Alexander's (ALX) 6 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to the Vornado Realty Trust Second Quarter 2024 Earnings Call. My name is Rocco, I will be your operator for today's call. This call is being recorded for replay purposes. [Operator Instructions]. I will now turn the call over to Mr. President Counsel. Vice Executive Borenstein, and Corporate Steve Please go ahead.

XX-Q Second Call. XX-K we quarter may Commission. call our Commission, be measures materially our risks, refer this during filings Yesterday deemed may statements, measures. uncertainties Please any to the actual under information a Investor made comparable on are documents release Vornado Exchange financial information time-sensitive supplement. Please we These the regarding Earnings The packages Trust not duty today's report on and today's more XXXX, statements Realty Form accurate these and as XX-Q Securities include that from including report call, these Reconciliations risks as may quarterly directly Relations and variety update second financial Welcome and and non-GAAP of these documents afternoon, In our undertake differ for XX, as to and annual with December our due Quarter will results issued section. are Form filed does available only the call to date. uncertainties. The statements GAAP to may our these of factors. the forward-looking well forward-looking for be with Securities and supplemental that statements. Exchange other company aware and ended certain year earnings a website, the information our included to earnings www.vno.com, most in financial of discuss release, during measures be our on Form

Michael and Roth, opening our Chief comments Financial Chief Officer. call Steven the On for and management Executive and Officer; President from Chairman Franco, today are

over available also the is will Steve present Roth. team to questions. I turn for senior Our and now call

good and morning, Steve, you, everyone. Thank

month. Our to business month on continuing plan by improve and is

spoken leasing, vacancies in is for. that focus I been on the have than overall primary and recent that portfolio, the always further, PENNX X/X extremely of already is can active report more and Our

the dislocation. Our focus course, liquidity, market current advantage reducing continues on created of and, enhancing our leverage to be of by taking opportunities

New thing. York as as and ever, a good is crowded City that's

size of in about As I predicted actively percentages and threat. kitchen over at the that's utilization the We past are competed wasn't quickly it new Tenants history existential space. We expanding see in over may 'XXs, the and is New up the supply. growing in been many important of office new, now the leads when If the building just It is building table an rising. feet. that normal. years. guide, last landlord's supply thereby years, build for are prime a that million market it cutting working couple of being and to submarkets, And almost economically spaces actually and most off a to impossible be a dynamic X square rents good York shuts market searching new is a of in started our XXX in in market. eaten hasn't down, There

of Michael at activity start we year. moment, the Bloomberg renewal all of Avenue, creating And XXX,XXX have to of our XX in will in is we off our extension cover feet leasing the highlight. are Lexington this strong and a As assets. good XXX The square term at a years very

district go bustling beverage food it to public Yards Manhattan to is encourage Hudson and out. the new pipeline tenants really check lobbies, out of with space amenities uptick in at our activity, strong. Prospective at is the are PENN now a we're said, I PENN all complete, really and really the our West I surrounding West an Side The from PENN. transformational, is PENNX to significant plazas seeing extension with transformation, As appreciating and offerings. PENNX common PENNX new total The and spaces, of you again is our and and and

first control also We flagship high-volume, we acquiring expire paramount in monetization Fifth ] transactions. not the of Fifth working to space. continues Fifth been floors the Avenue. announced optimistic. I upper for the [ the which Avenue us. set the prominent call to Fifth on the lease we've perpetuating mentioned to retail on yesterday UNIQLO purchasing is UNIQLO store on is of purchase is My This theme are $XXX won't XX% last by user their We This in their be from million. the XXXX store UNIQLO's several owner. portion and asset our joint the that large this Avenue UNIQLO's is of users of was be X transaction of -- venture, owned their this one office could more tenant. bet last sale was our April of Avenue

As The you rate street will high in a cap to to recapitalized we rent the mid- first cap place asset joint to is range. on expected our in in as XXXX. is in sale on this The X% rate at XXXX. is close mark-to-market of venture the recall, and rate X.X% the sale retail at cap a part X.X% the NOI quarter UNIQLO

of will Importantly, of all asset. equity, of increase substantially towards on remaining repaying all preferred our There equity are which actions $X.X other our a billion to liquidity. repatriate [ this pipeline will net go in the ] preferred our portions few proceeds

the quickly comment moment a relates I'll market on, Broadway. which The in has XXX been to transaction, second

with of office handshake X.X foot We have lease reached a the a for million master long-term square user entire component. a deal

The the the be likely the new positive PENN There the and word growing York single numbers will best significant foretells foot and difficult X government so continues to Wegmans the brilliantly. A is activity showing supply reversing against is days searching We in on room. impact reversal have fight And our and inflation in of succeeded All significant New market and has the our nation. now values. in on the Federal rates. finally is square and years, or market will over and markets for X a space our are confirmation this the expanding bond the growing about dynamics Tenants stock are XX,XXX market. After elephant retain last no that horizon. importantly, Reserve a interest and constructive. District

to our over cover Michael Now market. the financials to and

and Thank morning, you, everyone. good Steve,

Our items, overall the of sales. XXX of was Avenue unit gains mostly $X.XX our $X.XX share. FFO XXX in the additional of refinancing to Park per quarter gain This Central debt share excludes related noncomparable from the second South discounted extinguishment Park from

income we Second move-outs of for net compared quarter of second FFO decrease from quarter. $X.XX as per attributable X% items share of was discussed and share known was last $X.XX comparable consisted per known NOI to to previously of tenant lower the year's former This and Montgomery net adjusted partially XXX of the in NOI rent signage and termination XXXX net other in by $X.XX Street $X.XX commencements, higher a from impact of offset from higher expense, $X.XX of interest at Francisco San items.

larger XXXX supplement. Americas a of already in of the to comparable earnings we of our XXX temporary have and higher of down net primarily release impact items these share, FFO from interest XXX the space, XXXX. $X.XX primarily of certain impact XXX but of the the $X.XX have are to Park GAAP is during per our commitments XXXX vacancies leases financial On begin as quarter-over-quarter bridge per the part earnings a assuming we the X/X provided Broadway earnings expense latter per for about call, finalized, projected these FFO stated that of vacant Avenue $X.XX XXXX the won't at Broadway assumption due is This $X.XX be expected known in share. second Avenue properties, the year. We to still our to of share of good half at our about have and We last expect roughly our transaction and comparable from aforementioned a until

the earnings as PENN income reduction as down, vacancies up lease partially to trend comes expect offset we online increase of Thereafter, interest. capitalized the rates and other and and of by

leasing overall the leasing York historic for the well sector legal the technology reinforcing Tenant between of in talent tone leading reached remains is leasing demand U.S. particularly half New Midtown. we The of companies. in year, for high, financial of strong, XXXX, has services, York to A Class as and mix upbeat turning is Now that the magnet to the properties a the market outpacing and balanced the markets. employment continues second be enter Private New office

Given repositioned the foreseeable Class blocks for new of high-quality of West XXXX. A analysts for coveted slowing second quality within as future, this should are Avenue available of properties and rates, into the in have into A submarkets the and dearth Vornado's Side a and naturally the spike the we space on additions Park Avenue Sixth well-capitalized office the All of supply what seen city new much lack of well like in conversions York's New bodes rental tightening Avenue. collection and we predicting and on vacancy new best-in-class West of Midtown side, many sublease Manhattan, Park industry half rates across follow. most head a momentum, gaining XXXX assets

Our flexibility desire provide XXXX employee which the amenities type top-of-market near and and leasing that for of reinforces and demand activity transit recruitment for properties tenant company's space remains retention, strong.

the square second quarter of feet will to global X market-leading of Avenue, includes square all continue at building. X.X average $XXX we the feet headquarters our XXX,XXX During the Bloomberg where total and office lease XXX of quarters, in space square leased rents million Lexington a per first of foot. This for renewal they occupy

renewal, cash per of rents Excluding $XX the X.X%. the half square volume of our foot transaction feet with XXXX square mark-to-market of is Bloomberg at first for starting XXX,XXX a

who throughout XX an totaling of space all $XX PENNX, amenity our rent many at city the are underwriting. including During submarkets occupying the to at rents above PENNX to with of completed unmatched leases industry sectors per continues attract and tenants in feet leases second quarter, foot. The program XXX,XXX addition from important average Bloomberg, original other starting previously square its in we transformation portfolio square at

the services Antares XXX long-term properties. this companies Elliott Investcorp, premier GIC, as to [indiscernible] XXX,XXX continue where attract square the services addition they building. The Park quarter, a to PJT Park of Partners, our of transaction completed leading in Elliott to We and tenant joined financial with of for one feet Manhattan's Management where we base roster, financial

an feet during $XXX XXXX Importantly, per we average starting have space now of rent foot. leased at XXX,XXX square of at square XXX

in million negotiation substantial Looking roughly than opening new activity expansive The seen at sidewalk forward, quarter completion our well significant program. we our of of tour the at million tenant proposals a X.X our pickup pipeline second the feet and negotiation. where recent project, completion more of consists of activity stage during X proposal and new feet of leases square PlazaXX district-wide in have the in consists the of square X.X pipeline PENNX, and some park which million pedestrian feet, of is following

new of continue our current deals mix Our XX-XX In San important to renewals hand-in-hand few buying work for and tenant the as our next total during deals expiring Francisco, we pipeline of we is a vacancies years. our with for at square in tenants completed lease one Street, a leading square the foot feet XXX XX-year XX,XXX and XX,XXX finalizing services Jones with a Day are building. renewal with expansion currently renewal financial California of tenants

in in these XXXX and intent of XXX,XXX major are raising trophy several mark-to-markets reflecting, rents of we where positive upcoming square of feet XXXX. total nature. All our have late-stage expirations Additionally, a deals with on letters the XXX's tenant lease

in renewal lease of to inside one long-term which completed with and major we our Finally, feet. theMART, July tenants, Chicago expansion square at XXX,XXX tripled a in

life assets we market with the benefiting sponsorship our program of Chicago and a amenity are the rock strong have is work pipeline. While significantly challenging, our solid market-leading from and quality

capital now. markets the to Turning

should market the signs challenging for early some out even curve again selective remain over are banks assets moderate year, remain high-quality SOFR beginning and open next of is are improvement ones market, help projected rates. for While come are the and the to beginning down markets which with straightforward. Rates office borrowing we forward CMBS for to to the less see that financing and the meaningfully

company. street the Fifth $XXX continue very obligation eliminating to be refinanced recourse retail the XXX the in Avenue on We at our to markets front. we capital million JV, active loan the In June,

process financing higher office At and this is high-quality markets of the demonstrates for as renewal refinancing like, rate than complete, we're the retail again open now Bloomberg one we'd Lexington Avenue, While that the this the well. in with XXX assets.

XXXX the of We are will our and our care maturities. addressing significant have of of then in taken process XXXX all maturities

cash billion it very good $X.XX of remains $X.X under operator liquidity strong and including revolving billion, facilities. With sheet turn the restricted $X.X for in balance billion of credit shape undrawn over billion Our $X.X to with Q&A. that, cash and I'll our

ISI. Evercore first [Operator with Sakwa Question from Steve Instructions]. Today's comes

comments. is Broadway with kind just with today I'm tenants. Yes. my understand, the sure certainly building transaction Steve, discussions, of your guess, know different a fully that and about XX% you I couple I interest piqued XXX occupied not I of

So the new this I'm or whole really I from -- guess, the just tenant just if of didn't understand space not old exactly how subleases tenant sure I transaction pending. that the kind that's quite

you, could and to We're I an help going to that that I'm agreement an going transaction say I important so is but I've wish topic. all what I'm Steve, there's process. say said It's confidentiality under a and that's transaction. important [indiscernible] on that

Sorry.

Okay. the Or in are the sounds are, you market already of you're a at I quite color kind guess, gears on the the pipeline tenants X and and just to strong. PENN, currently new expiration-driven? Maybe I more switching PENN? looking of maybe more marketplace that types speaking these requirements Michael, lease these the And Can X in about to? you that are little talked tenants provide guess, bit

Steve, Glenn. it's

a tenants right the years. tower. it's soon PENNX, you expiring and both in in and So your now, podium the the of expiring at I'll the for But both tenants tell mix same tenants space in some [indiscernible] outer

We're interests, fashion these interest, all from paper negotiation interest, space. interest legal media, academic interest, in of We have all with on all of types interest, have we sorts sectors different technology tenants. financial the

keep up types in. as we'd very, year, Similarly, sit the are we strong above we're tenants coming activity rents of and about we've at thought So XXX,XXX PENNX at we very that feet PENNX, seeing well leased had this wind where there here.

PENNXX lease of right the other around activity And now seeing for that, at with properties. have and will a pharmaceutical major we activity other with also coming X company into and We out PENNX. floors we're the some great district

everything So better When day you really reception and I really streets, would The great. is now better is you in as walk spectacular, looking tell we're the passes. PENN. better, its each [indiscernible]

So we're about super excited what's come. to

from Markets. today And comes John Kim Capital our at BMO next question

assets On quarter the also, to I per But prime own you $XX,XXX think you near it talk think foot between assets X square dilutive monetize any Fifth in UNIQLO might be so preferred earnings price sold redeemed, on Is and way remaining you Avenue per still great the that in the value XXst the term. plan I retail? sale, to about impact? the foot. Street. And can right at do XXth further there? And a slightly you your just square gets

a Well, lot retail so a outstanding But to the actually to think of back the that and transaction look an execution. in valuation I the in you've forget, bit is a obviously the we're And you. that, I is sort those appreciate. Look, pleased that talked at think thank and I'll rates little cap you time, Steve try XXXX XXXX now. you about And the income there's If I sold levels. it's effectively transaction, tell from John. that the in up we we believer [indiscernible]. retail been if remind a quite value me. We it's whole which But steadfast think would

the you time, which the value So take and think I our price marked at that's -- of was at if the the stock $XX just share, preferred continues a equity all. reflect to the about where don't

space. entire per will ] the $XX,XXX eventually, Fifth appreciate is -- square that's Avenue. So valuation But the on foot, the [ people of

allocation Avenue per a to a footage. retail I the when a feet. about it's the grade ground second rents of obviously less, given think when $XX,XXX square out at you're are for the bit is what's small square most amount for amount on square floor you foot And frontage, looking focus quite important thing the take of Fifth the what's

So retail metric the grades. a Fifth representative more of terms for I that's think in Avenue

major we rates sort you I remaining should said. Each be as with -- in as think by last, which well the sale, of valuations more of you've this terms we as So And have every there over that to expected Steve works, on what's some both [indiscernible] couple sale and look but creates user want scarcity rental keep X last for don't would we've asset the buying. asset. But I fit, to we seen obviously, now drive alluded the knew calls, seen of those sales. think

that the own the still pleased of we're of portion sale. of prime own Upper significant a we Avenue We So XX% frontage. frontage north Fifth

And so us puts place. that in a good

Let's earnings impact, was that the talk question. first was I about -- your which think I think

in the transaction, repay X.XX% go The defer amount to and structure all financing, gain off, proceeds refinance [ entire us So the to a that to it ] mortgage the of when triggers first -- owning today. We're to it -- proxy paid the preferred you will continues gain preferred get the gets preferred. going if remember was allowed that deferred original gain. any the that for there. We're actually our

[ have gained. close entire year. losses, if that cash. We next be we'll at few of call not all And else, be X.X% so depending to that, minimum, And it what terms and we'll let's in are would it, been hopefully, terms million debt a will it, be significant already earnings. tune monetized, able if that off It a terms some of is of where the accretive we redeploy So to and pay have of dollars have will tell or the of you we to on be today. XXX able in be transactions push think it if just that portion ] of nothing it a of some the assume to will all you, in I we at, cash, likely a keep keep will

asked, you everything if but me. covered I think I tell So not,

well all. the timing MSG of second the capitalized it [ into interest. as and is my ] then on question that moving space You as covered And XXX

your remind of interest could When you policy. project? capitalized start you us expensing on the [ do invest ] just If that

we it's X early. delivered portion John, Sure. that MSG, some a months Tom. space, the of actually of

quarter seeing our It gets fully second delivered the by you're of in results, that. fourth So quarter. the impact

fourth of of obviously And then a at 'XX, MSG So basis. rent. will quarter full a on our GAAP will rent be year the MSG a new quarter be it full

remarks large to roll previous some that we interest offset relates year XXXX. interest, calls, this additional in as as and past down most of But to relates and prepared be will revenue in of by indicated [indiscernible] it did with others. the will capitalized Michael's As it capitalized GAAP leasing we on

do by delivered once? as floor at that entire you it's And the floor or building

It's be open going to some the on, some portion of a because we development have that to capitalize in going building interest will as of XXXX. continue

comes Floris question And Point. Dijkum from today Compass with our Van next

Obviously, its very XX%. noticed Fifth the in and bit interesting the market year upside Upper if so? you're expectations the on Avenue. of in particularly less positive that on talk that Fifth or lease about spreads leasing in and what also, over Maybe is a your -- portfolio now quarter. -- for rent of of that bullish space there's activity? And tune portfolio obviously, also rental to seeing spreads are growth news by retail What potential, your around in terms a you were UNIQLO lease Avenue next I space, little could your owns the that some more your

more of rents a rates On first general activity, market in continued certainly and about terms active, we're terms in vacancy recovery seeing couple we've and there, calls the continues. where are question, of this the last just the of retailers I call, declining, and on your dynamics that think improving in terms both retail of talked

forward negotiations it's probably meaningful, XXX,XXX wasn't if quarter, various it be I have activity look probably at now our of it another pipeline, lumpy. little feet in tends intent. feet deals a active. We think lease as But quite to in and this you right at XXX,XXX close to stages of I of look our very letters but

that a in the would Broadway. XXXX space focused then PENN that, backfilling Times as where delivering PENN have Square, that's say or particularly we've we I as and So lot spaces, redeveloped of in some principally of activity, obviously, and delivered we've well

be the that's historical, relative levels It's in to and not. rents I just are vacancy activity because tremendous Times where the at space amount and year. terms we space -- where particular pretty But is comes Square. Fifth There rents significantly healthy exactly is. of want are much would one what this later want activity not And vacancy hard how and is they have of pretty up to So say extrapolate there. there. there's Avenue, think in every it a users recovered to I so particularly that

momentum. So again, see we continued

role terms term. term, have we up think I Fifth on of near lot coming of don't in a near

that's So really of one I at term of near up know either don't year. relevant. most that that than mark -- is duration on way coming to leases really the that the other There's the small end just those lease

follow-up my debt you a matures, January of that of unsecured your million if 'XX. plans maybe And bit talk could the little for is in about $XXX think, I

looking with you're you some your to you of a off bit in talk that about market about Is can pay things. said those the if at Or that? refinance Or that? You cash? the little thinking idea will

here coming last Look, in. cash in we significant as pay got plan on announcements we've it off. Yes. hours, we've given our more cash XX is the got Obviously, And the to hand. today, sit

pleased down spreads it you markets that. alternative we with we're direction that's we would is the and tightening and at what's where off. expect, tuned today, we that on an with sit plan. rates various So going compelling. plan Like are see financing to trending as that's those And as the the are obviously here pay and the But presents look to of markets to with

our Camille Bank America. And today question from next Bonnel with of comes

your around large quarter the And improving from pipeline the handshake did in on XXX seeing are last the XXX office or of emerge? included to activity recently Broadway Was given discussions, leasing you the on more on up outside your wanted comments thoughts deal Broadway specifically side, outlook. the around get what it I Glen, just users? to curious follow the

the in within was pipeline. transaction remarks XXX The Michael's of terms included

really of the In overall leases the seeing everywhere the activity throughout so the they note really really buildings. I would more for well in right we're XX,XXX portfolio, activity, terms the thing while. than we're market action, I the look spread tenants, at in, out we're XX,XXX, of all list into now And and of very If the proposals now. the it seeing out the the and the seeing one Midtown. bread-and-butter properties, that lot is in have really types foot a in are XX,XXX, And particularly PENN coming a

So I'd tell as mixed tenants, you it's sized long different genre is tenants. that the as time, different market of a well in been

So very throughout which New ] mix, reports, we're market, of really the country. see leading chart a can as And helping is the seeing consistent a clearly lot [ the York good in by pay helping the the its you is volume.

And or the get more paid your was to this taxable we following dispositions income for can it thoughts I the we see on follow-up, likely given latest is distributions Are my how uncertain known out if wondering is year. in pickup move-outs? just still trending

uncertain, Camille. Still

we then As get a sense. further depending up not cetera, et on the year ends better what we'll ultimately have closing, closing, on

and We number different have directions go in they a can still. of a decent sense

with question from comes Michael today Citi. next our Griffin And

all? this quarter think, the Great. recent quarters? pretty I Bloomberg improved you the concession how relative you is But have lower it to sense have us a at Or driven notably noticed concessions was, give if environment steady it by I been Wondering probably can extension. of trending. seen

it's Michael, Glen.

and they've That's They high, have being some somewhat stabilized. not gone now They're our but properties higher stabilized. stubbornly have up by certain certain time. subdistricts offset rents in concessions in So portfolio. in

effective So signs net our of in of that properties. -- terms in positive we're some seeing rents

and the been could the a TIs quarters look, for as now these is down. they've bunch market free in rents But as we hope So stating tightens, on the calls. stabilized bring certainly, of we've

could given just Fed's But your office comments that. overall. heard around Steve, of guess, favorable of we've you the kind rate would interest chatter that recessionary the office impact balance environment for with scenario better the fears, mixed do interest lower be recessionary the the I inflation. interest about recently I outlook how on negatively rates kind against think that fight a macro and Obviously, just what rates are And probably Appreciate for more then sector?

cost The our is and biggest biggest driver -- the capital. of biggest cost the

down. So and the rate increased that most trending rates and The expectation the is we're interest side value we're interest coming as rates in real estate on industry has market as -- always will tried in players cycle down. the of rate interest of interest are other -- cycle in the be

planning they they were. not the stabilize out. to a to certainly that go But levels for interest business rates are We X down how works level, will hopefully, see the at it we'll normalized and

next our with question And today Street. Burzinski Dylan comes from Green

occupancy, the which where still think guys you guess pre-COVID. up. about you look I it, those mean, where are XXs levels? that do to activity recovery do quarter, on getting picking is high a But don't as ended comments I where I retail well below portfolio there it necessarily back appreciate as that business percent the guess, street you you we it at the today, moving was Or call think forward, is eventually still environment pre-COVID to back but see envision improving, you sort -- of an guys things I pre-COVID? I envision was

Look, points decline you caused numbers is vacated next that there. XX which we've occupancy of I Manhattan asterisk I that on that really to went store, JCPenney right? the a that, and think to put it's think occupancy referenced by about the driven bankrupt, Wall, number So big got lower

given think recognizing that's time. not lock rent accrue that it paying going Now everything long PENN we've tenant we're what that -- over to wanting do is and in been appropriate a up term, doing is else the district space, certainly we're evaluating necessarily with to asset everything with not doing, to that that to a we

of a done we've number temp So deals.

Netflix In right opening occupancy. we one We that's take we that that, now, and probably the into -- with plan. have actually that's fact, don't don't we do when

lease rent. to it's by long In we service get that have robust it taken a a should not fact, and maybe because ours large, of really unless we term focus

goes So if on. XX%, Mall like the will, XX%, that take other you if the we've that and you out, we're working got Manhattan to vacancy

Wall. is is, mind, points get So frictional that right, keep structural our and answer think that due to of number vacancy is vacancy, that to yes, is to levels the there's going But at we bottom line we historically. XX Manhattan sort back were up in

And our Sandler. from next question Piper today Connor Mitchell with comes

that coming So rebounding is the the or July about talk in rents retail retailers environment was street particular, in of there's one requiring spaces leasing. -- on back, there's how recently Madison. But and Sephora about the it of just a articles area. -- lot about their X/X high from terms rent been rents by think, it We've negotiating in, whole I thinking and June down the been seen

I'm the I of comments your seen could wondering guess and think [ us some help such some metrics about recently, Sephora between if you then the juxtaposition guys So just ]. as the specific transactions we've word

it was short-term for support, transaction. X Madison. believe deal. most. at or very the On only years call you that mentioned the I a was market It I wouldn't XXX X a

on to count it that in as what's the corridor. I So wouldn't take relates market going the new and

[ probably $X,XXX rents ] you where at jumping [ Madison Yes, don't when I street, the Prime stretch north street. are is XX% Avenue to that prime Madison know of that would Avenue. XXX ] XX%, high might ] foot. I define you on Madison a which I think not [ is Madison as Avenue. add I square characterize see that stretch to that, high of it's That's

It's same retail prime, That but seen as of not prime is older fit, that level not recovery. recovering, Prime Times off coming prime recovery So Madison. level and same that Square rents. seen it's the of has it's the not prime stretch of

nature short-term and is the we've is on well scarce other always as ] any think prime this, about and focus the blocks -- street both Vprime beauty is different as it is high city. why than of set retail I in street. the that high have And So talked all really of to [ you our

then just one quick color. helpful. I one. the And appreciate Very maybe more

refinanced was the rate a X.XX%. at quarter, You then obviously. had activity a of the lot fixed Fifth And financing in of XXX

XXX some that's about curious we Just should rate if any forward? moving think others maturities, upcoming as or for a that Lex such good

be today, the in the That's here XX -- than what's or just would the as future basis we points we did higher X-year. on XX-year it given sit probably it in probably if happened it's today,

obviously, fact long-term base you'll to lease base spreads it's matters, trend the in XXX, I rates rate those reflecting down gets think executed But [indiscernible] that, the markets heal, depends. by et extent see that you'll the cetera. the general, matter, So done much I than quarter. And are I just tighter last I think down. continue rates think some to that But see think we

our And Kamdem from next today Ronald with question Stanley. Morgan comes

Great. Okay.

Just ones me. X for quick

square the And X.X to floors X PENNX? to for vacant million mentioned that break that's pipeline, the you how feet can that relates that on you of back PENNX Going out out much space? lease, on is

on detail PENNX, than I The than plethora vacant I'll we PENNX into detail is part rather this the brewing negotiations. really have much space. But point. good into already PENNX of to different amount is in more at making very speak the is of but what get as pipeline much deals a a [indiscernible] on deal I with get want don't

sneak in Hotel could and any site, plans I sort quick PENNX activity just you for if all leasing the And PENNX? the of Can on one. on you're seeing comment updated Penn a former Sure. given

now. I right It's lack availability as makes it talked about think -- construction of of the in the past, difficult build financing, look, we've that cost to

site arguably yet. a has best day but prime in not city, the it's like come left So it's site, the

comes question Sachs. at Caitlin our from And Goldman today next Burrows

mentioned doing at were leases all positive mark-to-market. California, Earlier, had you the XXX how you

And would limit do spreads about long last a ability occupancy can XXX could side? to push think how those market the at there? extent market guess little that is or I bit the talk or you pricing submarket How positive characterize guess vacancy the Like you do more -- in to you what for? rents more? you have I there, So given the

what seeing at think the that in San best XXX we're building I is it Look, is Francisco.

have held our have very remained -- tenants Our all rents strong.

the is our seeing lot expansion in deals and what a with have getting detail going seeing overall on with the much of the tenants. the really building strength. from insulated into even in growth We're this So tenants. on these negotiations market city. Without we We're you're seeing statistically

look, at these So what's have we're going the achieving very terms rents? buildings mean kept good to We're in the rental happen the feel We rents our I of in the historically rates going ahead future of about up. right now. market.

We ahead. market ahead we the of move expect to continue be to as

I that an it. I the that in And point? and think, guess, gave been you first, are have completed large then those XXXX PENNX expirations to 'XX outlook maybe be the But And there do is color back coming aware the moving that all additional Got Okay. improvement some of any tenants' thoughts of? lease you when about prepared with suggesting we late you into this earnings. b, leasing 'XX, then, could the insight on takeaway? remarks, the right see think should that's online at parts, in

speaking in But XXX, 'XX. between all during expirations. coming think of now. that real we to it the as big expirations seeing generally We And forward, those speaking, go of seen XXX to and expiring have 'XX We're a modest obviously schedule exploration tide period. we're the XXXX, I and tenants you've

next comes our Paolone question Anthony with from And JPMorgan. today

Difficulty] [Technical

going here. I'm interruption the Mr. from your Paolone, disconnect is your poorly. for and line in line, move I'm to me coming going very on to Pardon you.

queue. we back you can the you right If back dial can in, get into

Scotia Nick Our next Bank. from Yulico with today question comes

portfolio? for in can might the some feel about office of for guess year. talked how occupancy you underway the this know leasing already for the give us the I you back of a I year trend half

today. Yes. going trend at next down that's We quarter. bit -- to XX.X% about we're know a We

at square that going the the deals go term, quarter. to if given going they're is impact. a terms vacating in feet have that's positive just we significant XXX,XXX near next XXX [indiscernible] So to complete Obviously, Broadway. of XXX [indiscernible] But in certainly

We things have the bunch of queue. in a

in be all we the higher, where up basis we're decent I of I mean sure. points end lower, this year in basically end think it But where I XX could XX, we that's at or it number terms up again, think are now, the X, number. timing. I gives all could it's basis think that take that of you near But hundred couple And there what a wanted. hopefully, think of you just I some a But just depends things year, on terms right? timing, points. term quarter in next that works

us that going of And from submarket? of expiration would can market talk looking lease else could that you give is these helpful. about, at back about the whether trying you're new just to to maybe just the it Anything that's be types standpoint capture tenants driven, and sort PENNX, some then of tenants where for a are feel there? space Yes, to share you

Glen. It's

that's And and that all district. even new really the street. said earlier, of media, sector on a yes, a the we're the are delivering good technology, very, mix industry now So great tenants, mix. different there the academy, fashion, to really, as all And I legal, type it's the entrants very all embedded new that product to [indiscernible] so, we've more due streetscapes, very new good

all positive. it's So

of sectors, terms In the et the of types really entrants, cetera, new mix action. of new that's

access right? from, critical, most of, submarket. mean they sit this, which talk it's I attracting right? at their thing important. I just connected about look and critically are think on The is you we just I where of that are when I we important, add, top access transit, tenants would some just employees the One is to think And we Nick, the

you the the -- built transit, it's is so it's when it's PENN's in significantly. think district been voice, now, So a whether it to while. think and why Glen's the why But that know don't done. so. excitement seen to heard pipeline you've I with And historically. over I I do been really I now encourage combine obviously, everybody full it's you and it's But what that's

And our is John of today question from Capital BMO Kim next Markets. follow-up a

I a this a can understand XXX understand just expansionary confidentiality and tenant dynamics you users agreement. just us get user a wanted whether or bit includes it's Broadway, little But industry Manhattan? tech the to to demand in, market the and what to or I back share you're in not under better, if space help

more can't than but say sorry, anything we already said. we've very I'm

a is lease, it at But not a sale? Okay. right,

I'd reiterate what Steve just said.

all going we're say, I've to think, again. said say that you. I Thank I'll -- that's and

Sorry.

That a gives of for calls, here tune to John. reason couple the next you

today And with our next comes from Green Street. Burzinski Dylan question

Are you this portions remarks, you mentioned sales, in -- details potential think of more equity the Square venture. able share your potential this is? as Is repatriate what to to the in recapitalizations? or I Times other Steve, prepared preferred any potential transactions to joint

Both in of those play. are

of of of first good, instrument So preferred all, $X.X a sale is, with we'll billion all, UNIQLO up the supported first if the end that dollar's after a collateral. valuable is about very the or -- by answer completes

for we of Secondly, that that through or which on source of it working the liquidity in a either is both of sales us refinancing, are process of $X.X billion. portions for

guys curious then given this the appetite I don't you where for on are shares repurchases yet, think but share touched today. And

was the What question?

repurchases. Share

still. price value excited shares of primary the of I allocation that's capital at is our was the not today, with there But teams, very the incredible respect the our in in -- objective. source

we other sped the handle, have priorities. capital We allocation have

program right the dormant. as -- So of right is now,

from with And next Lynch Brendan Barclays. question our today comes

group correctly, pipeline demand how you expanded recall discuss contributing you impacting other initiative and an few pull a from PENN to engaged I District ago, it's If Can in around to the to the markets the that is year-to-date quarters leasing how brokers of now? country.

Cushman in the the year. to in been used and get add certainly team. country beginning brought [indiscernible] They've It We to across the our has Wakefield a very city. of strengthen at good & our this outreach

our been So with and additive very to their we've pleased crew. performance them

Sakwa next with question comes ISI. from Steve And Evercore our

Just one follow-up.

factor. of is Or quarter, burning rates pieces will interest capitalization last bottoming moving in maybe that Is 'XX still higher be year earnings probably that PENN inflection in big of down X leases lot moving you and talked could had and into in 'XX? then point I know about a guys late that it case? the 'XX. 'XX and at with possible earnings an think a off play there's of I that, next with more still timing

there's there. only the visibility that's comments you going you lot But right a -- hold. give about. -- I XXX honestly, tell to much And think as and other pieces mean early I from on it's still we've those things talked UNIQLO, now. it's moving our of are Steve, and things, can

So things, of on based whatever you some I now. view those just tell may think preliminary impact to you I it it's because that too give

think year. the a that's So closer get just we we end as I have wait good the assumption, of working towards to and

Roth concludes for question-and-answer to call like I'd remarks. the this closing And our back Steven over session. turn to

you all Thank for participating.

healthy and a is reason I we a we And from our leasing if very, that that very, hit leasing, very think go you what's And why PENN is foothills York. down very New we're should is The especially market, geometrically. large walk for could that numbers very, around, parade. much. feel haven't and a #X Glen's the And the of Thanks will there you very done. you tenant project, all the emphasis give see published a on activity you in what questions on the tell call, down, recently, on take very we've going been good on we're excited. exceeding

today's Thank you for Ladies concludes your and this gentlemen, participation. you. conference. Thank

You your and wonderful lines, disconnect have a day. now may