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Franklin Street Properties (FSP)

Participants
Scott Carter General Counsel
George Carter Chief Executive Officer
John Demeritt Chief Financial Officer
Jeff Carter President and Chief Investment Officer
John Donahue President, FSP Property Management
Toby Daley Senior Vice President and Regional Director, of Atlanta and Houston
John Guinee Stifel
Dave Rodgers Baird
Rob Stevenson Janney
Craig Kucera FBR Capital Markets
John Kim BMO Capital Markets
Call transcript
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Operator

Good day and welcome to the Franklin Street Properties Corporation Third Quarter 2017 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Scott Carter, General Counsel. Please go ahead.

Scott Carter

Good morning and welcome to the Franklin Street Properties third quarter 2017 earnings call. John are Chief our our Financial Chief Officer; morning John Executive President this FSP Investment our of Demeritt, Officer; and me George Chief Carter, Officer; and Property With Management. President Donahue, Jeff Carter, Senior Daley, Director of this Director and and Denver and Will and Toby Atlanta of President Vice McMullen, Vice Friend, President Minneapolis; Also with Senior are Vice and Senior Regional me Houston; morning Dallas. President Regional and of Regional Patty Director

results Demeritt, of John differ that to must these the XX-K report over about Securities call forward-looking important file the turn factors, purposes the for those note for indicated remarks I Actual which is following statements as the various future result the prospects XXXX. of Private Please with Litigation in our December year constitute section discussed Safe on we the ended I Reform from may risk statement. of company SEC. and Before by a materially factors read annual including make various XX, statements may Harbor Act the XXXX, for the expectations, forward-looking provisions Form that plans of on may under those

company’s the November only In forward-looking statements addition, these represent as today, XXXX. of expectations X,

contained press which the section www.fspreit.com. views be may upon the While from not Any FFO company’s website of GAAP company A of as specifically of in obligation this date call, statements, to statements yesterday’s representing Investor operations, to any we release, today. is it forward-looking At disclaims or or income relied our these during any may FFO. available estimates should forward-looking as elect Relations at funds subsequent times to update so. to to refer is net reconciliation the do in

turn call I John? Now, John. over to the will

John Demeritt

also we some debt more transactions. investment to will and a will leasing detail provide that, in Carter Jeff third activities. Afterwards, our and with our and will will you, our and bit our And brief quarter of remarks. performance talk Carter questions. results disposition following everyone. I On call, activities. will be begin discuss happy John morning discuss today’s overview about Thank your Scott take good a recent of George Donahue his discuss

a SEC XX-Q, refer our website. last comments mentioned, our As reminder, with to filed release, on found today the can as earnings and package were will night supplemental all which and be Scott our

of was had flat share increase per $X.X funds the reported August than it for December $XX to FFO weighted from three from acquisitions we or $X.XX was on from last XXXX. the shares Compared have XXXX. third year. million XXXX, of in We quarter operations basis of was share a FFO average up quarter of or about though third primarily and the higher somewhat we made The FFO June, per million,

and end the facility impact a Tuesday, look take I last great these the a last our balance unsecured we XX, available which I a issued September ratio at billion but we at had Turning end has at and into about that From XXXX, of we to have credit fact We you a our forma sheet, release pro liquidity press coverage debt-to-service illustrates really of on the placement and debt that. suggest think debt importantly, $X.X outstanding was entered week. times. QX, more about year standpoint, million our a schedule private of debt $XXX transactions revolver recast X.X about that of

million we $XXX our have we Some revolver now this are key points about $XXX available increase not leverage by million, we from increase did these so revolver. did first, on transactions, so capacity

to on some do. $XXX end on are Second, going the about at liquidity that of we have based million believe we revolver year we will transactions

being with average increased the years about structure X interest value-add out we align that we more of Those maturity long-term project at helps have core now capital effects properties our have it us X.X our fixed termed We our in rates. debt debt have weighted XX% more and to now, to really markets.

XX, closed received Baltimore, of $XX.X October applied on against on proceeds revolver. addition XXXX, in million In sale owned we we there property the were a and East about that

of support transaction group company. private the us big supported Franklin banks with have very facility commitment lenders placement We to was are the we our consisting that and appreciate. pleased a and which bank we insurance met investors entered very we a really and these the a the number from that outcome And pleased credit made Street, we first great our XX really like with that to into of

We created senior Moody’s outlook also the they million same maturities these the rating. over can debt stack We affirmed this interested. turn at and near-term that investment for grade more for out call I on to notes the the company. placement of have unsecured point BaaX you and has questions Q&A cover our the George. rating if rated George? believe wanted private have that, during our better will transactions I a to with stable are addressed $XXX With

George Carter

long-term this to to might Franklin is could John back could earnings perspective that call I are and number to a we give to of objective last again XXXX, transition The earnings as back and be some we one FSP XXXX first in XXXX in we and FFO Properties how sustainable. what’s believe doing. will of happening was to our we it worthwhile achieve been that call. thought at be look you, Thank our growth welcome third and quarter the XXXX have try to Street earnings call Since

CBD located our the it to core X We and point, approximately markets. real transformation longer set life, more office occurring focused, office located now And urban markets. our more constrained long property to tipping value reached land within XX% so suburban our from the we office felt of a with of core those vertical add portfolio within finally of our infill properties geographically eclectic urban of diverse assets more a square footage set X assets

XXXX of then to share larger space better reduction adding time result assets a was through higher FFO and these growth value year X will basis. this vacant between receiving to as share properties at timing differences meaningful of a in of per as lower tenant to rent we the expirations, pricing carry being have majority in generally be Ultimately them, over targeted FFO per redeployment create office long-term on our acquisitions replacement with per properties we differentials when suburban office disposed believe selling more last The longer and the X% restart them peak from that properties, at proceeds per during suburban primarily per that a of of value properties cap period as urban X-year share XXXX. result $X.XX growth between square that a sustainable as leased in of vast portfolio lease $X.XX in share property such Our a urban sales had than we into components $X.XX leasing approximately was This a XXXX XX% about and value-add suburban of transformation proceeds for that office near-term disposition over which acquired points, price and will exist shareholders. level properties buying. risk property particularly from we declined were value well able be which inherently to X-year cost primarily these a resulted foot and the were period those rate acquired FFO

transition the FFO to So, in growth we XXXX see again happening.

feet up share, growth the about for per portfolio, market FFO and and prospects for are The currently about core in at current our FFO $X.XX We not suburban point, XXXX. contrasts XX% full about Marquette, the XX% between has approximately positive feel guiding vacancy infill net presenting foot. square tipping XXXX year average average portfolio to of beyond, per term, believe from about been per square are net reached that’s we $XX urban XXXX with $XX our redevelopment remaining This leased trajectory our in project $XX we of square of one continued rents including X at XXX rents in $X.XX and currently lease foot. million we leased XX%

believe it all that urban we occupancy to hits in former that. close We levels to that proposition were the do about means infill needle. our about XXXX suburban value we originally value-add we move our portfolio leasing acquired FFO getting we and you on XX%, really underwrote and So, the at will vacant move is space. then in portfolio If

has restarted FFO full show are We we own. We now XXXX. urban We of believe continued giving when XXXX the guidance portfolio that new office year FFO assets on will earnings for that XXXX. estimates growth anticipate FFO we guidance report XXXX very in bullish

effort, number space. let of leasing John? one give the on Management our future the leasing driver FSP some of half President for to in-place that Donahue, second me prospects and turn is now of over XXXX. color call vacant Our Property and growth activity to John XXXX To

John Donahue

leased. At quarter, end third of Good the Thank George. was morning, portfolio the everyone. you, the XX.X%

end portfolio XXXX be We leased. year As the the approaching believe of XXXX, end XX%. will of as year XX.X% higher portfolio was occupancy leased

the was leases quarter quarter leasing was square Approximately, second years. feet XXX,XXX best the and year-to-date XXX,XXX feet strongest That were expected, total X with expansions. last of total As of new our quarter leasing square in leases. third the the of

to leased deals square There XXX,XXX in majority have letters than to leasing. are square XXX,XXX with potential were amount if square had are that leases total new of the fourth high that these expansions. potential is very we leases, barring and with currently the of and/or square total of would XXX,XXX the closed feet executed quarter in even be high and the the intent feet quarter may a with batting Roughly, phase, that We feet months XXX,XXX feet half For letter probability tenants. successful average, to-date, X the additional of any believe better. leases. leases There very we of XXX,XXX potential exceed an of more square feet and surprises close assuming new of intent be

finish year of X.X of range the feet square million in So, the X.X square feet. total to million leasing might

leased occupancy three maybe expected XX% to XX% our occupancy, increased and has market leased at straight with improved Denver now is Denver, X-year is be four We quarters leased months. leased year had X straight XX.X%. in lease or to core within strong, X-year of increasing over X a to a portfolio to the high be the high, Minneapolis next has markets range been leased Dallas XX% higher X in FSP’s very X we XX% to within end. expect year the reach XX.X% the months. at is X now over of to X likely and and by by now year which this end. at XX% XX% believe quarters core leased We largest of next

Our four have amount dropped XX.X% quarter Atlanta the The at to infill quarters. suburban end. of a churn leased healthy portfolio experiencing past properties been during

through the We it occupancy work and Ravinias are continue leased expected X during Park Overton XXXX. and to for rise to

renewing currently appears portfolio Midtown Houston FSP’s Our are and buildings to have corner. made XX% we the Atlanta anchor tenants. have the progress leased on turned

quarter, turn portfolio to has a XX.X%. During XX it has leased great that, by the With to range XX% to Park from occupancy the believe end. Carter. recently Jeff I XX.X% and great at year chance will There in to Houston improved activity be we of third over XX% leased been our

Jeff Carter

Thank you, John. Good morning, everyone.

saw at positive long-term FSP value create in to for FFO third shareholders. With this FSP our focus to is growth generate quarter. mind, and Our

our of well with longer provides flexibility debt estate of urban with and First, assets. recapitalization the infill real our portfolio matches and composition life, our stack greater company

in Secondly, space. the and long-term importance strongest growth, vacant quarter leasing our saw to of this FFO velocity including year, third key

leasing will We that continue progress the are ahead. optimistic quarters in

remain new upside select As three and forward, through select that number properties. development redevelopment through number leasing new into our urban further vacancies, look tapping on efforts infill non-core property number and efforts, and we and of transition in our into number efforts four investments, portfolio one two assets potential disposition select through FSP’s

FSP markets high-quality committed and front, infill in growing opportunities. is acquisition the urban core our to On with

value-add a range potential at redevelopment. core that look of We development or opportunities continue to plus include and

have markets Houston our this local Minneapolis, stronger to-date focus fewer and leading XXXX core is in sales. in that majority remains for Atlanta time been slow in opportunities include off-market with into Dallas, and investment transactions. Our insights potential at to Denver The opportunities of during

the market continue updates. any keep will to posted We with

work of million on disclosed us and totaling On and $XXX during or sold you market to disposition recycling But repaid for continue I conference continue to to satisfactory the the disposition X call is proceeds. non-core year in with to-date, to million front be approximately and the posted To-date open that assets XXXX, time, additional and we call calendar asset since gross for will FSP to FSP approximately at listening assets non-core has like look should of we had that, ‘XX, $XX mortgages properties you, keep potential thank Thank And today. and values on pricing this earnings any front. operator. questions. achieved our up for into would

Operator

Instructions] from Guinee of go Thank John Our Please question you. ahead. will [Operator come first Stifel.

John Guinee

Guinee Few you. here. questions. quick John Thank Okay.

First, with That’s is debt going one points whole many your whole debt cost restack capital for how up the the roughly question. stack? basis –

what in you each sauce leasing gaining you TIs of it and commission retention XX% And feet? is packages? so about rate do that down your million looks to million XXXX three, on Second square and occupancy, rental and have on question, what’s X.X about X.X XXXX much or of the rollovers, it feet then like think secret square up

John Demeritt

of the information is Demeritt. some an fees will pickup debt costs real have could those the can in annualized I Hi, about we financing and first but the I on actual that, to it. facility answer at then your and and an point night, you John supplemental John on basis XX on filed This number quote look estate John. don’t Page Donahue model questions. the I to put last question basis report deferred

you much Some revolver. based amounts, drawn on at dollar of be calculation that think will basis would no okay. know the be would doubt, that point the how least Certainly, in you

it pass other the will for Okay. questions. John And to I

John Donahue

the good morning, works quite in our and Houston the to short energy some bit will, the have is that for a been a I do XX have few the in Hi, bit, longer progress to times, finalize particular properties turned leasing last why of corner we have and Denver, better able finalize deals able a and we answer you in believe tackle if average, cases. and we And will then secret have the especially in in markets months so first, or been the for X the John. demand over to to have that months.

a not concessions, dramatically been costs but TI there in tick has and yes, so. up So,

for so, in Minneapolis, be where smaller did did expect track quarter the other fourth the little in rental and between doing of and our are We are where in in rates. of year square are Rental first the we we two cave rental highest per the more leasing in portfolio on still lot rates, per in quarters, our for not in to have same appeared the the we this we because $X higher have to to we we higher down, leasing foot a necessarily smaller rental $X we rates some are needed leasing and bit markets but quarter, markets be that’s because rates core markets. them where

is that we likely in rollover, are we a if at Northrop but are the later a to King renew to of and portfolio that that don’t Burger going Grumman than roughly makeup date progress. have for exactly expiring combination but is total. IRS to and regards are number it’s demand will expect significant to almost engaged the we depart, expirations Both calendar of how In So, it’s eventually and long of half then a a any be and sauce, probably of roughly them holdover tenants there months, of markets both expected. answer, long they yet the that sort the the know energy me, making I secret with bear X say don’t with in there XXXX, is think we just we total XX% and

have say, and doesn’t for probably work space until Blue Fannie in heard strong depart welcome that and will finally, that jumpstart have have QX very building. through, multi-tenant as Miami you is performers release We us to opportunity very Circle pre-leasing. but well-positioned already property Lagoon been expire us. are on to we Mae we although the property in a early, the Addison And getting the will Dallas then And that

that fairly expect release we to quickly. So,

subtract portfolio progress X.X you are after exposure down and we with to tenants about on the making X So, the those renewals. of tenants, engaged is

there, X% surprises remaining of tenants, to the which those about portfolio. any then exposure to we to barring XX% of reduces our So, expect renew XX% approximately

anchored that things into late It’s a we XXXX, turn we to So, are some are months roll staggered hopefully sense the with a manageable engaged expect see renewals departures expiration will to think will the role we to how those and is so think regards balanced, we we gives few year In where very X early we average that so a seeing a there, of things you we will we take are with or and have Hopefully, end have but good even work no that tenants and or batting XXXX. through. we really slipping over another in and the going year out. up. great

John Guinee

you. Thank Great.

Operator

will question of from come ahead. next Rodgers Please Dave go Our Baird.

Dave Rodgers

guys. morning, a vacancies the TCF leasing the you that good about activity the have up Minneapolis are following there? Yes, bit talk comments. product on Maybe the Can seeing and that in little with you you just

John Donahue

that Marquette. Dave. are excited Good X, the was of XXX great X has have been quarters Eighth And here. in a over Sure. Friend is backfilled we South a the about performer huge and last Will morning, percentage TCF Minneapolis XXX space we

excited in color, to ahead, a but will more to I are Go So, little we you Will. him very happening about give Minneapolis. turn it bit over what’s

Will Friend

here. Will Friend Dave,

quarter the remained activity XXX strong. very there vacancy third for the During for of

cross-section engineering, a diverse few. user and from and of healthcare of approximately and have feet insurance, hospitality architectural good name TAC We XXX,XXX square to activity a types,

users space. that the of are feet with at feet. diversity So encouraged the about of we or that XX% XXX,XXX XX,XXX are Of looking proposals prospects type are the we actually trading of square by representing several the square space

prospects and at to with scheduling of touring the meetings nice and engaged feet about it’s there towards be So, prospects others. with same time XXX,XXX square for

in strong. of on months the those getting, leases expect we X XXXX. discussions to speculate in signed next we next the of to activity any and believe that So, to to half with, too It’s again, the leasing current projects deals, sometime leases a will remains in XX% sometime but are X have more XX% early FFO over second little activity feedback on specific based follow those we for to following We with year. the do the related were

So, trending a little move longer little more and the but to project multi-tenanting, lease-up FFO is in single deals, those I part looks or lease out the tend user. towards more – timing meaningful quickly, depend whether of a smaller will it means we which where multi-tenant to deals it’s it’s it’s the – have a Right now, larger it a on think like there. horizon bit the

timing but now keep activity some in the or should have momentum is X going little on a going next we convert on feel I So, prospects really right confident get hard got and these months and the momentum good will say. we that we track, are to based the X to the

Dave Rodgers

have that. you did? you increasing FFO took there in any amortization John Okay, for in guidance one-time refi Demeritt, quarter, the color any to cost, refi the were the the the cost range end prior guys one-time that of you related there your low thanks to on did

John Demeritt

some there need there the as of it’s that of – an but estimate it, some did. of legal capitalized for amendments been Good we the in yes. part other for an well, things we opportunity write and that off was was of fees to there Yes,

Dave Rodgers

impact I as mean, is recurring that think XXXX? about we a

John Demeritt

No.

XX, new we laid look supplemental costs think on will did deferred you Page if will last the facility think at the out the be I what and financing cost annually be I I night what annually.

XX revolver, some savings points the it. I that basis decreased the couple X on that. of term on have spread the points on will And loan, the spread other we So, cover a so we on the think that then decreased there. are basis we points, And key

that we offset will facility So, of are those fees. deferred recurring costs financing some will there some have savings and

for press helpful think that the model. that rates there the we I and that is for you did release give will that’s forma week, debt to model the a last – So, it. other and the all think that debt, thing gives then I chart you the will information for so put guys be pro I the on And the spreads

Dave Rodgers

Okay, thanks.

cap Lastly that rate we assets? if are the broadly that on then just around Jeff, was can more expect you kind now active details how the of to stabilized on and or market number? can you how And talk cycle disposition might you more of in-place give remaining quickly the in Baltimore, non-core through the you about right kind

Jeff Carter

rate Baltimore cap was was that in-place XX. rate cap The X.X completed just October Sure. on and about

potential we key potential are look markets and are at, sales, committed to we we exploring dispositions part is looking of and As dispositions that. actively other our in at a growing

expect are We and properties as continue properties to those the XX% pricing remaining expectation away that and as time you markets. in to of continue markets urban when importantly, there more reinvest result non-core a and infill is proceeds appropriate our value to to our our know into chip roughly in that over

to us it. see So at think going just you chipping away keep are I

on meets you posted guys working dispositions expectations. now will are We other keep if I and pricing

Dave Rodgers

you. thank Okay,

Operator

from question next Our Janney. Please ahead. of Rob go come Stevenson will

Rob Stevenson

any done, of portfolio? major next morning, months, Marquette when undertake that take expecting over to With you mean, I to Good the sort X guys. XX plans capital you are now the a improvement look throughout

John Demeritt

For it significant the XXX obviously. tenanting no is cost other there remaining of Marquette, than

large. properties that as to anything far As have now be don’t we that need right with significant repositioned other is capital,

on the re-tenanting multi-tenanted, there if will of we that horizon. know with just tenants that but will expect XX be and we cost, Marquette that is talked we have nothing King Lagoon don’t scale on we be property XXX ‘XX tenants, the Burger about will into be the X but year Blue it Next size some or to

Rob Stevenson

but terms sort space sort more of not going sort XX-year typical size X maybe be common at but XXXX Marquette’s anything mechanicals repositioning should to sort and of to of that that mean No, anything of besides of this Blue refreshes in and expecting normal mean we and in level, like size lobbies point on of of just Lagoon? normal things I in

John Demeritt

Rob no. is answer short The

acquisitions property. had Dominion since any the Towers haven’t We

there numbers. are well no big has property large significant show but anything XX we of Park So, a space, block don’t expect and the there.

and you floor particular to believe multi-tenant there the If but and lobbies corridors any you things, at have numbers obviously big and I is building, answer no. your question, are answer the

Rob Stevenson

was any less Okay. in then and Houston guys and that gotten fact exposure on and there, there your lastly bringing well the benefit or terms down far even clients? of from side road And you of on potential new over before properties all are the activity have West sort the the you though damage that underway the hurricanes

John Demeritt

Thanks, to Rob. that I am answer let Go actually Toby. ahead going question. Daley Toby

Toby Daley

most the had no the West had were of Bayou, We few. the the reservoirs as a in on that Barker Actually, a office of Harvey. very and in of we of but there is result fact fortunate Buffalo were little Rob. along buildings, aftermath Houston, no was damage damage damage. there we Addicks And near virtually Yes, result side very impact and did

permanent or many tenant flooding the there as So damage. of weren’t seeking just result result as temporary a homes

of result not uptick great see a did a of the looking we flooding. as space for So tenants new

much did I out to very XXX,XXX of the QX, for course are business we back we have square about normal that And business which and is achieve of QX because QX in so during I during already Houston. think leases feet activity this

Rob Stevenson

see any didn’t are that you to the some and that Do for that up from go benefiting where not to you sure next end that one the massive in are think go of area is make that can things where damage nature? going flooding getting they people fact have of implanting an you

Toby Daley

Yes.

Rob Stevenson

underway? its Or somehow

Toby Daley

point, That’s actually Rob. good

and the and for went boost We very buildings working reassess research well. much that kind with was of storm they their are to out a large during them, our a one building from tenant that surviving factor

was helpful. So, yes then that

Rob Stevenson

Okay. Alright. Thanks, guys.

Operator

come will FBR ahead. Our from next question with Markets. go Capital Please Kucera Craig

Craig Kucera

Hi, good morning, guys.

I larger we’re the mentioned larger we’re Is that continue the looking that so driving out – companies. as of or looking the some on past for earlier demand feel that’s Houston, space, the that case discussion there? to that larger on in want you still Just of the it for any as like users for the smaller have sort recovery space far seen driving smaller what’s you people was

George Carter

Rob and right, Houston. we of pretty right seeing small in mix sorry a are now tenants Craig large much XX-XX

So out space. to back and lobby everybody looking for seems be

right the have square a is feet there large I XXX,XXX So, small that tenants. out now are of combination and

Craig Kucera

Okay, been leasing activity great. maybe that anticipate commentary you of on moves something based you to forward? XX% you able your as order And earlier achieve X% spreads have on GAAP to the be will on a where basis from

George Carter

there, answer is Craig the I yes. think

in rents, be and to average because the largest weighted our of so I believe case increase portfolio continue the going into will percentage the XXXX. We core vacancies that

Craig Kucera

this you today? circling impact seeing XXX from you an back market one to asset based Marquette, And of at for more are FFO to kind on are the what guys you think point me, Okay. when guess have do likely that in I

George Carter

of saying, is had have very contribution there wish answer FFO will the expecting have half similar what to Well, XXXX. meaningful back the likely holding we of we I was if largely XX in dependent tell XXXX some been or or single timing if we the And have to tenanted a sizes crystal upon FFO going was that going of in two and you are and ball we to tenants are size tenanted, the to the be it I tenants.

about and X some don’t just timing right FFO is. the the it’s let’s be just half So second believe year what we in say, so the now, meaningful X have contribution exact we know it multi-tenanted, will of should tenants or

Craig Kucera

thanks. Okay,

Operator

Kim Our come BMO next Instructions] from of [Operator question go ahead. Capital John Markets. Please will

John Kim

the George, the growth Thanks. order you discussed official achieve? are you Good but I in morning. of your prepared of giving in you view not guidance, growth know work remarks, FFO magnitude XXXX, in can you discuss to expect optimistic

George Carter

could Hi, I if now. right give I guidance I No, the will John. can’t

right has And will in right so now upon and become thing next from really Donahue going standing are X FFO our be that continue looking over the we year confident only meaningful. end so much evident Q but we dependent I’d help we growth. as and it the now have I think John would that The will by at that really very what’s back happen very say guidance give that to months, is will possibilities, said very us

corner had to into the for, but like a the very we slower be FFO and have up in turned it the than our harder, fourth looks leasing continue lot strong half velocity So, ‘XX. hoped have velocity able the year to that leasing should in we first of in ‘XX, quarter picked we quarter, in growth has the turned third definitely

We will give you together. guidance the put as we soon range numbers that as range –

John Kim

sales, or imagine sort I am trying it’s year net even? a going non-core or because asset dilutive, tie seller that acquirer be to do into be to expect net of to you but next

George Carter

we how acquisition basis that quickly there more of only development experience value that be we loss XXX I disposition to little remain to between go selling suburban acquire kind value allocation as remaining to what’s from we my early add rate be XXX the most will itself generally much versus disposition our stabilized our dispose cap think I of process opportunities depends proceeds pure as shows or add think is will different will experience proceeds much CAPREIT points. the be differential with as on at for seen, acquisition cap five a disposition both than dilutive of in assets accretive and there of rates neutral how opportunities of it of will of considered and fairly

John Kim

on is then comments, Okay. that, your And just the expect leasing this to activity third circling leasing so quarter amount in in that back your, going prior of the on XXXX? to activity quarter your you rollover guess, discussions based I pipeline in

George Carter

That’s Yes. correct.

John Kim

tenants are went in? remind the a you And couple then markets Fannie what XXXX included John King, can and you just four Mae Donahue which I in those expirations us others, of think Burger through but major

John Donahue

Mae Virginia Denver Burger in Yes, King is in absolutely. is is is market, Grumman Miami in Northrop Fannie and market, IRS in Northern the Dallas.

John Kim

it. Got

you. thank Okay,

John Donahue

welcome. You’re

Operator

Instructions] [Operator like conference this turn to George closing session. question-and-answer I Mr. and to Carter will Ladies for remarks. over our conclude the gentlemen, back would any

George Carter

Hope the We joining World you. many into you to of Dallas in appreciate in very earnings much at you REIT it. call. see Thank for mid-November. Thank

Operator

has conference The for now Thank concluded. attending presentation. today’s you

You lines. may disconnect now your