Boston Properties Inc. (NYSE:BXP.PRB) Q1 2016 Earnings Conference Call - Preliminary Transcript
Apr 27, 2016 • 10:00 am ET
Good morning, and welcome to Boston Properties' First Quarter Earnings Call. This call is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Ms. Arista Joyner, Investor Relations Manager for Boston Properties. Please go ahead.
Good morning, and welcome to Boston Properties First Quarter Earnings Conference Call. The press release and supplemental package were distributed last night, as well as furnished on Form 8-K. In the supplemental package, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. If you did not receive a copy, these documents are available in the Investor Relations section of our website at www.bostonproperties.com.
An audio webcast of this call will be available for 12 months in the Investor Relations section of our website. At this time, we would like to inform you that certain statements made during this conference call, which are not historical, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although, Boston Properties believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.
Factors and risks that could cause actual results to material differently from those expressed or implied by forward-looking statements were detailed in Tuesday's press release and from time to time, in the company's filings with the SEC. The company does not undertake a duty to update any forward-looking statements. Having said that, I'd like to welcome Owen Thomas, Chief Executive Officer Doug Linde, President and Mike LaBelle, Chief Financial Officer.
During the question-and-answer portion of our call, Ray Ritchey, our Senior Executive Vice President and our regional management teams will be available to address any questions. I would now like to turn the call over to Owen Thomas for his formal remarks.
Thanks Arista, good morning, everyone. This morning I'll cover our quarterly results, the macro market conditions that we see, as well as our current capital strategy and investment activity. On current results, we produced another strong quarter with FFO per share $0.05 above consensus, primarily due to improved operating performance. We've also increased the midpoint of our full year 2016 FFO per share guidance by $0.05, released 1.5 million square feet in the first quarter above historical averages, and our portfolio occupancy is now 91%, down 40 basis points from year end due primarily to the Genentech vacancy of 186,000 square feet at 601 Gateway in South San Francisco.
We had solid rent rollup in our leasing activity with rental rate on leases that commenced in the first quarter up to 16% on a gross basis and 26% on a net basis compared to prior lease. The leasing results in San Francisco, New York and Boston all exhibited strong growth over the quarter. Our U.S. economic growth continues to be positive, though we certainly see a hands of slowdown, fourth quarter GDP growth is now reported at 1.5%, which