Veris Residential (VRE) 2 Nov 192019 Q3 Earnings call transcript

Company Profile

Participants

Michael DeMarco	Chief Executive Officer
Nicholas Hilton	Executive Vice President, Leasing
Marshall Tycher	Chairman, Roseland Residential Trust
David Smetana	Chief Financial Officer
Derek Johnston	Deutsche Bank North America
James Feldman	Bank of America Merrill Lynch
Michael Bilerman	Citigroup
Emmanuel Korchman	Citigroup
John Guinee	Stifel, Nicolaus & Company, Inc.
Daniel Ismail	Green Street Advisors
Jason Green	Evercore ISI
Thomas Catherwood	BTIG

Call transcript

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Operator

Good day, everyone, and welcome to the Mack-Cali Realty Corporation Third Quarter 2019 Earnings Conference Call. Today’s call is being recorded.

At this time, I would like to turn the conference over to Michael J. DeMarco, Chief Executive Officer. Please go ahead, sir.

Michael DeMarco

thank call. joining and quarter Mack-Cali’s everyone, earnings XXXX morning, you the for third Good Mike CEO is This DeMarco, of Mack-Cali. and David I’m Marshall joined our Operation; Tycher, partners our CFO; Smetana, Chairman of of today Roseland our by Leasing. Nick Hilton, my EVP Multifamily

legal the remind everyone note, federal in securities information that within statements must constitute may law. call forward-looking I the a certain discussed On this meaning of

the cannot and anticipated press statements we will are reflecting based could give company. believe assurance SEC assumptions. reasonable release, filed impact always, We that As achieved. that the these We results our be risk refer quarterly the on to factors for the with estimates you reports annual

our quarter. We supplemental this filed

disclosure to you’d As like with please always, my about partner see. contact David suggestions any further

to is and multifamily opening forward; will comments; view going our sections. call Marshall we’re markets have into which down we performance following close Nick will and David some and before, done operating the on leasing with insight I our As results; recap make I will office break into all our comments. then will of will cylinders; operations, really some our going discuss provide hitting the

regarding and a that allows with We us to we We this purchases disclosed executing operating supplemental financings. our sales, of plan is and in greater positive quarter similar transaction all had deal had results across operating a delivered quarter quarter metrics. another activity, our which continue

operating the I believe continue highest levels. teams to our at that are

simply us owner of a A the us the group Waterfront. market. play office, with last to activity in work is and allowing transactions, define vision quarter’s our in core which for two execute This with vision largest multifamily to allows live, of the be the to quarter, combined Class is That our

we We total expectations Waterfront when comments. of are are he quarters, goes velocity Nick upcoming outline concessions. on his results are over results foot our hitting expectations achieve for as so greater through leased. can square XXXX the far However, believe regarding which below amount go on leasing, Rates will for

large suburbs We the of which number are working Waterfront, on deals both a are and active. in new the

Jersey New the be market disagreement approve legislative June size Jersey the a as government branches Grow of and call, the XX, a the problem of new at in all. the not discussed last incentive. not should as There’s before the did continuation the government whether Regarding general, between office of in there regarding and scope New program, the still

election. will New Jersey to All the be continue branches which at held, are next the government in democratically of Tuesday’s

We expect I based weeks in tour certainty these the and on recent there’s upcoming election. disagreement resolved expect will conversations with programs. this until be light after until several around then to parties certainty – activity the there’s that be

pursuing. new deals have are we do However the several we marketplace in that

Regarding our XXXX. see wrong we believe the in type nor strong of no of feel overall have we’ve I prices, the portfolio, makings pushback we do space. still we

before Regarding to his. brief makes our multifamily my comments partner some I’d platform, make like Marshall

acquisition invest with in developments. in still products add business, as holdings our push our able the continue to We are of multifamily and rents the to to we brand-new

rented. in of Jersey Jersey New in several for is City the The are light York in The quarters. metropolitan the a overall to tenants months supply place units live XXXX Waterfront area and of next the upcoming choice Hudson for County delivered area. last becoming City the fully four

buildings We’re capture in remodeling rent. in higher older our the our order to product

A We will Marshall substantially have elaborate to holdings. to Our deliveries add our return which been to on. solid, of accepting will forward Class XXXX product, look dates which our

several the deliver XXXX-XXXX, looked the the with will will Christopher Foods inclusion Plaza planned retail at totally that operation Columbus product As our the Jersey of and be new Harborside we changes way I and XX Harborside change restaurants said both X at. other of in before Whole starting and

upcoming will allocations the in and restaurants be expanding We quarters.

called Imperial last to that Hotel opened Marriott New define EnVue, quarter, positively which Additionally, market. is impact continue and to

to our the pipeline, David complete capital will outline. which We necessary have

announce the upcoming in development to new in deals the expect We Waterfront quarters.

planned will David of for sales XXXX, talk which about our schedule. ahead are

a We’re very in new process efforts – sizable marking the a of deployable These are sizable for going marketing office suburban new sale. well.

will to approval in Directors progress Board transaction, of they we Board these expect if of in expect our first sales, the quarter pending a of definitive they We present be December completed which XXXX. to

update on these next efforts on We will you our call.

The proceeds debt. used repay be from the to outstanding as will elaborate, will David sale,

will sales Therefore, XXXX have debt. the in next our of future only loans, our we repayment one remaining plan which of continue of to and date pay to term will redeem our to bonds leverage down go we to All sales. with year form come down unsecured

of now overview an turn I’d to over like Nick? Nick it leasing. for to

Nicholas Hilton

XX,XXX Core square Thank our GAAP in XX%, foot $X.XX at square markets, you, renewals. and term. lease cash our feet XX%, we of unusually signing and all portfolio on Of square QX were on leases Mike. XX,XXX basis, approximately over year per Across Across square and rents per quarter resulting core basis feet deals our posted portfolio, XX.X% and at rolled XXXX, transactions, a for just we slow XX,XXX XX.X% of new or were or finishing committed place XX.X% leased on feet QX transactions, up quarter-end. in an these Waterfront a

push on markets, square the of on and As finishing just basis Waterfront basis. feet the increases specific XX% leased new of we cash XX.X% turn over with rent GAAP focus and transactions, a we see closed to a continue quarter our XX.X% positive XX,XXX third the to a

negotiations and feet our we a currently current our financial at across transactions approximately activity services, of XXX,XXX new Looking active in few. including have shipping square name tenancy to diverse mix, level, just co-working

activity to to tour and also within responses improvements development. with have the made make We continue continue Waterfront positive we have strong to our

feet next only months, the square lease amount of rollover with we have XX XX,XXX ahead, Looking XXXX. in a limited expiring

we to on as levels gains expect a improve continued As occupancy overall Waterfront. the we the result, make

Our slow suburban quarter. third an portfolio posted also unusually

Specifically, we executed approximately of feet XX,XXX square transactions.

to we a and square push on rents on our square continue foot. and our starting a increases was averaged although X.X% basis rent footage basis X.X% see However, cash $XX above a of a GAAP overall light, positive transaction with

XXX,XXX XXXX, XXX,XXX square expiring we know will have of to vacate. or Turning year, feet that over square XX%, feet which we approximately

the approximately We are rollover transactions in of active portfolio. addressing balance already square suburban of negotiations this confident we feet in XXX,XXX the across as are with

I’d to that, call like the turn With Marshall. to over

Marshall Tycher

Nick. Thanks,

in with Hook. the the we transactions. Liberty XXX-unit City’s In continued During significant acquired September, institutional quality Jersey execution Paulus of quarter, company’s Roseland strategy Waterfront community New two Jersey the Towers

evaluating a for unit common efficiencies the preparing are operating actively area are and We and property. comprehensive improvement plan

and our acquisition The will suburban Boston assets in for Chase the north was towers Though swap the of swap the communities disposition with Liberty be Waterfront Towers Alterra of we initially high-rise slightly dilutive core Boston. an to sold asset earnings, geography.

and $X.XX operating in is interest. in quarter Rockpoint’s subordinate that’s long last or just assets NAV the $X.XX Transformative years nearly NAV in estimate interest billion, of of transactions composition is now X.X% third is Mack-Cali Waterfront, Our over billion. $XX share share. the this NAV. is in our Net the figure for is construction in XX% XX% Mack-Cali four of reflect

finished a over basis leased. increase same-store third XXXX at in portfolio XX.X% a X.X% Operationally, experienced quarter quarter NOI second Roseland’s and on GAAP

Marbella. by impacted active our renovation programs results Monaco same-store at were Our negatively and

results would have a modernize same-store apartments. feedback we adjust repositioning re-leasing common reporting these has XX% we the achieving to for offline At third on and been have NOI unrenovated premiums areas with growth properties, embarked to these amenities. If to units, X.X%. units, full quarter the positive Initial units been the account

XXXX, to of reported delivered million. results produce marketplace. stabilized and NOI This In $XX in from is excluded forecasted X,XXX same-store XX% is currently we is leased the units portfolio the

XXX serve July, Autograph performance In a Hotel. with of Imperial of strong our a place-making as cross-marketing and and amenity source Collection has Imperial key Port the cornerstone Initial opened and they the maturing company opportunities hotels been Port community. twp EnVue

and to million million. on comprised is this units. Primary approximately yield remaining at our portfolio slightly of is $XX NOI is capital construction of $XX this value active cash The flow of company’s cost to X%. portfolio source a generate forecasted commitment X,XXX growth above Collectively, approximately portfolio future

requirements, as combination Roseland’s Rockpoint’s dispositions cash along be of capital organic flow, select with obligation, development amended and in a will commitment June. capital This sourced remaining from refinancing, future

totaling The Charlotte a significant XX to RiverHouse construction portfolio units. Jersey Riverwalk will developments, Port foot Waterfront and neighborhood. along square Waterfront school, City, XX,XXX which the X,XXX will C amenity delivery the a is include Imperial, RiverHouse which X and highlighted leased onsite Hudson the by and in Jersey last be three our is elementary where XX%

suburban City Port land in for ahead, series a Looking starts and non-strategic apartment evaluating are and are of preparing Imperial and also XXXX, Jersey in additional dispositions. we construction

that, With call over will David. turn I to the

David Smetana

before a over company. our quarter Mike. turning and few Thank call for the line to will in multifamily I in you, highlights continue healthy Marshall. was operations Office have back division. budget fall operations within to remain another brief the It

asset $X.XX of the NOI due FFO as mainly year. The is Waterfront executed $X.XX of the disposition of versus We once from part in reported core out decrease share lost per again sales move prior for the year-over-year and quarter tenants program. our to on

last moderated office NOI side Waterfront the of by the quarter last declines Cash year in major XXXX and beginning same-store The in third deals X.X% declined quarter. were in same-store at the blend in portfolio by the have by income. GAAP of mostly now end commencements our the X.X% NOI on year two the third extend for announced and we being the increased office recognized move-outs the of complete rent and are as

Monaco Roseland’s and As Marshall, continues by and at our revenue mentioned renovations be of this by to both of units Marbella improved and by lobbies properties. affected ongoing growth quarter same-store X.X% NOI

On disposition would by all towards the range. our additional a quarter. an the office of million by with quarter-end, transaction year If to had suburban of trade activity in year-end, for side, contract expected $XX end high-end remaining office this the no After assets of we the assets dispositions completed $XX under XXXX. place close million, we were property had

Towers under set weighted million acquisition debt will namely end towards non-core was proceeds term quarter, have Liberty the in I would office also I XXXX $XXX completed targeted we close $XX September mention, was for loan. repayment XXXX fourth contract million. with on XX. also our to be an sales of The note, will early the additional the remaining asset towards

Turning to balance the sheet.

were the balance another proceeds loan balance term $XX a retire the million term XXXX $XXX XXXX to on During to to balance strategy. in $XXX XX-year placed X.X% Hoboken, on we our the River On August towards mortgage we that we interest-only million a and coupon office we migrate secured reduce million used and The borrowing XXX loan million. $XXX received $XXX Jersey. in remaining X, New our used million continued asset to proceeds quarter, our of

to the We’ve intention our of XXXX two our loan in non-core balances remaining term pay from banks sales. January notified extensions of any our on the use asset down after for first XXXX

I note, in inflated debt-to-EBITDA XX.X at for quarter-end. quarter-end our was times by October, have net multifamily the received asset would this at metric proceeds metric swap. the been would Accounting

balances secured $XX roughly increase, debt value-creating fund throughout come $X they pipeline. Our XXXX. produce to are to will NOI online XXXX and X% will These provide NOI additional multifamily and developments yield stabilize residential a continue we million billion of projected when as our thus, and

Lastly, shifting to and supplement. guidance our

to multifamily of still increased initial and despite anticipated time We original not all portfolio, FFO dilutive the of range share. at are midpoint asset which to tightening guidance, The $X.XX range contemplated than our our guidance. partially disposition guidance per sale of flex were $X.XX earlier guidance swaps an our straddles core

from FFO benefit in at a share and to $X.X credit We share. roughly thus, October have QX sale of of for tax URBY proceeds the approximately per $X.XX received million our our will

side a X% on increased minus at GAAP our X.X%, We have an cash of to office X% the guidance to on basis of X.X% minus on increase and basis, plus same-store respectively. minus the to midpoint X% NOI a and minus – minus X%

our Boston basis excess We are activities Marbella into Monaco XXX does leaving points at full-year full-year, and redevelopment This the through and benefit multifamily NOI same-store effect pool to assets takes our a contributed September not for drag same-store place. which the XX. from multifamily assets guidance NOI guidance the include in

our being of net on a decreased under assets, NAV of company-wide Our by based of each for assets basis on individual recent adjustments our as was quarter the underwriting X.XX%. updated it each contract. placed value is GAV was including most

With over that, back turn now I Mike. it to

Michael DeMarco

up as closing, beyond. I results up a view in to In my continue showing you, we’re an and Thank XXXX execution have our XXXX outlined, set solid have David. of to point work colleagues from with believe hard of the

now is business. multifamily means outlined on Our Waterfront, our focus as XXX% we’ve growing the which really

and transactions. our For ventures made example, we intend on to progress joint these have exit D.C.

We have before they contract as sites marketing. now under were in land Philadelphia

suburban the marketed, of goes land have All We either be some New to sites upcoming development. we Jersey being are them or this months. debt pay expect down now in which that to fund closed in our

of We assets. the in selling County portion look development. in assets purchasing additional forward our remaining to the process we’re Additionally, our Boston complement of to Hudson

excited about how we’ll dispositions new continue very portfolio to metrics. with operating our grow and are We and out our projects being operating taken of excellent

The strategy I’m real retail of key long-term. excellent confident, produce effect is sense and our the total on multifamily and of efforts will short Waterfront. coordinated of of returns our a creating the the place office, in

to I’d that, questions. some like with Operator, And go let’s take trick-or-treating.

Operator

go today Please ahead. question Derek first Thank of Bank. comes from you. Instructions] Deutsche Johnston [Operator Our

Derek Johnston

Hi, everyone. good morning,

negative now point? the have the dispose you are know we the been about do at driven lot I NOI at NOI. back to But a inflection how seven guys favorable same-store this? more certainly of portfolio same-store this see and When growth, quarters what an that point And – given or believe You by comps consecutive has repositioning. posted will

David Smetana

Derek, it’s Dave Smetana.

to release, we’re mentioned, our our office because rents to re-leasings for renovations our you started same-store quarter, tenants. NOI big I in of big large actually GAAP positive some from GAAP noticed this has our or recognizing As turn

has already that so And turned.

we October cash without cash any will square the to only feet last basically that move-outs But tenant we believe positive last already XX,XXX We XX,XXX move-out positive. ICAP have is from year. that here, going The we rolling fallout in believe further XXXX. and on was comp tough GAAP year, next have follow. turn of is in

Derek Johnston

TI lower regarding I’m maybe seeking leaving look, and and pushback just, like companies we about on City look, a know tax you pushback the New Waterfront And don’t pricing Jersey to incentives overall mean, wondering maybe are packages? Sunbelt? office the offering. I guys? great. elsewhere, made, because the portfolio, you’ve where Okay, asking this, improvements I states the just the or concerned New York tax be it Could And appreciate especially is

really just of getting understand just please? headwinds, also portfolio this versus credit dynamics on given And right? the or quality pricing the portfolio leasing for market it’s to like So a you’re Manhattan. trying But the acknowledging something the I’m of not favorable general, that, and lot overall in

Michael DeMarco

Excellent Mike. This question, is Derek.

years other macro you Coast, micro West to of been the at some point looked setting you colleagues really year superb think macro, spots for If been State, from point Paramount, Vornado, mean, it’s last Boston a even five of I which tough at view, it view. tech. I Empire SL from don’t a Green, really a than all office look have at benefiting on has product a from the Properties, return been my

feet how for I job the a many It’s New mecca amazing still it. square been is City creation, of been side have tech on think Jersey especially absorbed.

portfolios. little the which of WeWork have affecting a will Now be fallout, you bit

always see Jersey location. we’re been On wanted a starting to to they we’ve a of a came cost, us, benefit that. having lower secondary side, People of a which little because the have New bit to

So recession as people let’s at we’re might people looming things we think and activity. New some saying, slowdown Jersey." getting to "Hey, be So look move

it’s state. big it’s on the itself, portfolio For in core companies. mean, big pharmacology a I state the pharmaceutical

flow a come as in. have far that as little We bit ebb product seen of and new

think looking over we assets we time. So could home that find at the right for we’ve been shedding don’t that them

that in which to to is doesn’t could But be business continue shrink on we’ve the happy also. still a right that we Waterfront work, under scenarios. portfolio basically in invested multifamily. core if the exit I portfolio, work I’ll believe why So our

we kind think the of more New happening So a legislative governor it in an which incentives be if was business, as things at degree. look it it’s for open-eyed say, there’s and be jaundiced that better not. York clearly We embraced by lot would very to us if already some of We’d the way state branch. favor and better, are open the

Charlotte at York that in Jacksonville. Especially, to actually about burgeoning employees you is to relatively housing these versus live? education submarkets. Austin There’s people a this relatively conversations up for fill can here whether of markets people a work look those and live see surfacing when quickly. of New Texas mean, or But getting already or stories are right problems they get a and transportation the and you place index and problems lot about new cost can in happening things lot of I tight say, have

quarter. we’ve – look, we been every at we But look selling quarter it every

invest to the of note, were But haven’t five we continue Derek, we money morning. years, basically harvest. $XX.XX the at us this. to We you doing for the started Interesting covered been multifamily. We June XXXX, that take in we’ve day

Our multifamily dollars of back division $XX grew about we worth couple is then. which today, from a

So reposition we decision a our basically made portfolio. to

So we’re to anything. not weathered

Derek Johnston

Great, ultimately which And there think XX-XX-XX XX do XX could You be the you and from a shift as that a Waterfront makes model, environment? could going on follow-up, based be shift forward that there XX think a last just sense. the suburban? to multifamily,

Michael DeMarco

follow so. the Yes. other I for to business, way. like we or We be the the in think, job year of mean, we’ve XX in returns if also you zero excellent I at our would a the more love an I that’s producing. growing what done or multifamily to multi would be money do. I look suburban the and will

negative tide for way. that still of good took had defensive cash you’re fighting I but in that We’ve work several doesn’t over, a GAAP a your quarter, we had maybe positive years had – think, before not We’ve we’ve earning. we’ve and very a – being every done company job on

at carefully. look will very we open-eyed, before it again As

Derek Johnston

Mike. Thanks, you, everyone. Thank

Michael DeMarco

Pleasure.

Operator

you. Thank

of from Feldman of question Merrill Please America Bank go next Jamie ahead. Lynch. comes Our

James Feldman

Thank good you, morning. and

new I multiple you had foot in So pipeline mentioned guess, guys square XXX,XXX a across transactions of industries. the

mentioned of that willing point which industries. one suburban Can composition to pipeline the versus Waterfront? the as the you you would at you think, had And much operators? and I add co-working be then how co-working of portfolio in this terms talk about of to

David Smetana

But feet on that’s specific. overwhelming services The I in is was it. to and referenced referred a well The The we now feet also XX,XXX that XX,XXX through large portfolio. again negotiations well. suburban, square we’re insurance, with are but about chunk to it right a feet, problem. have That’s active suburban square runs we – no of services, do mix XXX,XXX talking as Waterfront XXX,XXX Yes, in for tenant a the co-working square – Mark? later large in financial the financial industries I FIRE as of gamut,

Michael DeMarco

a tenant we’re a that’s in buildings And in expand wanted we they Jamie, an with XXX,XXX feet. concept portfolio of about marketplace, with extra square XX,XXX two to That’s to have XX,XXX looking absence in square new the current at. the feet. feet, square go WeWork for our what

James Feldman

And that’s at Waterfront? the

Michael DeMarco

Yes.

James Feldman

Okay.

Michael DeMarco

we’ll So one another a of X.X. go will a buildings – same into the for in buildings existing, that have two –

James Feldman

about submarket opposed being that Okay. process about to completely idea spinoff curious it something there? sounds how as eventually think portfolio, your what is if to diversified, thought were I you of do picture? just bit guess, I’m down you – assets. City you more I as And in like a mean, little then the the concentrated the one think apartment big keep non-Jersey want to selling you

Michael DeMarco

on probably I great started at with who portfolio. Station had the the a Mort fairly had to work have pals who Zuckerman billion big Avenue Lex dollars. Green My out all companies Penn three career pleasure dominated SL and that had at a looked Park my banker Vornado, several in Central. with it’s I as whether Grand blocks Well,

doesn’t ability operate have it. conversation bother the The if to you

I’m in Manhattan runs disparate side. Street in I’d And a foothold We’re looking battery which I’m Jersey at portfolio region New a in that in from tourist marketplaces. a to on professional. to D.C. a have that We of in Manhattan. effectively things it’s the a It’s the – like getting done these than like Boston than good have XXth rather tend being fairly just more and on be

James Feldman

your Okay. on And are residential what then spin? thoughts latest a

Michael DeMarco

projects. for it. were into and building that Marshall Jamie several is you It we’ll last the been quarters. and probably and to deliver getting the billion, $X billion, close deliveries, size put some we’ve $X.X And ground, when we’ve Well, these towards depends we’re about which conversations next chatting I maybe I we the this and on great year had really

have that Waterfront. value a the have with really and left you where is to And could operating "Wow, you company have say, time, with leasing If the accordingly. You’ll hopefully, you’re and the Waterfront creation, great But that you’ll metrics." really, suburban solid exited a I hopefully scope, have up not, said before. by as you multifamily look size deal with and

which business land, multifamily to little a of It on. It’s production NAV. on numbers. the it quarter, a cycle perform better increasing keep turning We Each taking introduces service, bit and for continues us. into on goes

to the where And it We’re you’re can in quarters is. started today. in but some think it’s progress. I I don’t ago to the it point, quarter, several future. where But it’s a now, linear when know don’t it’s say, from are see I manufacturing at this we time. we looking business

James Feldman

think we assets and dividend as real the you’re if paying going And special about to redeploying opposed how should into down finally, for a need be Okay. estate? selling debt then to

David Smetana

No, we’re good.

have a different is it’s need it foreseeable going the – paying think have both. But future. special us business of We they has – I a first problem looking into a rebottling existing and else taking I tax the or I – for strategies. give more somewhat in without the everything really combination think we mean, credit. science. REIT not credit. taxes than up more dividend art don’t an been of people a And I’m don’t Maybe tax complexity and

good. pretty We’re

James Feldman

All you. Okay. right. Thank

Michael DeMarco

great a day, Jamie. Have

Operator

you. Thank

come today from Our next Korchman ahead. questions of go Emmanuel Citi. Please

Michael Bilerman

rate. sell there’s potential pay have drag your dilutive you’re the NAV, big migrate on Mike, those anywhere assets? other to that and In FFO. talk XX% a at at you Manny. cap that dilution the the at Bilerman little bit as Michael your $X.XX you down about a it’s executing about updated you’re with the a can things here aside And pretty suburban Hey, to down X if to going use you on paying could X all XX down from working selling just $X.XX assets debt, cap, cause spread. debt to Putting a

you executing talk about dilution? you sale little can without envision So a bit how of the sort a

Michael DeMarco

just going Well, a be there’s dilution, to reality. that’s

We’re the cap going to latest batch – basically we’re X% doing is about rate. a

that So year. the next dilution comes online isn’t bad. in The starting multifamily

So pick some we income. up

We picks year, some have up the this income. hotels ramping which up

determination, it we’re would out We do coming we little bit less hopefully levered a to long-term? think income. you want recession or going maybe want have have be on, picks portfolio and own hold that a you when a to like some exit which don’t a you a to leasing, and have to debt have up you to little make And of Michael,

next Board which for on prepared But been to work That’s we’ve that to managing forever. I It’s into in make when is would dilutive a our substantially category, numbers. put slightly those it dilutive, a we’ll time, give yes, And – those December but meeting, at not break for dilutive. going it’s have guidance be it to at that the we’re Board conversation year, XX we comments. but

lot of range, pretty debt less But a shedding use of if I look wind because at our look capital, assets you where we’re FFO, in solid stays good at and and a that, multi, a I it’s leasing basically portfolio more also AFFO a also a up trade-off. a think of commissions, downtime, a we [indiscernible] lot of lot with dollars. that lot

portfolio the pretty is actually So clean.

So a balancing act. it’s

Michael Bilerman

supplemental, right, you to a another nine, that the And you at you the question, of I at said looking if ideally of think selling XX% to eight seven, pages by out today But the at valued response in year, end want zero see suburban. and have the the portfolio suburban right, cap.

slide cap, cap? of saying two? just to you’re the sort So – why XX% it’s you if X% updated wouldn’t a a missing it I’m the

Michael DeMarco

are Well, the going it’s moving a because we and cap, at is replaced haven’t look to the but that income XX% down we migrate tenants yet. out,

also a said What the I is asset we was the in-place spent out around X% capital. put We that the we’ve million have for currently haven’t $XXX running NOI sale, rate. that

But in batch, will we to dilutive have and right? assets everything we’re bucket slightly to be we going which buckets. and try multifamily. to there’ll right? one deliveries And saying start after we’re That then that do, selling bucket next be selling that at with of time, not The I’m a match

the We’ve As before the last savings some at incomes. some don’t places in and hotels gives we numbers now this bit, are been several dilutive. little before, which a do. do kicking it. you’ve this got I said look done years. cost We sense But where a doing XX.X% to you for can There’s the few other go just say, doesn’t make

down to want get debt. in We

in You want down us to get debt.

the to exit is want to us There exit want We path. suburban. You suburban. a

relatively wind by we the in a as up think good I evidenced FFO. spot

Michael Bilerman

about the the saying year? is end talking it to bring you’re about to million, at of that talked $XXX the you’re the going In the Board transaction, you

Michael DeMarco

$XXX we we have XXXX closing million have, already so – is about in $XXX have is portfolio million. stuff that I and the XXXX

Michael Bilerman

And right, the much remaining take suburban then eventually batch how much the suburban to comments you be would $XXX sales your but of to out the another – the deal referenced of want in Board the you that portfolio? how million of that of opening deal

Michael DeMarco

to And $XXX worth is it I’m haven’t it December to you. to yet. XX. when disclose recommend to of A change. million No. figured I the disclose about that them, portion probably The what I portfolio will going remaining and Board that on I is out exactly

Michael Bilerman

How big is that then?

Michael DeMarco

is to I’m Let usually you this me top in off doing get pretty head, the it put good. of slow my – And I but this it math.

we’ve total suburban contracted about already the it for and small bits, sale of million $X,XXX $XXX doing of assets, you have We about again various in of million worse. it’s theory

million-plus. I go leave Giralda would Monmouth, assets Parsippany can’t the – pools We remaining. equal $XXX get five and Metropark, Short right you with assets it. number. exactly Those That through around five Hills, of somewhere

like Now that to a have that million-plus, of Board portion to the December. I it I’d $XXX in recommend sale for

run yet. I approval don’t haven’t front I don’t my process. gotten the Board front I run

the amount on because That’s in running, neither a then see to that strategy portion. will rid in if can’t will XX the So recommend will but a to we recommend I we I conversation front source be next have December. I of that over of months. you, effect strategy a a go all would

Michael Bilerman

you’re be and of to suburban, both combination the the A So left it’s residential. a with where going Class and Hudson suburban the Waterfront

that you’re reflects $X away total which So both cap… is what billion a at, chipping

Michael DeMarco

It’s yes. a $X,XXX million,

Michael Bilerman

those of down. something, two and Manny, of of – totality narrowing using just those sorry? totality The had GAV, you columns that I’m right? Yes. The ratcheting

Emmanuel Korchman

Michael. Thanks,

if conversation the think those your Nick and the York earlier combine about great. had. And that leasing made that’s Mike, proper hasn’t we’ve you New tours been with traffic demand the and comments, Just comments a I think and in

they that So what’s look tempting advantages at your or and portfolio, perspective? those game is tax to simply in a tenants just pricing Thanks. to it continue look place, it from without at especially the

Michael DeMarco

I’m breaks XXX,XXX, the it into going it So up four Manny, to slowly. tenants make do

that and we co-working feet tenant square you have, XX,XXX up feet is Two, shipping and of just what XX,XXX XXX,XXX, with look that of them Authority XX% can from to of to which square of the Elizabeth, existing we discussed. XX,XXX what or of about already of one wants New on That’s – Newark easily So that be a XX,XXX Jersey is. find Port have we Port Port right? the That’s side square the – company relationship feet. because about an

not and always tenant market driving done our before, about I’ve saying has again. maybe that move looking has The want more, New but City. take, is XXX,XXX XXX,XXX. They’re and in in to has exited York next "I our Jersey And a maybe out tenant before bit been to a is little give in or buildings well been

and up about – that’s So moving now XXX,XXX-plus. to we’re

I has period I a coming look millennial clear? whole has to as I I it knife is format. renewals. market of I new of want the nice it in they do of I And time for place, in class moving a towards existing and want changed. XX-year The at long to that in leaning to that’s those tenant or years. at the Is to last and The say, move restack building New and open meet right. on as renovated building want XX Technologies mix everybody can – tenant Mack-Cali’s tenants. one to who’s four to Jersey do they do need end the they’re seating that’s the has it Do Nobody the of up do – a that

Emmanuel Korchman

that. for you Thank Yes.

Michael DeMarco

Pleasure.

Operator

Thank you.

of Stifel. Our next from comes go ahead. Guinee question Please John today

Your line open. is

John Guinee

Okay.

think was I go Mike, last your let’s trick-or-treating. operator, quote,

a So a trick in and what’s this tell me what’s dialogue, treat?

Michael DeMarco

week. a John, the getting on candy that I middle I can’t when bar neighbor. in – John getting this it, Thursday plus was money assuming just get on the that cloudy from you I get with lovely didn’t I expect of long Thursday is found is This what just weather the big treat you is in is nice a wrapper. to I a the get believe. the That’s I a on phone

John Guinee

Sorry.

me Let really ask this quickly. just

$X,XXX cap. X.X% you I office said an think that’s worth Your portfolio suburban is million, about

Michael DeMarco

Yes.

John Guinee

And David worth to you then million starts and of actually have gets think which $X,XXX you $X also. of to or $XX going on I billion multifamily, said you’re about spend Marshall million that – about

disposition development next the in to safe maximum starts dollar your your dollar it is matches So XX for say both, months? office

Michael DeMarco

unrelated. it’s No,

we the what to that, we and pipeline. do capital? million trying We and only the I’ll pipeline have $XX us So try have is often complete remaining people to capital were make it existing that clearly to convey with the clear ask we have

depends the on you XXXX. at XXXX, didn’t project Hills we how buildings than we And Charlotte. then in first of end deliver more two I Jersey Imperial, on quarter, which Port at shortly a thereafter we’ll at the look October thereafter. well, it delivering shortly Revere will what as And the in The of Short coming deliver have – Imperial might time. in the City outline, we the call end starts Marshall Port has

from up have trying convey I of Michael you’ve starts to got what already about, that, we hey, amount which built. is the was match So a two. We those income tremendous to Bilerman get to

that but yes. market would good suburban high of You capital, people path brand-new little assume, you of I lag, can a a may in expertise with to have and a see growth multifamily this low trade? Is a bit have dominance.

billion outlaid, will venture. want going or program joint is sites They continue several be we The that Port City. next take. total as that know start our I done about have people always to we Imperial a either $X Jersey in in to because building is, as give be done two One and sites

over We down the don’t doing but be several those we’ll dollar of starts expect haven’t until June XXXX. quarters. whacked really capital, the be next that We to of every

John Guinee

Okay.

say page So and at about is the two which Jersey XX deals you’re here, on XXXX, the target start talking Weehawken right? basically

Michael DeMarco

It’s It’s called It’s Park, end It’s it is by yes. XXX a building, for we a gorgeous at great the It’s actually southern site. which we at to has submarket. put Basically, ball looking got Estuary. the the a next of especially a beautiful call of building frontage York Hartz and it Weehawken surrounds our with holdings. Yes. degrees one, It’s the families. New city City that fields in. built

that expect be one winner. to true We a

have We been venture project be very which URBY, with which has Plaza of the we’ll call Ironstate. for we a have obviously doing and site second joint window, successful a outside building us X, my we a that

John Guinee

think So basis? on the that David portfolio then lever going and stabilized to – a that I you’re up secured said multifamily

Michael DeMarco

be is, existing taking we will of selling happen will What assets capital and out deals. No.

million probably project. very Worcester, to in good that a for which sell core will equity for on example, job have fully John, $XX us. leased, We $XX of million not done we’ve holding We a

we will profit We build foundation of coming could pieces that least probably in Boston that same of have those we the be one which to have will Phase the look the online. towers. Those become at some deal same million at and projects $XX equity. have X, We or have that

John Guinee

Gotcha.

a you. lot. Thanks Okay. Thank

Michael DeMarco

Pleasure.

Operator

you. Thank

come Advisors. Please question next Green go from ahead. of Our Ismail Street Daniel

Daniel Ismail

everyone. morning, Good

or more where the on the changes on you reductions puck this little marketing, received you of about conditions? based a skating NAV in the assets talk market see a Just bit of can you’re estimates? kind the to general the Are is on, feedback the result of any

Michael DeMarco

versus review do really Q. because a you we deep a We rigorous things. Qs, couple obviously, XX-K and use basically big year-end, take at dive quarter-to-quarter a file The the we of pretty a

carefully has period. Asset adjustment sales, an look it’s at more transpired what of we in the quarter, but

So multi-up and we’re numbers “Look, the looking yes, look at some office. at in of happening it’s things saying,

out time the year-end. through can process sale We’ll look in, a have we then just it go at that do deep and numbers the and to expect as to going the this at get the very, I it. you then laid down.” Let’s very on at move portfolio We’re take looking remaining we look probably dive

the thought more we’re things more of being now. as use information at at time look to through and looking depth, well I we now we’re as the will But NAV and go that which of spend going

Daniel Ismail

And so the net exposure, particularly of can some suburban for growth year-over-year effective assets? you frame office rent your for

Michael DeMarco

I a you on that garbled in came little apologize that one.

Daniel Ismail

the office for effective Oh. for rent exposure, Yes, frame year-over-year growth suburban you’re your marketing? net particularly can you assets

Michael DeMarco

relatively [indiscernible] money in metrics. the got as Metro which bunch good we some like been We’ve The We’ve really roll-ups good a for line us. places been in in getting Park suburban in does have things Parsippany. put well of into, overall the some same

and somewhat in to more I get started that stabilized. today We the maintained had, we invested, would we’ve our in cash Monmouth. between $XX this company, become we’ve And dollars I say, were it’s $XX. When flow growth probably $XX

Metro $XX $XX $X. still a but a people the Short probably to some and a Park it Hills up picked can to used get $XX, roll-ups. from there market, $XX. market. get we is Parsippany, is $XX low moved relatively And great numbers we be You flat, a

that what don’t we’re existing stabilized We’ve forward is is shedding think and I which look those – reason there is more movement, basically money much we put one assets. at But looking in. I

Now into and can assets we precipitously. should that money think take grow we redeploy it more

Daniel Ismail

just delevering there considered last issuances equity for any And being on one to Are reduce the table debt? actions for other me. XXXX Okay. or

Michael DeMarco

have to the a portfolio, get to which you right either going What’s Jamie outlined Feldman put spin portfolio, in do I’ve out right When the we in to multifamily to happen as get a level. before. is, No. a strategy the order you might recapitalization which

You right and equity get through recapitalize use company today can on still I to money. think, But false to fallacy sell portfolio you’re of time. the amount is, of shifting that that raise a to a

the at for productive at So useful other and which with is which people, the no equity is we in do Rockpoint raises future foreseeable than what basically NAV, us.

Daniel Ismail

guys. Thanks, Excellent.

Michael DeMarco

Gotcha. day. a Have nice

Operator

Thank you.

go next comes Our of Green Please Evercore. Jason question from ahead.

Jason Green

Good morning.

being Jersey could this process closer to question opinion a incentives. how risk the on long what’s downside out? Just your In incentives this, New for play

Michael DeMarco

make going need a first I if which the has mean, goes the of think governor continue short-end be I I incentives believe I be shocked. past think it’s it to really done. as the quarter, do to people would rebuffed. to they spectrum to get proposals, But that

that slightly government, slowing is rates see can treasury cut the United States. the the yesterday. You across economy obviously, The

look in to and secure not opaque order truly at I program “Hey, somewhat should jobs". an have be to have You incentive level to say the governance say,

it. think wants he I

to The business view. talked certain a Senate on modified people. a pro He scale. his CDA has different I is President

them reach come I and to an think together need the two agreement. of

they’re my democratically the said and I the both is legislative remarks, in institutions, senate which As held governor.

the assembly have get election. men We this coming in reelected Tuesday a general

that to after because I you’ll activity, see reconstituted think houses. have expect election I

Jason Green

Got you light? tenant. it. talked a deals, business the expanding difficulties, started to And of given you some some then just on of about given those co-working, co-working concerns thinking are the about that have How come fundamental to WeWork

Michael DeMarco

grow the relatively name They to in about than WeWork think business good rapidly. as I longer credit. been considered just always be thinking didn’t and has has we’re that been the

I management growth I there. mean, both end from think WeWork’s I’d and like came problems just obviously. my comments to

We have location, this what have co-working would in size, market York we in XXX,XXX. which larger. market looking the not would so XX probably a lot little million-plus there’s it’s of you’d saying, only I a feet, business City is has, exactly and it. square mean, New a it’s We’re of very have

I feel about So pretty good addition. the

Jason Green

you. thank Okay,

Operator

ahead. from Tom of go The come next you. BTIG. Thank Please Catherwood question

Thomas Catherwood

questions here. A of Good cleanup guys. morning, Thank you. couple

additional that? And that quarter, this of to of and renovation? I means can got long have back. how portfolio operating with CapEx, space You or the of Bank marketing the which to the out be next something kind on that is X in Harborside the assume shell parcel can the steps kind that are you Deutsche What you pulled until put you asset? Does done? start that have happen part First,

Michael DeMarco

Sorry, few we’ve towards the gone months. last

way lays it One out. looking times we’ve mentioned at of is because of the building the that

panels have If building off. ripping their down go taken of been it sides today, up. the The panels you by new they’re there’s going and

have that or reskinned. been demolished to It’s expect inside. demolished totally already We substantially

well given couple in quarters. putting the possible. as building quick But over would the to of we online that’s as or bring next of after elevators its path that new think, effectively. well attached be rented to be space going back foot ferry and It tenants. by bathrooms something sought hopefully location and the the We’ll be actually We’ll brand-new would at be

Thomas Catherwood

already was your opening kind that remarks Got Mike, it. you in And for. mentioned all had of CapEx accounted

as correct? includes assume that well, I that So refresh

Michael DeMarco

And of out No, the played I quarters cash several over XX% will maybe and for quarter-by-quarter. be is number capital it spent so the about ongoing. Capital this flow said have to division. for pay next the basically We spend we it. far. the We for multifamily that

Thomas Catherwood

Okay.

flow, So out that it. comes of got retained cash

Michael DeMarco

Yes.

Thomas Catherwood

those rents first and were kind promotional – lumpy rents in Was that a because refresh. there know And I down looked that on of down at And one-time SoHo then, and resi. But fill the results my or bit Monaco kind to was MX, the Marshall, was a it it of there like there of second kind more a generation? roll there the leases the one of was were kind at question obviously, was just rolling the building NOI up. understanding too of rolling the roll that were generation a little was of Lofts. just of unit off down this

Michael DeMarco

stays April. That are occupied SoHo number, beneficiary bought was the and we’re XX% out discounts when today the we rents in us. is the we of moving worked well even same-store are it gave in building. That’s really nicely. Basically, it It rents up of just relatively not our – Those up. they bought rolling for because as

it. of some go and we find about it’s and things to of in bottom when pool units we I love options But have have In mean, more. love the one decks repricing other they new some that hottest people the them the retail people think in our get there’ll going summertime, don’t some be city. through at

The point. Monaco – comment on on made perfectly Marbella you

We’re cabinetry, basically turn basically out looking back redo the renovating those them units. a apartment. kitchen floors, We over, splashes, take it them full a XX-something month, turn new into

XX of price XXX square car foot way of $XXX deals. million Storeys, over has sought As the to XX,XXX our Bay Monaco, on units, you’re building XXX they street from million garage, planning because things unit approval we local, across the you and $XXX retail, put to know, holdings planned to Avalon approval going our cost to received on a of Marbella have

views. they new returns currently in so the shaking They It’s order that me. to have attached are But justify the Marshall they – head rents XXs we. We own. two to are his will be in projects believe great to his at those get as going construction there to do

the if would and online nice neighborhood think three come we’ll our renovate in high-XXs. totally change. street the when they we across we’re units have the little a So now, complement We in from years

preparing we’re So for that.

Thomas Catherwood

and stuff newer kind doing, race a product going looking kind to That’s URBY, is definitely at that that of when complete different to it those you phase be or a get the it’s ground whether be be of of But the kind going fair before may Avalon, there? finish the along a of to IX, would But next into Plaza too, the which type. point, Mike. you’re lines, VIII, you’re

Michael DeMarco

I both careful track. us But we the time. out it’s come think of might same keep

a you as own know, closer get acquired We few Tom, you As to of sites. them. the them. most water, of very number We’ve there’s

have on the to there’s has comes Street. Those Grove Albanese, at one Silverman by a the Columbus Avalon prep Charlotte work. basically first, projects a make do. will job. by done of to that Kushner, a order to to two only have buy be a of of off building lot lot and site aware So They and front of. a I’m one Monaco projects, equivalent. Christopher They cut work are out have still They go in

is phenomenal beat at excellent I would some a has But different then absorbed alternatives. and out additions. them these the think of ground. other would rate. market product have we And be the units we URBY these a

too More sense City. another building a At "There’s City City. of sense creating greater same that actually better. gets of and Park many adding So confident. concept. everyone neighborhood, at first Battery on units." in Each a creates place they units Look said Now Lion I pretty feel is example. it’s would keep Jersey added be

Thomas Catherwood

Thanks, Mike. All Understood. right.

Operator

you. Thank

take We follow-up Korchman. will a now Please from question go Emmanuel ahead.

Michael Bilerman

Look, one you were trick-or-treat, about which is again. the it? it’s Hey, -- Bilerman, talking Mike

Michael DeMarco

ahead. Maybe voice. you’re it’s costume. That doing you be would Michael pretending go Bilerman. Manny interesting but your Again, really It’s actually,

Michael Bilerman

going as Actually, to if I’m going up go a to dress space. I tenant though. Jersey City to looking know for don’t I’m

Michael DeMarco

be Hopefully, scary. it won’t

Michael Bilerman

Yes.

So of that’s that any in XXX,XXX or on discussions? rolling XXXX the separate from the does in those that’s tenants terms those XXX,XXX, into account take renewing, of

Michael DeMarco

those Separate They’re in tenants of are and conversations XXXX. we actually on to them. think good going stay – all having we’re

Michael Bilerman

part you Where square what as vacancy are a is talk of you XX,XXX million bit that you characterize square about trying of the – the can to pipeline? guess, talked feet of they XX,XXX How you’re co-working the the I of the So tenor talking to little in is X XXX,XXX. conversations? feet backfill the about XXX,XXX. would

Michael DeMarco

sure. Yes,

Michael Bilerman

to to obviously able change you’re meat more that be little to if because would get a dramatic it give that everything? a that, around Just bit leasing

Michael DeMarco

space. There’s for four tenants I co-working out feel we the have LOI an

So we’ve agreed to terms.

I looked it the Now matter The the the last company know good of space at a shipping somebody getting about. who feel is are of has it’s for market. They they existing years. pretty to tenants, so lease. couple a

very make we’re going think, I competitive to offer. a

on now. that paper trading We’re

financial which both have two the for RFPs We the companies. of received is last tenants, two

We an haven’t went – – so the did back. we We we gave RFP.

We’ll go we’ve we level. see to Now gone the back if again. next

as competitive think really coming can we more this, and people. things the as looking we’re very I competitive be I to be meat that’s to we’re it. got out. because for of going good And some be to We’re And going space on show

to like are enacted. we’ve now the fruition. we’ve coming the vision So People improvements made that

Michael Bilerman

discussing? or something And the these what type would that’s a you’re XXXX these that further timing Are leases out? start, of

Michael DeMarco

that I be because XX, out because you companies of size likely The small XX those could – the in complexity XX would be probably advance XXXX. to the larger months and to think come two the ones big ones of two move.

are something So this months is now XX that about out.

space, by which is So take shot. we it in out document they they whatever, have all build the lengthy, time one that because to or

Michael Bilerman

to talked about or negotiations. that’s XXX,XXX I That fallen number or feet had talking had in you the you’re if like that – don’t square previously that’s know today? through, embedded XXX,XXX those of Right. XXX,XXX just

Michael DeMarco

XXX,XXX actually. Yes, was WeWork

the So talked last time that. about we

is the The still going, other but XX,XXX WeWork. was XXX,XXX

Michael Bilerman

Okay.

So that’s not happening?

Michael DeMarco

the was was a the that for treat, deal trick – way. God No, or thank that. That too, by best

Michael Bilerman

Thanks. right. All Okay.

Michael DeMarco

minute. one again Michael, And,

Michael Bilerman

like you’d much as Mike. as time have I

Michael DeMarco

The one which came if committee. I going was mentioned, special depending haven’t I up mention was the thing Q&A in the to

my last I figured well I as give you’re caller, since So last on might it. report a

the end ask a want it to you me can we the question If then conversation call. on on

of my June four Dr. Myers, step Gilmartin, I committee my of So laid lead we Directors, my Director, and committee. had because special Cumenal; to Al Bernikow; Committee; basically head MaryAnne one put who governance was committee who’s audit Irvin on new had work in and the Reid, the formed Lisa Frederic off members needs; had out of my runs my

which liberty report disclosure started They’ve very in at because of hoping they somebody the worked requirements. to XXth They’re December with the middle So with work. household They’re not name Board undertaking the a choice. advisor, happy financial work. I’ve a at meeting. and It’s the hired to of I’m say the to

Board. worked also haven’t undergoing. the is, the but type city. doing advisor, And the some distinguished that just have no been to report We’ll is one to and name work just I update. the now say you hired a them, That want I household of processes of give but another gave XXth. question during is, that We’ve an back let’s lawyers Can information? thing Do I hopefully you they’ve in with a have make the second legal assurances, name. the

Michael Bilerman

on are the so down, you’re on leasing asset sounds sales going and embarking like they you’re progress working And to plan? strategic continuing it as

Michael DeMarco

we They’ll right. and exactly advice, something different. do maybe come back Yes, us give

if we to the so company. inquiry, Therefore, have Merrill advisors. two advisor. currently Merrill have is wants We have as we an an who – Lynch engaged anyone with make

of to going is another look basically basically Merrill’s firm opinion second kind The form and work of at belt give suspenders.

our asset individual I talked of I updating JLL when end have numbers, for mentioned as about valuations. before, the looking the We at year

So we’re every effort undertaking possible.

Michael Bilerman

committee And such one when the slate, from has the then member activist MaryAnne? as

Michael DeMarco

both Frederic by and two, both proposed Cumenal were Gilmartin No Grove MaryAnne Street.

Michael Bilerman

there Right. gotten new reconstituted? And have many Board then been how since meetings the has

Michael DeMarco

get but not and working Michael. meet data. I committee all because They’re obviously independent of I know But which information. about about basically like We’ve audit idea the they they special. meetings. even I’m had had numerous We’ve of have continuities, I’m give that time. of nor part ex-officio. conversations and hard. know being the committee, the I and don’t I calls, should

Michael Bilerman

number? same You phone still have the

Michael DeMarco

number e-mail phone works, works, same Michael… the Well,

Michael Bilerman

works. Still

Michael DeMarco

for all business, everything …open good. works,

Michael Bilerman

Thank Perfect. All right you.

Michael DeMarco

Mike, have of the a day, great day. Enjoy right. rest

Michael Bilerman

right. All

Operator

you. Thank

Jamie We go will from follow-up ahead. question a Feldman. now take Please

James Feldman

I Thanks. so from feedback any guess, the Committee far? just

Michael DeMarco

how a on undertake a a we – make conversation out report determination deliver will do will that’s they They strategy. will we’ve what update a and to what Board and have about do. No, about the the thoughts Board – not come

James Feldman

differently Okay. in the in than you’ve past? been what And you can mean, today doing mind, I your do

Michael DeMarco

advance could Well, you some think conversations. I

about, people be looking I dispelled. business. think the for not those will basically mean, fear as the Grove Max proposed that was also special was to more interest is a Board It’s control gives not underlays for when I they the thought over that was of best open a Street. formed, special by the need I credence think for it. company right, had had that there shareholders." It "Oh, this to undue Committee and committee conflict, the the was out

a Al in got three Well, of There’s Directors. Mack Irvin and the in seventh, case, legacy my eighth. right? Dr. that’s only as Myself XX. new hold Bernikow no longer the one out beyond directors. highest Bill opinion; new beyond I esteem Reid I’ve reproach had before reproach; we who six

then four joy to – proposed got independent. who I’m me two. elected before. Street Robinson, along We think talented And was Everyone independent. a Grove who’s new myself else guess, year very I very with independents, So all obviously well, I Rebecca work an we’ve and who’s which people. proposed knows one I consider the

have So we newly constituted Board. a

I from also one, is, would which a So Board history like pretty remarkable Mack-Cali rating ISS ranking. of we’re understanding one to is to right? point governance. out, an I went given on got from one my eight We a the

We Directors. have five female

I committee. a a African-American, have distinguished my comp runs my a them Chairman, who’s who runs who have I basically is of And person CEO. governance One committee. not

So we best fit all for the the requirements having practices.

James Feldman

well. ask Okay. but All right. different queue That’s out pretty helpful. to I actually worked got a that in the question,

Michael DeMarco

No problem.

James Feldman

it a structure revenue on? about a Is talk Is you’re working it the co-working lease Can of share? the you just straight…

Michael DeMarco

No.

James Feldman

…straight [indiscernible]? it flex Is office?

Michael DeMarco

for enterprise they’re be market will – more think it what it that’s will the It what we needs. be really building that’s and what

has use. it TI of kind I a that it, we good but a growth TI thought a I say, normally think made it rent I the schedule, was long decent package, have but $XX more the good package got gave, in I might up differential. be would very than would

for choice Manhattan to to type of and atmosphere. very a be have Merrill we tenant, relatively for of to forward good in looking good spot, if Lynch and that a wanted commute. close would example, type space you – a left you of It’s to modest cost get because weren’t of you you based co-working I’m you. Jamie, if having that be market can

Short here, park and commute know out then It pop you of the would Hills, to takes work only into You eight minutes. you office could rather quickly. the XX as from city

James Feldman

here of up appetite own? mean, mean, assume fill do I the can of – Right. that pretty And on kind appetite what’s stay. fast. I does idea enterprise is your leases seem guess, mean what’s like to to I you I short-term your to I your fill it

Michael DeMarco

We fine. good. locations. what good work No, tenant a to do. out no. think enough they’re wanted good I’m work No, I good. before difficult that They’re It they’re a they with a I’m know with should to of pro. to we’ve them at number dealt

James Feldman

Okay. shorter-term No, of entertain you I is, what of space? leases guess, I’m would like some asking that even direct to get rid

Michael DeMarco

It’s a model No. the think for No us. I’m would business right? don’t a not good right be I me, that focus guy. focus for

always thing process. doing We’re big pre-builds. interesting some XXX thought that stirs an Hudson up tenant was And my building. It’s a

partial feet who usually phenomenon, They floors. and XX,XXX, more a XX,XXX, are square in finding people want tend to XX,XXX We’re coming be people local.

XX,XXX, guys in to business who square buy city run want of for move a out the here XX,XXX, feet. XX,XXX Jersey Brownstone City a So

pre-builds some that break that’s XX,XXX the doing about the into will to units, seven about feet, thinking extent we’re about but maybe square of floor, XX subject. for on So our thinking

James Feldman

Thank Okay. you All right.

Michael DeMarco

the great All a Have best. day.

James Feldman

Thanks.

Operator

our I’d additional closing question-and-answer Thank speakers conclude for you. back session. now will to or like any to hand That our remarks. you. Thank

Michael DeMarco

few to enjoy for a our attention. so we weeks. us has safe everyone NAREIT Thank see day Bye-bye. in everyone, Halloween. forward on at and joining We’ll appreciate you this Look Hope continuing and your and thank, time much. conversations. very a themselves We you

Operator

Thank participation, conference now you That today’s for your conclude will ladies call. gentlemen. and

disconnect. now may You

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