Peakstone Realty Trust

A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michaela Lynch. Thank you. You may begin.

Thank you. Good afternoon, and thank you for joining us for Peakstone Realty Trust's first quarter 2024 earnings call and webcast. Earlier today, we posted an earnings release, supplemental, and updated investor presentation to the investors page on our website at www.pkst.com. Please reach out to our investor relations team at ir.pkst.com with any questions. Please note that the use of forward-looking statements by the company on this webcast. Statements made on this call may include statements which are not historical facts, and are considered forward-looking. The company intends for all these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are making these statements for purposes of complying with those Safe Harbor provisions. Furthermore, the forward-looking statements reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances that may cause actual results to differ significantly than those expressed in any forward-looking statement and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in our most recent annual report on Form 10-K or quarterly report on Form 10-Q filed with the SEC. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors of new information, data or methods, future events, or other changes after the date of this call, except as required by applicable law. Additionally, on this call, the company may refer to certain non-GAAP financial measures, such as funds from operations, adjusted funds from operations, EBITDA RE and adjusted EBITDA RE. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers in the company's filings with the SEC. On the call today are Mike Escalante, CEO and President, and Javier Batar, CFO. With that, I'll hand the call over to Mike.

Good afternoon and thank you for joining our call today. April 13th was our one-year anniversary as a listed company. As we mark this occasion, I am proud of the progress we have made executing on our strategic plan aimed at bolstering our balance sheet and optimizing our portfolio to further align with our long-term growth objectives. In alignment with this plan, during the first quarter, we progressed the elimination of our other segment driven by effective disposition and leasing strategies and sustainable tenant relationships. At the close of the quarter, Our other segment now only accounts for 13% of our ABR in our portfolio. Our high quality industrial and office segments continue to provide stability with a combined wall of 7.3 years. Minimal near-term rollover in the next three years representing 7.5% of the ABR for these two segments. Significant credit tenancy and newer buildings with minimal capital requirements. Moving on to leasing activity, In this evolving market environment, we had strong lease execution securing three lease extensions in our other segment, which sets the stage for successful sales of these assets. These leasing accomplishments in our non-core segment underscore our team's agility, market acumen, and the potential for further success within our core portfolio. We secured lease extensions totaling approximately 241,000 square feet with minimal or no leasing costs and strong weighted average gap and cash-free leasing spreads of 27% and 13% respectively. These leases consisted of a five-year, 81,000-square-foot lease extension with MGM in Las Vegas, Nevada with a 33% gap and 26% cash-free leasing spread. A five-year, 99,000-square-foot lease extension with Northrop Grumman in Beaver Creek, Ohio with a 23% gap and 5% cash releasing spread. And a five-year, 61,000 square foot lease extension with Owens Corning in Concord, North Carolina, with a 17% gap and 5% cash releasing spread. In addition to this leasing activity during the quarter, our previously executed 15-year, 100,000 square foot lease commenced at our Nashville, Tennessee office segment property. Turning now to our dispositions. Again, our team's experience, industry relationships, and proactive tenant engagement initiatives drove the successful dispositions of four assets in the quarter for nearly $80 million. These sales meaningfully reduced the size of our other segment and improved our overall portfolio metrics. In the other segment, we sold two non-stabilized office properties, totaling 389,000 square feet. The properties were sold for a total of $23.4 million. We also sold one manufacturing property, totaling 660,000 square feet. This property was sold to the existing tenant for $26.1 million, pursuant to a fixed price purchase option. In our office segment, proactive communication and collaboration with Corteva, the tenant of our 184,000 square foot property located in Johnston, Iowa, resulted in the sale of this building to Corteva for $30 million. At the time of the sale, the lease had 2.8 years remaining. To facilitate the closing, we issued a one-year note for one half of the disposition price. I am pleased with the disposition and leasing activity in the quarter. Overall, our innovative and experienced team continues to be a differentiator. With that, I will turn the call over to Javier to review our financial results. Javier?