Boston Properties Inc. (NYSE:BXP) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 10:00 am ET


Boston Properties Inc. (NYSE:BXP) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to Boston Properties Second Quarter Earnings Call. This call is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Ms. Sara Buda, VP of Investor Relations for Boston Properties. Please go ahead.

Sara Buda

Great. Thank you, and welcome, everybody, to the Boston Properties Second Quarter 2020 Earnings Conference Call. The press release and supplemental package were distributed last night and 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. If you did not receive a copy, these documents are available in the Investor Relations section of our website at A webcast of this conference call will be made available for 12 months.

At this time, we'd 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. These statements involve known and unknown risks and uncertainties, and although Boston Properties believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, we cannot assure you that the expectations will be attained. Risks and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements were detailed in yesterday's press release and from time to time in the company's filings with the SEC.

In particular, there are significant risks and uncertainties related to the scope, severity and duration of the COVID-19 pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures on Boston properties and our tenants. Boston Properties does not undertake a duty to update any forward-looking statements. I would like to welcome Owen Thomas, Chief Executive Officer; Doug Linde, President; and Mike LaBelle, Chief Financial Officer. During the Q&A portion of our call, Ray Ritchey, Senior Executive Vice President, and our regional management teams will be available to address any questions.

I'd now like to turn the call over to Owen Thomas for his formal remarks.

Owen David Thomas

Thank you, Sara, and good morning, everyone. I'm joining you today from Boston Properties Office in New York, where I've been working for almost a month, and it's great to be back. Our offices in Boston; Washington, D.C.; and obviously, New York City are open. And many of our employees have elected to join their property management colleagues and return to the office. Our buildings remain under 10% physically occupied at this time, but we anticipate some increase after Labor Day, as we and our customers are anxious to safely return to work in the months ahead. Despite a challenging environment, Boston Properties continued to perform in the second quarter and beat consensus earnings by $0.02, excluding charges.

We also collected 98% of our office rents, 94% of our rents overall and completed 942,000 square feet of new leases and renewals, including a