Peakstone Realty Trust

and welcome to Peakstone Realty Trust second quarter 2024 earnings and webcast conference call. At this time, all participants are in a listen-only mode. 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, Ms. Michaela Lynch, Senior Vice President, Corporate Finance and Strategy. Thank you, Ms. Lynch. You may begin.

Thank you. Good afternoon, and thank you for joining us for Peakstone Realty Trust's second 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 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 forward-looking statements to be covered by the applicable Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and is 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 could 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, and any subsequent quarterly reports 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, 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 normalized 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. Over the past several quarters, we've executed on our strategic plan by strengthening our balance sheet and optimizing our portfolio composition while accumulating a substantial cash balance to provide optionality. As a testament to these operational successes and our well-eased diversified portfolio, we are pleased to have successfully amended and extended our unsecured credit facility. This amendment is a key milestone that provides us with a solid foundation for growth, and increased flexibility to make industrial investments, which we believe will build long-term shareholder value over time. At a high level, this amendment reflects the bankrupt's endorsement of our business plan and does several important things for us. It pushes our revolver and 2025 term loan maturity out four years from closing to 2028. It lowers our borrowing costs and it provides us with increased flexibility to grow. Javier will provide additional details on the amendment along with pro forma balance sheet metrics in his later remarks. Turning to our portfolio, our high quality industrial and office segments continue to provide stability with a combined wealth of seven years, 99.5% economic occupancy, 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. Disposition of our other segment assets continued this quarter with the sale of one property located in Mechanicsburg, Pennsylvania, totaling approximately 57,000 square feet for $8.7 million. Importantly, for the first half of the year, other segment sales total approximately $58.2 million. In addition, We significantly advanced the sales of several other segment properties, and we will continue to progress dispositions in this segment for the balance of the year. This quarter, we continue to demonstrate our ability to achieve positive leasing activity and strong releasing spreads. In our industrial segment, we finalized the fair market rental rate increase and annual escalations for a five-year 818,000 square foot extension we executed and announced in the fourth quarter of 23 at our Samsonite property in Jacksonville, Florida. This extension takes effect December 1, 2024 and includes 3.75% annual rent escalations, resulting in a 28% gap and 7% cash releasing spread. Given the fair market rent was not finalized when this lease extension was executed, we previously recorded base rent for the extension period equal to the expiring rent, which was the floor value per the lease. Clearly, this is a solid, no-cost lease transaction that will generate further strong internal growth. In the office segment, a previously executed 7.7-year, 83,000-square-foot new lease with Spectrum commenced June 1st at our property in Largo, Florida. In the other segment, we executed a 305,000 square foot one year lease extension at an industrial property in Columbus, Ohio, at a 40% gap and 63% cash releasing spread, which will enhance the value of this asset. With that, I will turn the call over to Javier to review our financial results. Javier? Thanks, Mike.