Brandywine Realty Trust (BDN) 18 Apr 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Brandywine Realty Trust First Quarter 2024 Earnings Call. [Operator Instructions] Please be advised, today's conference is being recorded. I would now like to turn the conference over your speaker today, Jerry Sweeney, President and CEO. Please go ahead.

Kevin, thank you very much. Good morning, everyone, and thank you for participating in our first quarter 2024 earnings call. Executive me Dan Johnstone, and certain Palazzo, Officer; the Wirth, law. with President Executive Chief securities information call Chief federal within Tom Operations; and the call of Senior our forward-looking discussed today's during are to may our George Vice Accounting Financial our On Officer. Prior President constitute beginning, statements Vice Vice of President meaning

the cannot anticipated statements these will Although we give based reasonable assurance assumptions, reflected that believe achieved. are we results on be in estimates

For on please annual with information our as factors further file our that recent anticipated reference well could results, and most release we SEC. impact quarterly reports our press the as

looking for and and thank and successful you forward ever-improving we XXXX. First and hope to participating foremost, a and you that well yours are

the a in standpoint, focus But that addressing liquidity, areas: the portfolio is our prepared driving on and themes stability. XXXX in comments, day. want to quarter will plan. business and are we results and the review management to our and questions. Tom first frame first our financial available address key briefly plan that, 'XX guide every X Tom on key progress thinking any business prior risk detail, I From for we'll business quarter our did quarter any out really the guidance. assumptions our During After results Dan, 'XX George, then development review briefly our key lease-up

First, on liquidity.

bond cleared through As comments Tom's, any the we and issuance recent decks our outline on maturities will bond additional my in XXXX. both

ample for operating credit over minimal balances to the maintaining company. we our negotiations. the ensure several joint do mortgages have ventures, of years our we nonrecourse still line such, anticipate As On next several liquidity in continued on

planned, anticipate and balance While do those outcomes than revenue improve will our our taking we constructive sheet that both we originally stream. are longer discussions

development and on Second, lease-up.

delivered. pipeline of our We entire quarters are within development fully having several

projects projects on of remain drag all range to both confident pipeline both return and our sheet non-revenue-producing and driver note their increasing efforts Each attracted of As of stream, of tours to NOI of top I proposals the or continues for We $XXX issued increase revenue and approximately these million the number carrying upside, with are growth to targeted our and every our hitting earnings the do existing certainly upon continue broad customers, of quarter. additional cost. recognize will of capital stabilization, remain $XX we will on later, key a balance market build projects the project. To aggressive XX.X% impact of these a on the company. marketing million our generate they a so GAAP during

continued operating Finally, metrics looking core at strong portfolio underlying reflect our portfolio. of stability stability, the

XX% challenges, perform our market reinforce of occupied that lowest which market's occupancy fundamental near-term continues the XX% that country cities will XX% and to rates the strong will and level among our a be face remain, recovery. Philadelphia, dynamics vacancy level has largest of in portfolio that point. well, in Austin we While growth leasing participant and in one

ahead, Looking rollover of than we XXXX. annual less X% through have

revenue plan XXXX Our of ahead is running schedule.

years. mark-to-market relatively at they the Store perform as continue have ratios Same levels couple done past all Our capital numbers strong to of over and

business ensure We in start, and results has our fully take to recognize the the will to were With longer steps 'XX intermediate-term real taken the challenges on and plan continue strong facing growth line a great the 'XX and well performance quarter as that the gotten estate our business to space commercial plan. achieving have our with year as off necessary overview, objectives. first

per quarter FFO consensus. highlights. posted share, few We in with first quarterly of A $X.XX line

midpoint. million range the XX% complete $XX revenue at to million, of is speculative $XX Our

elaborate, will resolve repay the did we bond on additional XXXX, outstanding Tom a $XXX October we and offering. due recently, Proceeds forward of provide small And bond as outstanding our pay X-year noted, bond will liquidity. As off completed our amount million unsecured 'XX line maturity. credit

the activity totaled almost for Our combined feet. square XXX,XXX quarter leasing

in we XXX,XXX leases square including $XX.X XXX,XXX of quarter, our does identify executed X properties our on of of of wholly-owned XX% have company's feet square over we plan of portfolio. very efforts X our debt business the with within Quarterly recent During cash high rate ventures, leases, line new vacancy. joint of X stabilized of SIP, basis. fixed much at majority comprise It expectations. a Based contributes X.X% but million X.X% feet highlights with 'XX. And million leased, attribution end $XXX of attribution sequentially as occupied which at year-end, the We year-end XX% quarter, noted eliminating line of and on the the business during on anticipates XX.X% GAAP XX% by of occupancy XX our supplemental the having was plan a basis year-end the XX.X% venture our rental and Page down full towards our the debt of goal did do portfolio. our is of 'XX debt mark-to-market that eliminated Consolidated a Page from availability rate. XXXX. on our quarter

As properties occupancy over noted on XXX by page, basis these affect points. our numbers that

The accelerated solid the programs from page, of that sale and in We operating are implementing ranging conversion outlined that portfolio shape. very opportunities. plans and initiatives, on projects leasing remains investment we each capital on

of Our is reduced near-term our than expiring by of forward tenant through 'XX average rollover exposure X.X%. And one we XXXX. X% an to has tenants, of less expiration down and no now to largest greater renewing XXXX through X% through revenues further have than lease been

So key And in recent leasing continues submarket strength gain front the as the signs by positive. very quality to delivery increase leasing to competitive positioning quarters, and the following the as to metrics: physical our curve similar evidenced on see service remain in pickup continue has been reflected And thesis we our platform do encouraging advantages. overall tours portfolio quality, activity.

and remains above over tours fourth also by X average levels quarter exceeded tours also physical by trailing activity by our XX%. exceeded quarter tour XX%, pre-pandemic First XX% quarters

to On a Tenant quality. of basis, the all outweigh quarter, continue contractions this wholly-owned to were the of expansions XX% during leases during flight the new quarter. first tenant result

has Our and points. expansion by executed progress to retention enabled annual target us basis XXX raise renewal our

So is from is a new XX% XX% to to range XX% range. to XX% a

leasing pipeline square for up total Our stands million fourth the and is feet. X.X consecutive quarter, at

at Our up last wholly-owned XXX,XXX is pipeline leasing our square stands quarter and feet feet portfolio. million on square X.X

last the last prospects of our development terms stages in pipeline move quarter is of square outstanding up new the feet And up also advanced projects, important, yield million staging, in stands includes our square On quarter. XXX,XXX proposals negotiations. Also, feet. The are and existing feet are pipeline square square lease X.X quality at approximately XXX,XXX from is portfolio of curve. looking operating to feet portfolio pipeline pipeline which XXX,XXX very deal up over clearly XX%

up outstanding last and that well. that we and are from square proposals, the of leases So XXX,XXX square quarter as lease have negotiations XX,XXX feet feet

front. So very good positive trend deal lines on and the conversion leasing

first Looking always G&A debt-to-EBITDA our number, income. X.Xx, an to fourth leverage, the at up redevelopment quarter lower our development and higher quarter up net was other as primarily our costs and expected from quarter first to increase and in due

currently metric core quarter within EBITDA at range. and Our our X.Xx ended the targeted

quickly ventures. at Looking joint our

cash base at investment venture, scheduled in did was reduce first one to quarter and mentioned, year-end distribution. the another venture joint year-end reduced at balance our I we our As joint

million. such, from estate joint $XX.X ventures further I Brandywine operating we 'XX. the also are XX for with as debt in record the metrics attribution operating no real have lowering operating And eliminated SIP, those partner Both with secured fund by, half we on other nonrecourse by debt, This X attribute joint nonrecourse As obligation Page our the solely our loan we corresponding previously, ventures first mentioned loans the during results. maturities both money. do noted any reporting eliminates have we nonrecourse and are additional now or debt -- no to our of and of as

That each engaged being as lenders. partners, markets and the And estate do as be present such, continue we opportunity real the to with in believe debt productive along we recover. our conversation with said, ventures valuable

than a during are and extension our expect to partners refinance full as our lender extension anticipated, progressing working did, are Square While we time frame. Cira on originally these within the resolution we quarter. X-month property that discussions We with a from slower receive note, the next a do side

a In additional Based business our terms of of our by elaborate upper higher our early as financing guidance, $X.XX. that on that share bond interest above guidance result an expense. and occurring of FFO of as months the X but have reduced expense, we further, end Tom forecast $X.XX per million will $XX plan being we target,

on CAD FFO opposed that range is share XX% our $X.XX now So dividend, were share payout our share. And range, at per FFO FFO based to to and $X.XX guidance to our $X.XX ratios $X respectively. our of initial per as $X.XX revised revised and XX%, per

quarter our better first We the were the during of At forecast. coverage $XX business $XXX sales XXXX continue million between expect do year. to midpoint, and that still plan than ratios million our

$XXX we quarter, million with sales the the dilution. discovery. to do the sales for of those And we expect to market last minimal have mentioned in $XXX I to million do in about quarter year, As occur during fourth plan price

and in land We marketplaces we did to and parcels Met sell continue are the that D.C. also noncore sales year. suburban targeting Pennsylvania we'll last

from X.X as developments, feet, leasing million And is is which I XX% our development quarter. last looking at our noted, up square pipeline

We an status that increase also pipeline. saw in of the

feet square So outstanding space as and negotiations, we feet square planning. proposals under square of early now, feet undergoing lease XXX,XXX of have XXX,XXX XXX,XXX

components now activity those Tour and to are up. velocity of XXXX delivered continues and The pick levels commercial One to JFK continue Uptown increase.

the that our X plan these construct be however, time any and space space, revenue revenue recognition, 'XX projects. plans, complete floors will accelerate midyear. To completed However, of from by are spec length include coming permits, does given financial of spec in we building each X building suites not obtain to the

have feet currently negotiations. project quarter residential up on we is a is levels of of the an In lease the And slightly on the up that at and from that's square XX% delivery building square with have specifically looking pipeline Tours feet. scheduled commercial projects, XXXX remain last occurring we active nice from early daily. residential delivery which step we component, XXXX leasing JFK, totaling a units The leased, the XXX,XXX quarter. Activity Market, front about are this continue. but XXX,XXX approximately in with later last the good. pipeline leased, year, for XX% remain at

into A needed is date We a building ATX on some in did that perimeter to construction the slide be effective work to budget. Block done and completion QX 'XX accessibility. infrastructure due Uptown delay slight

project of feet. We square includes XXX,XXX of feet and is leasing prospects approximately spec to that begin be ranging phasing 'XX, about from quarter XXX,XXX feet XXX of advanced have did Our floor and component multifamily pipeline will of suites The which by component a the square a year-end. of X,XXX second units do commence, under square mix course, design. the of XX% third stages we pre-leased in anticipate during will residential

Our for a single stage Cira phase and floor. Tom B.Labs are nearing of now financial negotiation the lease next with entire an we and of overview Center is results. provide at underway expansion completion, will final tenant the eighth of

you, good morning. Jerry, and Thank

net quarter quarter million first and million totaled share. first loss Our $XX.X or per $XX.X FFO share per or diluted $X.XX totaled $X.XX

above Our from a met X the $XX.X higher $X.X million to was of due above expense one guidance. reforecast, we regarding million, 'XX, to onetime Contributions and primarily our quarter at ventures totaled projects. G&A first due joint quarter our to general compared fourth recognition. compensation our joint our have of pickup variances FFO primarily some observations results consensus, million venture our $X.X highlighting reforecast,

we be guidance. and relatively variance continues quarterly This the variance be consistent anticipate timing year to to with number full a

service debt and was quarter and net ratios X.X% first Our were debt-to-GAV coverage interest XX.X%.

our quarter was X.X%. our to annualized Also, X.X% X.X%. debt core above was range X.X%, just net first debt-to-EBITDA net annualized combined and it of Our was

Portfolio venture changes. and joint

we X those treatment. core ventures for the changes to X following quarter, no have from joint reporting accounting treatment on made ventures The this of to based considerations. was While reflect accounting our recent removed our portfolio our we metrics

existing our from loss joint or write-off, balance. not is future off Because income we of of the recognize nonrecourse. any investment and that As wrote XX/XX, we will debt ventures those

offering subsequent to bond issue anticipated financing Jerry support to our XXXX, our the April until November to issuance a have improved unsecured $XXX and were material $XXX from closed And maturity increasing liquidity X. with by to XX. million bond activities, the For our goal borrower close remaining an enforcing our eliminate higher line objective highlighted balance no million, issuance, we on with maturities risk able we near-term million as earlier, $XXX outstanding proceeds bond completed the a -- this that of of helped

X.X percentage for our fixed fixed. to at we high wholly-owned XX% our a We're of process of XXXX of X results will Friday. be X.X% a then weighted be in of we'll have the after And with portfolio to know our issuance, are in that average of this bonds years. maintain this weeks. We and those redeemed coming X debt The maturity tendering the tendered next the bonds, not balance

with to our bond business we and the account timing in the the line this $X.XX increase new by our of $X will debt. expense -- the pricing was per floating rate increase XXXX of While increased increase million curve bond interest interest plan, the for the primarily share for issuance -- about rate or

by guidance As such, the upper $X.XX. we lowered of our FFO end

pursuing a financing transaction. transaction not bond this secured With at the point, we are complete

other X. as with the on debt leverage. to through Square XX lower the put XXXX potentially we our maturing are efforts Jerry We our Regarding July have our We joint days mortgage certain for with and our on XXXX marketing sale maturities Cira current mentioned, JV extend extend market lenders properties existing did to commenced working venture with the maturities, lenders. dates partners

more general at XXXX, second of quarter we following the the portfolio closely company. operating Looking have assumptions:

Our million our line first in $XX income level and roughly operating totaled be with quarter approximately results. portfolio will

in consistent to $X in the Total negative second with million. timing $X fees million. income first late ATX is our The Termination management is and in net our recognition. our Our our decrease leasing second improvement is residential other from will $X fees FFO sequential to NOI quarter, and will the commencing million. quarter to primarily sequential quarter. joint interest due will will and development roughly contribution approximate quarter total Quarterly prior $X.X $X unconsolidated The for total years ventures interest a expense will the the due will roughly deferred pickup million. income $XX reduction of onetime million operations. G&A the expense and Capitalized million. compensation from be be the

On we back expect approximately cash than are the coming do a from interest million. the we'll net we will something bonds gain totaling we million, generate hold paid. the And tender, 'XX at roughly income and total onetime That excess less we par. until -- will believe $X.X bonds increase $XXX investment buying generate

approximate our will XXX and gains, sales shares. Land provision material tax be not million diluted share count will

totals capital plan million, $XXX at and Our fairly XX%. range our is remains and to CAD straightforward XX%

Road. million $XXX to capital redemption. Primary line roughly end to the of dividends, $XX plan million For and increase costs, and our sources will interest, bond outlined, plan, the Prussia primary million availability. hand $XX uses million on $XX Based to of going revenue be unsecured is be XXX expected of proceeds common cash cash our $XX of bond net ventures King revenue-creating of CapEx, $XXX contributions $XX $XX our of of are offering. of $XX joint of midpoint and $XX year for capital of million redevelopment million at on those loan after million million secured related flow should proceeds development maintaining, million leaving loan our construction credit the full to the from undrawn, XXX sales and Land the million

income incremental to debt-to-EBITDA projects primarily also range year-end. with We X.X% by minimal within net our the with will capital of due to X.X% an development on project increase fall that spend project

XX%. Our net debt-to-GAV will approximate

and for as net net our joint net of our our our and and X.X leverage In ventures will range believe metric the leverage to completed X.X as projects. more debt primarily core well -- core addition better all be metric our eliminates active core the development our our debt is the of joint excludes year to portfolio and unstabilized of shortly. leveraged reflects highly our development that ventures core We projects redevelopment debt-to-EBITDA,

expense to to ventures. decrease our net fixed XXXX, over issuance, represents unsecured our to of projects primarily recent quarter, joint anticipate net coverage our the as charge our higher the from now stabilization we equal consolidated forecasted stabilization, turn call approximately core our of current and joint the to interest reduce Jerry. development debt-to-EBITDA due continue begin which to During the exposure interest ventures. I spend from should ratios X.X%, a capital debt-to-EBITDA and back and projected our reach bond first We our

much. Great, you very Tom, thank

strong the development I key through and very takeaway So And mark-to-markets, spend both velocity to our effectively. in exposure solid I our our rollover We guess solid accelerating capital remains manage shape, leasing think, very is presents foundation. having operating portfolio anticipate in minimal portfolio. do anticipate annual we 'XX, a continue

improve business portfolio liquidity days, our the past recognizing plan our baseline continues evidenced portfolio space. in that footing, actions a keeps solid executing as in the operating to very XX we're -- challenge leasing So by in a

people our We front and the have up earnings clear to the of the property book focus customers projects on growth. build in great day, development our we're to that forward a management on leasing a leasing with and team touch generate pipeline continues every

and that wish So well. we as usual started where and families your we and you

And for ask and one to open the follow-up. up to questions. yourself time, We of the with you a that, are floor delighted that question limit we interest in

at this Kevin, So prepared to point. answer we're questions

[Operator Steve Evercore question from with Instructions] Our Sakwa first ISI. comes

sectors. corporates pausing and projects. the little Jerry, making the activity. Schuylkill I'm maybe we've on are elaborate kind on thinking of a the a the other both economy, indecision more little just interest of just could particularly first, bit There's Austin rates, discussions of how Yards you about for development curious guess, you're I side, kind in having, and bit seen leasing on

wondering haven't is you it just projects holdup Is converted high. bay? scurliness of more been and I'm the just those curious, And the of obviously, completion? that's to getting those. proposals at the it have the economy Or just keeping people further I'm what So pretty kind But is? pipelines

Steve, you of you. a think lot good factors question. Thank it's a the Look, combination I mentioned. of

into question competitive of continues developments accelerate velocity more market. a in obviously those are actually to And some that's leasing owners for our which decline set because there's our financial a is seeing the think in no portfolio. also is what I strong other that building juxtaposed against we're traffic and these magnet bringing stability top of having difficulties higher-quality financial properties, the our

and of prospecting leasing possible is generating sure So all intermediate-term we feel done the that's see make core an to networking in outreach, outlook markets. good job have about that portfolio, we and whispered of amazing near very leasing additional our through teams for even deal our our taking every place

So I very very, effectively. of is think the capture CIB working

does uncertainty has last however, the continued call question, on the and projects leases as when the we're to I is, excitement. tenants. to projects, mentioned delivery a And lobbies think as they projects no stages. we're was point were on of tend seeing completely where captures kind larger to to of now sense is cycle really I particularly the that's are There do the why the of be in a that the it the particularly think times talked of development reaching until either are. urgency sense number on or primary Steve, extended as to final the very sense a really degree done imagination the play into these create their to about That landscaping strong a get is their hard true tenants we in part some macro done. your full of spaces the are really of motivation of done, All generate the pipelines I amenity

as than experienced XXX,XXX really XXX,XXX, macro smaller into quarter But going, where picture lot economic that. That we lack seem tenant. space pointed we the not larger the end planning more of you're to said, did certainly on the tenants, out, square rates before a are year. being we we're clarity doing the plays climate, of foot this the the The be in Certainly, that.

of think We we that outstanding proposals have number traction. some will a gain

activity we suites to near cycle So Even we're term, this convert of the that, on be in compressed that out, a actually spec we're executions. more the on we do building to hope time. tends pipeline lease that can great seeing some

seeing leases core the commercial But and the actually of into I of kind through projects all on are think XXXX level on tour as uptick to we're side, and with possible season component very we're with X of happy the happy activity of residential with level key we're get our prospect line execution anxiously lease across leasing the we're activity moving in every velocity the pushing development finish the seeing both there.

comment one I'm project same competitive this, had I can know I but Austin. signed that could if happening? in And to are prospects to don't then and move wondering, just time given the what you Okay. in of And the there I on are know Uptown that really not a the a or deal submarket in maybe maybe challenges stay IBM follow-up. lease getting financing, guess, maybe prospects the line And that chances IBM rising of ATX? just

to IBM. that to from of on with can't in speak touch a close But tenant whether there been at to have do efforts. and with will I takes look, that the track reduce marketplace the financed, we developers' way to Certainly, long smart very If rumors of lot the our is that look in size that or building. Well, remain basis, speak new any we you, there's What of -- they that more on financing the people regular time in direct be a I I both space sides continue will not. IBM that other direction location a remains IBM whether get of how project out table. seen. deal either or active on in change perspective, transaction. a Do They as I cannot proceed are obviously figure tell ours. there's whether to the specific there's Steve, intentions motivations IBM's to to or

team. leadership local Our very and team has the rich with relationships senior robust

that advantage So there's of it. to opportunity, take it. to an we assured there monitor rest be if continue we'll And

with Anthony comes Our next from JPMorgan. question Paolone

around some to pretty quality. the flight stats you Jerry, specific mentioned

maybe think less up seeing bit are are to before, spectrum just up. behavior you just XX% had total understand the a that to same, about better? move a Can more like moving Just they they willing quality it bit keep on to talk than rent their I take when trying tenants space the was trying they're you're rent? they dollars taking

And Tony. I'll tag George Yes, and team.

in think kind is of position continued their what really I culture. at their between a we're are employees platform seeing their quality of brand a employers but bring brand physical to not employees the back as to most work want really connective space and and this that dynamic just find have because serve helps to that important point, them productivity, very their Very, of tissue back culture.

increases. going an A that's country. So rental think you've quality seen such lower market I why properties throughout almost in And on that's performance And the the rate think every kind dynamic seen and of a we in you've disparity same Class inescapable of dynamic forward. the

rates the You're on certainly rental across in the higher quality pressure board seeing higher properties.

a effective and rents our markets. number growth of real So in

George, maybe things the you seeing on of can speak the front. you're that leasing to some

Yes.

specific I foot the with higher the expense paying for okay better objective. those their same. in them building right square focus the footprint who mean getting think flight kind I on of taking do to I of question, your think, -- our is the per of the better are that primary the systems. prospects And be rental Tony, that if They're to remains

in seeing into good see where But that to same tenants of And that Radnor not set. our both time. we're markets. and and continue we downtown obviously We're portfolio so seeing expansions coming occurring our seeing buildings only we're the number at those a also trophy new

expanded Radnor, tenant at we who square additional foot renewed an XX,XXX square same feet. quarter, time, this So XX,XXX a in the by

already us a their and market more back people back operate rental needed wanted high-quality space business. So the their a in to actually way rate the for they all they to get them very decision get good in them at made and that

space how we're are seeing of point tenants really or no just workstation reduction not much that, Tony. there's question office And Look, assessing desking that And they sizes. hot a need. final a on or really in lot sharing

factors certainly of is floor buildings I the people think much less so the -- where than actually out plates some from for contributing better floor we sometimes moving particularly that you same plates. see amount than the the are of CBD when the of moving with of older of fit less in efficiency Philadelphia that they one same we've of space can that kind efficiency almost of had because that of feet they seen the have the are they're people than the square number -- hub, so before tenants

question changing of So number size contract we've to look, a that need there's particularly no seen configuration. tenants, don't space of their law they They're size law and firms in office libraries. some

building efficiency better operating there's a of So plate do overall place. in really and dynamic seen it's function that control over been the space major of they floor clearly taking I But and a expenses think driver that some have the situations take. we've

on end for down. just taking interest top color. a follow-up understand I the year. Okay. is the the Tom, Great. understand kind good just lot of costs And That's my maybe then for guidance of

wondering, it's it any the upside is and Like bottom or not it Just crystallize just why from guys is basically there if you And look you there? the is? if still have you your year at staying where out. in knocked can whether again, pretty speculative also early revenue,

we to Well, the be expense range we say on it one revenue. I'll I let of look down think I was But the and and the at George want interest just at handle take guidance, side least wanted to the think calculable. spec fairly

line if less bit, showing really interest what's -- certainly to cuts, out year. may any, driving quarter, it. couple and The have instruments. we curve that's a be have some little rate a mean, this This I do double little floating we is if and has of specifically, rate going use a there moved the rate

activity. So we some now, alone We plan, transactional our Tony, it progresses. as left kind we'll for year of have, do then the part business of and see how

how see where plays leave now So into it we going range the to the just quarter. it next wanted and was for out

it's George Yes. Tony, again.

the touched of think spec top kind on revenue, the at end on, as at we've XX% we're XX% range. the I midpoint, of

us. of it's I be not kind opportunities think for likelihood of only even that that if a to the would maybe have to renew One decide couple top to ultimately outperform for another kick can year. end, expressed that the tenants

kind downtime. can of bridge we perceived some be what was of to So

The other spec got the in number of a suites thing is already we've portfolio.

region spec plug to X basically X existing every are that Just play. maybe and has suites

permitting somebody immediately for and need in we to a all and after us vacancy to build already opposed can we're get move to to closing start a So through as calendar of is the XXXX. in additional they May prospect the process negotiate to is normal revenue call kind do building going have lease. and generate being, quickly X, And select terms for go the process, it, where revenue the of we

next Griffin comes question from Our with Michael Citi.

justify color I Can for the some go why pushed stabilization to I give wanted by this a is large need those supplemental, around was yields? a ATX would tenant see hitting property XXX,XXX or feet down your to about to chunk a out more to bit. as the the quarter. Uptown square was take maybe of space to you kind back saw and of you case in the stabilized size so, thoughts what

hundred pipeline feet. to tenants ranging mentioned, as square several X,XXX I from has Michael, -- feet square the up Well, thousand now is

lot for a put stabilize. can seeing the size, given do larger mean, to issued between is have we first the real quicker pipeline few the I clearly of we coming a the that, -- are But the achieve. Obviously, demand. certainly, and monitor velocity, tour that quarter supply right think in increase I now we'll marketplace. been of tenanted we online realistic proposals this number absorption a that think in disequilibrium is -- us a the there's goal where we we pullback So that's the continue in in the actually to the marketplace a positive

first versus during in and the But tour of third decided -- versus 'XX. quarter quarter pickup the activity fourth last the

year. are the the not the it's couple at do that for large we users in get are leased look, the drivers We there. to of project, that the to a by given But that be fact market. space So overall in have which demand were encouraged challenge that strong Austin very fundamental of a dynamics going around surfaced end believe

year, business So we're a XX XXX relocations. Last think analyzing there's that different into still invest than continuing about in so moved Austin. money Austin. is The people of with more number to comfortable day a or group I development

and project can that location. So market that And efficiency, think of quickly. in -- terms is a high but amenity beta, change we top of is our can market package its presentation, is very

residential a that leasing very that complete, become that we floor amenity project to aspire up soon reality. activity. actually is confident generate creation So that is now additional done, opening we And some being to feel going the neighborhood that the with will that,

guess quarter? first I Yes. to out question, And last stabilization my then part the the of why pushed quarter X relative was quarter

Yes.

get to in, of of I just guess our amount given at the the amount tenants seeing out how some think this space. best to on and that's sequence build the permits time done these point we're

you Got Rockpoint, JV back I it And you. that potential just venture? as then properties this think JVs we which that that we later could on? were we about from believe was and as you should see those should the the other Mid-Atlantic JVs this talked on eye debt helpful. Should keep an I year. That's handing keys. think read Or attribution restructured. And maybe MAP some of the about

successful doesn't there Actually, of question. restructuring a And that that a be mean great not debt. necessarily it will

that ventures you wrote 'XX, go. basis we underway. down. our going recall, assess will the we operating But may of end won't at still as sure results recognizing we not Discussions properties in where they those the situation X the exactly forward. We're On be are

a the MAP, Given investment recognize nonrecourse, appropriate completely to recapitalization the discussions Brandywine, terms are change fact the base those I that to that that for is a recognize significant continue. you no But was continued mentioned dynamics by But lender not concern. operations completed would to we I base. the years. be or play we We've the debt collectively, would extent the could think still restructuring mortgages it of have a That we we cannot the There, an conclude are completed, operating amount slower at than I are there's there pace underway as that there. that us. And as over makes of moving thought it a sense profits with They're we for reaped negative discussions like. at investment continue until think us. other think that same venture, in that

question Burzinski Dylan Our with comes from Street. next Green

going back questions the development pipeline. guess, I on to sort the of just

projected that about guys the about supplemental, those volume at thinking how lack going lower given yields far, start do as risk be sign the we thus of leases? guys that? in As leasing put should you see to I you think cash of mean, your Or we you

is lease that we proposal given A additional all we the now, potential project make the Look, we're of will done. for of that to what question. those we've I proposal. those those seeing feel that visibility for on yields. And compensated start on costs. transactions able prospects the level firm. assess assessment every every we as will But think sure now, the of execute as confident properties, a to We're in But commercial pipeline right this those out. we those made are with to point, reevaluate with still at our hold each put Certainly, in or rental feel we X uptick we comfortable slight yields. out that, the transaction We'll that we great need we achieve we is TI TI to get right get yes, leases, rates. But that have yields

seen bowing the with large sounds on on you I lease over of something? and a guys Or several that occupancy pairing Is the sort increases anticipate comment few years. maturities sometime lack comments of leasing just And we It the are like over next a your of you've the quarters. in the appreciate missing sort fair there characterization? I guess that pipeline And last XXXX.

you said occupancy... Dylan, sorry, I'm

in Occupancy the... sometime XXXX, bowing in

with so. mirror we one, for something mean X, large those I Page Yes, Yes, been a and move-outs impact think fortunately happen that us. the basis do they've of the properties to on I But are depicted I think expect point apologies. Number couple on kind today. in got as rearview on those, XXX of different noted, have a again, put occupancy fronts.

foot XX,XXX renewal, in XXXX. that largest the speaking rollover and square about with in we Our 'XX have we're tenant square is currently nothing XX,XXX feet over

think of and be kind these of this sale books. rising candidates conversion ideally I today moving the it at is off from where of tide So point, portfolio both only the some and/or kind core should a

question Okusanya Bank. next from comes Omotayo Our with Deutsche

may funding out question are A about just of if getting turns XXXX what curious that, you on quick the project? the thoughts loan about the And future complete not in development, kind it construction be successful of getting that about the status to that.

is This Tayo. Tom. Sure,

XXXX financing process I look at for on think to loans the a had been financing, we and difficult. has construction the a started market

However, of look? have we've get They talked of to go as done. we we We just then realize in yield asks of to little a We a it still the on to I to a a number lending are to at and institutions the a I able pipeline bit that, initial that for to the love see see feel the an need as financing that We look be done. project. XX%. think can room leasing us see good that loan loan. achieve. give we'll area. They talked to And that that's will need about, think get that construction cost at starting lease. rents think the in of we little And going bit as very a is reasonable opportunities we I someone how some that, put then us

we sealed, X the previously to will be showed then us enough lease financed we will give the that it the They done. a room great. get -- lease pre-lease to them hopeful at project were we're or a that and looks the just So may done, help And financing the get building and Again, internally. think get very lenders will it interested.

as And at sources point, talk of well? capital bit That's little given some how kind the just could just you thinking this versus about the you're a dividend helpful. about of needs then capital of

the And we Yes. board Look, on about think year did certainly, million that a $X.XX regular reduce a to share, total so in I along a payments. reviews with down $XX management. it basis,

close loan think foreseeable line fact and did front. the the was key we the maturity as back can view the future, certainly with bond credit that it we that we a the of ample runway for reinforced decision company the a to think variables I And as it we had couple ensuring that when the I keeping transaction clear then X. liquidity today, at of looked of one things run on

fixed improve, debt wind in is position, is to and mark-to-market good restore becomes a to improvement and did standpoint. that really marketplace. the that both the it unsecured stakeholders as to on Second, reinforce of our all income hope the positive Brandywine side versus from conditions negative, And our a we up able committed sheet very a liquidity as investment-grade we'll balance be unsecured the our rating

at that So issues look was a is, take key I liquidity. one the of think we

capital. going ongoing was to the portfolio is be consumption Second stability, of what

construction rollover condition. forward, core XXXX capital the And business, leasing on we build I the talked then already mean money a is, capital invested activity. is even kind as we've required say to of we on that news pipeline, we when think good the to And vast question left platform. the shell The little have stable with loan, really in additional the of deliver the majority very other and And to as into look call, there's the development going very at we questions to very little fund.

stock the the and liquidity as are within its markets elements on Board to balance price alternative a well I quarterly opportunities as is as the our travails top think to shareholders for about the of capital and good how X of return the on despite think investment company. what they those So mind impact our visibility delivering

Our with next KeyBanc. Rana comes question Upal from

comes XQ? on color at And Could you give X what JFK how Uptown us lease-up the in you for do some online revenues when going? anticipate XXXX it

Yes. Great question.

much holding. kind we're I that tenant activity mean, acceleration what month, pretty of pretty in XX the the were very plan. of seeing we're And with we in is which building of XXXX much mix units Effective rents demographic doing at line line for. think the project. in pleased our is with residential a are I we're the hoping

early second has Down do plan. units And place. quarter, think starting plan very online project We're our won't tours. favorably. the in taken XX% we'll kind this leased coming continue quarter. to and range, the the hard built later until anticipate do view that launch into ATX, we So financial to to Uptown we marketing year, at already the third XX% of those hat in that demographic end be marketing that's start by really will and The of

of out couple leases a for have We signature already.

delivery in anticipate, But very given end XX% the we competitive. the be of is in Philadelphia Both of that by year. do kind the as that market residential well line of time that occupied the range as Austin we'll in project

doing our we well Avira, and do packages, budget. up be So I Austin. eye keep we're We eye on concession mentioned versus and a keeping down to close close our here on in competition, at that in forward. a very seem We'll in in traction Philadelphia of have see the to lease executions have based both we actual Austin. on and properties advantage go how direct both quality the we'll on the But think some going

increasing to what's That in anticipate you to when a you have? on that comfort expect bottom you renewals mentioned your timing? to year, to at And do near and but net some level really you point maybe know expectation. this you timing rate, positive absorption Great. you term? helpful. the the expect that or little of get the comfortable you occupancy And retention was driving going felt back do And higher renewals I

Yes.

the based ability to move on we've necessary our really to the change. the renewals think range that was I that executed make fact retention

able kind that fact then in when was the we to they obviously our renew, a by clarity little target. speculative new So left of where primarily driven that's that how get the It business on fact, indications plan the may got of early adjustment. very were leases of that we and compiled. And to kind tenant did, couple renew, were make renewal not was original to

comfort our original occupancy even deliver the we just business within plan So range year-end moving further that range. that solidifies

showing turn I'm like call for at further I'd to time. the closing back any over And remarks. Jerry this not any questions to

thank call Look, forward all 'XX participating updating you. first look plan earnings thank our in in on again second Kevin, you quarter to activities summer. earnings We for the our business our Great. quarter call. on

have again day, a great So and thank you participating. for

Ladies today's and concludes gentlemen, this presentation.

and now wonderful disconnect, day. have a may You