Paramount Group, Inc.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Paramount Group first quarter 2024 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, May 2, 2024. I will now turn the call over to Tom Hennessey, Vice President of Business Development and Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning, everyone. Before we begin, I would like to point everyone to our first quarter 2024 earnings release and the supplemental information which were released yesterday. Both can be found under the heading financial results, the investor 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 different 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. A reconciliation of these measures, the most directly comparable GAAP measure, is available in our first quarter 2024 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, and Peter Brindley, Executive Vice President, 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. Though it hasn't been long since we last spoke, we are excited to share our progress as we are off to a strong start in 2024. Yesterday, we reported core FFO of 22 cents per share for the first quarter, which was one cent above consensus. From an operational standpoint, we had a terrific quarter of leasing as well. We carried the momentum we had in the fourth quarter of 2023 into the first quarter of 2024 and executed leases for about 277,000 square feet. To put it further in perspective, this represents our strongest first quarter of leasing since 2019. We continue to make progress on our availability in the Sixth Avenue corridor, both 13016 and 1325.6 saw an uptick in leased occupancy. While 1325.6 is full by any measure at 96.8% leased, 13016 saw the most meaningful increase this quarter with a 420 basis point increase in leased occupancy. This, of course, was driven by the new 74,000 square foot lease with Citizens Bank. We welcome Citizens Bank to the Paramount portfolio and are thrilled that we continue to add to our strong, high-quality tenant roster. The leasing activity in New York continues to improve, and we continue to pick up more than our fair share of that activity in the market. The leases we signed during the quarter are a testament to the strength of our Class A assets and the ability to outperform the market in all different types of operating environments. Our class leading buildings situated in prime locations continue to attract robust tenant demands. We are encouraged by the elevated level of leasing activity and remain confident in our ability to leverage the quality and strategic positioning of our portfolio to execute on our availabilities. Today, we also announced the official opening of Paramount Club at 13016 Avenue. Paramount Club is a members-only club created exclusively for the tenants across our New York portfolio. This unique offering has undoubtedly aided in our ability to attract and retain top-tier office tenants by providing an exclusive on-site suite of amenities that enhances the work experience for our clients and their employees. Paramount Club is quickly becoming a key differentiator in the market that will continue to drive leasing activity at 1301 and throughout our broader New York office portfolio. Adding to the excitement of carefully curated offerings to our tenants, the highly anticipated Michelin star rated Din Tai Fung is slated to open this quarter under the iconic glass cube in the plaza of our headquarters at 1633 Broadway. Tenants and the broader New York market are abuzz about the opening, and we couldn't be happier. While certainly not at the same pace as New York, the market in San Francisco is starting to become more vibrant. The good news is that our assets are modernized, amenitized, and centrally located. And that will carry the day in attracting high-quality tenants. During the quarter, we signed approximately 160,000 square feet of leases, including 138,000 square foot short-term extension with KPMG at 55 2nd Street. Peter will provide additional color on this and our leasing pipeline. As we touched on last call during the quarter, we modified and extended the existing mortgage loan at One Market Plaza in San Francisco. The previous $975 million loan was extended by three years and was reduced to $850 million following 125 million pay down by the joint venture. This loan modification is a terrific result and a testament to the quality of the asset and the commitment of the sponsorship. This quarter, we reached a resolution with the lending group on 60 Wall Street. The modified and extended loan is now set to mature in May, 2029. While Wilbur will discuss the financing in greater detail, The extended term allows us and our partners appropriate runway to execute our business plan. 60 wall will be redeveloped to today's standards and will redefine the standard of redeveloped assets in the financial district. The fully redeveloped assets, which has been designed by Korn Patterson Fox, will have a new glass facade on the podium floors that will replace the existing facade and allow for ample natural light into the base of the building. It will also feature a new grand staircase and a 100-foot high vertical green wall. The redevelopment is underway, and I encourage you to check out our website for additional information regarding the project. Shifting to the broader transaction market, the environment remains muted, though the volume of deals coming to market has begun to pick up. We still believe the environment will become more dynamic in the year ahead as wide bid-ask spreads that have kept many prospective buyers and sellers on the sidelines begin to narrow. Additionally, we foresee an increase in distressed assets coming to the market, which could present compelling acquisition opportunities as elevated interest rates may be around a bit longer than expected. We will remain poised and judicious in allocating capital towards external growth opportunities and only together with third parties, leveraging our deep market expertise and disciplined investment approach. Turning to sustainability, we are proud to announce that we have been awarded the 2024 Energy Star Partner of the Year Award from the EPA and the Department of Energy for the third consecutive year. This is a testament to our commitment to sustainability and our efforts to achieve energy star labels across 100% of our office portfolio, totaling 11.3 million square feet. Executing on initiatives that reduce our environmental impact and operating costs is core to our mission as a responsible real estate owner. Our participation in the Energy Star program exemplifies this commitment, benefiting both our company and the tenants who collaborate with us on these sustainability efforts. ESG principles are of paramount importance to us and our tenant base. Upholding strong ESG practices will remain a key strategic priority as we continue to create long-term value for our shareholders and elevate the tenant experience across our portfolio. In closing, the performance of this quarter gets us excited about 2024 and confident in executing on our strategy and the direction we are heading. Our Class A buildings and the coastal gateway markets in which we operate are resilient. With that, I will turn the call over to Peter.