CXP - Earnings call transcript Q3 2018 | Columbia Property Trust, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Columbia Property Trust third quarter 2018 conference call and webcast. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Mr. would like to to over conference the turn I Director Investor Stover, Matt of Relations. Please go ahead.

Matt Stover

conference Good the afternoon investor third to call. quarter XXXX everyone Columbia Property and welcome Trust

Jim are call the President Executive President other Officer with Chief today members senior Fleming, On Nelson of Vice Executive our me and Mills, Chief Financial and and Officer, management team.

and on be found this of were quarterly materially to on We XXXX supplemental forward-looking we can are this copy and our number be uncertainties. discussed section prepared made a our in replay Form our expected of SEC this section by the package, cause regarding of afternoon call Risk providing factors Factors Relations in XX-K. audio and tomorrow. results on remarks with on anticipated, today's that afternoon results released after time Investor and Form our Our filed website differ future of an operating could call results with A from the the our those and file involve website the today's those risks on will be including which X-K. will XX-Q SEC other Statements statements events available the actual

made call. as obligation are to conference any on information statements update this this based and Columbia well assumptions no undertakes Forward-looking discussed available current at beliefs, as expectations, time. to us information on

call in Nelson GAAP that, supplemental will With also over measures financial call, we non-GAAP the found measures. Mills. will to During certain our turn to I financial this financial Reconciliations can be discuss comparable data.

Nelson Mills

Matt and you welcome Thank call. to today's everyone

the tremendous recent our demonstrate operations have leasing progress and have in quarter undergone we this transformation results made the and teams benefits quarters. of Our the

of positioned the Let's portfolio, begin the is sector. office a our across best entire look one which at with

have focused D.C. barrier, the we in our markets key neighborhoods City, York attractive and XX% and We Francisco Washington, in have assets on our Better coastal growing San about high gateway these of yet, New of cities. efforts

number growing These dynamic with recently are attractive flexible Within renovated, boutique services. hallmarks and of of portfolio. seeking are companies features these a targeted space the Columbia submarkets, amenities

a companies we Web roster tenant Snap, world's our as Twitter, able the some Inspire to attract As of Services, exciting to result, Brands. most been DocuSign, and such Gemini have Amazon

this generated Let's $X.XX We normalized take last at per over is the a of quarter a increase results. in look XX% positioning our how FFO driving year. of quarterly $X.XX share, delivered third the strategic

quarter the XX.X%, Our same-store accelerated first second X.X% back XX.X% the growth NOI quarter. in to in and up from

time team of XXXX We for our to quarter, the strongest few XXX,XXX also square near-term very has raised vacancy continues expirations, third quarter the since last performance leasing guidance portfolio fourth the activity. leasing our year. We our leased significant this little feet during generate year. third Though and

our to That's the more another points During up quarter, last time rate leased than XX.X%. climbed XX year. since basis basis points this XXX

Glenlake leasing through of at as of negotiated property a lease XXXX. at take the serve Inspire's in was square We of entire successes during of Arby's, building, an Three the quarter Central notable which will the to our Inspire subsidiary our with headquarters One least submarket Atlanta's foot Perimeter expansion company's March XXX,XXX Brands.

ago. is at two success achieved steady rate continue in Square years leased where Market XX% XX% We our up to have from D.C., we This have an Washington, property.

our well market that in and substantial We of rates recent years will terms, be completed new soon. part achieve as we the as have to there opening deck rooftop top in to renovations continue due

construction. and at to the our office Market D.C. portion each soft, new are The market but of this by trophy We be XX% expect office to with outsized capturing leased continues have we year building end. Square an rates year compete market

now XX have affairs as our created blocks tenants. offices vacancy XXX This all and to a for is these specifically gravity We smaller of companies government remaining community tenants. center tenant over in of has and Fortune geared

while WeWork we in Madison Midtown of explored re-leasing. and and at the lease the various all After WeWork a renovation compelling. week, rent saving XX-year full to that and equivalent costs. terms foot weighing acquired lease XXXX costs, of achieve concluded this office property were space lease signed New timing, for Just high-$XX's with options have for to South. at building We most in a able this per late York, we XXX was We gross, in renovation substantial

of the feet office is of feet taking space XXX,XXX WeWork remain. square space, retail X,XXX all prime While square

be Assuming a ground-up Village. highly XX-story, the neighborhood expect with Despite live-work-play desirable Union very having within is market million building a Square continue create convergence transportation with terrific This XXX,XXX feet, The Estate overall. Normandy competing XXX on for XX,XXX no of Real we located XX X% there a fully office development rate and almost Manhattan's cost property foot entitled Park approximately achieve and return and portfolio. a little venture will and glass, terms submarket. This space, this portfolio opportunities we Earlier in from the office ranging to to rollover, this square be office boutique project. is ceilings. near-term we on stabilized with Partners new options loft-style floor-to-ceiling at will supply well-leased growth importantly, entered the plates exciting and foot terraces private result on is building month, Midtown South. stunning into $XXX this with square end permitted agreement floor high to joint X,XXX in Greenwich a project Broadway retail an

mid late and by to We project soon ground XXXX. complete will to the expect break

yet are another demand confident that and We for shareholders. be value seeing are will this highly already significant creator our

and lease our Another opportunity is ahead remaining vacant space expirations. future

XXX,XXX in properties. vast in the and top located vacancy is feet While we have submarkets the best across only approximately majority our portfolio, performing

are below our current longer and across expirations. on addressing portfolio, we upcoming As rates. proactive and And today always, XX% will rental term both the to be average rents market net continue in creative in-place

can and on basis You just on were in than the GAAP out XX% basis. our in greater which leasing this a third above see cash playing spreads X% quarter, a

have we addition, in growth significant recent embedded In activity. our leasing unrealized

occupancy economic below leased our at Our still XX.X%. is of rate well XX.X%,

this rent gap which add at in as burns off close So commence accelerating as came growth, leases and this our and industry-leading quarter. will NOI free already to recent and same-store XX.X%

is just Of store course, this our activity. same

other our development at like non-core opportunities to share we are spread are the include mind may in can joint risks well that overall We capital hard buybacks, XXX especially substantial if as acquisitions, these bring without will and sale value-add our more some partners advance to we working own the capital. also Broadway This to proceeds in keeping be find right the to opportunities done from venture may the further, to of our proceeds other as but remaining look use strategy. have also of in our potential We selected also economy. looking requiring assets

what results. position most of and more are hard strategy make going emerging. work to what's to a get quarter and and know I many you create drive we are into about We I ahead their that want to today, growth my the opportunities forward. thank understand more I have strong our energy ways spending and for the excitement we a but team know not of accomplished another want they they to share lot that details our on our advance in finding of delivered will

are financial healthy position. We in a

meet help sheet maintained new us have that share opportunities We opportunistic value. strong will identify balance well-positioned to and that to for shareholder commitment buybacks our a allows create we are ongoing

and a dramatic New have Boston. five so, In As D.C. a created our of past most of in building of plus which years, York, through and most transformation one gone most you capitalized in doing and we over proceeds have reinvesting those now redevelopment billion we nearly Washington San legacy have leasing of opportunities, $X lot on. know, Francisco selling we properties the of

three properties. circumstances left These sold Westinghouse in Lindbergh and non-core not suburban specific have campus because Glenlake large have Atlanta of We at Pittsburgh. the each properties yet in been of the and in markets,

now a discussed, good to we of we believe these. all as However time is market

and soon. As very a the the Westinghouse with Lindbergh now we the to Glenlake and both market in campus plan same result, do are

Our couple by XXX,XXX one a ground ago, of in of One floor great Glenlake Glenlake years A the campus as to both two-building but our of it's success markets, well story. spaces as isn't focus at shared to square we common the foot, added amenities outdoor buildings.

thereafter Arby's. terms This a in we new a and of good project all remaining good rates very with completely One at we leased As shortly we is and all backfilled Three at price. now a with leased XXX% lease expecting lease space Glenlake good are Building result,

years XX and second residential rail end Atlanta, and is property on Lindbergh foot between the It's square situated at with XXX,XXX in attractive and investment of busiest other only spectrum. parking good the Midtown, the is MARTA station Buckhead nearby. Our old

get we as don't, is this take right ourselves. If at very sell. fully buyer its buildings is AT&T do to much time plenty of strategy it be think two to on. we in the re-lease leaving If we to this a other who the value-add just However leased and to we years. buyer try re-leasing property will has and market the decent that have will opportunity and is expires. We time now to over we many pricing, we find will property the so plan AT&T, execute This before will

will more the couple about know of We that next months. over

Finally, in there's headquarters Pittsburgh. the three-building campus suburban Westinghouse

and completed approvals. all company now required resolved Westinghouse on the exterior bankruptcy bought of after buildings work more Brookfield the these all the is We regulatory and of received the have importantly,

you able lease of extend XX many know, we to bankruptcy process years. the to As during the were

a years with have of XX.X property lease good a remaining about term. sponsor we now So leased and fully

put to the that Our market plan on is property soon.

very our and reinvest in pull These looking Francisco flows to barrier are temporarily and our but solid our a million markets. back point, in our We Jim sales provide which earnings provide one we reinvest to and dispositions investments growing. we will be New that high just San only will sales future also in forward Los into narrow building we in proceeds. and a will that will Angeles. non-core creating minute, These $XXX high that and about as each Pittsburgh will asset remaining color we in Washington with to the proceeds, in strategy Atlanta quality growth bit on advance York, expect Boston markets cash more are At these plan plus non-core D.C. key

will you provide on I with Jim We our results our these and in to posted With dispositions. updated detail our progress will outlook. that, turn it more over keep discuss to

Jim Fleming

year-end you lease date are NOI we quarter, our our on normalized again again Thank pleasure reporting with bring our a up you results Nelson everyone to raising FFO. percentage, our to speak last guidance today strong Similar it's and same-store and to and our ranges and full-year growth progress. for

For we normalized the XX.X%. up quarter FFO $X.XX, growth and quarter, reported last same-store of NOI of $X.XX from

now basis XXX,XXX XX.X% rollover leased, XXXX, end limited XX mentioned Our of Nelson feet. with portfolio as points and of another is just through year up the square

is below line spread economic in percentage is in Our leased at percentage down XX.X% will The now and drive That of from bottom our XX spread points eight occupancy this March. and continued growth. rate. X.X% June further narrowing top points

solid debt, Our only buyback off of to shares date, share debt. one be balance times. pay leaving used assets, third billion properties debt-to-EBITDA the This XX% continue along Year with repurchased We program. new outstanding. growth Washington, shares our Street a to million of mortgage unencumbered will sale execute D.C. source now invest in down gross you most now XXX our net our under a still available will the to assets. more have allow of the continues we Square of to in than $XX with of sold property less second strength. with and Market XXX of opportunistically $X balance paid Glenlake ended we million to have have East on and October, In assets million and than recall Pittsburgh of us the we debt $XXX quarter the Atlanta to ratio mortgage loan, X.X is and find Back we with authorization Xfirst sheet, quarter, One our current in proceeds We sheet and

able are we results most Now end our the of the our guidance are metrics. year, for the we have narrow more about of that nearing and ranges certainty to we

up very already We for had and the of metrics. we year performance have our our good guidance have throughout moved most

XX% and lower to move to both growth and are XX%. end with full-year We of now for able and transaction same NOI driven of projected same-store moved of to can at up year-end very range our same-store to being in timing that, having you increased the leased are XX% we of and ranges bottom to our our the ends see XX% industry-leading by store of strong summary, guidance. percentage and $X.XX. top FFO a leased up percentage new a performance solid Property NOI, for is guidance $X.XX and we both the In have and year Trust Columbia it a metrics

position, in flow given a and growth and our balance and we benefiting are portfolio a strong We cash are high-quality a earnings solid sheet. from

continue believe represents at is our We a and valuation to levels great fully appreciated value. not these

Both expected our but down with FFO this are element originally are timing also a either for properties Glenlake process well. of year our performing in we we after than pleased now some results it's provided guidance this before and FFO. property expected But and Lindbergh to Atlanta first started much We will there later year our are of the time to close XXXX very $X.XX, we the is and $X.XX the XXXX sale assets. we in our year-end. unlikely that we market, sale now the of When

lower important, should properties Atlanta to in of we year. in we year's same we row. and double-digit in than campus sell well the our originally for rough XXXX the in in and continue next FFO to down of will store FFO the lower in will we down be but this FFO in with Timing expect this XXXX As terms be a XXXX. The time, our strong XXXX, XXXX, but be general as will next time have in in should growth bit same year transactions a in And resulting instead be for as Pittsburgh. growth think higher portfolio NOI range FFO the a second Westinghouse minimize dilution XXXX, as year core result, both assuming of projected

high leave Of to the going able achieve barrier investments flows very it's course, selling pricing, all quality do in only us and as long three right to with business. cash are as And these will high of the good markets for forward. believe we thing we

to We proceeds. be the patient are reinvesting going

and all will some and and share to look that value-add have a but will for allow potentially additional reinvestments We cash our opportunities FFO flow increase us we buybacks, of we will expect share per what for look general when a strong this come opportunities. but provide balance on sheet we more right you expecting, call. are I our as guidance we to hope we the gives indication of next

received would Before investors. we we from to like number a a and take address have your that times analysts questions, Nelson of recently question

Nelson Mills

Thank you Jim.

As many an Bloomberg company on the Journal have are our topic. Street month there that might the offer running process we options. a and Wall I know, unsolicited received evaluate that in were of speculated buy to and comments articles three to we you have last this

on specifically won't we these and market can't comment First, rumors.

best and third, our to of result And team its provide all are the is rest Columbia we shareholders. on for page. you to track add Board excited and Second, at to our duty for management are should happy is take now With that I on same focused will questions. the about assured Jim create record our and us our business fiduciary and plan working hard be value that, to to our your shareholders our

Operator

[Operator Instructions].

ahead. from first Please Sheila Evercore. Our of come go today will McGrath question

Sheila McGrath

wondering on a give press if process? October. just the was in says I us Nelson, evening. decision the Good WeWork, bit commenced And that the more little also lease detail Yes. the you Avenue release could Madison

a that? we receive how to detail Just right more So are you think should little starting rent about away? on

Nelson Mills

you. Thank Hi Okay. Sheila.

in we land under the last the we The expired. property fall. the back lease property, acquired as ground acquired So mentioned,

back the was pretty spring. go interest took us compelling property multi-tenant months the leasing. possession for them to keen negotiations of have we ago, we continued several evaluating way been to us earlier few approached options a So reasons. including that it became this And in and building spec we throughout have and that WeWork the with summer the a had

a First or they $XX-ish, equivalent gross rate, was you the the high-$XX, range. expenses $XX-ish, that equivalent count modified operating It's but will in all, net of we rate. that cover, is of rate that achieved very when

target slightly downtime, building So rent for maybe route. than to The rate about we it would felt downtime that about or the build the was was less a the multi-tenant have been terms same concessions, us. and great overall. the free even And we have the gone good

with that capital substantial was, old of improvements would leases, cost leases any both it it. to have The bought marketable WeWork we on attractive of made take year out letter credit. pretty other part it significant cost weighed compelling. building And our our enhancements, we building finally, of I pretty parent on a lease-able, the require we to a what to were terms deal. we willing themselves, as credit key many when in they it this not XXX-plus in our corporate some it, the When of And was need which improvements as piece enhancement and credit guarantee big done and building well make of compared was terms then years base it much was as including had we WeWork going to accept of say, of would to was obtain the it able that that as under this also

that, in it So compelling we felt was all a very of like weighing deal.

months that. we and So period summer term got have year a for on another then as free rent, we far construction several lease as of

total Jim, now, XX commencement. months is number the from I think, from

right. I think that's

Jim Fleming

Yes.

Nelson Mills

to commence won't until Anyway, as cash occupied. earnings, the And before building flow will while be starts. far ready that is so be GAAP it as

Jim Fleming

is lease. Yes. Sheila, normal a this

they build. got have over We what controls

have do. the the at start work, lease just will entirely do. got their free work do that turned to rent the the this them. the starting then will they now tenant And building to the haven't base over to period. of improvement work we have They But way space So and clock's end

that have give as well as So much with really period. overlaps free scenario. we construction construction would in the all multi-tenant would pretty that We our own a them with to rent, obviously need

until all very but to capitalizing a The of for will that you about the up a so so that. until just this is know, be feel we happen project development and contribution interest us, FFO we dollars point. on that end won't So we good re-development of our get

just there cost be corporate our would So consolidated at an there benefit FFO like be really GAAP. will average of

Sheila McGrath

this forward, And any so have put costs point should from kind in? when it do stabilize, of about? we return capital you to And on think what

Jim Fleming

we the as improvements. well Nelson, total? contributing so think a building Sheila, a Yes. are little $XXX base the foot to I it's tenant as And over

Nelson Mills

Yes.

Jim Fleming

is the total really tenant a around at little rent. improvement building And of the then a paying it but is And matter probably didn't bit half yield for be dollars. X% commences dollars property think will this we rest once I over math, base that that and on

Nelson Mills

been their control get can for they rights, our not do and can the than us. for less buildout lot, we lot base a money do cost The approval had requirements. we We spec. have of was funded approved space, rights and was it reasons. substantially so also TI until quality building cost WeWork build it's budgeted a Yes. does by the less they to multi-tenant same it a out for And had build budgeted does to couple builds

in those have controls we place. all So

for good great it's So WeWork. outcome great location a outcome. It's It's for a us. a

We excited are about it. very

Sheila McGrath

do grade do retail control last you the one, or And they? level

Nelson Mills

the retail. control feet. X,XXX It's We still

We others. stores of pretty is nice from interest stretch a of Nomad retail. already getting lot furniture and are That

care do of we So take to in order. short that expect

Sheila McGrath

you. Thank Great. Okay.

Jim Fleming

Sheila. Thanks

Operator

go John Kim BMO Our of Markets. Please from next come question Capital will ahead.

John Kim

XX% are press that have The to came yet your article message wanted components and just Wall incorrect? conveying Bloomberg I that the you I on the ask since unusual. say, Is Thanks. out the very about or are you is Street down, which Journal the are articles. are stock incorrect is articles sources, credible would

Jim Fleming

John. this, we say comment, really much let about but will Nelson me just, can't

they I As note didn't say we anything indicated the said, articles, that that think likely. was will both

knows that's maybe an having who So effect.

Nelson Mills

we right, all That's about John. say Yes. That's that. can

John Kim

Can you if I an just as specifically advisor? hired ask have Stanley Morgan

Nelson Mills

of on advisor others Morgan ago. been Stanley has the has we number years a JPMorgan since launched as fronts know company our and

we It are regular number we a So to best be in interest specific comment on do them of in rumors. can't on really so. our with But contact things. the wouldn't all, shareholders' that's

John Kim

New your that with of you How wondering On Francisco? REIT. have dispositions, D.C. you the pressed active And actively been proceeds recently if market? San you Your looking? are another am in use from Ferry York joint acquired I been have partner and of venture Or acquiring in Building looking you can out active

Nelson Mills

We have been very actively looking.

markets regard. San competitive, All is Francisco very have chosen list of top of but at you that our in the we are as know,

We We are XX properties being have being Building bidding patient. being we a well as the in number on into are process Ferry But in others. properties. are look a Montgomery disciplined. California we underwriting gone always, Those and and of take did year. several and the our XXX great last at disciplined and the But

So didn't trade the needed. great properties. price we at They

John Kim

a the with apologize lease WeWork? but And XXX to follow-up to share component Okay. that just or this, like I if any you rate was there I variable missed Madison, then profit on

Nelson Mills

at resale, good with not rate market standard was venture, sharing, and I all. There straightforward no No, sharing on said, is pretty lease no as pretty a no it deal. bumps, profit

John Kim

Or plan traditional use you is clients? this Do for it if they know for enterprise WeWork? to the

Nelson Mills

corridor I Facebook but up leases up at market today, having strong believe -- some that Lot of The good the that just that there. a signing that XX enterprise I time Madison. Midtown for South, activity street of but particular, corridor figure right They whole now. have is story out interest lot believe are the is, tenants intent. that's got to in that their

with We think we WeWork. lot the driver. feel I the So of was very negotiated terms good that the about

location feel think good I they reasons. all for those the about

everybody. a it's think I good win-win for So

John Kim

Great. you. Thank

Nelson Mills

you. Thank

Operator

go Vikram Malhotra Please from of Morgan come will question Stanley. ahead. next The

Vikram Malhotra

Thanks.

us question sense of mentioned the to XXX, what for grade. expecting are just of at a you or value? are in you the baking clarify interest give grade, you terms you what last rental that Can in of Just on value

Nelson Mills

For cost creation, about expecting yield project. on of stabilized on so Jim that XXX deliver we Madison to X% as mentioned, value well, are a all-in

And has some question question intent we at? there to speculation, for? been and about to trade And out that that's we don't so some the option. some what compelling a what always would there pretty trade away. be, have full an necessarily But would have building lease There been trades there would were sell it right an

think that in worth credit of enhancements credit. It's we have in that I and a place. part We place. enhancement XX is rent letter months the got credit of

mitigate good very would about feel concerns any risk that We that a might we have. that. credit buyer So think

guess the is, very well building I feel the that what X% confident cap. trade I we So am would inside saying

value So feel there. well the there. if deliver and definitely it, creation. But see, there is about profit good We we sell we when, can we what

Vikram Malhotra

just back, your then whatever just things to comments change have going lot portfolio. to done stepping the back of guess mentioned. around And you Okay. article I the a

But sort do proceeds? you point? this a market from have Can if value, You buyback? are What contemplating? at You what recognize on, something contemplating the here have work. of else from bigger are assuming got doesn't you the you else the obviously just

Nelson Mills

focused new. extremely is Board the that something is but that's nothing this on Well,

Our and been has our focused on team the this Board beginning. management since

is therefore But and good will path is, continue about we in be we do more think feel a road. portfolio realize at that and the of our discount what level. of the peers, investors demand the attractive for so As we will the regardless is creation do have desirable our public are part at picture. more but accomplish we to what able we value doing buybacks shares down like And to portfolio the reposition of demand options all NAV, good compelling we our share are the the chose we we traded portfolio, terms

the As all and we over only of we of years able we rent up. several that are last the properties didn't mentioned, expirations just but most lot it had happen. That not leased. over were rolled bought A get leased properties and we lease we rollover to substantial bought, we the XX%

And for find in so we difficult It's are looking to value-add we stray. markets acquisitions, more but the our of to very dint opportunities same. do

We have to those, got and capitalize team when on if a do. capable we

will active continue to keep keep So pipeline. and stay and we an

relative the of on that noting and set worth it's in XXXX, office have gateway performance. the a to look XXXX the near But value, opportunities or we for and values buybacks flows higher basis, a of at will the share that. in grow relative to the it near top everything relative both cash here. higher and are continue and reward we price. of to from performance, particular, set will office doing share in and to pack, continue we think been But We Certainly, part top pack the of we terms drive can market are

that. going whatever we focused with per noting do are doing create market All continue we do worth So to the but the Board we that we max that is to determined and it's to gradually because on satisfied rewarding the are not is value push and strategy said, value, that need think shareholder. to

be of all we mindful so achieve going are opportunities And to that to end.

Vikram Malhotra

Thanks. Okay. Great.

Nelson Mills

Vikram. Thank

Operator

The ahead. will next go of question Sachs. from come Julien Blouin Goldman Please

Julien Blouin

XX views you Hi. Madison view lease question: yes, them it? my updated Thanks how are on your And top longer I WeWork sort tenants. how as brings big wondering well just following tenant? was you comfortable could term, So exposure the into How get? a for with of taking that XXX

Nelson Mills

Hi question. Julien. Good

that work other doesn't fit, enhancement. markets. the compelling under and everywhere It's that's So good we us some we credit cases, mindful the building I mentioned buildings this places, some our what X% of places in which were is brings are element. it's as important of we the and exposure co-working to, But we not. pretty think in three was in it of an total. it enhancement, in tenant, again, is is In we three three all substantial think but said, able still to a credit a felt WeWork as, are achieve different well overall And

plug and feel most we good. so somewhat reluctant are it's say, would thoughtful when shareholders these to right in. going about And fir at far a like And for But them yes, and like to our are it. We so properties. of so from are properties our I benefit where we they feel

under all that So we and standpoint the guess at I about from at a X% not just overall this risk point. are concerned

Julien Blouin

you. Thank Awesome.

Nelson Mills

Thank you.

Operator

Instructions]. [Operator

Please come SunTrust. Our next question Lewis will go ahead. from of Michael

Michael Lewis

is question Great. Thank My for first you. Jim.

all asset out In and terms XQ of for at that Or else XQ of sales changed there that for Or you? the those was surprised taking entirely XXXX, all? from equation? Atlanta expectations really anything that in the guidance that Pittsburgh was increase

Jim Fleming

you the Mike. beginning Hi $X.XX of answer go of Good lot timing. to is, the of that where need we lot from and the is of year to $X.XX the question increase And to the really a to beginning that that. now, are a back transaction analyze the to year,

sell that Our Atlanta the the of we now to Pittsburgh assets assumed clear, from assumption there this are know And we about asset than now would $X.XX would that and we begin the this we we really year. with. didn't be or sell that's didn't narrow did that. at of range lot we would really kept We a the timing Atlanta that didn't know year year assets beginning because the but model transaction until guidance now. some range more think we year become downtime the the at and the beginning really would the We sell the just

had see. So would that's things year. up, way, of moved the what the most you say, have But throughout of most us some we I

in will that about wind general We we we and leased have up range. XX% think gotten

We have had tax abatements. some

We happened, all things positive. had other generally some that various have have

I how so and cents both is exactly haven't how many broken to are the know down And cents is it but many one they contributing. other,

them are So we the that doing thing timing should portfolio keep there when that it's but right think the to assets, and to we well in these going do. everybody sell we will sell is because is mind very

terms buybacks, of to but trying to reinvest be money. won't be to do are not buy. to We other in find to rushed assets some going We we go rushed the may share

in expecting now are original we expected some XXXX. where in we So XXXX downtime

Michael Lewis

else maybe City or is then And that Boston? LA And will market the Jersey possibility what you you it's of Madison? made you or even to something whether a do property anything have think XXX else, Great. then or exit the in Okay. in sales, whether terms put West XXXX, you there on grow of decision, want

Nelson Mills

Yes.

I it's Michael, properties to exit unlikely. now nothing the say right mentioned. plans would any of in the There is you So

There depend the from for Aside overall and picture is so capital the urgency Pittsburgh, and to of those Atlanta forth. no it will on exit others. uses

do have got of on It's a say. still bit unlikely, I of. lease just the renewing to We we work Jersey would which hopeful are City

Michael Lewis

Okay.

Nelson Mills

Yes.

Michael Lewis

last my then question. And

the of need that think, under expensed few one accounting costs office I be companies, to are doesn't the new leasing You that internal have rules.

they don't that's shorter So lease terms that lease I too about is have you and want ask heard sheet? balance any to about but Or their I come consider that liability something tenants ask up? that. to a wondering, early because want asset might But not on to was this, it's put maybe you of

Nelson Mills

we won't Michael, have is won't leasing the it it, I over, even question pass over two though I not any didn't really questions cost. capitalizing significant been softball and which good that internal ask you pass

be next all this on And that's to legal So we that's to us, year. not not terms will going capitalize we reduction able fees. what have capitalize for us. Really number to to FFO very big mean still be in do not burden us will and brokerage a commissions, is a for of

the rules So to companies can't speak I effect but will for it of on XXXX us as think. much really go on in not others. an that effect have this into more is other have we we going change

balance to now balance obligation of office may just kind it's have you to sheet don't real question This estate space messier. an bit Okay, I their the or liability effect of the actually messy. of a they sheet users ask. that's did on really have then But to covenants. because are lease the debt will as asset any put their it's little a going users affecting on know as know that a and you having be corresponding

But it reduction, sheet. seen we result term lease rather a that users than the of at on that. some any we shorter really I guess looking case are term any their haven't leases big be seen balance reduce any So a desire liability would tenants having haven't I as say, might by to really it.

just it's So not showing us up at yet. least for

Michael Lewis

it. right. All Got Thanks a lot guys.

Nelson Mills

you Thank Michael.

Jim Fleming

Thanks Michael.

Operator

Nelson Ladies closing for to session. any question-and-answer the turn ever would Mills and remarks. like our conclude gentlemen, conference will this to I back

A -Nelson Mills

the today our you San for great tour to look and all next advance of and/or in look later We Francisco the you report in seeing you joining progress otherwise, for meeting next month, for you the elsewhere NAREIT our around questions property the guidance us forward especially today, in forward year for year in quarter. on the next thank But month questions. to several quarter. of the updating next and we Well,

will So thanks time for I you talk your soon. again to and

Operator

The conference now Thank you concluded. attending has presentation. for today's

disconnect. now may You

Columbia Property Trust (CXP) 26 Oct 182018 Q3 Earnings call transcript