Paramount Group, Inc.

for 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, November 2nd, 2023. I will now turn the call over to Tom Hennessy, Vice President of Business Development and Investor Relations. Please go ahead, sir.

Thank you, Operator, and good morning, everyone. Before we begin, I would like to point everyone to our third quarter 2023 earnings release and supplemental information, which were released yesterday. Both can be found under the heading Financial Results in the Investors section of the Paramount Group website at www.pgre.com. Some of our comments will be forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of words such as will, expect, should, or other similar phrases, are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial conditions. During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. Our reconciliation of these measures to the most directly comparable GAAP measure is available in our third quarter 2023 earnings release and our supplemental information. Hosting the call today, we have Mr. Albert Baylor, Chairman, Chief Executive Officer and President of the company. Wilbur Pays, Chief Operating Officer, Chief Financial Officer and Treasurer. Peter Brindley, Executive Vice President and Head of Real Estate. Management will provide some opening remarks and we will then open the call to questions. With that, I will turn the call over to Albert.

Thank you, Tom. And thank you all for joining us today. Yesterday, we reported core FFO of 22 cents per share for the third quarter, which was on line with consensus estimates. In the quarter, we leased over 298,000 square feet, which was 123% higher than our quarterly average during the first half of the year. This activity was driven by robust leasing in both of our markets, New York and San Francisco. As you may recall, while our leasing results were trailing the midpoint of our guidance at the end of the first half of the year, we did not adjust it downward as we believed we would make up lost ground during the third quarter, and that's exactly what we did. Our year-to-date leasing velocity now sits at about 566,000 square feet, putting us squarely at the 750,000 square foot midpoint that we established at the beginning of the year. Notwithstanding that, we expect to achieve the leasing goal that we set earlier. We do not expect to do the same as it relates to our occupancy goal. We had some unexpected surprises in 2023 in form the regional bank crisis and a few lease terminations during the year, which has forced us to reduce the robust leased occupancy expectations we hope to achieve. Our new range calls for leased occupancy between 87 and 88.6%. Wilbur will provide further details on our financial results and guidance later. continue to be in a period of economic uncertainty. While headline inflation is moderating, it is still ahead of the Fed's target. Low unemployment and strong payroll data further complicates this dynamic. Add to this geopolitical issues, and you can see why things continue to remain in flux. Equity markets have sold off as interest rates have moved higher, and while most economists have been wrong thus far about the timing of the recession, I do not believe they are wrong altogether. Higher rates and a higher for longer narrative has and will continue to stress valuations. And the dearth of liquidity in the market will compound the problem. That said, we have built the company to withstand economic downturns, and this time will be no different. We have a fortress balance sheet with ample liquidity and debt that is non-recourse by design. Our portfolio continues to be leased well above market levels to a roster of blue chip tenants, and we continue to capture more than our fair share of leasing in our markets. as demonstrated by our leasing results. Turning to our operating businesses. Our New York portfolio has remained stable at 90.4% leased. During the third quarter, we leased almost 185,000 square feet in New York, or approximately 106% higher than the quarterly average during the first half of the year. New York has led the way in enforcing in-person work mandates, resulting in increased foot traffic and increased office utilization. Last quarter, I touched upon our highly talked about amenity center at 13016 Avenue, which will serve all the tenants of the Paramount campus. This 30,000 square foot amenity center is dubbed the Paramount Club. and is set to open in the second quarter of 2024. Peter will provide additional color on this, including the impact it has had in our pursuit of inviting companies to join the Paramount campus. During the third quarter, we leased over 113,000 square feet in San Francisco. Just like in New York, our San Francisco leasing not only eclipsed the quarterly average during the first half of the year, by 155%, and it also represents the highest quarterly leasing volume we have had in San Francisco since the fourth quarter of 2021. Leading San Francisco-based companies continue to announce and enforce their return to office plans as concerns mount regarding productivity of remote workers. This has resulted in a steadily improving utilization figures across the San Francisco market and in our own portfolio post-Labor Day. This trend, together with the changing political landscape driven by voter awareness about the challenges facing the city, will undoubtedly support improved leasing activity going forward. Dividing to the transaction market, activity remains subdued due to elevated interest rates volatile equity markets, and wide bid-ask spreads. With no debt financing readily available, the limited activity to date has been driven by smaller deals and all cash buyers. To date, there have been very few high-quality assets brought to market, but there are signs of capitulation in the market. We will remain disciplined in our approach and deploy capital if warranted only in an asset light approach. In closing, let me emphasize that our approach to business is rooted in a long term perspective. Our Class A buildings and the coastal gateway markets in which we operate have demonstrated resilience, consistently evolving and growing over decades and numerous economic cycles. With that, I will turn the call to Peter.