Paramount Group, Inc.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Paramount Group fourth quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, February 20th, 2025. I will now turn the call over to Tom Hennessy, Vice President of Business Development and Congressional Relations.

Thank you, Operator, and good morning, everyone. Before we begin, I would like to point everyone to our fourth quarter 2024 earnings release and supplemental information which were released yesterday. Both can be found under the heading financial results in 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 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. A reconciliation of these measures to the most directly comparable GAAP measure is available in our fourth 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.

Good morning, everyone. Thank you for joining our call today. Yesterday, we released our fourth quarter results, reporting core FFO of 19 cents per share, bringing our total for the year to 80 cents per share, which is at the high end of our most recent guidance range. Looking ahead, we have initiated 2025 core FFO per share guidance with a range between 51 and 57 cents per share. along with the 2025 leasing guidance range between 800,000 and 1 million square feet. We will review our financial results and guidance in greater detail. In the fourth quarter, we leased approximately 109,000 square feet, bringing our full year total to 763,500 square feet leased. This volume is 3% ahead of last year, and near the midpoint of our original guidance for the year, though it trails our revised target from November. In New York, we leased approximately 57,000 square feet in the fourth quarter. While our quarterly leasing in New York did not meet the revised targets we had set for ourselves in November, the pipeline remains robust. Peter will cover this in more detail shortly. We are seeing strong interest from a wide array of tenants, particularly in the financial services and legal sectors. This demand reaffirms our conviction in the long-term appeal of our high-quality, strategically located space in New York's core submarkets. The flight to quality remains a consistent theme as we begin the new year with talent increasingly focused on premier buildings in core locations. Our portfolio is benefiting from this trend, particularly along Sixth Avenue, where the Paramount Club continues to be a significant differentiator in the market. This amenity has proven transformative, not just in attracting new tenants, but in fostering a vibrant workplace community that enhances tenant satisfaction and retention. In San Francisco, while the market continues to lag New York, we see encouraging signs. The November election results potentially signal the beginning of a political shift, and in our view, are a clear indication of reduced patience from the electorate. In our portfolio this quarter, we leased approximately 51,000 square feet, bringing our full year total to approximately 339,000 square feet leased. Our 2024 leasing activity in San Francisco was over 40% higher compared to last year. We are definitely seeing progress as the market continues to improve. The majority of our leasing activity in San Francisco remains focused on renewals and shorter terms. The flight to quality is also evident in San Francisco's position as a hub for tech innovation and its leadership in AI-focused venture capital funding underscore its potential for recovery. We are confident our portfolio is well-suited to capitalize on these trends. Moving to our capital allocation activities, subsequent to the end of the year, we closed the sale of a 45% interest in 903rd Avenue. raising approximately $95 million in net proceeds. The transaction valued the property at $210 million or $354 per square foot. We continue to own the remaining 55% interest, and we will continue to lease and manage the property. This transaction underscores the underappreciated value of our assets in the public market, highlighting the difference between the underlying long-term value of our real estate compared to levels at which our stock currently trades. The transaction also further strengthens our balance sheet, offering enhanced flexibility in our capital allocation strategy. We ended the year with approximately $461,400,000 in cash and restricted cash, excluding non-core assets, and before the impact of the partial sale of 903rd Avenue. Further adjusting for the sale of 903rd Avenue would bring our cash and restricted cash to $546,500,000. As we experienced with our sale of 903rd, the broader real estate transaction market continues to exhibit signs of resurgence. We are seeing an uptick in potential deals which could signal a more active market in the coming year. The persistent gap between buyer and seller expectations also continues to narrow, potentially unlocking more opportunities. In this evolving landscape, we remain committed to our disciplined approach to capital allocation. Our strong financial position enables us to act swiftly on attractive opportunities. particularly those involving strategic partnerships where we can leverage our market expertise. Lastly, I'm particularly proud to highlight that Paramount achieved a Grasby five-star rating for the sixth consecutive year in 2024, earning sector leader status in the Office America category. This recognition, which places us among the top performers out of over 2,200 global participants, demonstrates our unwavering commitment to environmental stewardship and sustainable operations. Our score outperformed the GRASB average by 21%, and we achieved an A rating for public disclosure, reflecting our dedication to the transparency and stakeholder engagement. These achievements underscore that our focus on sustainability isn't just about meeting current standards. It's about setting them. This leadership position in ESG practices increasingly resonates with our tenants and investors who prioritize partnerships with environmentally responsible landlords. With that, I'll hand over to Peter.