Blaine Heck

Framed the monetization arc explicitly: developer yield around 8% moving toward a 5.5% to 6% value on delivery.

Doug said BXP not looking to exit Kendall Square or Urban Edge life science. Demand shifting to more office and less lab intensity. Signed an LOI for 49K sq ft life science office. Life science market has bottomed with incubator activity improving. Big pharma acquiring Boston-bred life science companies is positive for the ecosystem.

Mike projected AFFO around $4.40-$4.60 range, slightly above 2025. Less rollover exposure helps despite higher free rent ($130-150M vs prior year). Leasing costs expected at $220-250M, CapEx at $100-125M. AFFO will lag FFO as new leases start in free rent periods, converting to cash in 2027.

Owen said negative media coverage is overblown. State controls over transit and taxes provide guardrails. No appetite in Albany for NYC tax increases. Mamdani's potential hire of Jessica Tisch as police chief seen positively. BXP is more constructive than media narrative suggests.

Mike explained Q1 seasonality in G&A inflated the metric to 8.3x vs normalized 7.9x. Expects leverage to moderate after 290 Binney delivers mid-2026. Funding from $250M land sales, private equity, and potentially public equity.

Doug said clients prefer moving to renovating 10+ year old space. Hilary noted confidence in NY driving expansion. Rod noted long-term commitment trend replacing short-term pandemic renewals. Owen cited BXP moving its own offices as proof.

Tim acknowledged 20bp occupancy outperformance, explained some was pull-forward from surprise renewals plus strong pipeline giving confidence for remainder.

Letter outlined three priorities: extending leadership as best-in-class operator, capturing value creation in logistics and data centers, and growing AUM in strategic capital through existing and new vehicles. Arndt said dialoguing with world's larger investors with very productive couple of months and lot of interest. Capital not the constraint with focus on determining right capital structure. Meaningfully through process expecting to know more in coming weeks and months. Taking care to get right given scale of opportunity. Balance sheet comfortably carrying program which has been very profitable.

Moghadam said by definition markets with strong long-term fundamentals taking biggest short-term hit like Southern California. Two quarters ago people writing off SoCal. Once couple of deals lost there and goods seen flowing through ports from somewhere other than Kansas FOMO will return. Market will bounce off exaggerated bottom. Caton added secular outperformance in high barrier geographies can really move quickly. International theme outperforming with Europe Latin America and consumption centers like Mexico City and Sao Paulo.

Moghadam said pre-April 2 seeing really strong positive interest with more discussions inquiries and reversing rates than any time since 2022. Post-April 2 people waiting on denominator effect from stock market decline in teens. Institutional over-commitments to private asset classes like venture and PE facing curtailed liquidity from fewer IPOs. Denominator effect will determine how much money comes out not interest in industrial real estate which was good and getting better.

Arndt said lease mark-to-market about 30% at end of 2024 broadly representing the United States including SoCal rent levels. Rent change expected relatively level over quarters so same-store cadence really function of occupancy. Expects some give back on occupancy in next coming quarters followed by rebuild. Lower same-store potentially in front half growing in second half.