Peter Abramowitz

Peter Abramowitz asked about the expected pricing (NOI impact or cap rate) on asset sales, including those closed in Q4 2025 and subsequent to year-end, as well as the remaining $200 million to be closed in the next six months. He also inquired about concessions in major markets (Charlotte, Dallas, Nashville, Tampa) to bring tenants into occupancy, asking if they are generally stable, increasing, or declining.

Answer

Ted Klinck, CEO, stated that $270 million in sales (Q4 2025 and early 2026) had a blended cap rate of sub-8%, with a mix of assets and buyers, and he expects similar or slightly better cap rates for the remaining $200 million. Brian Leary, COO, reported that concessions are generally stabilized, with customers willing to commit to term for best-in-class space. He noted that Charlotte, Dallas, Nashville, and Tampa are very competitive, with prime Class A space effectively full in Charlotte, helping moderate concession pressure. He added that they are committed to occupancy but can move rates and moderate/reduce concessions.

Peter Abramowitz asked about the expected pricing and cap rates for asset sales, including those already closed in Q4 2025 and early 2026, as well as the planned $200 million in dispositions. He also inquired about the current state of concessions in major markets like Charlotte, Dallas, Nashville, and Tampa.

Answer

Ted Klinck, CEO, reported that $270 million in sales had a blended cap rate of sub-8%, with a diverse buyer pool, and expects similar or better cap rates for the remaining $200 million. Brian Leary, COO, stated that concessions are generally stabilized, with customers seeking best-in-class space and committing to longer terms. He highlighted competitive conditions in key BBDs, particularly in Charlotte where prime Class A space is scarce, helping to moderate concession pressure.

Peter Abramowitz from Jefferies questioned why the strong Q2 FFO beat didn't translate to a larger guidance increase and inquired about the current acquisition landscape, including target returns and market activity.

Answer

CFO Brendan Maiorana explained the FFO guidance was impacted by non-NOI headwinds like higher G&A and deferred interest income, which were more than offset by stronger underlying property performance. CEO Ted Klinck added that the acquisition market is improving, with the bid-ask spread narrowing and more high-quality assets becoming available as debt and equity capital markets reopen for office properties.

Peter Abramowitz questioned the rents and mark-to-market on the new Symphony Place lease, leasing activity at other key vacant properties, and the current state of transaction velocity in Sunbelt capital markets.

Answer

CEO Theodore Klinck reported that the rent on the new Symphony Place lease was 'essentially flat' with the prior lease and detailed strong prospect activity for other core vacancies. Regarding capital markets, he expressed optimism, citing that debt markets are opening up for office and significant equity is becoming more constructive on the sector, which should drive higher transaction volume.

Peter Abramowitz asked for details on the rent uplift from the Vanderbilt lease renewal, whether the quarter's strong leasing spreads signal growing pricing power, and which markets are showing renewed interest in build-to-suit projects.

Answer

COO Brian Leary and CFO Brendan Maiorana described the Vanderbilt renewal as a standard extension with normal escalators, not a major driver of spreads. Maiorana cautioned that while Q3 spreads were high, the long-term expectation remains flattish, as quarterly results are volatile. CEO Theodore Klinck added that it's too early to name specific markets for build-to-suit interest but that the inquiries themselves are an encouraging sign.

Peter Abramowitz asked about the cumulative NOI impact of recent capital recycling activities, specifically the sales of Sabre Springs and Sunset Media Center, and the acquisition of Nautilus, and how this is factored into 2026 guidance. He also inquired about Kilroy's capital allocation strategy, focusing on life science demand in San Diego and the Bay Area's supply dynamics, asking if Kilroy would invest in more Bay Area life science assets despite less favorable supply.

Answer

Angela Aman, CEO, and Eliott Trencher, EVP of CIO, explained that the implied cap rate on the sold pool was around 8%, with Nautilus and Maple Plaza acquired at mid-single-digit going-in returns, expected to reach high single digits upon stabilization, making the strategy net accretive long-term. Eliott emphasized the economic returns are even lower for sold assets due to above-market rents, short lease terms, and CapEx. Angela reiterated Nautilus was a unique opportunity in Torrey Pines due to its submarket dynamics and manageable leasing, and while KOP has strong momentum, Kilroy would be hesitant to buy additional vacancy in South San Francisco due to existing supply.

Peter Abramowitz asked about the status of the DirecTV lease expiring in 2026-2027 and the likelihood of renewal. He also sought details on potential operating property sales, including comparable trades and target asset characteristics.

Answer

EVP and Chief Leasing Officer Rob Paratte confirmed ongoing discussions with DirecTV. CEO Angela Aman added that renewal prospects have generally improved as return-to-office plans solidify. EVP and CIO Eliott Trencher explained that the disposition strategy is asset-specific, targeting properties where Kilroy's outlook differs from the market's and where strong pricing can be achieved, rather than exiting specific markets.

Peter Abramowitz asked for an update on leasing demand at Indeed Tower in Austin, both for the overall market and specifically for the remaining space in the building.

Answer

EVP, Chief Leasing Officer Rob Paratte reported that leasing activity at Indeed Tower remains consistent, with some deals close to signing. He characterized the available space as the last manageable block of high-quality space in the CBD. He noted that overall demand in Austin, particularly in the CBD, has picked up, and the company hopes to announce new leases soon.

Peter Abramowitz inquired about the deployment from the debt fund, asking for a sense of the underwriting returns on the initial investments.

Answer

Marc Holliday, Chairman and CEO, SL Green Realty Corp, stated that the fund targets gross returns in the mid-teens. Harrison Sitomer, Chief Investment Officer, SL Green Realty Corp, confirmed that what they've seen so far is consistent with what was discussed at the Investor Day, with a focus on subordinate credit opportunities.

Peter Abramowitz sought confirmation on whether the maintenance costs incurred at Summit in the fourth quarter were one-time expenses related to Ascent and if there was any change to the 2026 outlook for Summit. He also asked for an indication of the underwriting returns on the initial investments being pursued out of the debt fund.

Answer

Matt J. DiLiberto, CFO, confirmed there was 'no change in the 2026 outlook unique to the fourth quarter' for Summit. Marc Holliday, Chairman and CEO, SL Green Realty Corp, stated that the debt fund targets gross returns in the mid-teens, with Harrison Sitomer, Chief Investment Officer, confirming consistency with this target, primarily focused on subordinate credit opportunities.

Peter Abramowitz of Jefferies asked about the remaining incremental demand from the return-to-office trend and inquired about concession trends for Class A and A-minus assets.

Answer

EVP Steven Durels noted that while hard to quantify, demand trends are positive across all industries, especially tech. Chairman & CEO Marc Holliday pointed to the company's supplemental data, which showed Q2 free rent and TI allowances were at their lowest levels in over a year, suggesting concessions are tightening within the SLG portfolio.

Peter Abramowitz asked about the upcoming debt expiration for 11 Madison Avenue, inquiring about comparable refinancing deals and whether the company was considering the CMBS market.

Answer

Executive Harrison Sitomer stated that since it is an active negotiation, he preferred not to comment in detail. He expressed confidence in the team's ability to secure efficient financing, referencing their recent experience, and said an update would be provided on the next earnings call.

Peter Abramowitz of Jefferies asked for an update on the tech sector's appetite for office space in the market. He also inquired about the strategy for 5 Times Square, particularly regarding reports of a potential residential conversion.

Answer

Executive Steven Durels noted that the tech sector's presence is increasing, with active searches growing from 3 million to over 6 million sq. ft. in the past year, driven by AI initiatives, organic growth, and return-to-office mandates. Regarding 5 Times Square, Executive Harrison Sitomer confirmed it is an ASP (Alternative Strategy Portfolio) asset and stated that the company is working with its lenders and partners, promising to share more details at an appropriate time.

Peter Abramowitz posed a philosophical question on how management plans to get the market comfortable with the company's complexity as it transitions to a diversified holding company, and also asked about leasing demand for the newly acquired Woodlands office asset.

Answer

Executive Chairman William Ackman acknowledged the complexity and stated the strategy is to embrace it by transforming into a diversified holding company, which he believes will attract a broader investor base than a pure-play developer. He highlighted Pershing Square's long-term view and investment acumen as key advantages. CEO David O'Reilly addressed the leasing question, expressing high confidence in leasing the newly acquired 7 Waterway building due to its prime location and the lack of other available space in the submarket.

Peter Abramowitz of Jefferies asked for more detail on the decision to convert 10900 Wilshire to residential, questioning whether it was driven by market conditions or simply a better risk-adjusted return.

Answer

CEO Jordan Kaplan detailed a confluence of factors making the conversion attractive: upcoming large tenant vacancies, synergies with an adjacent residential project, a forced entrance relocation due to a new subway stop, and floor plates that are highly suitable for residential layouts. He noted these unique circumstances made it a cost-effective and logical decision.

Peter Abramowitz sought more detail on the successful leasing at Studio Plaza, asking about demand, signed leases, and the timeline to stabilization. He also inquired about current demand from tenants in the entertainment industry.

Answer

President and CEO Jordan Kaplan confirmed that leasing demand, signed volume, and the pace to stabilization at Studio Plaza have all surpassed expectations. Stuart McElhinney added that the building's remodel will complete later in the year. On entertainment demand, Kaplan noted their exposure is limited, primarily to industry vendors, and thus couldn't comment on broader trends.

Peter Abramowitz of Jefferies asked for an update on leasing trends within the entertainment industry, given recent challenges. He also inquired about the renewal status of approximately 120,000 square feet of leases with UCLA expiring next year.

Answer

Executive Stuart McElhinney noted that leasing from the entertainment industry was at a 'typical pace' in Q3 and has normalized recently after a slower period. Regarding UCLA, he explained that their 120,000 sq. ft. is spread across many small leases and they act like multiple small tenants, not one large one. Therefore, there is no single chunky expiration and no prediction yet on how those individual leases will be handled.

Peter Abramowitz of Jefferies Financial Group Inc. asked for clarification on the project management growth outlook for the second half of the year and inquired about which U.S. office markets experienced lower transaction volumes.

Answer

CEO Christian Ulbrich clarified that after 22% growth in Q2, the project management business is expected to see a 'normalizing' but still healthy growth rate, not a slowdown due to new headwinds. CFO Kelly Howe specified that larger U.S. gateway markets posted lower office leasing volumes in the quarter, which impacted JLL's results due to its heavier weighting in those markets.

Peter Abramowitz asked about underwriting long-term political risk from tariff policies and the impact of macro uncertainty on the real estate outsourcing business.

Answer

Christian Ulbrich, President & CEO, explained that while increased uncertainty reduces visibility, JLL must adapt, noting the business correlates with GDP growth. Regarding outsourcing, he stated that uncertainty can both drive demand for cost-cutting and cause short-term decision-making delays, creating a mixed but currently stable outlook.

Peter Abramowitz sought clarification on the 'high single digits' pipeline growth for investment sales, asking if it was a proxy for Q4 revenue growth. He also asked about the sustainability of office leasing demand and the outlook for industrial leasing.

Answer

Global CEO Christian Ulbrich clarified that the pipeline growth figure is not a direct proxy for Q4 revenue but reflects a positive outlook. CFO Karen Brennan stated that while initial pent-up office demand has been met, leading indicators are steady. For industrial, she noted a slowdown from a high base, with activity now in line with pre-pandemic averages and a favorable long-term outlook.

Peter Abramowitz of Jefferies asked for a realistic stabilized occupancy target and timeline for the Bay Area portfolio, given its lag, and inquired about specific tour activity trends in the Los Angeles market.

Answer

Chairman & CEO Victor Coleman and EVP of Leasing Arthur Suazo explained that while North San Jose has been a drag, activity there is now exceptional with larger deals emerging. They feel bullish about the lease-up pace over the next 18 months. Suazo added that while their LA asset is 96% leased, the broader West LA market remains robust with demand up 20% year-over-year.

Peter Abramowitz, on behalf of Katie Elders, asked for a definition of 'coverage' regarding lease expirations and the historical success rate of converting that coverage into signed leases. He also sought to confirm if the change in the same-store NOI guidance was solely due to the Foothill Research Center sale.

Answer

EVP of Leasing Arthur Suazo defined coverage as deals in proposals, LOIs, and leases, and stated their historical conversion rate from negotiation to signed lease is approximately 70-75%. CFO Harout Diramerian confirmed that the removal of Foothill Research Center from the pool was the primary driver of the updated same-store NOI guidance.

Peter Abramowitz from Jefferies questioned the office leasing outlook, asking about tough comparisons in the second half of the year and whether the leasing recovery is broadening beyond top-tier trophy assets.

Answer

CEO Michelle MacKay confirmed the office recovery is broadening both geographically to non-gateway markets and by asset quality, moving from 'AAA class A space to what you might consider A-minus space.' CFO Neil Johnston acknowledged a tough Q3 comp but stated that current momentum and strong July results support the full-year guidance.

Peter Abramowitz from Jefferies questioned the outlook for industrial leasing amid potential trade conflicts and asked if there is a specific interest rate level that would negatively impact the capital markets business.

Answer

CEO Michelle MacKay affirmed that underlying demand for industrial space remains strong despite trade discussions, with the company continuing to see positive trends. Regarding interest rates, she explained that the focus is on all-in borrowing costs, not a single benchmark, and noted that many clients can and do use all-cash for transactions, keeping the capital markets pipeline robust.

Peter Abramowitz asked if there was a thematic reason for project management delays and sought to clarify if the 'waterfall' recovery in Capital Markets implies accelerating growth in 2025.

Answer

CFO Neil Johnston stated the project management delays were not thematic but a function of a subdued market, particularly in office. CEO Michelle MacKay clarified that their 'waterfall' view aligns with a gradual, long-term recovery, with their base case assuming slow, steady interest rate cuts through 2025, fostering a more normalized environment over the next year.

Peter Abramowitz asked about the cause of the occupancy dip in Tampa, whether capital recycling could fund entry into new markets, and the current demand trends from Big Tech tenants in Austin.

Answer

EVP of Operations Richard Hickson explained the Tampa occupancy dip was due to a routine 25,000 sq. ft. expiration. President and CEO Colin Connolly stated the current priority is expanding in existing markets like Dallas and Charlotte over entering new ones. Hickson noted that tech demand in Austin is showing tangible signs of improvement and re-emerging growth needs.

Peter Abramowitz requested an update on leasing requirements within the Charlotte portfolio and asked about specific progress on the Fifth Third Center redevelopment project.

Answer

EVP of Operations Richard Hickson expressed confidence in Charlotte's market fundamentals, highlighting a lack of new development. He stated that Cousins' redeveloped assets, including Fifth Third Center, are well-positioned to capture demand. While nothing specific was announced, he confirmed very good tour activity and interest in the Uptown properties.

Peter Abramowitz of Jefferies Financial Group inquired about the level of interest in build-to-suit projects and asked for a philosophical take on the dislocation between public and private real estate markets and the potential for their convergence.

Answer

President and CEO Michael Connolly confirmed that build-to-suit conversations are increasing, though near-term investments are more likely to be acquisitions. He opined that public and private markets will eventually converge, but it will take time as private capital players must first work through legacy portfolio issues, giving public REITs like Cousins a current advantage.

Peter Abramowitz of Jefferies asked about the economics of the identified 1031 acquisition opportunities, specifically the expected going-in cap rates. He also inquired about the share repurchase program and how the company weighs its attractiveness against acquisitions.

Answer

Chairman & CEO Gary Shiffman indicated that going-in cap rates for high-quality MH communities are in the 4-5% range, with a strong focus on subsequent growth potential. EVP & CFO Fernando Castro-Caratini described the share buyback as one of several capital allocation tools, considered alongside strategic reinvestment and acquisitions, without providing specific return hurdles or price targets.

Peter Abramowitz from Jefferies asked about the current state of the financing market for manufactured housing and RV assets, particularly regarding spreads.

Answer

Executive Fernando Castro-Caratini described the financing market as 'very strong,' noting that Fannie Mae and Freddie Mac continue to actively finance the sector without any slowdown. Executive Gary Shiffman added that life insurance companies also remain active lenders, recognizing the stable cash flows and resilient fundamentals of the asset class.

Peter Abramowitz from Jefferies asked for a comparison of tenant demand at the Embarcadero Center versus assets in the South of Mission (SoMa) area of San Francisco, especially regarding the AI-driven recovery.

Answer

Douglas Linde, President & Director, confirmed the SoMa market is improving with an AI-related resurgence. Rodney Diehl, EVP of West Coast Regions, elaborated that Embarcadero demand remains strong from traditional financial services firms, while SoMa assets like 680 Folsom are seeing significant interest from AI companies.

Peter Abramowitz of Jefferies asked about the future of 125 Broadway, given Biogen's planned departure, inquiring about repositioning needs and the asset's lab-versus-office space composition.

Answer

President Douglas Linde confirmed 125 Broadway is a 'true lab building' with predominantly lab infrastructure. He anticipates some system upgrades will be necessary upon vacancy but expects it will remain a life science asset. Executive Bryan Koop added that while they assume Biogen is leaving, the tenant is still assessing its own needs, but BXP is highly confident in the building's value as a lab product due to its prime location.

Peter Abramowitz asked management to reconcile CEO survey data suggesting a full 5-day return-to-office with the on-the-ground reality and tenant conversations.

Answer

President Douglas Linde contextualized that a 'full return' never meant 100% daily utilization; pre-pandemic 'nirvana' was 80%, a level NYC is now approaching. Chairman & CEO Owen Thomas added that while CEOs have been reluctant to mandate returns for competitive reasons, actions by industry leaders like Amazon and Salesforce provide cover for others to follow suit, driving a slow but steady dissipation of the issue.

Peter Abramowitz of Jefferies followed up on the potential Space Command relocation to Huntsville, asking about the possible timing and scale of development leasing. He also requested more detail on the drivers of expense savings during the quarter.

Answer

President & CEO Stephen Budorick could not provide specifics on Space Command's needs but confirmed CDP is ready with immediate space and scalable development solutions up to and beyond 450,000 square feet. EVP & CFO Anthony Mifsud explained that quarterly expense savings were driven by lower utility costs and the timing of certain repair and maintenance projects, which will shift to Q3.

Peter Abramowitz inquired about the expected time to backfill a recent nonrenewal at Columbia Gateway and asked about the leasing pipeline for the 'Other' portfolio and its impact on capital recycling plans.

Answer

EVP and COO Britt Snider stated a conservative 18-month to 2-year backfill timeline, though prospect activity is already strong. President and CEO Stephen E. Budorick added that the vacancy presents a strategic opportunity to add more defense tenants. Regarding the 'Other' portfolio, Snider noted a strong pipeline due to a flight-to-quality, while Budorick clarified that any asset sales are contingent on a more favorable interest rate environment for potential buyers, likely a year or two away.

Peter Abramowitz noted the strong leasing spreads, particularly in the Fort Meade/BW Corridor, and asked if this was indicative of future pricing power. He also asked for COPT's view on stabilized cap rates for its core defense assets, referencing recent acquisitions by a competitor.

Answer

President and CEO Stephen E. Budorick confirmed that the strong leasing spreads in the Fort Meade/BW Corridor are indicative of future pricing power, given the extremely limited vacancy in that submarket. Regarding competitor acquisitions, he distinguished COPT's assets, stating that the mission and use are the highest priority in their investment decisions and that he did not consider the competitor's recently acquired assets to be comparable to COPT's portfolio.

Peter Abramowitz of Jefferies Financial Group Inc. asked what it would take for capital markets activity to return to prior peak levels and requested quantification of CBRE's exposure to the New York City market.

Answer

President, CEO, and Chairman Robert Sulentic cited factors like lower interest rates and a more stable European economy as potential drivers for a return to peak activity, but noted there is no single catalyst. He estimated that New York City contributes approximately 5% to 6% of the company's total earnings.

Peter Abramowitz sought clarification on the 5% interest rate threshold for capital markets activity, asked about recent transaction momentum, and questioned how the company discounts long-term political risk from tariffs.

Answer

CFO Emma Giamartino clarified that both rate stability and levels below 5% are key for capital markets, especially for loan originations, and confirmed that sales activity picked back up in April after a slight slowdown in March. CEO Robert Sulentic stated that CBRE does not have unique insight into political risk and has already factored significant uncertainty and a higher risk of recession into its current outlook.

Peter Abramowitz inquired about industrial leasing trends compared to the strong performance in office leasing and asked how a persistently high long-term yield curve might affect the capital markets recovery.

Answer

Chair and CEO Bob Sulentic noted that industrial leasing is trending up but at a slower pace than office, as large users absorb existing space. CFO Emma Giamartino addressed the rate question by stating that the Q4 guidance, which includes 30% growth in investment sales, already reflects high confidence based on a record number of rate locks in prior months, suggesting limited volatility through year-end.

Peter Abramowitz inquired about the expected downtime for the known lease expirations in 2026 and asked if the higher-than-underwritten yields achieved in Torrey Pines were project-specific or indicative of a broader market trend.

Answer

Marc Binda, CFO & Treasurer, explained that downtime for 2026 expirations is difficult to predict as it depends on capital needs and re-leasing strategy, particularly for a large project in Greater Stanford. Peter Moglia, CEO & CIO, stated the strong Torrey Pines yields were specific to that project's high quality but also demonstrated that tenants are willing to pay a premium for top-tier assets.

Peter Abramowitz of Jefferies asked about internal expectations for when portfolio occupancy might bottom out and what catalysts would be needed to see an inflection.

Answer

CFO Marc Binda noted that Q1 had a disproportionately large amount of known move-outs, and re-leasing these large spaces will take time, likely into 2026. Executive Chairman Joel Marcus added a potential positive catalyst: increasing demand from non-lab tenants, such as AI companies, for some of their available spaces, which could accelerate absorption unexpectedly.

Peter Abramowitz inquired about the status of sublease space in Boston and the Bay Area and asked how the length of time to complete lease negotiations has changed.

Answer

Executive Peter M. Moglia confirmed that the sublease market has stabilized, with high-quality space being absorbed quickly. He also noted that leasing cycles have become significantly longer as tenant boards now require more extensive diligence and scrutiny before committing to new space.

Peter Abramowitz of Jefferies asked for the size and composition of Easterly's opportunity pipeline and questioned the company's balance sheet strategy, including recent debt pricing and long-term leverage targets.

Answer

CEO Darrell Crate confirmed the pipeline is approximately $1.5 billion and outlined a long-term goal for 15% of the portfolio to be state/local and 15% government-adjacent. CFO Allison Marino noted that recent debt market spreads have widened, validating their timely execution. She reaffirmed the 6.5x-7.5x leverage target, stating that despite an unfavorable cost of equity, the company can still fund accretive deals creatively.

Peter Abramowitz of Jefferies asked for a breakdown of the company's cost of capital, specifically debt versus equity, and how it relates to targeted acquisition spreads. He also inquired about the composition of the $1.5 billion investment pipeline and the potential risk to the Aurora asset from a possible relocation of Space Force operations.

Answer

CFO Allison Marino stated that the overall cost of capital is in the low 7s, with new unsecured debt in the low 6s, and acquisitions are typically funded 50/50 with debt and equity. CEO Darrell Crate confirmed they are seeing acquisition opportunities in the high 7s and 8s. He also clarified that the $1.5 billion pipeline consists of smaller deals, not large portfolios, and that the company has assessed the risk related to the Buckley base and determined it is not an issue, while also exploring opportunities in Alabama.

Peter Abramowitz asked about potential inflationary pressures on operating expenses, such as payroll, and whether cost inflation could affect the pace or yield of site additions and conversions.

Answer

Paul Seavey, an executive, responded that while they monitor expenses closely and expect growth slightly above CPI, they do not currently see signs of acceleration. Marguerite Nader, an executive, acknowledged that development returns have compressed due to past cost pressures but stated they remain on track with development plans and do not anticipate significant changes.

Peter Abramowitz asked for clarification on the accounting for the noncash charge related to the convertible debt's embedded derivative, the potential impact of the high interest rate environment on the 2025 sales market, and the company's specific ROI targets for new investments.

Answer

CFO J. Kirkland explained the $20.2 million noncash derivative charge was an accounting requirement triggered by a 71% increase in the company's stock price. Regarding interest rates, Kirkland noted Douglas Elliman's resilience due to a high percentage of cash buyers. CEO Michael Liebowitz added that he anticipates a new presidential administration will favor lower rates and deregulation, spurring activity. On ROI, Liebowitz stated that specific hurdles are still being defined but emphasized a disciplined strategy focused on quality over quantity for agents and diversifying revenue through ancillary businesses.

Peter Abramowitz of Jefferies inquired about the accounting for the convertible debt's embedded derivative charge, the impact of the current interest rate environment on the 2025 sales market, and the specific ROI hurdles for new investments.

Answer

CFO J. Kirkland clarified the $20.2 million derivative charge was a noncash item driven by a 71% stock price increase, as required by accounting standards. Kirkland also noted the company's resilience to rate changes due to a high percentage of cash buyers. CEO Michael Liebowitz added a bullish outlook for 2025, citing post-election certainty and a pro-growth environment. Regarding ROI, Liebowitz explained that while specific targets are still being defined, the new strategy prioritizes disciplined, quality growth and enhancing value for existing top agents over simple headcount expansion.

Peter Abramowitz of Jefferies asked about current spreads in the private placement market, the target cost of debt for a new issuance, key drivers for organic growth in 2025, and the state of the financing market for monetizing office assets.

Answer

CFO Matthew Barnes indicated the 10-year private placement debt cost was recently around 6.5%, with a target closer to 6%. For 2025 growth, Barnes pointed to leasing at The Interlock and inorganic growth from Allied Apartments and Southern Post. President and COO Shawn Tibbetts added that while sentiment for office asset sales is improving, the market is still in its early stages, and the company's focus remains on transitioning to higher-quality unsecured debt.