Boston Properties CEO Owen Thomas on Q3 2020 Results - Earnings Call Transcript

10/28/20

Thank you, Sara, and good morning, everyone. I’m joining you today from BXP’s New York office, where I’ve been working since New York opened in June and have more recently been commuting on public transit. New York City is slowly coming back to life with more open shops and restaurants, and our building census is over 15% and rising each week. All of our markets and BXP offices with the exception of those in New Jersey and Los Angeles are opened at bearing capacity limits set by local guidelines.

Despite a challenging recessionary environment, BXP continued to perform well in the third quarter, demonstrating the durability of our business. In the quarter, we collected 99% of our office rents and 97% of rents overall. We completed 811,000 square feet of leasing, 40%being either new requirements or expanding existing customers, and we increased our average net rental rates on our second generation leases by 20%. We entered into an option agreement to joint venture CityPoint South, a large scale multi-phase development site in Waltham, Massachusetts, that can accommodate both office and life science demand. And we completed the previously described acquisition of a 50% interest in the Beach Cities Media Center site in El Segundo. And since quarter end, we signed a 200,000 square foot 20-year lease with Volkswagen Group of America for their U.S. headquarters at our Reston Next development in Reston, Virginia. With the VW lease and previously secured anchor tenant, Fannie Mae, this 1.1 million square footprint property is now 85% pre-leased.

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