PDM - Earnings call transcript Q2 2024 | Piedmont Office Realty Trust, Inc.

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Operator

Good day, and welcome to the Piedmont Office Realty Trust, Inc.

Second Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. I would now like to turn the call over to your host, Laura Moon, the floor is yours.

Laura Moon

good and operator, you, morning, everyone. Thank you XXXX Earnings appreciate joining us Quarter Second Piedmont's for Conference today We Call. our for Last section. night, that website includes and at that and is an supplemental we filed review the our our Form available for piedmontreit.com earnings on of under second quarter the XX-Q your X-K unaudited XXXX information our release Relations Investor

are matters forward-looking your These operational our in prepared The as forward-looking today. to will forward-looking as those to release statements statements press contain review to risks operating are address During senior differ anticipate actual Their by we from the which risks therefore, and you uncertainties, in activity results financial our of from Securities statements discussed leasing may statements income, Piedmont. filings. more include financing, hear future and dividends investment well related risks and detailed the everyone financial Reform Piedmont's and remarks, in activity this guidance, filings. statements company's and uncertainties questions answers discuss Private and to impacts related to call, of at our officers the and followed and of subject of Examples discussion as We forward-looking future forward-looking Act on the encourage this will with and SEC those results. defined these Litigation associated revenues SEC XXXX.

filed date as are Brent will contained may certain and same-store results. You were Also statements, opening based the we representatives release the provide financial upon Executive financial refer Officer, comments place call, as earnings regarding and have time, in in estimates are these operating and core should undue AFFO are company measures the measures statements second Smith, information, the of night. non-GAAP the made. which forward-looking our and NOI. information President last these not At Chief statements quarter supplemental any such to today's and FFO, these the non-GAAP this any FFO, on on of reliance and reconciliations of definitions reviewed The some Brent?

Christopher Smith

morning, quarter review Good and for as second our Laura. everyone, joining thank we results. today us Thanks, you

the Officer. to addition and this Operating our me on Chris Laura, EVP Investments; Bowers, George line Kollme, morning with our In Chief are our Financial Chief Bobby Officer; of Wells,

have of our far also management available full We we're quarter, had Piedmont exceptional year. pleased thus the very usual complement your answer to an team results with the questions. and this

Piedmont company and of completed million quarterly the leasing, in volume approximately that feet time, we it XX than was decade. in over operate is largest today, When As we markets. X over last at square portfolio night, bigger the the released has XX% reported a

we more property Out sizable of quality through and can occupancy success leasing leasing that very over square to you far this details a the the market will are XXXX. know, different office renewals, differentiated increase of As feet and in commitment to tenant the just we pipeline feet is a headline, unwavering and truly teams provide environments testament moment, our company that quarter's quarter's us at we of and provide George confidence all the balance the XXXX. space. specifics remainder X not was And importantly, believe our but new gives on the a leasing. related high total million portfolio XXX,XXX portfolio the volume of to the leasing, square included which in several of focused the of

delivered but by only landlord. not also they continue of We beneficiaries the superior that be also space, to sustainability-minded demanding well-capitalized tenants professional

believe flow office and cash performance. rental this share compete Furthermore, these strategy, and is trends next is driving highs. In be We market and to clearly portfolio will leasing medium-sized and to small- in in and our volumes targeting gain cycle. long-lasting, positioned addition, positive customer operating leasing extremely Piedmont's tenancy new Piedmont service resulting is well rates strategy

last quarter second able several on rent rental leases the roughly to on XXXX. quarter, X% to compared the continue success when over roll-ups on end those base to XX% basis the to basis XX.X% ending leasing of generated NOI leased in-service growth XX% leased a as double-digit at cash accrual and gains drive second increased the company's same-store and we in the during During rents portfolio, accrual occupancy XXXX. of of compared our at quarters approximately were cash second Likewise, on an commence. increase has respective quarter XX.X% rate The the X% quarter, a

a XX months the out. cash while to rents significant we to generated leasing As and for to volumes, up required these commence paying be timing leases reminder, have to can begin XX

yet can over robust, million the explain impacting leasing activity we in result, to equating decision-making wildcard annualized across a burn from or portfolio year, as And the leases of standpoint tenant leases will and be of annualized to $XX the remains over future So abatements are as backlog X.X in abatement, estimate NOI. we million a $XX once of moment. latter proposal pipeline an have half George the that both of square and the cash while off, future rents always commence presidential feet and elections a these of generated a tour commence million

just approximately new for million balance will to activity This at ago. and significant the year the credit that refinancing thank issuance issuing broader after this until quarter, finance able sheet the discuss, close maturities bond will detail, debt and end process, second the were meaningfully June to X-year begin more our liquidity transactions capital refinancing modest Piedmont's of over as to the I year disposition. final witnessing expected us year, to past in the a team latest during finally, want efficiently the X only first market, that bonds office to half improves gives address next And are and concludes Chris of we all position. XXX XXXX, bond year. spread compared the in entire we sheet, Bobby recycle balance several completing on offering $XXX another is Across crucial in improved activity, to of Turning transactional uptick we which points the belief small basis including can

to this year and Looking remainder ahead the of beyond.

who trends are Although migration challenges office quality and driving including suburbs, rationalized as flight and are the to sector leasing and momentum, be about that secular repurposed, continued commodity the the reside obsolete and continues to go the environment in optimistic by population vibrant office company-specific differentiation across space Sunbelt our over the I'll within the to between With we capital Piedmont office well-located operational into improving will that, sector hand product users, second details and on the access continued to to results. office that delivers more call quarter portfolio. the the George, our

George Wells

new results metrics. good leasing momentum for on tenant and our during strong several everyone. morning, of quarter Brent, existing Thanks, Exceptional renewals key and second space the to multiple operational led

core of today's modern All small medium-sized by are of markets blend well-amenitized attracted crucial office to dominated is options, the equipped with hospitality-infused and program meeting leasing to event a experienced people demand wide customers, food right bring for designing our Having solid and well amenities range spaces outdoor our portfolio our to beverage projects. that centers, rooms, collaborative and fitness together. is workspaces, training businesses of

less average asset more Northern again, which is our downtown square Overall, XX% years. quarters, and was beverage and X XXX,XXX feet, tenant for in size million transactions other we nearly our XX,XXX related twice Tower, over of square record average quarterly Once our term of that consistent leasing approximately average leasing feet previous precoded activity food XX with a record twice achieved of more at overall totaling XX in volume operators, The new new XXX,XXX Minneapolis in than square weighted one XX,XXX continues square with for feet offerings feet. XXX,XXX With X tenant XX our on the added our at we having activity transactions Virginia small than completed nearly and excellent a lease feet, square quarter, average. yield lease our focus quarter, enterprises further a with was range of the results and new total this vibrancy later dates areas. almost accounting commencement medium-sized This leases XX with to for enhancing in lease volume Clarton of each XXXX. our many to square feet quarterly common

including As rent has double-digit continuation each Brent the quarters, this a increases accrual roll-up the and mentioned quarter's earlier, metrics quite is in trend were quarter. of XX achieved past over roll-up impressive company strong

As forecasted and dipped the we subsequent end in which quarters, slightly our to will commence leasing quarter-over-quarter second XX.X%. record-breaking percentage despite lease quarter to down success, previously

Sunbelt our in-service most have lease of of occurred in tenant experienced portfolio majority in XX% we now, As vacancies activity our with quarters are our new reside. the several

driven structure and average remains renewal retention XX%. Leasing renewals during in the second with large rate in with around over large that of is for quarterly lease remainteportfolio activity capital several was none at quarter, several primarily per a foot flat space our for unusually X markets. most of quarters, our little per Excluding than square higher by spend in lease past for X% year slightly higher was the the commission move-outs, the average Dallas than typical $X the is historical other line expiring XXXX. Sublease

our attracted in operating of and top some to all announcements Next, volume Church market total deals, space, market largest bringing relocation easily T&L to Street travel fourth Leisure's key second was I'd of in our XXX made by lease accomplishments our including single like ease accessibility, of our project to X Orlando, and completely and to vacated signage highlight the the quarter and visible the West the downtown markets the revenue, quarter. from many feet. in above-average location, Orlando. most a sets in local this Church vibrancy Travel this user at another the with with few headlines the which and team building significant amineleasing backfilling thoughfar XXX,XXX secured headquarters in Starting ratio on occurred parking annualized of is and square

Additionally, lease be land with and team term. Kudos and that leasing to Pema such the a and leisure worked incentives will local over travel closely property XX-year realized our to city officials significant skillful City-funded win. for

retailer Ryan leasing feet. office XX% extending at e-commerce square deals realized activity portfolio volume of towers. and overall Dallas a sizable for Galleria XXX,XXX the with XX with leases Renewal Our most global that volume tact drove

our the As confidence of our remain extended easily leases. Galleria the leasing is proposals with Coming success lease XXX,XXX experiential an to center, XX Extensive Weston. this back office continues modernize not broadening reach offerings with or million trends well and reinforcing and F&B the The Its leasing second customers venue sit norm Applied executed, feet an to mix executed the said, And feet are centralized to respectively. exceptional XXX,XXX our pace called of which quite second Outstanding X Galleria record XX% retail experiential international XXXX, the other our region, for leases quarter. environment at in future uses Netflix feet, House. square be to also that notables location of be we soon Dallas pipeline customers activity underway at team on portfolio, the here. permanent D.C. trailing months. we X we leasing commercial square and are to Atlanta, on U.S. interconnected reinvest and accessible its XXX,XXX market, our its quarter fluid more leasing its per wide and That square Netflix's our aside, renovations and able late-stage Metro the mixed-use to interconnected leases may for feet neighbor, over market from negotiations volume. Gallery new replicate for Technologies XXX,XXX our Predictive with large positive our about retail XXXX near-term transactions were In par in Dallas policy around powerhouse of completed over a hotel overall retail, and in to location. drive largest of our square is our radius good XX in

expirations over the percentage lease lease call strong approximately for to year, Given year-end the projected remainder comments XX.X% I'll we range. to the limited XX.X% on and of the activity. basis are our his Chris? the points the through increasing Chris to of XX investment now amount pipeline turn

Christopher Kollme

Thank you, George.

XXX,XXX the closed sale a quarter of earlier, square Dallas. end, Carpenter mentioned of approximately The on leased Brent of which As in XX% XXX submarket asset office the building, as John to we was West Las Colinas is June XXXX. XX, foot XX-story subsequent

amount asset. investor And were we a around firmly local We our expressed who of importantly, resources the walkable the in simply total team highly and objectivity each Dallas and standards. While the as the remain an today's interest competitive and committed to the capital felt asset persistent assets. elevate vacancy We market elsewhere. of our time positioning, the better there, evaluated maintaining to believe required to significant retail offerings, approached the spent by we we in lack our are of

July So we an in transaction. in sold the asset all-cash

We throughout at have it's preliminary dispositions of dialogue any this continue potential time. premature on of assets to to those around but our portfolio, noncore speculate

to As new for our be existing eye with towards operating we investments, and portfolio. enhancing engaged an continue highly refining markets across our

Sun We disciplined we and the but Belt, are be tracking patient acquisition the front. will several opportunities across on

the disposition over appropriate. informed material to acquisition As always, call our that, results. activity review any you we or will to of I'll keep Bobby as turn With financial

Robert Bowers

Chris. Thank you,

generated however, expense quarter well X result earnings do financial this second this on quarterly today coverage quarter decreased have approximately we X remaining as accompanying entire ample we've the quarters, release, per information, XXXX. million complete first as complete. the of current ago. the Lincoln were this providing compared property CapEx to XXXX of Park major complete of share to the which work second details. million, $X.XX offset that today, diluted as cash of redevelopment per $XX of several during this over of sale diluted last a both remained expiration $XX XXXX. accrual the quarter some filed discussing of yesterday quarter the same for year I share share the financial net NOI review XXXX supplemental Core level increased per share XX-Q and want on the income needs. which and for building approximately One our months of during the please $XX to to be same-store for quarter, total expenditures the income was second will period is leases as the of $X.XX AFFO quarter of increased but this capital interest operating of second of we for reflects property basis funding capital million during second a by as approximately projects, a for of Core dividend FFO XXXX quarter note the versus more only the first a FFO the $X.XX as the year. foreseeable for And of XXXX of the was large quarter's year elevated discussed and While highlights during per call

Turning to balance sheet. the

remaining million debt next used $XXX office The of our notes received of in Brent along the fixed to issued pay $XXX the have bulk late balance of The a year. remaining funds portfolio. earmarked as maturities final debt portion was remaining immediately the has balance the $XX intend Until term and dispositions accretively credit $XXX million maturity, to currently off notes proceeds we unused demonstrates from the any million, June to unsecured no the first were with quarter in our X.XXX% Piedmont's appetite rates. next compared XXXX. interest the a term senior which early a to from line higher million on $XXX that for rate proceeds, are loan high-quality loan bank issuance matures of bond We that at As mature of and an X.X% other as already invest proceeds year. its the currently on improvement scheduled well we repay unused revolver. issuance, our XXXX paper unsecured we at particularly an in to believe mentioned, coupon, increased million marked until

expense to core end XXX XXXX narrowing activity, $X.XX impact net about per of interest West FFO Therefore, share same-store to result $X.XX guidance As increase. cash guidance, encourage annual to the note, increase the for current the in per to will third metrics for our basis in will $X.XX a This $XXX rest the quarter, of that and more beginning quarter per to Carpenter increasing of this year. John specific million our sale per Dallas earnings but I you of announced the of range the the of the we're to a $X.XX quarter to I subsequent increase, for midpoint with refinancing are review a year, accrual will share. X% on moving along year. we share, the our between of up we NOI from guidance yesterday for X% guidance X% guidance previous both the a flat and on release

expirations the of year to primarily strong expirations. results we As cash earnings that this due timing our that share low the year. to FFO improving this and relatively few we growing of quarters year, last begin over expected momentum large With quarter growth our to indicated trough to anticipate is the lease calls, by date, next lease later earnings mentioned, leasing with generation leasing be few George said, on continuing per third X FFO next the plus later followed

this rent of due commence. of yet annually $XX X.X the leases executed between the X Our This yet percentage rents. gap difference backlog of full XXX difference that million leases feet and cash have percentage abatements has to The to to not This a years. gap been The confidence in due growth current million rents lease square in over executed reported and points. commenced widest off. and over is is that begun of basis backlog burned XX.X%, of future to is represents of leases our related now paying yet commence

Page larger uncertain due we've dispositions does included and to any is this or of night capital space commence of nor which furnished have supplement. the executed Our forth additional paying the analysis what activity of quarterly are for which markets keeping guidance does the was to financial refer current practice, abatement, on contemplate and In difference vacant economic Page an leases nature with yet lease with acquisitions and on in major of currently normal our we analysis speculative provided for leases cash last set percentage along any revised your the this XX it percentage between XX to our supplement, timing the environment, review not lease as refinancing year.

to the guidance we I'll will and impacts occur. to Of you back the call on over of course, these turn closing With for any adjust comments. transactions communicate that, if Brent

Christopher Smith

you, Bobby. George, and Chris Thank

tenants business, great workplace on our until managing resonate alike. maturities prospective investments The addressed portfolio, with We credit. our of Piedmont's our with leasing to pool our in environment. sheet of well core and balance XXXX continue positioned, the leasing and all to million made is effectively designing, and our line focus combined having debt final of having availability strategy we've $XXX existing continues

Our expiration dividend rightsized schedule is and our manageable. very lease

net We to of with continue selective anticipate seller deleverage deployment ample a to be to sheet the being and enhance all assets and balance capital ready, resources. continue liquidity

when indicated, their an tenant increased result third and of With we quarter we February, impact growth to ask during the and I'll provide listeners to return vacates they recent a submit occupancy in operator quarters. originally our subsequent how now in drop of on earnings that, 'XX, As our with interest and anticipate expected XXXX back introduced instructions to guidance we expense this can questions. the in

questions public necessary. appropriate to disclosure, or later will make will now answer if all your We we attempt

Operator

a while now for poll moment is floor the hold Please we for questions. questions. Instructions] open just Certainly, [Operator

question is Baird. from coming first Thillman Nick Your with

is live. line Your

Nicholas Thillman

guess, front, city one, I The is there. on leases Amazon leasing guess, momentum the New appreciate I done. of I York. next the big update good

discussions asset then update So that for on there plans longer of term? any and sort the maybe

Christopher Smith

today. Brett. this for Nick, Thanks us is joining

as up discussed our to as the XXXX. in as you way think we now did point at put the bed with the known really least Amazon, out, last well, market expirations large lease at renewal quarter that's of Ryan I or all until

absorption to feel continue great the being terms runway a to in portfolio. get So in these we of able like

is Looking ahead York City you expirations. largest out, the to of XXXX, point New as those

York like towards When trending noted to just very again, be to and near expect noted, is in that New the that on But calls, renewal. we the the favorable that of on it 'XX, we've feel asset stabilize in to and to to term. lease we've in depends capital asset. like likely our receptivity time. continues We be a intention the As would overall more previously dispose dispose at market sometime as marketplace that dialogue we'd is the consummated,

Nicholas Thillman

under what's more leased then recycle maybe a other of Carpenter for then -- dispositions, what -- a to some is Or sort of assets vacancy is asset, And this that plans these there touching sale And I guess, earnings of more the those? John on of bit effect one-off? to sort the would sale? of that have little of kind

Christopher Smith

Yes. Great question.

a very a would as X,XXX fit their adept John had Freeway asset to the and of a of vintage Piedmont modern And the we're at We portfolio. our platform, didn't number evaluating lens I what frankly, just and we viability in older environment. portfolio. deem West 'XXs, assets close an Carpenter office worthy of think 'XXs, that attributes take kind own

we assets. elsewhere the it if portfolio -- elevated there vacancy elevated think really sorry, in levels our might occupancy leap-- levels, call I resides sorry, X and where at look be

just disposed West Carpenter Freeway. One John them of of we

Road. right We that one slower now. of is X focus given Admittedly, Mall asset positioning of to about just really in on XX that assets being submarket. leasing bit the as little is tech feel a good very the other lack it The top market in the

submarket. other our Center at one talked we the we've a but very which district, would challenged well positioned And about leasing we the LossClenas in like The momentum ones still other did in would vacate cleanest Corporate the being feel asset, amenitized then we is during that where the be tenant have be and overall lost good have there. quarter, very

be what like moving pruned. we last very one, if forward. So the last probably this about not need to one the overall, the good is of we I And feel portfolio, that feel we have ones, say would

the be impact limited Carpenter extremely West or John so on that to impact. earnings, of $X.XX again, would maybe terms in specifically Freeway Now

Nicholas Thillman

you capital much that basically How do that lease would one actually to put space have you had think to in up.

Christopher Smith

$XXX That the building built was common been a to joined areas. as in X actually for to Great probably would that question. approaching foot It lease-up unique capital. tenant-related towers have well have of base as asset. capital most We

refresh, think of So XXX,XXX lot for capital you if on a or would costs, number about once probably carry extra on ground square there's And a you $XXX per cover then exceed a in foot building. add square additional that foot approach the building.

Nicholas Thillman

And for then then of just the versus the leasing markets, well. renewal basically of seeing? down would be as leasing maybe appreciated that? on one break new the that you're Can last the within of if you And kind anything size pipeline between commentary overall. tenants And kind average

Christopher Kollme

been that is mentioned, our terms our late-stage release, large markets. of again, activity million tour out deeper activity Minneapolis percentage tour that say every the been past Atlanta. feet at And velocity, about proposal realm really that to I that one And further our happening executed. of Minneapolis, new starting assets activity. And new a bulk new spoke at in seeing would that the what is see end XXX,XXX About you we their being and July, XX% if new just half just of really then of Digging we looking we've as velocity bankaing square we several seeing in for more quarter Look, a in feet happy a about demand. activity. activity little I into for result of I happening happening lot pretty of recent what's quarters. that in X mentioned mean, that that obvious a look mean, it's of is then Dallas we've high legal we're the in pipe, can were the our the in stage, recently, of U.S. in a is as square market marketplace. Bank is third of range. for we're

on early XX.X% guys stage year stage with the we early and good to that the XX.X%. we activity, end recovery, stages by combine you when pretty late-stage percentage went or between of bolted about late ahead feel why So these

Operator

Green question next Burzinski Your with Dylan is Street. from coming

Dylan Burzinski

But the answered front, of quarter been you drivers leasing obviously, in great of by have might year. leasing of talk that great now. the to trying think hear on about activity? for kind to pickup return the leasing Most sort leasing a it guidance guys sort environment? of just on Can the just more macro through, of Is less increasing what sort some driving further front. on a uncertainty you it or guys is I normalized you details us more pickup? guess, just a some certainty think to Is to Can as less, give guys the macro of that you

Christopher Kollme

and Dylan, thank you us. joining for

retention depth, terms our about has portfolio, XX% also to ratio of floor feet a back or incremental those XX,XXX it's prior less benefit strategy backfill at average XX%. both calls, focus in space take overall think continued in factors. been exceeding own of around a us small medium think a been has One, say larger I'd of square I are noted service historically leasing of also their from on velocity it, these activity, in being giving leasing strength generally, average, a we've But tenant or on has enterprises our that having greater, in but that call as larger the or and what half tenants in our and to space. on new different couple I focus amenities and the to on level leasing our right

a last industries, over we've goods by back say, come the financial to into terms want I'd year, seen well specific of we're as as would meaningful consumer as we market industrial. But and really retail in if historically, And vary Now delve in now that some way, including professional buyers services seeing. well. of what

nontech our sorry, and it corporate market nonlarge economy continued you're continuing meet to So been depending I have -- drivers tech frankly, has U.S. which think and robust in. been nonlarge a those on

Operator

coming [Operator next Truist question from Michael Our Lewis Securities. Instructions] with is

Michael Lewis

ties not but signed this and not. sometimes up might So head commenced

those leases. spread with quarters the ongoing, is I $XX new rent several free about about guess, the per rent $X.XX between be we'll share. talked associated you $XX signed new you're have signing and over obviously next million versus So that that the be of commenced ultimately that you've in rent level of NOI earnings not million widened. what evens But several trying has $X.XX leases periods. about think really paying of last think about that leasing a we to normalized just built Should upside power done up quarters, what that out over to? occupancy that's what I'm and would is. what the real and

Robert Bowers

it's Bobby. part I'm Michael, that. address of going to

If back and years, over lease lease percentage X% gap the you look between economic is XX last the that X%. to about reported percentage

up is earnings. So that Yes, we -- dispositions what which that close you do picked here, here X% over quarters. about we over some will I low have expirations makes mean, should will explorations That some us disposition no but optimistic next the few gap about have take time. place,

think will that X%. back accretive be we it as So to towards us gap closes

Christopher Smith

from a to about, yet to XX what have at to time we've it, of to XX% today. It's talked into crossings still and Excelsior the you call is, say, that into Meridian we I XX% crossings. the take we comes as talked it, But abatement and to that call million vacates is going us about, period known current add will for now anywhere it too, joining that come as would months. fair with in commence. that at of portfolio, that, as portion backfill I'd say Michael, some to appreciate XX $XX portfolio that

the you that always timing of we so it's determine, And that impacted, and also as going forward. difficult by point leasing somewhat achieve to exact volume out, is

is gap good a velocity to staying this we will thing excessive ironically, leasing and backlog. increasing And mean because have that so wide that are that continuing Frank, that

As we that, approach imagine that, Bobby normalized call ZIP it's would XX% leased, pointed out, the which as has been level, in I X.X% it, historically to more code.

percentage between the X.X% gas, the and so And economic. those gap leased

But it's would widened if call to it do the XX to that a would, sooner. clarity. gives to had feel term. that's possible more another us, in make reach take gap you remain be, tell going it, we and so hope near probably it little correlated exceed And I XX see, bit we to to occupancy, like with momentum you even I that And the that and when when that be here that again, months. do we XX% specifically somewhat

Michael Lewis

nice Yes. mentioned the hopper to way. on Meridian. The you the some revenue in No, -- helpful. It's that's have and Excelsior

the Bancorp as of U.S. a becomes One is nice redevelopment about about things out, we looming now stop it could and move talking upside. this

the there as that timetables, redevelopment the as to cost, potential related that is to X NOI, stuff you So projects all have, redevelopments? far anything say

Christopher Smith

would X there Yes. say are the assets pool. in redevelopment I

year know, will of will a either redevelopment will next them out we out for service sometime into it operation pool be the coming as or And in of usually, One this occupancy. go chipset or year. service delivery of year. late It stay

renovation. more The modest but other Minneapolis, X, as we pool, Crossings. into just I and the under would added Meridian of Both redevelopment those meaningful noted, a you of call what Excelsior are X

going square running per about base they're a to service, cost buildings as of of lease-up. of reason $XX terms designed there's foot, -- have foot out then building, that's were and X $XX we'll buildings single-tenant both for The In such. those

So $XX you capital bathrooms, costs and neighborhood you're about size of haven't the those about talking overall lobby, building X cetera. if because in But of really spend, think buildings, million they the not together market make decade, building, almost of there's the in also somewhere base them reposition expense. a et around only been to some multitenant but to a base for marketed need new corridors,

So which Receptivity some that both up, opportunities rather we grand the And faster. mitigates in of frankly, the can redevelopment than meaningful, good. balance why not we market to think been our those flow ground get like we in has for the cash downtime. is of sheet, scheme very assets

As in the construction Excelsior are to it, through of will terms and actually along. little it mode to had we've actually XX,XXX year. further time. a that XX,XXX really progress. in with, noted square already lot leasing particularly a in the the of this Meridian, of about on leased bit full building, end both call little bit is well, foot towards it's a And as of underway They walk tenancy a But its success, be earnings behind at take but point We've now those which prior through XX% of able calls, bit tenancy. with then asset traction at little

pretty is of I and expect spend, terms would of capital modest call that but In across completed cost, that middle again, X, all the that, by it next year.

a of at the If more will spend And you we be capital wrapped larger time. the steady of state in base XX. think projects, kind that building our be across think redevelopment that about up really, we'll most of middle portfolio do by

Operator

At questions There turn in now no there time, I back to further floor Brent would queue. like Smith closing to for are remarks. any the over be to this

Christopher Smith

Jennifer, very and with away much. looking and of the giving about it, balance no joining now Conference today. America us growth of an we're very interested Hopefully, our tour we we kind be assets on track months growth. continue that of to about to But meet and on be City. or really please management, to down and you. the and Atlanta happening on story York in if with opportunity, across come really XX what's calls, extrapolating operate the XX petit you Thank other really the platform today. and markets. investors how taken Bank us to and that appreciate we're prior ground, perspective sheet within of We'll love platform here major we record to contact you September I from investors New reposition you We'd last, a excited to for leasing if Thank opportunity Again, appreciate as at you're us, repositioning appreciate over the everybody the I have really afternoon the created here and meeting, ahead able submarkets if and said we also we've that operational everybody and focus encourage in and the in XX that. debt talk future Bobby the an joining this ahead the call which will, can maturities you've to

Operator

everyone. you, conference today's does call. This Thank conclude

your phone a lines may and You your participation. have day. time, Thank for wonderful this disconnect you at

Piedmont Office Realty Trust (PDM) 1 Aug 242024 Q2 Earnings call transcript