PSB - Earnings call transcript Q3 2021 | PS Business Parks, Inc.

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Operator

Good afternoon, and welcome to the PS Business Parks Third Quarter 2021 Earnings Results Conference Call and Webcast. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] It is now my pleasure to turn the floor over to Jeff Hedges, PSB’s Chief Financial Officer. Sir, you may begin.

Jeff Hedges

Good morning, everyone. joining investor the conference for PS quarter you Parks Business call. thank us third for XXXX And This is Jeff Hedges, Chief Financial Officer. With Chief Executive Chief our President Chandler; is Groves. our Trent Accounting me and Officer, Officer, today Mac and

Parks' forward-looking uncertainties, Before beyond forth subject than from those of which call, to of as of result other or materially this forward-looking or Parks control, are a differ we all future statements statements. such information, date PS obligation These this and included new statements any statements. begin, number everyone historical the forward-looking me set actual that conference many let or whether cause only forward-looking in speak are as no otherwise. statements, implied Business PS update results in forward-looking undertakes statements a fact by Business of conference events which remind statements could call. of All risks are to to of revise

information and about please refer For on and statements, on could company by annual reports filed including Exchange PS the with XX-Q our subsequent forward-looking risks the affect XX-K Commission, that additional Form report Securities Parks' to Form and Business and X-K. Form uncertainties the reports adversely

will can certain which will turn be is financial the measures found included Reconciliation our We to now provide non-GAAP supplement, Mac. of on also at GAAP and call release in measures. financial these I psbusinessparks.com. earnings non-GAAP over our to website press

Mac Chandler

and On I highlight and rundown accomplishments, and Parks update the quarter period of the this highlighted Welcome of increased quarter Robust provide To compared our NOI Business last sheet East. investment Cash additional Jeff. occupancy call, provide to gains with our third third thrilled the Good Same Jeff in growth will activity morning call. allocation. we our investor detail same were recent by quarter, to markets. Thank which growth. by will driver quarter capital afternoon balance XX.X% primary results, good on third and a those begin, present to you, rent are results, Park financial on an our XXXX NOI, PS year. today's the

year-over-year. increased occupancy quarter-end of basis XX.X%, points XXX Our

Our to of occupancy Same and XX.X% an Cash industrial the of to flourish with NOI portfolio continues average last year-to-date, for growth XX.X% compared Park year. quarter

square $X.XX attributable supported reconfigurations of Leasing X% growth Again, to XX.X% respectively. industrial a million the to respectively. QX rates. feet sequential and cash by per X% effective assets healthy compared in of rental higher increased rent costs and with to for is transaction quarter. net a XX.X% of effective Moving larger X.X%. increase we leased rent strategic and our this led way handful production, mainly increase QX, net Cash were square quarter The foot X as and the space

aspects, currently Now for turning our XXX,XXX to industrial park Port renewables. rent continues The On expectations multi-Tenant is our million. Dallas we in $XXX all and activity. growth park, a America, high square particularly to investment DFW September adjacent XX.X% meet acquired in to X, occupied foot and

approximately Approximately net the our sale the XXXX property. represents estimated $XX proceeds. We California. a of million America. realized Port San in this proceeds price into million NOI gross transaction couldn't Park be quarter-end, we the for with greater disposition stabilized that X.X%. Lusk of Business the are of XX sale forecasting put We been announced yield exchanged Diego, Subsequent happier of has than in perspective, to $XXX this To times,

of will the not sale that marketing are We've As to sale. little previously exchanged, previously the dividend a a communicated, year-end Jeff on are announced likely which will for the extent be later. special we paid touch by proceeds remainder

as expected seen. received three next We to advancing in Park and we Flex the very which Tech may feedback financials, from positive Royal property Our and to Colinas, early held-for-sale this market, plan have year. update process we've is moved an Las our the you Texas, provide

acquisitions parks value market through standards, that the particularly meet in to that platform. leasing add industrial us multi-tenant for allow our our operating and are We best-in-class

Moving year-end. to Freeport, our Due the our Dallas of executed XX,XXX projects. The it tracking and well. committed corporate industrial remainder development have interest development a lease leased building this building with in the week. is is XX% fully of our by to tracking another strong

Virginia units Boca for drywall in in Tyson's Our to deliver Construction due development and are proceedings first multi-family month. summer break next to on the development starts XXX-unit XXX of multi-tenant November. in Florida as at schedule aiming XXXX. Mile are development in ground and We is Brentford in Seattle The planned plan

turn Seattle, that are markets. XXX let's company. a announce we XX,XXX vacancy, to our pleased regional Now leased have our square In Business to technology we to a Park foot

quarter, Our industrial expansion. XX.X% average assets point in basis the well for third a to XXX are Seattle performing occupancy and sequential increased

an from demand fulfillment leading and drivers, Hayward in our strong Logistics have – to related in We the Bay in East recently we life of momentum are foot are In materials just was construction but increase We also letter increased negotiations firms Northern XXX,XXX quarter science lease see beginning. a Industrial building the companies. and for growth and square distribution the from average intent California, build. continues demand vacancy California market. occupancy industries of logistics, X.X% throughout and demand for signed Northern rent with the XX.X%.

from we mile California, demand, increased logistics last business in Southern to and For users smaller small diversity services. see

the of maintain an We are occupancy assets, XX% performance with the delighted industrial of our for quarter. which average

Third XX%. X.X%. was Retention at quarter growth was strong cash rent

demand primarily of in with vacancy. Flex third foot a In a the than expected County's is strong. occupancy portfolio average XX.X%, tenant move square the less for X% North exceptional Austin, In Austin. remains in out XX,XXX dropped Mid building to Texas, quarter to Our industrial industrial due

We the for releasing are evaluating several options space.

line in In occupancy, Dallas, ended we the in for quarter Washington XX.X%, Northern at which reported as as few In Maryland peak well, However, and a Metro, is portfolio employment coming growth market to XX.X% all-time Virginia continues at Suburban it quarters. continues for bullish occupancy we expect we by to in to it for and market QX population in are remain with rates do migration. low JLL. our the the down vacancy industrial perform and with

Our office ago. tours was there’s momentum with a up from portfolio are XX.X% year occupied Transwestern and XX% reporting

XXX,XXX per Since per Our square leasing XXXX production feet increased quarter. quarter. QX square XX,XXX between QX production average XXXX and then to has feet

levels, with the has suite our not pleased still are back investment make made us well. to we ready we We in but pre-pandemic The in activity. are increase positioned

deliver faster than cheaper competitors. space and many our in can As we cases,

to from Florida our wholesale due XX.X% Occupancy of in quarter. South all division to in to XX.X% demand. and continues lead logistics Finally, increased Florida strong markets distribution, QX last e-commerce our

all on drive which MICC both to Our rental continues rates will to are the Park highs. to tenant Jeff. now outperform local the of market Miami to call turn helping due I and expansions, demand time small over

Jeff Hedges

I’ll year. diluted from months Mac. financial with three the XX, $X.XX you, the ended ended FFO per X.X% million $XX.X September XX of was the $X.XX overview for representing and increase the was per September prior $XX.X share, stockholders allocable months begin an or results share, our core XXXX. for period million three nine an to income while same Thank common Net or in

per was year. and $X.XX September a nine months from core net ended $X.XX X.X% share per the income diluted the share, was XX, FFO For increase prior

Park growth weighted income attributable quarter was gains cash During of by attributable Same and Same million, X.X%, rental NOI portfolio $XX.X was driven occupancy XX.X% growth. our cash average was ago. the The for the prior Park operating in cash occupancy year. which from net from quarter, income Park XX.X%, in in was to up rate primarily year Same XX.X% to rental a increase the

occupancy Funds For to income $XXX.X representing cash X.X% Distribution FAD for and months in XX NOI the FAD Park September by $XX.X XX, year-to-date into million three ended for from months X.X%, prior from driven again resulting year. rental rate growth. bringing million or the a the increased rental September nine increase Available growth was cash Same XX% a increased

XX% NOI FAD to expenditures, for cash growth recurring from well-managed mentioned at previously continues Same NOI. the our to registered of benefit addition which portfolio Park In capital

the Turning credit $XX.X We facility with undrawn. remained now ended and cash of unrestricted to the our balance quarter million sheet.

redemption announced, preferred W plan issue no previously preferred And redeemed be we new to on will called shares all Series there November of those is series shares. As recently this time, for a At X. equity.

we of redemption a As W with sale to fund proceeds. Series cash intend and a the hand on Lusk portion

we that sale of in million earlier America Business $XXX last the net XX/XX of a Northern the will also Park million business the exchange East the Center two asset Monroe Port exchange disposition, for qualify and an in proceeds served the as against acquisition, for year. approximately park which to parks Virginia, Speaking $XX sold

remaining around exchange period find We’ll we time. special sale details a some potential will of for do X. proceeds on if we ability yearend. provide the disclosed, retain the opportunities, December this by all We as special additional update to a an pay will exchange relevant likely of with dividend previously of not But dividend or

call Lastly, record that, paid declared quarter. quarter Board in share the be per XX. XXXX in share now back to Mac. of our fourth stockholders quarterly of And I’ll we to I’ll third common December of a point an With to December on to the turn dividend recently out ordinary stockholders that XX paid dividend $X.XX of per the $X.XX on

Mac Chandler

with Thanks, I’d many will to flow an remarks. strategic XXXX. effective moment to allow and Jeff’s have our This with investor it you. Adeel Trenton, Jeff. that, developed our open prepared to say to any it’s January Earlier acknowledge Chief this to concludes give plan, we’ll EVP announced accomplish our and opportunities. contributions mitigate Today to and while Financial like say that potential PSB. as last accretive And net new and Jeff’s – And Khan will which Adeel, Jeff, questions. to disruption Officer for to thank is us goodbye, and joining we month, investment call soon too take goals, grow transition us be up source cash a continue orderly I XX,

Operator

our will Korchman [Operator question We from Citi. take with Emmanuel Instructions] first

Emmanuel Korchman

good things guys. and time portfolio uses be that and and maybe given dividend think sale, higher special the Hi creation sort how better value like it Mac, for use the is there it much whether a spending, part more of of getting about, you the opportunities? Lusk of morning, a that have or the to you matter or that are for of just second need proceeds best for question, looking success same limits assets are the

Mac Chandler

through sell Good in assets be on directly focus And to brought that. Manny. time. – someone such time supported would sector over is We would we’ve morning. value of entitlements of and strong to incredibly science it they spending value that of was our whether Head as is reinvestment to someone than we’re who identified, ourselves in I is part, And many, to of lot for what ability afford or But many know, somewhat on, somewhat we’re that Development to seen. a who’s say for remains to unprecedented. we partly the before. And entitled And and say, more else life pay the use up creating I we through emergence Seattle pay their you work the new Thanks, scheme things. years, can based in the that primarily going need something on

markets we And as own So where are markets fit meet might a that their that there. the needs opportunities looking to well. more many we that, our for assets, of

on would It’s other that I to opportunities. we’ve success and obviously, raised time we’ve enjoyed of increased potential it. the attention our So our say it’s

more that time answers spending your certainly more on but question, So time, only it. we’re

Emmanuel Korchman

please and go those, just now? if in a parks, in think you seen of like, have less flavor your flex right of do your the we tenants you some e-commerce from seen experiential shifts more past, more tenant about of industries those in carts types types leasing the leasing just I parks And users Thanks. have who’s any you, or the of you know two

Mac Chandler

Yes.

manufacturing too more there’s are a maybe times e-commerce is many small to logistics or segment. experiential think whole through we’re portfolio, – companies, I’d or if we say not a too growing whether I’m many shift be That’s in assembling our related be sold who tenants – really care I sure traditional, to definitely handful. that goods distribution. anything not call the

industrials the always think I is too, flex that all I way. we’re – time But shifting with shifting our continuing portfolio think certainly is and that to So direction go that as more been well. way

dries vacancy in As markets. up most

alternative. look as at an pure seen industrial tenant we’ve interesting our of So flex more product a

there markets so it the industrial. play for cases and build amount pure we out, of more some are that’s looking And the of where a make office because may what reduce

Emmanuel Korchman

much. Thanks very

Operator

from the take We’ll Craig next Mailman KeyBanc Capital. question with

Craig Mailman

pipeline, kind here. want Hey low can on and the redeploy willingness kind fact to that, just just of to that you from given of curious guys, your that very a potential robustness the stretch acquisition maybe of follow-up kind the of proceeds the Lusk cost little – have you essentially bit,

Mac Chandler

Hi, which our now really that really expires, to December a we’re XX/XX, factor roughly Yes. a limiting have with nothing – really factor, Craig. of Part appetite. there’s we timing just has do that, collect we because with It’s the shot is X.

exchange, a don’t anything we So we’re mode. exchange by then don’t dividend we if in special

– would pursuing are those one close we of I I the that redeployed a that assets less sales half proceeds net there’s under So the this are than how But at couple to would to say ability given stage, that pursuing, we’re for, we’re that be but timing. we XX/XX. contract will – that be one meet have XX/X, a through

Craig Mailman

Right.

you a less our so about see let’s So acquisition. in – that’s

Mac Chandler

less Yes, $XXX a million. than

Craig Mailman

Okay.

Mac Chandler

pursuing we we intend understand the we just couple But the do for the our So that. want assets couple that that and do cost obviously can certainly that we And meet close so. long-term. of capital, assets attractiveness not a but pursuing, of to on there’s a standards, yield, that we’re for extent we’re the

Craig Mailman

Okay.

that $XXX to that’s So of you kind million, that less XX% mark? one after to another get that be need the to bit one contract would a close would or under than little

Mac Chandler

of No, the a million. aggregate is that the really two – $XXX less under

Craig Mailman

Okay.

Jeff Hedges

this is And hey Craig, Jeff.

Just already to $XX America I remind has said little about been against the you as proceeds over a of Port million applied acquisition. the

So portion been that has exchanged.

Craig Mailman

of the the million Right. half incremental to This get of $XXX an you would be kind X/XX. to

Mac Chandler

in redemption but W That’s at higher not the investment, a looking, quite a marketplace in the And which right. the of it’s also find in Yes. yield a investment today. Series is you’d new at sense

Craig Mailman

Okay.

wage… probability So

Mac Chandler

So cash use of applied funds. for accretive that an is certainly

Craig Mailman

probably XXX% top $XX Right. another a wage somewhere of million on on XX/XX million I’m just getting $XXX on probability that of and dividend that. special kind

Mac Chandler

exchange Craig, those And on to the more as remainder details of thinking going about way. our opportunity – said, you’re directionally think on X, it more right I on I around provide December clarity when or I this have we’re to the we proceeds.

Craig Mailman

Port yield said in kind on stabilized that as of yield quickly America, we’re just then good you what’s And gap modeling put Okay. I a know X.X% to that that initially.

Jeff Hedges

Jeff again. Hey Craig, it’s

X.XX For of time, closer probably X up to picking to period next the and X X interim that we’d say year.

Craig Mailman

Okay. gap basis. On a

Jeff Hedges

Yes. three-year two between reach now three when years. and stabilization we now be about to clear, to in Between

Craig Mailman

to signed one give another you sense can us a market there? the Okay. the Then on at LOI potential mark of Hayward,

Mac Chandler

– a tenant. a – I a we’ve – to that and communicate that, between there’s materials we is into on quite it’s many just us we’ve ready some building not you, the Who’s lot us a, tenant of that that. the tenant And have uses tell we application We’re it’s… too technology to with details we’re been started, because confidentiality manufacturer But entered We’ve will and started just the of should proceed, we’ve pleased line we’re last quarters pursuing very our what make, in the it’s further as that. it’s couple – we materials. building their and with but over get transaction ready it and expectations in of

Craig Mailman

expectations? of me Could Okay. you your remind

Mac Chandler

been more year. Well, vacant I because qualify to will tell it vacant have rent you, it’s going but as lease this than it’s presuming for a for not sign, will growth, been

Craig Mailman

vacant. it, you not reporting wiggling it’s because are guys So out XX-month of

Mac Chandler

turning just it’s it’s I premature. I got mean – we obviously, Well, little we a once lease. And started can’t close literally very we’re – before. a – not

little here. a we’re We jeopardize maybe to deal So don’t cautious want this making. for

Craig Mailman

vacancy, then for or if few quick full to it’s quarters? be a fair. one. Austin and be a much said big down one didn’t the just going That’s last that down is I year And it drag earnings should that would hear be you how how of

Mac Chandler

down And was be square of a gave that’ll ago. XX,XXX This planned state few about some was it It’s They Texas. the for feet. notice time us quarters.

Craig Mailman

the was the quarter impact basis? What on

Mac Chandler

precise I you say a prorated in don’t market a have expect we’ve on pretty to to experienced perspective you what I look drag be. good and proxy the awesome for basis. that. at Craig, give a figure probably from an would could on That’s what would we NOI the

Craig Mailman

Thanks Perfect. guys.

Mac Chandler

Thanks Craig.

Operator

We’ll Anthony Paolone go next with JPMorgan.

Anthony Paolone

Yes, thanks.

like for talked a few you’re seems So, about about you all like and now, just or in occupancy, there more the less and it getting talked Hayward – you XX% Austin. quarters XX

we on about occupancy we think of as kind is the your next ahead? kind of So, where side should look talk

Mac Chandler

it’s mean, and in at term. pushing pushing And us really at. this position and rent growth, over point, I rent over Tony, XX% in the way in sweet like a to pushing that in long the spot grow maybe Yes, growth, we’re we’re bumps, think where rent we a think we being – we’re best we embedded puts

what So see XX% you a we reported, we’re markets. certainly certain in markets from clip in can above healthy certain

So per it. exceed keep shorter. years. in mind, could four it terms least a doesn’t are less our They’re market on you than basis, mean But, generally

bit can a have can we natural bit we faster. we like the – quicker. more and spot us up we that role, spaces we’re clip helps more mark-to-market But this So, more? occupancy get But We like we to which a like in. a little hair little

to, where under think, we’re sense. applying do retention, to – some through that, we’re We’re we’re really don’t makes really and through we success and But we’ve growth having leverage pressure we’re tenants with have it no got that we rent good this. good renewing

Anthony Paolone

tenants terms leasing. and of have perhaps more, portfolio thinking about in in smaller just gross the then Okay. And maybe you inflation,

side that as you feel more about inflation like exposure on can’t pass you think you we any costs do through? the have So,

Mac Chandler

disproportionately think allows landlord mean, utilitarian There pretty a than and and don’t it our any other I really isn’t think lot that we out them, inflation I be more pretty operate modest. it’s is there. if to they’re parks, expenses about I really, – you basic. than, any it, fluff our more don’t how think to pretty of

our So, portfolio pretty industrial flex the in – think I our most part, are obviously and reasonable. we’re is don’t for expenses

tremendous don’t it I other going in have example. inflation on is So, might as a us to sectors, for think push

and that, and big leases is new renewing We lack tenants haven’t a back Really, haven’t tenants in in portfolio. seen I push the big the signing comes a as our tone the theme on of to it think experienced within our from we our leases. overriding market and from that vacancy really change just

concerns, I space is, market. And don’t little most opportunity overriding other have think parks tenants that’s which out go in the there’s inflationary, our just to the any any so there. of to

Anthony Paolone

then of for last might Got just deals it. beyond have but me proceeds talked some And that, because you the from use to couple the question you up a have just thinking loss, about of of lot into of a that rate balance sheet like? what look want? are deal product does of fits would flow lot capacity what beyond buybacks Your you you sales seeing the proceeds, the sort

Mac Chandler

presuming additional closes. we’ve that product The pretty to we’d bit difference coast. that’s Tech that. in good. the in a really of will XXXX like There’s likely, deal there, a signaled There’s may meaningful – very we well that provide little That’s Texas is that sell than opportunities Royal flow better there, pretty going out lot Pricing’s say year. next that’s exchange out and

the for as that very pursuing well. in between much year not just market, here December, close deals next and we’re So, would active but

more the over larger, think awfully pricing It’s of there. Port bit are we lot a quarter. I little aggressive out seeing a we’re parks last getting like, the expensive like So, a America. gotten has what And

built also and bit on take many really XXX think ones that, certainly fits those we because as but plus little aren’t like want there I that think are tenant that who way. operators like, I well, us better, compete a we because to a we’re park that

that take built We’re on. to

Anthony Paolone

you. Thank Okay.

Mac Chandler

we’re portfolio well. by The And as way, those opportunity pursuing larger would us suit the well. really

Anthony Paolone

All Thank good. you. right, sounds

Operator

to We’ll go Wells next Fargo. with Blaine Heck

Blaine Heck

ever industrial It about on to at projects, your Good demand Great. track a sounds morning. development program you land side? of you your on Can guess, talk product, to how Freeport Are as and industrial have are more might like it. little holdings you spec as that we’ve give with And much start guys bit robust can for sense projects you Seattle just you well development? execute us current seen heard and maybe, more? capacity any Thanks. I inclined your

Mac Chandler

pipeline we a long-term from pretty more. our is, fit, a And of I standpoint our certainly them. I certainly there to and opportunities. think aren’t is is in mining It’s can’t love point But I to expertise of think, proven land. capital we’re there what ton a ability and certainly do these this surplus would

and trying adjacent to boy, to in in I were nobody all acquire think on XX% really for base, that next come at owned A that What nobody industrial to really in already – those. on product that XX,XXX well, us was pretty building return foot up, amenities. tenants the the excluding that excess actually our has well, we I land well underwrite bring of rents exceeded Class we that, to us we our interesting yield It difficult parks. and evolution with and we this would for roughly is And was Freeport that is square into are have stabilized is don’t building experienced underwrote. ground nobody small land. what our tenants. newly the and modern mean, These pretty a why that’s – said,

Now, we already own land.

could scrape I And pursue great those going to And to start level but meet, yield think those more is land evolution provide be creative might it is land parks. be expectations pursuing we our and us. because the next a adjacent necessarily land we're that doesn't rebuild. vacant, existing have me, where to to really for to So

Blaine Heck

Yes.

sounds then the pressures disruption seen like chain related you any Mile, And for Okay. increase everything's and given materials? sense. to is the running great. makes cost supply Are The in schedule we've which That with pricing it into just respect at there, Brentford

Mac Chandler

that got some sense we the in fortunate of We're when this. bought that job out ahead of Yes. we

XX% out. bought we're So

monitoring we're So that very closely.

to have we're month but things pushing out, doesn't all normally be we're looks under three months want we're where ordering But Just we bought trying we're because mean materials, think fact, to out we're we it out they're fine. did be or any or of just there going to we'd helped get like ordering has out a time roof, ahead starting today And and we're in I not. whether think really it things just and to confident lot potential when disruptions, fine. of on I we're really But going us. not be and focusing a effort

Blaine Heck

to targets working the Okay. decreasing or But market the or have any sale market one even pretty that on whether geographic think maybe targets I That's Mac, to I flex out for any increasing office helpful. you over that And ask specific market might year? in are margin. then wanted you are there it's and exposure investment the me of guys a industrial involve clear your last on and

Mac Chandler

When that we we industrial. are well up – them. towards really of all XX% office I to having we're But There lighten a one continuing our reinvest on just leaning now industrialists as, But see we interesting, is that's any out is we're our mean, or driven. like performing. what's equally more really leaning opportunity it's of almost and don't all I heavy do Yes, of – in echo your coast. of partly bias our of because performing into observations product markets is the I markets, that our in. the

being being example, with interesting to than that, the coast. is generally the multi-tenant it just are to that for little it's almost continue bit makes lax more for I going you will even little A and may do in we'll more a That's But opportunistic, where an no us And say say, Texas. isn't the vacant entitlements, new pricing's when well, sort a into susceptible markets wisdom. better think with I just coast. might And land conventional it's Texas in and to product – it's the theme not it's compared supply you matter built. be certainly Texas yield sense of even take better that. built. a and

And supply to isn't increasing really opposed so, bulk warehouse. as

as we're concerned about So that. not

one all So to and of our got that haven't we're, green we new additional yet is really markets markets. really set like lighting alright, we

today, you, very our so them They're would to reveal performing And right tell very all markets well. in bullish of nothing here all I were now. but

Blaine Heck

Great. That's Thanks. helpful.

Mac Chandler

Thanks Mike.

Operator

go We'll Tibone Vince next to Street. with Green

Vince Tibone

morning. up good an the Parks the Business then wanted investor question Parks competition I level Hi, on properties? traditional obviously industrial on more more earlier intensive. follow Are as same And to seeing you for market. of transactions Business are operationally

just how between differs wondering or the investor the, of bid So type segments. two

Mac Chandler

you in capital going overall, I'd it of the say less. less say to bidders REIT sponsors. There still just tends demand. it footprint. Hi, foreign multi-tenant, expanding players, would some behind markets after or more plenty their Vince have also more that who but less mean after going they're bulk, XX local industrial, asset I than, their to know probably an be are doesn't local it it's there's really probably after local and there's peers traditional XX, whether XX with less large my, people and our But warehouse are with of and operating It's which used competition even there. has operators it even probably

real still our demand there's value drive of product, saying, the helping we're robust to for multi-tenant. our existing So it's

Vince Tibone

same is, rate in the same think market park do the No, place? current helpful. thank follow-up cap a versus I for That's one you more, then spread in what mean, And you. business the in that, a really bulk product

Mac Chandler

versus for think provide. think shorter compress mark-to-market compressed probably because, to traditionally you certainly and it's quicker Parks I And where that's continues product that's Well, what, Business walt year is a what that a ago. I as and it demand can there

think to in, hundred. it's cases at a was think it's it was, it year a points in call I over continuing I mean, compress, So it's, basis less XX over it point ago I it's one

compressed. it's that So certainly

cases probably spread. XX plus inside in minus, think I is or a reasonable

Vince Tibone

Perfect. Thank you.

Mac Chandler

Thanks. Sure.

Operator

the turn will floor Mac I questions. further to no are back There Instructions] Chandler. [Operator over

Mac Chandler

for hope everyone for Halloween. time hope I safe interest your I PSB. you the Thank of and and enjoy you a your in continued you Thank rest has again. Friday your everyone

Operator

conclude does and at your today's this Please time line conference. This disconnect wonderful have day. a

PS Business Parks (PSBXP) 29 Oct 212021 Q3 Earnings call transcript