Vornado Realty Trust (VNO) 14 Feb 232022 Q4 Earnings call transcript

Good morning and welcome to the Vornado Realty Trust Fourth Quarter 2022 Earnings Call. My name is [Benny], and I will be your operator for today. This call is being recorded for replay purposes. All lines are in in a listen-only mode.

Our speakers will address your questions at the end of the presentation during the question-and-answer session. Instructions] [Operator

turn and to ahead. Corporate now Senior Steve call President Vice Counsel. the will Mr. over Borenstein, I Please of

Relations to under Commission. quarter information on fourth we Trust Form supplemental XX-K section. our Vornado financial call. Securities on the as Welcome afternoon, and our well the Yesterday our Exchange annual quarter report available issued documents, release website, packages earnings earnings fourth Investor are with www.vno.com, and These filed our Realty as

and the documents we are discuss comparable these release, call, In during of will supplements. earnings measures certain today’s Reconciliations Form measures. these GAAP financial XX-K included our non-GAAP most financial in measures and to directly

actual that be from statements to variety statements materially made a aware due statements these be risks, factors. Please and other may uncertainties results and of call differ this may during deemed forward-looking

to Please information forward-looking may The our Form include that report be on our duty the The Commission, XX, time-sensitive today’s company as a call Exchange accurate any for date. with the to December including not refer statements. and does of Securities information uncertainties. annual these ended risks undertake XXXX, for update filings XX-K may and only year regarding more

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

and also present questions. for is available team senior Our

will over now Steven I turn call the Roth. to

Valentine's everyone. good It's and Steve, you, Thank morning, Day.

Ex-rising impacted our expect be As business with Fourth FFO full due well. down quarter XXXX cover quite interest of to XX% higher a Michael a XX%. year we interest year, up a surprisingly, core year comparable was rates. FFO will rates, in negatively will performing strong rates. was by XXXX is Not moment, down a higher

be our all are are dozens with We reaffirm you our other of dozens it's thoughts. for York of their commitment second city want most York noise, the New and country. market share Notwithstanding tenants York goes that grow continues and I'd who America. home. continuously York. other few in survey tightest New all to headquartered the their, stay a clients to to cities chance the live important that the to like in whom is by residential New New And the not who People here. in area so to And speak, making in

and important, concrete but capital our the are curtain wall in business is raw essential Steel, material.

that's the cycle, capital in now are middle and of Reserve's interest result which is We scarce. Federal an the And is up a understatement. tightening rates are of

the at Notwithstanding most operators run borrow Fed at can't borrow funds XX% all. of X% can't mill at real estate or

loaded Several and X have began So construction to over We in here's all be. PENN know the cash years important we in are PENN what Farley when course. district. X of billion We done. $X precious would we this fund pre Facebook and XXX% and development then projects how ago, PENN our didn't

these X that's unencumbered. assets So free Farley X feat. clear for. PENN finished of All now the almost quite will round PENN so end. will and and And Facebook is paid finish a And three year and be and

that partial is handled no series observe lower observation even they're rate giving a at caps, helpful. against prices and stock on mature in We but of XXXX And would rates, that is in swaps provide interest found They there really maturities. We that all XXXX of loans, in for a then company put only very which And market our interest protection might the protection. loans I rate a term. have if a credit current to further locked rising no market.

at building, vacancy. leasing our will right our deal grand Please Park certainly build December with involved year, the retain annually. XXX,XXX XXX entire a tear still Samuel almost by at million to larger in million release X.X% result of X.X assembled press on the XXX,XXX too square explaining at the this of first way, a trades new down high Beginning In foot deal foot declare of XXX square And important January, dividend we relieving a us XXXX building, our This a an which tower cash completed chose us master of X, quarter essentially of a see size square Citadel site. feet their of transaction. a we allowing yield. trades stock

We friends venture is quality intensely validates me work aggressively as that our his per I a that of is Ken or that Citadel on return on at new. class, every by or measure whatever site, five the and head everybody the and of have to This might Wall tells employee the development the equity for differentiator growing. lots any team, Street return simple Interestingly, deal days comes significant fact of a firm our week. day, focused

There that Americans working I at start here, but now XXs And work X:XX home alone absurd table. will call behind. from think companies embrace years their millions they left crazy, me think be that from kitchen home of think at it's will to from a learning think is be I I of

from XX And be his Zoom by XXX a way, today. to the disrupter. high stock may a down But is still

based raising supplement for returns. PENN we'd XXXX X that our Farley our in projected fact the our we projections notice updated PENN X that development This on aggregate and in will fighting be reaction as market XXs. in well an X. sorted the to average PENN on square PennX And PENN XX,XXX outstanding X the and are based getting we of rates You feet

at those achieve to strategy new below very well rents Our returns for required construction. here strong is

by now think our quite accounting of that ground first lease a off of GAAP numbers is In the billion quarter conditions, ground required current X should XXXX market we we a PENN and estimated bit on lease as statements. reflected now convention. that XX Based be kicking process lower. The in

with tighten likely be the of increases aggressive markets. caution. feel product quality generally effect will expect be lower the leasing rate act and will business at continue capital frozen Feds XXXX and consumers We This wins and reflected believe volumes today. at belts challenging as We to their

new bills, commanded our lobbies, amenities PENN new $XX new long at etc. Just Not scale new X a at PennX, look premium. construction ago, at

Now it or the $XXX think too more. will and Does adjust? that's premium that commands market anybody high a

build landlords an now and the point be landlord important In and estate a this which of more period the almost markets Capital upward are we making One fourth history impossible followed the pillar is markets supply market. are. will market and next great one. legal of real constrained bull it to to new, all here

Michael. to over Now

Steve. Thank everyone. good morning, you, And

interest experiencing mentioned, rising headwinds had Steve we rates. As year a strong despite from

last comparable $X.XX as year's share quarter quarter, to per or adjusted decrease $X.XX was of XX.X% as XX.X%. per from XXXX. fourth For FFO or $X.XX up adjusted $X.XX compared Fourth was the share, year comparable $X.X a FFO for

of increase earnings expense non-cash impact While the for were PENN and and straight estimated net higher X quarter line from rates driven expense. ground interest the XXXX down primarily the by

Our core business new leases. had rent strong and and the performance commencement office from retail

quarter-over-quarter We financial in bridge supplement. in our earnings have released provided a

FFO Central non early other in dispositions, We asset several share. have South total XXX comparable in per from which non-core items an Park, $X.XX by increased the gains and sales quarter from

increased million charges we previously approximately investment the equity million during Avenue of in was same as charges and cash Times store the announced prior of X.X% quarter quarter. be fourth noted released quarter impairment As not XXX joint Fifth Companywide retails and the the non-cash FFO. It for impairment recorded Square included XXX which fourth NOI for fourth over by year's should venture.

the year's same compared X% fourth quarter. store office to overall Our prior business was up

business office up same was to store York Farley Our at New primarily X.X% cash rents coming online. due

was a primarily commencement NOI same very to due important X.X% up retail store cash on the several strong rent Our leases.

to Now turning XXXX.

XXXX result at comparable reset be earlier. FFO impact the our from certain from a given down economic current we net makes capitalized rates to rent assuming and the of the of of than which earnings, on the environment be usual, tax $X.XX on during variable the XXXX. current that's of period the ground These the FFO more curve. of higher running items. While additional interest lower roughly of interest prior of a rate $X.X income interest PENN higher lower mark difficult known assets currently year as a forecasting expense full debt include result and XXXX $X.XX was expect property a Steve potentially from could reductions silver through second offset recognized mentioned from accrual X These half in the sale by XXXX

in the markets. past more overall pre-pandemic the the and both Now Companies policies generally more exercising sentiment at are level work with feeling are shifting grappling right The slowed are hybrid norms. months turning still leasing pressures, of businesses closely lumpier and flexibility. year activity and opportunities. But the of cost is as and pace We is see the has leasing to few XXXX as challenges caution.

office in Tuesday Thursday. throughout the We portfolio, our real a are to seeing pickup particularly through return

month employees the together. Both month. Utilization the rates for working prevalent are employers cultural productivity, Flight the approaching in XX% and theme is tenants. improving by quality clearly of to and creativity to office be benefits collaboration, and continues recognize momentum

leasing However, activity broadening out. is

pay in activity not seeing willing traditional the and the new multi-tenant are tenants A as buildings are in pressures to are rents. with We a pickup all cost aforementioned Class construction dealing

struggle emerge Many may on One their will focus buildings thing with private their which and some ones at in to capitalized retain is these landlords quality will or which to Tenants are them. Strong landlord. their issues cases limit we in levels, this leverage do particularly even like of well Coronado buildings to year to the beginning figure assets. are begin invest think heightened brokers avoid ability the a out high capital enough smart their landlords benefit. and are

square sponsorship with with foot partnership relationship master of Park announced in with Avenue has in a new million XXXX at XXX Citadel. are strong square which lease, the beginning building transit began previously potential class our future Park this the example of We lease the to of have our team, built foot the with with and for world flight an action perfect XXX,XXX site. initial relationship the X.X we culminated proud quality A in XXX Citadel as

X.X healthy negotiation. New with almost in Our overall of square another financial finalized XXX,XXX York The leasing square at active. XXX,XXX of in particular sector of in to stages in feet feet pipeline leases, various be being square continues in activity million leases feet remains

Turning to retail.

taking inflation Manhattan and search deals see the are retailers overall but daily to workers about sales, pre-pandemic for the new With generally in Retailer become levels. still and much spaces. new tourism more locations. spurring in rebound rents attractive back retailers lock economy are to is starting to levels, store which They're more continuing we're concerned confident active and given more the and

is market happen cautious remain still Fed now. is increases. financing feds properties an the dealing loans ends But Turning from The CMBS volatility and in the the to likely the and problem tightening rate by its constrained, lending with highest take markets cycle. markets for sharp financing driven for the and time markets capital remain quality highly Thanks to sponsors and thaw, some the the available won't largely close. will which until increase

York sale volatile New On without asset. be balance remains active front maintaining the market office to place to that stable right sheet focused in assets and these remain interested financing in it retail asset without difficult In transact times, investors we continues on a debt strength. large now. But

our U.S. is revolving current undrawn billion X.X investments facilities. credit restricted in under billion billion billion, liquidity and a including X.X T-Bill cash of strong Our $X.X and cash, $X.X

mid year, XXXX. as through addition, significant early activities refinancing last no our a of we In maturities result have

for that, turn over With operator the I'll it Q&A.

you. Thank

We Steve begin Sakwa comes [Operator will with go session. question now answer first ahead. ISI. the from Please Evercore question Our Instructions] and

I of morning. PENN X understand Good you return guess Steve, PENN and can about that a little yield, about. Thanks. you've But with I active X. to a maybe guess to maybe got and more going developments since up mark and I start the visibility good bit talked a I I little the kind wanted was guess leasing I there. the market curious

there. the maybe that any take that's didn't part up leasing. You I pipeline don't talked of the But done about. incremental But yield Michael think you've

you maybe those address could sort So two? of just

with and X upon based we that We yield PENN these marginally and We took what half assets. We did down took years two the the on a even reaction Farley. We know is. a year, X. the PENN of experience yield very of market's year have now

it X. X. what PENN PENN square the bid We in initial bid We and underwriting is ask we exceeds we leases the why PENN that's feet what is for XXX,XXX made, have signed ask know We our know for adjusted returns. the X of and

get to about and the sales. interest headwinds the in growth follow kind $X.X when maybe of up, I Okay, then 'XX I as Michael. just of you the a expense some of talked in

I from might a a thought half understood like hoping better. quite year, of Sounds property just bit been I of the lease could that that have you I ground clarify the understand wanted was in first sure just because bit that taxes. maybe I the $X.XX tailwind didn't to but the maybe a properly. little make point that

prior the a We accrual 'XX. first benefited obviously end at in of period had We the it 'XX. it didn't have of us half and

gets a of ding. year that the beginning that's reversed at so And this and

So it's benefit it year a net-net of beginning XXXX. hurt beginning half get a timing was the affects the year this us difference last we of reduction. there But of

go Capital The next BMO question ahead. with John Markets. Please Kim is from

there's well wondering the details, you Hi, particularly Madison, wanted write are thank that's loan now? about at And upcoming. the I was impair occupied, you. pretty an XXX plans I decided what to asset? where to your for why down it asset was no it ask

John. joint result the morning different and you from for accounting resulted owned quarter. in The look asset this since as assets is if that impairment happened, of And venture assets. process Good we bought at wholly what's a

asset what mind non obviously accounting it recover. own in conclusion. bought So were asset, value and so the we we and a had large we the the item, underwrote. not to tenant move run We you at what they could unexpectedly year the model, in and cash retail rents out are last that's Again the keep still the through hospital time

and asset the we'll we We as that's byproduct. on but today, to work with sit rate, at favorable a, that based on debt methodology create asset term value, the continue very hopefully and on have here the accounting

use overseen accountants. impairment large independent to and The large decided you formulaic, is John, our the in take rigorous to we degree is impairment. and to is why process words, question, degree your by a a

exercise. as subjective have we out may the of tried right So formulaic that showed appropriate judgment and it as And make academic much there. kind possible more an an to it keep of of was that they

the quarter, such Okay, this know, and my showroom drop of signage businesses, occupancy falling which, on driver with have in I really quarter. second show. question is it's going And also on so been past wanted the this going a mark, comment trade if few What's variable and with the on a quarter? in not occupancy on and you the earnings driven of big by this to quarters growth, been what's really disclosed with much tradeshow. could

Hi, it's Glenn Weiss.

the increase the So business, for on more the in vacancy was leaving to casual due Atlanta. Chicago

that the etc. terms converting there showroom office into the And words, pipeline, are the known in space. We leasing like are York headwinds In of Chicago mart. volume, other in visits in New increase that's at vacancy

in programs X.X June. coming that Our be expect great complete we along to

good of Our been very tour volume late. has

increase which We have in negotiation business, a Atlanta in couple in of right the the casual now. the vacancy leases moved of But town to is out fall. the

the are think is to all businesses, except that very back line, for shows the had variable levels. businesses, the the if variable a on XXXX. We strong I trade John, punch will, pre-COVID Yes you

had year ever little bit signage a most offline, fourth was that think I quarter. our and successful with

a got X So the are bit more couple at little a located hotel PENN and impacted that signs PENN by development. we've that

up generally But And I BMS a year-over-year, garages, was off so had a except for really strong and or said, quarter as little fourth XXXX. quarter-over-quarter, quarter every say. year, signage signage, fourth bit should I

of their back and in fourth got moved normal a year prior back it the to pace. when up then were fourth quarter, shows shows quarter, bit year And this on timing of trade little we difference the some cranking the

obviously both the book dominant performing they'll of businesses and the get XXXX the but particular, sides there rest to trade back the which we'll shows the And years, of in I now, peak and are completed, the a allow a that's their given right couple doing our of well fact Times we're in revenue control well. we what time, but perform in we signage to the of actually where once two redoing the are yet. the quite construction We hopefully So signs the next sign think we're and at we're drive nutshell, That's Square, not to bow we think signs in got on then will PENN bow additional perform tie a businesses. continue where think is positive mega tie. us over part

So net up or variable going down year? is this

to a because XXXX, signs predict, mean, I we've on of roadblocks. is, we're I an answer A In third say is what it's going hard took party to couple comes line off lot this in based PENN. in have would like

that a that comfortable of signage offline down net-net we're, what's And we on just the bit think side. it's probably rebuilding because It be said, I as XXXX. So XXXX. could little the fact

we're offline. some So revenue taking

I bit, we're overall, little a the given So stuff down some probably taking fact just think offline.

Camille go Please The America. next question from Bonnel of is with ahead. Bank

I know context strategy a generally, are you capital about speak Citadel existing the you still bit projects? the the your these with down for PENN to the road. in around are to districts? how with able pipeline development there and future thinking opportunity allocation like financing Just But sourcing is

it do the I be difficult would and good construction, to financing very, Camille today. don't Because line very we have expensive. is up to think very news it

in two, to XXX not with three it's right not yet. today. be that respect So is years. project It'll right right But

genuinely markets And in I PENN. have I respect they is financing more the conducive so are expensive, to is construction not, not And today, comment hospitable Steve new Again for which expect with film the think, than pulled is hopefully, we're will banks be. to if back. market really not, think call, goes as we the available, same last very

in And fund XX% down. settle will to not we it's think at should future the and markets it's have a that up, XX%, partners today with balance with from the the day, on line I our equity to our equity. will to and contribution. loan come but land the challenging put traditional respect XXX of we'll the So construction again, Most

is more were Maybe excited XXX excited we more Ken Park even about it. pretty importantly, Avenue. So, even about

Our strategy, our there constitute very equity is value, actually contribution. value land land our simple. The will

represent equity. So value will our land the

a maybe will $XX borrow have share not with $XX equity. permanent cash tiny of along financing very put to our deal represent or million normalized be sized lease. to easily of should the million, in $XX of anchor will The million, construction financing. comes balance in it a market The We very under substantially a another

everything so place. is in And

be will anchor land Our our and tenant. have an equity we

approval be are in And the almost short on so of so are that construction. that period development very, PENN X, immediately more right from that two Farley And years one. any actually, is and zero I of very, will conceived. our immediately have hard than in down through X, do market are the very in going halfway financing probably Park. teams now, it's starting think What's a be But it. we'll way, the great swing By we at work that cash well arrangement to our we design PENN of kind into the not XXX to requirements our we're ready the Part will teams a relatively PENN time building and construction starting process would basically we completed maybe part. normal more, a are of is

Park. appreciate XXX really Yes, details. the all

your your for follow but great maturities, on net debt job you've XX terming leverage times. a about done out Just up, in basis is my a

targets? are talk And near medium thinking to where term to leverage your can you're you about today? So how

we lower I little by leverage bit think a Our is is characterized than characterized.

less over time goal Our leverage. to have is

of a sales. accomplished we maturities unfortunately, leverage. out. growing asset our are have time which of think But in have earnings, And less some through preference have pushed think, this process being and year we don't small to be couple is any over I we that'll unlikely

not. foresee happen. given over environment? So is that the time But we in XX that months next going to change Probably just the

ahead. next The Please is go you. with Thank Michael Griffin question Citi. from

I want want said. go to second. back Michael I Hang on. a for what to emphasize

behind you referenced, of the have our ratio Camille, of leverage that sort back. our terms hands we tied In

when decrease is variable which earnings $XXX Number businesses So X be recently income we have number optimal zero coming earnings, PENN. million which over what had in, in underwritten to one, from of you. recover from have And is PENN and gets have it we've income a X going two online. less we will than

you get sorry, of pro when parts we these ratio ahead. So forward, all if I'm our our leverage different down come business will significantly. forma stabilized, very go

go Mr. please Griffin ahead.

from Michael Yes. Citi. Hey, thanks, Griffin

Just maybe back to your prepared Michael, mentioned you getting remarks. leasing.

slowed transactions leasing are Your lumpier. is

You square the about million X.X pipeline. in to feet pointed

maybe I here Broadway over bigger this executing looking in some the notable think year cadence update is the on of those you quarter. at one more And upcoming maturities confident larger Just mean, any on end coming there how with upcoming this I of maybe up that? there's are of expirations? some XXX

great. So any update there be would

it's Michael, Weiss. Glen Hi,

really now So One you our of is know, Park, which had we 'XX. for XXX Citadel. that bulky explorations constitute explorations by taken was in care

rents The at year, from off block the of quarter, low of this explorations other Verizon coming XXX. And we then two and and blocks, words comes one at XXXX. three three get equity end back the from the back then X X the continuous PENN which is

end the probably presenting floors midtown very product, tours that excellent the assets. of South, building, 'XX. showing the product in action be market, the the going assets all imagine, block in those to for can most the in bounce space showcasing building, great programming year, As with the XXXX. both we're is three ready XXX over We're are weekly. in market marketing you undertake unique By the we'll attacking now high it. we're quality think already some We

this terms experts. what's of year of outline coming So that's the real in

XXX to pitch high this the asset really that and fit maybe building have strategy. you quality around guess, point Broadway, around the hubs that into doesn't I like transportation

PENN relative how measure demand within the district. to So have opportunities you guess I that, do versus might you

in easily. village. to in sweet the NYU, spot right spot PENN a very right is XXXs great you in the It's midtown That'll It's south. subways. the take Central at of at Grand right

think it's we geographically, So excellent.

then And the about their one the you to XX% can do remarks to thanks. Okay, employees they about focused never in occupants I employees that think with getting and to Do importance In how Tuesdays XX% really you're that kind that prepared get Steve, getting more your your on having curious, for business I'm maybe leaders, office. back just much you've conversations of that talked on and maybe and you call of to back push range? you think it XX% pre-COVID back see Thursdays. potentially the

I people think XX%. there's the normal traveling like have what not is more Because and always office in that were you.

is get So try to to to XX% fictitious.

I So we're Tuesdays, close Thursdays. now and I getting think XX% mean, to on Wednesdays

Friday I going that be, forever, going Friday Monday is is forever. Friday think dead is be a touch to holiday go. assume you to and can is

the coming slowly but think back to is world So normal I that surely.

things multiple are happening. So

they get boss alone, wants with every back that find what now to two they people the being you is city. want and want back. one, many find being his to their Number come they people have of want excitement collaboration back Number colleagues, come the and of back that in into the they to activity,

time, will normal. over slowly that So I that to revert think

come most power And either important comment the to But want back Your actually employees of bosses I come the power. some that and bosses have to back. wanting question powers some Well, have are bosses do trend the is what of way. people have? the was, no total can't on themselves,

is next from Please Piper Alexander with Goldfarb go question ahead. The Sandler.

first, on Awesome, XXX. deal. Park. Morning, morning. awesome [Indiscernible] And good Steve. Hey,

Michael you to and everyone. done and well So

So I that's two awesome. have questions.

JV to versus that like the think guys retail First, recovering. future exercise, What Where just and is on this. picture about hopefully do big some to will is that? it mark trying more are that you get market then this prompted the market? the peg market, settled be seems And you the took. has that there is we the as think annual color the on in impairment an Like rents place and And you would impairments?

that map impairment, rigorous do math that a process. can't shows we want future Well the to. I The It’s an there shows. predict was I what knowing and the

very rents Avenue that. -- that it's Fifth are very are So there there on is and market Times something the There What at market. is thin a not transactions a are Square. few

So sure. entirely. the that you a assumption can for is lust that five market. come There space same make is impaired still back But there not was hasn't recovered that this It sluggish we'll years the for to ago.

then the in the a for casino. Manhattan question mall second you been studios. that press you movie be while the still recently, and for talked to hunt you're great potential is, The appeared guys It's studios. about spot Okay, a seems in since

are So provide those can less have operating items more are what for of things us. operating will? you an you an of just for an Casino? update sort partner Do Or Do partner of studios? burner that have back you you of two both and front house, if

back terms and no, partners, in burner. they're yes, and really of not yes is answer operating The

elaborate more or? Anything to

a I wonderful is be to really. property converted going studios. to have mean, we Manhattan that Not

operating actually studying and casinos, users still heard and say. you that is conversation to have extraordinary. a modeling a With actually, thinking with We multiple don't the about that. have have lot great what quad very We're the and are demand to in we respect I

and be site, to decided. throw great a whether have the game we We is into it

Please next The is with ahead. from question Vikram Malhotra go Mizuho.

Good morning. question. Thanks for taking the

So just of of first one, to view. or the going board's dividend your sort the view back

what portfolio, that just it terms street it If for in portfolio all outlined, and asked correct where the explorations I am to you key they're give you four into I baked to that the some in stands of you the relative business as us terms are just the like dividend I retail? color move want of because understand, core the baking more is. can just out? sounded like core is occupancy what

picture would guideposts big or some metrics helpful. be Just

based income. the minimum Well a dividend of upon taxable is

size it was reduce million was everybody dividend. a right Our income. over miss to mistake. we appropriate the was X.X% like felt price, dividends odd felt, board price that us to our I income that And dividend I on inappropriate word to our extra we overpay substantially kind use our which stock taxable like, of the mean, cash. XXX allows and retain the is or to taxable dollars knows also And the it felt of

happened the what that's So dividends. with

can Okay, just follow my up, and retail. then street dig I parts into to if if it. Two

to there of 'XX. Any updates First, but Square not rights couple and on in would two have I'm that wondering And in don't that I I those thank just, think be color, 'XX. to it there. you key I you is great, And and of explorations XX well, if renewal They of on I'm early Levi's big expire a have latest then leaves, give think second termination believe you. the terminate. can Swatch wrong part the Times 'XX, as have option in two they were

expect, you are, active well with in all other as as We are those tenants the those tenants. as negotiations would clients, we

are hopeful place in rents lower but retain to the links. we tenants, all when years rents. was ago We the The market be made than is the than it of will those lower

So you at can rents. retain assume lower that tenants, the we but will

you give anytime they like have had but a just Swatch if you I like it if were to they the rolling, thought to Okay, they in thought can because going notice elect just terminate, would give Levi that year notice. to of and sort

of them stay put finer to we have, fall as a So a to in to, we did. they exercise 'XX had lower on finalized their a to grant at point alluded notice Swatch and fill rent. just Steve for And

determination, didn't we been they're recently at to that know what do, agreement time has they they exercised finalized. going the but So

in Levi's I year. lower stay. And rent, So this they with 'XX believe a Steve option. as they and will well comes to respect that up termination have not said

just them did But that lower a our keep that we'll a Swatch exercise that will the rent. alluded may likelihood so And again, albeit do. what is see at and hope Steve expectations they they

that some The leases, keep expire tenants call other those leases we've I term those of in have been place. those in are, shorter XXXX will continued which to

and happens do XXXX I right that's think Square now. one we'll expiration that. discussion that that, And beyond in substantive an only I there's Times probably active the middle And think continue to and year.

next Street. Dylan from The with is question go ahead. Burzinski Please Green

of strategy curious the the just company. question. taking on guys, overall Hey, thanks I'm the for

mentioned stock. the think he I doing past in about possibly a has tracking

happen the if just so, that And we So on that's XXXX? see can in curious table.

much on it's table. Yes, still very the

ready are set be decision not a about make announcing. until talk actually which we and the timing We not to will

be mentioned and us I'd I just curious, the process reset moves yields can on going you increase the at ground how that XX Okay, then million that climate just update today. that works? we the kind of give reset, when saw less think think back our might We're district thought the the developments we was of higher. that to might PENN I an thought initial

works. kind to of an just process arbitration update see So and on how sort curious that the of

interpretation Well, would is vacant be. they unique The neutral. the This of ground If XX brokers different. agree, the by each and active of lease a third can with a then involves a as brokers negotiating. experience, bit bit appointed what a a and brokers land unimproved it's is one basically that years party little little the is of determination value

what willing mean, for a seller, a of etc. and to could buyer might willing is now, you than which that be, appraisal an land somewhat I is sell that So interpret what process which different piece

we think it's So brokerage a process.

year So We the that's when that set. even is $XX quite way a the it we ago a half a Actually, the lower. was land than of billion. think bit set lower today the maybe it's and value

land. and done the be would these of that most to that's and the are is value And fact the determining the by what The analysis what factor. return a new residual for so building,

I can or we value or what PENN $XX X on that if on might bearing get in $X the a no lease $XX we more foot of land the has So $XXX be. think a

with Anthony go question Please Paolone next ahead. from JPMorgan. is The

of you Michael, parts went bottom whole and the and just this you, in business year? the retail, through a you, of in lower line, Thank impact help the vs terms number, office that's whether you can higher FFO 'XX. core the But NOI Great. on maybe 'XX or

to hard that's Tony, comparable you're guidance have it's here we We're we give as general, to some environment. you ins roll move and out the today, exactly here. which sit think out, we some like in not trying Overall to performance what to a on we say, tenants would renew, we about. Overall predict. guidance, It I neutral. just outs. we pauses, box some me but depends predict will year have and trying the it's this It's a be in will probably just along. known may have We as which can't in we talked come fluid

Okay. most for getting well Thanks I what where pretty likely. probably to of and north the in I that level most and be that. their value And then there to numbers the for you a you're mean, people it second stock think had on question is seems Park, credit XXX crystallized

the year what about seven wondering think it did the you staying plus just how thought completely capital so, worth next that think So with saying just being ability I how or just use versus years could I exit otherwise? be to guess, like, that another, you you about well versus and deal

of fair the of value, parties. I both that quibble pricing Well, with, to north deal, all, first was would of is we well think

that to of terms at million Time to In or decision invest a when what to what we the Tower of two year run decision square option term, square now, X.X have that's in interesting a be make will is an brand and long XX% project it our new and we'll the have is whether from do make time. as building super the duper money fact strategy we foot the the either. But take to a own financial

is with from next ahead. the go Please Yulico question me, Excuse Scotiabank. Nicholas

like impacting? looks cash does it a And sort some as then sweep. get the lender for impact you to get there's right it's ultimately loan the on touch And earnings guess, Thanks. and resolved? the of default why Can the explain you to us I retail, resolved not had since just refinance how that from this could just from property, now Regis and can what this you just St. want how working, can't I if flow be JV. away reason the this? where tell you some joint earnings walks venture

maturity market. two loan The today. at this year the assets end the like We've and many refinancing Quite market. the in signed leases like, peak not asset frankly, of is

rent. we lower terminated those and of a discussed, we relented One just

go about to can't capital, we the ask investing thoughtful can't, to we lenders If restructure asset mature. We the And it's lenders continue we back we're talk we the Loan before the staying to going etc. to happened, refinancable. that whether were disciplined we to the in asset, to default. extend be so them with loan to went and worth we're was and them everything And just not do, like today. active talking discussions and

And the non deal we're for towards of that recourse groping think sort that's the we a makes partnership. But of sense debt. benefit

If that'll reach can and walk I you happen an the away, think probably to have agreement, not. we option

restructure that deal get get paid, never is interest the not a to the back, think about end but and with because Answers of there do reports we play. to supposed in is toss be, couple that's if case. going to best interest the too paid. get know, to the deal know I will it's they're it's going To-date X.X% we'll rates answers commentary that to you reset going rate. was interest fault I a what rate the key to of up lenders and But the state going the some to that's we're at get or and

it I floating if income the FFO the that's is fourth is don't went that's through, significant. really, there's So the loan cash relative today play. there state it's the but away think think, that it's a on, impact flow, in given know not where rate flowing I earnings it based some don't of fact quarter, was I much that frankly, where

refinanced then Okay, XXXX. know understand, like to I XXX looks you about thanks. going bit. Thanks, talked this Michael. back it that. I mean, little got And in Appreciate Madison. a that asset

was on now. the on There's debt asset of million XXX appraisal a I $X.X right there billion it. think

you're if XXX I so building's worth And guess the zero, million. basically, equity saying the

would XX% that it since about be asset value So XXXX when refinanced. a decline was

me portfolio about please of of I decline I'm is as you lot if But I'm structural a down, from but retail the of well. the talk of pieces right rates know, now those frame vacancy are asset that wrong, and correct being that higher for would indicative that guess if value standpoint, out how wondering XXXX. only So you numbers, I an do versus where kind more or level some have office now. you Is occupancy

till Like or and X.X%. execution pretty We was XXXX think referenced did all, three our team, and out that you outstanding about things. refinance of frankly, by Yes. pushing two in I first It XXXX. loan

continue we the think have non important we and have to continue is we time I most see So that impairment recognize this talked to charge, today, we cash we the to is work about thing asset, time. the

can't done that the Secondly, traded asset I sort can't was comments speech the of a the time. appraisal lender comment. when that before appraisal think made. XXXX the where is was at loan would have a was exact back circumstances I to

office So was out. the had reality tenant I There's most think varying and probably since then, generally to we then And a since degrees. it that an notably major rents, time. changed specific appraisal have at is done facts move retail some the declined have

analysis, that value says what that driven reflected nothing is I XXXX, for here the a over accounting in methodology. talked Steve there. sit that very time, about But up. today. as all the impairment that's of ventures net So at produced particularly the And that's that's And accounting back much go we think the joint result. can't And end

question next is Please from go Stanley. Morgan The Ronald ahead. with Kamdem

guys, Ronald Hey, is for good this on morning, Steve Kamdem.

think is guys do laid some 'XX, next there versus pretty upside 'XX in prepared think as of the Just you foot 'XX? Thank that what the year yearend we you remarks, And a maybe of X about the clearly in $XX FFO PENN some today. the you. out just is that headwinds and

Weiss. Hi, Glen

the low XXs. up So in coming we're XXs, rents high

building. have leases now piercing out of this Tower We right that in the are XXX

sign where vacancy leases feel you that for up going believe forward. for the and will go So increased we as of a we gives rents exploration

from go is Please follow up Sakwa The ISI. Steve with ahead. Evercore a next question

Yes, thanks.

you're how Or that swaps kind put that are in? caps should up, be to Just going Should tightening Are off swaps the burning to on the and in those you thinking 'XX. of we of and of maybe the in Fed as and some one let maturity new the of going follow we here just nears kind end or about cycle? float? Michael, 'XX coming to assume caps that

those type mean, is loan wrestled Yes Steve, we 'XX issue determine talking have 'XX some which we're 'XX of a than loan with more about we 'XX are issue. of to what again, to refinance because somebody with everyday that have a going a of I maturity,

roll a fixed So swap obviously on to there. into in the we 'XX, no rate if mature need loan,

So we'll see.

that I'm the of looking we'll now. the somewhere list expectation for roll most think down right our loans And expire is I those. in caps

year. to expire basis, to part of would So few years. next the months. three And expect tend those to of an look then opportunities we'll you we that latter the be middle, too. swaps continue some although the can couple turn a we of roll out that would I on Those two got or for those out annual the go

is they're close to getting being point to the are coming the curve You Fed is done the like looking down. and where

of with we next year make what to out, maturities we're benefited think but decision. as type little I of some going do again, that couple waiting expire have terming of those a and bit decision look this that to a we financing at a recently so the we've are before on locking on year. got And asset we finalize and And some well in we we'll but of those

up next go Mizuho. with question Please from is the And ahead. Vikram a Malhotra follow

$X.XX follow the and incorporate reference? you the the Michael, outs rent up, office for these that just thanks the street retail headwinds. lower that outline of on known And in terms move the you Does

some but terms gave of large, neutral, on base depends I asset sales. rest by performs. we've been interest we probably what The Vikram And the you we'll see and is, It pros/cons happens points the business only on were predict. in there's data and can't leasing. how

those pieces. Okay, up I moving just the and follow then there other are know, just

basically, based size, to have way, view you as for have some you revisit kind current these or slack don't dividend, the incorporated your dividend, So some pieces take on that of go you moving the right the taxable your might we income if that 'XX of you the of of outlined? do but just

it board and the not The a might certainly decision. to going point happen to not dividend dividend speculate on from view. we're a certainly And what of in negative is

question answer we won't a now. can't that's and answer that we So

would Steven the are this any back There conference no closing I to turn to Roth questions further over like time. at for remarks.

a you, in We're cycle. This of time. exciting is Thank everybody. the tightening middle a an Reserve Federal

I makes his of a in recession. which estate it his that I Owen way. are think in we a couple real Thomas, opening wouldn't remarks call I soft, But of said with to, ago don't days want is think that commercial a markets fairly quibble time. either exciting

through We this will easily. get

And side. Happy come lot think we will what up. quarter. on opportunities see better be and the the Valentine's world We other will see a next Day we'll you

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

disconnect. now may You