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Chambers Street Properties' (CSG) CEO Marty Reid on Q2 2015 Results - Earnings Call Transcript


Welcome to the Chambers Street Properties Second Quarter 2015 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. I would now like to turn the conference call over to Heather Gentry, Chambers Street Properties' Vice President of Investor Relations. Heather, please go ahead.

Heather Gentry - VP, IR

Good morning, everyone. Thank you for joining us today for Chambers Street Properties' second quarter 2015 financial results conference call. In addition to the press release distributed earlier this morning, we have provided our second quarter 2015 supplemental information in the Investor Relations section on our website.

Please note that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today.

We encourage listeners to review the more detailed discussions related to these forward-looking statements which are contained in the company's filings with the SEC. The definitions and reconciliations of non-GAAP financial measures contained in the company's financial results press release and supplemental information are available under the Investor Relations section on the company's website. As a reminder, forward-looking statements represent management's current estimates. The company assumes no obligation to update any forward-looking statements in the future. Joining me today to discuss our operational and financial results for the second quarter are Marty Reid, our Interim President and Chief Executive Officer and Chief Financial Officer and Chris Allen, our Executive Vice President of Capital Markets and Finance. Now I will turn the call over to Marty.

Marty Reid - Interim President, Interim CEO & CFO

Thank you, Heather. Good morning, everyone. Welcome and thank you for joining our second quarter 2015 earnings conference call and webcast. Before I discuss this quarter's financial results, I would like to provide a quick update on the recently announced proposed merger with Gramercy Property Trust. On July 1, we jointly announced we had entered into a definitive agreement to merge. The combined company should benefit from greater size and scale, broader portfolio diversification, increased financial flexibility and an efficient operating platform to drive future growth.

This transaction is expected to close in the fourth quarter of 2015. The preliminary joint merger proxy is expected to be filed following the preparation of required financial information and will contain additional information on the transaction. We will be available to answer any questions related to the merger transaction at the time of that filing. However, for the remainder of this call, we will focus on this quarter's financial and operational results and will only be answering questions at the end of the call related to the quarter's financial and operational performance.

Core funds from operations was $0.19 per share for the quarter and I am pleased to report that our portfolio was 99.3% leased at the end of the second quarter, up from 98.4% at the end of the first quarter. During the quarter, we sold two wholly-owned properties totaling 472,500 square feet for approximately $57.3 million. This included a $20.3 million disposition of 300 Constitution Drive, a 330,000 square foot industrial building in Massachusetts to a subsidiary of the Boston Globe. The Globe intends to use the property as their primary printing and distribution facility. Selling this previously vacant building to a user resulted in a very attractive price and contributed to the increase in our average percentage leased during the quarter.