BDN - Earnings call transcript Q2 2019 | Brandywine Realty Trust

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Operator

Good day, ladies and gentlemen, and welcome to the Brandywine Realty Trust Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

I would now like to introduce your host for today's conference, Jerry Sweeney, President and CEO. Please go ahead.

Jerry Sweeney

Chris, thank you. thank earnings for call. and second in everyone, XXXX quarter morning, you participating all our Good Dan President On are Tom Financial Executive Operations; Officer. George call Wirth, Johnstone, our today's with President our Vice me, our Executive President and Officer; Chief Accounting and as Vice usual, Palazzo, and Vice Chief of

Prior forward-looking law. meaning the federal securities statements certain of discussed our during information beginning, within to call constitute may the

cannot based we assurance believe in reflected anticipated reasonable will that give Although, we results these statements the on assumptions, are estimates be achieved.

that information on as impact further and please file For results, recent SEC. reference most press factors quarterly well could as the our we that with release, anticipated reports annual our our

second will be and update, answer that, quarter business you plan We then a results. and provide XXXX I results will available a are in great our and the Tom shape, of George, Dan after after may And to our synopsis Tom, have. financial questions of brief any review

The very straightforward. business plan is

We costs, space capital at plan of continue effect business conditions to rental controlling net by of lease advantage our of rents positive and to meeting increasing mark-to-market objectives. spreads all market delivering strong take

and look to more 'XX, market accelerate respond as active and development. we into land client To do plan growth, forward earnings and XXXX place to demand we to

accomplish development Sources or targets. funding of development sales large Yards. balance and like sheet undertakings, capital dilutive able our on will earnings include JVs Schuylkill to proceeds anticipate from our sales appropriately timed needs selective asset exceeding asset We without being

existing feet negotiations. advanced of our XXX,XXX ahead on feet, XXXX, X.X million at revenue $XX leasing inventory last in target square million currently pace looking almost XX% square year's of done and including is stages our And we're pipeline on spec

notice we XX%. retention our to increased projected You'll XXXX rate that have

mark-to-market of GAAP to range a previous to to our XX% increased XX% current X% range range from the also XX%. have We

with X.X% GAAP below leasing on second quarter, rate mark-to-market XX.X% target. of and rental the basis our For XX% positive cash a capital we've posted remaining

also We same cash same of X.X%. quarter second posted - store growth

our store rate year-to-date, that growth notice X.X%. is You'll same

our We store keeping property, end become a cash to of by range XXXX and Drive X% at same in XX% impacts our that because quarter. maintain redevelopment negatively are plan occupied that XXXX going will of the store original our to XXXX in we pool primarily XXX X%, approximately International are of large same business basis and third itself points. the

Austin, Other X%, store in remains our same represents Now, looking will XX% our revenues cash at year, by other negative store X% a mark-to-market. now strong. between store store only regions very outlook. of our this fueled same XX% which than X% range will our and of which a and XX% same same cash occupancy now and XX% contributes D.C., growth have revenues,

range growth The same Suburbs, will But X%, be that our our City, free the Pennsylvania Philadelphia University even quarter. store X%, Philadelphia the between and between between Macquarie in store store with same will XX% range combined year. and X% continued and X% burn percentage known with and of will rent, X% X% of lease in on out our the move based this in same off XXXX third CBD range

end that Based more give now and we our bottom will at Tom you $X.XX $X.XX. on progress that you'll we're on few a in to-date, excellent notice to FFO of to detail our top range raised end And moments. the the

net square our feet we've had percentage year. of over is XX%, XXX,XXX In Radnor, down this absorption so leasing

and achieve Radnor a a We leasing be occupied X% the mark-to-market. a by XX% and GAAP to realized these cash are end X% projecting to XXXX on of levels activity

remain the Greater strong. markets the Austin attraction sup, markets - to to from we continues our briefly outlined and as at guess both and benefit expansions. I and expect and in Austin corporate looking in-market Philadelphia

square of the and of million the for with year-over-year quarter year. past terms Bay X.X the increased Charlotte, the driving surpasses XXXX, in has second highly growth rental the Area, rents markets, XX first rent absorption asking very, months other Austin's favored half very well Atlanta over done X.X% X.X% tech feet of rate market And of growth. this so in effective

based quarter long-term Fed, the Cycle balance last further average Index, the evidenced five and heading that of growth the in XXXX. released X% a Dallas of 'XX economy which expanded ramp the Austin by into employment second up and in That's by the Austin for on continued by above Business the which indicators payroll X.X% over years, signals is the certainly

with for rents asking square also trophy-class the last the vacancy 'XX million from the rate XXXX, at has of lowered experiencing year, lowest of second rates Philadelphia placing quarter year top X among the over the over X% to MSAs the end XX has last feet of with largest Philadelphia jobs year-over-year. down of Philadelphia, increasing the grown and X.X% is absorption country. in at demand the strong X.X% vacancy X.X%

benefit science to and believe ranks to to which in state Philadelphia City the NIH this of take sector, University growth receiving by is Philadelphia New supported positioned from in advantage funding, close development emerging third behind nationally York. life well acceleration. XX% funding NIH With Schuylkill of Yards continues of billion only Boston we its all to $X our entire allocated funds Pennsylvania, and

by in which The very of to is on on both KPMG of forward And will redevelopment targeted on rollover managing Construction when remain budget. and end focused out. we time substantially move looking International our risk, is Drive XXXX at Tysons September, is exposure. completed the be

square feet exceeds lease finalizing of moving we're negotiations approximately targeting we're LOI feet XXXX a occupancy. pipeline building XXX,XXX report XXX,XXX an that pleased and the to for current in and back to lower Our prospect the with mid that's square

still excess targeted at stabilization increase return on X% of levels in capital are This our basis. representing generate on projecting Rent rents. plus fully XX% a XXs XX% will yield mid are in incremental expiring a range, loaded about we and over project

progress pre-leasing funds is Excellent design both on on being made our pipeline. and also development

looking stands XXX on X.X continues square million at projects on budget. and And specifically, feet. at pipeline development schedule on properties and Our some redevelopment

construction, commencing $XXX at will shy million, just feet. leasing Since this cost now bring and X.X% square the XXX,XXX project line by generating end scheduling XXXX. on yield of cost it of With approximately on stands pipeline we're to the

half next Bulletin the The will Building of and completed work renovation be has commenced year. first

leased Yards and a yield we X.X% itself in a on of amplify As points, did to couple on to We office the component brief you public full and Broadmoor, upon update but opened the XXth. remain our is provide clear Therapeutics free stabilization. officially will know, in Spark entire and June on park Schuylkill cost

Yards, Also, during the which the enable to use June, remaining proceed on of will of portions for we X.X received Schuylkill us entire mixed million development. square now final approval a feet

great we're that. with a accomplishment, was pleased very that So

this units, as our on partner, and Current done in sup, focus Tower outlined East is which XXX,XXX in Tower, retail design progressing. is feet really of of office-based conjunction West XXX we've which office consists a Work Gotham. also efforts, with about residential being primarily apartment on square parking, our

conjunction underway life with science And on dedicated a in that XXX,XXX to doing we're tower notably, partner, XXX,XXX Longfellow. our is life science planning

uses. feet XXX,XXX healthy, including is almost science Our leasing extremely life of square pipeline

Tower be Given a in we by on our market and West XXXX. residential position read partnership the to year-end of the with could go Gotham,

track million our several believe currently and for proposals. also at currently sourcing $XX Yards, our have remain we're Equity discussions level venture. joint financing requirement evaluating we our When a targeted in meet invested look equity strategy, should on Schuylkill financing we we over currently hold in XX% which development

in also Qualified is federal Yards Opportunity Schuylkill a before, mentioned state we've Zone. As and

position Looking planning retail two plan is efforts and project, also again, one at project sites, at Broadmoor where to start to least first to in at estate is be capital planning square underway in office market for well underway. briefly, half foot will which subject residential real marketing conditions, the Broadmoor include and of and XXXX. XXX,XXX We a

or XXXX on have any do the note built we still into not you'll As Plan Business acquisitions our sales page, plan. remaining

for are, to sales trajectory. generate other exploring our flow some cash asset uses harvest to both We and accelerate liquidity however, profit, growth

several our share We're opportunities, as on also current evaluating eye well add an as keeping values price.

expect expect to and line relatively would we be earnings-neutral growth. not did flow any As bottom cash we would last deployment we year, our accelerate - that

the 'XX is essentially to business close, plan up. So, wrapped

third We our call. are share focused very much we'll quarter on our on 'XX XXXX plan, business which

And with will results. that, to I'll Tom, provide who over our of turn an financial overview

Tom Wirth

Jerry. you, Thank

per second quarter income million share Our met net consensus which per million share, and $X.XX diluted totaled or diluted estimates. FFO $X.XX or totaled $XX.X $X.X

initial In range compared our midpoint and by addition, unchanged as per did guidance $X.XX and narrow $X.XX per share quarter guidance. first remained share to at we the

about quarter the second Some general observations results.

and we result full several gains $X.X quarter estimates sales first our of included million quarter half $X.X of land gains our outlined in As second land in million. will second the year about call, estimate

X.X ratios second Our quarter were and coverage charge X.X, fixed and interest respectively.

improved as to based metrics We our operating several increased on quarter first full Both compared metrics half XXXX. strong plan business in XXXX year results. second

times, debt $X approximate the and half anticipate the X.X While our our due anticipate million to XXXX the to down million, than EBITDA We higher to we was G&A primarily second did still year. coming of do increase the projected million. $XX during net metric to of expense timing expenditures. $XX.X G&A

the a $XX projected primarily joint income Looking following unconsolidated XXXX, of from than venture. is due some second the operating Portfolio we FFO forward total have incrementally million to about from our second the our million the $X.X million will and higher about $X.X quarter below joint ventures be lower third NOI quarter, and million $X contribution assumptions. quarter. were MAP to to general expect we

for quarter in and this $X second the quarter incremental with consistent of to Our to recognized during decrease stock timing the expense The compensation prior from expenses years. expected G&A due second and the is decrease expense million is $X.X lower quarter million. will third

to million with debt total our approximate of $XX approximate will fixed. $XX year expense XX% Interest full interest expense will million $XXX,XXX will interest about $XX and Capitalized million. being

Termination income million $X year. fee will quarter approximate and will $X.X fees the and the income, the the and for approximate $XX.X anticipate million Net other other for fees and termination about be about leasing for development to year management $X.X be million. million we

our $XX spend financing quarter one of quarter, have our likely venture have start development of on million the plan, for fourth unless Based balance plans. we planned development activity third currently no We for we for the and year. to not in the the or capital joint most

$XX create capital. We also revenue of revenue $XX of maintained. million have Capital, million

Radnor And cash with we've acquisition for line $XX land including also year the of to be also million the our development hand, our million $XX on end. million with expect we our at $XXX associated balance approximately And approximately of included UPenn.

our of And and ratio related range, that end debt will capital we continue to main and X.X based and divestitures, being in with spend. X.X several timing on potential to of earnings future EBITDA variable the activities net our increases EBITDA the be project to scope our higher development

and - and anticipate to the our GAV be In the year. addition, XXs the around we to coverage in be by remain low of anticipate our net we X.X fixed to X.X charge our to end debt interest

back now over I'll turn it to Jerry.

Jerry Sweeney

With the Thank you Tom. to Great, for much. that, floor open we're questions. delighted very

in a of and question we ask As that one limit do, time, interest always you follow-up. we Chris? yourself to

Operator

And our the first of Citi. Manny from Instructions] Korchman question [Operator line with comes

is now open. line Your

Manny Korchman

away on remind trends development Just selling you developments? existing that how projects rolling both the you in Can in you're this new of positive yield JVs the get sort of portfolio Philly, thinking higher the about on equity given to the conversation off and giving with that then stabilized us, had. rather about Austin think yields than into you able sort just higher

Jerry Sweeney

number market will the the additional I of range, team $XX in Sure, be think some I that. Not have as forward over move able deals ranging $XX Manny. will now. assets that large the really for tag a look, any to mean, to the in next but we and Tom couple sale we we where Company million that provide to years. million assets, liquidity

sell at those meet XXXX or what joint of our years. out spend very we're plan, to assets focused our targets venture over developing at as existing we on at the looking timing our looking could and we're development assets then as the next much we're And looking - certainly couple

perspective, upfront new equals income come once those in Company's new creating because in at operating X% the net those bringing - period the when investment X% their that yield for threshold, a tenanting the original Certainly, of flow - from assets tenants building. to the where time of assets cash - recognize online, the we capital

majority sale potential we all exception The We're retain ownership, a sources or Yards, Schuylkill development of other our it's that have make vast certainly projects. ownership, and can we those significant long very where about very one doing if at capital, conscious whether are complete is tenured we projects large talked everything of a scale. we sure not the ensure JV, of to in of that look to

as my comments, enable what stake. And are you proposals. And financing a incorporate maintain evaluating will significant proposals share promote I us in we with venture economic is developer that joint mentioned to those that I currently several all structures can significant

your dollar Obviously, performance lens point that subject on when price, cognizant we primarily can capital the of that deploy. we stock very size answers conditions, I look question those know developments not. highest we're through return to market if where generate ventures don't those or - a we our in the take current the that each at capital of on of

Manny Korchman

on projection commented XXXX you'd remarks, your CBD. your in Philly earlier for And

give rest or next should being either at us the about other call, markets You growers we next said outsized, positive earnings the that any think you'd year? but negative

George Johnstone

is there bought good that same metric the we become think the dynamic store Austin. the assets - in of XXXX I Manny, mean, similar additional out provide morning. assets year. seeing Remember to and in - same We're some This width venture on DRA next that Jerry two the Philadelphia. we'll George. information I gave

Operator

Feldman next Lynch. of with line question James from of Merrill the our America And comes Bank

Your now line is open.

James Feldman

the I about more hoping both you pipeline for talk Broadmoor was Schuylkill interest tenant Yards. and could and just leasing

Jerry Sweeney

projects, as very mentioned, to. Pipeline is healthy. Sure, Jamie. Happy both for I

seen in couple tenants, the the upswing range and continue to to foot fairly pipeline so think up Yards, XX,XXX I seeing there that a both companies. additional It's in out significant good a also it online next we're tenancies square from very over in XXX,XXX. of some grow demand coming science activity in the of life Schuylkill that and ranges for is mentioned market mix quarters. that For we

of Down on of looking the couple existing from the projected feet, of expansion the efforts tenants at XXX,XXX development requirements start first Broadmoor, building consists - in where Couple those marketing at square Austin. other a is there we have the about commenced Broadmoor requirements. in-market office are submarkets pipeline large with of of

early So, in we the very remain encouraged, it's of even terms of there. though demand depth

one place the a be the prospect broader the cities members across We audience I congested pool of do for drafting Austin that the of factor domain, base certainly that's of - of out at in also think country differentiating Austin. the Austin resonating some line at the did target obviously in most amenity us but terms expanding the mean, as recent off statistics rail a traffic. the Broadmoor to in that in came is seems of of reinforce

efforts get access look down section marketing we think of as certainly, our to accelerate. the continue market to that of mass the the transit start road, we will to So optionality appeal providing as broader

James Feldman

either you And of want then what before one you about start would how do think percent pre-leased you projects? those

Jerry Sweeney

of depending Schuylkill terms office XX% Broadmoor, targeting, But XX% in we're goes the is pre-lease. demand primarily upon XX% Yards the building in which kind to east and think again, we're I office. in tower XX% targeting development, between at range that the Well, where of for again,

James Feldman

then can an on And is Square going give just Commerce how you leasing and spaces there? progress the update

Jerry Sweeney

George... Okay.

George Johnstone

XX,XXX proposal on was it's far which floor square bank about issued a we’ve We've inquired XX,XXX tours of feet. is had feet, couple the square this from storeys square the again. six is Yes. each We've ranging upper dozen through issued bank. space. a feet. floor Jamie full that probably Largest two it. tenants probably in upper have Several Remember, being XX,XXX about thus inquiries, George XX proposals

Macquarie space stages, early back July. gives next So the

The timeline optimal that and look a in kind of we we XXXX see little Reliance close bit months how obviously not that we’re back I much appear out, just pipeline we similar we production think seeing Tysons, just before is at started on three down Philadelphia. when and that’s yet. XXXX as the when about LOI seen space we're fact where space that on that activity are of kind now similar in at pattern, a further XX to of look move the

Operator

line question KeyBanc the our Capital comes And of Markets. next from with Mailman Craig

open. now is line Your

Craig Mailman

Just are end by you north to circle want of year. of million to back, guys $XXX outline have going the the

timing good years keeping leverage of in guys You equity you balance maybe on were yourselves to with some mind, liquidity. I in dilution? guys in sense little the kind and days in bit with of give that know pretty past to I but of JVs just a about you fully cut kind that available expected know want alleviate some and that can little prices you give coming a hard these

Jerry Sweeney

I much of I short mentioned growth very view large we in successful able be we and And those term now couple capital a both on marketplace couple are I good City. quarters. assets goals. I we actually that over lengthy and consumers some getting on have be those in of to we will the response Yes, of Craig, of accomplishing pretty we’ll smaller slow some guess, would the hope as next I think think that as and

assets, Philadelphia venture the have underway joint next based its all in over We months. works the region, several do we’ll which see way a through on several that how discussions again primarily

all million as know, Schuylkill taking bulk a But as in terms we XXXX, we’re Yards recall, which total cost. look of of are most excluded projects, looking, think pipeline and more to our capital $XX development are should you in to the looking $XX million at range XXXX of those importantly I forward we’re we the

Those projects quarters. will to come nine seven online over

size. fairly sheet be will small quarter our the So, given their impact per balance

timing to asset both spend and sales working those folks ensure to the up sink that our use team the alluded in and funds, our range. dovetails of development the of at the target those so So asset very debt and are JVs have source EBITDA our together investment closer to we to sales development you expenditure do within with keep time of earlier as

Craig Mailman

guess, signed at for joint ventures trying late than it one like a XXXX to could I you’ve be significant you for a a just helpful. it’s that? I be about get That’s earlier to was of know, just talking been I quarters. couple or mean,

Jerry Sweeney

I happening and be of you could it XXXX to managing haven’t Yes, rolled which sheet XXXX earnings maintaining are that us in guidance but on still for again momentum looking things and governing a the are earlier, principles forward touched our we couple we levers. think balance

building So, development which as these busy that recoup ventures. think sales getting we’re liquidity timing joint on of starts, drive some will to be I the the pace outlet of will either from able or at

Craig Mailman

of of And then know and are you that ahead same-store so one the of --GAAP are are how the reconcile, in behind those on cash Tom, the the can on to year? I you guess, in half go GAAP, are drag the two the kind of the what’s do different pick back of reconcile, they there’s how half drag year, for kind quick you kind the one up things back I And you on guys ways? going get

Tom Wirth

Yes.

things. to guess well, going is couple I of I be GAAP think, the so -

in the GAAP so the Craig, I have things just office. some think three rent one happening that funding on side probably the cash there’s side, had expect we and we of - is that’s

a rent but free by stalling up off. So, A, there’s there leases see burn having B, rents their cash role, some we steps some do

Obviously GAAP numbers. GAAP already we’ve on factored those into side, the our

we back So, more side lets and take me enough we’re see leasing that. to same-store. see of leasing the the not on to just significantly the but - half affecting up affect more We year don’t what

the cash any been So, place. minimal forward, rents put already have this think GAAP we And I in the the really moving and have could leasing going up are do impact GAAPs it’s year.

Craig Mailman

should what same you question on how full-year year-to-date guess, kind look need the in the progress? the up of to the of we as at I on or And XXX points reporting pool for applicable, basis you're is I kind negative the they terms X% of guess one kind pick Great. the of GAAP. is,

Tom Wirth

update may basis. No. Those is are a pool when but on get we range that the the same quarterly pool. We that year-to-date

the as help So, as left that for we we will the up. see lease, the balance our the see occupancy GAAP catch certainly same-store year of going

its the on But from having the already free rent to the steps flat is pretty back the right not as on oppose are it the we as up. the store, to comes GAAP off occupancy half But being that burning the delta increase due of rents, much same - year cash and the side. will hit,

Operator

comes the with of John our line next question Guinee And Stifel. from

open. now is line Your

John Guinee

your inventory theory. Filling your land I page looking to little to am I on sheet. XX. looking balance am

that on value of already your I balance XXX million to million sheet million, you million, shows the think inventory value way it I spent Is shows XX land, your Schuylkill look think land right the you XX about Yards. that Yards? at of but XX mentioned million XXX Schuylkill the

Jerry Sweeney

for land the the vast down tower, East parcels as we prepaid full we ground we of term. West - is leases ground majority for the those when the and John, delta prepaid leases year XX the you which have took because

you hopefully that We additional detail So offline. pretty can provide closer. reconciles

John Guinee

And of to foot be and need growths development and in your a the then cost square in per hit East equity what JV do also achieve performers Broadmoor West you what tower capital? and and kind to your that would just about all attract bit little maybe rents talking

Jerry Sweeney

I the we for Yes. broad yet. - haven’t I budgets think published are mean we numbers

stack the the $XXX and number foot net were sure on But will that And and a the basis right triple per caveat delta. square in. So, I mid-XXs $XXX high all targeting make to the in XXs far. range want depending upon between so range we’re to the the be

John Guinee

Schuylkill Yards. That’s

Jerry Sweeney

correct. That’s Yes.

John Guinee

the a are less? or numbers little total Does bit Broadmoor same

Jerry Sweeney

overbuild pluck et low rents $XXX less. a on triple foot the all and structured we’re factoring Broadmoor cetera that the gain, is little $XXX net. in we’re XXs down be Broadmoor square the would to at targeting the

Operator

line Evercore ISI. And of our comes question the Steve Sakwa with from next

open. now is line Your

Steve Sakwa

IBM have update down of down sort large an some to kind the the development of and know of affect that heard a validation I just about been you talking on of of there. and kind I might situation kind do

any So, more you there on type. that residential any and parcel provide the comment on update can

Jerry Sweeney

am sorry, I Steve.

You first with question. of part the cut your off

Steve Sakwa

hear you me? can Sorry

Jerry Sweeney

hear I yes. I now, sorry. can you am

Steve Sakwa

about was consolidation building that any know question kind IBM. the kind was laid the might was new Sorry, project around residential sort secondly into had and Broadmoor? change potential them wondering you parcel update I I to of on of way talked if the anymore IBM. update just out. then And the of ultimately there on the timing at

Jerry Sweeney

have now. I you

way. consolidating in to in with inventory IBM option evaluate other is and the continue buildings, positive kind We continue existing into previous a long-term their option very new place as work in. their you of in renewing building and conversations in we’re constructive know one is They to options from

report. Broadmoor right no For development, other that as to and the encouraged their but news the no true visibility with our commitment think of that final there third is everyone conversations is combination, to now than yet accelerating I are definitive

we On the units. would be call forward. which planning is block other different XXX apartment square residential Block with planning two side, we XXX feet would A office be A Block is And would XXX,XXX which units apartment of XXX,XXX as that are several one - moving be along sites separate about one

partner. development a selected have residential We

partner. not have in the key will whether resolved that We of terms developer it an terms of equity simply financial yet or a

the - of landscape of context entire the in capital that land evaluating We’re Brandywine.

first and of one projecting XXXX. the are in least half the residential start start We at office

Steve Sakwa

just then kind incremental XX% just today. you're sort follow-up XXX know I seeing And demand of on of leased that about Colorado you’re the just

lease the Sort sort that that expected and of asset in you full your what of relative date? of to expectation have of to future up terms completion the

Jerry Sweeney

a we pipeline feet. square good well well very have deals million X.X a of over Yes,

got the we square So, good remaining coverage on footage.

with active We tenants. have advanced very several discussions

continue So, upward substantially the ability given our And certainly demand end of now. the rents we time be up seeing that move open year to next from the that leased lease. the expect fully the anchor we doors at project to we’re to would tenant by

Operator

Street next comes our Ismail And the Advisors. Green line of question from Daniel with

open. Your line now is

Daniel Ismail

a competitive is CBD. few potential these standpoint? with reports Schuylkill the in the from new of development - couple demand Yards any office Philadelphia There tenant few a of potential Are

Jerry Sweeney

in with we recognize that think I to be would and want anything would that as anything well. start market do our we competitive try

projects life Philadelphia. forward certainly, There of of of is there close science So in within rumors have within a have by towers put couple and competitors. that public the starting CBD both a been been couple suburbs private

So, always make present that’s efficiency be design to why competitive so marketplace. hard we we landscape economic on that the the very location anticipate a and will package that and we right sure and work tenant

Daniel Ismail

And appreciate the update the an market? growth on give to but updated rents guidance relative on you market, can same-store expectations portfolio to where stood

Jerry Sweeney

the catch end I am didn’t I Daniel that. sorry of tail

Daniel Ismail

Just current an update on - where in-place portfolio rents relative to market rents?

Jerry Sweeney

the with almost suburban Pennsylvania exception across board markets. few the entirely Really of

and but percentage X.X%. is below our Virginia, And market average markets in our about about below Houston Phil rents also below points probably market Crescent XX are X%. We on Northern we’re in-place probably then in are CBD

Operator

line Stifel. And of we do John have a follow-up question the Guinee from with

is open. line Your now

John Guinee

the building you And in office other move-outs business think I that and have ignore. KPMG earlier Jerry, aware going coming in Drive. the going on Macquarie? which should there your big you're else, had KPMG just talked you can't are just to persistent besides And be we International result move-outs to do these is list What about anything XX top selling asset. of we if redevelop

Jerry Sweeney

tenant end the to of business and another at pricing in some now that’s losing And or near so in on John are building. have get closing be the to is and our Plaza good Tysons next XXXX would building do a expect that year. month we we this sale term think one of able the we by I the the that out market for

immediate suburbs well deploy of where have necessarily places to not we’re as we next best evaluating where the We capital. rollover of a that couple but risk down smaller over as rollover couple the Pennsylvania are buildings have frankly the years mean I

versus those that to conclusion thing the the those sell assets to with to re-tenant. taken coming do We’re best time to is

of the that square a vintage so you base those XXX Conversely, or build a building. we narrow markets building, know as not be from Park window are efficient a be footprint, received space outdoor brand-new steady that building they local incorporating by we’ll will that good King property That called are things XXXXs building. have township foot which enmity well is XXX,XXX for split a lines all core, the approvals well. in demo Prussia the into to decided place the that and We bad we’ve to building

new building been Avenue like an there at So, - last of with that finally move great development ground piece yield. to was introducing two success we the a ago and of given building. a the square the First that tenant we leased the incur And re-densify - high we said we year that XXX the where market. the years had to cost at And approval building of we’ve we project that process a to then foot demo could example design that which another instead with XXX,XXX forward there completed on is sat fully sits constructed selling

to our year decided last XXX Road building whole our North forward CSL then we And We move redevelopment XXX where to completed Park. that we leased Gulph Behring.

we we we at take put amount based look return of alternative we generate take that here what can generate big deployment and that it is time quantitative qualitative the fare Can value the hard role is? we into value have capital anytime have of real a work So, and a we and it.

new lower strong bias We’re from pipeline like capital lot higher into forward producing fortunate lower dollars activity of pipeline. flow projects where we towards assets development yielding we’re potential really that very development cost our certainly good going with forward construction moving cash had a a

Operator

that And President conclude would further today's Sweeney, now question-and-answer turn to I any session. back you. the Thank to call CEO does like Jerry for remarks. and

Jerry Sweeney

enjoy guidance Great, our thank forward your for summer, you call. you And to later results with rest for the quarter of families. XXXX. introducing on enjoy this you. us we with for time the along third year Everyone updating Thank the everyone look joining

Operator

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

day. great disconnect all and may a You have everyone

Brandywine Realty Trust (BDN) 23 Jul 192019 Q2 Earnings call transcript