Good morning, ladies and gentlemen, and welcome to the Cousins Properties first-quarter conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, May 2, 2025. I would now like to turn the conference over to Pamela Roper, General Counsel. Please go ahead. Thank you. Good morning and welcome to Cousins Properties first-quarter earnings conference call. With me today are Colin Connolly, our President and Chief Executive Officer; Richard Hickson, our Executive Vice President of Operations; Gregg Adzema, our Executive Vice President and Chief Financial Officer; and Kennedy Hicks, our Executive Vice President and Chief Investment Officer. The press release and supplemental package were distributed yesterday afternoon, as well as furnished on Form 8-K. In the supplemental package, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. If you did not receive a copy, these documents are available through the quarterly disclosures and supplemental SEC information links on the Investor Relations page of our website, cousins.com. Please be aware that certain matters discussed today may constitute forward-looking statements within the meaning of federal securities laws, and actual results may differ materially from these statements due to a variety of risks and uncertainties and other factors, including the risk factors set forth in our Annual Report on Form 10-K and our other SEC filings. The company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise. The full declaration regarding forward-looking statements is available in the supplemental package posted yesterday, and a detailed discussion of some potential risks is contained in our filings with the SEC. With that, I'll turn the call over to Colin Connolly. Thank you, Pam, and good morning. We had a terrific first quarter at Cousins. On the earnings front, the team delivered $0.74 a share in FFO. Same property net operating income increased 2% on a cash basis. Leasing remained very strong. We completed 539,000 sq ft of leases during the quarter with a 3.2% cash rent roll-up. This was our 44th consecutive quarter or 11 years of a positive rent roll-up. This is an extraordinary achievement. Given the solid first-quarter performance, we have increased the midpoint of our guidance to $2.79 a share, which represents a 3.7% growth rate over last year. Our encouraging start to 2025 highlights the strength and resiliency of our leading Sunbelt lifestyle office portfolio and best-in-class balance sheet. Before discussing the quarter in more detail, I will start with a few observations on the market. Fundamentals are improving. The existing supply of office buildings is declining as older buildings are converted or torn down, and new construction is almost nonexistent. JLL reports that 10 million sq ft have been removed from the U.S. office inventory since 2024 and predicts that inventory could decline by an additional 40 million sq ft by the end of this decade. At the same time, demand is accelerating. Leasing volume over the past 12 months now reflects 89% of typical pre-pandemic activity and is steadily increasing. We believe vacancy has peaked in the lifestyle office sector, and market tightening is not far off and already arrived in some submarkets. The return to normal is well underway. With these tailwinds, our team remains strategically focused on driving earnings growth while maintaining our best-in-class balance sheet. To do so, we are prioritizing both internal and external growth opportunities. Our portfolio was 90% occupied at the end of the first quarter, up from 88.4% at the end of the first quarter in 2024. We are thrilled to be making progress, growing our leasing market share and driving the occupancy back to more stabilized levels. As we have discussed, Bank of America's expiration in Charlotte this year is a small speed bump in that process. However, with the pickup in leasing activity and only very modest expirations through 2026, we believe there is meaningful upside in the cash flow of our existing portfolio in the intermediate term. Recent tariff discussions have created macro uncertainty. The most immediate impact to the REIT sector has been increased volatility in the capital markets. However, tariffs also create concerns over a softening economy, weaker demand, and higher construction costs. Given the strength of our markets, the quality of our portfolio of lifestyle office assets and fortress balance sheet, Cousins is uniquely positioned in the office sector to navigate these uncertain times. First, we have seen no impact in the leasing market to date. As I mentioned, demand remains robust across our markets and broad-based across industries. Many companies are still playing catch-up from not leasing enough space during the pandemic, which has created pent-up demand as the return to office intensifies. While higher construction costs could delay potential new starts for our development team, a further pause in new supply will only accelerate the tightening of market fundamentals for our existing trophy portfolio. Lastly, we still maintain a relative cost of capital advantage over our public and private peers. This advantage, combined with our balance sheet capacity from low leverage and strong liquidity, creates optionality for Cousins. We are positioned to capitalize on compelling opportunities that might arise due to the market disruption. Importantly, our 2024 transaction activity highlights the creativity of our investment team and openness to a wide variety of opportunities, including debt, structured transactions, joint ventures, and property acquisitions. However, our core strategy remains the same: invest in properties that already are or can be positioned into lifestyle office in our target Sunbelt markets. Near-term accretion is a priority. In conclusion, the office market remains highly bifurcated. There is little to no leasing demand or capital for commodity and older vintage properties. Values for these properties are resetting so that they can be reimagined or demolished. This process is now clearly underway. At the same time, the lifestyle office market is improving. New construction is at historic lows while leasing demand is improving. The market is rebalancing, and a shortage of premium space is not far off. We built Cousins to thrive during all parts of the economic cycle, and today we are in a highly advantageous position. We are in growing Sunbelt markets. Bank of America ranks our portfolio as the highest quality among all office REITs. Our leverage is the lowest across the sector. The pricing on our unsecured bonds trade at the tightest spread to Treasuries among all traditional office companies. In short, we have great access to capital, and we see great opportunity. We are excited about the future for Cousins. Before turning the call over to Richard, I want to thank our talented Cousins employees who are the foundation of our success. They are dedicated, hardworking, and provide excellent service to our customers. Thank you. Richard? Thanks, Colin. Good morning, everyone. Our operations team had a strong start to the year, delivering yet another outstanding quarter. In the first quarter, our total office portfolio end-of-period leased and weighted average occupancy percentages were 92.1% and 90%, respectively. As a reminder, the long-anticipated move-out of OneTrust in Atlanta occurred at quarter-end, and Bank of America in Charlotte will expire at the end of July. With that said, the team continues to do great work in managing our expirations, with only 9.3% of annual contractual rent expiring through 2026. This is 280 basis points lower than last quarter. Including Bank of America, we only have two expirations greater than 100,000 sq ft through the end of 2026. With new leasing demand continuing to be healthy, we still see occupancy declining likely through the third quarter and then building back toward the end of the year and beyond. This was a particularly notable quarter for Cousins from a leasing perspective. During the first quarter, our team completed 47 office leases totaling a very strong 539,000 sq ft, with a weighted average lease term of 6.3 years. Our square footage volume was the highest in a first quarter since 2019. On a transaction count basis, 53% of our completed leases this quarter were new and expansion leases totaling over 200,000 sq ft. Again, the team also made great strides this quarter in managing near-term expirations. Specifically, we completed six separate renewals for a full floor or greater this quarter. I'll provide more details on a few of these when I touch on our markets. Regarding lease economics, our average net rent this quarter came in at $35.87, in line with last quarter. This quarter, average leasing concessions, defined as the sum of free rent and tenant improvements, were $8, about 9% lower than the full year 2024. Average net effective rent this quarter came in at a solid $25.06. Finally, second-generation cash rents increased yet again in the first quarter at 3.2%. This is lower than our recent run rate and, as we always try to note, was a function of leasing mix. This quarter, we renewed a large customer in Northp ark in the central perimeter of Atlanta, a project where we tend to see rent roll-downs. Excluding that renewal, total portfolio second-generation cash rents increased 7.9%, closer to our recent run rate. Beyond our encouraging completed activity, our leasing pipeline remains very healthy at all stages, with no signs of slowing related to ongoing trade dynamics or macro uncertainty. In fact, our combined early and late-stage pipeline is currently near the highest level it has been in years. In short, as of right now, demand for lifestyle office appears resilient. At the same time, as Colin already highlighted, domestic office inventory removals are accelerating. This should be an important long-term tailwind for our business. At the market level, the broader Atlanta office market continued to show positive trends in the first quarter, following record-breaking deal volume in 2024. Per JLL, both average tenant requirement size and average lease term increased this quarter. Across our Atlanta operating portfolio, we signed a very strong 213,000 sq ft of leases, with approximately 110,000 sq ft of that at Northp ark. As I mentioned earlier, our activity at Northp ark included a key renewal of Veritiv in 68,000 sq ft. Veritiv's expiration was previously one of our largest in 2026. Austin has also seen solid demand for high-quality office space. CBRE reports that as of March, more than 112 tenants were actively seeking space, totaling over 3.75 million sq ft, which they state is a 33% increase in demand compared to last quarter. We signed 176,000 sq ft of leases in Austin in the first quarter, and our portfolio currently stands at 94.7% leased. Like Atlanta, this quarter's activity in Austin included some key renewals. Specifically, we completed a 34,000 sq ft renewal and expansion of KPMG at 111 Congress in the CBD, and a 71,000 sq ft renewal of Time Warner at Domain Point. Recall that Time Warner currently occupies 112,000 sq ft and was previously set to expire in September of this year. While Time Warner ultimately elected to contract by 41,000 sq ft, the contraction will not take effect until October of 2026. The contraction space extension is not reflected in our reported renewal leasing volume because it is only for one year. On net, we view this as a great outcome to retain a long-standing large customer with an opportunity to market a very desirable space with 17 months of lead time. In Charlotte, the market posted positive net absorption in the first quarter, and the development pipeline hit its lowest level since 2013, with only 150,000 sq ft under construction, all per JLL. Given the growing scarcity in high quality and new office space, we remain excited about our redevelopment projects at 550 South and Fifth Third Center in Uptown. As we mentioned last quarter, these significant redevelopment projects will elevate the properties with new amenities, refreshed lobbies, and plentiful outdoor space, cementing their status as best in class for years to come. In Phoenix, the team is very energized about the finished product after our redevelopment of our Hayden Ferry project in Tempe. There are currently a number of large office requirements searching in the Tempe submarket. An interest in Hayden Ferry, in particular, continues to be very strong. In fact, I'm very pleased to report that we are in lease negotiations with a 105,000 sq ft new customer at Hayden Ferry One. Once complete, this new lease would take Hayden Ferry One to 76% leased. Recall that this building was occupied by Silicon Valley Bank prior to its bankruptcy and was 0% leased only seven months ago. In Tampa, our team leased an impressive 84,000 sq ft and rolled up cash rents 5%. Our activity also included yet another key 41,000 sq ft renewal of a customer at Corporate Center III. Our Tampa portfolio stood at a solid 96% leased as of quarter-end. Finally, our Neuh off mixed-use development in Nashville continues to show momentum. After quarter-end, we signed a lease with Fifth Third Bank for 18,300 sq ft at the project. This lease takes the commercial portion of the project to 50% leased. Our multifamily leasing velocity continues to accelerate as well, with that segment increasing to 70% leased as of today. In light of this velocity, we have moved up our projected stabilization of the multifamily by one quarter to the first quarter of 2026. As we look ahead, even amid today's macro uncertainty, we are encouraged by office fundamentals and the continued leasing momentum we see as we move further into 2025. As always, thank you to our entire team for your hard work to make the start of 2025 a positive one. We look forward to continuing the momentum together this year. Gregg? Thanks, Richard. Overall, as Colin stated upfront, our first quarter results were outstanding. Second-generation cash leasing spreads were positive for the 44th straight quarter. Same property, year-over-year cash NOI increased, and leasing velocity was particularly strong. There were three items during the first quarter that pushed FFO above the current run rate. First, as previously disclosed, we sold our bankruptcy claim with SVB Financial Group for $4.6 million. Second, we realized an unusually large amount of termination fees during the first quarter, approximately $2.9 million. The front-loading of these termination fees in the first quarter was included in our original earnings guidance and was based on known move-outs. Three quarters of these move-outs were proactively initiated by us. Third, although the mezzanine loan on the Radius property in Nashville was paid off early in March, a recent loan modification guaranteed us interest income on this loan through September of 2025. We recognized this extra interest of $858,000 during the first quarter. This is a timing issue only and does not change the total amount of interest that we received during 2025. All three of these items, the SVB bankruptcy claim sale, the large amount of termination fees, and the Radius interest guarantee were in our internal numbers and do not impact our full-year earnings guidance. Focusing on same property performance for a moment, GAAP NOI grew 4% and cash NOI grew 2% during the first quarter compared to last year. This continues a string of positive same property numbers that began in early 2022, with the most recent quarterly cash increases largely driven by our Atlanta portfolio, with increased occupancy and cash rent commencement at Promenade Central, Buckhead Plaza, and 3350 Peachtree. There is one unusual item that ran through our cash same property performance this quarter. Our lease with Parsley Energy, now Exxon, at 300 Colorado for 298,000 sq ft included a mid-lease rent abatement for January, February, and half of March 2025. Without this one-time abatement, year-over-year same property cash NOI would have increased 4% this quarter instead of the reported 2%. It's a better indication of underlying portfolio performance. I also wanted to take a moment to point out the lumpiness that can sometimes run through our quarterly same property expense numbers. It's usually driven by property taxes. Property tax true-ups, as we receive actual assessments from the taxing authorities, can push the quarterly numbers around quite a bit. It is always best to use longer-term time frames when looking at expense numbers. For example, last quarter, our same property cash expenses were up 11.7% compared to the previous year. This quarter, they declined by 0.3%. However, for full year 2024, same property cash expenses were up 3.6% over the previous year, and they have increased only 2.3% each year on average over the past four years. Moving on to our transaction activity, we completed three significant deals during the first quarter. In January, we received the payoff of a $138 million mortgage loan secured by the Saint Ann Court building in Uptown Dallas. In March, we received the payoff of a $12.8 million mezzanine loan secured by the Radius building that I discussed earlier. Finally, over the course of the first quarter, we sold 2.1 million shares of common stock on a forward basis under our ATM program at an average gross price of $30.43 per share. These shares were issued in anticipation of potential new investments and will likely be settled when we identify and close on a potential new investment. Looking at our balance sheet, net debt to EBITDA remains an industry-leading 4.9 times. Our liquidity position is strong, with only $39 million outstanding on our $1 billion credit facility, and our debt maturity schedule is well laddered to accommodate efficiently accessing the unsecured bond market. Returning to our development efforts, the current pipeline is now only comprised of a 50% interest in Neuhoff in Nashville. We have moved Domain 9 in Austin, which is 98.5% occupied, to our operating portfolio. Our share of the remaining development costs at Neuhoff will be funded by a combination of our Neuhoff construction loan and our operating cash flow. I'll close by updating our 2025 earnings guidance. We currently anticipate full year 2025 FFO between $2.75-$2.83 per share, with a midpoint of $2.79. This is up one penny from the last quarter and is up $0.10, or 3.7%, over our 2024 results. The increase in FFO guidance is driven by higher parking income and lower real estate taxes, primarily in Atlanta and Austin. Our guidance continues to assume the assumed refinancing of a $250 million senior note that matures on July 6th. It also continues to assume no SOFR cuts in 2025. Our guidance does not include any speculative property acquisitions, property dispositions, or development starts. If any of those do take place, we'll update you on future earnings calls accordingly. Bottom line, our first quarter results are excellent, and we're raising the midpoint of our full-year earnings guidance. Our best-in-class leverage and liquidity position remains intact, and despite macro uncertainty, Sunbelt Office fundamentals are solid. Although it's not in our guidance, we anticipate the potential to deploy capital into compelling and accretive investment opportunities. We look forward to reporting our progress in the coming quarters. With that, I'll turn it back over to the operator. Operator, are you there? Yes. At this time, if you would like to ask a question, simply press Star, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the pound key. Our first question comes from the line of Dylan Burzinski from Green Street. Your line is open. I guess talked about how the demand pipeline remains fairly robust. Obviously, occupancy within the portfolio is high. Even though it's expected to dip throughout the rest of the year, it should continue to grow over the near term. I guess just given that backdrop and your comments around the supply expectations moving forward, I mean, do you guys get the sense that you're going to start to see "rent spikes" eventually across the portfolio? Can you guys talk about sort of the ability to push net effective rents in today's environment? Hey, Dylan, good morning. It's Colin. I think the backdrop for the lifestyle office sector, I think it's a positive one because, again, anytime you've got demand improving, at the same time, supply is declining. I think that will ultimately rebalance the market and, I think in time, show itself in really positive improvements in the leasing market, both from a volume perspective as well as the underlying lease economics. We already are starting to see some signs of that tightness or tightening. I'd say that's showing up in some of the concessions and tenant improvement allowances starting to level off. As those do, I think in time, we'll begin to see rental rates improve. I think if we see spikes, I think that's going to be determined by how long a period we have with kind of very little to no new supply. As I've mentioned earlier today, many times in the past, we do see some shortages of high-quality lifestyle office in certain submarkets. I think over time, if this delay in any construction starts takes quite a while, you could see some meaningful upside in rents, particularly when you compare that to what new construction rents are. In some cases, it's 50% higher. I do think there's a long runway for the highest quality lifestyle office rents to kind of the existing where they are today and where they need to go to get to new construction levels. Appreciate that color, Colin. Maybe just one, Gregg, you alluded to sort of the acquisition pipeline and looking for continuing to look for opportunities. I guess given you guys did the forward equity raise at the start of the year, I mean, is it safe to assume that there's something in the near-term hopper as it relates to the pipeline? Maybe if you can just sort of talk further about sort of the pipeline today versus maybe at the start of the year, are you seeing any changes with regards to seller appetite wanting to part ways with their properties given volatility in the capital markets? Yeah, sure, Dylan. It's Colin again. I definitely think we are seeing more owners explore the opportunities to sell. Perhaps some of these owners have kind of delayed decisions to sell for several years, and they're now looking to monetize. I think there is a greater volume of opportunity. That being said, I think the recent, I'd say, disruption in the capital markets with impacts to equity prices, debt spreads, that has a tendency to create a bid-ask spread. We have seen that creep back into the market. I could also see that being fairly short-lived. For us in particular, we're always looking at a wide variety of opportunities. We're always hanging around the hoop. We've got great relationships with owners out there. I think we're somewhat of a preferred buyer given our track record. We're always evaluating. We think we've got interesting opportunities out there. I wouldn't say any of them are immediately actionable as we balance the impact of those investments on our FFO accretion, our FAD accretion, what does it do to leverage, and some other strategic considerations. As the forward equity raise highlighted, we are optimistic over the course of this year that we're going to find creative ways to deploy capital, and it could come in a lot of different forms as it did last year. Awesome. Appreciate the details, Colin. Have a good one. All right. Thanks, Dylan. You too. Your next question comes from Steve Sakwa with Evercore ISI. Please go ahead. Yeah, thanks. Good morning. Richard, I didn't know if you could maybe provide a little bit more color on the pipeline, maybe either by market where you're seeing kind of the most activity and then maybe by kind of industry. Is it legal, financial services? Is it tech? I'm kind of interested in where, if in fact, you're seeing any big tech kind of picking up things. Sure. Good morning, Steve. I'll start with the industry break out of our pipeline. It really is remarkably diversified. As you drill down, I would say that there's today an overweight to legal, which we view as encouraging. I think particularly in that industry segment, we're seeing some pent-up demand that's starting to come through the pipeline. Again, it's diversified. We're seeing strong presence from our bread-and-butter kind of segments of technology and financial services and general professional services. I feel very good about the diversification of the pipeline. When you look at it by market, it is skewed. First, it's strong in every market, so we feel good about demand across the board, but it's skewed toward Atlanta and Charlotte mainly. It's no coincidence that that's where most of our availability is. Phoenix is also screening very strong. Again, we have a lot of availability there as well. One other data point I put out there is that in terms of deal type, we're seeing that we're over 70% new and expansion leasing opportunities versus renewals. A very healthy metric, we think, as well. Okay. Thanks. Maybe just to kind of follow up on some of Colin's comments about development, obviously, you have some attractive land parcels down in the Austin market. I'm just curious, how do you sort of think about new development? It doesn't sound like maybe large tech is maybe as robust down in Austin today, but how do you sort of think about activating a new development? I guess how would you think about a yield requirement for new development today versus some of the acquisitions you've recently done? Yeah. Good morning, Steve. We look at development as we do any other investment opportunity. We compare it relative to acquisition opportunities and any other ways we could allocate capital. Ultimately, the risk-adjusted return has to justify itself. Today, obviously, I mentioned construction costs are materially higher than they were some years ago. That ultimately means that the rents need to be materially higher to have a going-in yield that's attractive relative to where we've been able to invest on the acquisition side. I do think, though, as we look across the company, we've got a land bank of some really highly attractive sites, not just in Austin, but in places like Atlanta and Charlotte and otherwise. We're always looking at those opportunities. You mentioned in Austin, I think that's actually a really unique situation where we could see new development perhaps sooner than one would expect. That's a function of the two and a half million sq ft that we own out at the Domain is effectively 100% leased with almost no sublease space available. I do think there is some big tech, as well as some other large corporate users that might make their own independent decisions and be willing to make a rental rate commitment to get the space that they want in the submarket they want. I do think Austin has potential, and hopefully in the not-too-distant future, places like Atlanta and Charlotte and Nashville and some others. We do believe there's going to be opportunity and that rents are ultimately going to go up and will justify development. The question is just kind of when. Great. Thanks. That's it for me. Your next question comes from John Kim with BMO Capital Markets. Please go ahead. Thank you. I think this is the first time you mentioned office removals in your markets accelerating. I was wondering what markets in particular you're seeing that at and what's driving some of the removals. Is this going into multifamily redevelopment or some other use? Good morning, John. It's really now broad-based across all of our markets, and I think all across the country. It's a function of obsolete space. As you've heard me say in the past, the office market really isn't that oversupplied. It's just under-demolished, and there's probably been too little demolition in the office sector over the last 10 to 20 years. I think there's a certain amount of catch-up that's taking place. It's those obsolete properties that can really no longer attract customer demand and therefore investor demand. They ultimately are being repriced to a level where they can be either repurposed or torn down. I'm sitting in our corporate headquarters in Atlanta today in the Buckhead submarket, and I can look out the window from where I'm sitting now and look at several different properties, one of which there's plans to demolish parts of it and reposition others. Another park just down the road where they're planning on demolishing roughly half of the project of multiple buildings and consolidate the office into the other half and likely build multifamily. It's a combination of tear-downs, repositioning. I think you're going to see kind of a wide variety of executions. Ultimately, what's driving it is product that today is no longer relevant. Okay. That's interesting. In recent weeks, Blackstone has made office investments in Manhattan and San Francisco. I was wondering if you can comment on either Blackstone or the large private equity firms, their interest in office in your markets. Yeah. Look, I think it's a positive. I think ultimately there's more capital into the space. First, I think it shows their conviction that perhaps they have taken a view that the secular concerns and the overhang around the office business has perhaps faded. I think that should ultimately translate into a re-rating in the public sector and higher multiples. They see the opportunity. Really, I don't want to speak for Blackstone, but I think more investors are seeing an interesting and compelling opportunity that's driven by a market where demand is improving and supply is declining, and that ultimately should translate into higher occupancies and higher rental rates and an interesting investment opportunity to be on the front end of. Are you seeing them in your markets in particular? We're seeing an increase in private equity, in particular, some of the large private equity firms in markets all over the country. I think they're not just Blackstone, but others are interested in this higher end of the market or assets that can be repositioned into the lifestyle and quality assets where they think there's going to be, again, this interesting opportunity and perhaps in the not-too-distant future, an imbalance where there's perhaps more demand and less supply. I think it's across all major markets of the country, investment firms, both public and private, are looking for those opportunities. That's great, Colin. Thank you. Your next question comes from Blaine Heck with Wells Fargo. Please go ahead. Great. Thanks. Good morning. Just following up on the investment side, are you seeing any more or better opportunities on the debt side given the uncertainty that's come about and some disruption in the credit markets? Just wondering if we could see debt opportunities come back to the forefront for you guys. Yeah. I think it's a possibility, Blaine. Last year, we executed on three different debt investments. Then as some of the bid-ask spread and the uncertainty faded, you saw us begin to invest directly into the equity of properties. With a bit of dislocation that's happened more recently, I think it's definitely a possibility that we would look at the debt side as an interesting way and the appropriate part of the capital stack to invest in. As we've said in the past, we're not looking to build a large-scale debt book here at Cousins, but we're in a unique part of the cycle, and we think we need to be flexible as to where we invest. Gregg highlighted we've been paid off on two of the three investments that we've made. If situations arise and the debt part of the capital stack is the right place to invest and the right basis to invest, and it's ultimately an asset that we would be comfortable owning if need be, we'll make a select few investments if those arise. All right. Great. That's helpful. Can you talk a little bit more about the strong increase in leasing you guys saw at the multifamily portion at Neuhoff this quarter? Maybe touch on whether you've adjusted rents or concessions to kind of increase that velocity of lease signings? Sure. Hey, Blaine. It's Kennedy. As Richard mentioned, I mean, we're very encouraged by the velocity, and it just really keeps going. We have leased a lot of apartments there, and we are now looking at increasing base rates. We will start to have some renewals coming later this summer, but we are increasing base rates. We have held concessions for now, but are evaluating that on a daily basis. Okay. Great. Related to that, can you talk a little bit about the activity you have on the commercial space at Neuhoff? I'm assuming you have some kind of large contiguous blocks of space. Are there any large tenant requirements in the Nashville market that you think might fit there and be kind of a quick boost to leasing, or are you still more focused on some of the smaller tenants and slowly making progress towards that stabilization? We do have a large contiguous block that's left. We've also got some spec suites that we'll deliver here any day now. It's a bit of a mix, I would say, at the moment. We feel that a one or two-floor lease-up per customer is the right cadence, but there are some bigger requirements that are out there. They just may be a little bit further out in their decision-making. We're still seeing a steady flow of tour activity and think we'll continue to make progress on the lease-up there. Great. Thanks, Kennedy. Your next question comes from Upal Rana with KeyBanc. Please go ahead. Great. Thank you. Richard, you went through some of the implications of some of the renewal leasing in the quarter, but lease term did come down a bit to five and a half years. Was there anything that was particularly driving that? Hey, I think it was 6.3 this quarter. I think Time Warner weighed on that a little bit. They tend just historically to do renewals at more of the five-year or less timeframe. Just to give some context, if you look at our pipeline today, late stage, the lease term is pushing nine years. I think it's just the quarter dynamic that will obviously bounce around over time like it typically does. Okay. Great. You guys noted that you're seeing parking revenues increase, which is driving the guidance. How much of that is a function of higher office utilization versus increased pricing? Is there any markets that kind of stick out to you the most Upal, it's Gregg. Of the increases that we've seen on the parking revenue side, about 75% of that is driven by higher utilization, and about 25% of that is driven by increasing pricing. It is a really good proxy we have found over the last few years for utilization of our buildings. It is an encouraging sign for us. In terms of where it is coming from, Atlanta by far is our largest market in terms of parking revenues. Okay. Great. Thank you. Your next question comes from Jana Galan with Bank of America. Please go ahead. Thank you. Good morning. Going back to the potential acquisition and investments pipeline, with your balance sheet so well positioned today, how large could this opportunity be this year while still kind of balancing your leverage targets? It's Gregg. Good morning. What we've done in the past is, as we've executed these transactions, we've raised the incremental capital at the same time on a leverage-neutral basis. We have locked in the spread upfront with zero risk. It's been terrific. How we fund potential acquisitions going forward will depend upon what's available to us at that point in time. We will see what happens to credit spreads, as Colin talked about earlier. We will see what happens to our share price. As the cycle matures, we will also have an opportunity to maybe sell assets. I don't want to commit to how we're going to fund these acquisitions, although we do have this $64 million of forward equity sitting on our balance sheet, which, by the way, I know it's not large, but I see it as a very powerful asset that we have as we move forward with transactions. Outside of that, we're going to look at what's available to us at the time and make a decision as to how we fund it. Thanks, Gregg. Just in terms of kind of the leasing discussions, on renewals, in some of your markets, are you having any tenants kind of realizing the markets are really firming up in terms of space? Are you getting approached in any of your markets for early renewals? Yes. I think it's a short answer. We're definitely seeing situations where customers are looking at the landscape, especially paying attention to the fact that there really is a shutdown of new supply and doing the math and realizing that they need to get ahead of the game. This is absolutely something we are experiencing right now. Thank you. Your next question comes from Nick Thillman with Baird. Please go ahead. Hey, good morning. Maybe just wanted to follow up on something and broaden the discussion. What are you guys seeing on the new-to-market requirements? Obviously, understanding large corporate relocations aren't a huge driver at this business, but we've been hearing in Atlanta that there's a big pickup or not a big pickup, but a slight pickup here on requirements. Just curious if you could broaden that scope to the entire portfolio on markets kind of we didn't touch. Yeah. We're seeing an impact or an increase in all sorts of demand, whether it's folks that just are now making a decision and ready to make the decision to move from one building to the other within our markets, to, I'd say, an increase in some new-to-market activity. Some of the relocation activity has begun to pick back up. A lot of the, I'd say, a key driver for us now, and I think historically, oftentimes the new-to-market activity isn't necessarily a company that's picking up and moving from California to Austin, but it might be a company that's headquartered in California, has a presence in Austin, and a company making the decision to have more of their growth in Austin and continuing to grow and expand these hubs. We've seen that from the likes of Amazon and companies like Workday and Microsoft and others who have established these large hubs and continue to draw from the talent in our Sunbelt markets to grow their presence. It's really driven ultimately by a decision by these companies to more broadly distribute their workforce across the country. That's certainly true of the tech companies on the West Coast as well as the financial services companies in the Northeast. I think you're going to continue to see large-scale hubs in all of our markets across those industries. I think those will benefit places like Charlotte, like Atlanta, like Austin, like Tempe. There's that type of activity underway in each of those markets. No, that's helpful. Maybe just following up on acquisitions, and I don't know if I actually get an answer on this one, but are there any markets in particular where there's a little bit more of a priority to kind of enter? I think of the likes of Dallas, you had the Saint Ann Court loan. Is that a market that you view as one that definitely needs more exposure on this next round of kind of deployment? It is. Again, I would say, as we look across all of our markets and the fundamentals in them, we've got conviction to invest in any market where we operate today. Maybe less so Houston. Aside from that, I think the markets are all performing well, and we would deploy capital. From a strategic perspective, as we look at how the company's positioned today, we are, I'd say, have a bit of an outsized presence in Atlanta and Austin. Not surprising given the size and scale of those markets compared to some of our other markets. I do think in time it's a long-term goal, not necessarily a short-term goal, but a long-term goal to continue to enhance the geographic diversification of the company. I think you'll see us, hopefully in time, grow our presence in markets like Dallas, like Charlotte, like Nashville, Tampa, and certainly out in the Phoenix market as well. We are not going to, as I said, that's a long-term goal, and we are only going to make those investments when we feel like they meet our investment criteria as it relates to impacts to FFO, to FAD, how we are able to finance it, and impacts the leverage and liquidity. Again, some of these strategic considerations and enhancing our geographic diversification is one of those long-term goals. Very helpful. That's it for me. Thanks, all. Your next question comes from Michael Lewis with Truist Securities. Please go ahead. Great. Thank you. Some other office REITs are reporting good leasing volume, but their cash flow is suffering. You did not have as big an occupancy dip to kind of recover from, but could you talk about, is there anything in terms of timing of free rent or leasing concessions that might pressure the cash flow? Also, talk about kind of how the leasing concessions are trending in your markets. I know you got some questions about whether there could be rent spikes, but maybe you might see changes in concessions first, and I wonder if you are seeing that at all. Michael, I think there's a lot of different things at play. I do think that for us, as it relates to cash flow, you're seeing some of the, I think, the benefits of the work that we've done at Cousins really over the last 10 years. I think as it relates to our portfolio and some of the recycling that we've done, and most recently, if you go back to 2020 and 2021, we made a very intentional decision at Cousins to sell when the market was open $1.3 billion of our kind of lower quality, older vintage assets that were also the most capital-intensive and rotated into newer, higher quality assets. Today, we've got, I think, the youngest portfolio across the office sector. Ultimately, that comes with a lower CapEx profile. I think also some of the most attractive properties to lease and enabling us to drive better lease terms, kind of lower TIs and lower free rent. That was always part of our goal in building the portfolio that we have today. Trophy assets that benefit from the greatest demand and at the same time are able to be operated and run with the lowest CapEx profile. Okay. Great. Gregg mentioned when he talked about lease termination fee income that you initiated three-tenant move-outs. Is there a theme among those? Maybe explain what's going on there. I think the theme on a few of those that were initiated by us is fairly simple, which is we had customers that were looking for expansion or new space for them that did not quite match up with timing, but they wanted to be at our project—excuse me—timing relative to our expiration. For instance, at Hayden Ferry, we had a customer that was actually set to expire in a full floor later in 2025. We knew we had a prospect for that floor. We knew we needed to get control of the space earlier. We simply approached the existing expiring customer that we knew was going to move out, said, "Can we accelerate your expiration?" We were able to negotiate a fee to get control of the space earlier and essentially immediately backfill that space. The theme is when we identify opportunities where we can better our position, whether from a timing perspective, whether it's a rent roll-up, better credit, we are not afraid to approach existing customers and try and facilitate a change in control of that space. It's not unlike what we did last year with IBM and Meta. Okay. Got it. My last question, and maybe it's too early to ask this one. You guys have really low financial leverage, but the maturities you do have are going to be at low interest rates. I know the unsecured notes this year are in your guidance. You're a year out from Fifth Third Center and Colorado Tower. Those both have fixed interest rates below 3.5%. Is there anything at this early stage to talk about in the strategy or the pricing for refinancing those low-interest rate maturities? Yeah, Michael, good morning. It's Gregg. Yeah. I'm not going to provide specific guidance on kind of what we're going to do with those maturities, but we can talk kind of globally about what they mean for our P&L. We'll see where interest rates are when those two mortgage notes that you noted mature next year. We, as kind of the entire REIT industry, have been facing a headwind over the last year or two as everybody's had to refinance debt at higher rates. We have too. One, having lower leverage gives you less debt to refinance, so that's a positive from our perspective. Two, we've been able to, because of the organic growth that we've had, we talked about rolling up rents and positive same property growth and high leasing velocity. That stuff, at the end of the day, results in solid organic growth. Despite the headwinds of higher rates for us, the lower leverage and good organic growth has allowed us to grow FFO during this period. I think we've been one of the few office REITs out there that have been able to grow FFO in 2024 and have a midpoint of growth for FFO in 2025. Yeah, it's an issue. We've got a refinancing in our numbers this year, as I've said a couple of times, but we've been able to grow FFO despite that. I think it's just kind of a testament to the underlying organic growth that we've got embedded in this portfolio. Great. Thank you. Your next question comes from Peter Abramowitz with Jefferies. Please go ahead. Yes. Thank you very much. Just wondering if you could touch on specifically leasing requirements in your Charlotte portfolio and specifically progress on Fifth Third Center. Sure. This is Richard. Like I mentioned in my prepared remarks, we feel very confident in the supply and demand dynamics that are taking place in Charlotte, especially with really no new development activity happening from here in the near term, at least in South End. The deliveries are kind of at the tail end right now on anything in Uptown. For us, as we sit with our two assets that are underway in terms of redevelopment or certainly imminent at 550 South and Fifth Third Center, we think we are entering a great spot where we will fill a void left by a lack of new development. As a result, we're seeing very good activity and interest in Uptown. Nothing to report today, nothing imminent, but our positioning is very good, and we're very optimistic. Thanks, Richard. Then maybe one for Gregg. You did a fair amount of capital raising to fund the acquisitions in the fourth quarter of last year. I think on a weighted average cost of capital basis, it was somewhere in sort of the mid-sixes, maybe high sixes. Just curious, where do you kind of see your cost of debt and cost of equity today? If you did find opportunities, would you be comfortable issuing more equity where the stock is today? I'll answer that first question first. Unlikely, highly unlikely to issue stock at the price where it's trading today. The math doesn't work on the acquisition side. Remember, our business is a spread business. We've got to create a spread between our cost of capital and our use of capital. Based upon where cap rates are today, I think raising equity at this price makes that pretty much impossible. Unlikely to raise equity at this price. The two equity raises that we did in the fourth quarter last year were both, give or take, around $30 a share. At that equity price and at where cap rates were at that point in time, we could do that accretively. Although the acquisition market has thinned out a little bit and we've seen fewer trades for our assets, I think we'll get clarity as the year progresses. If it shakes out about where it was in the fourth quarter, I think, like I said earlier on the call, and as Colin said in his prepared remarks, we're going to have an opportunity to deploy new capital on an accretive leverage-neutral basis. We think the opportunity will reemerge as the year progresses. I think the balance sheet's in a position to allow us to do that. I think we're in a unique position in the office space. Again, as Colin said, I think we're the buyer of first choice for many sellers now because of the cost of capital advantage we have and the history we have of closing trades reliably. Got it. That's all for me. Thanks. Your next question comes from Brendan Lynch with Barclays. Please go ahead. Great. Thank you for taking my questions. You've been redeveloping assets for the past couple of years and improving the quality of the portfolio. At a high level, where do you see where you kind of stand in that process when looking at the portfolio as a whole? Good morning, Brendan. It's Colin. We're largely, I'd say, through that. Again, that decision was made in the early part of the pandemic, along with, as I said, recycling really the bottom 20% of the portfolio into ultimately acquisitions and development of kind of the top-tier assets. We also made an intentional decision to pull forward a lot of the redevelopment and repositioning work within the portfolio to do that at a time to minimize disruption when our customers were largely not there. If I had to look at it today, I'd say we're probably 75% of the way kind of through that work. There's still a handful of properties that, in time, just kind of more normal cadence that I can see us working on a project or so, a project or two a year. I think we're largely through it, and I'd put about a 75% number on it today. Great. Thanks. That's helpful. Maybe one for Gregg. The lease with Parsley Energy included a one-time mid-lease abatement. Can you just walk through the details of that? Yeah. I mean, it's as simple as I'd said. I mean, back when the original lease was negotiated, and then a follow-up amendment was done years ago. I think it was 2018 was when this was executed, so almost a decade ago. This two-and-a-half-month rent abatement was placed inside the lease for the first two-and-a-half months of 2025. On a GAAP basis, everything gets smoothed out. You don't notice it. On a cash basis, obviously, it ran through the numbers this past quarter. That's what I wanted to point out. I mean, some of the comments we've gotten on our same property performance at 2% is, "Hey, that's positive. Terrific, but a little lower than it's been. Is there anything unique going on?" There was something unique going on, and we wanted to point it out. Great. Makes sense. Brendan, let me just clarify my previous comment. When I say 75%, the vast majority of our portfolio is now in great shape and needs kind of no repositioning or redevelopment. When I mentioned kind of 75%, that's on the pool of assets that we had identified several years ago to reinvest. Again, it's just down to a handful of properties across the whole portfolio. It's really the portfolio of assets, and the quality of it has never been better at Cousins than it is today. Great. Very clear. Thank you. Thank you. There are no further questions at this time. Please proceed with any closing remarks. Thank you all for joining us this morning. We appreciate your time and interest in Cousins Properties, and we will look forward to hopefully seeing many of you at the upcoming investor conferences and ultimately at Nareit in June. Have a great day and a great weekend. Ladies and gentlemen, this concludes your conference call for today. We do thank you for participating and ask that you please disconnect your lines. Have a great day.