Fellow Stockholders

During the twelve months ended December 31, 2024, we leased approximately 616,000 square feet of office space, including 171,000 square feet of new leases. Our directly-owned real estate portfolio, consisting of 14 properties totaling approximately 4.8 million square feet, was approximately 70.3% leased as of year end 2024.

The weighted average GAAP base rent per square foot achieved on leasing activity during the year ended December 31, 2024 was $30.06, or 8.2% higher than average rents in the respective properties for the year ended December 31, 2023. The average lease term on leases signed during the year ended December 31, 2024 was 6.3 years, compared to 6.8 years during the year ended December 31, 2023. Overall, the portfolio weighted average rent per occupied square foot was $31.77 as of December 31, 2024, compared to $30.72 as of December 31, 2023.

Since December of 2020, we have used net proceeds from property dispositions to reduce our total indebtedness by approximately 75%, from approximately $1.0 billion as of December 31, 2020 to approximately $250 million as of December 31, 2024. During 2024, we sold properties in Richardson, Texas; Glen Allen, Virginia; and Atlanta, Georgia, reducing total liabilities by approximately $165.45 million, from approximately $456.52 million as of December 31, 2023 to approximately $291.07 million as of December 31, 2024.

As we begin 2025, we are seeing a general increase in office activity. More employees are coming back to the office, there are clearer, longer-term leasing requirements from larger tenants, and more capital is showing an interest in potential lending and equity investing in office. If this current increase in office activity continues, it could present us with better and more diverse opportunities to try and realize what we believe to be the intrinsic value of our underlying real estate assets for stockholders.

Thank you for your continued support.

George J. Carter

Chairman & Chief Executive Officer