Piedmont Office Realty Trust, Inc. (NYSE:PDM) Q2 2023 Earnings Call Transcript

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Dylan Burzinski: Just sort of along those lines, any desire or willingness to offer seller financing, in certain instances?

Brent Smith: Very relevant point, Dylan, and I think that’s really what’s gotten most of the transaction volumes that we’re aware of, most of them, not all of them, over the goal line. So we have considered in the past, certainly done in the past. At this point, right now, with the Houston buyer, we’ve not capitulated. We’ve had some discussions, but I don’t think that we’re meeting immediately the leverage specials they would like to. But, overall, I think that’s something we will continue to consider in some situations but in the instance of Houston, I think our preference would be to exit the market if possible.

Dylan Burzinski: And then just one last one, if I can, assuming U.S. Bank gets sell out here at the high end of sort of the range you guys guided to, is that a potential future disposition candidate or I guess just broadly speaking, how are you guys thinking about your Minneapolis presence over the longer term time horizon?

Brent Smith: Yes, Dylan, very relevant question. I think we’re certainly very close to U.S. Bank and in discussion, so I don’t want to get too much detail or ahead of ourselves. But I think we view the long – the downtown asset is a critical component of U.S. Bank’s operations, we would have a meaningful reposition of their space, if we were to do a long-term lease like we’re talking about here, but that’s going to take several years to complete. And I think we’re very committed overall to our position in Minneapolis, recognizing there may be an opportunity or some buildings to reduce exposure. But near term, I think we’re focused on accomplishing those leases and then we’ll worry about opportunities overall in the marketplace.

Dylan Burzinski: Right, appreciate the comments, Brent. Have a good evening.

Brent Smith: Thanks for joining us this evening, Dylan.

Operator: Thank you. That concludes your Q&A session. I will now hand the conference back to Brent Smith for closing remarks. Please go ahead.

Brent Smith: Well, again, I want to appreciate everyone who’s taking the time to get on the call this evening. We certainly have been pleased with the operational performance of the portfolio and look forward to continuing to share that in the quarters to come. I’d like to remind investors as well we’ll be attending the Bank of America REIT Conference on September 12th and 13th in New York City. If you’d like to schedule a meeting with management, please reach out to Eddie Guilbert or Bobby Bowers. And again, thank you everyone for joining. Have a good evening.

Operator: Thank you everyone. This concludes today’s event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

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