I6 October 2016
I6 October 2016
REITs
US REIT 3016 Earnings Preview
• Foreign capital flows into US CRE
• Investment market update. The CBD price index has been generally
trending up since May, following a weak start in 2016
• Best use of capital in today's compressed yield environment
• State of current capital markets
• Overall demand trends in NYC, the impact of Hudson Yards and
Manhattan West, and the strength of the high end market
• D.C. market tenant trends with brokers highlighting muted demand
• Fundamentals in Boston which continues to benefit from a diverse
tenant base
San Francisco sub-lease space/demand trends and overall tenor of
technology tenants, given market concerns. Pre-leasing activity has
kept up with new supply so far
Health of the LA market, where demand has been strong recently, but
job growth has slowed of late
• Update on Penn Station redevelopment RFP
Figure 70: BXP 3016 results preview
IOW
Estrines
FFO/sh
Operating Make
Total leasing volume (100%)
Total occupancy (100%)
oiq ch
wy ch
Total gross rent spread (cash. 100%1
SS NOI growth Wy (cash, pro-rata)
Note consensus estimates are based on ThomsonReuters compiled data as of 10/14/16
Update on the high end NYC market, with recent commentary from BXP more positive comps ed to peers. BXP
has some available space in the GM Building and 250 West 55th Street that would fall under this category 301e
Actual
$141
Actual 2016
Actual
SI 43
Actual
1,329,648 925.601
90 80%
-20bp
-30bp
183%
3.3% 91.30%
2Cbp
-70bp
5.6%
-0.5% 3016
Actual DBs
SI 42
Das Cons
SI 43
Actual
9015%
.65bp
-I15bp
15.0% commenced 2016
Phis 30 Guido Post 30 Guide Ces Cons
$5.92 - $5.99 $597 $5.98
Pre 30 Guide Peet 312 Gide Dee
90 0% - 91 6% 90 84% an
Obp
11.3% commenced
1.00% - 3.00%
Deal flow in LA following Colorado Center purchase
Management recently signaled a potential increase to the dividend following the scheduled Board meeting in
October
• Update on the $80MM NOI bridge through 2017
• Update on Salesforce Tower, which was 59% preleased as of 2Q16 (management expects to reach 70% by
YE2016)
• Update on potential 2016 development starts: Springfield Metro North, 20 City Point, and Reston Block 5
• Update on preleasing activity at Kendall Center, with management noting during the 2Q call that they were in
"advanced discussions" for a 400ksf prelease
• BXP typically provides its initial FFO guidance for the following fiscal year in 3Q. We are at 86.50 and
consensus is at $6.40
• 30 FFO/sh guidance of $1.40-$1.42. (DBe at $1.42)
Juv . Dallthe SIM. COnCINIV COMIA Thom on
Page 38 Deutsche Bank Securities Inc.
CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092258
CONFIDENTIAL SDNY_GM_00238442
EFTA01388609