Q1 2025 Piedmont Office Realty Trust Inc Earnings Call
Speaker Change: [music].
Greetings.
Speaker Change: Welcome to the Piedmont Office Realty Trust first quarter 2025 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
Speaker Change: It should require operator assistance during the conference. Please press Star zero on your telephone keypad. Please note. This conference is being recorded.
Laura Moon: I will now turn the conference over to your host Laura Moon, you may begin.
Laura Moon: Thank you operator, and good morning, everyone. We appreciate you joining us today for Piedmont's first quarter 2025 earnings Conference call last night, we filed our 10-Q and an 8-K that includes our earnings release and our unaudited supplemental information for the first quarter of 2025. It is available for your review on our website at Piedmont.
Laura Moon: <unk> dot com under the Investor Relations section.
Laura Moon: During this call you will hear from senior officers at Piedmont their prepared remarks, followed by answers to your questions will contain forward looking statements as defined in the private Securities Litigation Reform Act of 1995.
Laura Moon: These forward looking statements address matters, which are subject to risks and uncertainties and therefore actual results may differ from those we anticipate and discuss today the risks and uncertainties. These forward looking statements are discussed in our press release as well as our SEC filings. We encourage everyone to review the more detailed discussion related to risks associated with forward looking.
Laura Moon: Statements interest SEC filings examples of forward looking statements include those related to Piedmont future revenues and operating income dividends and financial guidance future financing leasing and investment activity and the impacts of this activity on the company's financial and operational results you should not place any undue reliance on any of these forward looking.
Laura Moon: Statements and these statements are based upon the information and estimates we have reviewed as of the date. The statements were made also on today's call Representatives of the company may refer to certain non-GAAP financial measures, such as <unk> or F. L. A F F O and same store NOI the definitions and reconciliations of these non-GAAP measures are contained.
Laura Moon: In the earnings release, and supplemental financial information, which were filed last night.
Speaker Change: At this time, our president and Chief Executive Officer, Brent Smith will provide some opening comments regarding first quarter 2025 operating results Brian.
Speaker Change: Thanks, Laura good morning, everyone and thank you for joining us today as we review our first quarter of 2025 results.
Speaker Change: In addition to Laura on the line with me. This morning are George Wells, Our Chief operating Officer, Chris Coleman, our EVP of investments and Sherry Rexroad, Our Chief Financial Officer, who will have the usual for our company and of our management team available to answer your questions as well.
Speaker Change: We are very pleased with our solid start to 2025, completing approximately 363000 square feet of total leasing during the quarter with roughly half related to new tenant leases.
Speaker Change: The overall volume is especially encouraging given that the first quarter is typically the slowest quarter of any given year and the leases executed were spread throughout the portfolio with almost every market executing at least one lease for 10000 square feet or greater.
Speaker Change: Further leases executed during the quarter reflected double digit rental rate roll ups on both a cash and GAAP basis.
Speaker Change: And Additionally, as we disclosed on last quarter's call. We completed our last bit of required refinancing activity during the first quarter, including paying off the $250 million term loan that was scheduled to mature in March and extending our $600 million line of credit.
Speaker Change: As for broader market commentary the occupier market recovery appears to be continuing to progress as more national employers such as J P. Morgan continue to change their mandate to five days a week, adding.
Speaker Change: Adding to a chorus of large office users like Amazon.
Speaker Change: Realizing the benefits of more in office interaction.
Speaker Change: In many cases these users have discovered they don't have enough space to accomplish this shift and are exploring expansion options.
George Wells: We have seen in our own portfolio as George will touch on in a moment.
George Wells: Against the strengthening backdrop, however, macroeconomic uncertainty emerge during Q1, causing national gross leasing volume to slow moderately after reaching post pandemic highs in late 2024.
George Wells: Net absorption turned negative again, driven in large part by federal lease terminations, mostly impacting D C Metro.
George Wells: And I'll be it still reflecting a 60% improvement from the first quarter of 2024.
George Wells: Also a positive new development deliveries on a quarterly basis fell to their lowest level in over a decade and groundbreaking continues to be scarce, but less than 1 million square feet started during the first quarter.
George Wells: As we've seen in our operating markets. The lack of renovations from capital starved owners suffering from tendency losses and debt related issues benefits well capitalized owners like Piedmont, there's a flight to quality intensifies.
George Wells: While these macro factors should continue to benefit piedmont's ability to lease space. We're mindful of the current economic volatility and the uncertainty it brings.
George Wells: That said and certainly bearing a recession. We believe we are on track to meet or exceed our 2025 goals.
George Wells: Over the past 18 months Piedmont has leased over three 6 million square feet or approximately 24% of its operating portfolio with an additional 1.1 to one 2 million square feet of leasing budget for the remainder of 2025.
George Wells: Leasing momentum remains strong, including over 275000 square feet of leases signed during the month of April.
George Wells: We are experiencing increased demand for our buildings from full floor and larger tenancy, particularly in Dallas, Atlanta and Minneapolis.
George Wells: As a result of our recent leasing success, our backlog at year end of $46 million is now $67 million of annualized revenue that are from leases yet to commence or in their free rent period.
George Wells: Furthermore, because of the unprecedented level of leasing the gap between leased percentage and economic lease percentage, where cash paying tendency is at its widest in over a decade at 10, 6%.
George Wells: We expect Piedmont leasing success to maintain its current momentum as our legal stage pipeline has faced minimal disruption despite broader economic uncertainties.
George Wells: If leasing activity continues as anticipated.
George Wells: Piedmont maintains its current dividend payment I haven't seen any dispositions, which are difficult to forecast in this uncertain environment. The company would need to increase its leverage to fund this future growth.
Speaker Change: We believe that taking on additional leverage would not be prudent as it could impede long term growth and constrained our liquidity and access to capital.
Speaker Change: Due to this unique period in our corporate lifecycle, where Piedmont is experiencing significant capital outlay to fund tenant improvements and leasing commissions.
Speaker Change: While simultaneously, having a sizeable percentage of our portfolio not paying cash rents.
Speaker Change: Management and the board made the decision to suspend the dividend.
Speaker Change: This decision aims to fund accretive long term growth and retain a larger portion of the company's earnings to do so which are lowest cost of capital.
Speaker Change: Additionally, we can utilize any remaining retained earnings to reduce leverage on the balance sheet and enhance our debt metrics.
Speaker Change: Together suspending the dividend and subsequent reduction in borrowings is expected to result in up to one penny of accretion in 2025.
Speaker Change: These actions will position Piedmont with a stronger balance sheet and a clear path to earnings growth in 2026, when the leases in process commence.
In summary, we believe the action to suspend the dividend will be accretive for shareholders in the medium and long term as we deploy our retained earnings generating an average unlevered return in excess of 25% on this invested leasing capital.
Speaker Change: Our capital is extremely precious resource that will be best used to fund growth by leasing our unique modernized hospitality infused properties and were experiencing record levels of tenant interest across both our operating and out of service portfolios.
Speaker Change: The market's demand for our assets remains at record levels in terms of tours and proposal activity, including approximately 300000 square feet of proposals in the legal stage for our out of service portfolio.
Speaker Change: I'll now hand, the call over to George who will go into more details on our leasing pipeline in first quarter operational results.
Speaker Change: George.
Brent Smith: Thanks, Brent Piedmont's premium office space continues to attract and retain customers that value a modern highly amortize workplace environment.
Brent Smith: Waiting that special place, it's more than just renovating a projects common areas. It's also about balancing impactful design with a range of purposeful social spaces.
Brent Smith: During the first quarter, our Galleria 600 lobby rejuvenation was awarded the best So special projects Award and the International Interior design associations, Georgia chapter our market, leading place, making efforts are being recognized and are contributing to consistent positive quarterly results.
Brent Smith: During the first quarter, we completed 57 transactions for approximately 363000 square feet of total overall volume well on track towards our overall goal of one 5 million square feet and evenly split between new deal and renewal activity.
Brent Smith: Regarding new deal transactions, approximately 80000 square feet commences in the first half of 2025 and 100000 square feet commences in the first half of 2026 with an overall new volume delivering a weighted average lease term of 10 years.
Brent Smith: Expansions exceeded contractions for the third straight quarter, a clear sign of more in the office with dental.
Brent Smith: Our trailing 12 month retention came in at 67% lease economics were very favorable with an approximately 10% and 19% roll up or increase in rents for the quarter on the cash and accrual basis, respectively.
Brent Smith: Our leasing capital spend of $6 69 per square foot was slightly elevated when compared with the past several quarters that several law firm deals were completed however, this translated into higher than average rental rates near $47 per square foot, which compared with $38 per square foot in 2023.
Brent Smith: Sublease availability continues to hover around 5% with only 10000 square feet expiring in 2025.
Brent Smith: Atlanta was our most active segment this quarter closing on 12 deals for 122000 square feet or a third of the company's overall volume with eight new transactions with 99000 square feet completed at a cost of three Submarkets, which consists of two infill locations in central perimeter and gallery of Cumberland and the most vibrant.
Brent Smith: Urban Submarket in Atlanta, and all of our two trophy towers Midtown.
Brent Smith: Most notable our local team Vanity law firm for 30000 square feet at 999 Peachtree for a 14 year term and is the first lease or step in accomplishing our goal of quickly returning the eversheds space, which sits prominently in the upper portion of the tower and expires in the second quarter of 2026. This.
Brent Smith: Transaction also achieved a new rental rate high starting at $55 per square foot substantially higher than the expiring lease rate of approximately $39 per square foot.
Brent Smith: We're bullish about back filling this block over the near term is premium quality space in Midtown is scarce and our pipeline is quite active which should translate into strong rental rate roll ups as we re tenant the space also at 999 Peachtree in existing law firm doubled its footprint to accommodate internal growth and more in office attendance it well now.
Brent Smith: Occupy two full floors.
Brent Smith: Elsewhere in Midtown the Midtown improvement district announced that it has entered a contract to purchase a prime for acre undeveloped site on 14th Street, which is adjacent to our living to ADP Street Skyline defining tower to create a permanent signature public space that would be the hub for arts and cultural experiences that are uniquely Atlanta.
Brent Smith: We're excited about the news that this would provide our 11 80 customers with unparalleled views forever and direct access to the park, removing one of the most attractive the volatile sites in Midtown and adding value to our investment.
Brent Smith: Orlando garnered the second most activity in our portfolio are captured and 23% of the overall volume, including our largest renewal this quarter Orange County, a double a minus S&P rated government agency renewed its entire 50000 square foot block downtown at the exchange or most recently transformed tower they continuous.
Brent Smith: To hit new top of the market rental rate hike.
Brent Smith: Like to remind everyone that eight 6% of our government ALR exposure relates to state or local government entities, and only 0.2% relates to GSE or federal agencies.
Brent Smith: With regards to the New York City lease at 60 broad we remain confident and extended the majority of its lease and anticipate a yearend amendment execution.
Brent Smith: Back to Orlando are all building headquarters lease at 500, Onewest Church with travel Leisure was awarded Costar is 2025 impact award reinforcing downtowns vitality and effectiveness in attracting high quality tenants.
Brent Smith: In Dallas the most notable news arrived at the first quarter in April our local team executed a 12 year lease with a global insurance broker at three gallery office to over 93000 square feet that largely Backfields Ryan space and is scheduled to expire in the second quarter.
Brent Smith: The tenants like the Galleria bricks exceptionally accessible and central location to accommodate its merger and consolidation plan.
Brent Smith: And that's been as projected for May of 2026 and.
Brent Smith: And we're achieving $55 per square foot rates at the SaaS at the highest in the lower Tollway Submarkets.
Brent Smith: Coming back to the overall portfolio, we're cautiously optimistic about our near term leasing prospects. Our leasing pipeline is strong with approximately 750000 square feet executed or an illegal stage largely for current vacant space and above our total volume quarterly norm outstanding proposal stand at 3 million square.
Brent Smith: Fee for both our operating and are out of service portfolios higher than the trailing 12 months.
Brent Smith: Our supplemental report shows the manageable, 5% of those square feet expire for the remainder of this year, assuming there's no material surprise with the U S economy, we remain comfortable in achieving our previously released year end lease percentage guidance of 89% to 90%.
Chris Coleman: I'll now turn the call over to Chris called me for his comments on the investment activity Chris.
Chris Coleman: Thanks, George I will just provide a very brief update.
Chris Coleman: Last quarter, we reported that we were in advanced negotiations for the disposition of two small non core assets and I'm pleased to report that one has closed and the other is expected to close later this quarter.
Chris Coleman: Combined these two deals will generate approximately $35 million in gross proceeds.
Chris Coleman: We have another two to three assets that are currently being marketed but it is too early to comment on specifics or speculate on timing.
Chris Coleman: On the acquisitions front, we remain engaged in each of our key markets and continue to think creatively about ways to leverage our operating platform, while conserving our capital resources.
Chris Coleman: With that I'll pass it on to Sherry to cover our financial results Sherri.
Sherri: Thank you Chris.
Speaker Change: Well, we won't be discussing some of this quarters financial highlights today. Please review the entire earnings release and the accompanying supplemental financial information like her filed yesterday for a markedly eight town.
Speaker Change: Core <unk> per diluted share for the first quarter of 2025 was 36 years versus 39 cents per diluted share for the first quarter of 2020 for approximately a penny of the decrease is gauge your increasing interest extended as well.
Speaker Change: So at least an 18 and Kenny have in the past 12 months with the remaining decrease attributable to lower reported rental income due to the south two properties as well as downtime associated with the exploration of a few large leases over the last 12 months.
Speaker Change: So at least with travel and leisure and Orlando will close in the fourth quarter and provide approximately $5.7 million of additional annualized rate, that's 1% of ally or one third of our executed on unconvinced feature rapidly.
Speaker Change: I thought that was generated during the first quarter of 2020 is approximately $23 5 million.
Speaker Change: In line with the last several quarters when Capex returned to more normalized levels trying to line actually wrapped up several major building redevelopment projects around yeah.
Speaker Change: Turning to the balance sheet, we cover the Q1 refinancing activity that Brent mentioned and detailed on our last call. So I won't go into that particular candidate.
Speaker Change: Rather just highlight that we currently have no final debt maturities until 2028.
Speaker Change: Approximately $500 million of availability under our revolving line of credit.
Speaker Change: Based on the times forward yield curve, we expect all of our unsecured debt maturing for the rest of this decade will be refinanced at lower interest rates.
Speaker Change: Must be a tailwind to SSR kirshner grounded.
Speaker Change: At this time I'd like to affirm our 2025 annual core <unk> guidance in the range of $1 38 to 144 per diluted share with no material changes to our previously published assumption.
Speaker Change: Based on the timing of when certain leases are scheduled to commence we currently anticipate core at that though we'll get that back over the next two quarters and then in praise in Q4 as some larger recently executed leases.
Speaker Change: Such as the travel and leisure lease in Orlando.
Speaker Change: With NOI continuing to improve in 2026.
Speaker Change: Please refer to page 26 of the supplemental information filed last night for details of major leases that have not yet commenced or are currently in abatement.
Speaker Change: As of March 31, 2025, the company had one 9 million square feet of executed leases yet to commence or under.
Speaker Change: This future cash flow is testament to the leasing success of the team.
Speaker Change: We will fuel future earnings growth, although it does demand additional capital spend as Brian outlined.
Speaker Change: With that I will turn the call evident brown for closing comments right.
Speaker Change: Thank you George Chris and Sherry.
Speaker Change: We here at Piedmont remained laser focused on our core business designing leasing and managing best in class work environment. We believe that the recent investments that we've made in our portfolio combined with our customer centric place, making mindset continue to set us apart in the office sector, and we will continue to garner more than.
Speaker Change: Our fair share of leasing market.
Speaker Change: We will be selective with capital deployment and concentrate our resources on driving lease percentage and increasing rental rate, which will ultimately result in episode and cash flow growth.
Speaker Change: With that I will now ask the operator to provide our listeners with instructions on how they can submit their questions operator.
Speaker Change: Thank you at.
Speaker Change: At this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions. Once again, please press star one if you have a question or comment.
Speaker Change: Yeah.
Speaker Change: Our first question comes from Bill in a N ski with Green Street. Please proceed.
Hi, guys.
Speaker Change: Thanks for taking the question just wanted to touch on sort of the leasing pipeline and decision to sort of keep guidance thinking.
Speaker Change: You know honestly.
Speaker Change: We've seen so far to date in April.
Speaker Change: Positive commentary on sort of the leasing pipeline in touring activity.
Speaker Change: Sounds like you guys are on track to sort of exceed some of the leasing targets that you guys outlined in guidance or reaffirmed guidance I should say is I'm. Just curious sort of is there some conservatism baked in given heightened macro uncertainty today.
Brent Smith: I know this is Brent I appreciate you joining us this morning.
Brent Smith: Good question.
Brent Smith: Jumping into it and the leasing pipeline as we noted in the earnings release very strong at roughly 750000 as we in total and as we talked about 275.
Brent Smith: And in the month of April the remaining portion we would expect to be executed.
Brent Smith: Executed.
Brent Smith: And the next call it two to four.
Brent Smith: Four months or so, but overall good momentum behind that George alluded to our pipeline for tour activity and overall totals are at record levels over 3 million square feet.
Brent Smith: But as we all know it takes a long time from lead to construction to thank you our commitment and that is a free rent period cash paying rent.
Speaker Change: So while we have a strong leasing pipeline I wouldn't imagine it impact guidance for 2025.
Brent Smith: Certainly would continue to bolster growth for 2026.
Brent Smith: You know we have about one one to one 2 million square feet to accomplish post the first quarter and we've already done a significant number of that already in the month of April.
Brent Smith: Also backed out in New York City lease, which is over 300000 square feet given what we've got remaining in the pipeline. It is potentially possible that we would accomplish our leasing goals some time around late summer.
Speaker Change: Estimate yes.
Speaker Change: Our economy holds up and our real estate pipeline holds up as well, which we've not easier.
So you're correct. It is conceivable that if the strength in the markets hold true that on the second quarter's earnings call. We may revise our leasing volume guidance for the year.
Speaker Change: Digitally 200000 square feet or more depending on what we continue to accomplish on ESI.
Speaker Change: We are cautious just given how easily raising a lot of uncertainty in the market, but again as I noted we have Nokia deteriorating and we are still seeing large users I E. The backfill tenant Orion, which we executed in the month of April for about 95000 square feet.
Speaker Change: Our Dallas Galleria building.
Speaker Change: We're just not seeing that right now labor, although we'll revisit that in the second quarter. When we have just a little more clarity around that pipeline and more clarity around the impact of the uncertainty in the market, but we still remain very cautiously optimistic that that would be a.
Speaker Change: Oh, that's great details, but I appreciate that I guess, just one more for me I mean, obviously, you know historically wide gap between leased percentage and economic lease percentage of the boiler today as you guys alluded to in your prepared remarks. So I guess are you able to help sort of frame. When you think you can get back to.
Speaker Change: I think the historical spread was closer to 500 basis points versus over 1000 basis points today on when do you expect that gap to close that largely to 2060, then or do you expect that sort of close over the next few years as we should start to convince you got yourself frame like the timeline on when that should largely.
Speaker Change: Largely compressed.
Speaker Change: Yes.
Speaker Change: So the suspension of the dividend is going to provide approximately $60 million of additional cash flow annually retained within the company.
Speaker Change: And given that we are going to have a partial year of suspension of this year. In 2025. Those retained earnings are going to be mainly earmarked for internal growth.
Speaker Change: Continuing the leasing momentum and we certainly don't want the team to book this move downhill after after leases.
Speaker Change: So that will be earmarked for the internal growth as we move into 'twenty, six and mortgages to begin to cash flow and we'll be able to have some excess retained earnings that can be utilized to pay down debt or likely continue you'll find a lot of leasing momentum as well. So I think we're headed to.
Speaker Change: <unk> with Citi.
Speaker Change: Lee you reevaluate the dividend turned back on but I would imagine it would be later.
Speaker Change: Given the focus that we have begin to remain.
Speaker Change: Excess liquidity continue to improve the balance sheet.
Speaker Change: Thanks, that's it for me really appreciate it.
Speaker Change: Yes.
Speaker Change: The next question comes from Nick filming with Baird. Nick. Please proceed.
Nick: Hey, good morning, guys, maybe just circling back on the dividend kind of maybe walk us through some of the thoughts behind that.
Nick: Maybe what was there any pressure from the banks when it comes to lending how much with it not being fully funded and then maybe on the rating agencies, what kind of metrics, they're looking at when evaluating you guys. Because you said that played a part in there and kind of what you have earmarked for kind of itchy eyes and capex out of the dollars are going to be saved from that.
Nick: Yeah.
Nick: Great series of questions there I'll try to tackle those one at a time and again thanks for joining US today first is around our thoughts around the dividend.
Nick: T monitoring how many we've leased since the pandemic over 10 million square feet, a $10 3 million square feet and remarkably about a third of that has been in the last 18 months or so $3 8 million square feet equating to about a quarter of the operating portfolio as it stands today. So we have record levels. If you will.
Nick: Unconvinced in pre rent.
Nick: So while our earnings and EBITDA remain very strong.
Nick: Right now we're in a pretty unique to the company's lifecycle, where cash flow is diminished for rent and we have a lot of D. C.
Nick: And we want to continue that momentum and so really as we thought about sources.
Nick: Sorry, new sources and against that capital to fund that growth of course to reduce positions as an alternative however, given again posted raising navy uncertainty of accomplishing those dividend sorry. This disposition.
Nick: Just continue to come into play and recognizing that we still have a couple of assets under contract.
Nick: I think the probability of clothing has diminished slightly but we still are hopeful and expect that they will go to closing sometime this year, but we couldn't rely on that as a source as we thought about.
Nick: Raising equity anywhere for our share of Brian stand today that also really doesn't make a lot of rationale from a band perspective.
Nick: We thought about.
Nick: Utilized leverage.
Nick: We will go past year on our line of credit.
Nick: Certainly lots of work from our banking relationships.
Nick: Recast the term loan.
Nick: Number of those banks stepped up and more capacity and we recast our entire line of credit at the same level again with a lot of support from those same level of banks. So we have the opportunity to utilize the debt, but as you look at the cost of that debt.
Nick: What are the costs that would be the retained earnings come into play, it's certainly a lower cost of capital right now and utilizing and earnings and continuing to be mindful of our unsecured credit rating and our commitment to remain investment grade.
Nick: Also came into play, but I would say the rating agencies.
Nick: Actually toured on all three of those routes through our portfolio, particularly here in Atlanta in the last call. It two months or so are they are very supportive of.
Nick: Leasing that we've accomplished proactive nature that we've taken and refinancing our maturing.
Nick: Maturing yet and I think they are very supportive of this proactive approach to funding these leasing.
Nick: And capex requirements that are really good news I'm going to continue to increase the earnings of the company, particularly in 2020 States and beyond and then finally just touch on your last part really kind of what portion of the Capex versus other uses I'd say it.
Nick: Probably the next year or so is not only go into the leasing.
Nick: Bucket or use if you will because of the velocity that we see.
Nick: Portfolio, and then with a likelihood that capex might dwindle are reducing 26, so we might be able to utilize some of that excess cash flow saved from the dividend to pay down debt or to consider external growth opportunities, but I think our priority right now, but in a random obviously funding path.
Nick: Capital, releasing and generate a.
Nick: Returns greater than 25% and focus on the balance sheet, and then third would be acquisition opportunities and those would likely be distress situations that we focus on that frankly may not hit our balance sheet today.
Nick: We used case, we'd probably look to utilize our JV partner and we have talked to some groups.
Nick: Our platform success in our own portfolio and we'd like to partner with us, but at the moment, we don't see anything right now that.
Nick: M&A emanate from an acquisition perspective, and I think obviously, what we've seen supposedly <unk> day is going to put a little bit of a wet blanket on the transaction and capital markets at the asset level probably for several months.
Nick: But we will continue to be thoughtful and evaluate those opportunities as they come.
Nick: All right.
Nick: So right now again focused on leaving easy leasing.
Nick: Oh that was a lot of questions and a very.
Speaker Change: Helpful answer so I appreciate that and then quick one just on George the 3 million square feet of proposals that sort of pick up quarter over quarter any markets are noticing I know you highlighted kind of Dallas, Atlanta, and Minneapolis in particular, but any of the other markets seeing a pick up as well or is it those three kind of driving that uptick.
Nick: Good morning, and welcome.
Speaker Change: Are there any of those three markets is where most of our vacancies.
Speaker Change: Not surprising at 87% of our new activity coming in that proposal.
Speaker Change: Line is heading in that direction I mean, New York in Orlando, It's pretty stable in the low to mid nineties, I'd say Boston is probably still sitting around 86 for us although I would say.
Speaker Change: While the velocity of the first few markets that I mentioned and then Dallas is kind of just since diagnosis.
Speaker Change: That's it for me Thank you guys.
Speaker Change: If there are any remaining questions.
Speaker Change: Yes.
Speaker Change: Clarify here.
Speaker Change: George Smith.
Speaker Change: <unk> was not.
Speaker Change: Non Dallas DC.
Speaker Change: It was.
Speaker Change: Was that.
Speaker Change: Sorry go ahead operator.
Speaker Change: Absolutely if there are any remaining questions. Please indicate so by pressing star one on your Touchtone phone.
Speaker Change: Okay. We have no further questions in the queue I will now turn the floor back over to Brent Smith for any closing remarks.
Brent Smith: We appreciate everyone for joining us here today again keep them up we are extremely excited about the volume and the success, we're having on the leasing front that will lead to operational growth.
Speaker Change: And excited about where the platform is and obviously a lot of leasing accomplished in April.
Speaker Change: We are going to continue to update investors. We have wells conference next week May six and seven Wells Fargo and then of course for US meeting June NAREIT.
Speaker Change: <unk> REIT week conference held in New York, So I would encourage investors to contour Atlanta has been tightened management contact Sherry regular Jennifer.
Speaker Change: Can you set up a one on one at either of those conferences again. Thank you everyone will continue to update you on the leasing front a great day.
Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.