Financial Data and Key Metrics Changes - The company's earnings for Q1 2025 exceeded both street expectations and internal projections significantly, with strong performance in NOI and leasing results [6][7][12] - The company closed nearly $200 million worth of DPE investments in the past nine months and is negotiating a pipeline of over $1.2 billion in new debt investments [10][12] Business Line Data and Key Metrics Changes - The debt-related businesses are expected to account for increasing profits, with a focus on equity-like returns in credit investments [9][12] - The company acquired 500 Park and achieved 100% occupancy shortly after, with plans for an improvement program to increase rents [12][76] Market Data and Key Metrics Changes - The CNBS market for New York City office completed $6.9 billion year-to-date in 2025, a significant increase compared to previous years [32] - The company noted a fight for quality in the market, with New York City demonstrating resilience amid macroeconomic turbulence [31] Company Strategy and Development Direction - The company remains committed to securing high-quality development sites in Midtown, viewing the long-term viability of the market positively despite current uncertainties [49][50] - There is a focus on office-to-residential conversions, particularly in downtown areas, which are expected to tighten the market significantly [110] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the leasing pipeline, noting an increase in tenant inquiries and no significant slowdown observed [25][72] - The company is insulated from market fluctuations due to a well-structured balance sheet and hedged debt [40][41] Other Important Information - The Summit One Vanderbilt has become a leading experiential attraction in New York City, setting a ticket pre-sale record recently [14] - The company is actively pursuing opportunities in Paris, with plans for a new summit attraction expected to open in 2027 [124][125] Q&A Session Summary Question: Can you discuss the trends in pre-built spaces and their economic rent potential? - Management indicated that pre-builds are essential for competitiveness, especially for smaller tenants, and they have a competitive advantage in executing high-quality designs [19][20] Question: How do you assess the impact of market sell-offs on leasing activity? - Management noted that there has been no slowdown in their pipeline despite recent market disruptions, with an increase in tenant inquiries [25][22] Question: What are the trends in the overall debt financing markets? - Management expects turbulence in credit markets but believes New York City will remain resilient, with strong demand for tangible assets [31][32] Question: Can you provide updates on your leasing targets and occupancy rates? - Management remains confident in achieving their leasing targets, with a strong start in Q1 and positive sentiment from tenants needing space [70][72] Question: What is the status of the casino license process? - The process is moving forward, with expectations for local approval by September and a license award by year-end [56] Question: How are concessions and free rents trending? - Concessions have remained stable, with potential tightening in certain submarkets as face rents increase [65][66] Question: What is the outlook for the office-to-residential conversion opportunities? - Management sees a significant volume of conversion candidates and expects this trend to firm up the market over time [110] Question: Can you comment on the demand for TAMI tenants? - The majority of TAMI tenant activity is driven by relocations and growth, particularly from AI-related businesses [90] Question: What is the expected timeline for the Paris summit project? - The project is on track for possession in Q1 2026 and public opening by the end of Q1 2027 [124][125]