Financial Data and Key Metrics Changes - Total revenues for the second quarter were $37.3 million, down from $40.1 million in the same quarter of the prior year [14] - Core FFO for the quarter was $11.5 million or $0.20 per share, compared to $14.2 million or $0.25 per share in the same quarter of 2024 [14] - Adjusted EBITDA was $18 million versus $20.5 million in the same quarter of 2024 [15] - G&A expenses were $4.8 million, up from $4.5 million in the same quarter of 2024 [15] - CapEx and leasing costs increased to $15.6 million from $6.3 million in the same quarter of 2024, driven by accelerated leasing activity [15][16] Business Line Data and Key Metrics Changes - Leasing momentum continued with 639,000 square feet leased as of July 31, building on last year's total of 1,100,000 square feet [5] - The weighted average lease term increased to 5.5 years from 5.2 years last quarter and 4.2 years a year ago [7] - The operating property occupancy rate was 77.4%, an increase of 30 basis points sequentially, while the leased rate was 79.1%, up 170 basis points sequentially [7] Market Data and Key Metrics Changes - The company sold four vacant properties totaling 434,000 square feet for a gross sales price of $26.9 million, approximately $62 per square foot [9] - Agreements are in place to sell five traditional office properties totaling 540,000 square feet for $57 million, or $106 per square foot, expected to close in the second half of the year [9] Company Strategy and Development Direction - The company is shifting its portfolio focus from traditional suburban office properties to dedicated use assets (DUA), which include medical, lab, R&D flex, and non-CBD government properties [10][11] - Approximately 32.2% of the portfolio by annualized base rent and 25.3% by square footage were DUA properties at quarter end, with expectations for this percentage to increase over time [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing activity and the potential for portfolio occupancy to rise after 2025 [8] - The company is committed to disciplined execution and portfolio stabilization, with a focus on enhancing asset value and maintaining liquidity [12][13] - The outlook for core FFO has been raised to a range of $0.67 to $0.71 per diluted share, up from $0.61 to $0.70 [18] Other Important Information - The company ended the quarter with total liquidity of $257.7 million, including $17.7 million in cash and $240 million available on the credit facility revolver [16] - The net debt to gross real estate assets was 32% at the end of the quarter [17] - A quarterly cash dividend of $0.02 per share was declared by the Board of Directors [18] Q&A Session Summary Question: Are there any questions at this time? - There were no questions during the Q&A session [20]