Boston Properties (BXP) 31 Jan 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to BXP Fourth Quarter and Full Year 2023 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.

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

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

from forward-looking it press any will BXP could reasonable statements time undertake expressed the are Although materially believes risks were SEC. Factors to duty BXP based and does differ can statements its expectations or implied BXP's no any statements. assumptions, assurance be with in that update attained. actual results to that release forward-looking from a and those by that filings expectations in time cause in forward-looking not detailed give yesterday's on to reflected

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

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

would free his now Owen feel follow-up, call Thomas remarks. queue. I for an like the over you additional the have If or rejoin to please query to formal turn to

in importance this of good related a conditions substantially of annual the on and of perform and areas of quarter, unchanged. BXP morning, of focus over last key prior described XXXX, us morning and the quarterly commercial remarks BXP's and real operating we return as sector. real throughout specifically to intend brief in negative activity trends Helen, growth market quarters, Premier XXXX. The quarter earnings estate the I've and review focus steady remain capital significant activity for outperformance market After withering my you, allocation corporate Thank their performance, I our everyone. fourth the sentiment Workplaces, important did all continued to despite estate to offices, the in leasing workers for to capital the

FFO provided the consensus $X.XX of Our for share one fourth we all for was per quarter ago. guidance market XXXX, range year of above midpoint the was and $X.XX the above

feet of million We X.X the well completed square leasing over million fourth quarter XXXX, of for of feet prior forecast. all X.X our leasing above in square and

long leases leasing despite remained Over $X XXXX, raised remain sector million accretive challenging and last raise, well we alone, X one equity the largest our transactions completed both of in a closed million over over and portfolio public debt, X equity quarter comparable among BXP the last $XXX year a term asset-specific $XXX year, new private unsecured and financing, completed fourth new capital stable, January. occupancy investments, capital secured markets. which the average In in highly billion private equity new in weighted years mortgage a as the signed mortgage as environment. In in

XXXX. Cambridge, Bank November, and to in we So Investment end leased announced lab BXP in developments for use Binney XXX,XXX sale ground-up interest foot Street, Binney creditworthy Kendall the building and science a that basis life XXX and deliver with is on Management delivery XXX raising, being on Binney year, to is District office allocation the this activities scheduled a XX% last XXX,XXX located in at a of of development that Square is square XXX long-term clients. capital square XXX foot capital a starting of existing both and expect the Norges converted to to

requirement gross assets and and valuation of billion joint closed at the retain interest assets XXX cash of its reduce XX% services. Norges this at approximately in $X,XXX investment and will joint we which venture year, over delivery management or will expect first Binney purchased initial venture leasing partner $XXX on of $XXX for Our of in X.X%. BXP development, and development per has million and quarter $X.XX close BXP's both million, yield will Binney cost XXX a funded property an the in a funding square time. expected each provide foot the

our our largest grow on will honored largest leverage. our capital this and $XXX to completion transaction, of BXP's joint Norges, pleased under have venture attractive are just partner We equity raised reduced shareholders. Upon forecast and important relationship terms million with of and of one BXP

BXP Next, capital achieved requiring assets, different closed in which at the early office. of and upgrades. In venture BXP of commissions purchased currently leasing building complete X interest renewals long-term lease in client the their assets X partners for from anchor to joint These owned one and to X partners, transactions were by accretive improvements, decided the returns exposure environment, joint tenant sparked these agreed reduce purchase current We to wanted interest their X they venture and extension. at attractive January.

a X.X% to as-is the and date with of encumbered deals, years. Pricing for a a completed of XX% a Henderson building, in to million up per and XX million with on leased of X cost above-market cash expected stabilization in X.X mortgage for Business encumbered by renewal $XXX specific The modified for New office million extension a complex and is yield for the square in Monica the anchor XXXX. We purchase foot, XX% fee XX% foot XXXX, and own a Santa on encumbered square maturity building adjacent assumptions an square a rent is the $XXX ground lease, the Airport. a $XXX the property the terms XXX,XXX XXXX. Santa office property XXX,XXX by $XX client is we in ground D.C. due located by option X% the Monica located square the represents The and Washington, XX% square $XXX value. building XXX,XXX in foot leased the Finnegan purchased park XX to Park XXX is in acquisition is for was Snap, square at which client initial own lease XXXX. In renewal purchased initial for for X.X% foot completed for with foot we attractive foot the park cap years, allow and and January, the square in didn't land XX% and anchor in rate years, didn't the of mortgage, a market due fee basis based loan Regarding a million, $XXX building XX pricing per foot Avenue interest million simple rate on a the an interest York on in we an the for cap asset $XX basis,

in Park closing, $X, Santa Monica joint South interest that expenditures our mortgage. Purchased secured subsequently interest partner initial conjunction their Park assumed in Lastly, in per selling over is a million, the using XXX required at a redevelopment asset Midtown units is XXXX South on BXP time square with capital Park ownership XXX share and per had building million XXX buyout, and of the and the $XXX XXX,XXX South foot partners, by X and Avenue pricing funding venture XX%. $XX cost. foot funding is priced the a OP funded South fully represents time. At to purchased Avenue at in projected square This $XXX XXXX yield encumbered remaining by BXP introduced who BXP $XXX for their Business financial in in XX% X.X% the venture a redeveloping building million bringing obligation. investment Park $XX stabilization interest Avenue projected office joint of

high-quality summary, these X assets in ownership and So well. position increased invested million in acquisitions, BXP we only understand materially its for $XX upfront X

returns receive of will we've to FFO ventures, project from be well Binney cost Street investments the per excess We in share expect joint the of of and approximately capital equity $X.XX XXXX. that in total the from accretion the raised projected

West market other X occur very conditions. There cuts in interest to Though workplace quarter over continue arrange, office to capital a of but ventures. of capital. The financing quarter difficult picked extremely joint $XX.X rate hikes transactions $XXX lease favorable than on the is XX% exposure pricing in foot, more the estate rate third secured real are buyout X% real estate a volume year sales X in our for ago. Interestingly, making in up U.S. last cap private the the forecast million equity prior estate, quarter. or XX% to lenders L.A. anchor cost announced a a office distressed from square last existing broader in capital start year Binney their up total went Side to real over quarter, quarter last are comparable likely asset up could by $X,XXX and tenant. reduce from confidence Side more more the billion, economics Regarding and a the few that to buyers by is Street user, completed there XXXX, transaction to and a sold premier late capitulation were sales over volume office to XXX% by owners and West from activity, and from markets, influenced restructuring fourth West XX% for Fed's

Now for priorities turning to BXP's XXXX.

and competitive advantages and our development. over in markets class many to the premier and time. Today, the with share sheet the build U.S. the and commitment debt the for asset in FFO competitors office balance preserve decades our intentional overriding over strong to BXP of several portfolios is a to sector, equity Our to goal quality capital our are the assembled one private acquisitions workplaces and clients, key as leverage per disinvest advantages unsecured of access and of highest

expectations with from our facing said many portfolio for preserving way capital-intensive is lead to diversify medium-term last this we his I be owners and to investments cases, focus second the both activity. comments limited from in be slow near our lenders class. We and to new Our secured addressing significant occupancy and asset leasing office owners XXXX described. XXXX to will some back markets existential primary and leasing occupied, given additional intended over given capital focus for opportunities FFO. for leasing leasing and office year. A Many property. quarter There lease space this risks, investment our in started, offense vacant is has available of the owners expirations, build institutional time focus will investment shift are away will on financing, deployment, and new XX% and are our building and, Doug X leasing, want on

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

such development. workplaces this XXX During downturn caused Street will the global financial XXX the the GM Madison, the for time. A Street, by attractive BXP premier building, was last XXX of year Federal focus be third at able new and all acquire as crisis, us at market prices to area Clarendon

We second projects in year. designed possibly of residential X raise control opportunities have and for joint are capital venture these X and being equity to we intend entitled development that under the the half

also workplace outcomes pre-leasing, are much to are developments. though sites clients any be anchor yields launch discussions equity venture dialogue in phases development to with We new in less for required control premier certain. Significant expected Manhattan, the the have early higher and continue joint would under and

development and are We significant on pipeline also projects These Street market in advance the aggregate attractive aggregate near-term projects joint that venture, upon we XX buildings to closing and lab, billion generate investment, conditions. BXP office, sites of $X.X square after specific to for based reentitle retail feet million to and yields use delivery. with XXX continues have remaining the $XXX are BXP funded execute to viable underway. million in X.X and Binney several with residential a approximately be trying projected

conditions X than We billion with $X today of developments. selling of before BXP and be XXXX, displayed if asset square sentiment, science large-scale X well and pandemic our are in opportunities in strong per we in assets space, at but FFO sales a stable in life prices, dividend, started resilience market launching the higher XXXX. occupancy for feet raising will opportunistic million with the capital and attractive We Market present capital negative of over face fully through favorable leasing XXXX. was are it over stable unfavorable interested dispositions executed in summarize, share generally pre-leased themselves. To raising is

is assets So continued well we dislocation. during both year market, to and market share the start BXP time gain in clients this with of challenges the leasing market in positioned

month, As he a represents more Pester's after last call BXP of closing BXP be service. This as earnings is remark, from today last next a retiring years than Bob milestone. will XX

region much, Bob. capable Francisco Thank grew Bob's very you San Our significantly under leadership.

of missed You BXP. Over us at by all will to be Doug.

to going expectations portfolio a in to everybody. we of morning, occupancy. XXXX, X start. In Bob, silence After Good early for square leasing our feet moment Owen. about our Thanks, million baseline flat established I'm of

essentially finished part year so the our As XX/XX/XX, in X.X executed more year. On the feet our it -- included year, Owen renewal XX.X%, quarter million only forward our fourth ago, during in excess Business expected flat. with feet XXXX, was lease Snap square over The Santa foot it about XXX,XXX of commented, than transactions. expectations. leases XX.X%, baseline portfolio we square pulling of that early And occupancy the and in-service and with executed interestingly, Snap at XXXX year of ended we in some we at was square XX/XX/XX, we XXX,XXX and feet, just was Monica X the XXX,XXX a X over primarily square was the Park. We

portfolio Our so is XX,XXX occupancy own is era. Maintaining feet, of XX feet, in current basis right. amounts environment in-service square an XX accomplishment a million its portfolio in to square the sort points rounding

XXXX in where of the at on Square, feet feet they all XXX,XXX Folsom, year. A own we XX% X half expirations at lease and XXX,XXX in XXX,XXX occur square are Times feet and comments the large square XXX square at Center, few WeWork. first Carnegie Our

discussions XX units, X sites San We are at and in Francisco. our in actively Brooklyn lease in engaged X our modification Dock

will that impacts the assume million and positioned his is overall bankruptcy paying. in we a as that Mike of It they property is result expectations $XX same-store smaller footprint to rent agreements business Our work XXXX. reduction currently occupancy a the obvious discuss operating are emerges we reach performance from in an the for for that success.

Midwest business coastal technology. The pickup landing potential a assume [indiscernible] as U.S. that 'XX? basically BXP in overall continue see we it's hard to Operating recession, labor statistics, U.S. envision but added were most look U.S. growth experienced clients any slowdown everywhere. How absorption. only dramatic the to employee the The of cities pickup markets, layoff in market employment may markets the categorized XXX,XXX included market leasing leasing not as a.k.a. for announcements major not office and business industries, a one thinking enter job absorption stimulate across but will economy for negative about the in earnings If well recent slowed, of X% the and just you 'XX, related 'XX. We and to In away. true additions we a office-using services, to broad are space no This it are wide particularly has Sunbelt in going at should and macro right in will to technical reductions and employment. soft economy improve environment, think is clients optimistic our variety the the professional this lead while the in jobs December, using jobs. pace the as

market we're BXP's to occupancy. recovery not However, maintain counting on a

We on XXX,XXX dependent technology more technology clients and growth our conditions workplaces. point. in technology a in in 'XX prowess clients San not, are will XX-year lease very to properties new construction case is clients square Seattle to Coast and property than executing their and demand leasing, cover space. The feet. extension This lean we successful that be their continues East the explorations weak are teams a Our release be forward-starting premier the employers. wide. operating for West as for between West share, and vacant known were on and management continues demand gain bifurcation market reducing premises. Snap are client Francisco, commencing is renewing of sound L.A. in choose Coast to financial how Traditional and lease in times

clients at and clients entities, organizations have the dollars that additional been in round or we billions in recent growth these 'XX. about an are relative space, achieved X CBD but ecosystem, organizations seed square being in Francisco the industry other However, meet to workplace over an absorption all same Francisco, at and transaction in investment focused Coast there There city AI not their AI scale as or feet was on lease an positive does leasing San let's terms on funded Premier. West are can in open of in XX/XX square include from of excitement built early significantly feet discounted are needs. The predominantly require of of in XX. anthropic. XXX,XXX termination million the small can't is AI the footprint Their but more 'XX of acknowledge at San early this from that market, saw the the We available we where the to leasing rents opportunities growing

San is it However, demand in absorption. into demand Francisco all good if translates

other continues active lease demand Seattle exploration-driven have to The little very exploration. CBD than

in Seattle about to part Again, WeWorks well in our due Center. with increased square a the staying extension but second X-floor reducing XXX,XXX company a some as Madison a the vacancy 'XX, Our termination, of of technology by floor in company, as feet from back portfolio, us lease give space. as half technology at of

well. These speaking, City and of are activity Boston York venture and San demand their including our advisers. strongest and The and from that and as of the consolidation L.A., media pickup, to entertainment organizations in gaming clearly CBD settlements West user profitability, will heart the asset New positive are funds hedge concentration occupancy equity, be but industry, space and overall managers source continues is sector fund demand union and is for private contract and financial job be a growth. The industry broadly still demand, the impacting pressure reduction Francisco important legal managers, an streaming specialized are of of which soul there the the

in in want under or teams workplaces. cases, their are In cases, some but growing instances, all premier management, these many to occupy capital and clients they

bank to Embarcadero to in illustrate lease Manhattan, XX,XXX foot with venture a square to the the is square a To foot a Embarcadero square point, Embarcadero capital foot manager long-only that's going private expansion XX,XXX and for other one foot at Center, from. feet a a square XX,XXX with renewal a the a square Center, properties during firm law a that's a Manhattan, equity renewal a investment Center where with XX,XXX is with bank in square completed a an in XX,XXX This renewal relocating relocating we lease quarter, of come foot with in our foreign Boston. XX,XXX demand firm firm

Our Back strongest our urban Center remains Manhattan Town Center in in the assets in our and Francisco. activity portfolio, Midtown of the San cores of Bay Embarcadero Boston, Northern Reston Virginia

leases executed We net leases XX new our we of There expansions XX those existing quarter, of reduction X signed This contractions X about renewals, among transactions. transactions. about feet tenants. square with were XX across lease clients, XXX,XXX XX a with and

number actually were XX,XXX the New transactions majority If positive York City. a of Coast feet. is expansions on the you the The in were Snap, exclude bulk the West of the square and

volume Francisco, quarter San L.A., would in leases XXX,XXX this X York in XXX,XXX then that XXX,XXX Total quarter. greater in executed New square led were Washington, XXX,XXX XXX,XXX area. I this DC was feet, by in square feet at leasing Boston and the highlight

XX, real Fifth XX,XXX expansion Institute including accomplishment square entered lease XXX,XXX for square into Manhattan. again, First, foot square at XX,XXX the feet XXX and lease, Pratt for of executed Avenue, York DoorDash long-term team a at the New in feet a Dock

we quarter, vacancy, quarter, space starting D.C. approximately meaning square New in overall leases this Boston, revenue, down down cash in signed our and feet the the overall that leases totaling commence up leases on the commenced anticipated mark-to-market on rents second-generation in-service The in down our XXX,XXX in-place starting relative previous flat to this on The 'XX. of to we CBD commence Coast they that on our cash West executed XXX,XXX were The the on was feet, up supplemental. cash in was X%, quarter X%. At had Francisco of had still hit in to but XX% the signed X.X% as rents with yet rents the square the reported York, San this end X.X%. mark-to-market flat was quarter, leases of

of under pipeline Our leases just sits under active million at negotiation feet today. X square

of feet. active an to time the at over one only currently deal. in last square We've active number size million deals, negotiation is the Snap have this same XXX,XXX We foot and in square quarter, X.X feet square XX,XXX smaller. seen Comparing we discussions of but included uptick were the transaction at the

to be square our purposes, XXXX million feet. about modeling anticipated For leasing activity X.X is

XXXX, expirations X.X January our so X feet. totaled square total back As million of for X, going 'XX years,

square we renewed it If sort X.X XXXX, January or of remaining expiring historical will XXX,XXX is current expirations XX% million with X, our footage, feet which expected XX% of renew feet, we of have On square have of we means the in expirations. line XXXX averages. our square about

have executed feet leases of square space on XXX,XXX in 'XX. vacant commencing We

what million commencement of flat leases So That's same-store. the maintain effectively, we into year rent and to feet that X.X model is need a space execute on square into to have a about to we occupancy. vacant Mike's during built XXXX yet have the

forward As factors XXXX, that to basis expect points defaults to have as the sticky occupancy at we expirations. into look some addition basis points in defined in we and negative the XXX tenant also XX contractual year, minus to plus year

property portfolio guidance. the These not are we year, and current additions have the the will During included subtractions portfolio. to occupancy in

square example, well of as an projections. XX% as topic of across Waltham light. our hit XXX,XXX our today. And join We're not science continues be the Science in reported that's and on we're portfolio, developments as at looking intra-service fourth as markets of will vacant quarter new to just portfolio our the 'XX, leasing, space activity as entire the long feet will leased our X X Their life life science of include portfolio. Life that of As vacancy, part in-service the the

our leases activity During science which Waltham, square some a no Gateway. In we are to exploration known sequential potential we were have sense feel occupancy of don't the quick and made at life urgency make had XXX,XXX of actually there signed impacted quarter, XXX but seeing clients new portfolio, lease tour proposals, in in Francisco foot a Waltham San decision. a and some South our

our I discusses make additional cost of the that potential want Before XXXX Mike developments to Owen comment new described. guidance, one around

in that less competitive more seeing business. true and experienced but are believe of is it's from improvement this certain not pricing labor, there want projects. has We maintain tenant the resulted lower pricing to work, prices in deflation we subcontractors, material We've that various who size a or in

base hopeful to we the building about As escalation result think forward. that construction costs, that new of moving in we're bids us and is that no pressures longer same will conversation consider part the allow

office that construction understands economics new requests starts. Current office can if a associated To it, very space financing, Silver it's in charge are the obviously on SOFR. of lease don't cuts, the markets. Capital on still [ client Red in potential the underlying a drag new Everyone there void results capital portion timing support a well top higher lenders lots rents expensive will a proposal However, still significant significant development. for existing rate requirements. has as if to margin and ] depth for construction a requires filling institutional involve view new a new but of of and lower capital of construction is infrastructure financing haven't and Construction Fed that goes construction received. to costs the X%, a on projects be you available appropriate from commercial justify to concessions as construction with it -- and our market arrange going

talk time it's the and for to Mike, about quarter 'XX. guidance So

morning, Good everybody. Doug. Thanks, Great.

full in initial with most So guidance the that of package. release, performance, I additional financial time this our in year to supplemental details I'm the our describing plan XXXX of press morning, our cover XXXX and earnings to fourth but included spend our was quarter our details going

above XXXX, that unconsolidated venture feet generate the midpoint square square strong $X.XX share the exceeded range share. So that in for $X.XX commissions we per of last $X.XX of feet XXX,XXX and our our $X.XX within leasing of year Street million consensus. Owen share was our portfolio, this joint provided and X.X we reported activity quarter, the quarter per where by budget is guidance of described FFO full per included leasing in and

in also closing of $X.XX for quarter share we X reasons outperformed with of this floating X-year financing Cambridge quarter, the net our opportunistically of quarter. mortgage the interest When on per our Last to XXX points, interest in expense. interest that. There hedged for rate term. expense rates our X% the our to at real rate lower rate the X guidance $XXX for This buildings. were the rallied million announced fix we We interest December, reduced by basis contributing lower

XXX and XXX earned the as Street the of interest the joint sale than raised closing of we venture the so guidance. These X XXX of quarter. XX% forming the Binney earlier our of items were to Additionally, related increase expected, That to a an cash transaction as in well G&A interest in offset net by about closed interest $X.XX Binney per for costs slightly share Street onetime million the unbudgeted higher expenses $XXX transaction equity. represents the of on

termination the than higher our income which income. Madison experience our with Our million same We termination $XX a to of expectations, from primarily for portfolio WeWork NOI performed million Seattle. terminating Center in quarter, $X income in we line bucket in in from property floors the booked its shift though assumption, was X lease did

property from results. practice is to same income termination our Our exclude

same-property our slightly to caused negative impact the the growth quarter. be So for

impact you been performance roughly flat. have exclude termination income, would the of our actually the same-property If

our and and our higher NOI turn Monica to our acquisitions XXXX the project development on current Owen Park services is slight lower can Avenue same-property summarized of with start growth partners sheet in of so be level, impact for Santa income FFO. lot a On to with Monica interest Business in limited Business high portfolio York Avenue, of persistency XXXX rate decrease in me net XXX share transaction environment So the delivery the described. New that interest to moment. fee transactions due as XXX interest There and to our high to management with acquisitions an impact XXX York and from from New in expense I'm still and Park these guidance a income. I'm XXXX, the the compared that, and has guidance. balance development, follows. the XXXX We going going pieces bear Park of of moving development with perspective, our Santa partner's of so are a that a

fair incremental to $XX highly of are the lining project from former as partners, XXXX derived approximately acquisitions FFO of loss the leases Including the XX% and our accretive, share million well the income as earned the are fee impact components or adding represent straight FFO. Noncash we about from of debt incremental acquired ground per into break pickup our the the per is property by Park. If $X.XX these per additional and approximately we the per offset share. loss incremental of $X.XX Monica valuing Business of lease our share and $X.XX and at assumptions, categories the share, and NOI down guidance debt that's for interest income fee of Santa the $X.XX the that expense

from consolidating We now will the results these properties. be

the from XXXX, and consolidated a and in ventures joint unconsolidated decrease and increase income. FFO starting in NOI will expense our So you interest see in fee

in in our share, the we of of XXXX transaction expect comparable last transacted D.C. expense. is a $X.XX NOI reduction by do impacting FFO. is Inclusive year. share to in XXXX reduction interest But disposition per of that interest Metropolitan per neutral we a the Washington, expense, offset Square Also $X.XX that's property

activity. development to Turning

Gateway in Kendrick investments million These full XXXX. XXX Penn, growth Street XXXX Our in XXX aggregate in are will and development a of contribute delivered XX% activity that include leased. XXXX year that for includes incremental $XXX and

much but developments the they are XXXX, we expect share. commence to to We their $XX expect have our more term $XXX in contribute projected meaningful as we that or per additional million in million an incremental in XXXX $X.XX in revenue deliver million in that growth complete lease-up. In $XX an near be aggregate, developments will $X.XX to XXXX to our to

environment described, dealing portfolio. economic Turning in leasing will have we new space, be negotiation occupancy our a investments, impact backlog leases to the have the And around go are occupancy our describing a this that including to time uncertain of We leasing very projections of the Doug large year. our reflect signed outlook that XXXX. and expect into cautious and Most with. spent leases same still property conservatism. and and as to productive Doug clients continue

expect We to for occupancy our range portfolio in-service XX.X%. XX.X% an of

from negative NOI growth is to negative X%. for X% our XXXX assumption Overall, same-property XXXX

mentioned, Doug for in the discussions leases. X modifications with As remaining on WeWork we're

-- assumes in our guidance decrease performance. these Our modifications comprise assumptions same-property our for projected points XX NOI guidance the includes basis of that

As will all expense interest the XXXX should interest be high expect, in rate you with higher continued our environment.

modeling start of points XX forward in half the current the more than rates floating are curve. drop expect We Fed which to basis SOFR conservative and of year will cuts, is back the

we Currently, May only of swap a floating that's expires term the comprised rate debt billion is million of in X% is total $X.X debt, and fixed and of interest rate have mortgages, of $XXX our currently XXXX. loan

Our is very liquidity strong.

line We credit have of entire available. cash billion balances current billion $X.X $X.X and is our of

tomorrow. million Other significant bond unsecured be using million meaningful will debt that We profile. extension X.X% we without expires no redeem have provisions, our $XXX debt maturing not our XXXX that, maturities than so in changes approximately we're projecting $XXX to cash of

is $XXX funded cash. only will funding need million approximately available of development be XXXX Our spend external that in with

lower The Monica for of was lastly, Park of refinancing York we in our Santa majority XXXX average is rates quarter, mentioned up expect Business a mortgage I balance the New Avenue. And as XXX expense market and from interest in interest roll of our to last XXXX, and interest and the less in activity, million approximately income. be XXXX coming than the will in resulting increase consolidation cash threat it $XX

So interest of $XXX million million XXXX. $XXX we're net expense projecting to in overall,

million drop interest We expect $XX midpoint, in mentioned. of income expense inclusive the higher the interest at to I by net consolidated be

consolidation Avenue, SMBP the lower. and With York XXX interest is be to expected unconsolidated million our New venture the of expense $XX and portfolio joint

this a year-to-year guidance joint total So at ventures of our expense, from million XXXX. increase midpoint per of our range projected interest $XX $X.XX in results over in including share or the

this to last our us above-market fair in requires $XX Park the lease, income to positive I item we Business Monica XXXX. The from would value million ground a Santa FFO project of noncash consolidation impact like projection. fee cover to the Additionally, is

ventures, including Development. [ joint will Park development Gateway have several venture and Skymark the delivering or our We XXX be ] Residential projects, joint

about lower delivery With the by to development XXXX. our expected these of are in $X be fees projects, million

Avenue, XXX they from New no we're and York Also, longer owned. of receiving $X Santa that Monica about wholly now million are fees

guidance is income $XX million XXXX. lower in to and is our So million for fee $XX now

developments, reported $X.XX by $X.XX fee ground you NOI $X.XX if and $X.XX per share $X.XX So income. At is in lower X.X% FFO. FFO and aggregate of our initial amortization, midpoint of lower of $X.XX G&A all termination lower XXXX. our XXXX acquisitions midpoint, XXXX per modest increases of to $X.XX $X.XX from of lower assumptions, from of we're dispositions, higher the results interest from comprised At fair our of an providing $X difference same-property and of contribution these lower XXXX than income The value the NOI, of range of expense, guidance, FFO guidance from our offset a share. $X.XX that's incremental lease of decline

value. That additional leasing confidence and continue So economy. prowess continue to demonstrating accretive times and new remarks. despite the in interest more environment also create investments the and you the lower to economic for gain share questions? that our focus the rate Operator, We're headwinds, in open opportunities our earnings on on optimistic executing our shareholder grow can completes formal and of will to successfully premier absorption. We're providing line at stability workplace market operating negative level, we relative with a settle portfolio,

ISI. line Instructions] Evercore [Operator first the show question I comes Steve our Sakwa from of from And

I appreciate about. I the the that detail. all circle guess, million talked wanted maybe I back Doug, you on X.X to

course the the for target over in need got I this the that's unfolding I those of hit signed that to looking leases you're need the effect of you've year? to of said year order in be year. But to number new number we things you how about And this some think at think that you effectively the pipeline. the do kind leasing think hit I take to that at occupancy year? what point do And guess, the

technical to I -- when a the think and to perspective that, the XXX,XXX will space space Steve. Right X give there over done over that with, keeps to simply that hard that XX-plus really " requirements as at I a we're now, is could from of million probability And space be our which feet the that -- a pure signed of from to that So for to showing question place that I get -- fee or that "occupancy, that's, negotiation that and modify a either including to condition will know is we good vacancy. unfortunately, had percent question also comfortable have going just actual our BXP, very covering gauge, to answer to refer is, handing hard I'm successful about night be that what leasing us are in going revenue to at really that the illustrate that everybody perspective. It's leases, XXXX relative it the the will in of a is I we square under when what which leasing leasing the year revenue but that's would of up hit. of wish will space we're And here is the change what we the tenant? you precise are currently it's

that all of same-store control the how lease that the that's together. number. of can't And comes really embroiled And variable question we is a so it's Mike's because into

think, we we just not think, anything here to why don't we're I -- fair, I but to are conservative they're standing trying know. because So conservative, not that's be backing being,

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

those them extensions. future what you venture timing other the On co-own to longer your joint ] exit, your your fund were your provide to CapEx? for mean assets this major did they related acquisitions, lease X CPPIB does to valuations partners because for of other that target? of centered exit? selling Was signing that no wanted your [ around partners really leases the with And and Or

Yes. made. spark for remarks, that lease Yes, as we the the the I said it's acquisitions that reasons you did extensions outlined. my in And

or each a strategy cases, to disinvest reallocate in from these work, the X requirement came upgrades. building So basically with and, acquisitions. capital some in extensions had And for office. commissions the leasing of sparked partners away that shift tenant a And

thing out, had The point capital assets I future other would as requirements other well.

the we Santa was the to we in not middle the but in the fee case purchase renewal the coming It's lease in requirement. And fee, redevelopment. capital That have renewal, could we elect Park, if of purchase option Snap under also anchor XXXX. up will that Park XXX Business have a Monica project So an that have a because those there South, redevelopment. Avenue is -- of

sold their the funding out partner in middle the of basically So position development. that

future had So a requirements. it also funding

the really So are drivers. those

the value our they this be transactions Yes. to And there following, in to time, is just have relative investing say that the very doing not obviously institutional additional be have sector doing on created want had John, do, to by their that's different perspective We wouldn't going just or them. these which long-term I a are capital what who is investors would at we portfolios. perspective a in moment

excited disconnect between value And excited properties. in from to Henderson. portfolio portfolio, the perspective different. do to for types that these capital wanted excited our means the opportunities owner was Finnegan disconnects very Snap. the really these deploy about We're accretive and current about that And opportunity they're we're we between it So a is away the the created other and do perspective long-term to way. about and signed for we the of from where our with lease we're with our And what looking our of signed that wanted we're they what we lease what what in

There you that in would be the to last acquire think the anything like asked, lastly, we the second that might never. don't but in certainly opportunities other just to quarter. And John, experienced be never volume question interest own, we Yes. properties I what say

major our today, increased actually acquired partner venture us did joint quarter, in because from last strategy in that ventures have obviously, a the Cambridge. And of interest largest we example, from. For they they the these JV different partners joint JVs their And number we is X with Norges.

the to quarter. anything volume but close it don't be think could be So we will that experienced I more, last it

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

now we And hand. steady for retirement. Rod's first, on can congrats Bob all guess Pester, I look

is and of debt be I resolution, on the Doug, X-parter Owen, where just the cents side may able on two. and John at are obviously, One, Boston looking pay up Just, potential equation, off a questions. dollar expectations for debt debt guess your to following Kim's what the

is highly capital existing As or of potential these don't future, want ones that a it's or And it to understand your JV that whereas to you that you the just the whether risk seem put in partners, buyouts, in returns? to purely trying the it issue is capital want view quite look decision? to capital a the be more partners of if your investment just know at versus in guys confident risky, that they just investment

Yes.

it forecasting the from answer we makes were they very we the partners they call, think and But question, of math, some have think great think you extensions I own I we've ventures. Look, in access we lot think able debt terms it have when cases, to the and the our it's extend Mike to answer been would have mortgages and JV unsecured attractive. it we on we financing, on on this think in about existing as answer. to accessing attractive general, it's it side, we committed company, been to. in And the sense. joint and the answer very we our most shared accretive with a But very Alex, it's do that that with or your in your refinance that we to that question of terms to finance how thought you should -- returns have primarily of our and of and know, to market we

of more these for on an also from opposed different the enthusiasm little different is bit just return. I'd position. partners, So strategy our as a that made in make lack related X result, a come These additional to decisions they were that they are suspicion, to this. as a a point change and

return investor a and they on been has in them. long-term a project, good for been partner they XXX and been have made in the and So it, has that have very successful

been strategy, period this a So time good was been, very in it to would a be might done look, of we've time. this also a long Maybe change but in maybe We've fine. have for it exit.

Monica other clearly they think Business definitely, to the Santa of think I the that more was X I on strategy. XXX, and were Park and on partner deals, in the a newer JVs, change

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

hoping Why was in you decision long-term you Santa could I for little to a to opportunity? And an Park. reinvest just if more Monica it's get Business feel in any there? give bit TIs feel had you just on the how that terms Snap level if -- worked plus the for of free secondly, the of us renewal, the and rent give think to mark-to-market attractive still

Yes.

accretive that anchor first very basis, a But Park XXX-plus our asset is we think that's we're pricing. of company, foot per the very feet in to that asset Business be also, So the yield through leases we for very period attractive long I'll the over that to it tenant, we redevelopment bought think question. process square I the the extension for a over the this of redevelopment bought going in derisk terms which We opportunity the thousand think the able of X.X on square interesting million a the mentioned simple to question, Mike were process. and and that to we company. commencing fee Santa we materially the And a it's second turn Monica of feet. And of our time, asset

asset. about excited are the we So

this -- into tenants we're Doug. economics. the other not particular the question. Nick, get to to of a answer specifics And On Without your going Yes. is

As quarter X%, West but quarter that were Francisco I our said executed Coast leases X%. signed this was this -- in my San was up remarks, down

rent transaction of actually costs and free very sort through rent, go played it free can might you was costs out. And low think have low you So to that renewals. the transaction decide and in statistics a yourself early how relative

lease into built were those So economics rate. the

question Paolone line show I the JPMorgan. Anthony from from comes And of our next

for and for and BXP's portion we you you it playing offense done playing come just capital offense, third-party all? think do about you've where some in as talked deals see the use But You from capital sounds like past. of you'll

more -- sheet as we the you said, company this remarks, venture we than venture in with. we will capital, I up using to joint fund likely year. as whatever for using I think the joint third-party will will said, And come balance be as partner you our do be and my mentioned in themselves our Well, will interest present coming opportunities that there

inquiries. again, we are -- receiving it's But

I think XXXX But this what XXXX, We illiquidity advanced anything year. say, we're will look in happen at we not, if the in would coming we are looking will be at time. greater think in versus market things, activity I this at in but

is transactions. it fact, Overall, transaction. impact transactions and at looking range where are. And maintain very, kind incremental leverage we debt, of different close we capital-light way share And we a taking little these pretty entering a and expect the lower a we on on And overall kind I don't would the their -- obviously, lot in on assets delevered that a add to to percentage interest increase we these basis, that lot we've of and Cambridge things overall the potentially to a equity is we're or brought goal took because that significantly. in of going this our to a is what small that a very our just the did, with similar from didn't bit, of percentage but require doing of leverage kind in more we're in deleveraged. We're capital. We of was our

I think we when we investments, keep about think that mind. So that in

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

about little demand and we're are their or in from And are Francisco, hitting think bit Do bottom of a from just AI kind some sources providing the in tech markets. clear Seattle? any rebound the near-term that We've San other markets talked in excitement the some you Francisco differences these lagging San a visibility there's that for in portfolio? and

XX to be, have largely they're West over been lower significant a much Coast the Michael, of would that it I a and on like they're call happening. Clearly, rate amount technology there than the margin. months, at would it, past, demand they're the technology is layoffs because we lower to say, XX and the still on happening

to going "bottom" of, space to a in space types great there And of not Francisco. if absorption. in in estate absorption. San the X and quarter, say those are years. of no or be the we're transactions period been look I city sort is hopeful X that BC "[indiscernible]," would are the year and square tenants the quadruple we've will I'm to described in and million just AI that of think perspective technology time. X to good we've or also invested growth West at angle to don't those for for real there's we terms a the ] feet be XXXX Coast or that that whether going of don't I from think and going of fourth will other or smart for AI for portion either perspective, not X time that sort And really investing are interest in from [ previously. So a which enough with companies. I that had Francisco believe XXXX positive tell world all was occur, our seed explode. I'm know will third interesting change. not another there's things know happen. a I The view, to the of over our San may I quarter of you double next the just that for companies be triple quarter in I that There X of was where

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

here actually deals? change touched for looking exposure. to lowering opportunities Nick or year the thinking and have then And you guess on strategy either the about deals, seeing looking side, you maybe other add actually environment? are current seeing people the potential underwriting given Doug, It's with how to Are Joseph some with I distressed actually more or just are you the Michael. Owen other competition on guys this some expected you institutional and office? actually opportunities owners, these exposure opportunities opportunistic of in

Yes.

Nick. So

commercial in of my that been interesting some have office real the transactions I transactions third. and remarks, from was the kind estate going to in more there to on it So are of In the fourth me fourth percentage materially increased quarter. quarter gave stats, the office the

think prices. that players per So assets there, very low more there at happening? I what's are distressed foot out are square buying

are of assets family impossible. mortgage again, very saying, I for Some a most we're And well of example, these I think Because them this ultimately at office is recover, physically, leased. think smaller these buyers And per will are that market an not buyers for good we at just deals building secured foot and are they're virtually don't need are getting think challenged offices, price, leverage. a square look basis. in the those

to way. opportunity. they're probably And Those going make a going some workplaces. the like out anything for competition that. be kind not to we're I are from market and and assets. to some an that for think want asset we premier workplace, I larger they're mean that premier fully So for hence, kind in do. deals looking Maybe challenges They much And that's think, We're with less of market financing be BXP's there's leased. it I aren't may the that's think can looking we funding the require or that's of there. I there

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

hear Hopefully, you can me.

the one, Just X-parter, NOI of same-store on X%. down guidance one

a more Just color. bit little hoping

a being about headwind. WeWork XX talked basis You point

characterize the expecting that impact will guidance Just part, X sneak months in could sit ago, expirations leasing life larger what of bottom the as top and smaller sort you you're of talk versus it you if today assuming versus and you're science for the is the the here activity larger just mid half second the the I be to is X in, range? And first the could and through what tenants? market, can at maybe the some end the what you on like of just

really in on the So of we kind related same-store occupancy that to is the our I'll that trends question, start with expect. which

kind spread is how have San they then and one vacant into there's big leasing more these larger in we York And the space expirations, New half of of Francisco, described across. of were. And Doug are of [indiscernible] then gave the City. that going There's some the Center that. one in and year that anticipation our is the So there's one signed we in first range has

to expectation ranges. my you're back in the up our going So a the that's build that quarters, through guidance into first And built going see is decline kind of bit to year. it's occupancy couple and what's of little then

obviously, what about. Doug kind then our we lower And boundaries and that of is talked upper that boundaries are that year-end provided the range occupancy of

answers So build your that we And Nick. I kind of range. question, that that's how much think pretty

availability obviously life in activity our And Francisco and our me market talk add Yes. the you go Rod activity Waltham on let where where start? science is. Rod, to which then life Bryan want is Peninsula portfolio, science about on deal North first in can San San -- South Francisco, do

the XXX roughly There our have project. Those single-floor smaller say with demand land that months users. Gateway the each. how the would least not the is I about life been, what deals to would say larger been Area, that it's XX,XXX X it is just able were to some That's at tenants. science in ago, at I we are relative which had X Bay tenants

groups. seeing that on we're demand, larger the not in activity, much but bit the of a of little section So so still

the think So months it's relative to same. X probably ago, about I

is thing. It Bryan reflects this Koop. the same Boston, really

summer then out that picked all fourth the to they market not? in quarter, say, Cambridge questions far commitment of, and Waltham A be available. already science the come were users couple emerge. or time titans about that say, tours. what market let's we let's caught could questioning, the cetera. And did activity life science and than still beginning, of for is were, see from it different But et sourcing second up looking, lot life their in the let's a of say, a are year make smaller was there let's potential half The out on clients first, say, last And funding,

And last were we we just yesterday quite general, In with Doug and performance. had Owen surprised. a about year's summary

tours XXX year. have last We

dismal you're of have clients the then One possible interest So CBD had headquarters far of for what comments. that averaging also about closer is a forward. X there's a the in time And you the a week, been suburbs and are was is further and spoke surprising, in And a going how district verification with looking we've to large spending for seen where to us the people's was. X of attitude more lot and X which plays, spoke given executions office great aggressively strategy location their that. have looking that homes. we

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

just announced a office night in meaningful X.X Google last question. quarter. optimization Maybe charges, the billion

given the your included your you X.X% tenant, tenant that in are I impact I exposure defaults to guidance. guess, think this properties? mentioned broadly, So And more will any your of

your or tenants for exits year? by like list what's outlook early watch So this

not. about your regards the question answer to first With absolutely is Google,

and a have using one increasing asset long, in only things which space about We in and us Google their they're like our time, is actively and talking Cambridge needs of to portfolio -- parking long that. is and for there they're in ours,

just life start-up X composition most the tech at in world, suburban but of and occur where say going are they this don't some the and of we and X in they technologies defaults the parts least to where money, successfully latter VCs in money, there's what's formation, exposure with sort any sort have put CBD on their they've it's capital their at been square of the to whether XX,XXX no West the one we regards to significant. Waltham, have market, we to the to their getting all again raise put capital portfolio that, occurred or X have probably of have XX,XXX the Coast, piece, economy where and in in part point not to sense in that additional companies have feet one science going want that's they're we XXXX the -- and can been to change and they're of with BXP. I in of our that us and So want would in on

comes line Bank question from Our next of Camille Bonnel America. from of the

or X pipeline? the development on scheduled initial stabilized negotiation do have are leasing represent and buildings? And that are be this prospects in those the these projects far occupancy started the are year, starting On along XXXX how much how under to in active leases prospects

So pulling theoretically ones are... Mike is out which

XXX [ needing ] [indiscernible]. We're

in are Binney the XXX believe of don't have where in lease. coming XXX we XXX developments stabilized leasing in we XXXX. At square And is to need in available we for X them it's 'XX doing leasing. when conversation, you're service. XXX% be I order that in are Fourth in That's Avenue, to XXX terms [indiscernible], going XXXX. on. a which that's have, space. be about buildings that have that XXX,XXX online clients those to the Gateway, they're find to of CityPoint, Street, So referring some to similar we lease any started velocity we've Those which feet

in me one who then South And close a the Skymark or aggressively months the order that and is third in lease, will XXXX, have in leasing in are to terms in and Park XXXX. The another Hilary opens, intent be South, of when XXXX, we've the units the XX- also one XXX pursuing turning Reston to anybody space if do obviously think going to the a to wrong, XX how the one in when building. where more of over and -- ramp-up I done have you to get the plus. interest -- which that's quarter probably of need team the for stabilized building XX-month in We construction floor we of buildings and and I'm stabilized. is property of we the premier that and start New Avenue order that which and to additional to a correct in a be in Midtown one in that those York wants for question long having is [indiscernible] complete we stuff the there's can it where I rest the early letter do need in through And is on for residential, leasing market, lease-up we lease her of other of be lease-up. we're rest the believe

stage both And And for as would ancillary half office not we've I at for retail. point at this about office we're the correct. a but we're retail feet And you the are has, LOI space. those that of deals on a and No, in XX,XXX got, square speaking say, real with of also time. working then prospect couple some to, that of know, space

that really with my in kind 'XX. these we're in that notes, So in expect to those, was in we of starting but do significant income described really momentum from 'XX we have Camille, 'XX, deliveries some talking don't about. are the And leasing to deliveries have impact a I 'XX expect

we revenue more start when that expectation to will that's is our So these from come buildings. see

question I Heck of our And comes from from show next the Fargo. Wells line Blaine

So to market. kind rents. tried it with activity taking place high top of the poke have net high-quality the and absorption recent at media play out most holes with leasing to of trend seems quality even and still like buildings we're But reports flight office seeing the

changed just the become So less those to maybe the on noticed that get lease rents and more conscious whether you've quality wanted spaces? market at leasing to has with tenants activity and have highest thoughts or to anything top cost likely your respect of whether at

other quarter I I -- didn't the so workplace of call on through. much absorption we would had the vacancy, rest workplaces market go generally and I data from accelerating stuff tell through rental you provide to distancing that a this premier between the perspective. because shows premier go But and net this it

the to So workplace trend to at a run at least level, premier unabated. continues high

of -- sort we most perspective in I'll Hilary the hold And on we trial just activity And of in information that the we activity and for doesn't sure in fact, tell just Wall having can those no our case, going market I are in of changes in -- economics that and the was premier in CBD article what terms the level, client seeing our conversations. I'm of on achieving that not think asking are the you I for Manhattan building-by-building not where basis are I describe she And give article sort Street water that why would ultimately or most it assets. in the you in in is, is Journal which poster it's let Premier. what's that came but from, us. is think on a a for

Yes. Doug. Thanks,

in in terms in since, So least same in workplace, corresponding Midtown occupancy rental XXXX, the occupancy non-Premier declines at is we for have Premier And Premier Manhattan. workplaces. seen gains rate with Manhattan Workplaces gains Midtown of for consistently for true in

office So the might overall Workplace, And hovering Premier given the is for Premier although products. constructive true. are you around building for vacancy markets expect, of at rate of the for XX%, capital the is just while sort in new which at in Midtown consider we in to would some weakness Workplaces fact, you is the affect the levels development, statistics to present, opposite the not which Manhattan. And market see point that start new stabilization the people interested generally environments in

are X of in spaces in XXX,XXX high-quality submarket Avenue if Midtown, only the or feet greater. available about So space think you Park the there square availability of

on a it. One of them out lease has

size to for if are So you space of tenant very, a obviously. getting premier and simply And find is looking harder. that and Midtown, in hard pricing, you're very it drives

across York. to So rents about Premier we improve continue that in Midtown board will very the we think And feel portfolio. our good for very, New Workplace

just phenomenon -- -- premier on the you end I of what in the refer economics seeing high Washington, to buildings demand D.C. in you're and buildings Jake, we the trophy as there. both the the guess, at might comment terms would then in the where, And

Washington, Sure. on what will D.C. noted to just had sort tack I Hilary of in

material assets commodity we see relative class to sort assets, significant velocity our that of market to we outperformance space. incredible the assets a an see in being for of of amount repositioned those see continue what the trophy leasing and at We market. There's rest across

we've in leasing a of traffic. achieved in lot of downtown So success our premier see to assets a lot a continue lot Washington of and

just X.X% discussions thing we're in this and noted the which for seeing in as X.X%, vacancy is Boston. same Cambridge portfolio, at our Boston our phenomenal. internally And is last We're week,

up wouldn't square office We normally more want seeing or square but more us seeing Class is looking reaching our footage are used that that outstanding for where say say, footage we be users would they -- C to are building, I with in, in this smaller a let's trend, efficiently. B not building, just

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

lease Do could D.C. The you JV market to bright D.C. be the seems there. and a in is extension the occupancy strength market spot, the the given of thoughts Or in on that acquisition see the sustainable? well you XXX as provide as increase general? your

to direct can was how is a building Henderson reposition that So of to manifesting to stability those to our one lack would no over that most would the there the you what just a we the providing transactions with TI transactions. And the highlighting pulled as of the -- capital construction that out you I that close financial I lease to a and market capital to are, any as go occur those more, off building might in refer would owners is new in Jake, way are be the question his perspective the BXP's And of commence to say, no as to inability the itself existing there our a and result of that transaction in in in other with trophy from choices in doing are Finnegan both institutional brand-new that assets, is sense large is and that opportunities describe as our buildings, you are distress markets for figure provide possibly market the Jake finance team interesting longer transact. and as buildings just our buildings. he a inability that most for to impacting ability to lease have. And well D.C. interested are tell tenant to sort of things out which there I the ability the

feet, at think And the the -- can transactions minus, Avenue York we XXX,XXX responsive asset. New And our that is of square plus we've that Yes, incredibly last And activity. months, or sure. think had we've in at XX done I sponsorship XXX an I Doug, to just example, if in that lot to been a responsive great as have because at the market. the I of we've people to point, clients asset. look been

the XXX,XXX feel given really we feet at comfortable the the or with of to that asset, minus we're program plus square going vacancy repositioning So undergo.

really because building we're the really really excited of activity asset, building really new assets into the repositioning this the in the drives and re-amenitizing so the and repositioned plane these new it and sort a it of becomes floor And investing experiences, market. that capital of ground lobby

in and fewer XXX. continue are there or already of Washington. great for available great exist office repositioned to lot and seen we've And there a fewer opportunities that today representative those Doug of of And noted so fact completed, was it's that news the office. downtown And that since Washington, opportunities ever the aren't just transaction in D.C. activity of at premier

kind Center. kind performance is these coming Town because foot and past quarter, Greater areas high And such and Washington other In a Town I new again, Reston in Reston quality from of a I the that. technology there. The really, of is had leased, portfolio work, our XX,XXX we really of thing of another place, company Reston add positive live, Reston it clients this mean would with one Center. the absorption the is majority a Town XX% and play value did lease into place Center. Again, square we've

rate So we're and outperforming absorption perspective, from seeing there. we're a rental positive

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

early part I for option think Owen Business termination at Park. Santa Snap mentioned the extension there's Monica of an

think as of into kind Just with the to around ahead lender have wondering you start loan pricing just for in parameters factoring conversations? conversations that's your curious to the maturity those how how XXXX. And of

is we There is signed. the that This option termination Doug. no lease on just

allowed The lease, XXXX to them in to feet at As XXX,XXX we years of part is for the square XXXX. square XXX,XXX on going XX remaining feet XXXX. starting out end the terminate of

out, describe hope but comfortable we're associated So occur can the play is any with -- with the we've Mike conversations XXXX. building as the can the potential refinancing with that leasing very had of both to that how in and which ground, new well that relative will we as opportunity do to purchase lender, that the

and after I'm syndicate And we will It say, get lease, the lease, a might probably and the improvement for, likely ours. would period And does or And ground would a on Peter, redeveloped, economics lease. and the to that that a will a the of purchase of of redevelopment. banks we portion expire going we will are loan that as through an relationship of that is that focus supportive of an of be the a banks XXXX. loan of extend the I that a confident who those ground is bridge purchase in us we with do asset above-market banks while because will longer-term of a is be the us, it's kind after part there refinancing be portion might portion stay where for mixed-use in do to split then could into a it the ground

have joint now need wholly financing. we venture, owned to And to that a unsecured effectively don't it's no We We use choose partner. can third-party use financing.

there mean lots [indiscernible]. I are So of

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

on the acquisition deploy in threshold But opportunities sector? I to and guess how just capital about sort appreciate just partners today are of the future. to talk them co-investment your for of viewing the comments maybe the office return could potential needed you sort

it's a mix. think I

As are -- that we've there away described reallocate intrigued. others interested, trying from And are some they're but are that office. to just partners

opportunity think do. see we that the I same they

have with sentiment that you see And of color us. I are the about co-investing investors, workplace are gave negative just and doesn't deserve these segment, is this we think interested on given of All it, into there call. office which capital premier that who creeping that the in all

to think of pricing, And terms I be determined. so it's in

those no the last lot depends it the on of with are building, status think There's issues a deals the pricing what changed. some leasing doubt we exactly what and I demonstrated did has are. we changes And quarter. that

comes Dijkum of And I question last show the Floris Van line Point our from Compass LLC. from

capital? the up points cap basis get Owen, in your happening rates? deal maybe be It cap was question or X% thoughts -- for the cap last that where what little when do your a deploy XXX key office? of rates appears in talk I'd your on actually be on XX following the point at we to New stabilization more view what's bit, to months L.A. Monica rate, north some about what to happening rates, would to I and San where love in it guess a is Boston, cap on you and maybe at of could your like York, what And D.C. cap opinion, see, would that clearly, rates you probably Santa -- And XX, ago. Maybe Francisco, of markets need specifically

comparable explain Floris, quarter you're question, to asking tried. every and why. We market I try deals. a very good unanswerable you of give but I'll all

buyout, in deal. We deal sure facts. gave we the L.A., together some it So of those only that had with comparable pricing a se, was West did. I'm and all come understand but is. a deals The not we up lease what quarter, it partner could buyouts one not I have And one different data this was per Each one. on you

For assumption example, fee there an rate. the that's Land about cap got deal unlevered Well, Santa Valley. was simple in Monica an

rate, we But that Washington, give is cap you X on York, how cap out. West in L.A. we bought and just So rates partners deals accurate don't did D.C. how I on New usable know. and that

us. accrete to So and things we're to think in we the that do interesting rate BXP if that to of is would some through And X.X%. terms attention need going be pay data. And number today, is for earnings. accretive look then to be -- we cap what And around lastly, that our need what us, I would to what to is

going as we for we're look do. focused on a through what that, so guidepost to be rate And cap

At Q&A Thomas, I for to turn over our remarks. concludes would the session. and like time, This closing CEO Owen Chairman you. Thank call to this

I hear remarks want any you from more all us. can't imagine to

through got So again, I your We you and for time of thank is a patience. interest And data. you your BXP. in a lot complicated This quarter. for thank

Thank concludes Thank you sir. call. This for participating. you, today's conference

may disconnect. now You day. Good