Dylan Brzezinski

Dylan Bruzinski asked about the company's perspective on the disconnect between its current stock trading price and the underlying private market value of its portfolio, referencing a report about 250 West being on the market.

Answer

President Christina Chiu acknowledged the stock's discount to private market values, a common issue in the office sector. She stated that ESRT focuses on controllable factors, including capital recycling from suburban assets into value-additive NYC properties. Regarding 250 West, she confirmed it's on the market, having added value, and the company is open to either owning it or selling it to pursue new opportunities, given strong interest in NYC transactions.

Dylan Brzezinski asked if Highwoods Properties is nearing the completion of its non-core asset disposition program and whether share repurchases are being considered as a capital allocation strategy given the recent stock performance. He also inquired about the required yield for new development opportunities.

Answer

Ted Klinck, CEO, confirmed ongoing capital recycling, including Pittsburgh and other older assets, emphasizing a consistent leverage-neutral approach. He noted that share repurchases are a quarterly board discussion but no deviation from standard operating procedure is planned. For developments, a premium over acquisition cap rates is required, but specific yields are not disclosed due to competitive reasons.