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CEO, President & Director Michael Weil expressed confidence in the auto manufacturing assets, noting they are critical facilities for US manufacturers and that key tenant McLaren is financially stronger than ever. He confirmed seeing increased buyer interest for their single-tenant office assets. Weil stated the current disposition pipeline is approximately $200 million for 2025, with proceeds potentially funding both debt reduction and share buybacks.

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CEO Michael Weil responded that the company is comfortable with its auto manufacturing assets, describing them as critical facilities for US manufacturers and highlighting the improved financial strength of its tenant McLaren. He confirmed seeing increased buyer interest for their office assets, driven by strong tenants and lease terms. Regarding future dispositions, Weil stated the active pipeline is approximately $200 million and that proceeds from non-core asset sales provide a valuable funding source for both stock buybacks and deleveraging.

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CEO Michael Weil addressed the auto manufacturing exposure by highlighting the critical nature of the assets and the strong financial health of key tenants like McLaren, which recently strengthened its balance sheet. He confirmed seeing increased interest from private capital for their office assets, which he attributed to the quality of the tenants and lease terms. Weil stated that the current disposition pipeline for 2025 is approximately $200 million, with proceeds funding both share buybacks and debt reduction.

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CEO Michael Weil addressed the auto sector exposure by highlighting the critical nature of the assets and the financial strength of key tenants like McLaren, which was recently recapitalized. He confirmed seeing increased private capital interest in their office assets, which he attributed to strong tenancy and lease terms. Weil stated the current disposition pipeline for 2025 is approximately $200 million, with proceeds being a funding source for both debt reduction and share buybacks.

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CEO Edward Weil prioritized leverage reduction and opportunistic share buybacks, stating the current market is not attractive for acquisitions. He noted that achieving an investment-grade rating is a key mid-term goal tied to deleveraging but declined to give a specific timeline. Future dispositions will focus on retail and select office assets to optimize the portfolio for long-term growth in industrial and single-tenant retail.

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Chief Financial Officer Christopher Masterson explained that the price was satisfactory, emphasizing that the buyer's ability to execute on a large, complex deal was a key factor. He expressed high confidence in closing, citing a $25 million nonrefundable deposit. Masterson described the dividend reduction as a prudent and appropriate reset given the sale of nearly $3 billion in assets, which creates about $80 million in recurring free cash flow and aligns with the company's new scale and focus.

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CEO Michael Weil stated that WALT is being managed through organic leasing and renewals, with deleveraging taking priority over acquisitions. He explained the wide AFFO guidance provides flexibility to accelerate dispositions. Regarding 2025 maturities, he expressed confidence in their refinancing ability and noted the balance has already been reduced, but declined to link specific pipeline assets to future debt paydown.

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CEO Sumit Roy suggested that falling U.S. interest rates could lower the company's public cost of equity, making more domestic deals accretive and potentially shifting the investment focus back to the U.S. He also reiterated that total disposition volume for the year is expected to be similar to the prior year's level.

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CEO Sumit Roy confirmed they are having discussions about larger deals but noted the current $4 billion guidance is based on regular flow business. Regarding Zips, he clarified that 100% of assets were affirmed, with a rent reduction to 94.3% of the prior level negotiated in exchange for a longer lease term and higher annual escalators.

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CEO Sumit Roy attributed Q4 cap rate compression to improved market sentiment and a more favorable cost of capital, which increased transaction activity. CFO Jonathan Pong and CEO Sumit Roy explained that reaching the high end of guidance would depend on lower-than-guided credit losses, a stable interest rate environment to support acquisition volume, and efficient dispositions of vacant assets.

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CEO Sumit Roy acknowledged the market volatility driven by exogenous factors and inflation expectations, which impacts the long end of the curve and the company's cost of capital. On the timing of the fund, Roy explained it is a strategic, long-term initiative to build a complementary capital source for the future. He compared it to Prologis's successful 20-year journey, stating the goal is to start now from a position of strength to prepare for potential capital constraints a decade from now.

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VP of IR Stuart McElhinney confirmed more tenants are expected to move into Studio Plaza this year. CEO Jordan Kaplan explained the Landmark Residences cost estimate increased from over $300M to approximately $400M because they now have signed contracts, providing more cost certainty. He affirmed the project's yield remains in 'good shape'.

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President and CEO Jordan Kaplan said that while a post-fire capital influx should boost office demand, he has only seen anecdotal evidence so far. Regarding the JV, Kaplan explained the consolidation was not a strategic choice but a requirement under accounting rules triggered by a new, extended agreement with their partners. CFO Peter Seymour noted this had a minor negative impact on interest expense.

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President and CEO Jordan Kaplan declined to discuss details of financing negotiations that are in process, stating the company announces deals only after they are closed. Regarding 10900 Wilshire, he noted they are familiar with the tenants but would not comment on individual lease discussions, reiterating that they are still deciding on the strategic path for the asset.

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President and CEO Jordan Kaplan stated that the multifamily portfolio has always been a strong performer with a high long-term growth rate, so its continued strength is not surprising. Regarding conversions, he explained that the economics are very difficult in their strong office markets, requiring a rare mix of high residential rates and low office values. While it worked in Hawaii, he believes such opportunities will be rare in their core Los Angeles markets.

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EVP and CFO Gregg Adzema reported that credit markets have improved, with their recent bond trading approximately 20 basis points tighter, suggesting a lower coupon could be achieved today. President and CEO Colin Connolly added that with the long-anticipated BofA move-out complete, portfolio occupancy is expected to trough in Q3 and then grow, supported by a favorable future lease expiration schedule.

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EVP of Operations Richard Hickson explained that the ongoing discussions with Time Warner are focused on working through the tenant's long-term space needs. He and CEO Michael Connolly confirmed that Cousins' exposure to GSA leases is de minimis, with only two small leases, and is not expected to have any material impact on their portfolio.

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President and CEO Michael Connolly affirmed that 90% occupancy is an achievable goal, expecting a recovery to begin in late 2025 after a temporary trough from the Bank of America move-out. He explained the IBM lease was a creative solution where Cousins facilitated IBM's move into underutilized space from Meta after IBM's planned new development failed to secure financing, creating a 'win-win-win' outcome.

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President and CEO Joey Agree explained that the company has thoroughly analyzed the impact of tariffs and estimates they represent only about 1.5% of total project costs, which is well within their standard 7-10% project contingency. He expressed confidence that they can manage these costs through sourcing adjustments and are not concerned about a material impact on their development spreads.

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CEO Joey Agree reiterated the medium-term target of investing $250 million per year in development and confirmed they are on track with a 'very large' pipeline and shadow pipeline. He noted both the development and developer funding platforms are benefiting from market conditions. However, he clarified that the commercial paper program, while providing cheaper short-term capital than the revolver, does not impact their investment calculus or weighted average cost of capital, and thus does not change their investment capacity.

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CEO Joey Agree reiterated the company's medium-term target of investing $250 million annually in development and confirmed the current pipeline is 'very large.' He clarified that the commercial paper program is a tool for managing short-term borrowing needs more cost-effectively than the revolver and does not change their investment calculus or weighted average cost of capital.

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CFO Peter Coughenour clarified that 2025 guidance includes a 50 basis point assumption for credit loss, which covers a worst-case Big Lots scenario. CEO Joey Agree added that dispositions are not a necessary source of capital this year and will be focused on non-core assets or opportunistic sales.

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CFO Peter Coughenour clarified that 2025 guidance includes 50 basis points of credit loss, which covers a worst-case scenario for Big Lots and other potential issues, compared to ~35 basis points realized in 2024. CEO Joey Agree added that dispositions are not a necessary source of capital this year and will be focused on non-core assets or opportunistic sales.

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CEO Greg Silvers and CIO Greg Zimmerman responded that opportunities for larger deals exist across all their verticals, with acquisition cap rates comfortably in the eights. Regarding fuel costs, Greg Silvers noted that while any increase in consumers' discretionary income is positive, the company has not observed a direct correlation in spending, emphasizing that consumers continue to prioritize experiences.

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CEO Gregory Silvers attributed the box office strength to a normalized quantity of film titles, which encourages a consumer habit of movie-going—a trend he expects to continue. Regarding capital allocation, Silvers described it as an 'art, not a science' that often ends up near 50/50 between development and acquisitions. CIO Gregory Zimmerman added the important clarification that most of EPR's mortgage investments are structured with a path to ownership, rather than being short-term loans.

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CEO Gregory Silvers explained that while business interruption insurance exists, the lender controls the proceeds, and the company has decided reinvesting capital is not prudent. He clarified that 'non-commoditized fitness' refers to curated experiences like hot springs and climbing gyms, which attract premium pricing. CIO Gregory Zimmerman added spa hotels to this category.

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Douglas Linde, President & Director, announced a newly executed lease brought the project to 33% leased, with another lease in progress expected to bring it near 40%. Hilary Spann, EVP of the New York Region, added that while the Midtown South pipeline is thinner than Midtown proper, they are seeing consistent activity, including a micro-trend of interest from AI-related businesses.

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President Douglas Linde clarified that BXP's exposure is limited to a single lab building with a lease expiring in mid-2028. He expressed strong confidence in the Kendall Square submarket, calling it the premier global location for lab space. He stated BXP is prepared for any outcome with Biogen and that the situation does not change their positive long-term view of the asset or market.

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President Douglas Linde clarified that the sublease issue is most significant on the West Coast, particularly in San Francisco and Seattle, and is not a major problem in New York City. He estimated that 2-3 million square feet of space is sublet across the portfolio, but noted much of this relates to older, known situations, and BXP is not actively competing with its own tenants for new leases.

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CEO Angela Aman stated that while the focus is on the initial $150 million goal, the company is actively evaluating its entire land bank, suggesting more monetizations are possible. EVP & Chief Leasing Officer A. Robert Paratte attributed San Francisco demand primarily to new company formation and expansion rather than a wave of companies moving back.

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CEO Angela Aman stated the DermTech outcome, which resulted from a bankruptcy, was roughly in line with expectations. EVP and Chief Leasing Officer Rob Paratte added that the outcome was better than expected and there is leasing activity on the returned space. Regarding L.A., Paratte described the market as fragmented, with Long Beach performing well while the West side has been slower but is seeing an uptick in tours.

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CEO Angela Aman and EVP, CIO Eliott Trencher detailed that the Del Mar acquisition was compelling on an as-is basis, with a low double-digit stabilized yield, and offers long-term strategic value through potential integration with One Paseo. Eliott Trencher and EVP, Chief Leasing Officer Rob Paratte explained that moving the development projects was a technical milestone and that a one-quarter stabilization delay on one asset was due to a design pivot from single- to multi-tenant use after a previous tenant's bankruptcy.

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CEO Mark Manheimer responded that they will continue to focus on attractive lease terms and rent escalators to drive internal growth, consistent with their strategy over the past year. Regarding Walgreens, he noted that buyer uncertainty about its future balance sheet makes sales challenging, but NetStreet is well-positioned with low exposure and low-rent assets that have attracted interest from other retailers.

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President & CEO Mark Manheimer stated that lease terms will remain attractive with a focus on internal growth, even with moderating cap rates. Regarding Walgreens, he noted that buyer uncertainty about its future balance sheet makes sales challenging. However, he emphasized NetStreet's strong position due to low rents and quality real estate, which attracts interest from other potential users.

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President & CEO Mark Manheimer assured that new investments will continue to have attractive, long lease terms and rent escalators, consistent with the focus on internal growth. Regarding Walgreens, he noted that buyer uncertainty persists pending clarity on its future balance sheet, but he believes Netstreit's assets are well-protected by low rents and strong locations, which attract interest from other potential users.

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CEO Mark Manheimer assured that lease terms would remain attractive, with a continued focus on improving internal growth via rent escalators. Regarding Walgreens, he noted that buyer uncertainty persists pending clarity on the tenant's post-transaction balance sheet. He believes sentiment will improve early next year and highlighted NetStreet's strong position due to low rents and quality real estate, which provides significant downside protection.

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CEO Mark Manheimer stated that while tariffs create uncertainty, they have not led to any additions to the credit watch list, and he emphasized the portfolio's resilience to economic slowdowns. He also confirmed that he believed they added three new tenant relationships during the quarter.

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CEO Mark Manheimer stated that no downtime is expected for the Big Lots locations. He also explained that the buyers for the Walgreens assets have been exclusively 1031 buyers, and while the appetite is there, the sales process requires more 'handholding' to get them comfortable with the tenant's headline risk and the specific location's strength.

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CEO Mark Manheimer explained that the disposition strategy for Walgreens focuses on upgrading portfolio quality, such as selling assets with shorter lease terms to increase the overall weighted average lease term. He also noted that the recent rise in the 10-year Treasury has tempered seller expectations, making it slightly easier to find willing transaction partners compared to earlier periods of rate-cut speculation.

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EVP of Operations George Johnstone described the Uptown ATX pipeline as a mix of financial and professional services firms, with advanced negotiations underway with two or three prospects, including a potential full-floor user. President & CEO Gerard Sweeney detailed plans for other assets, including pursuing residential rezoning for the Riverplace complex, marketing 4 Points for sale, and actively leasing up space at Sierra Center and 101 West Elm following renovations.

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Executive Vice President George Johnstone responded that there has been no real change in concessions or tenant space requirements on renewals. Executive Vice President Jerry Sweeney clarified the GSA lease is for the IRS at Cira Square, expires at the end of 2030, and that they are in active dialogue regarding future plans. The building is currently at about 80% physical occupancy.

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CFO Thomas E. Wirth and EVP of Operations George D. Johnstone addressed the deferred tenant allowances, with Johnstone clarifying that most have "use it or lose it" sunset provisions that trigger in 2025, making a spillover unlikely. Regarding rent spreads, Johnstone stated the negative outlook is predominantly driven by a single large renewal in Austin where the company traded a lower face rate for no TI costs, resulting in a positive net effective rent. Excluding that deal, spreads would be positive.

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President & CEO Christopher Constant confirmed a strong outlook for the second half, citing a robust pipeline of over $90 million and active underwriting for new deals. He explained that while the market is generally in the mid-to-high 7% range, some Q2 deals priced just above 8%. He noted the current pipeline is priced in the high 7% area, consistent with their expectations for the year.

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President & CEO Christopher Constant expressed confidence in a strong second half, citing a robust pipeline and increased acquisition activity. He explained that while the market is generally in the mid-to-high 7% range, some Q2 deals priced slightly higher, driving the average up. He noted the current pipeline is priced in the high 7% area.

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CEO Christopher Constant explained that it is too early to determine the full impact of tariffs on tenants but the company is monitoring the situation closely. CFO Brian Dickman detailed that the cost of capital for recently raised funds is in the mid-to-high 6% range, generating spreads of 110-120 basis points on a pipeline yielding in the high 7% area. Mr. Constant added that cap rates have remained stable and it's too early to see significant movement from recent market news.

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COO Mark Olear stated the Zips units are relatively new and could be put back into operation quickly. CFO Brian Dickman added that the company assumes the five non-rejected leases will remain with Zips as they are likely stronger stores. On cap rates, CEO Christopher Constant pointed to the current pipeline's yield in the high 7% range as a good indicator of modest compression from 2024's 8.3% average, noting little appetite for further significant compression.

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COO Mark Olear stated that the bid-ask spread persists, but Getty is confident in its ability to source deals through its relationship-based strategy. Regarding cap rates, he pointed out that the current pipeline is at a blended rate in the mid-8% area, which is higher than the year-to-date average of 8%. This suggests near-term closings could see a higher cap rate, though he acknowledged rates may compress again in 2025.

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CEO James Farrar explained that the St. Petersburg project was initiated two years ago to capitalize on market strength, with an expected four-year timeline including one year of presales and three years of construction. He assured that alternative parking arrangements are in place to minimize tenant disruption. Executive Anthony Maretic addressed occupancy, stating that 143,000 square feet of signed leases are set to commence, which, despite a temporary dip in Q2 from known vacates, will bring year-end occupancy within the guided 85% to 87% range.

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CEO James Farrar explained that the St. Petersburg project was initiated two years ago to capitalize on the strong market, with a projected one-year presale period followed by three years of construction. He assured that alternative parking arrangements are being made to minimize disruption. Executive Anthony Maretic addressed occupancy, stating that 143,000 square feet of signed leases are set to commence, which, despite a temporary dip from a tenant downsize at Greenwood Boulevard, will bring year-end occupancy within the guided 85% to 87% range.

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CEO James Farrar explained that Superior Pointe was sold because it is in a challenged submarket where the company did not want to invest further capital, opting to focus on higher-growth markets. He noted that liquidity is returning to the office capital markets, especially for top-tier and smaller assets. Farrar clarified that the Sunbelt portfolio was broken out to highlight where the company expects to create the most value and see significant rent and occupancy growth. Regarding the GSA lease, he stated that discussions are at a natural, early stage, and while the tenant heavily utilizes the space, the outcome is still uncertain.

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CEO James Farrar explained the WeWork renewal was driven by an existing enterprise tenant who wished to extend their stay through 2026, resulting in a 26-month lease with a 6% rent increase and no tenant improvement costs. Farrar and CFO Anthony Maretic attributed the improved occupancy guidance to significant Q4 lease commencements in Phoenix, Raleigh, and Orlando, with a 42,000 sq ft lease at Ingenuity Drive being the largest contributor. Farrar also confirmed a favorable trend of larger tenants returning to the market and committing to longer-term leases for high-quality properties.

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CEO James Farrar explained the Phoenix recovery is broad-based across most industries, with the exception of the tech sector. He also reported strong momentum in the spec suite program, with vacant inventory dropping from 82,000 to 48,000 square feet and plans to build more. Executive Anthony Maretic stated concisely that fixing the rate on the Central Fairwinds loan extension was a requirement from the lender.

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CEO John Moragne attributed the 6.9% cap rate on the Fiat project to the tenant's investment-grade credit, asset quality, and prime Atlanta MSA location. He stated BNL expects to fund about $217 million of its pipeline in 2025. Regarding Dollar General, he explained the acquisitions were sourced via a direct developer relationship with attractive mid-7% cap rates and long 14-year lease terms.

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CEO John Moragne attributed the Fiat deal's cap rate to the tenant's investment-grade credit rating and the asset's prime location in the Atlanta MSA. He outlined the funding schedule for the current pipeline and defended the Dollar General acquisitions by highlighting the direct developer relationship, long 14-year lease terms, and attractive mid-7% cap rates, noting BNL's overall exposure remains manageable.

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CEO John Moragne explained that while Zips initially sought to reject 7 of 10 sites, BNL is pushing back based on its master lease structure and expects a more favorable outcome. He noted Zips aims to exit bankruptcy by March or April. Moragne confirmed significant inbound interest from parties looking to buy or lease the sites, providing a strong backstop. He attributed the light Q4 investment activity to a disciplined approach in a competitive market and timing, with one deal from the summer closing in the new year.

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The Zips bankruptcy outcome is uncertain but they are confident due to their master lease structure and expect a resolution by spring. They have received inbound interest to sell or re-lease the properties. The lower Q4 investment volume was due to a competitive market and a disciplined approach, not just timing.

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CEO John Moragne explained that while bankruptcy outcomes are uncertain, BNL feels confident due to its master lease structure and significant inbound interest from parties looking to buy or re-lease the Zips sites. He noted the Q4 investment slowdown was a result of a disciplined approach in a competitive market, rather than a lack of opportunities, and that some of it was timing-related.

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CEO John Moragne confirmed there is interest from local and regional buyers for the healthcare assets but emphasized BNL will be patient to maximize value. He described the mid-market industrial space as 'incredibly competitive' with no signs of seller capitulation yet, despite rate uncertainty. Moragne added that BNL has ample capacity to be opportunistic if market conditions change.

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CEO John Moragne responded that buyer interest for the remaining healthcare assets exists among local and regional players, but BNL will be patient to maximize value. He noted that the mid-market industrial space remains highly competitive with no significant seller exhaustion yet, though BNL is prepared to be opportunistic if the market shifts.

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