Financial Data and Key Metrics Changes - The second quarter net loss was $89 million or $0.51 per share, which included impairments in the Austin portfolio totaling $63.4 million or $0.37 per share [28] - The second quarter FFO totaled $26.1 million or $0.15 per diluted share, meeting consensus estimates [28] - The capital ratio improved to 4.1%, with a target range now set at 9% to 10%, the lowest in the past five years [8][10] Business Line Data and Key Metrics Changes - The quarterly retention rate was 82%, with leasing activity approximating 460,000 square feet, a 35% increase quarter over quarter [5][6] - The occupancy rate ended the quarter at 88.6% and the leased percentage at 91.1% [6][7] - The mark to market was 2.1% on a GAAP basis, with a negative cash basis [8] Market Data and Key Metrics Changes - In Philadelphia, the occupancy rate was 93.5% and the leased percentage was 96.5%, capturing 54% of all office deals in the Central Business District [7] - The Austin market is now 78% leased and occupied, showing improvement due to property sales [8] - The life science sector is expected to be a growth driver, supported by a strong regional healthcare ecosystem [14] Company Strategy and Development Direction - The company plans to recapitalize residential and commercial developments as leasing percentages approach 90% [32] - A new hotel development project has commenced, with a projected cost of less than $60 million and an anticipated 10% return on cost [23] - The company aims to return to investment-grade metrics over the next couple of years by reducing overall leverage [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving real estate market and the solid operating platform [40] - The company anticipates continued strong operating performance supported by limited rollover risk and an expanding lease pipeline [10] - Management noted that the quality bifurcation in the office sector continues, with high-quality buildings outperforming [13] Other Important Information - The company has no unsecured bond maturities until November 2027, providing ample liquidity [11] - The average cap rate on property sales was 6.9%, with a price per square foot of $212 [25] - The company recognized approximately 26% of deferred tenant improvement costs totaling $5.5 million during the quarter [26] Q&A Session Summary Question: Can you discuss capital provider appetite for recapitalization? - Management noted strong investor appetite for high-quality private investments, with ongoing discussions for recapitalization [44] Question: Will the hotel development be owned long-term or monetized? - The company is open to bringing in equity partners or joint venturing the hotel project, viewing it as a significant addition to their amenity program [48] Question: What are the deal economics for the 100,000 square foot lease at Uptown ATX? - The lease is a ten-year agreement with occupancy expected in early 2026, and the economics were in line with projections [53] Question: What lease percentage is targeted before recapitalization of office components? - The target is to reach 85% leased for the 3025 project, with visibility for further growth [56] Question: What flexibility does the company have regarding dividends? - The company has room to adjust dividends based on sales and tax losses, with ongoing discussions with the board [62] Question: Can you discuss the depth of the market for office assets? - The return of significant private investors for high-quality assets is encouraging, with a notable increase in office sales compared to previous years [66]

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]

Portfolio & Strategy - Cousins Properties focuses on premier Sun Belt lifestyle office assets, with 100% of its portfolio in the Sun Belt and 100% Class A properties built around 2010[3] - The company's asking rents are 16% higher than pre-pandemic levels and 25% higher than Class A averages[3] - Cousins has recycled over $1 billion of older assets during the COVID pandemic[3,44] - The company sourced over $500 million of new investment opportunities in 2024[3] Growth & Development - Cousins has an attractive development pipeline of 1.2 million square feet and a land bank supporting 5.1 million square feet of additional development[3] - Since 2019, Cousins has experienced NOI growth of 18%[3] Financial Strength - The company maintains a strong balance sheet with $1 billion in liquidity[3,57] - Cousins' leverage is at 5.1x Net Debt/EBITDA, among the lowest in the office sector[3] - The company has increased its dividend by 10% since COVID while maintaining a conservative payout ratio[3] Market Trends - The company benefits from the "flight to quality" trend, with 64% of its portfolio developed or redeveloped since 2010[3,30]

Portfolio & Market Highlights - The company has a portfolio of 267 million square feet as of March 31, 2025 [10] - The portfolio is 881% leased as of March 31, 2025 [10] - Over 95% of the portfolio's NOI is in the Sunbelt region [10] - More than 90% of NOI is in the top 20 ULI markets [12] Financial Performance & Outlook - The company's 2025 FFO per share outlook ranges from $331 to $347 [149] - Same property cash NOI growth is projected to be between -40% and -20% [149] - Completed dispositions are expected to be $145 million [149] - Completed acquisitions are expected to be $138 million [149] Investment Strategy - The company has completed $138 million in acquisitions in 2025 [115] - The company has completed $145 million in non-core dispositions in 2025 [119] - The company's development pipeline includes 14 million square feet [10]

Financial Data and Key Metrics Changes - The company's net operating income (NOI) for the first quarter was $26 million, which is $500,000 higher than the previous quarter, driven by higher revenue and lower operating expenses [15] - Core funds from operations (FFO) were reported at $12.3 million or $0.30 per share, an increase of $600,000 from the previous quarter [15] - Adjusted funds from operations (AFFO) were $6.5 million or $0.16 per share, with no single tenant improvement or leasing commission impacting AFFO by more than $500,000 [16] - Same store cash NOI increased by 4.4% or $1.1 million compared to the first quarter of 2024 [16] Business Line Data and Key Metrics Changes - The company completed 144,000 square feet of new and renewal leasing in the first quarter, with the largest lease being a 34,000 square foot new lease at the Papago Tech property in Phoenix [11] - The Greenwood Boulevard property in Orlando was fully leased to a single tenant, with a new 66,000 square foot tenant set to take occupancy later this year [12] - The overall portfolio occupancy ended the quarter at 84.9%, slightly lower than the previous quarter due to known vacates [17] Market Data and Key Metrics Changes - Nationally, office leasing volume was 15% higher than a year ago, with JLL estimating that it has returned to approximately 89% of typical pre-pandemic levels [10] - Higher quality office spaces in Sunbelt markets continue to outperform, with significant leasing activity noted in Phoenix [10][41] Company Strategy and Development Direction - The company is redeveloping its City Center property in downtown St. Petersburg into a 49-story residential condominium and mixed-use tower, partnering with Property Markets Group [6] - The project is expected to capitalize on luxury demand and is anticipated to have significant long-term value creation potential for shareholders [9] - The company is focusing on Sunbelt markets for capital investment, where it sees the most value creation opportunities [41] Management's Comments on Operating Environment and Future Outlook - Management noted a positive trend in overall office real estate fundamentals and expects occupancy to increase as signed leases take effect [10][31] - The company anticipates a decrease in occupancy in the short term due to tenant downsizing but expects to return to guidance ranges by year-end [31][32] - Management expressed confidence in the leasing activity in Phoenix and other Sunbelt markets, indicating strong demand [41][42] Other Important Information - The company has $646 million in total debt as of March 31, with a net debt to EBITDA ratio of 6.7 times [19] - The credit facility matures in November 2025, with an option to extend to November 2026, which the company expects to exercise [20] - Two property debt maturities are scheduled for 2025, with ongoing discussions for term extensions [21] Q&A Session Summary Question: How did the new development project come about? - The project was initiated about two years ago, recognizing the strong market for development in Downtown St. Petersburg [23] Question: What is the timing for the project? - Presales are expected to commence soon, with a construction period of approximately three years following that [26] Question: Will there be any disruption to existing property during the redevelopment? - Alternative parking arrangements are being made for tenants to minimize disruption during the redevelopment [28] Question: What is the pace of occupancy this year? - The company has 143,000 square feet of leases that have yet to take occupancy, which is expected to positively impact occupancy in the coming quarters [30] Question: Will there be any vacancy at Greenwood Boulevard? - There will be a temporary dip in occupancy due to tenant downsizing, but it is expected to return to full occupancy before the end of the year [35] Question: How are the top Sunbelt markets performing? - The company is seeing strong performance in Phoenix and other Sunbelt markets, with significant leasing activity reported [41][42]

I N V E S T O R P R E S E NTATION M A Y 2 0 2 5 N Y S E: CIO FORWARD-LOOKING STATEMENTS The Terraces, Dallas Bloc 83, Raleigh Block 23, Phoenix Note: All information as of March 31, 2025 (1) Percentages based on management's estimate of aggregate gross asset value in each market 3 This presentation contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the S ...

Financial Data and Key Metrics Changes - Annualized revenue decreased by $93 million or 19% to $405 million compared to the previous year [8] - Interest expense increased by $17.9 million to $53.4 million, representing a 50% year-over-year increase [8] - Normalized FFO for Q1 was $4.4 million or $0.06 per share, down from $20.9 million or $0.36 per share in Q4 2024 [13] Business Line Data and Key Metrics Changes - The company executed 11 leases totaling 223,000 square feet with a weighted average lease term of 10.3 years and a 13.5% roll-up in rent [9] - Concessions and capital commitments declined by 22% quarter over quarter to $4.62 per square foot per year [9] Market Data and Key Metrics Changes - Same property occupancy was reported at 85.4% as of March 31, 2025 [5] - The market vacancy rate in Washington, D.C. exceeded 23%, worsened by federal leasing uncertainty [7] Company Strategy and Development Direction - The company is exploring options to address financial commitments while managing properties and leasing [9] - There is a focus on enhancing corporate sustainability practices and advancing initiatives that benefit tenants and communities [12] Management's Comments on Operating Environment and Future Outlook - The office sector is facing headwinds from work-from-home trends and macroeconomic uncertainties [6] - The company expects normalized FFO for Q2 to be between $0.09 and $0.11 per share, driven by higher NOI from lower seasonal operating expenses [14] Other Important Information - The company has $280 million in debt principal payments due in 2026 and limited liquidity of $73 million in cash [9][16] - Upcoming lease expirations through 2026 total 1.6 million square feet, representing $45 million or 11% of annualized rental income [11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - Annualized revenue decreased by $93 million or 19% to $405 million compared to the previous year [8] - Interest expense increased by $17.9 million to $53.4 million, representing a 50% year-over-year increase [8] - Normalized FFO for Q1 2025 was $4.4 million or $0.06 per share, down from $20.9 million or $0.36 per share in Q4 2024 [13] Business Line Data and Key Metrics Changes - The company executed 11 leases totaling 223,000 square feet with a weighted average lease term of 10.3 years and a 13.5% roll-up in rent [9] - Concessions and capital commitments declined by 22% quarter-over-quarter to $4.62 per square foot per year [9] - Lease expirations through 2026 total 1.6 million square feet, representing $45 million or 11% of annualized rental income [11] Market Data and Key Metrics Changes - Same property occupancy was reported at 85.4% as of March 31, 2025 [5] - The market vacancy rate in Washington, D.C., where the company has a concentration, is over 23% [7] - The U.S. Government is the largest tenant, representing 16.8% of annualized revenue [6] Company Strategy and Development Direction - The company is exploring options to address financial commitments while managing properties [9] - There is a focus on enhancing corporate sustainability practices and advancing initiatives that benefit tenants and communities [12] - The company is evaluating disposition opportunities to mitigate occupancy risk and carry costs associated with vacant properties [12] Management's Comments on Operating Environment and Future Outlook - The office sector is facing headwinds from work-from-home trends and macroeconomic uncertainties [6] - The company anticipates a decrease in same property cash basis NOI by 10% to 12% compared to Q2 2024 due to tenant vacancies and increased free rent [14] - Management is closely monitoring government efficiency measures that may impact office space requirements [10] Other Important Information - The company sold three properties totaling 249,000 square feet for $26.9 million during the quarter [12] - Total liquidity is currently limited to $73 million in cash [9] - Upcoming debt principal payments of $280 million are due in 2026 [9] Q&A Session Summary Question: What are the expectations for future leasing activity? - Management noted that leasing demand is concentrated towards trophy assets, and new leasing interest has been minimal due to the age of the properties [7] Question: How is the company addressing its financial commitments? - The company is exploring all options to manage its financial commitments while operating and leasing properties [9] Question: What is the outlook for normalized FFO in Q2 2025? - The company expects normalized FFO to be between $0.09 and $0.11 per share for Q2 2025, driven by higher NOI from lower seasonal operating expenses [13]

Portfolio Overview - Paramount's portfolio consists of Class A office properties in New York and San Francisco, totaling 13.8 million square feet across 18 assets[11] - The portfolio is 94% exposed to Trophy and Class A office rental revenues with limited retail exposure[16] - Same Store Leased occupancy is 87.4% in New York and 82.3% in San Francisco as of March 31, 2025[11] Financial Highlights - The company's estimate of Cash NOI is approximately $299 million for the full year 2025[11] - The annualized rent is $90 per square foot[14] - Proforma Liquidity is $699.3 million, including $200 million revolver availability and $499.3 million Cash & Restr Cash[74] Lease Expirations - Portfolio lease expirations show 10.4% in 2025, 13.4% in 2026, 3.2% in 2027, 4.1% in 2028, 6.8% in 2029, and 62.1% thereafter[45] - The 5-Year Average lease expiration is 575 thousand square feet, or 8.0% per annum[45] - Debt maturity schedule shows $363.2 million debt maturing in 2025, representing 10.1% of total debt[81] Financial Performance (Three Months Ended March 31, 2025) - PGRE's share of NOI is $86.788 million[98] - PGRE's share of Cash NOI is $83.677 million[98] - PGRE's share of Same Store Cash NOI decreased by 4.1% to $84.121 million[101]

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q1 2025 was $0.36, down from $0.39 in Q1 2024, primarily due to increased net interest expense and lower rental income from property sales and lease expirations [23][24] - AFFO generated during Q1 2025 was approximately $23.5 million, consistent with previous quarters, while CapEx returned to normalized levels [24] Business Line Data and Key Metrics Changes - The company completed approximately 363,000 square feet of total leasing in Q1 2025, with about half related to new tenant leases [6][16] - Lease economics showed a 10.19% increase in rents on both cash and accrual bases for the quarter [17] Market Data and Key Metrics Changes - The occupier market recovery is ongoing, with national employers increasing in-office mandates, leading to a demand for more space [8] - National gross leasing volume slowed moderately in Q1 2025 after reaching post-pandemic highs in late 2024, with net absorption turning negative due to federal lease terminations [9] Company Strategy and Development Direction - The company has decided to suspend its dividend to fund long-term growth and retain earnings for capital expenditures related to tenant improvements and leasing commissions [12][13] - The focus remains on leasing and managing high-quality work environments, with a strong emphasis on capital deployment for leasing momentum [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding leasing prospects, with a strong pipeline of approximately 750,000 square feet executed or in legal stages [21] - The company anticipates achieving its year-end lease percentage guidance of 89% to 90% if the economic environment remains stable [22] Other Important Information - The company completed its refinancing activities, including paying off a $250 million term loan and extending a $600 million line of credit [8] - The backlog of annualized revenue from leases yet to commence increased from $46 million to $67 million [11] Q&A Session Summary Question: Inquiry about leasing pipeline and guidance maintenance - Management noted a strong leasing pipeline of approximately $750,000 square feet, with $275,000 executed in April, but maintained guidance due to macroeconomic uncertainties [29][30] Question: Clarification on the historical spread between lease percentage and economic lease percentage - Management indicated that the suspension of the dividend would provide additional cash flow for internal growth, with a focus on leasing momentum [35][36] Question: Discussion on the dividend suspension and its implications - Management explained that the decision was influenced by the need to fund leasing momentum and maintain investment-grade credit ratings, with retained earnings earmarked for leasing capital [39][40][46]