PGRE - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Paramount Group First Quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. conference being this XXth, today, that XXXX. note call recorded is April Please turn to call President will the I now over Development Investor of and Tom Relations. Business Vice Hennessy,

Tom Hennessy

and everyone. good Thank you, Operator, morning,

would like earnings of Results Both in Information, XXXX supplemental can Before we found and at Paramount begin, to everyone Group the first release released to were which section Quarterly under the the point website information be Investors quarter our yesterday. www.pgre.com. Financial I heading

within statements forward-looking meaning be will comments our of Federal the Laws. the Securities Some of

and statements by differ Forward-looking to other the to such discussion refer as condition. them. and that interpreting to which are Therefore, could relying risks upon numerous our results uncertainties results phrases actual filings detailed materially or more you should, from words could are our you should usually of a the impact financial for cause and risks that what identified We caution will, operating SEC exercise we future similar subject expect, expect. in

Officer, Behler, Financial have to the Executive over we Wilbur Albert will and some provide I today, Chairman, the prepared operating non-GAAP measures Executive to be financial our comparable And in Albert. a Operating GAAP. will our of call XXXX Mr. with earnings these will the quarter first then turn Management remarks the call results the for isolation Treasurer. measure Estate. Peter Officer, is President we reconciliation supplemental as our Real Chief to evaluating A which should of in Hosting that, useful we believe company. Head Officer, directly company's open most Chief in information. call can or the Paes, During discuss Chief the With and These President, accordance Brindley, be measures we and GAAP available considered questions. release will Vice opening substitute not in measures performance. our call, of and

Albert Behler

us cash, with joining reported everyone for And year-over-year. quarter share X.X% you, core FFO growing Tom. first you, this the Same-store our we NOI morning. per Thank for thank Yesterday, $X.XX of

first detail. raising XXXX As strong greater financial will guidance our and in Wilbur core a results review result earnings, full of our our we FFO year quarter guidance. are

During the was which about expectations in square more leased with quarter. leasing in approximately first XXX,XXX than we quarter, feet, last and line the we accomplished X.X% year's our

we recall, leased highlighted by feet we may X lease last had a were we over to quarter's the XXX,XXX^X expect deals. this you New square leased Of square quarter, as million The As in guidance, the in over year leasing year. million once over outlined important feet in current XXX,XXX was and again our feet York. two leased

Hilton First, XX-year our And with Fung, the lease Din an announced X,XXX Avenue Tai year retail at XX-XX-X with base AP previously renewal glass at space + the second, square at Broadway. square term. XXXX over XX covering cube XX,XXX of an for of foot new feet

by now we vicinity the XXXX between will world-renowned broadband and three couldn't secure and with campus square Avenue rated, before, feet for be Busheri. tenants for quarters. to our amenity said go above be wellness. outcome. of for and a that provide was longer the Avenue, health promote our than nearly points. square us ocean Equinoxe center to but which stitched would square world-class [Indiscernible] will working All have admittedly, and be food in prime soon feet options. million X upcoming lounge and [Indiscernible], great cube Sixth up and and desirable together work. amenity serve like in I've A on to we the entire additional tenants surrounded. took the beverage look grant Including amenities leasing socialize We state-of-the-art X food million be variety the Broadway, at Fung. feet This X.X plans and conference room glass grab our As La to million XXXX spaces, roughly the options Sixth developed as of will in deliberate all will updating amenity restaurant areas at liked, forward the and approach happier you the this

Now, a we in on minutes spend seeing let me what few markets. are our

firms returning have the month seems York. ahead. environment compare ' we the you office assessing be tenants leasing office the New to see markets, that New San to see lagging in measured during Francisco, return Francisco hear to plans to we beginning surprisingly, past not When and in a that timelines, activity. in We over are year, our two when behind for approach San York While the and taken utilization more

As to you also may related mask Francisco San than stricter of was last York. cities remove had pandemic it the recall, New lockdowns one And mandates.

So return naturally, New office slower moved their to to York. compared plans much

a continues we served have the market, record pace. job the as and San as a funding not about at restrictions prospects office Francisco are long-term worried medium is robust, and VC market's headwind for these near-term growth While

Looking at dynamics the in portfolio, markets. current own are our seeing our reinforce our we reported results

business. results positive this leasing was York. about XX% New of of represents New Our York XX% were as our quarter portfolio our in this by driven it overall quarter's

a down considerably is Trophy Class theme assets. was X.X%. as flight up for a And who landlords Class notable shift and One own remarkable well This such our both same-store occupancy are portfolio in products. X.X%, points. points, markets, to our NOI and XX basis A York Brand new quality. extremely however, up portfolio was that is New bodes and been Armand, than leased buildings manage have was basis consistent a New was XX buildings While B up while performing that in towards better cash invested York

employees. are continue to operated, well for benefit well market expect from well environmentally the tenants as phenomenon and in buildings We amenitized to conscious located, this seeking their

are see beginning New to we an uptake transaction in activity the Turning market, in to York.

although high-quality be strong transaction York, by highlighting few of New Trophy roughly Pricing assets driven a the to quarter continues importance for and X it the A first The of large Class assets in was market. saw volume office CBD markets. and billion the the real investors appetite is to office strong is Class of to assets historical sentiment desirable future A a trigger of returning indicator acquisitions on estate The office on that pull in norms. rising

we part, disciplined our approach have maintained to our continue a and For always monitor markets capital carefully. the with

continued a million the flagship significant as to for market in recently general. completed simultaneously location Broadway, joint that and a testament years, closed leased acquisition. for XXX% $XXX.X The square by commitment Square. been have of commitment was previously foot heart we during opportunistic the The improve mortgage as this attraction to extended retail XXXX Mars a We World properties venture quarter we the We the of a Times always Times by was with value in acquisition long-term M&Ms the announced price and resilience New of Square the Mars with purchase condominium see and as and iconic on loans approach a XX this of to Mars York space. million the the XX,XXX $XX including

X% serve the who San Francisco asset is Our another remaining an the and will of partner as own in the joint manager. XX% own and asset, partner existing will we venture here,

quarter, we sustainability advanced initiatives. During the our also

increasingly the and to our Our their to current are owners our critical tenants in are partner as sustainability program, that plan especially values. initiatives environment looking are embedded leasing into business share with

efficiency entire recall, as XXX% terms is top have now portfolio certified we in As signifying our assets XX% energy gold perform certifications. and a nationwide that XXXX labels platinum, the style energy that of energy we achieved across the office our We by or with EPA. labels lead, portfolio, [Indiscernible] within have

to a sustainability to lead gold improve. Sutter April, San that highest certified Street, a achievement. commitment XXXX earned as platinum and and push In was announced XXX we we Francisco's Our is scoring building lead project proud to in recognized undeniable status continue [Indiscernible]

As has the since been the pandemic began. case

We positioned allocate which maintain for and term. quarter, end billion our the continue portfolio to sufficient of proven long the to of to ability Trophy capital. amounts about We stable the our with assets remain well X.X Liquidity, at

up me be Let by goals wrap continued to saying clear. operating

focus manner. primary safe space a call our will in the turn Our of on and the is healthy I available up lease that, our Peter. tenants the With to and of reintegration

Peter Brindley

good Thanks, and morning. Albert,

first the weighted feet XXX,XXX a leased approximately square for we lease During quarter, average X.X years. of term

leased Fung by transactions was Our at XXX,XXX the Din lease feet wide quarter-over-quarter. and base At new XX.X% rate mentioned the to expectation leases signed at Avenue floors the highlighted Hilton down event we leasing with quarter on of space, large The in these the during New for the Tai significant activity basis return Hilton Broadway, quarter renewal a two Americas. with utilizes points of events. XXXX the share at large-scale XXXX square our for most first XX reinforcing end of the The two portfolio previously long-term floors a quarter was long-term of York. occupancy

As strategy -risk ongoing -lease lease expiring look with to remaining and lease pre XXXX, of at our annum expirations our future we share approximately per manageable X.X% direct are a ahead, result space de through role.

benefits return and York. activity to accelerate, interest real quality the leasing occurred the March the office, our space resulting million in continues quality the commitments. consecutive the to in quarter only of total Turning second flight employees seeking is market quarter. all Tenants the quality Midtown's quarterly compel has leasing square activity the month short activity since an person. XX% working significant are during drive modest more first Renewal resulted of during below ' be well-located leasing term estate to the in of Class than markets, highest quality to New the feet in estate to more are indication activity excluding together high who their as of A their contributing as momentum five-year when square the of this renewals the tenant discerning XXX,XXX to activity Midtown's companies shift feet, trend activity A X.X realized portion renewals, enhance more quarter of bar gain to of continues office the to feet, Tenants excess in and elevated returning that the Midtown first raise the tenant increasing million services QX particularly XX% to ever in third quarter's can to high a and that real X touring people in of underway. reached are square desire from new continues was to Despite for quarterly recovery availability buildings. XXXX. leasing are Financial long-term average before, leasing approximately industry market, to that rate, Midtown's of direct continues quarter, improve during

Sixth to the more the We of any but where largest market, points in market, lowest XXXX of the maintain is to Midtown the than of we Avenue rate below availability in to XXX our to market our have rate. sub Midtown only assets, activity quality the at at Avenue strength basis share the continue availability Sixth attract our not broader to which is of attributable also Americas. XX.X%, sub the availability continues which of fair Avenue

XXXX the significant at world in of resonate welcome to offering large large continue terrace, the center includes center on be base of efficient tenant, a possibility Avenue soon Our prospective outdoor the amenity a with a tenants. all foot which a tenant, and class Americas X,XXX to the square of dedicated prominent for floors, building, branding, and avenue

you tenants with updating and are the XXXX our We Americas. look continued on forward progress stages various several to at of at discussions Avenue of

currently Our year-over-year. basis basis up same-store portfolio New leased and XX.X% on XX basis XXX share, at is quarter-over-quarter up points a York points

weighted years, XXXX. term quarter, we a leased average serve reduce than square which role XXX,XXX X.X to much first more XXXX and the lease of feet During in of at

at Our approximately feet X.X% feet XX,XXX June will this which begin Street, its New at square in York year. which share approximately XX XXX,XXX rolling share of in Wall includes XXXX, portfolio redevelopment has or at square

Looking further through X.X% lease XXXX. our annum York share out, overall at with expiring New per is manageable expiration in profile

San Turning to Francisco. now

drive increased all developments that While quarter, utilization was plans, quarter, activity San based key lifted to first recent were it leasing companies will their tenant announced mandate San during during Francisco which mask contributed office an was and activity demand. in forward. going there increase many The statewide resulted the Francisco's as of muted and in leasing return several the to

trend capital square completed to XX XX through driver billion in and elevated Subleased 's more in feet San than view remains the for in XXXX continue deals $XX but of and on venture key availability of companies based high strong. the demand San trophy going XXXX. capital was the San The remains share. to is for robust. a down in in quality raised first for attract same-store to to San excess market companies end, capital three Francisco. funding XX.X Francisco venture forward At quarter Venture San XX,XXX that Francisco backed more particularly accounted addition, remains a will months capital for Similar quarter an XX% in New continues of XX.X% XXXX. fourth leased Francisco significant a Francisco all-time than gain In York declined has consecutive portfolio XXXX, remains momentum economics, having billion assets our in space assets and at basis raised year-over-year. and be flight tight premier

rents of square at XX,XXX $XXX a During term leased X.X square initial years of per average weighted the quarter, foot. with approximately first feet we approximately

or XXXX. X.X% feet approximately square has portfolio rolling Francisco San share XX,XXX in at Our

our profile Looking annum further XXXX. at share with through per lease X.X% San manageable overall in expiring ahead, is expiration Francisco

positioned Our results. portfolio call turn San current was summary, With the will discuss through to Wilbur, well will I Francisco environment. that over the who financial the manage to

Wilbur Paes

you, reported consensus estimates. of of core share, Yesterday, $X.XX ahead we Thank $X.XX Peter. per FFO

income, results include which growth strong a retail about determination by $X.XX driven from York of per $X.X portfolio, grew share grew our Our tenant. which by X.X%. NOI, the Same-store first-quarter New income and termination was cash by or a X.X% million excludes

X.X foot XXX,XXX During for numbers, quarter's of had average a +X.X% Mark-to-markets to square of base at have GAAP mark-to-markets flat average leases per quarter's per second-generation mentioned, renewal on second-generation at and covering rent slightly excluding weighted weighted Peter quarter, $XX.XX space square average the we attributable feet disproportionate floors and space and XX on weighted term GAAP this a Hilton, for rent impact of first of two starting years. XXX,XXX were would of cash flat respectively. Avenue it basically executed $XX.XX mark-to-markets a square cash basis lower starting roughly square respectively. negative Americas, to been And as starting The a the a this this with basis would was on of feet represented +X% current have on the average majority were and largely XXXX weighted XX,XXX foot foot which and rents a lease, space. been lease so square and

of $X.XX our XXXX we first-quarter which FFO per the recognized a quarter, for first from interest is portfolio the rate core year, core minute are FFO ranging by outlook $X.XX at Based $X.XX termination raising spend expect of $X.XX Let on increase We comprised per income operations, guidance. from me the offset at on partially core following: share $X.XX with guidance midpoint our midpoint. our $X.XX variable from at $X.XX in results on we the and $X.XX lease the by better-than-expected in expense debt. This share between remainder now the or and this midpoint. end to FFO higher

growth these expect We quarter notwithstanding ahead X%, between that continue expectations. and our results Same to of trending are to Store X% first Cash be NOI

As comps half of we tougher the in will year. contending with the second be

X.X% same be we growth the not commencements we On the quarter expectations lagging that rent X.X%, expect year expect NOI line token, are from to to straight and our benefit progresses. same-store higher GAAP, as first these withstanding results between as

XX% a in billion $XXX $XXX Liquidity, revolving and of at our sheet. capacity debt our a $X.X is of X.X% and maturity rate and quarter-end with interest The and our of floating Outstanding million is cash X.X average cash rate equivalents credit was debt to comprised has of of a interest X.XX%. a balance ended weighted average weighted of average remaining quarter weighted facility. at rate of weighted has $X.XX fixed X.XX%. We under average and the Turning XX% interest years. of billion million

debt maturing of X% XXXX. no of maturing and have We our in debt only XXXX in share

February by Lastly, from XX% and our million. we which increased investor schedule now our updated and have investor sits deck at rent, our of free $XX.X deck

deck at the our Our can on Operator, lines With found that, questions. website be please for www.pgre.com. open investor

Operator

Thank you.

be session. now question-and-answer conducting Instructions]. will [Operator a We

with from comes Sakwa Evercore. question Steve first Your

Steve Sakwa

new I you on bid, can these of Albert, I come the steps. and morning. and stocks have Good detail kind of things but and thought think where are how just you first rates? curious Thanks. that see try alternatives where about strategic up the between And that or board you what there and some you doing maybe Monarch is to don't much sort you into how the the gap of sort have go know guess I'm and close out of

Wilbur Paes

and Our that that of things for Steve, I of question if these very ask thought kind you -- kinds takes question it's you, Thank a Okay. really seriously. board would

And the future. my doing in conclusion straightforward and the answer came That's do about think as figures the the portfolio it's conclusion also we and board had frank a lot too the because is have very this the our operations to the that's recall to point again, to on not engage increase and and so, meetings and public, work to in that. in financial very we been of on that's our value speculate that in And we to had right discussion. this time we doing you and unanimously why leasing And at that and might we're at value the cycle. on the XX upfront, did we case a this We've early came have and this required updated open time. the we company they with been Monarch strategy. to comment really think I I to consistently situation. what going Inboard advisors before, We review months is over

Steve Sakwa

are is Barclays, my the in Okay. and they've that think for Clifford new got know now working still Chance, I in backfilling on 'XX, Thanks. but on maybe leasing. the signed understanding locations. Peter you've finalizing guys one definitively you And I of

So, I that maybe think you. backfill for a bigger

just there. share a upcoming as believe Thanks. And you part then I talk expiration of large you're 'XX. I'm So, could lease for you any thoughts And a wondering well. expiration is about can tour I'm if just if seeing in that the curious Uber early what

Peter Brindley

start making that We progress Barclays like really feel Steve, nice with we're block. Sure. I'll XXXX. on

that floor. progress we're feet fact, we now and another to on advanced they're floor. negotiations In each square you on full XX,XXX for look forward in updating Recall, our

think do have it be just we is that of tenants tenants. XXX,XXX feet, feet the expect which what in represents would started floor referring types Beyond In the alone, floors, significant with now remaining progress. you square We're when dynamic square at seeing and Paramount's many that portfolio, XXX,XXX activity cases point, that three call I'm credit other the case that will in expansion. on we obviously to worthy we

the discussions types are those that we're So of having. now

shows itself it relates Street. The It's a all the building. As as XX West building has in of attributes beautifully, as a good to new trophy construction is. location XXnd there

for ultimately whatever have the and it go feel referred will, that the beyond in on several if are that me tenants said, And is that say Uber XXXX. to are having we it's have via that happens point we attracted prospective of this of with feet about is inquiring positioned well about demand. too tenants you block in opportunity in with to we this building May square that the number relative is That So, those current are nice to. Center, market I've activity suffice anything soon point optimistic some located, we proposals. now at availability rolls that how just to; some to discussions nice a but now attributes are at Clifford, extremely there you activity At The space already XXX,XXX circling Market XXXX.

Steve Sakwa

just yield. then maybe one I'll And follow-up and

time space, On be rents the back? you the space the maybe would plus would effect the the you're or they the deal versus maybe others, working you thought net getting rent Barclays at how today that compare you the of where

Peter Brindley

we're I think economics. the there right actually on

an we floors. soon elevated I held well but fine. we've just for center firm be are building. that is in also these The have that slightly amenity think we'll building we know will Rents think concessions think There's located. done

I'm are those to done to so this we've of are now types sometime. we that for what And economics things referring on that had the that expected now deal ensure the

Steve Sakwa

me. Thanks. Great. it That's for

Peter Brindley

Steve. Thanks,

Operator

is Mizuho. question Malhotra Vikram Next with

Vikram Malhotra

Thanks so the much question. for taking

on activity wondering leasing. increase this just the quarter question can maybe and that pretty gave quarter, this the specific And maybe little on actually what maybe you in of pipeline. close all the think your add I'm on you've pipeline, where solid pipeline, Just building. last finish last the the occupancy outlined close around the terms more bit more through heavy around a if is in attributes Peter, of you term and Obviously, you lifted. on you any near can to line confidence terms what in to the color

lease-up If just more to we a unpack confidence get just you little six bit next the it can over trajectory the XX so months. around call it

Peter Brindley

but predicted Vikram, executed know The years. did us square as last very good million leasing is question, year. a a on since a now couple We you has pretty this This year. forecasted. team it's and good for feet pipeline of always

is in of with in feet. are another tenants, And square negotiation various this pipeline the feet are potential for million is what discussion square talking million in the We and we stages and forecasting year.

in New of a You ago. years similar to We the It takes on York, larger it larger longer, know long leases. had discussions takes just these execute sometimes time leases. couple especially

to predict but it's achieve confident we So, guidance. our hard to very are very quarter-by-quarter,

Vikram Malhotra

rates? San the Okay. office And any your cap in just any conversations Fair Francisco? investors potential in on and thoughts given just or your fund What's the appetite demand for with Europe. in the you rates, move in on enough. partners overall New York other U.S. maybe just Albert, just maybe from sticking move properties versus the relative with private

Albert Behler

situation I like the are XXXX the quarter was capital. point equity are -- get would Broadway, for And is really, which opportunistic who that is for income current San and safe, in invested say And New York be pretty kind am at. producing because was point, relative capital investors San And more significant in. like this paper But is to -- bit The convinced opportunity we talk In as advantage very great like looking a long Well, probably a flow. market, something closed of you will asset would little to cap than will currently a transaction. think the of home. to soon. on looking the at would as personally this Francisco. come debt of wanted core changes on at looking looking you're very, the At really at the what they who us good with to equity debt amount is of on an there those cash-flowing rates investors that would most that capital who that you time I have term in and long-term investors we more that's the it Francisco really market some don't market I a a take depends pocket see that cash changing. this are really that investors see change

Vikram Malhotra

have quarter. Okay, one you higher kept then the I this And estimates you income the reduced $XX straight-lining had it, million the forward. if see have one you, of for fee income but were going did just sort same you and your million the color thanks last to fee to $XX that for guidance have Wilbur probably would at in

and -- in that two from the quarter that guide, just have this any the fees drove second you questions. recent higher number what the So JV? what retail closed, deal included you One,

Wilbur Paes

that relative Vikram, range quarter to when fees, the we provided that your point, to initially fee the And to higher and transaction if recognized primarily income closed. to last in that back year And going was that to I Sure. income retail because we were question because for unpack was happened you of highlight is guidance did transaction. and go first that be that all fee

your be relative for year, there hence the midpoint in there some QX you change. guidance, to provided, overall would the and straight-lined acceleration guidance have was So, the our quarters, full upcoming was mean not you're into deceleration right, and of that number some income we baked the but if fee did it should in the

Vikram Malhotra

so thanks Great, much.

Wilbur Paes

Sure.

Albert Behler

Thanks. Vikram.

Operator

Morgan Kamdem question, Next Ronald with Stanley.

Ronald Kamdem

we quarter. some a just this total there should about XX think CapEx, any the year? the off front and couple quick run or rest we that starting in the in right different Is for of about year? just coming quarter, redevelopment ones, on Is put great CapEx project that think the really rate for million that the this the Hey, new with of thing should XX.X disclosure, on then CapEx and or CapEx about

Wilbur Paes

because So, Ron, you're on I'll fluctuations, the to could the timing tell you. you this, From spend it's that's done TIs in supplemental, referring they the have be basis. quarter-to-quarter, CapEx of schedule cash a for and what

look our consistent portfolio. you for CapEx had appropriate rate. if fairly amount year-over-year, in we've run us an a But to hard that's So, it's say, of

tend a quarter-to-quarter stay So, from I metrics, at away it to year-over-year basis. from would look but

Ronald Kamdem

XX% about has which to into How Got of that raise guys we been thinking just buybacks, hit the Maybe how marry in then the with the it. commentary what was quarter. that sort thinking think that? allocations, you're just some on And want helpful. the That's -- dividend, past. the saw and which on about should you capital have in done

Albert Behler

this pandemic precaution dividend and reduced over time. tremendous You was know the that during the we our at

give at We I that have existing have flow tenants we carefully managed We well on And we line. and our credit you the unused team. very that high as to the see sheet to know a close the are million $XXX balance cash cash to my and we as have capital an leasing from capital monitoring and also level. kudos

under the I that think top payments have we the our contracts end on of performed peer group. we the in

a basis That's quarterly feel or buyback at on board the comfortable basis. that with dividends. quarterly reviewing the increase are and So, the on whether we do do decides a we what we level, to that dividend something board

Wilbur Paes

exploration the the in when two of Ron, and looked it you see on midst on then largest when was was Td Yes. Barclays dividend only hours the system coming was would at that of your in was point we $XX it own and heels the from pandemic building I sizable where exploration million the had reduced, of Bank the a you also a XXX% tenant’s out floor.

that out plan, of past ample we've well growth obviously run quarter. income, business what dividend board caution and as as this done that's in as the started the and cash So the our taxable look abundance to gave and of on an execute as the rate increase at the flow comfort was to

Ronald Kamdem

just my the terms about on how trending other sort you relative legal services, the maybe forth, utilization last stuff of comment of sort And one, and so thanks. industry in Great. they office types are thinking to the portfolio, in and can of tenants just

Peter Brindley

Hi utilization. Ron, firm it in firm. I this terms to from varies of would point At Peter, say it's,

think seeking to throughout it interest, firm theme order industry So, law renewed it's a we've a other law number I in it's seems from hard as specific. that estate common as say. to will I of a seen say really, firm, retain I utilization well. real of quality to from law But terms there's firms recruit and in relate to from

Albert Behler

least you to long-term of we our most and you the the office As have talked lot in they're and at the the the successful be an that law tenants, firm of to realizing, tenants out that of that have work office is additional all comment, one, a the time. to especially and model model

of and their but Some things done together, a can lot alternative know being of they in being that business long-term their associates being collaborative. of ways, there, growth is together, working from coming the get

Ronald Kamdem

Thanks. me. for it That's Right.

Albert Behler

you. Thank

Operator

Thank you.

Heck Next question, Blaine Wells Fargo. with

Blaine Heck

was to Good but leases signed morning. million a million in yet Is to referred anything the in from Great. there this remarks, at Can quarter, and your not Hilton or during million XXXX drivers significant biggest changed you through us the NOI incremental $XX just $XX the stats? kind there you see pretty quarter. last have commenced guys it walk leases, from you in the now cube jump Thanks. the stands else Wilbur, of just was that increase? of that $XX

Wilbur Paes

San really it's our No, Francisco driven by sure. I portfolio. mean,

in One rent leased an that's that where Francisco pre sizable occupied, that that there now San kick and occupancy Street Front and because a guess, -leased they difference was or tenant, San largest in the Republic that's saw some the free taken If moved somebody, was out I and have starts the expiring there's you a deal that namely, at and and gap tenant space in what's the driving to had Francisco First between number.

Blaine Heck

Okay. That's helpful.

JV. But just just retail just question you thoughts three to going Broadway? about great bit forward, maybe Can that'd talk around your city decision it's for XXXX little in purchase town, the Second at maybe more helpful. property know I a your the Albert. the be

Wilbur Paes

Generally, we very in are careful New retail York. street with

we an exposure And unusual And years. seller We this have opportunity. this very many many, since was -- the with a limited ourselves. had relationship

a know income, that or very we the it on was focusing this of in it the and good so, will relationship. had that was the relationship. done investor our long small what term. stable, shareholders’ means we signage these And in be whom with underwriting. -- about opportunity that And it's will And very be great very the interested quite growing asset-light, be investments, flow for an we're very now shareholders, in trended our term, we was from second proactive assets. could past side of very operations And who on have And have very kind income. attractive And we and an excited returns lease limited cash deal, income was in being equity our for for develop and long and investments us as the the investor we really cash to towards well also as and

Albert Behler

at but not retail is in standing own investment we its was looked a on unusual. format, this of kind Normally, this have would very

I street New think already. back; see you retail market come of the it certain will in parts York can

tourism around you well as is back. Midtown, business Downtown If as walk in the

lot the If foreign streets, you walk lately. around hear you a of languages, especially

the come definitely that's back over for I not think a years, dead couple not and and assets the So, business. is the of not future. street of think but last retail some I sure street be will the sky-high retail It rents definitely that might is commanded dead

Blaine Heck

Got it. Thanks, guys.

Albert Behler

you. Thank

Operator

remarks. will over Albert Behler the I closing for turn to now you. call Thank

Albert Behler

continued We when joining look really progress our do update all our us Thank second we you to on providing for forward an Goodbye. today. results. report quarter

Operator

This concludes today's teleconference.

thank participation. at for you your lines time, your and this disconnect may You

Paramount (PGRE) 28 Apr 222022 Q1 Earnings call transcript