Columbia Property Trust, Inc. (NYSE:CXP) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 05:00 pm ET


Columbia Property Trust, Inc. (NYSE:CXP) Q4 2018 Earnings Conference Call Transcript


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Good afternoon, and welcome to the Columbia Property Trust Fourth Quarter 2018 Conference Call. All participants are -- will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Matt Stover, Director of Finance and Investor Relations. Please go ahead.

Matt Stover

Good Afternoon, everyone and welcome to the fourth quarter 2018 Columbia Property Trust investor conference call. On the call with me today are: Nelson Mills, President and Chief Executive Officer; Jim Fleming, Executive Vice President and Chief Financial Officer; and other members of our Senior Management team. Our results were released this afternoon in our quarterly supplemental package, which can be found on the Investor Relations section of our website and on file with the SEC on Form 8-K.

We filed our 10-K with the SEC this afternoon and an audio replay of this call will be available by this time tomorrow. Statements made on today's call regarding expected operating results and other future events are forward-looking statements that involve risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated, including those discussed in the Risk Factors section of our 2018 Form 10-K.

Forward-looking statements are made based on our current expectations, assumptions and beliefs, as well as information available to us at this time. Columbia undertakes no obligation to update any information discussed on this conference call. During this call, we will also discuss certain non-GAAP financial measures. Reconciliations to comparable GAAP financial measures can be found in our supplemental financial data.

With that, I'll turn the call over to Nelson Mills.

E. Nelson Mills

Thank you, Matt. Welcome everyone to today's call. Our fourth quarter results capped a strong year for Columbia, as we continue to capitalize on value creation opportunities. As many of you know, we now have one of the best-positioned portfolios across the entire office sector, with 80% of our assets in New York, San Francisco and Washington DC. Our strategy is focused on creating desirable boutique office space in some of the most appealing neighborhoods within these top gateway markets.

We're 97% leased today with the steadily growing cash flows. And of course, these results didn't just happen, as we thoughtfully and diligently assembled our portfolio over the past five years, we took on a number of value creation opportunities. Vacancy in near-term leasing role, repositioning of tenant rosters, building an amenity improvements and enhance service delivery. Our successful execution of these opportunities led to dramatic growth in rents and net operating income and the well positioned portfolio we have today.

Our strategy and efforts have been validated by growing list of some of the most dynamic companies in the world choosing Columbia as their home. They're actively seeking the type of environments we've created for their employees in these various submarkets. Today we are proud to count among our tenants great firms like Twitter,