Release Date: April 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide an update on the prospect activity you're seeing in your other development projects?
A: Peter Schultz, EVP of East Region, noted that activity is generally good across various markets like Florida, Pennsylvania, and Denver, with active prospects for all or portions of the space. However, decision-making is more deliberate, influenced by broader economic and geopolitical factors.
Q: What drove the occupancy decrease in Baltimore, and how is the Old Post Road lease-up progressing?
A: Peter Schultz explained that a known move-out in the Hagerstown submarket affected occupancy. The larger Old Post building took occupancy in December of the previous year, and the lease for half of the smaller building commenced in the first quarter.
Q: Are any markets or assets benefiting from additional demand due to the Key Bridge tragedy in Baltimore?
A: Peter Schultz clarified that there has been no change in demand or impact on tenants due to the bridge collapse, as temporary channels have been reopened and the port is expected to return to full service soon.
Q: What's happening on the property operating expense side, and what can we expect for the rest of the year?
A: Scott Musil, CFO, mentioned that the increase in property expenses for the quarter was related to recoverable snow removal expenses.
Q: Could you update us on your development lease-up guide and the timing of its impact on FFO?
A: Scott Musil responded that about 2.3 million square feet of development leasing remains in their forecast, with most leasing assumed to start in the latter half of the year. The leasing progress is as per their expectations, but the timing of lease commencements can vary.
Q: What is the current situation with the three large lease expirations in Southern California?
A: Peter Baccile, President and CEO, mentioned that they had assumed one of the three would not renew, which is on schedule. Johannson Yap, CIO, added that while completions have exceeded absorption in Southern California, causing vacancy rates to tick up, renewal activity remains active.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
