Cousins Properties (CUZ) 29 Oct 212021 Q3 Earnings call transcript

Good morning, and welcome to the Cousins Properties Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instruction] Please note this event is being recorded. I would now like to turn the conference over to Pamela Roper, General Counsel. ahead. go Please

the Executive morning, earnings Good Connolly, to Properties Financial Hickson, Cousins President Gregg Operations; Thank our Adzema, call. and With quarter Chief X-K. GAAP were our all package, supplemental the Richard in Officer; conference has Chief The reconciled supplemental press Colin afternoon Reg President well the release me third package G and comparable as of and In as financial and you. Officer. Executive most measures accordance with to non-GAAP yesterday measures distributed welcome furnished directly Vice today our on Form requirements. are company

these discussion page copy, quarterly risks any contained a our The and with With and from. call be federal forward-looking risks statements, package company laws, Colin Please our materially turn filings. and yesterday, our as that and actual results you not in whether a SEC that, supplemental does the the website, the over certain undertake forth uncertainties and filings set events COVID-XX forward-looking significant on on are there of severity or new supplemental not including posted there aware and annual potential duty the pandemic statements If particular, declaration the as otherwise. is of detailed timing is may to the today matters related uncertainties In differ SEC within I'll and are future The Relations available available update our links Connolly? may to risks SEC. statements these recovery duration a in disclosures receive and result report the to constitute of regarding Form any information, strength and meaning statements from other through forward-looking full risk the to a cousins.com. in factors and the of of information XX-K did discussed Investor of documents other due the the factors, securities variety

We the good third to and then, their delays. and Sun our Pam, Labor with teams the hit began customers morning, quarter post variant you, hard Delta office the that Since Thank Day. the everyone. created Belt the will begin back bringing expectation

as significantly we're customers that plan hearing However, this from or the increasingly early cases return now next end have declined, toward year. our year they to of

We are encouraged.

strong the quarter. delivered team financial Our results during third

are Here few highlights. a

On XXX,XXX square the expansion of average. importantly, foot, increased in earnings than cash and weighted effective square front, NOI lease over which X.X term basis FFO. per XXXX $XX.XX and the on years a feet, net of share X.X%, including feet our new per average XXX,XXX is higher rent of over leased delivered a team with and $X.XX Same-property square we leases

the rollout our with to since rents strongest net increased Second-generation And we XX.X%, of EBITDA debt cash quarter ended XXXX. X.XX times.

macro trends remains office around office ambiguous, performance becoming our While leasing three the clear. that narrative are quite highlights sector

ago. real make the just plans were connecting up strategy few an for firming least forward-thinking media their resignation all-time time. to between companies Thus, they and growing making companies of of persistent are remote at employee attrition and prepared In to they recognize business are eroding stronger not environment, this corporate First, high. most at the innovative the person cultures. in and dots leaders the headlines, long-term return decisions is great are a that estate quarters Contrary many that

in have urban Sun of Austin, are in latest more of and and companies south of migration accelerated. just like Midtown the the and located Belt places changed the Visa, Cisco, urbanization is of in end pipeline. experience and best are Tesla There to has Bets in Coast. business. the addition Second, the cost worlds. in doing a Charlotte, climate lower a examples. West Belt living the larger dynamic The and Sun cities Downtown the for Northeast Atlanta, Arc both attractive the It's an offer dense, more previously cities equation rapid now

to toured The in Southern our I've was is and of private flight working quality working, leader. completed Midtown with and said. neighborhoods Earlier innovative intensified. he this local technology the feedback, project includes collaboration spot heart the much headquarters Atlanta. for countless state-of-the-art His Lastly, home, amenities, all week, Norfolk at better a than business space, simple recently on. It development

and well inspiring customers compelling positions that trends. be intersection a At will Our in at recruiting rebuilding and us Cousins, a culture connectivity. we recognize and have that the advantage of as as space interesting unique and talent these competitive retaining strategy

responding. and the one which authentic market Heights XXX,XXX Tampa moves $XXX.X Union, providing spots of unique amenitized, Union, we as Including foot new The in office recently, were have gross COVID-XX pandemic. in we are in Tampa's development gathering start and price approximately Most experience. billion a a square the highly of are completed a of The since for neighborhood emerged Heights faster, work, acquired we As XXXX has buildings, live, signature million. X $X.X efficient. acquisitions invested the Height X-story property play

representative in are Nashville. We all respective products future the in in the are the Austin Charlotte, their about They differentiated of and markets. excited XXX in Atlanta, railyard New of X in our office Ponce in Domain Hawk

properties, capture positioned we Fort of strategic reduced trophy and transactions demand result period, and blended same have Charlotte, End, Hearst X net value-add customer the sold and approximately Worth. are $X Plaza profile. and Burnett returns CapEx a a South these to outsized billion a During including portfolio Tower The in on of basis noncore

have at true earlier, on unconventional Peachtree other development Cousins was excited development development and this year-over-year our Norfolk highly lease to X,XXX XX completed great mentioned the declining stream uncertainty. foot transaction. created customer, project. we fee a December challenging and The transition earnings the Southern square The has side profitable of created comps to XXX,XXX for for expiration I win-win. the are headquarters we As outcome Nonetheless, a a

XXXX at we as Looking beyond, will story well more Cousins forward are early our on committed are is future. In the approximately we positioned for a our XX% already Richard Peachtree simplified, great and making closing, XXXX touch and re-leasing including this in LOIs. progress on to moment. efforts

in Belt We trophy portfolio markets. have fast-growing a Sun assembled

We growth opportunities we the have and gains rental within organic portfolio as increases. rate drive occupancy

growth We have opportunities million external in development pipeline. $XXX our

of in have X,XXX and including $X.X we can addition, development, multifamily office square In over units. trophy another that a land X support well-located bank over feet million billion

that on the a sheet Importantly, to we execute provides capable have team financial and strategy. rock-solid highly balance a flexibility

our every company's day to Richard, team outstanding who They over hard over call and the to the entire service turn turning you. work Cousins Before to to I dedicated Thank our I'll to cornerstone talents customers the success. bring it company. to Richard. are of our thank want their

Thanks, Colin, and good morning.

markets it, quarter, our This In an and leasing increase along strong. quarter core see third short, with we our in transaction operational continue in and economic recovery to activity. was performance

remains to and quarter. measure more quarter-over-quarter. there is not energy parking revenue compared evidenced level to variant While variant, last that the office by Delta the noticeably a With the are and our quarter. we this it, properties still increase significantly to said, for markets. encouraged at across high-quality we the portfolio return Delta This in pandemic by utilization, the activity our as Due XX% some, delay did most of office increase for transient the space demand is

results. Turning to third quarter

Our weighted came XX.X% total respectively. office at in percentage and portfolio lease and occupancy XX.X%, average

in the Domain Our quarter Buckhead Point lease in XXXX the and this XX previously average and declined of activity in at Peachtree at increased expansion of percentage points impact leasing new and with basis disclosed occupancy XXX weighted Austin. out Anthem points Peachtree by move driven Terminus basis Buckhead. XXXX at Conversely,

$XX.XX second results. activity and executed feet on this effective net our XX% cash portfolio rents effective increasing XX.X% basis. was $X.XX we growth time to team a encouraging quarter an well in new last Similar our outstanding XX rents The higher with full seeing leases as this of XXXX. in the quarter, this quarter, quarter, are were activity. still rent As accounted quarter, total and year over improvement this fantastic for leasing leasing expansion second-generation Net of net our development. a the consistent the level it for upswing the We square in quarter rents totaling produced reported general since than activity portfolio leases for clear in were a and our and at new then. for held was our and has volume both existing on pipeline, and quarter, second Tour XXX,XXX portfolio

in the lost much jobs aggregate. to also quicker recovery jobs during which those Belt to Sun every Institute, their regain has compared comparison the in United in end down by the the recovery greater the nearly all the markets Urban be market the According of our markets U.S. Land markets. year, pandemic, as optimistic We but is Belt economy collectively almost of lost been projects ULI the X%. to are expected about Sun continued still will States, to that

Now this since absorption impressive with square an for third pandemic begin hub. to XXX,XXX quarter. conditions past as Peachtree square previously Midtown, million disclosed office new activity serving is includes foot first Visa about signed we quarter That milestone. square to XXXX positive markets. encouraging net Atlanta. Atlanta specifics foot I'll at portfolio, In the in speak nearly at XXX,XXX I'll and feet with some our our Atlanta in JLL, current weeks feet. saw of the an Atlanta time According began XXX,XXX X the leases the in square This Visa's

another hand at Xb location view of XX,XXX final and as have that LOI in validation truly also at with Peachtree a customer We irreplaceable XXXX square of We this strong potential a repositioned feet. assets. a activity for property quality the

properties record of Buckhead producing of rates. well-amenitized redeveloped XXX,XXX activity and project, demand leasing for year-to-date feet square example at high-quality our Another Plaza rental is

March portfolio foot newly XX,XXX At located lease activity to Austin, taking that, lowest of with climbing. new strong leasing XX% lease. this of quarter, A In leased. square as showed XXX,XXX This end expansion since we feet ever this of Buckhead to quarter company, newest technology sublease its assets with Austin population Terminus, Atlanta activity. leasing XX,XXX a new overall quarter. signed asking was The and accounting XXXX market Peachtree and continued XX,XXX one quarter this available in for rate a foot space financial our average Our XX% quarter Alpharetta, of our and after rents at produced Avalon, and total be growth in XXXX Atlanta a square for CoStar unemployment the respectively. this square and also Further, public XX,XXX the includes at great building Class decline

with company portfolio Austin, technology the signed we portfolio the In Austin, entirely XX Colorado in with was portfolio XX% growing increasing well XXX,XXX to among a solid talent With and third million a since in X.X ranks the Heights Austin -- we positioned a Charlotte and little this South existing markets regard XX.X% in leases expiration at XX.X% by XXX% foot in currently of According activity end the feet CoStar of January the population at very acquired leased, available and square-foot leased square the Tower, core foot XXX,XXX in of lease. which including Like total showed the millennial at X.X JLL, space our Atlassian square Tampa, space leased. is domain its square-foot Tech downtown largest will decline that Talent leasing robust XXXX a report, Our CBRE's operating million where sublease quarter to quarter, Union is XX,XXX Tampa now operating new our to End at square Class quarter foot available. XXXX. submarket. activity recently with lease meaningful with tenth for A backfill uptown XXXX. According tech of Charlotte, had

at data year-to-date country is the the has pre-pandemic rents down XXX.X% have April quarter. this one Greater the outlook. behind year-over-year square of Westshore growing in pandemic, rates XXXX, direct jobs While levels. signed When also jobs leases past to A Austin, than Greater Phoenix Phoenix that where asking bulk now asking of more before portfolio in above recovering average few of the metro Class increased is of XX,XXX the places versus XXXX. We the are many fastest Phoenix the according Chambers annual submarket, The feet second buildings to country in of comparing our is overall, since Tampa economic X.X% the in located or area

negotiations for quarter, While reflected our we currently feet million our this in leases of at pipeline light the was completed are recovery new our in lease square $XXX activity development. extension and as is in Phoenix XX,XXX new

service. produce Cousins continue Before do. am great I results to excellent that committed handing thank you Gregg? off I They and to deliver want Gregg, customer to and all grateful the hard-working team. for

remarks our by remarks overview discussion Thanks, balance on detail a providing financial my my brief everyone. position, and the same-property development our including before our leverage of our Richard. our morning, on a closing some information for pipeline quarterly of performance, transaction results, quick followed Good with our updated begin by activity I'll outlook XXXX. of

remarks, As Colin's you can we've from busy. been tell extremely

want take quarter. our we positive solid velocity since However, while don't leasing Leasing outstanding, the transaction very in the that to all during attention quarter fourth performance from away the particular, spreads were up activity of XXXX. most operating second-generation cash was

of new our we've representing almost with of Sun new our The leases. feet square to signed almost a so quarters, A to million two that past customers total leases. X.X is Belt the of strategy. Class -- properties attract ability indication many Over powerful two-thirds

big the especially from typical over decision to revenue. turn for signing of our portion early not customers, new time It's and significant and the extended hiring Attracting time, competitive signed revenue is just 'XX the of moving new not from a or the lot until 'XX. compared period to advantage. space coming to lease a recognition to we they're surrounding all the a out between it to this do company existing A takes renewal. new late often a is construction a open planning months employees, leases new endless Sunbelt of simple begin means last It recognition new takes if logistical into a for which X employees details easy office, revenue have address However, market. management, it's establishing

Turning results. quarter back to the third

departure increased continued X.X% over very single NOI that a Midtown last to revenues are our move-out remain still performance largest same-property Buckhead Atlanta. over new levels. parking the a a Anthem's XXXX, NOI but three constructive talked revenues. property XX% basis in X.X%. Richard in on in Our significant campus trend. to increased The Peachtree quarters, bottoming during would parking remains the XXXX After generate below cash have performance and and of in a our excluding a quarter the about. change same-property variable basis healthy on large fourth consolidated same-property up year, cash last from in pre-COVID a the XX%

$XXX submarket asset, into to development pipeline Focusing Neuhoff, one property Domain on development schedule. was in be was the in efforts, of of another represents four costs million off X.X estimated property current The Cousins for while Austin pipeline leased our development Total added to development Amazon total joint our asset, moved a statistics, XX million office Neuhoff portfolio an are venture across Germantown with $XXX our our in mixed-use Domain our submarket XX% and assets. amount. a primarily million representing investment schedule the interest of that to feet square Nashville of

top On of been at the the laid as transaction out the active. very we've front, Colin call,

X.X execute times, during provides net unfolded, exceptions we XXXX. We transactions expect As defensive debt-to-EBITDA believe and/or as firepower time. profile challenging leverage-neutral additional around opportunity since of as as presents this well us our compelling offensive properties, both to itself. with If commence very we've few has leverage you support continue we've series when to these maintained when transactions times this done should developments over the fund acquire investments additional on basis a to and

all earnings construction are our acquisitions a guidance This at Neuhoff extension matures our from up development This discussed million loan I'll quarter. variable previous between currently significant $X.XX is been revenue. have included and parking midpoint X-year full September joint updating $XXX a during This dispositions, the guidance. development We The the XXXX XXXX in includes venture third remains closed call. we front, anticipate transactions option. that close our other Markets includes guidance and a this behind in loan guidance. Capital potential guidance. the FFO on no $X.XX our share. On for There by the penny per most XXXX year our starts new or

to during into returning office anticipate we continue the year-end. quarter, customers the maintaining this third Our trend and

turn back Our that, to for assumptions call this your revenue reflect the me over current With questions. let the outlook. parking operator

[Operator first question Dave Please Instructions] Rodgers ahead. Baird. go from of comes The

and you changes, as picture trades guess drove type question. I building Wanted research boutique-y locations, that to like, understand call what the Colin within I a to drove upgrading, seem the go the guys those some COVID the have decided start you Richard, And you guys I wasn't portfolio But you've guess number most that expect of quality with direction factors and are some wanted these to that? changing also a that went would what do of big a that of changing and are making have the historically this done direction? or maybe during developments make them companies you office. to continue of I to of is to lot potential kind in that made decisions kind acquisitions

Dave, for talent. I'd it's investment right make by decisions and from their they and retain real think strategy, the firmly right say, and to Cousins, important I and us environment feedback about our to they product at recruit as your and go is them I around customers question. estate -- Colin, appreciate driven the the that what's our

settings a but place or whether are customers urban And again, -- kind we which they downtown has been out like say, prior so experiential product that pandemic. active candidly, domain. the from area mentioned, generally at to of I'd the amenitized-type an that very want. they we throughout active as we like you same type product and be executing But been and more of the in they of mixed-use have kind the our inspiring customers today, the shift continue were And pandemic, meet very to, strategy, to newer, where interesting a see into the in unique our

strategic And pretty of say have with I'd and perspective, our we new so really we the some of say, has a attractive blends I'd existing been, that have value-add with from And between compelling funded that, assets. returns. it balance properties our older strategy, largely investment to acquisitions really development sale vintage

we've so kind type is with certainly that trophy generate I that, just those kind positioned and on of the at I day, my speaking, feet. lower value-add but the in us XXX-plus as square with of average, outsized demand remarks, has the generally returns, to been a developing that end a have profile. And positioned delivering mentioned think CapEx buying don't properties and of of been portfolio

So them I don't lot know them and environments. characterize I I of really as inspiring I'd boutique. characterize a would amenities exceptionally really that well attractive as located interesting, and is said, with

Next question go Powell Barclays. Please ahead. comes of Anthony from

go second describe very look markets? strong. in the subleasing the York. we where So those vacancies generation over, you markets impacting of seeing Could pricing other at space of your most we pricing you're markets I that how pricing some markets, coastal impacting And guess, maybe and in like that's see major was sublease of vacancy the New and

Well, it's Colin.

-- off they and revisit alone. the we And a space has Richard remarks, quarter of the majority characterize square their that vast sublease last in been or I kind customers seen the by market inventory, that his Austin, as lot the have should activity almost a to return of office. the declined take activity example, say, markets, it to rethink decline decided in just have I'd of reduction think in sublease the As mentioned where for XXX,XXX major our sublease feet

footprint a new dynamic some for what's other differentiator in-migration submarkets new particularly But and was Belt into companies our Northeast. leased housing. long alternative And our customers. in are, an I Sun been times markets affordable Coast of of within on to not think the has again, the or our driven the are of been commute urban markets looking of component many by for just by our cases, or as reliant transit mass that And West kind it lack

our adopt to into it for makes and strategy. Atlanta as Austin more so into in-office customers And robust they easier that a migrate or

activity, given Nashville company supply -- And or acquisitions to versus you started future now? right and obviously, at at likely the how and the harder point in chain new attractive near do issues, more in had get Austin Are grow the the we step you this development some look given still completed acquisitions development development it's you

at and it been Yes, has we And a both to our again, acquisitions activity, blend both. continue look at of development. looking recent

lot work, to contractors we're at with subs, from materials construction our XX-plus there in of right be very the of supply schedules. that partners candidly stay on. it's year advance kind intentional allow And a eye of throughout we something close keep throughout are a are and You that to that do Cousins country issues on world a are well stay the job more chain and to track us certainly businesses. certainly I we're on to the coordinating chain want deep are to relationships issues on I cases, pandemic and and with continuing able being some here done doing budget. our our in congratulate relationships general team, to lot But in our and stockpiling a who's our deliver Those by throughout leveraging think the time. more products fantastic record best to that And And supply impacting in closely continue on. our time benefit to those

think I markets into so take to we're opportunities. migration hopeful advantage some we're as we given into And additional the that seeing look of forward development our XXXX,

The Jamie ahead. next Feldman comes question go Please from of Bank America. of

that maybe Or mix next talk about mark-to-market? Is into this more Very just on heading sustainable the quarter. impressive spreads that onetime leasing this Or is based year? your quarter?

Jamie, Richard. is this

exceptional pretty our look we comfortable we pipeline, continue that to quarter. continue you will be rollups. to This feel post at able to good If was

posted best I X think, the like something Greg that years, think said. in I we've

I feel to going to roll quarter, up. this our every continue but expect we wouldn't about So good

of continues be And I markets strong. our across the pipeline activity think to

get executed of leases there's so from how out obviously and quarter-to-quarter. timing those And and work ultimately themselves

our I think volume depending in we've as strong. driven And on So exploration quarter some row is, I characterize -- at you But again, obviously what pipeline this -- in can variability in schedule. where would does the of us, it quarter-to-quarter, pre-pandemic activity of remains remain a look -- some of levels broadly front as second certainly leasing from see we

portfolio to you mark-to-market the in And right are now? able estimate the

mark-to-market We somewhere kind the delivered X% before that for a said long back the that is after going have the on portfolio all said between in XX%. of transaction. the the that we've really average, and quite Parkway to on and time We just range that pandemic, way

And so we're obviously doing a lot we're to of leasing again, continue and of But markets. bringing move in some of seeing certain our inventory our to market. rates rental market

So we the over again, two we're quarter-to-quarter, positive variability have to that next we'll confident forward as mark-to-markets. look but year or again, continue

types acquisitions as should is And forward? expect now. then repositioning think the about all own kind of assume type and currently noncore? And we to to what want products that? How portfolio dispositions of be I would we portfolio more going percentage the product And you see the of and say of thinking you you about you should

had again, Well, interesting type strategy I percentage certainly have specific there's think, noncore and have to to -- we we compelling through have that but that is invest primarily, unique wouldn't into newer capital sales. funded properties and We a date say vintage not, again, largely a a noncore. pretty

fortunate property of some assembled acquisitions youngest and we average stepping an just developments, specific the age back, work we do to compelling Tier we've take at opportunities the of to those the the it looking that office from across feel have transaction, do and we as think Parkway at think the with can in Cousins one portfolios sector try of way. opportunities. newest, XXXX. see financially We'll done I upgrade are here the advantage I a that transaction, new of very --

So is see we'll the upgrade that But of and overall do to a take terrific. way again, again, it advantage look as compelling, in we those opportunities. quality portfolio financially can is opportunities to

financially what's are you mean of compelling, these by definition neutral? financially compelling? So your Or

could and upgrading perhaps we certainly basis long-term to the short-term properties We it's at about the for its earnings, value. both on account net time long-term earnings, over metrics on building. and we risk thinking various in Jamie, earnings short-term stream that there's on basis. focused earnings take to quality based see addition look that profile also When demand asset are and into that a have certainly a

you of it able really work some at of as couple I positive look do shareholders. in back years, we our over recycling balance a is the way so And this we've last been hard. to here for that really And think Cousins a

of with then Midtown And about the thinking How incredibly supply job on next there been conditions busy just finally, about over thinking are the which has front. you Atlanta, couple years the where picture? And but are I about are -- pretty progress heading? there be feel you things know Or you're you making there'll do think good good at concerns? X,XXX, supply do

Yes.

talent. And are also you they some retain and the We but recognizing of incredibly dynamic can been in the good attract continue that for in companies talent that to -- mentioned, as market, market. -- reasons is the tech the feel best very about Midtown diverse Atlanta. it's those It are attract

continues pre-leased is and look delivery those base very muted. just And the I I'd XX% supply Invesco. development see so strong, to The would in at Georgia it's And Norfolk win-win to our -- Atlanta. that's And in a two it's really one under real, and there's so think, draw is been market the power Tech continue. the expect for we that the talent say, demand here really and positive, profile, picture relatively Midtown of with building, look and There attractive. today projects over of the as actually today, to we Southern of

you a look actually basis. at the it -- pretty if strong a So on on fundamentals supply/demand are historical

Street Green from of Ismail question go Daniel comes The next Advisors. Please ahead.

over well out having your Is business the about I'm earlier it looking and A, or volume mentioned return to prep next lagging? leasing quality a more leaders bias phase just how and towards curious be sense you next that to our markets with Or across B, return so. levels? winning; that year pre-COVID big levels there still office will the as leasing decisions. making over as Colin, of

intensifying. between continued Well, flight quality, yes, see product. it's the I I do and is A think likely there's B it to think to highest quality bifurcation clear a And and product

of to a we that think are from I to more How And And take hearing resurgence seen relates how teams will you generally together making the for a the whether the as hybrid starts fits have into or customers but more companies plans it could you'll plays hybrid in that our I same will out, the translating said some much and how activity. adopt the out together As I as model, a actually time, see is that not. business return look various leaders leasing their office, ultimately to that and that virus at But impact be some time. some they plays return. there's highly I to COVID think teams it most has think back want of their even see to time. impact on many remains demand companies model are

just over business of said, And to so play the will start to the But those time. we're for leasing activity some encouraged return leaders period see extended as future. I it out as plan

pre-target across be for leasing averages? Sun the sense that will belt your lower it aggregates and Is than volume 'XX

very out future the we're positive. virus. pipeline continue too moment, to positive. to feel by forward, continue but optimistic from plays highly we I think to flare-ups I kind is I later that today prognosticate in can be markets will both and ultimately Well, it far I don't is the I what our be will at activity as stage very stage, strong, And our kind early we share think of that without look to in said, at good continues that how want But that be of and influenced

little last then developments construction Can for on touch pro heading And Is or rental bit you a on one this this increases? but underwriting. by rate land likely up, me increases forma offset prices costs as being rate rental earlier, up about well.

Yes, our disciplined would that certainly remain as our it try right? to be certainly We development yields. to hope, relates are

capital markets, seen cap compress. time, have certainly And so rental is for hope they increasing the the and rates to continue as we our increase construction costs I rates properties with At trophy are think that same that. increase in

as have margin think development And and impact yields in rates. will the do the I cap But about of kind think yields so some think and on I spread optimistic, development rate folks that of development cap and kind to in those try rates to two I between increases think earlier, next between I get year. some additional rental as some levers, we're said compression, the started

Dave We Rodgers ahead. it Baird. of go follow-up from have question a Please

let group that two, at me Earlier. there kind I if With to in tech then go with I two the Unfortunately, have to ago. that thought of maybe in anticipate a towards you quality one? you high this the back. attractive of a Midtown, tech look years would but tenant kind tenants executed companies. back it. would guess, I pre-COVID, guess, got X,XXX regard was strategy or transaction, change had was that and meaning high addressed there, off, ultra three out, a make tenants question, And obviously, that I'll to single already know. how sudden I'm Did that you you you I of pursue when this movement cut just than all I of from less read and a did

questions in So rolled you maybe about that up couple expected your tenant of XXXX? there a

at do attract we're think going to tech what Peachtree. Well, will continue excited interest. really it I'd we about And -- got on XXXX I

look key But same sweet And that in a company, overall spot move And intersection at lease obviously they time, is a most we very but like driver of as that of of here some transition confident kind customer recent services what asset that think and role we're exceptionally we're doing I find redevelopment well-located fintech can our large same is Visa, the with the I that's it customers at obviously, financial the of some tech repositioning Midtown if Oftentimes, into the at newer the time, a a vintage Midtown you company of into company. with assets, and compelling. demand. think themselves mixing properties. their view a Atlanta.

but and hopeful -- see industry opportunity to additional pass quality with And lot absolutely we're I interest in think company, to that. different and we'll But we're some additional strength an interested the a open that see see Visa from opportunity of So sectors, too of up. and up came of to good we'll was technology the the tenant. it when a single some

I turn Connelly remarks. Colin over This concludes question-and-answer conference our session. to like to closing the would back for

morning weeks you questions. a Roni of Gregg to please all In many time REIT. you May Adzema here Well, your to this if feel follow-up for thank having weekend. Imbeaux, in in interim, have reach We'll at you visit Properties. great opportunity the a look and Have any your Cousins to myself, out few free interest forward the with or to

for The now Thank presentation. has you concluded. conference today's attending

You may now disconnect.