Financial Data and Key Metrics Changes - The company reported core FFO of $0.48 per share for Q2 2025, with a year-to-date total of $0.97 per share, aligning with the full-year guidance range of $1.88 to $1.94 per share [24] - AFFO for the quarter was $0.41 per share, bringing the year-to-date total to $0.84 per share, tracking well against the full-year guidance range of $1.58 to $1.64 per share [24][25] - The net debt to trailing twelve-month adjusted EBITDA ratio stood at 5.3 times, slightly below the target range of 5.5 to 6 times, indicating a disciplined approach to leverage [22] Business Line Data and Key Metrics Changes - Same store core revenue growth for Q2 was 2.4% year-over-year, while core operating expenses rose by 2.2%, resulting in a percent NOI growth [16] - Blended rent growth for Q2 was 4%, driven by 4.7% renewal rent growth and 2.2% growth in new leases, highlighting the importance of renewals as over three-quarters of the business comes from this segment [17][36] - Average resident tenure increased to 40 months, with a renewal rate approaching 80%, reflecting high resident satisfaction and lower turnover costs [8][16] Market Data and Key Metrics Changes - The company acquired just under 1,000 wholly owned homes in Q2, primarily newly built, which supports the ongoing demand for rental units in the U.S. housing market [10] - The average new resident age is in the late 30s, with an estimated 13,000 people turning 35 every day for the next decade, indicating a long-lasting demand tailwind for the business [10] - Same store average occupancy for July was reported at 96.6%, with renewal lease rate growth at 5% and new lease rate growth at 1.3% [19] Company Strategy and Development Direction - The company aims to consistently deliver high-quality housing in desirable neighborhoods, supported by a resident-first service platform [12] - The launch of a developer lending program is intended to allow the company to participate earlier in the value chain, with the goal of purchasing communities upon stabilization [11] - The company is focused on maintaining strong partnerships with builders to enhance acquisition strategies and capitalize on market opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding the acquisition guidance of $500 million to $700 million for the year, supported by a robust pipeline [11] - The macro environment continues to reinforce the value of the company's offerings, with a significant need for new homes in the U.S. [9] - Management acknowledged the challenges posed by seasonal turnover and market supply, but remains optimistic about the long-term demand for rental housing [31][36] Other Important Information - The company has a strong balance sheet with approximately $1.3 billion in unrestricted cash and undrawn capacity on its revolving credit facility, providing flexibility for growth initiatives [22] - Over 83% of the company's debt is unsecured, and nearly 88% is fixed rate or swapped to fixed rate, enhancing financial stability [22] Q&A Session Summary Question: Occupancy guidance for the second half of the year - Management indicated that the occupancy guidance reflects expected seasonal turnover, with July occupancy at 96.6% and a typical decline anticipated in Q3 [30] Question: New lease pricing and market conditions - Management acknowledged that new lease pricing has been under pressure due to increased supply but expects improvements as the market absorbs existing inventory [34] Question: Transaction market and portfolio opportunities - The company continues to evaluate portfolio opportunities and engage with homebuilders for attractive acquisitions, maintaining a cautious approach [39] Question: BTR supply and scattered site inventory - Management noted that while scattered site supply is putting pressure on rents, the overall BTR market is showing signs of improvement [50] Question: Property tax expectations - Management anticipates that property tax expense growth will return to historical levels over the long term, despite current pressures [102]

Financial Data and Key Metrics Changes - Brookfield Infrastructure Partners generated funds from operations (FFO) of $638 million or $0.81 per unit in Q2 2025, a 5% increase compared to the previous year, improving to a 9% increase when excluding foreign exchange effects [6] - The increase in FFO was primarily driven by strong organic growth and contributions from tuck-in acquisitions completed in the prior year [6] Business Line Data and Key Metrics Changes - Utilities segment generated FFO of $187 million, slightly ahead of the prior year, benefiting from inflation indexation and approximately $450 million of capital added to the rate base [7] - Transport segment's FFO was $304 million, slightly ahead of the prior year, supported by high asset utilization in global intermodal logistics and increased traffic levels on toll roads [8] - Midstream segment generated FFO of $157 million, representing a 10% increase over the same period last year, driven by strong organic growth [8] - Data segment's FFO was $113 million, a 45% increase compared to the prior year, driven by contributions from a tower portfolio acquisition in India and new capacity commissioning [9] Market Data and Key Metrics Changes - The Canadian energy sector is experiencing strong demand, with a significant increase in requested power demand from data centers in Alberta, rising from 200 megawatts to approximately 12 gigawatts [14] - Improved end market diversification with key Canadian infrastructure projects enhancing global market access, including LNG Canada ramping up production [15] Company Strategy and Development Direction - The company is focused on capital recycling and has secured $2.4 billion in sale proceeds to date, achieving an annual record for BIP [9] - Recent acquisitions include a leading fiber provider in the U.S. and a railcar leasing platform, with a total capital deployment of $1.3 billion [22][25] - The company aims to capture opportunities in the infrastructure super cycle driven by digitalization and AI [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market conditions and the positive impact of AI infrastructure on business operations [32] - The Canadian midstream sector is expected to benefit from increased investor interest and organic growth opportunities [20] Other Important Information - The company has completed significant asset sales, including a 23% interest in an Australian export terminal and a partial sale of its UK Port operation, generating substantial proceeds [10][12] Q&A Session Summary Question: What prompted the acceleration in deal velocity? - Management noted that the increase in transaction activity is due to investors returning to the market, driven by strong capital markets and a positive outlook on operating conditions [32] Question: Are there opportunities to monetize partial stakes in Canadian midstream businesses? - Management indicated that while there are opportunities for partial sales, the focus remains on organic growth opportunities within the Canadian midstream sector [34][35] Question: What protections does Brookfield have in place for its investment in Intel's JV? - Management clarified that the arrangement with Intel is largely financial and contractual, minimizing commercial risks [41] Question: How should the potential impact of Class I railroad mergers be viewed? - Management highlighted that as the largest short line operator, they are well-positioned to maintain a competitive market and assist in the merger process [47] Question: Has the attractiveness of the U.S. as an investment geography expanded? - Management confirmed that the U.S. remains attractive due to the AI infrastructure boom, while also noting opportunities in other markets [52] Question: Are there plans to focus more on oil assets in midstream investments? - Management stated that while they continue to look at both gas and oil assets, most opportunities currently lie within existing portfolio expansions [71]

Financial Data and Key Metrics Changes - Same store revenues increased by 1% year-over-year, with same store NOI growing by 2% in the quarter [4][9] - Core FFO per share was $0.28, up from $0.27 in Q1 2025 [9] - Same store operating expenses decreased by 60 basis points compared to the prior year, fully offsetting softer revenue growth [5][9] Business Line Data and Key Metrics Changes - Renewal leasing showed strong retention, contributing to a modest increase in average occupancy [4] - Blended rent growth lagged expectations due to softer market conditions, with new lease trade-offs down 3.1% in the first half of the year [5][10] - Average effective monthly rents increased by 90 basis points, while bad debt improved by 20 basis points compared to the prior year [9] Market Data and Key Metrics Changes - Deliveries in the portfolio are tapering off, with supply growth expected to be less than 2% in 2026, a 43% reduction from 2024 [7] - Market conditions in Dallas and Tampa were noted as slower than anticipated, with increased supply impacting pricing power [44][45] - Strong absorption was observed in markets like Lexington, Columbus, and Oklahoma City, indicating potential for growth [46] Company Strategy and Development Direction - The company plans to recycle capital from older assets into newer communities with lower CapEx profiles [6][38] - An acquisition pipeline remains strong, with $315 million of additional acquisitions expected before year-end [7][13] - The company aims to maintain a balance between Sunbelt and Midwest exposure while focusing on growth in Orlando [65][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multiyear period of improving fundamentals in the multifamily sector, with expectations for stronger leasing environments in 2026 [18] - The company anticipates continued strong demand for its communities, supported by declining bad debt and increased tour volumes [18] - Management acknowledged lingering supply pressures and macroeconomic uncertainties affecting market rates [30][57] Other Important Information - The company completed 454 value-add renovations in the quarter, achieving a weighted average return on investment of 16.2% [6] - The balance sheet remains flexible with strong liquidity, with only 16% of total debt maturing before the end of 2027 [14] - The company expects to close on two communities in Orlando for a total purchase price of $155 million, enhancing market presence [12][13] Q&A Session Summary Question: Can you share how you approached your revised outlook versus historical seasonality? - Management indicated that the new lease trajectory was based on comparing expiring rents with current estimates, expecting continued month-to-month improvement [21][24] Question: Why is there not a significant pickup in new lease growth despite high retention? - Management attributed this to ongoing supply pressure and macroeconomic uncertainties affecting market rates [29][30] Question: What are the common threads for the assets held for sale? - The assets are older, with higher CapEx loads, and the company aims to recycle capital into newer assets with better growth profiles [37] Question: Can you provide an update on market conditions and visibility for the back half of the year? - Management noted that Dallas and Tampa faced unexpected supply challenges, but strong absorption is expected to improve conditions moving forward [44][45] Question: How is the current transaction environment affecting bid-ask spreads? - Management observed that sellers are becoming more rational, narrowing the bid-ask spread due to high interest costs and lease-up challenges [62][75]

Financial Data and Key Metrics Changes - Core FFO per share increased by 5.4% year over year, reaching $0.26 for the quarter and $0.51 for the six months [9][25] - Same store NOI growth was 2.5% for the quarter and 3.9% for the six months, with a target range of 3% to 4.5% for the year [9][10][25] - Occupancy rose by 100 basis points sequentially from Q1 to 93.9% [4][5] Business Line Data and Key Metrics Changes - The company signed $33.2 million in total lease value, slightly up from Q1, with leasing spreads of 41.4% for new leases and 15.2% for renewals, resulting in a combined leasing spread of 17.9% for the quarter [13][25] - The addition of new tenants, such as Ace Hardware and the Pickler, is expected to enhance same store NOI growth in the future [5][14] Market Data and Key Metrics Changes - The company is focusing on high-growth Sunbelt markets, which are experiencing strong leasing environments [4][5] - Significant urban developments are occurring around the company's properties, such as the $1 billion Park 8 Place redevelopment in Houston and TSMC's $165 billion investment in Phoenix [9][20][19] Company Strategy and Development Direction - The company aims to leverage its leadership position in the high-value shop space to achieve core FFO growth of 5% to 7% and same store NOI growth of 3% to 5% [4][9] - Strategic acquisitions, such as San Clemente in Austin and South Hewlett in Fort Worth, align with the company's criteria for growth and neighborhood dynamics [6][8][21] - The company is committed to capital recycling, with an estimated $40 million in acquisitions and dispositions planned for the remainder of the year [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving future same store NOI growth due to strong leasing activity and tenant mix improvements [32][33] - The company is actively managing expenses, reducing G&A and interest expenses by about 6% from the previous year [11][28] - Management reiterated guidance for core FFO per share and year-end occupancy, indicating strong momentum heading into the second half of the year [25][26] Other Important Information - The company has a strong liquidity position with $5.3 million in cash and $69 million available under the credit facility [28] - The company is focused on maintaining a dividend payout of approximately 50% of FFO, with plans to grow the dividend in line with earnings growth [28] Q&A Session Summary Question: Concerns about same store comps in upcoming quarters - Management expressed confidence in meeting forecasts due to improved occupancy and leasing activity contributing to future same store NOI growth [30][32] Question: Impact of new tenants on same store NOI - Management indicated that new tenants like the Pickler will commence in the second half of the year, contributing minimally to same store NOI this year but expected to enhance future growth [34] Question: Details on acquisitions and dispositions - Management confirmed ongoing activities related to $40 million in acquisitions and dispositions, emphasizing the importance of capital recycling [35][36] Question: Interest expense forecast changes - Management clarified that the increase in interest expense is due to timing related to acquisitions and is expected to be offset by increased non-same store NOI [39] Question: Insights on recent acquisitions - Management highlighted the quality of neighborhoods and potential for rent increases in the recent acquisitions, indicating strong upside opportunities [42][43] Question: Cap rates and market pricing trends - Management noted stability in cap rates for recent acquisitions, with a focus on asset-specific evaluations rather than broad market trends [52][53] Question: Same store growth guidance and leasing activity - Management confirmed that the guidance is based on normal leasing activity, with a mix of routine leasing and larger spaces that will contribute to future growth [60][62]

Portfolio Performance - Total portfolio coverage increased to 2.1x in TTM June 2025, compared to 1.9x in YE 2019 [11] - The experiential portfolio consists of 274 properties with 52 operators, representing approximately $6.5 billion (94%) of total investments, and is 99% leased or operated [12] - The education portfolio consists of 55 properties with 5 operators and is 100% leased [12] - Total investments across 329 properties are approximately $6.9 billion, with 99% leased or operated [15] Box Office and Experiential Updates - First half of 2025 box office was $4.1 billion, a 15% increase over 2024, confirming 2025 estimates of $9.3 billion to $9.7 billion [19] - Q2 2025 box office was $2.7 billion, up 37% compared to 2024 [19] Investment and Capital Recycling - Q2 2025 investment spending was $48.6 million, bringing the year-to-date total to $86.3 million [15, 28] - 2025 investment spending guidance remains between $200 million and $300 million [29] - Revised 2025 disposition proceeds guidance is $130 million to $145 million, up from the prior guidance of $80 million to $120 million [34, 48] - Total proceeds from property sales were $35.6 million, with a net gain of $16.8 million [34] Financial Highlights - Total revenue for the quarter ended June 30, 2025, was $178.1 million, a 2.9% increase compared to $173.1 million in 2024 [38] - Net income attributable to common shareholders for the quarter was $69.6 million, a 78.0% increase compared to $39.1 million in 2024 [38] - Total revenue for the six months ended June 30, 2025, was $353.1 million, a 3.8% increase compared to $340.3 million in 2024 [41] - Net income attributable to common shareholders for the six months was $129.4 million, a 35.2% increase compared to $95.7 million in 2024 [41]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $29.1 million, but excluding a $1.7 million reversal of interest receivable, total revenues would have been approximately $30.7 million, representing a 2.2% growth quarter over quarter compared to $30.1 million in Q1 2025 [14][15] - Funds from operations (FFO) on a diluted common share basis was $0.23, reduced by $0.28 due to one-time items, while adjusted funds from operations (AFFO) totaled $13.6 million, or $0.50 per diluted common share, also reduced by $0.06 from one-time items [15] Business Line Data and Key Metrics Changes - The occupancy rate slightly decreased from 90.9% to 90.7% during the quarter, although there was good leasing activity in the portfolio [8] - The company received $260,000 from the geriatric behavioral hospital tenant during the quarter, compared to $165,000 in the prior quarter [8] Market Data and Key Metrics Changes - The company acquired an inpatient rehabilitation facility for $26.5 million with an anticipated annual return of approximately 9.4% [10] - Six properties are under definitive purchase and sale agreements for an aggregate expected investment of $146 million, with expected returns ranging from 9.1% to 9.75% [10] Company Strategy and Development Direction - The company is focused on capital recycling opportunities to fund near-term acquisitions without over-leveraging the balance sheet [11][50] - The management is optimistic about the acquisition pipeline and is committed to closing these transactions while maintaining modest leverage levels [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing negotiations with the buyer of the geriatric behavioral hospital tenant, highlighting the buyer's experience and resources [21][44] - The company anticipates being able to increase occupancy by 100 basis points or more into 2026, driven by a focus on improving core portfolio performance [53] Other Important Information - The company declared a dividend of $47.25 per common share for Q2 2025, equating to an annualized dividend of $1.89 per share [12] - The company recorded a $1.7 million reversal of interest receivables and an $8.7 million credit loss reserve related to the geriatric behavioral hospital tenant [13] Q&A Session Summary Question: Was the recent acquisition part of the 100 pipeline? - Yes, it accounted for the reduction from seven assets to six [18] Question: How will the remaining 25% acquisition be funded? - The company is focused on capital recycling rather than relying solely on the revolver [19][20] Question: Are there plans for other options with the geriatric facilities? - The company is committed to ensuring the transaction closes and has other interested bidders if needed [21][23] Question: Will there be significant capital needed for deferred maintenance? - Any required work on the buildings is expected to be relatively minor [26] Question: What is the expected run rate for G&A expenses? - The adjusted G&A expense, excluding one-time charges, was $4.7 million, which may serve as a good run rate [27] Question: What is the leverage metric being monitored? - The company is comfortable with current leverage levels and plans to maintain them while managing acquisitions [31] Question: How are the remaining notes receivable performing? - The two remaining notes are in good standing, and the watch list remains consistent with no new top tenants added [38][39] Question: What is the status of the new operator for the geriatric facilities? - The operator has significant experience and resources, and lease terms are still under negotiation [44][46] Question: What is the expected cap rate for dispositions compared to acquisition yields? - Expected cap rates for dispositions are in the 7.5% to 8% range [51] Question: What is the expectation for core occupancy in the coming quarters? - The company aims to increase occupancy by 100 basis points or more into 2026 [53]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q2 2025 was $0.16 per diluted common share, totaling approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.62 to $0.64 [14][20] - Same store NOI growth for Q2 was 4.7%, with the same store portfolio 98% leased at quarter end [14][15] - Net debt to adjusted EBITDA was 5.8 times at quarter end, down 0.4 turns over the last twelve months [20] Business Line Data and Key Metrics Changes - The company leased approximately 2.4 million square feet year to date, with second generation base and cash based rent spreads of approximately 41% and 46% respectively [9] - The company reached a significant milestone by leasing a 1,100,000 square foot facility in Greenville Spartanburg, contributing $3.7 million of base rent in 2025 [14][10] - Portfolio occupancy increased to 94.1% in Q2, up from 93.3% in Q1 [16] Market Data and Key Metrics Changes - Net absorption in the U.S. was approximately 30 million square feet in Q2, with 20 million square feet occurring in the company's 12 target markets [8] - The construction pipeline in the target markets is approximately 90 million square feet, down nearly 75% from the 2022 peak [9] Company Strategy and Development Direction - The company continues to focus on its investment strategy in 12 target markets, which account for approximately 85% of gross assets, emphasizing positive demographic trends and advanced manufacturing investments [12] - The company is evaluating modest capital recycling opportunities outside of target markets for reinvestment, aiming to be largely earnings neutral [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business amid a soft industrial real estate environment and uncertain macroeconomic conditions [7] - The company anticipates lower tenant retention for 2025, with year-end same store occupancy expected to be approximately 97% to 99% [10][15] Other Important Information - The company sold a property in Chillicothe, Ohio for approximately $40 million at a cash capitalization rate of 4.3%, bolstering its cash position [11] - The company has approximately $71 million in cash on the balance sheet at quarter end [20] Q&A Session Summary Question: What drove the low cap rate on the sale? - The sale execution was better than if sold into the investor marketplace, as a user wanted to own the property [23] Question: Can you provide a sense of the magnitude of dispositions in the near term? - The company would test the market with about $100 million of dispositions going forward, optimistic about creating liquidity from assets outside of target markets [25] Question: What has traffic been like for leasing up larger empty boxes? - Activity in Indianapolis has picked up significantly, while Central Florida has seen slower activity but renewed interest recently [26][29] Question: Can you provide an update on lease expirations? - The company expects to backfill the 380,000 square foot facility in Indianapolis quickly, with positive activity noted [34][35] Question: What is the outlook for tenant retention in 2026? - Strong retention is expected, with a few tenants potentially moving out, but overall positive outlook for renewals [38] Question: Are there opportunities within the land bank? - There is potential interest in build-to-suit projects, particularly in Columbus, where the market has tightened significantly [40] Question: Will the cold storage or office JV properties be considered for sale? - Those portfolios are considered static, with one potential opportunity in the office JV [46] Question: How does the company view share repurchase versus acquisitions? - The priority is to generate more EBITDA and reduce net debt to EBITDA, with share repurchase being a potential part of the strategy [50]

Core Insights - SL Green Realty reported a GAAP net loss per share of $0.16 for Q2 2025, which was better than analysts' expectations of a loss of $0.17, while revenue exceeded consensus estimates [1][5] - Funds from operations (FFO) per share decreased by 20.5% year-over-year to $1.63, reflecting operational challenges despite increased revenue [2][5] - The company raised its full-year FFO guidance to a range of $5.65 to $5.95, driven by anticipated income from debt and preferred equity investments [16] Financial Performance - Revenue for Q2 2025 was $241.9 million, an increase of 8.6% from $222.8 million in Q2 2024, and above the estimate of $160.41 million [2][5] - Same-store cash net operating income (NOI) decreased by 1.0% year-over-year to $153.3 million [2][6] - Manhattan same-store office occupancy was reported at 91.4%, showing slight decline but remaining stable [2][6] Leasing Activity - The company signed 46 new office leases totaling over 541,000 square feet during the quarter, with an average lease length of 7.8 years and an average annual rental rate of $90.03 per square foot [6][12] - Mark-to-market rents increased by 2.4% for the quarter, although there was a slight decline of 0.4% over the first half of the year [6][12] - Management aims to achieve 93.2% occupancy in Manhattan properties by year-end, supported by leases already signed [13][16] Investment Strategy - SL Green acquired a 49.9% interest in 100 Park Avenue for $14.9 million and sold its 85 Fifth Avenue property for $3.2 million in net proceeds [7] - The debt and preferred equity portfolio increased to $525.4 million, with a weighted average yield of 7.0% [9] - The company is focusing on alternative revenue sources, including the SUMMIT One Vanderbilt observation deck and special servicing/debt businesses, which have seen increased activity [14] Financial Management - Net debt rose to $3.64 billion, reflecting ongoing capital recycling and refinancing activities [10] - The company maintained its regular dividend payout to shareholders without any increase or cut during the quarter [11] - Cash and available investments exceeded $180 million, providing additional liquidity [10] Future Outlook - Management expects continued leasing success and stability in income from both property and investment portfolios to meet its financial targets [16] - Key metrics to monitor include new lease activity, rent growth on renewals, and the performance of debt and preferred equity investments [17]

Core Viewpoint - Zacks Investment Research has initiated coverage of Stratus Properties Inc. with a Neutral recommendation, highlighting a combination of development potential and operational challenges [1] Group 1: Company Overview - Stratus Properties Inc. is a Texas-based real estate development and leasing company, positioned to unlock value through disciplined capital recycling and a substantial land bank in high-growth markets [2] - The company has recently refinanced major properties, resulting in over $12 million in cash and expanded credit capacity, as it shifts focus to new developments in Austin and surrounding areas [2] Group 2: Valuation and Asset Management - Asset sales have validated Stratus's valuation strategy, with the sale of West Killeen Market generating $7.8 million in net proceeds, exceeding the company's NAV estimate [3] - Management's ability to extract value and redeploy capital is further demonstrated through transactions involving Magnolia Place and Amarra Villas [3] Group 3: Development Pipeline - Stratus controls over 1,500 acres of entitled land, with projects like Holden Hills and The Saint George addressing housing demand in Austin [4] - Recent regulatory changes in Texas have eased permitting constraints, enhancing long-term development potential [4] Group 4: Financial Performance and Challenges - Revenues fell sharply in Q1 2025 to $5 million from $26.5 million a year earlier, leading to a $2.9 million quarterly net loss due to no property sales during the period [5] - The company faces high leverage with $210 million in floating-rate debt, exposing it to interest rate volatility and liquidity pressures, as indicated by negative operating cash flow in Q1 2025 [6] Group 5: Market Position and Investor Sentiment - Stratus's stock performance has lagged behind peers, trading at a discount to its underlying asset value, but with elevated valuation multiples relative to the broader sector [7] - The market appears to be pricing in execution risks and limited earnings visibility, warranting caution for investors [8]

Core Insights - Highwoods Properties (HIW) shares have increased by 14.5% over the past three months, outperforming the industry average rise of 5.5% [1] - The company's portfolio is strategically located in high-growth Sun Belt markets, which are expected to benefit from a rising demand for high-quality office spaces as organizations push for return-to-office mandates [1][4] - The net effective rents for HIW in Q1 2025 were reported to be 20% higher than the average of the previous five quarters, indicating strong demand for its properties [5][7] Financial Performance - Analysts have revised the Zacks Consensus Estimate for HIW's 2025 funds from operations (FFO) per share to $3.39, reflecting a positive outlook [2] - The company has a healthy balance sheet with over $700 million in total available liquidity as of March 31, 2025, and no consolidated debt maturities until Q2 2026 [9] Strategic Initiatives - Highwoods is implementing a disciplined capital-recycling strategy, having completed buyouts worth $3.6 billion and dispositions totaling $3.0 billion from 2010 to 2024 [6] - The company has a development pipeline valued at $474 million, which is 62.8% pre-leased and expected to generate over $40 million in incremental annual net operating income (NOI) upon stabilization [8] Market Trends - The demand for office spaces is anticipated to be driven by inbound migration and significant investments from office occupiers in the Sun Belt regions, alongside hiring plans in the company's markets [4] - The recovery in leasing activity and the return of tenants to offices are expected to support the fundamentals of the office real estate market [4][7]