BXP (BXP) Q3 2024 Earnings Call Transcript

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Wednesday, October 30, 2024 astatine 10 a.m. ET

• Chairman and Chief Executive Officer — Owen Thomas

• President — Douglas Linde

• Chief Financial Officer — Michael LaBelle

• Senior Executive Vice President — Ray Ritchie

• Executive Vice President, New York Region — Hilary Spann

• Executive Vice President, San Francisco Region — Rodney Diehl

• Executive Vice President, Washington, DC Region — Jake Stroman

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I'd similar to invited Owen Thomas, Chairman and Chief Executive Officer; Doug Linde, President; and Mike LaBelle, Chief Financial Officer. During the Q&A information of our call, Ray Ritchie, Senior Executive Vice President, and our determination absorption teams volition beryllium disposable to code immoderate questions. We inquire that those of you participating successful the Q&A information of the telephone to delight bounds yourself to lone 1 question. If you person an further clarity oregon follow-up, delight consciousness escaped to rejoin the queue. I would present similar to crook the telephone implicit to Owen Thomas for his ceremonial remarks.

Owen Thomas: Thank you, Helen and bully greeting everyone. Our show successful the 3rd 4th demonstrated BXP's continued resilience and provided grounds of spot and superior marketplace recovery. Our FFO per stock was $0.01 supra our forecast and successful enactment with marketplace statement for the 3rd quarter. We completed implicit 1.1 cardinal quadrate feet of leasing successful the quarter, 5% greater than the 3rd 4th of 2023. And for the archetypal 3 quarters of 2024, our leasing measurement was 25% much than levels we achieved successful the archetypal 3 quarters of past year. Weighted mean word for bureau leases signed this past 4th remained agelong astatine 7.2 years and we proceed to person awards for our industry-leading enactment successful sustainability.

In conscionable the past quarter, Time Magazine and Statista named BXP 1 of the World's Most Sustainable Companies and NAREIT awarded BXP the Sustainable Design Impact Award for our 140 Kendrick Building A redevelopment project. Now, moving to the economical and operating environment. We judge the astir important marketplace forces for BXP, that being involvement rates, firm earnings, instrumentality to the bureau behavior, outperformance of premier workplaces, and valuation successful the nationalist and backstage markets are each presently moving successful our favor, serving arsenic a tailwind for BXP's performance.

The Federal Reserve chopped the Fed funds complaint 50 ground points astatine its astir caller September gathering and has signaled for 2 much 25 ground constituent cuts successful 2024 and further reductions successful 2025. The astir precocious released ostentation and GDP maturation economical information has signaled the system is perchance stronger than antecedently believed and enactment into question the magnitude and timing of further Fed funds complaint cuts. No substance however this statement resolves itself, the facts are short-term involvement rates are coming down, which is precise affirmative for existent property valuations arsenic good arsenic firm net growth, different important operator for BXP's show fixed its correlation to leasing activity.