Good day, ladies and gentlemen, and welcome to the Piedmont Office Realty Trust, First Quarter 2022, Earnings Call. At this time, all participants have been placed on a listen-only mode. The floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Eddie Guilbert. Sir, the floor is yours.

Thank you, Operator. And good morning everyone. We appreciate you joining us today for Piedmont's First Quarter 2022 earnings conference call. Last night we filed our Form-10-Q and an 8-K that includes our earnings release and our unaudited supplemental information for the First Quarter is available for your review on our website at piedmontreit.com under the Investor Relations section, during this call, you'll hear from senior officers at Piedmont their prepared remarks followed by answers to your questions will contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements address matters which are subject to risks and uncertainties, and therefore, actual results may differ from those we anticipate and discuss today. The risks and uncertainties for these forward-looking statements are discussed in our press release, as well as our SEC filings. We encourage everyone to review the more detailed discussion related to risks associated with forward-looking statements in our SEC filings. Examples of forward-looking statements include those related to Piedmont's future revenues and operating income dividends and financial guidance, future leasing and investment activity, and the impacts of this activity on the company's financial and operational results. You should not place any undue reliance on any of these forward-looking statements. And these statements speak as of the date they are made. Also on today's call, representatives of the company may refer to certain non-GAAP Financial measures such as FFO, core FFO, AFFO, and same-store NOI. The definitions and reconciliations of these non-GAAP measures are contained in the earnings release and in the supplemental financial information which we filed last night. At this time, our President and Chief Executive Officer, Brent Smith, will provide some opening comments. Brent.

All right. Good morning, everyone. And thank you again for joining us on today's call as we review our financial and operating results for the first quarter of 2022. In addition to Eddie, on the line with me this morning are George Wells, our Chief Operating Officer, Chris Coleman, our EVP of Investments, and Bobby Bowers, our Chief Financial Officer, as well as other members of the senior management team. We are extremely pleased with the strategic transactions closed during the first quarter and encouraged by the continued momentum we are witnessing across our markets, which led to the strong financial results. While some U.S. companies are taking longer than we anticipated to finalize their return to the workplace strategy, we continue to encourage investors to focus on new tenant leasing, as an indicator of the strength in the office sector, as opposed to individual building utilization levels, which can vary greatly by region and tenant size. And on that metric, I would note that Piedmont's new tenant leasing activity this past quarter was the most robust it has been in over three years and marked the third consecutive quarter we've exceeded pre -pandemic levels of new tenant leasing. This leasing volume was achieved irrespective of the fact that the first quarter of the year, historically, tends to have the lowest leasing activity due to winter weather. Furthermore, these leasing transactions continued to demonstrate the positive momentum we're experiencing across our portfolio, particularly in our redeveloped properties. I would reiterate Piedmont portfolio is long-dated and position for growth with the average in-place rent five to 10% below market, and approximately six years of weighted average these term remaining. At this time, I'm going to turn the call over to George Wells, our COO to review this quarter's leasing activity with you in greater detail. George.

Thanks, Brent. And good morning, everyone. Our operational teams delivered strong first quarter results on many fronts. And the leasing momentum is very encouraging, just as exciting as to see our tenants are increasingly communicated with their employees to return to the office. Our well amenitized and wellness focused portfolio is in an excellent position to support our customers occupancy goals. In fact, our space utilization rate varies by tenant and property and it is approaching pre -COVID levels at a few locations and in some markets, utilization is averaging above 50%. Our lowest utilization levels are in Minneapolis and Washington, DC which are at approximately the 30% level at the end of the first quarter. I'm very excited this year, our leasing results for the quarter we completed approximately 50 individual leases totaling 552,000 square feet with just under half of that activity related to new tenants’ leases. As Brent noted, these results reflect the third quarter in a row of exceeding pre - COVID new leasing tenant levels and specific to the first quarter of this year. These results include the largest amount of new tenant leasing that we have experienced in the last 14 quarters. Tenant leasing demand is validating a flight-to-quality bias in the marketplace and our strategy to aggregate modernized, well-located, classic properties that have an onsite and or walkable amenity base continues to drive our leasing success. These building factors, combined with a more robust service offering versus our peers for attributes such as ten engagements, health, wellness, and sustainability, continues to have a meaningful impact on tenant space absorption, driving a 30 basis points increase in our lease percentage this quarter alone. Perhaps the best example of this phenomenon occurred this quarter at our Atlanta Galleria Project. According to the Bureau of Labor…

Thanks, George. On the investments front, the team has been very busy and we remain highly optimistic about the deal flow we're seeing in our pipeline. Looking back over the past 18 to 24 months, the overwhelming majority of what we've seen marketed through the brokerage channels has been characterized by long , good credit, newly developed, and/or 100% leased assets. They're fully banked with little downside and they've traded at plus or minus 5% cash cap rates in 20% to 35% above replacement costs. As most of you know, this has not been the traditional opportunity set for Piedmont but if these types of opportunities allow us to continue to elevate the portfolio and further advance our Sunbelt expansion, we will consider these transactions if highly strategic in nature and accretive to earnings. To be clear, we're not abandoning our more traditional investment philosophy of buying well-located real estate in great markets at a basis which supports repositioning, redevelopment, and activation. We firmly believe in the flight-to-quality theme, and we think it's here to stay. But as George outlined at the Atlantic Galleria, 25 Burlington Mall Road in Boston, and through the momentum we're currently seeing in Orlando, following our redevelopment efforts there, quality is not solely defined by age. Well-placed capital can, in fact, reinvent and reinvigorate great real estate. And I will note, while the brokerage community plays an incredibly important role in our acquisition pipeline, we're not dependent on broadly marketed transactions as our only source of investment opportunities. We have made significant progress tightening our footprint and concentrating in particular nodes, which we believe provide outsized growth and opportunity in our portfolio. We know where we want to be. We know the assets we want to own, and our local teams know the owners of…

Thanks, Chris. While I'll discuss some of our financial highlights for the quarter, I encourage you to please review the entire earnings release and supplemental financial information which were filed last night for more complete details. Core FFO for the first quarter was $0.51 per diluted share. That's a 6% increase over the first quarter of 2021 and this increase is primarily due to accretive recycling activity since the first quarter of last year and rising role at rental rates. That's particularly at our most amenitized locations such as the Galleria and Glenridge Highlands in Atlanta, South Orange Avenue and CNL Center in Orlando, the Galleria and One Lincoln Park in Dallas, as well as Wayside Road and Burlington Mall Road in Boston. These are projects where we are now achieving net effective rents, higher than those pre -pandemic. AFFO generated during the first quarter was approximately $39 million well above our current $26 million quarterly dividend level. As we mentioned last quarter, our board has indicated that given our cash, NOI growth over the last few years, the fact that we're approaching the conclusion of the large construction restacking project for the State of New York at 60 Broad, as well as the time since our last dividend increase, the Board will be reviewing our dividend payout amount during the summer of this year. Also, George has indicated our completed new tenant leasing activity during the first quarter of 2022 was the best in several years. Second-generation rents during the first quarter improved 5% and 13% for cash and accrual basis rents respectively. On a same-store comparative basis, cash NOI increased a little over 5% and on an accrual basis, it increased approximately 2.5%. Turning to the balance sheet, our trailing 12-month net debt to core EBITDA ratio. As…

Thank you, George, Chris, and Bobby. Repeating the comments I made at the beginning of the call, I'm extremely pleased with the operating results achieved thus far in 2022 and I want to express my sincere appreciation to my colleagues working diligently everyday at Piedmont. We are excited about our leasing pipeline and the organic cash flow growth that can be generated and we're very encouraged with the accretive capital recycling opportunities we anticipate this year, both of which can accelerate and improve earnings growth of our portfolio. That said there will be challenges, particularly in the areas of construction and property management but our team is closering -- closely monitoring supply chain issues to minimize the impact on construction projects and tenant services and our finance team will be prudently managing our expenses and balance sheet during this inflationary environment. As I talked with other CEOs and business leaders around the country, many are sharing that as much of a struggle that was lead organization through the global pandemic, it is just as much of a struggle to lead our organization out of it, to be more efficient and more productive in this new hybrid environment. Although work style and schedules will be different than they were before COVID, there seems to be a significant agreement from executives on our long-term value for most organizations to offer their employees a modernized, easily accessible, amenitized office space, as part of the organizations hybrid work model. We've been saying that we believe we position ourselves to capture a significant amount of that evolving tenant demand in the post-pandemic world. What is admittedly gratifying to see it coming to fruition. Piedmont's strategy of offering a premier sustainability and wellness designated amenitized office experience at rental rates well below new construction is resonating…

Ladies and gentlemen, the floor is now open for questions. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. Your first question for today is coming from Dave Rodgers. Please announce, your affiliation, and then pose your question.

Baird. Hey, guys. This is Nick, on for Dave. First, I maybe you wanted to touch on some comments George made, especially on the leasing pipeline. I think last quarter Brent mentioned around 500,000 square feet of active negotiations, and then an additional 1 million square feet up that you're trading LOIs on. Just wanted to get an idea of like where that pipeline stands now. Just wanted to see if the strong leasing that we saw in first quarter is going to continue throughout the year, and then maybe break that pipeline down between new and renewal leasing.

Sure. Good morning, Nick. This is George. Thank you for the question. I will tell you momentum continues to be quite strong. I mean, just starting out for the things that happen before getting proposals in terms of tour activity, we had a record high number of tours in March that we haven't seen in the past 18 months. So aggregately, we're really happy with where the momentum is from a tour perspective. And diving into proposals, it's been pretty consistent, somewhere around 100 deals per quarter. I'd say $1.5 million to $2 million overall in overall transactions. And I would say about a little bit more than half of that is for new deal activity.

Great. And then maybe on the renewal side, you guys mentioned U.S. bank. How soon are you beginning discussions with some of these larger explorations on their spaces?

Hey, Dave, this is Brent. I'd say we start discussions if the government tenant usually about three years out before exploration. If it's a more traditional corporate tenant, it's usually somewhere around 18 months out. We try to prod them and depending on the situation these days though usually engaged around 12 to 9 months out, just depending on how they're thinking about their space and how they plan their work from home approach. But that's usually when we start to really heavily engage if you think about what's really sits before us. In terms of those bigger tenants right now, we've obviously shared a CVS was the more near-term. We got that one accomplished which was great, which really reduces the amount of '22 exposure. Everything else would be ended well into '23 and the most near of the term of those would be Ryan, as we've discussed in the last call. They have not started construction on that potential site that they've considered moving to. We do feel pretty good about our opportunity for at least a short-term renewal but would also remind the market. They've got about 80% of their people back into the space, they're utilizing it and that would equate to it just relative to market a high teens roll up on a cash basis. We feel pretty good about overall the positioning of that asset in the market, a very prominent signage but we do think we'll get something short-term with them there if they do decide to even go forward with the building that they have up in Frisco, the land that they're building on.

In regard to Cargill, that is further out. But we are in discussions with them. They are still working on their work from home strategy. I think that's still stands in that situation where I think it could go either way, but I think we're still cautiously optimistic. U.S. Bank, as we've talked about, we're a close relationship with U.S. Bank as they are one of our trusted advisors, particularly on the debt side, and I have a relationship with the management team there. We continue to work with them. And downtown, frankly, itself continues to recover, and there location out in the suburbs is critical to their operation. So we're engaged with them, and I'd say we feel pretty good about where things are headed, but it's still pretty early. And I think that's really the major ones for '23 as we think about what's on the horizon. And we feel pretty good about, again, where those stand.

Okay. That's very helpful. And then the last one maybe is on the investment sales side and maybe for Chris. Sounds like the exit from Houston is pretty eminent. I mean, you guys mentioned that you -- before you enter a new market, you would exit one of your current markets. I guess, maybe on the $1.5 billion of pipeline for acquisitions, is there any new Sunbelt markets involved in that or maybe some new submarkets?

Yes. Yes, it's a fair question, Nick, we have said for some time we've been evaluating new markets. Really in the major markets in the Sunbelt. We have said as you point out that we wouldn't add a dot without taking a dot off the map. We're certainly trying to further simplify our story, not complicate it. We do intend to be out of Houston sometime this year. It's hard to tell the timing probably circled third quarter, early fourth quarter. And also, we've been pretty clear on where we are heading in New York. So we think we could be in a position to plant a flag in a new market over the next 18 to 24 months. Really hard to put a timeline on it. We've been looking at it for two to three years and for the moment, relays are focused on Dallas and Atlanta, but also making sure we're engaged in some of these potential new markets.

Great, thanks, guys.

I think I'd add to that. This is Brent as we continue to evaluate, I think we really want to continue to go deeper into those submarkets. We already have a presence in particularly those we're seeing strong growth in leasing activity and we will look at a combination of core -- core plus value-add. And really what we're looking for though are great assets that are at main and maintenance. May need to be modernized but once that is complete, vacant, easily and effectively compete against new construction. And I think we continue to focus on those opportunities.

Your next question for today is coming from Michael Lewis. Michael, please announce your affiliation, then pose your question.

Thank you. I'm at Truist Securities. I appreciate all the investment update from Chris. I wanted to ask if maybe you could discuss this decision a little bit more. It sounds like you -- you're interested in some lower cap rate assets, and we estimate the implied cap rate on your shares are have an eight handle. So maybe just talk about capital allocation; how you got convinced that this is the best way to allocate capital. You framed it as not really a change in strategy, but it sounds a little bit like it's sort of is.

I wanted maybe feel like that's putting a little bit of words in our mouth, Michael, to say that we're going after lower cap rate assets. I think we've always said that we are looking for accretive acquisitions and I think if you look at what we have in the pipeline for dispositions, whether it'd be Cambridge, long-term lease Houston, potentially monetization in New York, maybe next year. Some of the other non-core but quality assets that we'll continue to prune that are mature, we feel like we can rotate that into accretive acquisitions. I don't think we feel like we're moving down the spectrum, but we're looking for quality in that regard. So I think when it comes to what we think we can buy, I think that's still -- we feel a very good opportunity to pick up assets that can compete with new construction. We can find leasing velocity or be able to create value in some manner for shareholders over time. If we look at our own stock, we have bought back our stock in the past and we still continue to use that same framework that when we trade at significant discounts to NAV, and we feel like it's the best use of capital, we will continue to do so. I would note that we don't have really any capital coming in indoor from a disposition standpoint and would not consider levering up to buy back shares at this point, but we do feel that some of these acquisition opportunities that are in the pipeline that are more value-add and core plus and continue to tighten the footprint and grow cash flow are going to create value for shareholders certainly, and that's where we're going to continue to look for. We'll continue to describe the market with the accretion story is for each transaction that goes forward, but we very much feel like we can maintain that story and continue to improve the quality of the portfolio.

Okay. Great. That's helpful. And then, on the leasing side, youhave addressed CVS. You talked about Ryan, Cargill, U.S. Bank, so I figured why not even go out further. I wanted to ask about Amazon in Dallas is a little less than three years out, but do you have any sense of whether they want new space, or if maybe there's potential for them to stay and expand in place? Any -- maybe it's too early. I don't know.

I wouldn't say it's too early. We are engaged in discussions with Amazon and their brokerage representatives. As you pointed out, that lease is still about three years out, so it is a little early. But as we think about our opportunity at Galleria Tower 4, if we were to think about new development, and also our relationship with Amazon, who continues to bring their workforce back to our existing assets, we feel very -- I guess, like we have a compelling opportunity for them to continue to grow in that location. And we'll continue to be engaged. I would say, with them intently on their opportunities at that location, to either stay in the existing buildings or move to a newer asset, if that's what they would prefer. Remember -- if you recall, they did sign an expansion shortly after we bought the asset, so we continue to stay very engaged with that team and their space needs.

And then lastly, for me, one for Bobby. The next maturity of the notes expiring in the summer of 2023, thought I'd ask the question given, what's happened with interest rates lately, how are you kind of thinking about that? I don't know if you have a sense of like what you'd be able to refi that at today. If the cost of capital has moved up materially or .

Well, I'll tell you you're asking the question that all others are watching is we're looking at interest rates very closely right now. You might have noticed in my comments I indicated we've adjusted our interest rates even on our short-term debt, up from a 100 basis point increase this year to 200 basis points of an increase taking place, but having an impact on us. But I'll tell you, we're currently running the models. We're committed to trying to do public debt offerings. You might know in the last two years, we've done two of them. And so we'll be evaluating that as we get closer and we determine what's happening with the interest rates.

Okay. Thank you.

Your next question for today is coming from Q - Anthony Paolone. Anthony, please announce your affiliation and pose your question.

Yes. Thank you. JPMorgan. My first question relates to U.S. Bancorp. I know when New York City and state leases were expiring, yes, we're pretty transparent about what mark-to-market and CapEx would look like for those. Can you give us any brackets around what the U.S. Bancorp situation may look like?

Sure, Tony, this is Brent. I think the first expiration there are two -- are two locations for U.S. Bank in Minneapolis was the first location that will come to expire should be I'd say a slight roll up in terms of capital. Those assets are in decent shape I would say so they will need a refresh of capital from the tenant side. Wouldn't say it's equivalent to a new deal, but it's probably a little bit more than a standard renewal, but it would expect we would have a significant amount of term to offset that capital so I think overall on a per square foot per year, it would be very favorable. And I think the downtown location is kind of early to say, is -- if leasing transactions downtown immediately have been limited, just given what's gone overall as the cities continue to recover in the CBD. But the good news is the major firms are starting to bring their employees back, including U.S. Bank, which I think starts to bolster things. I've talked to tell honestly what would be on a mark-to-market basis but if I had to peg it today, I'd probably say it was roughly flat, maybe slightly up, but it probably I'm being cautiously in that regard. And in terms of capital, that is a great asset. We put in a lot of money into the base buildings and build a beautiful tenant amenity and hub at the top of the building, beautiful 18 floor ceilings, et cetera. So it's really top of market in terms of the amenities set, and really don't need to put a ton of capital into the base buildings, but that tenant space itself is also in pretty good shape, but I would characterize it similar to the suburban location. It won't require as much capital as a new deal, probably more in line with a renewal or maybe just slightly above a standard renewal in that type because it is a high-quality tenant, which we would expect a long-term commitment in that regard again, again. So the per square foot component would be very favorable. And when I say long term, generally 10 to 15 years.

Okay. Great. That's really helpful. Thanks for all that color there. My second question is probably for Chris and going through some of the capital markets discussion. Given the change in rates and spreads moving, any parts of the market where you've seen liquidity change either for better or worse, either geographically or by product type?

Yes, it's a good question. As I mentioned in the prepared remarks, excluding the true core deals, I would say the market has been pretty paralyzed for last 18 to 24 months. So those new assets with long wall and great credit with one or two credits, wanted two tenants rather occupying the entire building until very, very recently, given the disruption that debt markets, those deals have traded it very, very high prices. I'd suggest certainly at pre - COVID levels and maybe even through it in some cases. Yeah, again, these are situations where the buyers aren't having underwrite through role or lease up and they are really just underwriting the credit in putting a cap rate on the income stream. There are a couple of transactions in our market that look and feel a lot like that where you've got a pristine credit, 13 --14 year firm lease that have been in the market and we're getting exceptional reception until very recently in a couple of those deals have because of the debt markets have been put on pause. So I do think it is certainly the environment has -- has put some buyers on alert and I think some of those trades have been put on pause as a result.

I would add to that Tony, it's Brent. If you think about just geographically, I would say certainly dense CBD assets that rely on mass transit is the primary mean to getting to the building may have impaired liquidity. I think we're fortunate in that there's very few of those in our portfolio. And the asset in 60 Broad overcomes that because you just have such great long-term, well, with good credit tenancy and that's why we feel pretty good about that. But clearly, I think there is an increased focus on the Sunbelt and some secondary cities. If you note, AFIRE just announced Atlanta was its number one city for the year in terms of foreign investment. And then as we noted in our prepared remark, CBRE noted Dallas was its number one market for investment. So I think you're going to continue to see increased liquidity in the Sunbelt and those more CBD locations, gateway markets, etc., probably have a little bit tougher time.

And Tony, one thing I'd just add. We do know anecdotally, brokers are extremely busy pitching assignments and our healthier markets and are advising sellers to go sooner rather than later, given the potentially further rising in rates.

Okay. Got it. And then, just last question. It's maybe a little bit for Bobby and everybody. The occupancy or I guess the commenced or use number was 839, I think at the end of the quarter. I'm trying to get a sense as to what you have embedded for that figure come the end of the year and just where you think that could go. Again, just given the leasing traction you've had and just fairly limited expirations this year and even next year if you take I guess U.S. Bancorp out of the mix, it's also a fairly modest year.

Tony, this is Bobby. Thanks for the question. I might note that we had probably 750,000 square feet of leases yet to commence or in abatement at the end of the year, and that number's climbed to, now, over a million as we've had more leasing success. So based upon the leasing, which we think looks very good right now, that number could potentially climb, Tony. But remember, that's good news. Currently, with a million square feet of leases yet to commence renovation, that's about $33 million revenue, probably translates into a 60% margin, which is about right for us, $20 million of additional NOI. So again, based on current estimates, I think that number will increase, but remember, that's good news in terms of revenues coming down the pipeline.

Right. Some of that million I think is already in the 839. It's just in abatement. And so it can add -- can 839 go to 85, 88? How much can that move?

Well, you’re just asking me estimates, but it could move a 100,000 to 200,000 square feet. And if you --

I'd say Tony, just from modeling standpoint, I'd recommend you keep it in walks about for now. So if we're projecting somewhere up to 88% lease by year end, then you had also certain grow that commenced percent by equal amount.

Okay. Got it. So keep that leased and commenced number that spread about the same. Okay. Thanks for the help.

Thanks, Tony, Operator.

Once again, if there are any questions or comments . Your next question for today is coming from Daniel Ismail. Please announce your affiliation, then pose your question.

Great. Thank you. Green Street so I'm just curious with construction costs rising and supply chain issues. Are you hearing of any issues on the tenant ends on building out there own space and any potential problems in terms of revenue recognition with respect to tenants not being able to build out their own space, in a decent amount of time.

Hey, Danny, this is George Wells. I mean, it's certainly -- I mean, that's all the news in terms of supply disruptions and potential components certain costs going up, but I would say that the impact to our overall portfolio has been modest at this point. It has affected a few commencement dates for some leases, but I wouldn't say it was dramatic. I would probably push it an extra month or two from some of the larger leases, but that's really been the extent of it. And even though costs have gone up, I would say it's not all all materials, and I think we've done a really good job at trying to find domestic suppliers. And for long LEED items, we're trying to go ahead and buy those products early. So those are some of the mitigating positions we've taken to have a modest impact or overall commencement dates into our balance sheet.

And to add to that, I don't think we see anything major from a revenue recognition standpoint. In that regard, Danny, and what we just see in terms of the commitment and construction pipeline. And I would add that one of the benefits we do see around redevelopment right now is just the fact that we are less impacted by the supply chain. We can easily and more affordably adjust and find other product, et cetera. So that has proven effective as we continue to see leasing momentum pick up again at those projects where we have refreshed the assets and the amenities and modernized it.

Great. And maybe as a refresher, does revenue recognitions starts when you hand the keys over to the tenants or when the tenant has substantially completed the space for its intended use?

Revenue recognition begins once despite substantially complete so you've got to have a certificate of occupancy and then you look at the lease when does it says it commences, but you've got to have the space completed first before you can have any revenue recognition.

Got it, appreciate it. Thanks, Bobby and then maybe just a last one for me. I'm just curious how you mentioned one tenant still trying to figure out their hybrid strategy. How does co-working play in the Piedmont portfolio these days and I'm curious if you guys have any appetite to expand or possibly even just contracts that segment to the portfolio?

Danny this is Brent. Yeah, I know. I think we've still kind of see the the overall strategy of co-working to be relevant for certain assets and certain locations. Again, it represents about 2% of our overall . So it's not significant amount and we had spread that counter-party risk across a number of operator s, whether it'd be rework or industries or IWG/Regus. But overall we feel very good about those locations where there specifically, where we put them into the building, their users really is amenity, right? And the flexibility for the tenancy. And that has proven to be very good. And the locations we have are all current and we're performing and we continue to option to see them at a higher utilization rate than the actual building itself. But I think that said though we're not looking to increase overall exposure to that sector, again, we put it into locations that makes sense. And then kind of evaluate from there. But I feel like we are pretty good and wouldn't look to increase it materially and we'll evaluate new assets as we bring them into the portfolio. But I think we recognize that you're being prudent with your exposure to that sector.

Got it. Thanks, everyone.

There are no further questions in queue. I would like to turn the floor over to Brent Smith for any closing comments.

Thank you. I want to appreciate everyone joining today and just remind everyone that we continue to see and be very positive about the momentum on the leasing front. With low expirations, we do feel like we're really positioned for absorption and got a great set of opportunities ahead of us for potential capital recycling. I'd encourage you -- those to have a chance to sit down with us at Nareit in June to please reach out to Eddie or Justin to arrange that meeting. And we do look forward to sharing more about what differentiates Piedmont, what's driving our strategy, our markets, and our operations. That's really helped us grew FFO 9 out of the last 10 years, and we look to continue that momentum. Thank you for joining us today.

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.