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Nuggets from the Q1 Brandywine Earning Call:
SOMEWHAT OPTIMISTIC COMMENTARY FOR PHILLY. BUT THE STOCK IS IN THE DUMPS: DIVIDEND YIELD IS NOW 20%. From the call:
- From an occupancy and leasing standpoint, our Washington, D.C. portfolio continues to underperform. Conversely, our Philadelphia CBD, University City, Pennsylvania suburbs and Austin portfolios which cover 94% of our NOI are 91% occupied and 92% leased.
- We also from an additional liquidity enhancement plan to enter into 2 construction loans this year; one in our 100% fully leased 155 King of Prussia Road and our Life Science project in Schuylkill Yards later this year.
- 3025 JFK, our life science office residential tower is on time and on budget for delivery in the second half of this year.
- We have a current active pipeline totaling 625,000 square feet on that project, which is up 153,000 square feet from last quarter. That’s obviously for the life science and office components. The project continues to see great activity as the construction progresses, superstructure now complete lobby finishes are going in. We’ve done over 134 Hard Hat tours. We also expect to start delivery the first block of residential units in the second half of this year, so all remains on schedule there as well
- Our dedicated life science building at Schuylkill Yards 3151 Market. We have a pre-leasing pipeline of 423,000 square feet, again up from last quarter. That project will be delivered in the second quarter of 2024. And we have plans underway to obtain a construction loan and that 50% loan to cost range later this year.
-I’ll George, anything add to that.George Johnstone No, I mean, great commentary, I think a couple of things, I would – we’re outperforming in just about every sub market in Philadelphia and in the Pennsylvania suburbs, in terms of our overall occupancy as compared to the market. And, even in downtown Philadelphia, including our joint venture holdings that at Commerce Square mean, we’ve got about a 6.6% vacancy factor in a market that’s between 15% and 20% depending on the brokerage research house. So, good levels of outperformance there. I do think the portfolio is situated well to accommodate the trend of people moving up the quality curve.
- It’s just my other question relates more to life sciences wondering with the labs if you’re at a point where any of those tenants are converting into prospective tenants into your Schuylkill Yards developments at this point or if it’s just too early or just any other broader comments on the life science component of leasing?Gerard Sweeney Yeah, Tony, good question. We do. We think that there’s a number of tenants who are at or currently occupy space at B.Labs that remain interested in looking at 3025 and 3151. Frankly, one of the dynamics driving the conversion, the ninth floor was that some of those tenants had an immediate need for additional growth capacity.
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