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OFC Corporate Office Properties Trust

Participants
Stephanie Krewson-Kelly IR
Steve Budorick President & CEO
Todd Hartman EVP & COO
Anthony Mifsud EVP & CFO
Manny Korchman Citi
Craig Mailman KeyBanc Capital Markets
Jamie Feldman Bank of America
Steve Sakwa Evercore ISI
Tom Catherwood BTIG
Rich Anderson SMBC
Dave Rodgers Baird
Daniel Ismail Green Street
Omotayo Okusanya Mizuho
Bill Crow Raymond James
Call transcript
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Operator

Welcome to the Corporate Office Properties Trust First Quarter 2021 Results Conference Call.

As a reminder, today's call is being recorded. At this time, I will turn the call over to Stephanie Krewson-Kelly, COPT's Vice President of Investor Relations. Ms. Krewson-Kelly, please go ahead.

Stephanie Krewson-Kelly

Paul. you, Thank COO; welcome quarter and Budorick, conference to President call and CFO. EVP Good results to With first and Vice Executive XXXX Todd Steve Anthony me discuss Mifsud, CEO; and afternoon, Hartman, COPT's and today President are on and and available presentation our information website of and call GAAP discusses this results package. financial in non-GAAP Reconciliations in management the measures on are our release press supplemental

which subject reminder, discussed forward-looking during to undertake from materially statements in and risks not SEC at are update are Company duty statements, the our and uncertainties, a length them. As results events today's and these made Actual Steve? to forward-looking a does call differ filings. can

Steve Budorick

Good afternoon.

recent priority as and met financing, to Driven cash a Our to the operations $X.XX, resilient, quarter is another by of share growing by quarter high of missions demonstrated great highly up be FFO XX% bond unique first quarter end year. solid XXXX. of the installations, strong continues guidance interest adjusted comparability start assets strategy produce results, results first flows concentrating than strong around per and our first from U.S. shaping as for higher representing towards savings executing defense in our

real a operations Additionally, year NOI an from was XX%. from quarter estate ago. in increased up X% the impressive And AFFO

we on path a clearly of demonstrate, highly are year-over-year visible and comparisons growth. As these sustainable

eclipsing XXX,XXX same-property in for results our of completed vacancy square feet to totaled quarter and totaling square XXX,XXX the and increased we've leasing, feet. the were blistering outcomes and year. is quarter leasing first guidance April, leasing real on leasing Better-than-planned are X.Xx. a solid quarter vacancy XX,XXX Development volume renewals First driving results In for quarter by off feet leasing start. second square

history. month. the The landmark close The However, Bridging the ratings, and was of that last strongest we're notch full XX-year issuance a has and reflecting debt a bond coming than our the current growing $XXX durability we portfolio, coupon completed priced second XXX,XXX higher bonds flows. negotiations cash in on square market's activities, advanced our recognition should offering the the a Company's in in X.XX% financing months. of nearly our feet million strategy financing to our

the which Todd. second income So company FFO in for six our recognized of and adjusted results. per community midpoint, refinancing the with elevated that, for XXXX call rewarded and for the NOI cash the the from robust exceptional outlook with for for demand in bond growth time over implies our months, fixed over to interest as are and increase pricing The the savings XXXX guidance the investor driving improved same-property And share hand bond midpoint comparability, $X.XX at offerings. I'll the unequivocally X.X%

Todd Hartman

Thank you, Steve.

contractor ago One foot at real-time quarter with growing being provider per decision. Gateway rents nonrenewal year demand our on term the and technology and leasing lease cash average leased XX% Columbia feet, leasing of leases, foot rolling remains left Renewal properties square of total expiring by market. rolled to completed XX% economics the activity X-floor XXX,XXX XXX,XXX asset, as X.X as rate well Gateways in term. a To square light preferred First to completed leasing square property X,XXX of Based and This demonstrates opportunity expansion amenity for In renewed is leased. bringing square and and defense at enable XX%. list to years. April, lease date, flat. April have to at line our tech high feet, annual Columbia capital renewals. add renewal leased. areas, X.X% Development of total to highlight was down Systems, a XXX,XXX XXX,XXX We in escalations strong. companies leasing achievement cyber with feet XX,XXX as date, of success included square appeal building's a the leasing XXX% expectations, square the to location were square cash of averaging are lease anchor X.X%, completed in cyber only at increasing We new a XX,XXX availability. of retention range square feet XXXX years rolling and rents high-tech believe that XX,XXX Gateway, the ratio foot quarter repositioning guidance vacancy the XXXX buildings importance redevelopment square $X.XX leasing a renewal feet in now renewal with both -- square feet average we X.X per XX% and creating cybersecurity with XXX,XXX of we from XXXX retention of took strong value an to a XX% our to we average an growing We at feet term Cash AI-driven was achieving XX,XXX at that of we Redstone year to we tenant renewals reposition Gateway. Recall the remaining term a This a on Columbia the rents year our carried that of lease leasing month, bringing and X.X% which our of XX% square quarter with rate. with quarter full an companies. feet a up

XXX,XXX the for in of development square square advanced second we feet feet. XXX,XXX leasing have and signature far So for negotiations out in quarter, another are

deep remains pipeline leasing customer development and and base. locations IT our diversified across Our

of up feet foot meet square will confident exceed X.X X million our We million opportunities we square or are leasing development and development goal. tracking to are

aerospace. X,XXX the is The Redstone we for During service. quarter, Gateway building a build-to-suit into

active Our totals leased. of X.X XX% that feet square are pipeline developments million

to XXX,XXX the these square year of the remainder projects feet. place to XXX,XXX into feet total the expect our square bringing we for During service, year, of

remain. until either to party customer as our that, continue Regarding tenant with exercises The lease the continues or I'll termination time replaced, turn and With a or to believe original leases call amended Anthony. the over will DC-X, discussions XX.XX-megawatt the such continue the progress. we to

Anthony Mifsud

Thanks, Todd.

adjusted First per from primarily share of the bond quarter as to bond of interest high for refinancing. March fall, an the end comparability operations recent by was Similar savings driven our guidance, $X.XX enormous FFO our success. met deal last and transaction

an addressed and March deal XXX points. and flows of trends. ever any have reset refinance all The new leased, Strong concentrating $X.X launched of guidance original office or dunk assumed price in spreads, within any Fixed bond to plan the XX-year They issued our us locations, we band time offering are debt. million length close of credit peers and a bond with book investors greatly offering was are totaled that their their Xx X, credit issuance talk large and billion. high-quality repay higher. at the Our basis for low-risk higher a of defense $XXX of clearly XXXX many some our On spreads FFO. portfolio, coupon initial to REIT. fifth higher-cost which million issuance sector the cash order our to upsize around The notch discount. March seventh for to allowed on note oversubscribed coupon the from and We used resiliency an low-risk income of in well of priced interest assets highly performance EBITDA represented two the to the investors of income of the deliver on retire office to $XXX to flows The book the in our continue developments. work-from-home ability at grow offering annual our were significantly development lowest which XXX focused over from our treasury credit points mission-critical with also growth cash strategy wallets, basis insulates appreciated to of the by a X.XX% This one volumes of impact a our resulting most who the spread. value investors now proceeds drive the highly The oversubscribed issuances, XX-year savings fixed down spreads offering coupon rated X% and views million. and blocking $X

Regarding our end was same NOI low with range. of the quarter line cash operations, roughly property in first

midpoint. normal we several leasing original quarter continued to midpoint expenses of lower is and income than employees at current expect start that increase weather-related levels of outcomes at first same-property our light to positive year flat negotiations, parking range to Based be forecast from the on extremely NOI that forecasted, a XXXX, in levels as X% last new to our urban of compared locations. our to cash the were As negative return

wholly-owned year the during our data declines continues the to equity. venturing reminder, projected assume With a call impact to last and this back guidance I'll full vacancy year occupancy turn leasing to As of joint year same-property additional Steve. that, modestly due raise to the center diminished year volume

Steve Budorick

you. Thank

deeply Defense, continues provide to adjacent Our more central of has and square strategy Department and support an extension, that assets of and value development each year. creation feet low-risk IT high-value new development concentrated of priority opportunities, contractors average of by U.S. million to or its the government X missions through defense

cycles general portfolio Our correlated credit to strategy economy. are a also tenants, not whose created of the business has high

continue during We shutdowns our to defense tenants' defense the have on healthy now durable company These both emerging spending our by growing supported and attributes outperform national are business recovery. allow and and during pandemic priority programs. demand, and businesses the

the in and great first levels and has thus the accelerating quarter a demand second had plan business XXXX quarter. far Our achievement into

company, in Our in assets community that franchise. last of results and year, stock's achieving relative the strategy, strength debt our demonstrate our the our combined our landmark that of markets, for investment outperformance our the recognizes strength the recent experience with tenants result

we full growth call up that elevated reliable incremental of of a by that, XXXX durable program operating the look path guidance sustainable growth, a balance and on growing and driven implies $X.XX results have low-risk development for over capitalizing portfolio, X.X% We're a the NOI of XXXX. questions. set forward opportunities open strong of X.X% We us. With midpoint increased compound sheet Our annually. operator, FFO a to on producing growth from the firmly year impressive please before is

Operator

Our the line question first Korchman Instructions] of with from Manny is [Operator Citi.

open. line Your is

Manny Korchman

is Looking retention there looks now reporting? in number? retained driving that of number. like you more Or firm of in rate leases Does getting presentation, your is sort imply that that XXXX the change at that the minor else it something a more investor on conviction those have expirations

Anthony Mifsud

tenants regional office change vacate with will is the renewal And they In our that tenant we and had XX,XXX for now. minor large totally was had a one the in about math in expectation two Baltimore. previous, in our building those The reporting staying two units are square feet. partial

change. The second had as net ended forecasted, what up not for the resulted that was that tenant we second contraction as we had in which being a large the

Manny Korchman

to Others sticking maybe then regional office And or disposition second. nonstrategic you. space noncore have for the accelerated Thank their a in programs.

nonstrategic sold current certainly feel But within do to past. assets? You renewed wrap trends home maybe -- portfolio. And you the with being from the from your you and assets have your given a regional in on I'll you with comment made that regional working office any working How about the office protected selling thought portfolio?

Steve Budorick

I'll take is second that renewing significant first. part one home tenant There's from that Well, large of clearly work that implementing the a strategy. one the

we which With The this we're it are need less candidates doing there always years. occupancy or future assets, We our those that lose, future and the opportunity is we in shareholders. is for recycling recycling. pandemic, severe good year, going their because but to to in renew have anticipate maintained we're for those tenant other news for certainly to are the recycling is tenants particular, reestablish don't anticipated large that not, there that contraction we renewing before regard than

Operator

Our is Mailman Capital next with the Craig question of KeyBanc from line Markets.

Your open. is line

Craig Mailman

Or timing the timing JV kind assumed development of curious, that of the the out on guidance in Just Is what all? the gate of pat. is slower Anthony, standing leasing impacting sales. you guys potential at

Anthony Mifsud

that projects, our guidance this capital is projects the expect projected we we're lease that No. what then is about in of When into the the currently of for the Pat. What standing development majority the projects assuming development the of year construction it and some year. of is we've year later investment under in are an you investment commencement in this think to

our year. has not for timing investment the leasing of So the correlated pace sort the of to development

Steve Budorick

it XX And leasing is Craig, square last in out we lumpy, by the first than more and for quarter. year record, the lease the XX,XXX Development did average feet, is doesn't quarter.

Craig Mailman

on off new It's then lease quick of kind right? And I that. X, guidance DC-X, renewal and Fair enough. had previous just of one. XXX infinite another On assumed think

that remind Does magnitude? materially to Now of it earnings it's take quarter impact or just looks Can at for kind the X? of me the going getting rent you like higher order longer. all another

Anthony Mifsud

quarter $X.X million. Sure. benefit is incremental per The about

Craig Mailman

Okay. momentum sounds by Just it centers. And development in XXX,XXX through good kind go that's advanced either then shell the pipeline -- Could the negotiations? feet have as or in office just you versus you like we geography of Alpha and break just guys for it data down Signature square

who Just more of is give sense kind us these a of days? active

Steve Budorick

Sure.

it's diversified. Gateway. XX% It By by in IT breakdown, that it's office, in first, defense XX% NBP Virginia we own So includes shell. Northern the location, Redstone land

Craig Mailman

does exhaust land? remaining your And -- center that totally data totally XX% the

Steve Budorick

all. at Not

We the own. additional land on we four can -- have add four shelves least at we that

Operator

The Jamie next question is America. from with Bank of Feldman

open. is Your line

James Feldman

opportunity do It so like next or with to start How successful? guess you you next was one thinking you Anthony, about might do? you maybe are about talk can refi this more? rate potential sounds the -- I the

Anthony Mifsud

of comes our our debt with have maturity. currently, based $X for that of credit last December BBB deal term flat the at on banks due we maturities, did loan March. terms that is And million spread in priced a next renegotiated XXXX. in we term Well, That's loan

very that pricing. that of now And due. issuance then sort next of the bond our competitive terms XXXX in capital maturity after comes So that's right is

and ladder. of think out our to bond where take see and that the So markets extend we'll trading refinance bonds advantage are there's opportunity to monitor I an our continue debt to out continue if to

James Feldman

is pipeline expected there this Okay. driving of was And or thought pent-up we've what of the just is driving that's news kind new, new beyond else seen pick mean, I about the demand? breaches was that's think what the administration or new kind seeing Like, leasing in this anything wise, when up, you're that market of you kind pent-up there kind you demand? Or of of all -- is data any the perhaps? it anything or and

Steve Budorick

the it high that in level very need to that tie we're think space really of administration demand by in for But in, to for the can't any driven is area means. leasing I SCIF by subsegment or new driving Meade a Fort expanded SCIFs. I Well, need going is of the clear new the is do much and that at contracts,

James Feldman

office. slip and Okay. in in only is see XX actually the Fort submarkets? stuff how if at look And about going what two about should And much then temporary we or occupancy just in portfolio more those Can Meade, BW did happened talk you corridor is points that's that's you in that? you're quarter-to-quarter, that Or you to backfill? think Defense a -- basis

Steve Budorick

pretty back reorganization. merger Fort say, next consolidation would backfilled, past expect high. to did surplus to activity XX And to did it I with in But we or had get months. that what is back be particularly where I in the similarly Well, get in we resulted do acquisition X would space either and Meade, that space space demand the

James Feldman

detail And expected line? going terms DC-X how time of are on and then Okay. in your just the any conversations more

Steve Budorick

they're Well, painfully they're but going slow. well,

client Our extremely busy. is

and it It Our feels read slow. close the I team of would to tenant, the like drive we in this agreement. through current -- be documents to There could that or settled, getting do we're couple redline has the negotiation status document issues. schedule their more hope very their levels a been status the are forward need and of the I open on quarter. on

James Feldman

Okay. said in correctly. think April, time I maybe latest included I your What's last if guidance? remember you

Anthony Mifsud

quarter assumes guidance end end quarter. second -- the the the Our of latest of

Operator

ISI. line of question Sakwa the with next The Evercore Steve is from

Your line open. is

Steve Sakwa

to is you're you're have answered. was I been different and out just laying questions development current for configurations? the my of Steve, as that But how kind existing tenants, both receiving anything talking versus asked your the density, or curious, for there of space lot vacancy, new and A they're in seeing

Steve Budorick

build-to-suit working for and, interestingly, is everything on kind built It's using the parking So last land this density using normal. is to higher nine therefore, is it, particular Gateway, the requirement. touched and the investing and Redstone than last, But we've additional complete the I more of customers one were the of full or And ratio over The on we're X.X case, parking. years. this higher normal. than money their at else call million requirement density call, in because

Steve Sakwa

Okay.

So more would the they're actually going people would kind guess, in I in then what But of we wrong thought direction. happen? have

Steve Budorick

for Well, sure. certainly, a That's work-from-home not it's situation.

Steve Sakwa

of drive land you've your that about of of land I the looking still other done that suggested or for talked then and you've buying case? of partner kind any the Are let JV And kind take looking center in with would Okay. data sort kind a kind And other said know shells, when to partners? you down sort concert them partners? you've it with you positions of Is potentially bit. to for out process be the you broaden of

Steve Budorick

pretty we certainly, JV time no be time would potential our for with to million to customer, to worked square we development. some land harmony already what in bought. partner. regard conversations We have buying from tenants, land feet to we've to our with always have them, advanced of a in negotiations plan to having tied in With $X of capacity with do, we've development buy to Well, have and other interest continue $XXX,XXX current

Steve Sakwa

the any emerge the And the kind new over Okay. you've you're of couple in? that there fit would last currently locations not years. potential of that footprint profile last that just of know could defense IT tightened then kind question. up Are I current

Steve Budorick

we've None Steve. identified to date, that

Operator

question BTIG. Catherwood line next is from the Tom The with of

Your line is open.

Tom Catherwood

second. a for shells center data the with stick to want I

a to the when of about properties, fund the you of contributions into going basis leverage-neutral you of of then and the and from runway center wholly additional thinking that the contributions forward, as you stabilize the could that years you just a the to development about shells general. of that are ones of or nice development against Do think that development. equity. And redeploy we of being your right center And close pipeline number low-cost source could NOI kind developed? you kind provide more on allows data obviously, a shell you data sense borrow have I'm Just in now the get owned funding

Anthony Mifsud

wholly-owned the were gross of based a had that $XXX development end the So the or XXXX's the we shells projects And that two that or center year cap out as Tom, a under have to this continue venture that do, million. year. we development value be of that the -- we about at were development of would that, four able would do pipeline rate portfolio to Based year, we the expect basis current in data on to expect achieved any plus capital on that incremental include over to operational, doesn't as joint years? our well next pipeline fund next to five what leverage-neutral on the modeled

Tom Catherwood

Todd, at thought done it. to that then, leasing cash heard leases wanted that were just the April right? positive I And say I Got I X.X%. Did you check. spreads of hear

Todd Hartman

renewal That's yes. correct. leasing, The

Tom Catherwood

it. Got it. Got

-- just push that are little we're a leases? more more So leasing rents higher your higher that in, the leasing are you little expected. trends with was XQ, we a than being sounds a guess, the Was seems Or better like -- bumps the had are to markets? you in in mix? it maybe And along your that, talk you able held used to. I little like those bumps about those in it also annual done than rent broadly Can

Todd Hartman

are to were year. I Well, generally, tracking where last would they rents say,

material decline face We in haven't any rates. seen

probably sign mix annual In shift? think that's terms a I than the a of basis market a of rather bumps,

Tom Catherwood

And XXXX. in on Got then you regional it. kind certainty the of one mentioned office expiration

in past backfilled, any put capital a lot asset stabilized especially that are capital again? than those, buildings expecting to of You've to order capital incremental into Other space you over it the years. your into to Baltimore leasing get put that get few

Todd Hartman

No. No, we're not.

Tom Catherwood

had sorry, of you XXX last Great. expectation The there of was Is And opportunity some expectation? the that that quarter, an XXXX. for me. leasing NBP -- or last mentioned still then one in

Todd Hartman

balance is Yes. space by midyear end it our the and year. a still It of expectation of the the of with the portion

Operator

SMBC. from next The Rich of with line is question the Anderson

is line open. Your

Rich Anderson

here. SMBC

it But are So DC-X, slowly. don't moving if this in engaging you case B, the yours there at through is doesn't described if That's potential like XX-megawatt this is one, -- for I in a maybe of come to finish mean, in amazing third there wondering shell there's XX you the line? of space? And mind, kind plan million you statement. parties particular, any obvious thinking about customer fit I'm business. I'm

Steve Budorick

it, working further their The standards, with and has our the confidence we've we've year, to current comply the control, was now, Our that. moved six-year of translate lot call very high. documentation a structure. But adapted fire tenant five last like -- things we've is moved over through resolved. And to upgrades and which term form been into new there we've what-ifs security through and and

So a the by feel in just up. our we're the wrapped executed. would the at putting get on time, compromise this we need market not contract confidence in like and that I We have. relationship up point And space with to mop we

Rich Anderson

quite That's fair. Okay.

the rates you same-store guess, than during question NOI it under thought range. of is cash defined X.X% Company, we On the outside of was profile the I the renewal better consistent, did yet, a described you the negative with growth previous the quarter. And but guidance. consistent from

So I that I it's what an apologize. thing maybe -- happened missed, there? if obvious And if I

Steve Budorick

slightly again, lower of primarily slightly and revenue The than pre-pandemic then quarter And higher and than is we was Maritime, parking basis. last quarter than were reduction urban was things. what was snow -- a from which significantly by the first net was the quarter year, expecting. locations, which forecast and slightly our the two and higher shutdowns, the sort Baltimore the clearly was were first than One on both expenses, of for weather-related was higher result energy that our of driven XXXX

Rich Anderson

Okay. Fair enough.

the maybe observation, story of you, -- and that operating to these I'd remaining longer do see last nuances a and then to through get of steady kind you to of you what state just what know with once into environment, the you kind term like get Steve, of So kind the the pipeline, a take that? as growth Company you Or of to when Is type together all consideration line that you development match it leverage, and things profile of see the do model? as greater X% than something into it you growth, a same-store number. like bottom growth I'm come sort

Steve Budorick

over the rely I growth a being that's then to a probably think period, X% X, on longer number good same-office from X.X%, incremental to balance and development.

Operator

The of next is from Baird. question the with Rodgers line Dave

Your open. line is

Dave Rodgers

leasing you and guys I Anthony, about anticipated. outcomes that Todd Between positive several have talked hadn't you think

so the I term the fee continue Can that that on with to rate into then, vacancy that wanted wanted the onetime that, lease renewal in whether dive was guess will dovetail to on question on bit about the you in little amortized? to a a you talk And be just or just fee? more. I was those quarter, And overall? Anthony, Or

Anthony Mifsud

leasing, we In was occurred additional done had what renewals and activity, terms some the expecting non-renewals that then it was both than sooner on that footage better-than-expected additional and of both that square leasing leasing on were forecasted. we vacancy

balance the of of tenant of term we at quarter with the first to that the year end through a with and the XXXX. -- portion termination the recognized be respect that in the So fees, will amortized fees expiring to continue

Dave Rodgers

potential too you much about Washington talked and then haven't and Steve, there. really the issues And Okay. any government

there your that, of you positive is You've a in near kind of been executing very have quarters advanced transactions anything the the these the budget. Is these term? the negotiations talk to several and pretty kind over that now terms in in as in risk past mind of pipeline

Steve Budorick

a government, Certainly, weren't that to budget the about documents. the talked basis. them near on our that advanced portfolio. defense status with we being And negotiations, will on have and working promising we high I the X% growth , identified And X% be if very looks term, regard to with lease outlook quo wouldn't we think stable very be in to for

Dave Rodgers

Any that issues in terms is and would current perspective, timing burner programs from issues not just obviously, other Congress this all perspective? these fighting of back put funding necessarily kind in battling the as, a on other out a of

Steve Budorick

nine timing The in last budget been year And one continuing years that only this year would resolution That's driven kind by to appropriated think time scheduled I a expect we've is and become here. from annual of be the December. I budget. norm. there's appropriation pushes on September to that November I've fully another appropriation an where had that the outcome the of the

Operator

Ismail Street. The next with question is from Green Daniel

Your line is open.

Daniel Ismail

to I'm just XXXX last see curious the I to call, Street. And on how see any curious some if prospects. believe been L those was conversations I there's update mentioned on you early-stage have evolved.

Anthony Mifsud

ongoing. are conversations Those

other least than We its but process, have in going that's say actually discussions or process, time. at more negotiation the I to prospects now for no the should lease real advancement -- space quarter. the And than take we deal had process last

Daniel Ismail

to pretty that for anticipation that hard is Or being Any say? this done still year?

Steve Budorick

of could couple those XX-XX, likelihood, we XX% we're certainly least one deals. there's trading paper prospects. with at win of a And

Daniel Ismail

two just development obviously, then costs, questions costs are moving And development higher. so Great. on

then regional or any in the curious either if better growth assuming that see the So there's portfolio? I'm are two, just been conjunction pipeline? moving rent into impact costs, replacement office defense costs for longer-term on higher should with And translate construction we

Steve Budorick

cost are drywall. Certainly, right there's Throughout segments now in significant costs. that months, supply some as pretty higher like some short-term I'm and drive shift We're increases demand elevation we not our of long-term developments. issue. a longer-term permanent replacement that have regard difficulty costs. replacement short-term the XX costs, pressure had material last as that to the could completing With certainly, But much not rate it hearing would is this into follow under the convinced cost structure we on

Operator

from is Mizuho. Okusanya the question Omotayo with next The of line

open. is line Your

Omotayo Okusanya

when wanted space prospects nonrenewal focus renewal just about get you office regional and about. Could you talk the kind of wasn't renewed? tenants on mark-to-market and the both I renewal on of just portfolio, the to the for the possibility new tenant that you also the talked a two of

Steve Budorick

rents to were on second the a mark-to-market long-term negative renewal. for probably X% was... XX% And So part

Omotayo Okusanya

for XX% empty space to the for X% space? new the

Steve Budorick

Yes.

I right. think that's about

Omotayo Okusanya

what is the that renewing? about for then tenant And

Steve Budorick

Same.

Omotayo Okusanya

Okay, great.

like again, the Department then know is big coronavirus things spending amount is bills, the of And driver areas if do you. bigger guys, Okay. you But kind for of or Biden specifically to me, budget, could around indulge the again, all or security of deal these whether I the President that. what bill across education and it's have major that the of trying you Defense you

do So that or of even of kind for demand, I have tenant on the general you impact you area? expect just Washington in specifically to guys any kind D.C. meaningful mean

Steve Budorick

to I with regard No, the see is tends portfolio. assets in increases, spending we'd our estate our More of or kind get growth DC missions, I and So real DC they the IT any bulk -- community that of could to believe in say correlation finishing priority do landlord when spending demand. would don't that it. with defense And development, welcome the portfolio of

Operator

question of is line next Bill from The with James. Crow the Raymond

open. is Your line

Bill Crow

selling any leases Going Baltimore outcome way the Does quickly. change of back to timing of the assets? two those in perspective those

Steve Budorick

vacancy. prefer one a we're We're market to we Potentially, for successful the opposed presuming a that and the as I significant change thoughts. our outcome unsuccessful expecting, And to with bring mean, an certainly, second. and lease outcome could to building

Operator

Citi. question Korchman from Manny We of additional have line the an with

open. line Your is

Manny Korchman

just out earlier that because And very just what's I dig into a there and about markets? now? very entrenched? an was have others those don't are think quick Is that new that firm figure question enough Is more in very, driving those a presence that now? space now? In Are in response you the just you driving that don't markets, now. wanted what's tenants are Or expanding because you to quick it to Yes. gave just that

Steve Budorick

a until time a to make Well, certainly evaluate to we We're some I'd to in new there time. are to market. more want But we've certain. opportunities market position, that open in continue not have indicating time just new evaluated time regularly start markets up to come from ready from move we're to that we're that where up a

Operator

The Sakwa, is Instructions] [Operator the Evercore question ISI. from of next line Steve

open. is line Your

Steve Sakwa

Yes.

get all out Sorry, asked, my were I been queue. of couldn't just questions

about Sorry that.

Steve Budorick

for joining So today. call thank you our

call. afternoon. be this to will like follow-up in Stephanie, our if you'd offices We a coordinate Please

Operator

Thank call. concludes XXXX conference you Trust today the for quarter in participation Corporate presentation. the first results Properties This your Office

disconnect. now Good may You day.