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- **Record Leasing Achievement**: 501,000 sq ft leased in 45 days at Phoenix project, eliminating $0.02 per share drag.
- **Strong Cash Flow Growth**: 33% cash rental rate growth, 8.7% same-store NOI expansion.
- **New Development Pipeline**: $54M in Dallas/Philadelphia projects targeting 8% yields.
- **Tariff Uncertainty**: Mixed tenant behavior, but e-commerce/3PLs driving activity.
- **Financial Strength**: $450M bond issuance at 5.25%, narrowing 2025 FFO to $2.92 per share.

**【CEO Opening Remarks】**
- Portfolio performance strong with 94.2% in-service occupancy, despite a 110 bps decline due to a Central PA move-out and new developments entering the pool.
- Cash rental rate growth of 33% (38% excluding fixed-rate renewal), on track for 30-40% annual growth.
- New development leases: 501,000 sq ft at Camelback 303 (Phoenix) and 58,000 sq ft at First Loop (Orlando), bringing total project to 100% leased.
- 2025 rollovers: 88% completed by square footage.
- New starts: 176,000 sq ft in Dallas and 226,000 sq ft in Philadelphia, targeting 8% cash yields.
- Tariff uncertainty continues to dampen tenant decision-making, but e-commerce and 3PLs remain active.

**【CFO Financial Commentary】**
- NAREIT FFO: $0.76 per share (vs. $0.66 in 2Q 2024), driven by rental rate growth and contractual bumps.
- Cash same-store NOI growth: 8.7% (excluding termination fees).
- Capital markets: $450M senior unsecured notes issued at 5.25%, narrowing 2025 FFO guidance to $2.88-$2.96 per share (midpoint $2.92).
- Interest expense impact: Higher in H2 due to development funding and bond issuance.
- 2025 development leasing assumption: 1.5M sq ft to be leased by year-end.

**【Q&A Highlights】**
- **Development Leasing Success**: 501,000 sq ft leased at Camelback 303 in 45 days, eliminating $0.02 per share drag in guidance.
- **Construction Costs**: Down 5-10% YoY, stabilizing in 2025 with slight steel and copper price pressures.
- **Tariff Impact**: Tenants split between pausing (e.g., HQ directives) and moving forward (e.g., Amazon-like urgency).
- **Build-to-Suit Strategy**: Lower returns than spec development, executed sparingly for strategic fits.
- **2026-2027 Expirations**: Higher proportion in Dallas and Atlanta, consistent with 2025 trends.
- **Market Strength**: Nashville, Florida submarkets, and infill Dallas/Houston performing best.


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