SL Green Realty (SLG) 26 Jan 232022 Q4 Earnings call transcript

Company Profile

Participants

Marc Holliday	Chairman & CEO
Andrew Mathias	President & Director
Matthew DiLiberto	CFO
Steven Durels	EVP & Director, Leasing & Real Property
Alexander Goldfarb	Piper Sandler & Co.
John Kim	BMO Capital Markets
Michael Lewis	Truist Securities
Stephen Sakwa	Evercore ISI
Anthony Paolone	JPMorgan Chase & Co.
Blaine Heck	Wells Fargo Securities
Ronald Kamdem	Morgan Stanley
Derek Johnston	Deutsche Bank
Peter Abramowitz	Jefferies

Call transcript

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Operator

Thank you, everybody, for joining us, and welcome to SL Green Realties Corporation Fourth Quarter 2022 Earnings Results Conference Call. This conference call is being recorded. At this time, the company would like to remind listeners that during the call, management may take forward-looking statements.

You should not rely on forward-looking statements as predictions of future events as actual results and events may differ from any forward-looking statements that management may make today.

All forward-looking statements made by management on this call are based on their assumptions and beliefs as of today.

of risks, to other in reports appear factors MD&A the cause that the filed regarding Form Commission. and differences latest with such are sections and by information the uncertainties other the factors and could risk XX-K company Additional and company's Securities subsequent Exchange the set forth under discuss as defined measures during conference the Act. Also Securities financial today's call, non-GAAP the Regulation company G may by

measure in comparable measure The by XXXX on Form the our company's selecting found www.slgreen.com discussed GAAP GAAP company's release press financial most each between X-K and financial the fourth directly of relating non-GAAP at to financial to earnings financial regarding quarter and our differences the quarter in our XXXX company's be earnings. on the included current website both and reconciliation non-GAAP measure fourth comparable measure report the each information supplemental can the

Holliday, SL Marc I turning Chairman Please of in Before to of you. go Executive the to that please your turn X Q&A Thank Realty call the you the questions I Green Marc. Officer person. per those participating limit portion now the to ask Chief and to Corp., call will call over over Marc ahead, of Holliday.

Marc Holliday

conference, are Thank agenda of or characteristically some business of the the X.X included presentation. One set robust which XX December positive I and coming feet goals, after investor which X leasing, lot for held for included out brief, we and surprisingly a that million XX, think with there were during a XXXX, ourselves calls Normally, we only aspirational of X. day square attendance everyone. at plan, expect of annual We that had Vanderbilt, important over conference, good capacity sales debt development reduction January $X completion We significant afternoon, at great we and a our on this to conference and year. appreciate under on feedback we asset Not received after back ventures, Okay. or earnings deliver and you, which several today. you budget joining billion on of timely us projects weeks best joint our

we One in of ahead is just our Madison X after them out Avenue, investor which among actually week topped Notable schedule conference.

So in the was laying turning XXX the of There amazing a gathered point witness sight. truly pretty of this now Midtown it project the piece we marking submarket, steel day. last people South completion a where of project for were see in on the great to event over the

perfect floor And topping of our to us why the XX-foot was One the ability the that square unobstructed and and standing that joined out understand you views roster Avenue. of and Downtown stand of can Madison Midtown truly with truly sites there, timing foot tenant has XX,XXX that penthouse the as just to lab new it on gave Tennis

economics but attracted just a January, Rent of us, hope turned we the the lease only the positive importance slow good and effect hitting others, underscores project, achievements over stressing a big to on also roll to the pretty night, year. They lease, start has the able we ahead exceeding come. more month a last had we but for and early along the of to to good month there's announced were underwritten This we XXX year in leasing is X with partners. is up out which our opportunity were and it not underwriting, timing the to be typically

the proposal. in MLK seen holiday we a around XX it long new the days, a of followed increased over Hopefully, activity a pickup activity We've and come noticeable to fresh holiday break in last pretends received XXXX tour though weekend. by

most importantly. plan So we're we're optimistic. We're getting and on stuff done,

of of signing So which of at feet days. to to XXX,XXX leases today, XXX,XXX over we beginning a XXX,XXX hope our we it the since square pipeline sign XX the feet, stands feet heels managed totaling on of next assemble over December, conference of the leases office investor square square where

and be Lex, We'll and back Avenue We're XXX get Americas Avenue, XXX the lease of leases moving at another at up. negotiating Third, hustling One to try Park XX currently XXXX and Madison.

plan beginning bit XXX for just redevelopment spent of execute are that a time to amazing we project have addition, our XXX showing are beginning for Park, quite this Avenue. and We redevelopment In to that Park we off we market year.

I interest is community going for market, and, think, And tenant take already much broker beginning investors investment. very we're we're seems that is to also to a JV interest that read plan the this tenant we there elegant among well be from very the we're exciting that have as and early the asset meetings, the foreign be these generating to for and generating by received

XXX we and it several is goals of color Park markets Recall more the I'm for turn that. a more bit to or for partners to going Andrew the Mathias. have that one capital little identifying on one over year for JV

Andrew Mathias

buyers investors months market were Thanks, we market in and and We've think several actively standoff There's thaw all a we'll here as fixed the been financing a East we the and which are the see around bit. ago. in our and Mark. rate with hopefully financing, still discussions in awaiting, market, reopens, world. Middle XX-year rest but definitely see from X- of participants the CMBS a anxiously sellers that the returns standoff between we We

We have Asia a in plan trip to March.

month conversations secret there's in out around think York a prime New at for talking New all from this The interest Miami we'll in set we a of in willing the that types XXX other investor Avenue, year world, have which City. financing this from is the team capital investors lot aggressive lot still about us goals that particularly York And different Park City and assets And trends. talking of no best the the of the think we about we was conference. submarket the present at conference it's Crafts earlier

Marc Holliday

Great.

our you year, updated as So guys the we first come for to sales. keep of more refinancings, that pursue various venture on recapitalizations, half goals joint throughout we'll the

guns full of hard and year. that of some now goals continue diligently set here middle to and seeds and are working by to the knock blazing at can so hopefully in for the seeping market we've very off We We years path the see a pivot over markets the and be we and throughout right us think the Green of to achieve start to the year. coming these of what out a past into positive will the couple experienced news hope year more some XXXX, on

read, and Central It to York for long-awaited to underneath $XX marks is up Terminal milestone end City I I'd with and questions. Station, best Grand the leave, of opening have Long moment. want East before did Central Grand say, may as for I moment opening Midtown, Madison Vanderbilt, incredible the Island right heard or Yesterday, access the you an New the the it culmination the the a trust of representing watershed One official project. Eastside billion call

think many, has probably the MT largest decades. project I important and the many completed in it's most

Pennsation become opening, grand a Island for in Long have you development look its finally Grand with which that XX or from It's XX up conception Central. to its now a X.X from million destination. destination it either And person in I has to Island, direct workforce opens a direct for can years its Grand choose seamless it trip think, and reality service primary after Central being, as most of Long now efficient and

day, to is essentially all arriving front Long these half is commuters of people this and estimating door nearly literally and Station, and XX% Central Grand expected altePenn of service the are portfolio translates running instead of -- into Island is right commute at full of direct that is year MTA what are XXX,XXX where currently eventually once The majority that will located. commuters our and Railroad up will a our

I to enough business requirement commutation pleasant nearly time safe week the now tool importance stress as the minutes hours and commute per employees work a for from short, coming of as X.X day post-pandemic that puts can't and encouraging of of community office. top saved its per a or out projected XX the world easy,

Jane see you hasn't executed, celebrated areas, would by they pretty on I inspiring well well that amenities other square what well must urge taken what new retail XXnd check different and incredible waiting time out Street feet yet conceived, terminal and designed, that to it be XXX,XXX stores do it's spans of Chair, to beautiful anybody done, swing approximately restaurants say, and to with Street so will because XXth and spent, opening I'd that yesterday, over the the the can from, and of X to and opening be for after the that of be dedicated perhaps Governor all permanent this So the levels come to look the well MTA host that we lever, X decades all the a and and is will goods time it come. all at after the money centuries done it's

what One Railroad Island capacity. X from for Grand really East service and which in #X Long the is district. will further in step Central nearly redeveloped Grand and rezoning its now will a increase X first New platforms, City's And new Central. Madison pent-up and Midtown revitalize contains demand terminal And Long tracks and enable towards of be business unlocking and Vanderbilt to The and by Island XX% to service space around was office Manhattan undisputably York transform

or or it excited company. as shareholders we're the stakeholders of And followers by

in to a You year. should be excited by it, the it's start opinion. great And my way too,

So with up questions. that, open we'll it for

Operator

Instructions]. [Operator

or Piper of is question your line open. Our comment the Mr. from from Alexander line now Goldfarb, first comes Goldfarb Sandler.

Alexander Goldfarb

great open. to finally it's obviously, And ESATAccess see

in that's obviously put this picture, Grand feet everything have New west positive lot year. bigger it's X.X but for leasing. think all your tech tough not you for guys year. granted, layoffs to Investor million out Day, reading clearly, Central market the out The a see. is square a just But pressure and has headlines. target I So the But that's it's we're still York, it had accelerated, especially all Street since a was awesome

of state you fell the the are slipping? the December? it signs market, that tenants you feel even Is do in guys Are taking same So longer? back that leasing there

and what about that is in headlines. means the broker comments leasing post sort activity people reports MLK resuming Day, your Mark, the from reading the Or of divorced we're activity

Marc Holliday

Well, me tech yes, -- to lot let on to reference go start back that question. the in first so with a layoffs. the But

not of and the stage I'm or for sizable New it notion in terms many what of impact City. growth These characterize think have significant firms had it been ultimate in you on effect years. may termed will have layoffs. sure are I York that the would insatiable I way an that

from being the of the Tech relatively past the biggest was almost or probably XX% think, small years York went component a I New over being, about City grower and markets X X the of market. in

Alex. So it's click in a the

Alexander Goldfarb

Sorry, I'll stop...

Marc Holliday

the in was would our you I'm of act want one to guys

Alexander Goldfarb

you us type office, speaker. back this you get and in wanted No, is the on what the

Marc Holliday

There's of XX% to efficient And as peak XX% were required as total Warn companies employers And been massive WARN. they much do are they're more little York may correct be Steve, of give growth. incremental and market. of becoming as the the pausing bit New XX% large they the City or Certainly, cycle. now me, XX% to notices the demand. a at

or there amount from layoffs they fairly of of And a represent Scopia I modest announced, announced the some advertised these say, overall firms, even though these are companies. should

these among of X%. to that New companies And I've I on of companies. many think markets are about is targeting that the heard, group always for probably York close retention average,

sector I been warn by would not be have have reside far, significant city. it and the so received The of to from that are country which more. feel will parts think other tech notices there the the that

most no When these So we look job any and have numbers numbers the indication yet layoff. through the it's for -- current you of at XXXX, mass December. there's are

number. So was if recall, pretty City get jobs XXX,XXX current. XXX,XXX year. And see were in I There that was That also growth year-over-year. New can I'll York jobs. a XXXX added job big

about is number. That first in one XXX,XXX XXXX, in jobs, last office using with triple in added. the using normal XXXX, in using jobs XX,XXX being and city the office office So was by second year, a added XX,XXX job most the back count XX,XXX. ever But grows XXX,XXX year that XX,XXX, XXXX, jobs

of using decelerating is Now that count of pre-pandemic levels. the office the growth and job about are prepandemic mentioned I've jobs total is office jobs that using XX% about before have XXX% now eclipsed job and the as the only losses of pre-pandemic. the half to in pretty always forecast modest the year, for and first year. And city's the we've spot city's found very forecast for on be is

the in or the want made say half the job first that of year. order in half up second back X,XXX XX,XXX of losses the I of with the in about to somewhere year of XX,XXX

in expecting, what terms more belt he's what So Steve I continue bit tightening, seeing approach about little to certain let real we're sectors of are sectors the a other certain in think our and speak is I'll expand. that

specifically on some utilization. a the think in up major see. in all office, be pullback setting figuring not we to and But our are back want remote activity that how full first Alex? or above from to way businesses is opinion, work to navigating measure our their what of they're to market you I work with in XX%, XX%, any of still be to going utilization and this XX%, XX% Steve, as which would rate economic jobs dealing address based get be, to we mind encouraging

Steven Durels

mean make with to I points. regards of it's couple technology a is all guys. One Yes.

it's where layoffs, that have decades it's important announced the are went boom mature like are to think I where those had these -- recall tech businesses where we bust the not you businesses. technology dot-com that the guys rec that all in past had

that businesses obligations payments. rent have, and are secure their lease they those the So

of bodies pony. the So City the States they and a driving most is not one-trick which significant it still in the is driving, economy Coast, very now. be velocity, adding the diversified but economy, may like United not part right additional is leasing West York which a New It's business overall therefore, they're

that of seeing we're some The a read. generally you secondly -- from standard, saw you the you brokers' velocity leasing reports referenced that what is

sort fourth you notable a the November was quarter of reports, December December. the a If there itself down, really October were parts on repair get to granular increase showed those starting even and amount was quarter. of the leasing overall weakest of in though

that from XXX,XXX still feet several the earlier, even made the leasing weighted the we fire are square of all of closing are on XXX,XXX of that weeks you success announcement first couple of sector. like weeks, And In of also, about couple we working that Mark that end as see square a robust businesses, pipeline technology we first have this very in the obviously over towards feet. early last as saw had we we on And transactions all significant referenced but yesterday, heavily that year, some January. of with day up of

that tech fire, be those between to drivers. market make sort and we of still life. the the So is big the continue legal, to I'll continue part coming And of to last point, which smaller see back

We've good success been Grad building, show where important our market is, to leasing for bar leases part overall has got of at which year. out space a that's and small me the barometer for always the X an the

Marc Holliday

But to you We're move Hopefully, issues right that on. of inquired for thanks We're So get addresses Difficulty]. to to going there. that Alex. we're question. entire some was about. the going. the recap going to have market And going Questions, -- [Technical the

Operator

or BTIG. the of question next from line comes from Catherwood Our Tom comment

Unidentified Analyst

just pickup overall Maybe seemed a the mentioned December. a bit. a of to tenant when be reacceleration know Steve, volume down. can leasing leases, you also for the noted in and in is sticking what by But swayed especially concessions. broker broker handful that I But reports with reports be

as how far concession specifically? those as ground impacting are your trends portfolio the on seeing you are what So trends? And

Steven Durels

I -- what, it's throughout fairly know last I of mean, You it. all don't stable year. it's think been I see really

have being the leasing A doubt are being in done market. where -- on of think activity there's I when it no about it the signed, you the the Class X/X depends leases

and to the expect greatest rents. concession rent of deals would has so also get the rents, spectrum, of Then you therefore, those the when it's highest in concessions statistics high So rents. many the a bigger $XX expect because support you skew it package the triple-digit it amount to you part starts vis-a-vis

in rent. the foot $XX that we average, free X feet square a January, several XXX,XXX and of the months in had TI weeks we took you signed If weighted first of

of granted the some and have all deals line pretty number XX renewals Now with deals. are or with in that reported But are XX-year I that would kind have we of concessions been would that combination some other last those a think that that of deals, year. X-year of are much

don't a So I there's don't movement -- I that that's sense really negative.

Unidentified Analyst

leases just in already those of Appreciate that Mark, expired color. touched mentioned Steve in the of over square XQ, And feet or then majority remember maybe on XXX quarter, had over XQ. I million this who had as -- But sublet last can't for tenants place. you in Park, that but X you

like a of all XXX,XXX going for the the looks now just stayed, tenants magnitude was over expense so, is are roll feet that and it what And quarter. the actual reset So direct rent you? with the square Are if down those hair they forward?

Steven Durels

know, there. parts don't I there's Well, different moving a couple of

is they I most moved where then backfilled a Baseball term had, some referred were the had with think term, the probably them the or large that backfilled whatever long League Avenue. -- they that had of Major of of had ago, were what a X -- with had years we X out relocated lease Sixth several majority Xs some deals. And direct short-term pretty Xs building we they had was but for over we short to

maybe don't... or So to those rent I know, you will regards wait, I can in the the then with -- burn leases reset, and your -- Matt, off next year don't

Unidentified Analyst

on mean really took on the not duration rents. shorter were the Steve that we rents. deals, made that market they're point I the No. rents The

be the we to resetting rents those we'll as So retenant space. market

so to speak. tenants, temporary of So kind

Steven Durels

building. very a an plan what way a said well-established to a I and development there paying Mark of that the significant that for very as presentation credible strong is size. are now of big very We're earlier. out over will already leases in reinforce But converting to we receiving just have think proposals And a of marketing use sort dividends we with already opportunity chance this

Unidentified Analyst

You marketed [indiscernible] . going that and much talk is be how to space what is range rental about

Steven Durels

is between building, have, that in the XX that the -- majority mid feet next to now of we Well, XXX,XXX rolls. $XXX over tenant portions the that call months, square are, the received and the foot. our are it, that the underwritten with conversations in with those space in building proposals of The rents XX entertaining we rents about -- rents. roughly building top months, in line $XXX And expectations are in we're have tenants, to a those the

Operator

next now Our is Markets. from comes comment Kim, the question or Kim Capital open. of Mr. line from John line your BMO

John Kim

On that looks if I requirements? Fox downsized case, all from from truly just they Americas. that's in News space are they quite renewal, at the it's had. had And is that was like CBS the and Or they that about think renewals, XX% different Corp anticipation space their Is CBS downsizing it they taking space the by your elsewhere the the New XXXX York? which space

Steven Durels

was that people that over of where Broadway, entire are an independent at they are building. the group the there units, sort occupy of from No, just separate distinct it groups The majority downsized. operating the of XXXX

they and out like things on them firms long-term big I a of an all are even of have conversations office. So today. to that. to though a their bringing active of more environments don't -- But it's But lot back as no, the these we hybrid they're plan like work I a with component, figure advocate everybody big here downsize trying result sit think as are suggested program to not our that

John Kim

XX positive and the then a owned on positive of It And to your amount your change versus that rents negative. or it's Page implied similar. or it square to XXXX assets of last that asking feet looks was Okay. get pretty wondering in the in wholly there was turned the mark-to-market? notable expiring like has what change mark-to-market on your quarter, same the leases I'm staff, was of mark-to-market

Matthew DiLiberto

Park, it's John, -- about talking Matt. of actually large function we just a That's function at leases tenants actually rent where XXX off. were the rolled the a That's

as those rolled off, current rent in rent of view was the the rent as and tenants compared based And starting mark-to-market short-term year whatever previous new the market in None leases change paying. of rents. function a to and it's small of years short-term a through will rolls rent, the of it MLB direct the market say, in those expire is to is which our those a the based. what exploration on that then simply So old rents. It's subtenant that flow direct result lower down market rents changes a rents tenant change the a

Operator

Michael Our of comes comment line next question from Lewis from Truist. the

Michael Lewis

get But think business with call conversations as getting curious, that get look it this balance talk low I'm to I previous And kind to to back rates can leaders, watermark? that we the stuck it, worry we forward high is back about mid-XXs. your just is you to mean, in you how guess level that impaired in? these firms back utilization I the in I are of possible Mark, are of the their to to that confident year, this of, XX% XX%. people

Marc Holliday

I Well, around a X X days a or there's confidence of lot week. think

not based all becoming more going just on firms. the a or question business of aren't And remote -- that workday And Fridays. decision. I less their Friday to, people take don't philosophy how not like space think bigger a space and more for the but they decision. I really more is, gear impact many, more think, is That's doesn't

like equally I look the Fridays, of the week. rest at mean, to an we day it's productive

of the streets I area about. more more are lobby more week, are a and and small firms more the crowded, for more energy, like think the feel we are crowded, do. But think I week, just emphasis, to retailers, results. there's that's I so are big one not better trains lot me, every crowded, I'm think But reporting balance sure is of

to see the to think market would inflation that's a itself, I last I wage the very, -- think although as will that that to it. the market normalizes, I tight moderate. But like feels where higher reverse for is think several like start where do is still it stubbornly going it very was than still I think inflation So years, job Fed

that be this will think year. I

more we the all to I think whether back incrementally gains get we'll pandemic not. pre get or way

the with that's Don't about think occupied, by I determinant going be evaluate they think space of that's a know, competitive but business, just can plans these I their the how ultimate to also more work model. But don't they to hybrid past we type business factors optimize how couple live, of meetings relative more are what the of and -- find in work zoom doing very days years. little certainly

say by part week X- -- the a speaking case the their just of for It's it to be X-day the every of to to and sort just the majority work part is of anecdotal I'd it's on want it of case. leader they says part board, be in the numbers, will leaders. Friday I And is of office think across companies.

Michael Lewis

debt maturities, ventures then past the Matt, And due the date. noticed joint that their on on I were unconsolidated Great. some

I at of how a the these be resolution of But you think have potential kind you of things job did laying the out? Investor Day outside get any ultimately that do this some might worked sense Green's on a or control. out good

Matthew DiLiberto

Yes.

that we control maturity. unilaterally and get mean the ahead talking maturities, control of about Yes, well the right. ones you're So we I you're our ahead those XXth of we don't XXXX wholly things owned ones Broadway Street. and

some pushed extensions We We on XX, The XX, to are short-term of with out the did longer just to borrowers get and likely process. that's in extension. in a getting form days XX maturity to as path discussions dates something active duration done, pushed.

Andrew Mathias

with to borrowers I think have this going at to are time. lenders work

our lenders' hands. the partners' So it's in somewhat it's and somewhat in hands

Operator

Our Truist. next Lewis now Mr. line of comes from Michael question from the

Michael Lewis

So actually I saw when yesterday train. an on weighted interest I Metro of kind was my North I shocked. to my LIRR was

beat I that. ask guess me you because open was either. would it about I to So it I thought never to going

on or So question, missed this about let wanted update an My congratulations to on first here. I properties ask the that.

to there just Andrew that. Vanderbilt? the timing, stand a waiting in So price? to particularly in opinions markets? there different gave Park the and question terms you market could of But transaction of expected then you and Are given mentioned maybe XXX any off And for color. some financing One of he in add guidance in on Is interest also, have very

Andrew Mathias

No change guidance December. on from in timing

rates curve, I X.X%. you long X.X% have and at at rates think of the short just looking

So of naturally, long want and bond the cautious long they borrow CMBS are being buyers choose of right about deals providers market. to now that coming and the are to debt sort the back slowly very buyers

to time when long So of a of the they liquid pay in sell see the materialize price that a big get gap there's and It's I really realistic get not you'll don't want real for market lack sellers when a think -- buyers you to a reemerge they because people -- aren't more at and financing start assets. entertaining offers until on side, available. debt see less know there's it's they can matter

and to So then to see long the going back, see I where market settles. the just have you're think financing come we'll

Michael Lewis

financial and leverage how that. And a the about then for you're at looking Okay. me, question Great. second

other I'm that lot -- does of at a your if other it become now. buybacks less kind consider does disposition or stock fixed all You a uses of And wondering you uses? investments it And the debt of it want or to proceeds priority how makes extent for to? other relative delever you to change to

Matthew DiLiberto

other with carefully we half fixed allow of timing and year middle that the funding and get of repaid. debt timing the asset XXXX, that something later coincides of fixing expected -- is our answer sales, The to to very the that we that no. was of last For choreographed dispositions sources simply debt that the debt

timing. of capital, of So laid One excess like that billion was sources any other with in to of from fixed, have by Madison debt at the put floating, swapped billion billion out dispositions repayment partners to to what our to the December that $X.X a repaying our we are plan $X.X and $X coincide extent we in expected is that swaps reduce we funding we place through debt in and

with So fixing debt it and schedule up the the lines the of all said in repayment we December. what

Operator

question line Paolone of JPMorgan. comes Anthony or next Our from from comment the

Anthony Paolone

hear me? you Can

Andrew Mathias

Yes, I can.

Anthony Paolone

I to City prospective what office a question, the and sense can first return give investors market guess that you what side, So for kind as us New type you're Andrew, return just now of York Mark pitching general or project. for as sense third-party requires XXX on on Park right to a of maybe capital

Andrew Mathias

asset with an we that's in -- equity an will, partners with reason that's It's the much financing the into very a returns mean, levered think very And range that confident that return of IRRs. quality will. price, fixed relative We we're place. return to unique teens I expecting because us. the in-place over type low Sure, find rate attractive the Tony. in be come confident resolution, if attractive in there attractive on a I for money, you there the of good financing. got very part type asset a And of financing of is we're to able without at have took if it a we there buy we'll fixed-rate we're you and

Anthony Paolone

it. Got

NOI Vanderbilt, I One about to GAAP On where can one, relative us try to? level just and was And for guess, you're stabilized give Okay. fourth then quick think kind to cash of the quarter you the getting that one Matt. contributions to

Matthew DiLiberto

Sure.

quarter. questions, detailed share, about Like look spare you stuff me our have million. our Tony, -- $XX cash quickly. million $XX makes second. fourth share That's me for GAAP, For when one

Operator

next the Morgan comes comment Kamdem Ronald of Our question from Stanley. line from

Ronald Kamdem

Vandy. number one, Just going One just the back to market, transaction on

billion as $X for helpful. update would any color the of what's this plus JV like? prospects the planned as be interest being there Any what's marketed, there sort on the year, Just just XX% well

Andrew Mathias

December. One a Vanderbilt, no update from of hopeful sold. get to goal this And It's still year interest we're it make happen. to that

The question, here. hear of did repeat the the you part not second question? second I Can

Ronald Kamdem

Yes.

for dispositions year. of this Just

being had of the I marketed. think or been some in already process marketed

What Just are are there? where kind seeing of we process? that interest in you

Matthew DiLiberto

we've The think biggest I is covered at far... $XXX length which that million, of so component

Andrew Mathias

the in [indiscernible] days Seven markets

Matthew DiLiberto

to last release announced be went We and more component to days or That's are a the that market, assets of night. couple a the out that Seven shortly. it, Green in we market contract. will have in XXX

So on job and we're to as make in plan the a a strategy. half the with trying on commentary his in I Andrew that plan of doing headway of lot we're said admirable that think year, earlier, first

Marc Holliday

about initiatives, Yes. that just we'll there is some comment bringing market. give yet. haven't to we This disposition -- been there pretty I a summer. fresh the it mean, was -- some are month in that all of I the covers would -- has in has were these in which been market and a we by plan spring plans be XX.X December begun mean period, certain I

pretty which pretty never as underway are of call where of not all guidance fresh, mentioned, market, a of than sellers. it's we're easy currently we're standing some, the good sell, on market. times with, couple by It's all but and easier There are we've an Andrew to an we're which reiterated easy buy the

ability the certainly company, anybody public a in than as years else York. our more XX in over assets demonstrated here to monetize we've New market think I

And I measured a a quite larger even bit basis. on think

think we interest I have and ownership square Difficulty] own -- currently, [Technical about feet. we So

than we've more repatriated and So monetized far have we today.

business a have these. plan We on

pricing. or assets feel it's pockets JV. we Market's think about good X There's We're a We about but good it's opportunities characterize debt. as sale maybe of it as good it. positions. either. pretty think as for There's equity. very, very bad we'll We market not it for marketing was, I -- good get wouldn't

we and more where the by updates narrative roughly that's I there'll my be mentioned, of in now, as come, midyear. And opener are to

Ronald Kamdem

second in the the no just Great. artificial There deadlines. for request applications. New then released Gaming Board the was York one earlier was month, just And my

of those Was of are questions surprising, not the think there just due X, sort February from round first -- release, are wondering do questions? asking you surprising. plan on I that you anything

CNO? Just on plan the update what's the the for

Marc Holliday

real company. City, hard. this strategic we growing team, good a great it's We're leaning for to best York feel Times project, here make coalition it's supporters, state. very for New Manhattan. Well, I great this a think members, I for happen foot on priority is we've Square. thing. we forward it's the in grassroot are this it We're this mean, -- got we're feel because us. it casino We We investor going good over We our put it's team team, robust and -- both think all daily to for for for our into mean this

high targeted think for a around incredibly surrounding and that when focused not something effect that areas casino executed at entertainment a halo way, come itself, an integration And big of done that element good it's it's gaming the level, I it's a when it. really can boutique level immediately the for where it's entertainment, solely live gaming, is hospitality,

is an a of and as don't they built integration as they're people neighborhood not and until facility leave its go moated to the If done. destination kind where like

that exact I fully better have really behalf that. it's opposite and recovered the It's from think that of in all-time pandemic a though every hasn't something So can even use day, of is Square the project businesses that big getting help a area on we that's an better.

other as of a in part people of in it it, visitors to direction. is the should XXX,XXX think world. of great have both or the million card as is will calling direct it coursing this continue does through has locals. And help XX,XXX And year. the would Square all It XX and a city New that treasures. a project one crossroads parts. tourists be York we significant that day visitors to This capital Time town investment It of be City's a and a

be the where going victorious. and RFA And be responsive. to hopefully, going we're And the to end, we're going we'll there's be surprises no through We're at date competitive. to

Operator

the comes Sakwa Evercore or ISI. Steve line Our from next question comment of from

Stephen Sakwa

at ground My had those timing know quick or And are came questions just if of asked. have lease any going? been how on -- provide wondering the one just update XXX conversations and I'm question reset kind I the Madison. the went. date on could I you

Andrew Mathias

that said to rest, there's calls, unfortunately, an we're asset, on in that And we've leaseholder. and further. not determine lot comment the with to able currently really prior arbitration process rent a respect We're surrounding as as to of controversy litigation and

Stephen Sakwa

resolved can't it handicap gets that difficult your I give sometime would end of in it guess, timing? can that, expectation Or to kind is lot 'XX? appreciate a detail, that I of too but be you

Andrew Mathias

We resolved would be leasehold expect XXXX, the the rent to on in yes.

Operator

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

Unidentified Analyst

Is portfolios? between behind leverage follow capital JV Do up it. a structure on and strategy levels in consolidated you your the the see longer-term any difference and

Matthew DiLiberto

obviously, acquisitions corporate So of we look a of up than basis estate some are. now rolled view real at that's did. are measured. combined asset little where we level, comfortable And is, because a EBITDA at we of our first LTV, how leverage leverage to debt because not higher right is it, and We're one typical

this repayment so part we're of of reason year. the that's And over debt targeting the course

to that we'll we were based this with. end be we we the where of But have place, in at where completely are prior plan year on and comfortable the

consolidated, than way. to relates we that it have move to management I'm into continue unconsolidated As the as this in we will model, sure more past. we more tend it -- unconsolidated, move asset JVs to have

on as on a a in will amount be the case-by-case of maintain asset the JV make invested basis through and we based to taken the prudent leverage a That level company. company rolled that leverage sure up then that

overall is the where as So as sits not we're leverage something necessarily profile. focused on it

Unidentified Analyst

discovery Can how us is And think next market. on XX our you brokers about in conversations on More context of opportunities? pipeline to angle based transaction investments? Okay. seem the that opportunistic And won't of the the update your much this indicate just with we distressed taking another of months. over on you how see pricing

Marc Holliday

Well, on X of hope have certainly assets, we to price our months. within XX discovery

the would but those we this mean sufficient call a is I is where think pulse we've market pride where certainly dictate us. that's on on I doesn't good markets. I this a market. not that I So for pricing definitely undiscoverable. mean seen don't market, ourselves having pricing is.

doing market I there anticipate we will trades think This done Certainly, this be year. trades.

because a returns, are the You cetera. values. we're and lease, year, making -- refreshing adjustments required bring like have current and asset, to for the by market et lease by realism to about table think factors And that asset have internal rates and I NAVs as constantly cap our throughout growth good to we

I normalized will market think or a redeveloping less a either monetizing there a So be then which market. buildings. be the largely for stacks sponsorship that there's which will think and that of far have sponsorship doesn't assets overleveraged or to liquidity muscle through I have capacity there tale better X And better we or that their for retenanting properties going have, are think or to retained cities. will like values, think be solid and I be a have capital and sponsors their too There

our in definitely opportunistic will you I bucket the second an that I resources. into year, properties have those heads mention did might And up half again. our this to see capital fall of we us that would think December in that start poke own

investment or us opportunistically, probably second have of third-party the resources in market make We this access half that could to reentering acquisitive year. capital the

evidences these specifically terms York in the in like XX And But owners got or be of Manhattan people there rarely that otherwise market. kind there anticipate that, the market it or City XX% in like you've opportunities. days itself for because in in inventory some top will XX% or the might XX controlling New the all be what distress of of again,

And market. tend companies quite actually be see bit end this the in from starting to these liquid we're its Already and of We've to rise best over seen peak. capable XX rate weathering the points through basis a moderate. long come

we I think back that market see it when as spigot mentioned, liquidity back then and on will, on the to go. Andrew comes going financing long-term and you're

more is this think we a of mini So correction.

are how it. implying, we of that else now, sticking we're some this think maybe don't execute brokers the the with right but We our see can something we feel And year goes. plan we'll is and still

Operator

Bank. the comes from or comment from Our Deutsche question next of Derek line Johnston

Derek Johnston

balance And DPE DPE remind there think or mature you can Can plan how restrictions strategy. do capital that you $XX put how repaid, then capital are just this loans the on As million, just decreases us, those I the and to was to repayments -- update any how that an or work? be quarter deployed?

thoughts near the the for 'XX strategy what the I are But midterm? have term. we think for the

Matthew DiLiberto

relates of as use repayment, we restrictions. upon So to no have it capital

Andrew Mathias

$X loan. a was million

Matthew DiLiberto

with we've and a for the of was but restrictions with we repaid. proceeds how simply it, which years, we we and in as in specific proceeds. Right. DPE been anticipated come That was list the We the doing that off is debt lot it Three, sales with repayment to gotten million of what repayments came to couple have any those purchases book use don't the down $XX the along we've late paid 'XX, here

Andrew Mathias

the new to DPE or can investment get has dollars towards We allocate book figure don't our fungible or all as look go business -- opportunities all treat closed investment where system evaluate debt a repayment assets in reward DPE. the and money assets. investment redeployed out there. into dollars Those across sort are and of at is, we'll best lines, where into the We try to risk

Derek Johnston

what and your Got and -- guys being a Square submitted? And maybe confidence Okay. you a What stands gives potential then that even out you makes it Times fun the of PenDistrict it. stand application project one, if now casino license versus is would. that superior others the kind

Marc Holliday

know speaking Times in the location goes I sports betting, or rhetorical a don't the think Times with not, to restaurants which I entertainment, in high-end of on otherwise able cannot of speaking hotel live but entertainment, about news strictly is question Square. in the five-star Well, surroundings Square, if to even than I'm about just a better on not States into outdoor United other locations, with and be gaming integrate Times hospitality, space what for Square.

in New conceive just New York I it's -- it I certainly certainly location. couldn't better a City, state, -- mean York in

large-format entertainment that having with and district with a of technology theater the its mandate was it's think conceived entertainment overlay, Group uses. and XX, in exciting the actually use signage I

district, that then XX I subway a through public go Times you between Time take Madison, this in with Central of new put Station, Port Square the redevelopment, unprecedented district mean almost commercial on is are layer those within which celebrated block Penn and to from you celebrated uniquely transportation lines own Grand Central plug Square, about to in that that obviously, when a the its Authority, city. access very equidistant service fairly Grand that. top for all And and

public facility you of the that's and this And yet buying almost impact relative of because be ability usage location be millions millions visitors about to to least transit of a making that maximize drawing any and for might word. think to going other the

Times it's nature to You grid. job of creation, York aren't at tourism Square analysis not an the day, say X New the top to there not the surrounding It's things chart. of the incremental put attracting to the the puts to other those going end the of sites. to it together, domestic come the gamble of to viable only It's a come about tourism for lease economics, sort down tourism, at just creation, Casino, at disruption incredible will compelling district, just nature but I foreign that it think

-- It of to existing exists schools expense its building have anything built. at is housing Broadway the won't XXXX that building. an It's exists. be place it's It going in displace or or anything that a come parks those it's Recall doesn't It or developed. not commercial of to lines. doesn't

the a good just candidate have we there very fortune to competitive. happen So going a to be It's licensing. have is casino that I'm to that excited site pretty viable this for

And will is Green Rock City of there'll there's table. proposals, be what away imagine. I There's of SL going and one all the which Caesars come competition, with lots to York and real them. licenses on is Nation X Hopefully, And be New some about.

Operator

Wells Heck comment Our Fargo. the from next line comes Blaine from of question

Blaine Heck

in you Times how in-office I tenants as more are seeing they're the any guess, a commented going could businesses environment. office you filing think versus you've about more with deal looking a at to navigating, use Are work. remote space? strategy are still how here to hoteling And Q&A, hybrid be signs efficiently way more widespread their do that in the

Matthew DiLiberto

What's again? the part, second

Marc Holliday

to the part let. Blayne, just Say again, second

Blaine Heck

to the more hybrid Yes. a kind given a be It's little you do we're going is bit more strategy widespread in just think of it, that to of repeat hoteling environment?

Marc Holliday

a Hoteling time. long has been around for long,

of that up they I where ago because immediately wasn't and was, like where post more that trend pandemic, remember, being Then Plexiglass pandemic. separated cubicles leading a the of hot to and there trend floors. was there there we're there desk like -- was mean everybody shared direction almost in away it's it a were I were Is concept the long there think was feet, depopulating decades. it than between too telling was So cubicles the now forbidden by up from it

to has about more passed Initially, all in trending now thought less New York that, always a the think, had whether back and we've role, people it. and or we're I has think hoteling prevalent So way it's office, now. I

more leading you right not say I'm don't I was really of but it's maybe it's than more but pandemic, that it it. can't aware mean can't You years if see up -- coming than say I I of, it's it but to I'd maybe the say out was can, in

Steven Durels

It's also only applicable to very large tenants.

City, operating If you them their business. than less viable is in hoteling about square really tenant think of the that's feet, average XX,XXX York not a way New

it's tenant a about If feet, industries. you're talking very it, And to we of conversation. specific it's types of hundreds typically, where then a square see with certain of thousands

firms the businesses, things sales it and when we financial like see that, businesses. you frequently. into So less go big media far consulting But

Blaine Heck

general on All on debt even pricing expect in and and landlords you that to trend assets I office right. And you a comment XXXX? for just questions. availability That's a could couple earlier bit very just more throughout hoping up to was helpful. on follow little And how then debt of today? availability

Marc Holliday

available. earlier, commentary bit duration it Beyond touched think is gave we a on Yes, the we we slightly

Matthew DiLiberto

It's will so widely earlier, location I think ever. said sponsorship just I matter more And quality available. and building than

with and good a we're sponsor feedback good has product. obviously been out We're good. So the

Marc Holliday

a I of longer return second the you'll little half that that the rate market. year of bit think of a we fixed expect see

So about again, the going that we'll I market. on blink it your conference you're to be these here hopefully, going in be mean, And sitting we'll are if quarter capacity pretty low. third sounds eyes, or to point, you're call. more talking short be -- our -- by second

that kind for geared yes, shape. So year, in right? this execution ourselves we're projects any have don't of we good Fortunately,

operator? question, Next

Operator

Jefferies. Peter question next from line the comes from Abramowitz of Our

Peter Abramowitz

activity, kind guess, been Just Avenue Xnd. sound to little because one XXX leasing I more Park it have when Lexington, Do by on different Avenue of then you you that assets bit it just to the refi I like east on of comes would performing for to how the Avenue. talked utilization that think submarket me cutoff of has are market kind who also both asset a in ask, less you depending differently cutoff. or as conversations at to cited closer financing a of about than similar Third then be Third the versus you and and terms XXX with easier

Andrew Mathias

no. us. don't you I at I didn't I -- so don't No, from hear all. mean that -- commentary not

whoever if commentary financing XXX, year difference base that get. that that tenant at If you print. sold gave as don't as at look a end at last about of hospital the to price We at great a Third in model. roster our it's missed you institutional And no XXX makes Avenue the absolutely I

Matthew DiLiberto

Street Xnd XXX And matures XXXX. in

discussing right So we're that not now.

Marc Holliday

Operator?

Operator

I'm the at this questions queue sir. not showing any in additional time,

Marc Holliday

today's that to out including of investments really phone, the action us stakeholders Okay. XXXX, plan gave that anyone an create here And a the Well, announced it check morning. host would state of other from York Adams plan Green forward. a York still that order to lot exciting bring city who's highlights in of to of encourage were I born New several amongst worked New out for on this address you things, on, the at Mayor

dollars and we make state now for were to Manhattan of see he counsel yes, recommendations and the in he city, of developed, city office well see the and of millions investment modifications of in open through housing great in his more that making needed and life communication which conversion of new was of CBDs streets, the permanent includes and in how in zoning the which residential to that to hundreds the cities for in make their place corridors as how in all by And investments think city and and affordable of other think throughout very are around making to new spaces great what it X XX/X the there city, reaffirmed incentives and appreciated. calls necessary is boroughs public commitment the with building executable much initiatives the Mayor Adams commercial they including which happen housing I development as working quality and to quickly were to much of more to the

making the cleaner, on it's the city and goals, together thing come. city see. state So are better good and safer, more a working towards that And common to to

thank today. for joining So you us

Operator

you gentlemen, concludes thank in today's the This Ladies for and participating conference. program.

now have may disconnect. You day. wonderful Everyone, a

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