BXP Inc at Nareit REITweek: Strategic Growth and Market Challenges

On Tuesday, 03 June 2025, BXP Inc (NYSE:BXP) participated in the Nareit REITweek: 2025 Investor Conference, providing insights into its strategic direction and financial outlook. The company highlighted opportunities for growth in Funds From Operations (FFO) per share, driven by increased leasing activity and strategic asset sales. However, challenges remain, particularly in certain market areas like San Francisco. The conference call, hosted by John Kim of BMO Capital Markets, featured key executives Owen Thomas, Doug Linde, and Mike LaBelle.

Key Takeaways

• BXP aims to grow FFO per share, leveraging leasing activity and asset sales.
• The 290 Binney Street project, fully leased to AstraZeneca, will boost cash flow by $45 million to $50 million.
• Asset sales targeting $75 million by year-end to reduce debt and enhance earnings.
• Current occupancy stands at 87%, with a goal of surpassing 90% by year-end.
• Market strength noted in Manhattan, with challenges persisting in San Francisco.

Financial Results

• FFO Growth: BXP is focused on increasing FFO per share, with each 1% rise in occupancy contributing approximately $0.20 per share.
• Leasing Activity: Reported leases in Q1 increased by 30% compared to the same period in 2024. Over the past year, leasing has grown by a similar margin.
• Development Pipeline: The 290 Binney Street lab project, fully leased to AstraZeneca, is expected to significantly enhance cash flow in the first half of next year.
• Asset Sales: The company plans to generate $75 million from asset sales by the end of the year, aiming to repay debt and improve earnings.
• Debt and Leverage: BXP’s net debt to EBITDA stands at 7.9x, with plans to raise $200 million to $400 million through asset sales to manage leverage and fund development.

Operational Updates

• Occupancy: Current occupancy is approximately 87%, with a target to exceed 90% by year-end. BXP expects to maintain around 87.5% occupancy through 2025.
• Leasing Pipeline: As of late April, 1.1 million square feet of leasing was executed in Q1, with 1.5 million square feet under negotiation recently.
• Market Performance: Manhattan remains the strongest market, with the Back Bay of Boston and Northern Virginia also showing robust demand. The West Coast continues to experience technology-driven demand, differing from East Coast trends.

Future Outlook

• Development Projects: BXP plans to deliver tenant-ready space at 343 Madison by early 2029, with occupancy expected in 2030 or 2031.
• Asset Sales Strategy: The company will continue consistent asset sales to deleverage and support development initiatives.
• Market Recovery Expectations: While Manhattan shows strength, San Francisco is anticipated to take longer to recover.
• Residential Development: BXP will pursue residential development in mixed-use projects, utilizing suburban land assets.

Q&A Highlights

• Land Sales in San Jose: One downtown site is on the market, with plans to re-entitle two additional sites for residential or industrial use before sale.
• 290 Coles in Jersey City: This multifamily development is a unique investment, with most capital invested on a preferred basis at a 13% return.
• 343 Madison Project: If no lease terminations occur by July, BXP is committed to constructing the building, with anticipated rents exceeding $200 per square foot.

For further details, readers are encouraged to refer to the full conference call transcript.

Full transcript - Nareit REITweek: 2025 Investor Conference:

John Kim, Host, BMO Capital Markets: Alright. Thank you so much for joining us today. My name is John Kim with BMO Capital Markets. It’s my pleasure to be hosting this presentation with BXT, formerly known as Boston Properties. With us today, Owen Thomas, Chairman and CEO Doug Linde, President and Director and Mike LaBelle, Executive Vice President, CFO and Treasurer.

I think at this time, I’ll just pass it off to Owen for opening remarks and why people should be investing in BXB today.

Owen Thomas, Chairman and CEO, BXT: Great. John, thank you for hosting this panel. Great to see all of you. Thank you for your interest in our company. The message that we’ve been giving in our meetings today about why you should own our stock is we believe we have a great opportunity to grow our FFO per share over the next couple of years.

So why is that? First of all, we’ve seen strong and accelerating leasing activity. The leases that we report every quarter have been certainly in the first quarter versus the first quarter of ’twenty four, it was up something like 30%. If you look at the last four quarters versus the four quarters before that, it was up something like 30%. So we’ve had very strong leasing activity.

A lot of the dislocation and concerns that are out there about tariffs and bills and so forth. We’ve had a lot of questions about the impact of that on our leasing activity. And so far, the impact on our leasing activity has been not at all. The acceleration that I described is continuing. So if you take that leasing activity and then you overlay that with our rollover exposure in ’twenty six and ’twenty seven, both of those years it’s materially under 5%, we have an opportunity to grow the occupancy of our company.

And right now, we’re running at about 87% occupancy plus or minus. And at our peak right before COVID, we were at 93%. And I’m not suggesting in a year that we’re gonna have a six point jump, but it shows you what the potential of the firm is. And every point in occupancy, Mike, is about 20¢ a share, plus or minus, of FFO. So that’s a big opportunity for us, accelerating leasing, low rollovers.

The second thing is we are continuing to deliver a development pipeline. And most notably, in the first half of next year, we’re gonna be delivering a project that we’ve been working on for five years called 290 Binney Street, and it’s a lab building. It’s in East Cambridge. It’s 100% leased to AstraZeneca, and it will add about 45,000,000 to $50,000,000 of cash flow to the income of the company, which is another plus for next year. And then lastly, and we’ve been talking about this on our earnings call, we’ve been pretty aggressively selling nonproducing assets.

So for example, right now, we have four land parcels that we have under contract in various stages of closing, and they will generate about $75,000,000 in proceeds before the end of the year. And we have more behind that. And this is also accretive because these properties actually, they’re negative FFO because we’re paying carry on them. And when we get that cash flow, we can repay debt, which costs us around 6%. So that also accretes earnings.

And we hope to do more sales in the quarters ahead. So that’s what we see as the opportunity and we think growing FFO will increase our share price.

John Kim, Host, BMO Capital Markets: Thank you. Since Liberation Day, office REITs have gotten hammered pretty hard, including DXP. But you mentioned on your first quarter call that there’s been no real change in demand on the office leasing side. Is that still the case today? Has that carried on through May?

Doug Linde, President and Director, BXT: So we had our earnings call on April 29, I think. And at that time what we sort of described was we did about 1,100,000 square feet of leasing that was executed in the first quarter and we had a pipeline of leases under negotiation of about 1,175,000 square feet. And then we had about 1,700,000 square feet of what I would refer to as our sort of pipeline of things that were percolating. And call it thirty, four days later our leases under negotiation is at just under 1,500,000 square feet and that other activity is still about 1,700,000 square feet. So we’ve actually seen a modest acceleration in our leasing volumes and our leasing activities over, call it, the last thirty days.

So I would say things are getting a little bit better, not a little bit worse. Whether we have a recession or not or whether we have stagflation or not, it doesn’t seem to be impacting capital decisions that are being made by our current and potential clients. Just one other point that I just want to make because it’s really important on occupancy. The leasing that we’re doing now is leasing on either vacant or 25 expiring space. So of the 1.4 to $1.5 that we are currently working on, about $1,000,000 of that will be additive to our occupancy as we move into 2026 because it’s on currently vacant or known expirations.

And that’s really, really important in terms of growing our occupancy. Our leased square footage is, so the amount of space that’s actually leased by BXP that’s quote unquote on our books, is about two fifty basis points higher than what is quote unquote occupied. And all of that will be occupied by the end of twenty twenty six. So it sort of gives us the clarity of understanding where our opportunity is coming from relative to our existing portfolio.

John Kim, Host, BMO Capital Markets: So on that note, you have occupancy guidance for the year at 86.5% to 88%. Your leased rate is 89.4%. Where do you think that ends up by the year?

Doug Linde, President and Director, BXT: I would hope that we will be above 90% by the end of the year. I think where we’re sort of geared towards in terms of our occupancy is we and we started 2025 at 87.5 and I think we’ll be around 87.5% sort of in the midpoint of that as we end of the year and we’ll be probably somewhere between two fifty and three hundred basis points higher on our leased square footage.

John Kim, Host, BMO Capital Markets: Can you provide an update on your markets, which ones are the strongest versus the weakest in terms of leasing activity? Manhattan is obviously the strongest, but just love to hear your updated thoughts.

Doug Linde, President and Director, BXT: Yeah. So I’m trying to do this as succinctly as possible. Manhattan is by far the strongest market in our portfolio by a factor of three or four. There’s just more relative supply challenges in this market, I. E.

There is no availability and that is providing us with heightened activity, quicker urgency associated with leasing decisions, and better economics. We are pushing rents and our rents will probably be up a meaningful amount double digits from a year ago to where they are quarter to quarter in 2025. The other two markets where things are pretty good still are the Back Bay Of Boston, which is where our dominant portfolio is in our Massachusetts portfolio, and then in Northern Virginia, in Reston, Virginia. Those two marketplaces for us, our portfolios are in the high 90s from a lease percentage, which means we have very little availability, again, which means we can push rents in those marketplaces. That’s the sort of thing that impacts us.

And I would say nobody is talking about work from home or remote work on the East Coast. It’s like not part of the conversation. When I jump to the West Coast, things are a little different. The first is the characteristics of where the demand’s coming from are different than the East Coast. So on the East Coast, primarily we’re talking about financial services, asset management, people who doing something with other people’s money.

On the West Coast, it’s still a technology oriented market. And we are still not at a point where we’re seeing the kind of demand that we saw from 2000 and, call it, 12/2019 with enormous blocks of space being absorbed by large technology companies. There is clearly AI demand. There is clearly AI absorption. The Bay Area is clearly going to be the place where the AI ecosystem is at its strongest.

But so far, we’re not seeing 10 unicorns taking half a million square feet of space. And it’s that sort of difference between what’s going on there versus what’s going on on the East Coast where it’s all financial services oriented and there’s a lot of incremental growth of a meaningful size by mid sized firms. That’s the difference between the East Coast and the West Coast from a leasing perspective.

John Kim, Host, BMO Capital Markets: And when do you think San Francisco, which is the most controversial market I guess, when does that become New York?

Doug Linde, President and Director, BXT: If I knew that I wouldn’t be in this room. I can tell you that right now. I think that it’s going to be a longer period of time. It’s not a 2025 or 2026 experience. Look, have a whole host of what I would refer to as nascent companies that are working in and around artificial intelligence in lots of different ways.

And we have a couple of what I would refer to as the larger large language model infrastructure companies, which are Anthropic and OpenAI. Those companies are big. Those other companies, however, are pretty small. And they average probably 10,000 to 50,000 square feet. So we need a lot of those companies to be growing in a meaningful way to really get San Francisco going.

And I just think it’s going to be a matter of time before we start to get enough granular growth from enough of those companies to show a meaningful impact on the overall availability of space in San Francisco. That doesn’t mean that there won’t be sub markets and sub pockets of really strong growth. If you’re looking for space in a view building in north of market, you’re paying up for it and there’s a relatively modest amount of availability. If you’re looking for a low rise space in a great building, there’s a lot of availability and the economics are challenged.

Owen Thomas, Chairman and CEO, BXT: Yeah. Don’t and also I would just add to Doug’s comments on San Francisco, a couple other things. Don’t forget, it’s a smaller market. New York’s ZIP code 400,000,000 square feet of office. San Francisco, depending on how you measure it, 60 to 80,000,000 square feet.

So even though it’s more available, you don’t need as much leasing activity to have that market tighten up. And then look at the history of the city. I mean, if you look at where rents have been and where vacancy, it it the city has volatility. And volatility means it goes down as it has during COVID, but it also comes back. And it also comes back quickly.

But I agree with Doug, it’s very hard to divine the exact timing for that.

John Kim, Host, BMO Capital Markets: The DNA of BXP is the developer. But do you also look at acquisition opportunities? And would that be for existing assets or really just for land sites for future development?

Owen Thomas, Chairman and CEO, BXT: Well, right now, we are always looking for new acquisitions. I mean, that’s true always. And I would say, particularly in this environment, we think acquisitions should be available at interesting prices. And recall, for those of you that watch our company, about five quarters ago, we bought interests in three buildings that we already own from our joint venture partners. We thought at that time at interesting prices, and we thought that might be the start of something.

But this cycle is actually quite different from what we’ve seen in the office world in the past. And the reason is is even though the market has softened up and vacancy has increased, the clients have all migrated into the best buildings. So if you look at the difference between what we call premier workplaces, which are the top 10% of buildings and everything else, it’s way different. The vacancy rates are overall levels are five percentage points or about a third lower. Asking rents are 50% higher.

There’s net positive net absorption versus negative for everything else. So in that environment, it’s much more difficult to find things to buy. Most of those most of the buildings that are what we would be interested in, which are the premier workplaces, they’re not for sale, they’re not distressed. And the owners, even though I think they could get a good a reasonable cap rate for their property, they may be holding out for what they perceive to be a better cap rate. So what we have found is in this cycle, acquisitions have have actually been quite difficult.

And a little bit to our surprise, we’ve been finding some very interesting development opportunities. Our team in DC was able to concurrently buy a note on a building for a little bit over a hundred dollars a foot on a on a metro stop. The plan is to demolish the building and build a new one. Concurrent with that acquisition, they signed a lease with a tenant to take half the property, and they signed an LOI with another tenant to take more or less the other half of the property, and that tenant just signed their lease. And the overall yield on the deal to our capital is over 8% unleveraged.

And, you know, we can’t go out and buy a premier workplace in any of our cities that’s fully leased at an ACAP. That’s not available. And but yet we can create them through developments. So, again, a little bit to our surprise, this seems to be a better allocation a better decision for allocation of our capital on the new investment side.

John Kim, Host, BMO Capital Markets: So an asset like 590 Madison, which RXR ended up winning, is that something you looked at and were interested in acquiring? And can you just talk about the overall market as far as investors in the office?

Owen Thomas, Chairman and CEO, BXT: Yeah. So it is again, there have been very, very few assets that I would say fit into our premier workplace desire. By the way, these are assets that get offered to the market. If we’re doing our job, we try to find assets that are not being offered to the market. So all of our regions have charted which assets they’re interested in.

And as appropriate, you know, we’ve been talking to those owners and trying to figure out if we can create some opportunities for our company. But $5.90 was offered to the market by a state pension plan through a broker, and we did look at it. And the pricing is somewhere in the mid fives cap rate, and it’s a little bit over a thousand dollars a foot. And to get up to a higher yield, you have to lease the property up from 85% where it is today. So there’s a little bit of lift in that.

And then there’s also a plan that some, I think, of the acquirers believed in, which is it was at the corner of 50 Seventh And Madison, which is an interesting retail corner. So I think there was a ground level retail redevelopment play in the asset that could increase the lift. But I think it’s a real and it’s not a new building. It’s an older building, and it’s got a fairly narrow glass line. So I think it’s a good example of the pricing that’s coming out, you know, for buildings like that that have some lift but not a lot of lift.

So we we contrast that, okay, with our 343 Madison development, which we’re getting close to launching. And there, we’re gonna have a brand new building with escalator access into Grand Central Terminal, and we think that the development yield for that project is over 8%. So we think a better allocation of capital for our company, if we can find developments like that is to do those because we think the buildings are higher quality and we’re getting them at a higher yield.

Doug Linde, President and Director, BXT: And I would just add that everything Owen said was 100% accurate, But what he didn’t say was there’s a difference between NOI and cash flow. And when you do a development like 343 Madison and you’re signing leases that generally are somewhere between ten at a minimum and twenty years and you’re building a brand new building, you don’t have what’s referred to as capital expenditures on that building for a long, long time. And when you’re purchasing a building like 590 Madison, which has a habitual rollover, the difference between your NOI yield and your cash flow yield is pretty significant. I’m guessing it’s a couple of hundred basis points. So you’re talking about a cash yield of 8% or a cash yield of somewhere in the low fours, maybe the fives on another building.

And quite frankly, you know, given our cost of capital, it’s really hard to make sense of those kinds of investments when we have the opportunity to invest money into a building like 343 Madison.

John Kim, Host, BMO Capital Markets: So let’s talk about 343 Madison. You’re record saying you’re going to start it this year. You mentioned 8% yields on it. What kind of rents you need to achieve those yields given inflationary pressures?

Owen Thomas, Chairman and CEO, BXT: Yeah. So just to go be a little bit more precise on language about where we are with this. So we the build the land under the building is owned by the MTA. And we have signed a ground lease with the MTA. And we have until the July to not go forward with the ground lease and if we not don’t go forward we get reimbursed all the capital that we’ve invested in the project.

But by the July if we don’t terminate the ground lease we’re committed to build the building. So we haven’t done that yet. But given all of what you’ve heard from Doug and I about the strength of the market and the attractiveness of this development, I would have every expectation that we would go forward. So in terms of rents, as Doug described, the Midtown New York office market is extremely tight and attractive. Vacancy rate is sub 7% and there are no blocks of space over 100,000 square feet available.

So we think the rents that we can achieve in the building average a

Doug Linde, President and Director, BXT: little bit

Owen Thomas, Chairman and CEO, BXT: over $200 a square foot. So that’s probably 150 to 170 gross in the base and getting up to close to 300 at the top of the building. And we think that’s achievable in today’s market. This building, by the way, the other thing about the building that’s a little bit different from some of the other developments that we’ve done over the years is it’s a large building, 950,000 feet, and it’s a tall building, but it has reasonably small floor plates. They’re 25,000 feet at the base and then they’re about 22,000 feet at the top.

So what that means is it’s not likely that there’s going to be an anchor client for this building for like half of it because a client that’s 400,000 square feet is or maybe 500,000 feet, they’re spreading out over a lot of floors versus being in a building with a floor plate that’s 150% to 200% of that.

Doug Linde, President and Director, BXT: And I would just say that one of the things that’s going on and I’m assuming that what we are experiencing at BXP is not dissimilar from what some of the other landlords on Park Avenue are experiencing. There’s a I don’t want to use the word desperation, but a nervousness about where rents are going. And we are being approached in our existing leased buildings by our clients to do early renewals right now. And these are early renewals for as early as 2028 and as late as 02/1931. And we are asking for rents that are meaningfully higher than where quote unquote rents in the buildings are today.

And as you think about what your opportunity is as a client in Midtown and you’re looking at where the rents are likely to be an existing product and you look at where the rents are that we’re gonna be asking for 343 Madison, yes, there’s a premium, but there’s not a shockingly high premium for being in a brand new energy efficient, sustainable, side core building with great amenity space with outdoor areas with significantly higher ceiling heights than a traditional building, with a very different structural system, there’s a real value opportunity here. And we expect that one of the 150,000 to 400,000 square foot clients that we have made proposals to is going to step up and say, we think we’re prepared to make a decision today to lease space in this building for an occupancy in 2030 or 02/1931.

John Kim, Host, BMO Capital Markets: New York is one of the markets that has more conversions out of office than new supply being delivered. So 343 Madison, what’s a realistic time frame as to when you complete the building and the occupancy starts?

Doug Linde, President and Director, BXT: Yes. So we we if we’re if we have somebody who’s ready to go soon, we would be in a position where we could deliver space for tenant build out in sometime in early two thousand twenty nine for occupancy in 2030 or ’31.

John Kim, Host, BMO Capital Markets: Moving on to Washington, D. C. Can you talk about 725 Twelfth Street? Is this a one off opportunity for you? Or are you looking at other land sites that you could develop and meet the demand?

Owen Thomas, Chairman and CEO, BXT: Yeah. So this I described the deal a little bit earlier. This was the project that I mentioned where we bought the note and concurrently signed two leases and now have a new building development in Washington, D. C. That’s a market that’s close to 20% vacant.

So that’s the kind of deal where we wouldn’t build the building on spec and hope that tenants would show up. We would want a pre lease. And we have had other law firms come to us when they saw that deal get done, and they are interested in being in new buildings. So we are looking around for other potential sites. And if we did something else like that in DC, it would be a very similar structure where we would know what the tenancy of the building is before we committed to the site.

John Kim, Host, BMO Capital Markets: Mike, how do you fund all these projects? Your net debt to EBITDA is 7.9 times on adjusted basis. I think you said you were comfortable going higher than that near term, which is is atypical for you. But can you talk about the balance sheet strength and funding?

Mike LaBelle, Executive Vice President, CFO and Treasurer, BXT: Sure, John. Thanks. Look, our leverage is a little bit higher than it has been and it’s primarily due to we’re in the kind of later stages of funding some of the development that is underway right now. And as Owen mentioned, the 290 Benning Street project, which delivers next summer, is going to generate a significant amount of immediate cash flow because it’s 100% leased and that’s the largest project in our pipeline. So that will delever us when that occurs.

So our leverage will creep up a little bit over the next few quarters until that occurs. From a funding perspective, there’s a couple of things. One, we have free cash flow. We’ve been using our free cash flow the last several years to fund development as our primary external growth vehicle and we will continue to do that as a primary funding source for the development. And then we also are looking at an asset sales program primarily non income producing suburban land holdings that we have.

And so we have several under contract and we have several others that working on and we believe that we can raise somewhere between 200,000,000 and $400,000,000 over the next two to three years that will be utilized to either reduce debt or fund development needs that we have to fund. And then we could use incremental debt as well to fund additional development which as it generates an 8% yield is accretive to the company and also helps delever us as it comes in.

Doug Linde, President and Director, BXT: Yeah, I would just add that the other thing we’re doing and we don’t need we’re not gonna be bashful about it. We’re gonna sell some assets and we have an asset that’s under offer right now called 1330 Connecticut Avenue in DC. And it’s a stabilized building at seven years of average weighted lease length still with a law firm. It’s a fine building. It’s a Dupont Circle.

And we’re gonna see what the pricing is, and we’re likely to be a seller of what we would deem to be our less valuable, less growthy assets on a going forward basis, and we’re gonna use that to both delever and fund development as well. So don’t be surprised to see us selling assets, you know, on a consistent basis as Owen described, which is what we were doing pre COVID. And we’re just like, we’re gonna get back at it and and continue to do that.

John Kim, Host, BMO Capital Markets: I think I’ll take a break now to take any questions from the audience. The question was the decision in San Jose to sell land. Is that what it was?

Owen Thomas, Chairman and CEO, BXT: Yeah. There there has been some bad bad, I’d say, inaccurate press in about our land sales in San Jose. We have four sites, and one that was mentioned in the press was Platform 16, and that’s actually the one that we’re not trying to sell. So it was misreported. But again, was going back to the land sales that I talked about.

None of those deals are in the $75,000,000 that I talked about that we have under contract that we’re selling right now. This is the future, what Mike talked about. But we have a site in Downtown San Jose that we have on the market right now we’re looking at selling. And then we have two other sites in the one is in North San Jose and one is an adjacent community. And one of those we’re reentitling to residential, the other probably to industrial, and then we’ll sell those assets as well.

So these are sites that, you know, in a different marketplace we thought could be developed into office. In the current marketplace and what we foresee as the future marketplace, much less likely. So what we’d like to do those assets are they’re not generating any cash flow for shareholders, so you’re not valuing them for anything. And so if we can get the cash, reduce debt, accomplish some of our development spend, we’re creating value in the company.

John Kim, Host, BMO Capital Markets: We have time for maybe one more question. If not, I’m going ask about two ninety Kohl’s. So that was an interesting development for you because it’s Jersey City multifamily, standalone multifamily development. You’re providing preferred capital to it. Does this open the door for you to do more type of these type of investments and developments?

Owen Thomas, Chairman and CEO, BXT: I think I would describe Too Many Coles as a unique, probably one off situation. First of all, New York was the only region in the company where we had not done residential development. So that was a positive. And then the second thing that probably is most important is most of the capital that we invested in the project was put in on a preferred basis at a 13 return. So because there was already a landowner that had gone in and they subordinated to our position.

So between the experience gain, the structure of the transaction, and then we’re a co developer, so we’re earning compensation for that. We thought it was a good use of corporate capital and also a good opportunity to gain some experience. We will be continue to be an active residential developer. But I think the the deals will be in two primary categories. One, we have mixed use developments with office and also associated retail, but also residential, and we wanna keep building those.

RestonNext phase two is the best example of that. We just delivered a project called SkyMark very successfully, and there’s some additional phases that over time we think we’ll be able to develop. And then the other thing that we’re doing on the residential side is we’re using our skills to create value in the land that we have. So much of our land is located in suburban towns, and many of those communities need more housing, and they’re much more willing to, entitle residential developments. So we have a project, a building that was at the address of 17 Hartwell Avenue in Lexington, Mass.

And we went to the town and they entitled us for a 350 unit apartment complex. And the value of the land and we’re going forward with the project. We’ve identified an institutional partner to put up most of the equity capital, And the value of this land has been greatly enhanced by the fact that we got these entitlements. So that’s what we’re going to be doing with our residential capabilities going forward.

John Kim, Host, BMO Capital Markets: Maybe I’ll end this with one final question. Talked to many different corporate heads and geographically in many different markets. Is there anything that you see on the rise that may surprise the market in 2025? It could be for any one of you.

Owen Thomas, Chairman and CEO, BXT: Well, look, I think the surprise for me has been what I talked about right off the bat, which is every day we pick up the press, we’re fearful of reading about some text that about a tariff or a policy change. And so there’s a lot of dislocation going on, but our leasing continues to move forward. So I think that’s a surprise we’ve experienced, and I think we’ll continue to experience it.

John Kim, Host, BMO Capital Markets: Thank you so much for attending.

Owen Thomas, Chairman and CEO, BXT: You, John. Thank you for coming.

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