic we in the recovery. corporate

assets this significant reflects a the we to a a recovery. few original at After values the but buildings gain, later impaired the Our we ultimately, and past charge impairment sold book similar only the value, years of took the to not as experience GFC, well.

I guidance want XXXX. turn the rest Now of for to to our

unchanged to with to relatively per our guidance narrowed from have last the quarter. our XXXX at $X.XX There changes key midpoint are quarter share, We share. X to $X.XX last per from guidance $X.XX range

lease higher locations. Center, have XX, WeWork with as quarter share the from in Madison stopped fourth termination $X.XX at we're First, in they of per income Dock and both terminations projecting paying rent

million occupancy. loss the rent, approximately feet are cover square revenue to portion XX XXX,XXX as those spaces to points basis to a we security is equates about comprise termination income. of The our will lost which clients. They year have We that other per deposits until of approximately re-leased recognize $X.X

net interest had our anticipate than approximately by higher the and new earlier mortgage $X.XX previously we interest expense expected. we to per financing million will due Second, be $XXX share projected closing capitalized lower

our repay negative million the We XXXX. The expect $X not assumptions has expiration and is February, on invest remainder of the equivalents we bond beginning to performance portfolio our in of funds the about until funds the at arbitrage and the for changed. cash

we line expectations, occupancy execute described, in with Doug lease terminations, our continue leases remains outlook our to for As of and stable. the net

have will ahead add during that we XXX XXXX XXX and Kendrick deliver we Gateway, next XXXX or and Avenue, XXXX, into include Boston. Street, FFO look incremental developments year. CityPoint XXX As will several View Pennsylvania that delivered in XXX These XXXX,

earnings environment trajectory earlier, described we will negatively interest higher persistent I as that expense high rate our will XXXX. overall result interest in expect net However, the by in be impacted

We guidance on quarter's will for please That formal the detailed for January. XXXX completes provide lines open you up next in our can remarks. Operator, call earnings questions?

I the our question, of Instructions] from show [Operator Blaine Heck And from line Fargo. comes Wells first

Great. a make about then things need those needs been happen to of that investment environment guys have not, talk if opportunities does we there bit general, and some in just shake for. I little any to a more? adjust seems acquisition how are what signs further when the that to And might do lastly, loose It ways hoping or well-capitalized still investment Can have potential like including are opportunities that investors, haven't the more yourselves, And you to seen attractive any pricing from emerging? risk/reward sense standpoint. you opportunities happen? much guess,

at Yes. crack It's that. Owen, I'll a take

of get do I given clients things described, that. particularly financing, and growth think if things. One, think I economic what's And remarks, of discussed. our financing? So investors, a how financing are that happening concerned about X second, any, the of then lease-up debt their face, as I my mentioned are capital, much, private underwrite the right that, buyers like as some probably uncertainty their I as they not can that deals lease using in now, are I small, cost they and lot

and think, restructuring are I tremendous because of first be happening, So are the what leveraged I all do. going there's their there think with of to the due on all, not over it's on a but amount reported, discussions lenders all that coming that's are in loans generally. time, It borrowers may in definitely market activity

active, be behavior rate more do mentioned. transactions. I those a that that, might very stabilization be buyers comfortable So on be get lots I because for I interest think has somewhat the right do of there I of think interest on helpful more there morning buyers to more second, would then are rates visibility helpful do going for uncertainties X to this some to of get the things to actually think now. And to

In just I think terms workplaces, general at a that But there I price which of perspective view today?" pricing think, can interested negative will higher has it's premier transactions drop, there's in, least in create our say, moment say, quality "What because hard we're obviously the into a is, at that the over for much of view building, you out I don't the how at not lot to office space think look to of and irrationally all which opportunities spilling BXP. the the our is is, for are on

comes show Yulico I from Nick our the next line of question, And Scotiabank. from

down the for of analysis? impairments sense was much the impairment any I values may that that in feel have hoping asset if in were get changed there's a the JVs, can for unlevered on how terms maybe we

in about information And that from the change in accounting are go it perspective, based that there stopping to provides we what supplement, necessarily felt our that of the to an net adjustment assets don't of we equity is think construction. talked in our the these make our needed want XX, those don't where this kind values than Platform right for last can I meaningful reflects Mike. prospects we we're quarter, our rules is consolidated joint but accounting upon other is ventures. that. Overall, The which this you a now, I through supplemental determine change those on in is assets information Nick, Sure, so details

than we every look for rates ones, kind at necessarily we is a are to of at rates, to had it longer do more or And quarter. not of every joint the and to the higher ventures, us is other our like not temporary view -- The one to basically. going this that high, be and year looked like, given our we going these it's is be just

we of other ones just were there got And at and everything looked so X tripped. that kind

actually far, clearly kind looking start reflected those smaller. Platform if you're on by pretty which for deal you it, until would a high, to discount rate, significant X flows ones you has the development other the at of were value. XX a is biggest we because the development And going one So the land discounting use build rate impact a that the those. cash was on

I our Kim question, next Markets. show And from BMO comes line from the John of Capital

another X.X million year your square very happens talked your feet. prepared despite in you be average. expiring, feet favorable basically about backdrop, quarterly remarks, of pipeline square That a year million Doug, is X.X stable occupancy remaining to next your

known any to of WeWork, to was out tenants occupancy you breaking see that range? I anything else, move-outs what are And next that a XX% will XX% that wondering there headwind be year? So other besides

Yes.

a and being no difference tenants move-outs there's a headwind. So between

So at region, Manhattan next San square we that Folsom, portfolio, feet our square are we the have XX,XXX at actually that's City feet portfolio financial out have tenet on we some Coast, only a greater feet don't out XXX,XXX XXX,XXX the about not we're have is right? So because feet or which Francisco, on just smaller plan significance going square couple couple in or year joint our moving in square challenges long we've portfolio, those their they difficulty", space ultimately, only is that venture of those Myers feet are that XXX. about from because financial we're not already ones & expiration. ones. out, WeWork. to de Trulia, expirations a expiration tenants, XXX,XXX in square moving large really a Square covered other with our square XX,XXX O'Melveny Times and Zillow are obviously is feet, in XXX to that any XXX,XXX than are space. going the of where moving but are over potentially, "in -- having our up minimis. The Princeton building term Tower, and tenants of to XX,XXX are sorry, have in there and -- about New are lose the And of or York year and then give at West be property who nature business that they're, that the -- There to XX,XXX There seem enormous in aren't But every

comment. have So will those today, our available in or months be space different driving not and, It's that leasing, in particular that's leasing on we lease, roll knowing until And months the and typically and periods it's see meaning, looking not providing that whether to book time, tenant of X marketplaces occur. tend leasing -- do why build-out stability occupancy build-out. X extended, going those our we you'll but We are be kinds typically involve at can't And is those in started or this, we're in of where out a assets we months, X we do. sort any there occupancy particular XX we not of yet large or our revenue increase statistic, that's over XXXX. believe, in lot I of that, to not which and therefore, service grow leased, a sort

signed. it's our impact so occupancy, to going And are leases the not but

they're period do that of are kind of are XX renewing and those we renewing next a And tenants relatively second short leasing months. meaning, hit. the immediately The time, in

we're expiring XXXX that post that for of leases expirations. years type be The leasing in may is doing the third

deal did for example, And XXXX. foot I XXX,XXX we the square quarter, so was that as an which described this

the this period in in, it's but volumes, enhanced to in NAREIT at of it's -- believe, going strong West and the is other analyst to presentations made at to leasing occupancy. up relatively a continue for and get suffering level where our that occupancy that we're meetings, short I So sort which calls portfolio is we've be will in that Coast really, said is that drive to our the opportunity economic one-on-one term. I've the our be

that Embarcadero terminations the West our XXX Folsom at Colorado and described Center as and Street of just we I Madison in some what and because at we availability Seattle Center So lease have in that well space available Center L.A. of at have now as market, the in

of going of at to volumes XX% XX% then we we to treading we of have have some moving space sort up. that particular opposed are X water And the bigger tenant where we're Those outsized sort have now, drive of quarter, we're to as bit because but that which we level. out, may making improvements we're will an degradation of this overall little growth, of marginal opportunity a is really in sort make for it a and blocks are terms

at look of So that's sort of the state as our XXXX. we views

question, of show the next comes from our I Goldfarb. And line Alexander

in talked that's release, extension your Hudson, optionality guys MTA the loan In the time, And land Hudson. until site. you at under for on the in your February same stake development. X 'XX XX% about articulated question X So the an on the

would a Hudson the the necessary Just looking given Park Grand up just of challenged the Central, size to economics more on be rent projects, at MTA X at that seem X that like the building given the lease winner like to Avenue, site focus the of building. trying given just the seems whereas deal

on of with would sort just loan the optionality, you as take as site? MTA instead maybe mentioning of upcoming MTA think is exiting about forward X should the not and that the proceed that that guys land So consider Hudson, would guys that considering pursuing, you something we you

Yes.

Hilary a one would to Alex, this comment, I let you most this. following winner make the So detail the just give is versus I'm is, Doug. is which other. we think on going the don't

I those terms other and the clear in think it's associated something also going. timing the with challenges that deals with Hilary? probably demand we for space new I'll shorter are opportunities associated the let get the going. But buildings getting one than when might Hilary actually of in describe

Thanks, Doug. Alex.

XXX,XXX square Boulevard XXX,XXX very, foot are currently in is Madison square Hudson opportunities. as foot different the it, X million XXX a So noted, the building, but design call whereas Doug buildings just still to is X.X very let's building. X process,

the currently not could satisfied So in market some that demand actually by Madison. is of the be XXX

that that cost a Madison. in market. So at million square Madison, client range base on acceptable is there to the To plenty return demand question somewhat us in different square distinctly building among tenants commit make. The to prospective footage they Madison. who's and would as the this environment rent But that an opportunities in or development. a by to There's the are takes be those like at clients would And generated down feet, that need time the project clientele segments few looking that them a point, opportunities for launch and again, clients market serve building, constructed of have in for XXX as different those a willing to rents the order capital comes are decisions to And are build actively space be to to view at clients really pay market to definition, needed at can larger than XXX I such those well. what willing Doug's X prospective smaller. of XXX to the

Doug. characterize So hopefully, very, I agree just question. the other. opportunities. But that answers very as wouldn't than one I They're with your different better

I from comes our show Michael from next Citi. And the question, line of Griffin

what quantify, sale. of in buyers your I'm you and just I you remarks, effectuate assets potential IRRs to be for to if you're on any would these sales? where of are order prepared pricing curious, for of in considering looking you some think at need mentioned can kind kind

varies, depending leasing status quality the and Michael, of asset, the the widely, it think asset, I the location of the on walls asset. of Well, the

but definitely above today, I for has lot that bit risks other little and it. think I of asset for quality a guess today assets, I borrowing a pushing you're think cost highest that the and with with XX-year, the an X%, leasing it's associated dropped

I think return. you're looking at double-digit

question, show Goldsmith from our I line from next the Michael And of comes UBS.

commitments in business. not accurately may traditional cautious about in of BXP's indicators in space many how the you tenants Owen, on remarks macro are prepared mentioned what's your going the the more on

different the at accurately different so are that you metrics and that we do now, monitoring that along you're reflect the What might more cycles ones drivers. follow business think recognizing home? So can have

the recession, companies, office that's of and operated confusing they it's you when because less because down, are when cycles have generally, slows marketplace that's have have Well, you something traditionally in so down what leasing been how lease for and I this part -- a think is recession. company's earnings space, a

jobs. And lot All dig different. statistics. But confusing it's because you in earnings, quarter their employment look of the It's statistics, trajectory, indicators the and is it's negative. look a economic very our it's you of clients third related is it's it's the into those lot then been growth, office-using creation Here, earnings -- looking which job the if what a if consumption assuming at, own negative is are last at favorable, year, negative. isn't GDP for

So of that is the driver client behavior.

about you're are coming and contingent think up what upon businesses negatively are, your of going are be many business is impacted lease rising a your some uncertainty and your If the of or CEO very space thinking rates you're you and the economic the future company, that decisions requirement, prospects in to about your by of environment. the

So backdrop. that's the

as activity lower that help. generally rise I would our leasing so to will rise, think it. think And coming your I expect back think certainly question, will And I I rates with earnings

that Michael, is of murkier. corporate activity And it are just to growth. is typically business is the bit job a we best measure relates Doug. as job in little that say And I the this would growth

So categories, would You basis. job announcements at going by favorable leasing do, the office clearly right? have to I be going going institutions, environment not start the companies industry start you a really government get employment And and as to to technology for to say, talk which can but more, see be. about many you broadly and hospitality you see bit, technology life fact, are or of but look conducive of a specific into and on those some to the numbers, the up are you the a to in sciences services or things, listings office, financial larger forward perk financial to see hiring will start

show And from question next the our Barclays. from Wayne of I Jason line comes

you don't remarks, assets. You of expect said all in your their exit prepared to WeWork

when number And that moving at termination looking then of deposits good to So wondering, WeWork forward? expect stay. think average months Is rent. where about, previously just you you said to a X security that income them

or is where productive conjecture to to they they and have going do where not into they going I'm their it get on WeWork -- units where don't. So decide their

the Brooklyn. have rent San in we with Center at other said, in X Mike of moment, XX are Madison And which our locations, paying Seattle, Dock which stopped and locations at on them, Francisco. in X are As they have

to as the they to back. or to decision that's universe, with going think, taking I whether some take So do, and and/or to space have not going as to going whatever have comfortable make are then propose to to the time, the we're to the it what to us, out they're going decisions is we're figure and they and

So and to about they're impossible you, to they're security. not it's I talk me where you going going exit think the tell that where exit. for to Mike, can

Yes.

lease is we're that have way going in that for We XX We have on of lease deposit, that below But about I a to day there's thing client security that collecting If termination. is, to deposit that a defaults, it. client, sent add Center income quarter Madison X might try the stay and of and the described. on the that if I that if termination execute One I X you're also in we guidance, the we think is months. months security. Seattle, out pieces correct at the we going their we time. The there's on, lease we termination security with I income period the mean tenant another X booked or the over said that to we termination in would get to days is one the fourth get all determination And amortize be that, we before, income. to because space market. -- that

in So book the there's what that sheet, is our take off And balance to called a we rent. fair income. as adjustment to value that order

noncash So at is that that's we either able we fair higher of concept. income that to natural at at get is space market that kind a maturity, this be termination about half value will space And that concept the once of rent. or termination a back re-lease

to So will able hopefully, be we that. do

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

flow trying back, would you in get to stabilized on from sense yields an as Austin addition to I'm to a any to then new cap a markets. need circle deploy implied just San existing of guess opportunities you to any I to cash to markets from and you wanted rate. And distressed of, new order the market X% take like, peg kind north just say, XXx just capital Diego to BXP a be, your I where or opportunities. given perspective, could in Owen, of those the trading

come first second the your question, back to and Steve. first answer I'll

So we don't think any to we need to go new markets.

the on one very a have that's Southeast been actually in that's talking footprint are markets the which of in is We the years higher Southwest X have our that development about several many rates our now, because vacancy cities, of all areas in on. things of new certain significant for of core going core and, the and we fact, going than

see a So our a need we or of don't expand to footprint. reason outside

likely so I unstabilized. think it's market your assets returns, on focus to we'll segment we're premier going the and, to types back Going about question get of the involved that are the in that of

acquisition requirement that to So would way a is the at cap think is I'm it that but total return would I that look way the the returns. total at it particular look look not sure pushing on And at rate, we be, return. double-digit to

of our comes from And I next Burrows the Caitlin question, Goldman Sachs. show line from

opting Cambridge you're to properties mortgages million of at unsecured repay plus $XXX guys debt talked XXX. with how Earlier, the about collaterized you by SOFR

secured I just were of bonds. when that Was beyond BXP rate else? for in mix floating did debt of mixed it kind you you And consider opting So price XX-year considering debt guess, price? with anything what or decision,

XX-year today? So what think you pricing at could do issue a you bonds

secured a lease the Look, and we how when So spreads the assets we're for Mike. spread in long with to credit going than from get better found all different this refinancing, we decide bond credit can terms, is market. we evaluated the what the we markets, high-quality the markets do is very

now So area. years, for years XXX XX about is right for X it's probably our spreads of XXX-kind bond

lot in a saving credit So spread. we're

rate we doing have I The deal. a is opportunity, floating other think, we're

fixed that. we're the swap opportunity to it it. and have We haven't evaluate, we when fix do and We if do going to via

that what's on months. rates be markets, look an If XXXX of if the we the of because And period is and between interest going As fix dropping it floating. XXXX, it at over we SOFR opportunity evident the kind may going that of significantly time. Fed in next we becomes period see fix there's may some to dislocation by we with of keep sort to swap the a for

floating So I think that is prepayable. flexibility mortgage a way. And rate some it provides also

X years from So if can debt into a the that market time. we long-term this at better fixed gets for prepay rate now, long-term deal

So it when does decided to looked we we that have this advantages some financing. do bank at

And Upal comes the I from of question, from show Rana our next KeyBanc. line

Doug, you remarks. sublease went through space some and availability the your in supply of prepared

environment how competition these even someone your with a elevated of though sense And else. at supply today. markets, between more maybe, may sensitive others the today's potential could direct your it in of trying at Do you of and spacing premier buildings? have they're be of to some or to space have is to price the levels something being in Given look of tenants a tenants not them. I'm a be much versus, lot deciding your more and building sense potential choose your available versus if buildings, be may looking tenants why get today

Yes.

there because of one allow refer sort they that to this I to going answer, questions I'm they the more -- will to will that about of regional our passionate as sublet I think be responses. But So the direct their be are in is I tell what of either layup teams is part would or space is what literally availability conversation. are not And have many that many, all same. the not you availability that general, buildings

opportunities a like be. to building, And of Street, about asset and that a an surprised the small between how views in you're the you D.C. and XXrd is about Park be has so in you getting would submarkets, market premier talking CBD universe Washington, think down Avenue XXth micro may of as or at Street

I So about [indiscernible] Rod Brian why associated with Boston. let availability And dealing talk let the with. don't we're talk Rod? of the what issues now about I'll really

sublease lot definitely is everybody knows, Francisco. a it San There's space of Yes. in as

And it some is higher space. of end

X of years that's happened. these fact, where have the a last In actually lot deals over bigger

them they leased feet XXX of it all been own our in example, the available, had have Folsom, macys.com of XXX,XXX during roughly buildings. and Some pandemic for subleases.

not of quality got the on much that has poor high So there's good is attention. But and left has it either no got sponsorship and it or that attracted some out by more there large, with has weak space so term been sublessors. it's

with. So sure. interested they're compete in those to spaces not are types of to with going any very for difficult, those that's go to compete not to If going not spaces going We're building. and tenant them premier is

just locations them sublease. in now. There's thing. underwriting of time lack think I'm they do of the little amount capability expressed right in a they're echo night not the brokerage a to with dinner and last locations had just in of, fund happened I top-end people to our that seeing tenant clients, the tenant sublease rep market their long And appropriate Yes. I also issue, the landlord's space premier for review. only lower same each tends And that to fewer a time. first would people rep to the same floors and desire question this most of And be TIs. really which it's and was, are hasn't of the clients, for trouble having with

of our from the I Street. from next question, Dylan show Green Burzinski comes And line

in looking going environment? comments opportunities. certain acquisition guess guys that about on capital back are at you're today's markets you deploying there excited Are I just getting more to your that

our a opportunistic is we a is and process. we set, is which think specific this markets. And of The investments, that more a way perimeter, process down about bottoms-up in terms have, which top we X

So we're activity York on easier our in it in than to for underwrite depends leasing see West is being opportunities. That it's said, markets, remarks it results, as our just capital we particularly East you Coast and Boston, everywhere, open in heard all to in opportunity, and Coast business from and allocate market. want the best our and the our to New you've

that challenging we would deals in more would on be use West the So given assumptions the underwriting obviously Coast the behavior. market

that in going structures General requirement, that currently to which between, Fifth little were able and question you Madison, area Madison the in equity York, for is in Hilary, would way, the the both that's Hilary market a capital of the let Street, really, sort XXX potentially demand in Manhattan. of market these just means in to to challenged one far mezzanine preferred want and then by to strongest That's Owen seeing in Avenue I to able want what's comment demand including call to able an and Lexington, have put why get I and what on XXXX. overall as going are by country. There is sort I'll the about which, the Park create many acquire bit mortgages still Avenue. And going add be my it, a this going we to under. just be York, capital the Bs were are which perspective, that to maybe Building that's buildings of talk opportunities, Street New District of market is were thing acquire of to the opportunities going why this, these to Yes. no are same not XXth there amount equitization Mike that which level, buildings, said, relative and -- to is, to from Motors to, Park XXrd operating on we that the and you the there's really as And Avenue on are refer of the we're New in resolved may opinion, replace

Doug. Thanks, Sure.

putting support Doug to and the the is or their rationalizing, the as into of a all Building difficulty Park having Avenue submarkets, financing on opportunities. mentioned, Corridor, in there high-quality buildings to number that, So really General capital Motors are assets where really desirable are way the up underwater leasing

not we so of know commit They to we're And a know that from -- the we're that strong we getting perspective They know sheet. capital levered. inbounds can of really a over have clients balance leasing. that lot

only And raised, that's consistent I that the where our are benefit. situations quality own. point there's of we opportunity already those So present to watching would which really that are again, with premier in highest a that handful we're workplace, stacks Doug upside Owen for be us. But potentially have to what capital may tell we an in you, would at situations, assets we're interested Midtown enuring down, and least those is tracking. the

line show from comes Peter I from Abramowitz Jefferies. question, And the of our next

people of potentially to pressure mandates Yes. office. as mentioned more margins have peers and have operating forward, just your are going Wanted return-to-office an on the more in effect some hear,

about Just wondering how forward? should that we that, portfolio could potentially, you your for if think talk moving about

going be We to cheek. sort any don't have of peers. I'm in tongue

We are in a last occupied different for very the buildings operate fully of who we've an our buildings are. couple that And years. our way. we we been operating expectation buildings with our are And

associated our our to their desirability my So burden rates to the number coming Will how how be labor how opinion, with weather-related the municipalities atmospherics margins and will in the provide on reflected that's to are, increase so do union return out? right? as in are, valuations markets I desires of What be going impact to is valuations to relative will their rates. events impacting what to relative of occupancy, the work insurance will no continue insurance? their and way the tax janitorial work an the their margins. because What challenging are and insurers on to for that there, of will increase And clearly impact which to contracts have have out sort would refer down,

are there margins. of on of lease. on All be degree over leases to net have an base to that growths triple operating have pressure because going or period to with either and are the our base those things, on time step upon a are incremental some existing margins operating I is based think, of basis. It's going not They're going our pressure

overall the and your they BXP for until that general, to fluctuated in get very if the So decade, rollover, the the you you my really is really you impact historically, look that in margins flow. And haven't guess have much. back on are high-XXs, somewhere over mid- don't past

So an is that issue. I don't think

of next of our question, I And show line comes the from Camille Bank Bonnel America. from

Payout up its despite Ratio track years. is know deliver this year on of this best FAD one I to picking quarter, So your this FAD

head office using it And growth a us could capital-intensive a such FAD should impact help can As given FFO FFO after you business? factors understand outpaced base, or year-end as is into third we highlighted? the be we there pace generally any how you quarter considering your has considering changes that are how kept

Camille. one. that I'll Thanks, take

has right. held well. really AFFO you're So up mean, our I

fact, In and for X% it's I anticipate primary somewhere was that year. than higher it And be things. last XX% that is between to going X the reason

we year had a lot we One, this that that done, with some rent cash large off last became had burned of year. free and rent leasing that

that were lower. then leasing And So expirations in AFFO. our our XXXX really helped

to less maintain actually leasing we the we had. do occupancy to had So that

So a our lease bit lower. transaction are costs little also

in I it's quarters a typical run quarter, look you would CapEx, not fourth at of X the where have if for really CapEx. see we think CapEx, incremental rate the we first will some

out teams trying I our everything So get there done. are to think

be do the and quarter. But something that we're the $X bit mean, be AFFO I which CapEx is overall, little pretty if our I will solid. higher -- I is $X.XX a what fourth think So in for looking guidance at, would you like think

but bit a yet. catching quite been due basically than completed run to has up the that items rate fourth been, quarter of the lower it haven't little So in on is we've CapEx kind the planned,

next show Ronald from the Stanley. from question, I Morgan And Kamdem line our of comes

to Just life in segment. wanted sciences zoom the on

pipeline on helpful. what about talk could smaller And you versus would and large users tenants If you like? the comment or middle is looking if can activity be

Sure.

have XXX only the from type to we've refer with life activity partnership single-floor a the want and we're building of looking our that of for seeing be are infrastructure, that. but our significant demand And are, tours building would Gateway, a which actually there, breadth potential at again, science So small all And that provides meaning base of in why Aireon. from as a our in at tenants, we're buyers, science say seeing is terms any space, is been tenants Greater infrastructure property expiration-driven. them the that use to are like or other science goes not of sort of XXX a life from just anybody These that building other our so. buildouts. And Boston X there, not human away that in couple are in a have we it activity, would opportunity Avenue. I that, just consistent is blown marketplace. amenity what would when to tour turnkey they by CityPoint, week some And for is life the shoppers, which then buildings the I provides, every client XXXXth they right? They lease completed.

from and for perspective more of they an are opportunities are successful to very, process. cautious and it's ability elongated very the therefore, capital but related Some commercialization being them to potential people, drug a and hire discovery therefore, added

I would in you Francisco the San the Greater Boston names would think are, are few X organizations. are market XX same as that sort in there. around part, -- public traveling most funded heard have And they or There's for as are you X I that large tenants are of well ago. those would probably out the organizations privately a have months say, There

And they make to haven't decision. they space, any postpone. a a or and they time, at yet Looking for make to continue could, decision could

was, So 'XX where back again, or the XXXX, in it's early a is slow 'XX demand explosive. demand relatively the to and was call 'XX XXXX that were it, all process the demand we and experiencing in like relative it just

as description underwriting Yes, clients. mentioned, uptick couple. a seeing. tour on the been weeks, of seen huge and terms by quality, And XX,XXX Doug not we're encouraged size well, but midsized we've also, for the have encouraging in last over XX,XXX what as feet, then of these to amount would of add, is Doug's of we spot the in some I Boston, X

the I of comes line And question, our from show Deutsche from last Bank. Omotayo Okusanya

more go your on make area commentary might Any much think would an could do you somewhat uncertain, outlook area in. you into you it's ] make about if we Is this still as not XXXX, lean comments quick you just Just life be sciences. an any as [ may fundamentals into appreciated. and where

Okay.

assume to you'll I'll just, are meant made not that that I'll I the just be So -- repeated. comments

for might going in economics When a think are would there any we where about to fabulous looking which we have relative demand, let at start any in point, marketplaces has the on Therefore, science land, are. But of if our we planning have absent me life starting which the science that on lab no building. depending were tenant the in there's want there to to us be consider we or starting anywhere given buildings not some "Hey, new the to will there's opportunities different some virtually expectation Those a said, is actually office what the be life is XXXX, to we But demand. location, is being build science new new that science advantage" do basis tenants pause. meaning, XXXX, that are this our demand, places we portfolio. where current some a take where of So is we of in up that, portfolio existing to consider no would what in our installations, allow infrastructure There you couple life you light XX,XXX see show interested square where market say, and putting "cost existing have sequentially tack, you We science are a particular research?" absolutely attractive how it. life the a be science to doing life activities organizations the to us the could get credit in that to feet for our be heavy conditions. That platform. construction short to economics company. of relative would building justify in buildings upon life term, to

show, line Fargo. question And the a from Jamie have from Feldman we I of Wells

I'm since I if guess, ask last, [indiscernible], I Great. can me, you if humor maybe two. I

potential think how -- out New they First of conversion are about it partners secondly, in do saying what mean, is, capital you difference wanting starting XX% checks Just, think time? work there Francisco to Is over here San then more that markets? to partners aggressively? I office? activity. What saying, plays writing to from XX%? And more to mentioned certain of like Are in are put a turnstile York, That's said meaningful activity? terms capital money you is you at its back

Yes.

the driven Seattle, the it's just and at Bay the So think I Jamie, a West L.A. I'll crack is take the workers all by in base. have slower, said, to the and going slowly. of about is having Coast, that and Definitely, just technology say the back forceful it's behavior client less I is primarily been office. That think the and to activity Area, less increase policies continue come more increasing, They it. to activity well, as prescriptive being actually, I'd true turnstile

your So of equity. the was part -- second private what was question

more limited there That's the look, I certainly today equity in So interest industry office. not seeing activity. private generally you're why much transaction say, would for much is,

be is are driven mentioned that I family deep seeing financing. offered the my it offices being being That the in investors, remarks, smaller not all and of in market are assets. And discounts debt most that the sophisticated investors As at are groups right that price, needing -- typical by kinds being there said, I interest asset the think in difference between workplace a for equity office understand of the do institutional think those premier right private the do asset. will I and

in an They're not out currently trading, Jamie, sort add-on at, eating looking get be thinking is capital there's for and aggressively a to this What sardines, of much opportunity these then thinking and that's is us right? at Yes, Doug. higher are basis get my the trading office, about about sardines. would

sardines the in in general business are in eating We our portfolio.

on years." saying, I infinite is, a I desirability and the we're long-term fundamental. basis, that or duration a Is a XX nervousness associated invest partner terms jump with more want want for or because or in So to XX the XX looking today, "Okay, at these just of finding of overall capital to problematic money in of certainly things now

of some, to globe this conversations. are However, the various James went And Owen constructive summer there and had right? Magaldi and parts the

there trade partners are conversations the it's from transaction you consummated We of slow, with be And constructive are there's world his some that a opportunities. And capital next profit. other for we of is one as Owen we of of are now the other United process. a long-term into capital to States, would that can't looking coming some said into as quality our earlier talking right BXP with are the original that having would, capital slow in I the in of look that about capital that think, couple parts will tell months. institutional not comments, those partners kind get JV a that assets putting at capital with But I to

that time so our what And is on. attention and we're focusing

question, from so line Richard Securities. the of Anderson next And comes our from Wedbush

logic, Jamie's in I'm maybe last. X In I could since questions, sneak

you if want. X

be assets either is or the But could advantage dollar focused if that back So share individual at you're dare some portfolios of to getting that could sounds on. like I say, complicated? of just pipeline public. the Or of sort there private take to I prepared too just, mostly it you today? you're or looking value of get marketplace, that companies, smaller Owen, does being wonder And opportunities

as premier going not XX% I'm rule I at workplaces through disposition portfolio out, also in either been the our BXP asset through Yes. but a has curated anything to activity. reason has do acquisition that of think time, the its portfolio development one

more owners And assets And I and value fluid. is So put I I and our think that on with we're it's -- difficult to assets we're number think a a be hard in is the activity likely. are what that mean, these single interested think to I to in put to dollar we really looking dialogues it's we're interested asset at. on. job dialogue in, of lenders are

no closing questions Thomas, Owen to the for the CEO, show I further like At and remarks. I to time, turn you. Thank would in queue. this Chairman back call

Thank you.

in want formal more everybody attention thank for BXP. their remarks. time, no to interest have We I and

concludes conference This attending. call. Thank for Thank you today's you.

You disconnect. may all