Thank you very much. Good afternoon, and thank you all for joining us.

It may be the dead of summer, our team is of course, hard at work This is truly when we shine the brightest, completely dialed in on our business plan. and outworking the market.

That hustle really showed up this quarter. Much of what we predicted at our investor conference in December is now playing out in ways that directly drive earnings and improves cash flow.

We forecasted that the leasing progress we have made over the past 2.5 extraordinary years would become apparent in our economic and it certainly did this quarter. Up a remarkable 300 basis points as concessions continue to burn off and overall vacancy dwindles.

At the same time, we are putting the significant leasing costs associated with the lease up behind us and leverage and coverage ratios are improving, which we also saw in the second quarter. On the leasing front, the story remains the same.

A growing scarcity, of premier space in desirable Midtown districts, has turned the tables in our favor. We now know that we will exceed our leasing goals again this year.

it is just a question Of whether it will be by a wide margin or a really wide margin. We do not have that visibility yet, so it is too soon to reforecast.

But the trend continues to move in the right direction. We are also seeing very positive momentum at Summit, both here at 1 Vanderbilt and on our projects around the world.

Even with reduced overall tourism in the city this year, we enjoyed the highest attendance amongst all of our competitors and introduced a number of new ticketed experiences that we expect will continue to drive revenue. We are on track to open Paris next summer in 2027 and in Tokyo in 2030 as we continue to see enormous growth potential for this business.

Most importantly, the backdrop to our performance this quarter and moving forward is the extraordinary and prolonged surge in business activity in New York City. Our economy is in a league of its own compared to any other CBD in the country or indeed even the world driven by financial services sector is performing as well as I have ever seen it.

Wall Street profits hit $21 billion in the first quarter alone, the second highest first quarter that has ever been recorded in approximately 40+ years of tracking this metric. The big 5 money center banks just reported and second quarter profits are up a whopping 50% year-over-year, and that is coming off a very strong year.

Office-using jobs are up by 12 thousand year-to-date according to the city's OMB and a strong showing for only 6 months of the year with further growth projected for the balance of the year. We have also seen tech growth driven by AI, and we are obviously getting more than our fair share of those leases.

Including the lease we announced last night for 100 thousand square feet at 11 Madison. it is not just financial services and tech.

it is truly a broad based growth and demand. Momentum that we see here in the city.

it is just 1 example. The healthcare sector continues to grow and added 20 thousand jobs year-to-date.

Many of which do land in office space like MSK at 885 3rd, and the hospital for special surgery at 15 21st. And NYU has a significant footprint at 1 Park.

New York City based companies raised $10.8 billion in venture capital funding in Q2 alone, and that brings it to $21.1 billion year-to-date. Both of those metrics are double the same respective amounts in the measurement periods in 2025.

The city is, I think, experiencing 1 of the largest resurgences I have seen The tax receipts are very good. The city just passed its budget.

In June. it is another balanced budget with rainy day reserves.

I feel like we are in very good standing. And this is what all adds up to the about 50 million square feet of office space leased in the past 4 quarters That has to be a record.

It was a very strong quarter. I am incredibly proud of our team, and I remain very optimistic about the direction of the city, and the economic activity that supports our performance.

Finally, before we open it up for questions, I want to address our big guidance revision for this quarter. The revision is great news and certainly represents the culmination of efforts not just over the past 3 months, but over the many years leading up to this we have executed a deliberate strategy to invest what was needed to move our occupancy back toward 95% and we are now reaching a positive inflection point.

This should not be a big surprise since we forecasted this positive momentum back in December. Maybe the magnitude is even more than we expected, but it is obviously a pleasant result Matthew, if you would, please elaborate on the underpinnings of this significant guidance revision.

Thanks, Marc. It is clear.

We have had a fantastic first 6 months of 2026. Exceeding our expectations on several fronts, including our second quarter reported results.

And we are excited to be able to translate these successes into a significant upward FFO guidance revision of $1.20 a share, more than 26% the vast majority of which is recurring. In the Manhattan office portfolio, revenues benefit from strong leasing, particularly early renewals, and the lease of a prebuilt space, both of which have immediate earnings benefit along with a conscious effort to accelerate GAAP revenue recognition by delivering space to tenants more rapidly.

Which is coupled with phenomenal expense containment as always by our operations team to drive $0.20 a share of incremental FFO in 2026 from the real estate portfolio, 10% of which we recognized in the second quarter, $0.10 of which we recognized in the second quarter. Visibility into the execution of the remainder of our 2026 business plan over the next 6 months, also provides us the opportunity to generate additional fee and other income which we expect to contribute an additional $0.20 a share of FFO.

Now if we had simply increased FFO guidance by $0.40 a share for these operational successes, we would have been thrilled. That equates to about a 9% increase at the midpoint.

But because we built 1 of the most successful and more importantly, profitable buildings in the country here at 1 Vanderbilt, able to add another $0.80 of recurring, not 1-time, FFO to our guidance revision. This property has generated so much cash flow that we repatriated all of our invested equity long ago.

That cash flow in excess of our share of GAAP net income at the property caused the carrying value of our investment to go negative. GAAP allows you to carry a negative basis but only up to the value of any known or potential future tenant obligation.

At the end of the first quarter, our negative basis reached the maximum allowed under GAAP. So starting in the second quarter, 1 Vanderbilt's incremental FFO contribution is calculated based on the sum of 2 things.

First, amortization of the negative carrying value over the term of the related tenant obligations. This amortization component alone is approximately $21 million a year through the early part of 2031.

Plus the difference between cash distributions we receive from 1 Vanderbilt and our share of GAAP net income. Going forward, every dollar of cash distribution out of 1 Vanderbilt that is in excess of GAAP net income is incremental FFO to us.

The total of these 2 components contributes an additional $0.80 a share of FFO in 2026, $0.35 of which we recorded in the second quarter, And based on current projections, is expected to contribute as much or more to FFO next year. The way I look at it, this is essentially flowing deferred cash profits from the project through earnings.

And further evidence of the incredible success of 1 Vanderbilt. More importantly, a testament to the hard work of the best employees in New York real estate that work here.

With that, operator, we can open it up for questions.

Thanks. Hi, everyone.

In turn, maybe we could start on the leasing side, the mark to market, again, this quarter was strong, above guidance. Can you just talk about what the specific buildings driving that activity, submarkets or if it is actually just sort of a broad based improvement?

Well, let's start with, it is a broad based improvement, but then within that, within the portfolio, there is some particularly notable transactions and buildings that are really seeing rent appreciation. Anything on Park Avenue, we have raised rent dramatically.

6th Avenue, for instance, 1.19 thousand. Rents are up dramatically.

And then across the portfolio, we have been consistently raising asking rents throughout the year. So 245 Park Avenue where we have done a lot of leasing this year.

We have got some deals pending to replace some tenants that at OVA, rents are going to be up dramatically. So I think what we saw this quarter, we are going to see it again next quarter.

Okay. Thanks.

And then second question is just going back to 1 Vanderbilt is 100% leased. And as we think about it, I know you have said before there is a significant mark to market embedded in that asset.

Is there any opportunity to perhaps move an existing tenant to 346 Madison, your new development project, and unlocked some of that mark to market in 1 Vanderbilt through that process. Well, it is a little early to talk about 346 Madison since it is 5 years away.

But there are opportunities that we are pursuing for tenants that have either outgrown their space and we are recapturing some of those spaces. And then accommodating tenants that need expansion space.

In the building, we have got several pending transactions, and you will see those leases I expect to sign this quarter. And the rents will be up in a--to really, I think, illuminate the fact that the building's in-place rents are well below current market.

Okay. Thanks, guys.

Down there. 2 questions.

Marc or Steven, the pace of this office recovery is just it is incredible. I mean, it is like what the.com was, maybe even better.

Is it solely just the lack of supply, or what do you think is causing companies to clamor for so much space so quickly and even be willing like, it is just as I say, it is--we have not seen this in decades. I am just trying to understand if it is lack of supply or something else.

4 things. 1, the economy in New York City is doing extremely well, and you know, profits drive growth.

Growth drives demand for space. it is broad based, as I mentioned earlier.

And there is no sign of abatement right now because things are really just you know, firing on all cylinders. Across almost all sectors.

And you know, that is kind of like the tip of the spear, if you will. Second, we just are in a situation where there is almost no additions and space to speak of.

A 400 million square foot market. And that is really looking out over the next 5 years or so.

And that is because a lot of projects during 2020 and 2024 either got delayed or shelved or changed or whatever. And as a result, you just cannot flip a switch and produce that space.

It takes a lot of time. And effort and money and foresight to be able to open up the inventory.

This is not like 1 of those you know, borderless markets that are out in other CBDs around the country where know, you have constant new product replacing old. Here, it is much more delicate, especially in a fully built out Midtown.

So scarcity, I would say, is the second major issue. Thirdly, you know, you had companies that were just sitting on the sidelines uncertain as to what direction they were headed.

And we had some very lean years back in 2020 through 2023. And then now we have been the beneficiary, especially in 2025 and 2026.

Of just companies that have plans for the future that are so ambitious and so affirmative that, you know, the issue we face right now is not just delivering space. it is giving tenants confidence that once they lease space, we will have more growth options for them either within those buildings or surrounding buildings.

Satisfy their future growth needs. And it kind of feeds on each other, and it is-- turned into smart businesses wanting to put away their long term space plans for 10, 15, 20 years.

Now and not have to deal with the unknown, down the road. And I would say the fourth major point is conversions.

You heard me on this back in 2024. This was something I identified as what I thought was going to be 1 of the most significant trends in favor of diminishing office supply and sort of a winnowing of secondary and tertiary office space being converted into primary and, you know, very attractive residential space and much needed rental apartments.

And as a result, you have an inventory that is actually dropping, and is bringing up the middle and bottom of the market, into rates that, you know, become economic. For the business.

So that is why, you know, Steven said earlier, we are experiencing rental growth across all facets of the business. So I think that, taken together, really should not be a surprise because we have been on these themes for, you know, months and months.

Maybe years and years. And I think what you are just seeing is you know, that playing itself out.

In a very predictable way. And as long as the economy stays as robust as it is, I do not see this abating, anytime soon.

And then so, Marc, just on that point on the office-to-resi conversions. Do you see most of that pipeline continuing on?

Or is your view that we will suddenly get a bunch of buildings that were planned to be converted come back to office and maybe that is competition? You know, that is an interesting question.

That we will have to see play out. I would say right now, for the projects that have been what I will call lit and or have been permitted or about to be permitted, I think you are gonna see them all go through as conversions.

Because before, I would say the economics were in favor of residential, I would say office you know, at that segment of the market is closing the gap. And, you know, maybe it is getting closer to a push.

But you have to remember, aside from just the pure economics of rental value and cost to convert. you still get a pretty strong financing edge with residential where spreads are tighter than office.

And a stronger cap rate environment to sell into or JV into. As you saw on 7D, where I think the cap rate was about a 5% or 5.1%.

And that is--I think some projects will command better than that depending on location. So I think the gap is narrowing but still tilts in favor of conversion for a number of these buildings.

But that could change in a year or 2, and you may hit an equilibrium. Thank you.

Yes. Thanks.

You know you guys had an ambitious debt refinancing and capital markets transaction program for 2026. Could you maybe just give us an update on where you are on refinancing and asset sales for the year?

Yeah. Sure.

So just talking about the capital markets more broadly, I would say the shifting macro landscape since the start of the year and the resulting benchmark rate widening that tried to interfere with the natural trajectory of the market. But these are moments where New York City shines.

you know, Marc always says, New York City is the triple a investment of our sector. Despite not having the wind at our back, we continue to see what I would call unending domestic and international demand for quality Midtown Manhattan product.

Just this morning, we saw a report that was issued and published in Crain's about how Manhattan's investment sales market jumped 50% annually in the first half of the year, which marked the strongest first half of the year since 2022. When interest rates were just starting to rise.

So when we look at transactions over this past quarter, the development sector, we completed our partnership with Mori Building at 346 Madison. This is our third transaction with Mori Building.

Mori is a remarkable partner. They have been--they are incredible developers and visionaries.

And we are proud to be able to launch this project with them. We shook hands on our partnership with only within only a few months.

Of us closing on our acquisition. And I think that really speaks volumes to the quality of what we will be building.

And the trust between our 2 organizations. In the core office sector, we entered into contract to sell 10 East 53rd Street.

That cap rate was approximately 5.7%. For a side street building.

That sale will complete a successful transaction for SL Green notably, it is about a 3.5x multiple on the acquisition of our partner's interest in 2024. And another example is our good friends' purchase of Park Avenue Plaza, which was a highly competitive process.

And that is on the heels of their purchase of 623 5th. And then in portfolio deals, I assume everyone's seen the rumors in the press.

Regarding a potential transaction for the Hudson Square portfolio. So I would say most interestingly, much of this quarter's demand was driven by domestic and long term investors in our sector.

Most of those groups were on the sidelines for quite some time. So between availability of debt capital, the strong fundamental performance that you have been hearing on this call, and the diversity of investor base that we saw this past quarter, I would say this is 1 of the best better investment sales backdrops we have seen in quite some time.

With respect to our program more specifically, we have completed or in contract on 4 of the 11 deals in the plan. I expect we will be announcing 2 additional deals soon.

Then we are gonna get started on the remaining 5 deals that are in the plan. As most of you know, our disposition plan this year was weighted to the second half.

As we strategically launched sales throughout the year and the team is gearing up to launch on those remaining transactions. We can talk more about the debt capital markets, but I would say specifically to our plan, the next 1 up in the queue is 245 Park.

That 1 is in advanced stages right now, and I expect that we will have more to announce in discuss in the coming months.

Thanks. Marc, I do not know if you could maybe just comment on 151 thousand Broadway.

I know you were disappointed with the casino outcome. But have you guys kinda given more thought to the long-term, you know, plans for that building?

And if so, you know, when do you think you know, that kind of takes more shape? Yeah.

You know, look. We shook off the disappointment back, I guess, it was last September, I want to say.

Amazing how you know, time goes so quickly. it is a shame because I think we would have been close to open.

When we were all would be walking into the casino. But since then, we have had the opportunity to assess a lot of plans.

And what I have come to appreciate even more is that we are in a very good spot, I think, with 151 thousand. You know, 1 Paramount after being acquired by Skydance and now having an agreement to merge in with or acquire Warner Brothers.

To create, I think, 1 of the most powerful and largest media companies, in the world. That Hold it.

We good? Okay.

1 of the most powerful media companies in the world. you know, puts 15 kinda squarely back in the mix.

For you know, longer term use by that combined entity. I will call Skydance for the moment.

I do not know you know, that they have their plans all sorted out yet. My guess is not from know, from the conversations we had and also given that merger is not yet closed.

But certainly, the combined entity is gonna employ, I think, more than 4 thousand people. I think a lot of those jobs can and will stay, hopefully, in New York City.

And we would expect to be a net beneficiary of that. Now with all that said, you have to remember that the debt is on rapid amortization over there.

So at the expiration of the Paramount lease, we have very low debt outstanding on that particular mortgage, which again gives us flexibility to consider other types of conversion options to maximize entertainment uses, which I think is really highest and best for Times Square. And for that asset.

Signage opportunities far and away above what currently exists. And, and really make it kind of a mixed-use destination entertainment, theater, live theater, live music.

Media office, capital of Times Square. So I think there is gonna be a lot more to say on that.

Time wise, Steven, I think is next year because I think, as I said, until things are clearer with our you know, primary tenant over in that building. Sole tenant in that building, you know, there will not be a lot to do, but I think as soon as that transaction's culminated, we could be very active over there.

And, I am very positive on that particular property right now. Thanks.

Thank you. Good afternoon, everybody.

Marc, I want to go back to something you said in your prepared remarks when you were talking about the step function and economic occupancy in Q2. Maybe view it from a different angle.

We think of vacancy leasing and how it eventually drives economic occupancy. But there is a good portion of your portfolio that are leases that were signed 2020 to 2023 when tenants were focused on shorter term renewals.

Do you have a sense of, for that portion of COVID vintage leases? Kind of what is the embedded mark-to-market on that?

Maybe it is not reflected in economic occupancy right now, but in the next year, 2 years, 3 years, really starts to roll into the numbers?

Yeah. I mean, look, I do not have that number, and I am looking at Steven and Matthew, and they are not they are not giving me the hodge sign here that they have it.

So I am gonna give you a little bit more gut and instinct. I would say I will give you a broad range between 10% and 20%.

I think just given based off of our increases in our asking and taking rents that Steven referred to earlier. I have a better sense building by building how we have moved rents up.

you know, sort of incrementally over the past, you know, 2, 2.5 years. And I think, you know, typically, the range of increase is minimally 10%, probably as much as 15% or 20%.

Mean, I do not know. Building like 1 Vanderbilt more than that, but that is you know, that is that is you know, we are fully leased here.

So I would say a safe bet is 15%-ish, you know, on you know, when those what you call COVID year leases come up for renewal, But I am giving you that more touch and feel than like, I do not have the numbers in front of me. I do not think it is less than that.

Steven, do you have any Yeah.

I think there is a couple of thoughts with regards to it. A lot of the deals that we did during COVID were even shorter term.

Like, we are 5, 6 years past COVID at this point. So a lot of those deals we were doing at that point in time were, you know, 3, 4, 5 years.

1. Secondly, is if you will recall, the net effectives may have dropped more than the face rents.

Face rents were probably down about 10% from where they were at the end of beginning of 2020. And since that time, face rents have dramatically increased throughout the portfolio.

And certainly, as our portfolio, the complexion of our portfolio has changed over the years, seeing much bigger rent appreciation on parts of the portfolio, particularly, you know, Park And 6th Avenue buildings. And with the stabilization of concessions, over the past year and a half, you know, the net effectives only the face rents go going up, but the net effectives are going up as well.

So I think we are probably past the moment in time where those kick the can deals you know, those leases have probably already come back and we have attended to them as part of our leasing over the last couple of years.

Particularly, if you look at our rollover schedule over the next couple of years, we do not have any big, you know, chunky expirations. Certainly, nothing of consequence this year that is not already being attended to.

And our largest lease next year is, like, a 150 thousand square feet, and that is 1 lease. So Yeah.

But with that said, we are gonna be mining opportunities that are noncontractual. It will be really.

We are we are I think you are gonna see the growth come from is really 3 things, 4 things. 1, nominal face rent increases.

Steven and I just spoke about that. 2, stabilized, lease concessions for new deals, maybe even slightly contracting.

3, a much higher prevalence of renewal to new Early renewal. Early--well, renewal-to-new I was gonna go forth, which you know, we are saving considerable.

that is where your net effective rents are gonna be far higher than 15% to 20%. So you are getting that kick on face rent, and then you are getting a compounded effect.

On reduced, TI and free rent. And then lastly, we are mining the portfolio for every expiration between now and 2032.

I mean, we are out there, like, 5, 6 years forward hitting every tenant right now trying to do blend and extend deals, early renewals, trying to get, you know, blend in rental uptick and defer out, you know, some capital costs. And I you are gonna see in the second half of the year, we are gonna get some good traction there.

And so all of that is what we are busy at work on. I mean, when the--you have got to hit the market when the market's there, and we recognize that.

And we are not just focused on the next year or 2. We are focused on the next 5 or 6.

And, with an intense eye on saving, capital dollars and trying to max out face rents. Got it.

Got it. Appreciate that color.

And then last 1 for me.

Maybe Harry, just wanted to touch on the debt fund. you have had success deploying capital there.

How do you see that opportunity set potentially evolving as the New York market continues to improve and traditional lenders start to get more comfortable with office. do you have to focus on a different part of the cap stack or kind of shift strategy in any way?

Yeah. Look.

So we have done approximately $600 million of deployment through a call yesterday. We have a handful of opportunities in the pipeline today that, you know, we are working through.

I think, you know, these are moments where our team shines. I mean, we had obviously a lot of opportunity in front of us last year and to beginning of this year as that capital stack start to tighten.

For us, this is now about financial engineering and working with senior lenders, trying to get the tightest senior financing, much like you saw us do on our balance sheet years ago at 550 Madison. And this is where we go out, work with our relationships there is a deal we just closed, the debt fund.

We are not disclosing transactions in the debt fund, but there is a deal we just did where we went out, originated the entire stack, syndicated out of senior syndicated out of subordinate mezz. And we are able to get to our yield requirements.

So know, for us, this is where our team focuses on our relationships and builds capital stacks to get to our yields. Got it.

Appreciate the thoughts. Thanks, everyone.

Thank you. I wanted to follow up on what drove the $0.20 of operational uplift this year and what surprised you?

You did not raise same store occupancy guidance I am assuming a lot of this is timing and the economic occupancy is moving up. But is it purely just a better renewal rate in terms of retention of every tenant and more leasing a prebuilt space.

I am just trying to understand why such a big uplift relative to expectations.

Sure. Yeah.

I thought I hit that in the opening comments, but it is--you reiterated the biggest ones, and Steven and Marc highlighted that as a catalyst to what we are seeing. Renewals and early renewals.

If you are looking at NOI, right, everybody's very focused on gap revenue recognition and economic occupancy. Renewals and early renewals are instant gratification when it comes to GAAP revenue recognition.

And we are doing more of those. We have also made a conscious effort because we talk about, you know, turning on GAAP revenue recognition, is triggered by the turnover of space to tenants.

We are working with our tenants, and our own team is hustling to try and turn over space even faster so we can turn that earnings spigot on. And then just from an expense, perspective, you know, we budget very conservatively.

We are ahead on expenses. And the combination of those things, the $0.10 of the $0.20 were already recognized in the second quarter.

That was $0.10 ahead of our expectations just in Q2. You have $0.10 left for the balance of the year.

Which is a combination of those handful of items.

Okay. And then I also want to follow up on the refinancing plan for the year, and in particular, 245 Park.

The leasing has been very strong. The redevelopment is underway.

But now with the 10 year moving up above the asset's mortgage rate, how does that impact either the timing of some of the refinancing or sales and the valuation of the asset.

Sure. So just I spoke earlier about equity capital markets and a bit on 245, but let me just talk about the credit markets more generally.

we continue to be encouraged by the strength of what we are seeing in the credit markets. We have seen approximately $11 billion of CMBS originations year to date.

That figure for the same period last year was about $8.5 billion. The 2 biggest deals that got done this past quarter was the $1.9 billion finance of 2 Manhattan West.

I see here $1.8 billion financing of 9 West 57th Street. And I think what is 1 of the best data points that we have seen out there is really this tightening of the AAA spreads.

We are now seeing AAAs tighten sub-100. And overall spreads on the deals that are getting done are in the mid to high 100s depending on last dollar LTV.

And I would say, interestingly, when you compare it across all asset classes, spreads on single borrower CMBS, AAAs for Trophy Office are now trading in line and in some cases inside of what we are seeing for spreads on industrial, multifamily, and self storage. So I think the bond market is starting to appreciate what we are seeing in the Trophy office asset class.

We are gonna be big beneficiaries of that on the 245 Park financing. that is in process now, and I think you will see a lot more illumination on that as we launch the rating agencies and data becomes public.

But I would say from a spread perspective, we are very confident in the execution that we are seeing. Of course, the benchmark, as you noted, is not cooperating with us.

that is obviously outside of our control. But, you know, Matthew can speak to some of the hedging that we are putting in place to ensure that we have the proper protections at the right times in the market.

Yep. As has been customary for the last few years in this rate environment, we are maintaining a very cautious stance when it comes to rates.

We are hedging out well ahead of time on financings like 245. To protect against rising rates.

The bulk of our debt remains hedged as well. We were at 70/30 fixed-to-float.

We remain more like 90/10. So hedging existing and hedging forward for the foreseeable future.

Brett. Thank you.

Thanks. Sorry if I missed this, but just on the leasing pipeline, I think it is stood at 900 thousand square feet last quarter.

Can you give us an update there? The mix between new and renewal?

And how much of the renewal activity is pull forward renewals?

Well, there is a 900 thousand square foot pipeline. it is roughly 50% new, 50% renewal And of that 900 thousand square feet, 400 thousand square feet of it are leases that are in active negotiation and are essentially very far advanced negotiation, I will say.

And the balance are term sheets, which we expect to convert over to lease leases. As far as the renewals, most of the renewals are you know, I would--I do not have a perfect answer to it, but they are near-term renewals.

They are not early renewals for the majority of that square footage. Thanks, Steven.

And second question, just a follow-up for Harrison or Marc. Can you just walk us through the thought process you all went through kind of on 346 Madison?

Was there any consideration of either selling a smaller stake or waiting for some leasing activity potentially push the valuation a little higher? Did you just see this as something you wanted to do for timing or relationship reasons?

Well, I mean, we did it first and foremost for business reasons. you know, I love fully capitalized development deals.

You never wanna take for granted, you know, a moment in the market and you know, we do have very special relationships with many of our JV partners, Mori Building, on 346 Madison certainly among them. And you know, we have gotten to a point with many of our co-investors where it is a symbiotic relationship where we count on their partnership and they count on our delivery of opportunities in this city, which are the good ones are few and far between.

We were able to get our standard package, if you will, of JV enhancements. For being the ones to, you know, source and execute the deal.

But, you know, in the case of Mori Building, they are also a really good codeveloper. I mean, these are folks that have built as much as anybody in Tokyo, such as Azabudai Hills, Toranomon Hills, and Roppongi Hills.

These are fabulous investments. I think there will be opportunities for us each way--both opportunities for us and for them.

We had their commitment early on. there is a lot of planning that needs to happen and happen early and having a good partner like Mori together with us at the early stage makes the entire development go much easier.

We reserved enough that we plan in the future to probably syndicate equity further down the line Maybe when, you know, we sign our first leases or maybe when the projects completed or maybe when it is recapitalized. That will be for a later date.

But you know, the combination of derisking through capitalization day 1 getting the kind of economic deal we set out for, you know, and then some, point 2, and the solidification of relationship, point 3. And on we go to the next 1.

I mean, this is we are a volume shop. And while developments are bespoke, and long term and they get a lot of our senior level attention, there is lots more deals for this company to do in this market.

Both long term and opportunistic. And we wanna be flushed with capital to take advantage of this market.

And, you know, I think we have proven our ability to do so in, you know, over our decades in the business, but certainly over, I would say, the past 3 to 5 years. And, we are happy with how it turned out.

Yep, that all makes sense. Thanks, Marc.

Hi. Thank you for taking the questions.

First 1 is just in relation to the guidance raise in this kind of NOI and fee income maybe faster than you were expecting, at the beginning of the--just wanted to ask how does that sort of impact when you think you will start to see an inflection in FAD? I think previously, you have kind of messaged that the expectation would be end of 27 or early 28, but curious for any updated thoughts on that in relation to the guidance raise.

Yeah. I would say the trajectory that we are on, is slightly ahead.

But, you know, 2027 into 2028, you know, with the you know, the breakeven point in 2028 is still the path that we are on at this point. Okay.

Thanks, Matthew.

And then a second 1 just on Summit. I think, Marc, you had some commentary around tourism maybe being a little bit weaker in the city this year.

Just on Summit, I am kinda curious, was there any noticeable impact from World Cup travelers in the second quarter and into the third? Sort of how are you thinking about that impact as it relates to the full year results?

Yeah. Well, look, I mean, the FIFA games, there were 8 of them, including, you know, the much-watched finals.

And there was definitely a bump that I think all hospitality got from those events. it is hard for me to parse how much of that was FIFA driven versus--we are in the heat of the summer right now, and you know, Summit typically does very well, June, July, August.

And, certainly, you know, I look at the numbers daily, and the past, I would say, 4 weeks in particular have been, you know, very strong. you know, ticket sales, daily ticket sales exceeding, $400 thousand-plus a day.

Is fairly typical. So that is those are like end-of-year holiday numbers, so I am happy with that.

People love Summit. it is all ages, all walks of life.

Domestic tourism, you know, tri state residents, foreign tourism. People love going.

They repeat. They go back.

you know, I think our year over year attendance numbers are down a few points, but really modest because most of that was in the more challenging beginning of this year when we are up against weather and other issues, but I would say since May, numbers have been sort of right back, to where we had them. And hoping and expecting that through the ability to manage variable operating expenses and also a big second half of the year, that will finish up right on our numbers, which are market leading.

you know, they are well ahead of the other observatory attractions, both in terms of average ticket price and attendance, because it is a very special experience that I am now excited to be bringing to major cities like Paris and Tokyo and more to come. you know, we have got a lot in the queue.

And maybe, you know, more on that in December. So I always like to hold something back for December.

But we are hard at work trying to bring Summit to everyone around the world for people who cannot get here. And I think it is gonna be it will just the momentum will build and the experience will get even better.

And you know, we are--the team is very excited about the future. Alright.

Appreciate the color. Thank you for the time.

Maybe give us a sense of cap rates and what to expect on your dispositions over the balance of the year, maybe even bucket them depending on whether it is things like maybe a 245 Park stake or resi or something like that.

you know, look, for competitive purposes, obviously, we would not want to quote cap rates on any specific transactions out there. I think the best data points to look at right now are what we completed.

We just announced 10 East 53rd Street that is a core office building on a side street. And that got done at a 5.7% cap rate.

We announced 7D. that is core residential asset.

That got done at a residential and retail. Forgive me.

That got done at a 5.0. And I think you will continue to see you know, assets trade in those types of ranges.

But we are I do not think we will go long any specific number or tie to any specific asset at this point.

Okay. And then just my other question on 750 and, Marc, Madison.

you obviously had the incident with the other conversion close by on 750, and then there is some press on 346 Madison that maybe a neighboring property is delaying you or something. Just can you comment on just the progress on those 2 deals and whether anything gets interrupted on either of those in terms of timeline or plans.

Okay. Let me make sure what the question is, 750 and 346 litigation.is coming up now.

that is 2 questions. Okay.

346, what--no. No.

So 750. I wanna make sure I got the question.

We are you know, I have got with me Bob, there was a question about what are we doing over at our building to, you know, ensure integrity of the execution or what happened over there? It was did we see any interruption on our project at 07,?

Okay. No.

No. you know, there is no interruption on the project debt or equity capital from what took place at a property on 42nd Street, which I assume many are aware of what happened there was you know, basically, as far as we know, it is not yet official, human error.

And you know, something that has zero extrapolation to our project and, therefore, you know, our debt and equity is not impacted by that in any way. We expect to have that transaction closed in the third quarter, both debt and equity.

We are on a path. We feel I feel great about the project.

I think it will be the top rental project in, you know, that, let's call it, Midtown. I do not know which, you know, in that particular Third Avenue Midtown submarket, has expanded all the way over, you know, for, to Second and to First.

The design is extraordinary. The amenity package we have for that building is like none other.

We are having a lot of fun with it, and we are able to do it in a way with domestically sourced products to keep it you know, within our original budget, which I think was around total cost of $800 million, plus or minus. I have got my head of construction here making his debut, 122 conference calls.

That we have done since 2 thousand. Robert DeWitt man behind the curtain who shepherds under Edward Piccinich's watchful eyes, our developments at 1 Vanderbilt, 1 Madison, now 346.

Certainly, the conversion at 750, Bob, a little bit, you know, just a minute on what controls we have in place at 07, to ensure structural integrity, you know, which on a project like 07, is actually I am gonna say, a fairly easy lift for us relative to the kinds of things we have done. at 1 Madison and elsewhere.

I think it could be illuminating if you would share that.

Sure. Thanks, Marc.

Thanks for the intro. So we have numerous layers of oversight, review, inspection, and approvals before any structural demolition, or overbuild is authorized to proceed.

We have got a world-class design team, independent, and major New York City construction manager. Third party special inspectors, as well as our own dedicated staff, overseeing the day to day execution of the project.

We have extensive procedures in place to track the execution of the structural reinforcement of columns and beams at all levels of the project. Ultimately, each location is tracked with detailed photographs and logged electronically in our online tracking software by our construction manager, and design team.

Once reinforcement is confirmed, complete by the subcontractor and the construction managers. An independent third-party special inspector performs their inspection and confirms the work is complete per the plans and specifications before any further work can continue.

And finally, no structural additions, demolition, or overbuild activities are permitted to commence until all required structural reinforcement has been completed. All inspections have been approved.

All tracking documentation is in place and verified. And all structural stability requirements have been satisfied and confirmed, in a pre transfer and pre-overbuild conference that includes all members of the design team and development team.

This process is not only standard for our 750 project, but any project we complete across the portfolio and involves structural overbuild or structural work.

Thank you, sir. it is a rock star.

So that is where we stand on 57. As to I think the question was on 346, the litigation you are referring to is for some access across the adjoining building.

that is fairly, I hate to say routine in New York City development, you know, there should be a lot of neighborly love and access, but you often have to make a visit downtown to lay out the parameters of exactly what level of access, monitoring, building protection, etcetera. you know, we did at OVA.

We have done our other buildings. We did it here.

When people build next to us, we are on the other side of that. And I think that will all be sorted out next month in August.

Ahead of our demolition, we anticipate no adverse outcome and no adverse impact on the timeline. Okay.

Thanks for all the color.

Hi. Thanks for taking my question.

I guess just the first 1, you kind of--you had $14 million of buyback activity in the quarter. And I know dispositions are kind of back-half weighted.

I guess just thinking about the use of those proceeds, how do additional buybacks compare to your goals of debt pay down on a relative basis?

Yeah. Our goal is to make the most with what we have.

And that takes different forms at different times. Development, opportunistic investment.

Buybacks, debt pay down, We had said, I think, you know, for a while now that when we felt we were in a position either with deals done, deals pending, deals in contract, or deals within, you know, within our sites. That we have incremental liquidity that we would use that incremental liquidity for buybacks.

And, we were in that position towards the end of the second quarter, We did dip into the market at a point in time that we felt price was not nearly reflective of the underlying value of this platform. I think with the intense focus of the analyst and shareholder community on earnings, and I understand that, we focus on that too.

there is also, you know, an intense lift on valuation. I mean, these, you know, our assets, which are already premier assets, are becoming more valuable.

With each passing day, with every bit we lease up, and with every bit we improve. And, you know, and winnow some of the low growth assets and redeploy into high growth assets.

So we feel not just really good about leasing. We feel not just good about where our earnings and cash flow is headed, but we feel good about underlying valuation.

And we so we consider it to be a structural disconnect in the second quarter. We put some money to deploy in what I often consider to be the best and most obvious way to invest in yourselves we believe in ourselves.

And I think we will be rewarded, over the long term for those investments, which we may or may not do more of as time goes forward. you know, we will just see what the landscape is at that time.

The great thing is we have got so many different levers to push at any moment in time to try and optimize return for shareholders that even though our focus is in 1 market, it is a pretty damn big market. And there is lots of opportunity and lots of ways for us to deploy capital and make money.

Thanks.

that is helpful. And then with just the $0.80 of FFO kind of related to some of the basis accounting and then having some component of any fair value adjustments on derivatives.

Have you put any thought into disclosing either a core or a real estate FFO metric to kind of give the investor community a better sense of the underlying earnings performance of the business?

No. I do not believe in violating what NAREIT says is FFO and creating your own.

So we do it as reported as everybody should, and that is the best way to compare across companies. Thanks.

Afternoon. Thanks for taking the call, and, you know, congrats on a strong print.

Just 2 clarifications. I guess, you know, you referenced FAD and breakeven.

I was just wondering if you can clarify what do you mean by breakeven and Matthew, could you, at least for 2026, give us a sense of how like the CapEx should trend in the back half relative to the first half?

Sure. Yeah.

We CapEx tends to be a little back-ended. Just because, you know, we get budgets approved.

And then we have got to get to spending. that is our spend and reimbursement to tenants.

So, historically, capital spend is higher in the back half. Than the first.

But since that is largely out of our control, we cannot say for certain how that plays out. And the, the commentary on 2028 is, you know, the same thing we said back on our first quarter call, you know, with FAD steadily improving, 2026 into 2027.

By 2028, you are breakeven as against coverage of your dividend. Okay.

That makes sense.

And then I guess, just now, given what you talked about in terms of, you know, more interest in the capital markets even opening even wider, Is there a way you can share with us, like, as of today, you know, you sold 10 East 53rd. You know, it was a 5.7.

But how should we think about the range of cap rates for, say, like, newer-built core asset versus maybe a older, needs CapEx or just a lease up opportunity? Like, how should we think about Manhattan in the range of cap rates, older versus new product?

So, Vikram, you know, cap rates are really driven by 2 things. you know, embedded growth, expected growth within the asset, and a view on rates.

You can get a low cap rate with an old building. A high cap rate with a newer building, it is not really new versus old.

it is you know, when cap rates compress is when the market believes you are gonna have above average earnings momentum and growth. And, you know, if that growth in NOI projection over 3, 5, 7, 10 years outstrips your view of, you know, where rates are headed.

Then you are gonna have a compressed cap rate, and it could often be below your financing cost. you know?

it is not uncommon to have, you know, cap rates drift lower than your financing costs when you have embedded growth. And right now, you know, when we see nominal rents and net effective rents increasing, at these kind of rates.

you know, as long as interest rates are roughly stable, and that is, you know, that is a caveat, then I think you will see cap rates compress notwithstanding it is a higher than historical interest rate environment. Because people are investing for growth.

you know, they wanna borrow in 2026 dollars and repay in 2036 dollars. And have a lot of you know, nominal growth along the way, And when you have that circumstance, you can have Premier growth assets sub-5%, I think the bulk of what we own is between 5% and 6%.

And there is really not much in our portfolio that trades north of 6% in my opinion. that is not I am not giving you market cap rates.

I am giving you cap rates for our portfolio. The way I look at our assets you know, I do not think we have much of an appetite to trade in the 6.5% to 7% range even if that were the market.

Which I do not think it is for our assets. So I think it is decidedly between 5% and 6%.

Certain assets are sub-5%. Very few might be a touch over 6%.

that is kind of a broad range of how we view. And the tighter, I think, occupancy in the city and our portfolio gets, And the more net effective rents improve, I think the more you may see those cap rates dip.

And then if you get a little interest rate relief, you know, then it is all bets off. We have seen that.

you know, we have seen how fast it can you know, go in your direction or, you know, 5 years ago go against your But I think right now, we are in the you know, we are in the place we wanna be. And I think that is why, you know, you saw us dip into the buyback market.

Again, which we have not done in many years. And, you know, I think that is a fair assessment of cap rates.

Okay. Thank you.

And then, that was helpful.

Just, 1 last 1, Matthew. you have a fair amount of debt coming due next year, and I guess concurrently, a bunch of swaps expiring.

Talked about asset sales, but just maybe can you give us an update specifically on the plan for 2027? Yes.

I plan to do that in December. Thanks for your third question.

Any early preview?

No. Thanks so much.

Bye.

Hey. Just 2 quick ones.

My first 1, I know we talked about sort of the lease occupancy target of 2095, and potentially exceeding that. But any sort of color where the commenced occupancy ends the year?

And the reason I asked is at the Investor Day, I think you guys got a lot of attention on the same store NOI for 2027 of over 10%. Potentially, and just would love to understand where the commenced occupancy ends, and if that is still sort of a good target or realistic Thanks.

Yeah. it is a good question.

You know, we are trending ahead of our same store NOI projections for 2026, which is great, but then it calls into question, well, that is increasing your benchmarks. So what does it mean for 2027?

But the trajectory into 2027 is such that we still expect to be in excess of 10% same store NOI cash NOI growth in, 2027 as well even though 2026 is outperforming. As to occupancy, you are talking about commenced occupancy.

I think the more relevant is probably economic occupancy. that is what flows through earnings.

Commenced is more of a legal term. Economic occupancy, we expected to close the gap to leased occupancy by at least half of what it was.

At the end of 25 by the end of 26. And we are on that trajectory.

And then my follow-up is on the alternative strategy portfolio. Just any updates on 2 Herald Square?

I mean, I see 650 5th, 440 Worldwide Plaza. Just any traction there.

What any movement on those assets? Thanks.

you know, Ronald, Harry had to leave for 3:00. We hung in there as long as we could.

And but he had a hard stop at 3:00. He really is the 1 to hit those questions.

I will have him call you on those. But, like, you know, in terms of what I can say, you know, sort of broadly, is that you know, they are good assets that for different reasons, need to be recapitalized.

I mean, I think that is obvious. you know, Worldwide Plaza, it was the move-out of the main tenant, Cravath.

In the case of 2 Herald, there was the Amazon slash WeWork, you know, lease expiration, I guess, you know, it will be. And 650, you know, that 1 I think, you know, that is still yet to be played out.

I mean, needs to be recapped, but you know, it will be recapped, but, you know, that is that is a good piece of real estate on Fifth Avenue leased to a great tenant. So I look at all of those as assets that have some challenges, not fundamental real estate challenges, but, you know, capitalization challenges, I think we have proven time and time again in that ASP portfolio and otherwise.

An ability to get in and work with the various stakeholders to try to get to a solution for everybody that is the optimal solution on the table. And, you know, we are committed to trying to make it work on each of those assets, but each 1 needs to be restructured.

And either we will be successful or we will not. But, you know, just to reiterate, those are assets that contribute little in the way of earnings and really nothing in the way of, NAV as we perceive it.

We have no recourse to speak of on those assets. And I look at them as just 3 opportunities that we are giving attention to, We are not committing a lot of capital to and probably will not, but, you know, we might.

Under the right set of circumstances, commit some. And, you know, yet to be played out, but we are hanging in there.

And you know, I think the stakeholders recognize we have done you know, all we could do in those circumstances. And I think we are kind of in the you know, in the batter's box, if you will, to be the ones to help put those assets back on safe footing.

And if we do, we may get a surprise to the upside. Helpful.

Thank you.

Sure. I will limit myself to 1 question.

On the concession environment, 1 of your peers has argued it is hard to get free rent down below 1 month per year of lease term which you guys were able to do this year--excuse me, this quarter. this quarter.

The argument being that it is you need the time to build out space, clients kinda resist having double cash rent during this build-out period. And they would rather have higher face rents.

So the question is, how low do you anticipate you can get free rent going forward?

Well, you gotta you gotta differentiate between new tenants coming into the portfolio versus renewal leases. And as I think Marc made the point earlier that you know, the net effectives and the concessions tighten.

As a matter of fact, the concessions tighten When we are doing renewal deals. So assuming that it is a take a typical 5 year renewal, you know, when the market is at its peak, generally, it is free rent is you know, maybe 2 or 3 months.

Today, we are kind of in the 3- to 4-month months. 3 probably being the average on a typical 5-year renewal.

For most of the deals that, you know, these small to midsized deals? New transactions, if it is a 10-year lease, you know, I think that is generally when you know, you I would not be surprised to see free rent ultimately get down to the 10-month free rent for a 10-year transaction.

Okay. Very good.

Thank you. Yep.

Just a quick 1 on the 1 Vanderbilt $0.80 of additional income. I guess, it seems like something that you guys would have had some visibility into.

So I guess why wait until now to talk about the boost to FFO? And then more importantly, what will cause fluctuations over each quarter going forward.

So, like, if the Q2 contribution was $0.35 why is not Q3 to Q4 total, like, over $1?

So the first the first answer is if we had visibility into it and we get affirmation of the treatment, we would include it. So we did not have that until we included it this quarter.

Embedded it all the way through all the rules, auditors, NAREIT, and everybody else involved. So, when that was vetted through, we had eclipsed the threshold, only after the end of the first quarter.

So it would not apply till the second quarter. We that is when we employed it, and we will use it going forward.

What impacts it going forward is most importantly, distributions. As I went through the math earlier, there is a fixed I will call a fixed component of the calc.

And a variable component of the calc. The variable component is cash distribution.

The cash distributions as compared to what would conventionally be GAAP equity pickup. And as cash distributions increase or decrease, does the FFO contribution.

it is almost equivalent to a cash basis of accounting. So as we look forward, we look carefully at distributions.

If we need cash for something, we will hold it back. If we do not, we will distribute more, and those distributions will impact quarter to quarter income FFO recognition.

Okay. Thank you.

And then just on Summit 1 Vanderbilt, you guys were talking about how well it is doing. I know last year, Ascent was offline for part of Q2, but I believe it was online for all of Q2 2026.

So I was just wondering if the Q2 2026 expectations were in line with your expectations and if there is any changes to the full year 2020 expectations.

No. it is Caitlin.

As I said earlier, I think that I started seeing the turn in numbers late May, June. So you know, the latter part of the second quarter.

I think Q3, you are gonna see some good numbers. The downs, I referenced were really January through May or January through part of May.

it is not really Ascent-driven. I mean, we had to reintroduce Ascent because we had it down for you know, for maintenance for a while.

it is back up. it is running.

it is great. Very popular.

And know, that will be a part of what you see in Q3 is the you know, multiple effect of ascent at full throttle, plus ticket sales back to many, many days where we are selling out. Weather's been great.

etc. So I am very optimistic for Summit in, you know, what is a challenging market.

Think if you look around at some of the other observation decks, where foreign tourism, particularly has been substandard for the year. it is made up a little bit by domestic tourism, but it is still down overall.

And I think some of our competitors have had to resort to discounting tickets. We have been able to keep our prices high.

you know, we do not participate in the past program. We are probably the only observation deck I know that does not participate in that program, which generally, you know, discounts tickets just because you know, we have a great following and it serves as a great attraction.

Both for new attendees and repeat attendees. And I think we are gonna have a very good second half of the year.

And whatever we experienced in the first half, we were able to somewhat you know, mitigate through management of variable expenses. I think the team did a great job there.

Okay. Got it.

Thanks.

So the AI leasing is obviously very strong. And I know some of those tenants are large players.

Some of the largest companies in the world, but some of them are not. So, you know, kinda similar to when the, you know, the early days of the Internet, the Internet worked, but not all the companies did, and there is a lot of AI companies.

I am just wondering, from an office landlord's perspective, what are you seeing in terms of you know, credit quality? And, you know, are there AI tenants where you say, oh, I am gonna pass on that 1.

It worries me a little. Alternatively, are there ones where you say, wow.

The growth could be really explosive there. That 1 you know, might be worth a shot.

I am just you know, wondering what you see from the breadth of the AI demand.

Well, let's I think there is a couple things to point out to you. you know, the good news is broadly speaking, the technology industry is back in a big way leasing space in Manhattan.

there is 9.5 million square feet of active tech searches going on right now. Of that, 1.5 million square feet are AI tenants.

So important to differentiate so people do not believe that just because it is tech, therefore, it must be AI. that is not the case.

that is 1. 2, you know, during the .com days, we were very careful about not being overexposed to that industry, and we were and we were very limiting as to, you know, the deals and the size of deals that we did.

So but there is a big difference between what we saw with dot-com tenants during that market period versus the AI tenants that we are seeing today. Most of the tenants that, of any consequence that have come through our doors are firms with you know, that are well capitalized, They have big revenue versus the .com tenants, which many of them had no revenue.

A lot of these tenants have big, big revenue in place But having said that, there will be winners and losers. No doubt about it.

And we have consciously limited our exposure to the AI industry to somewhere between 1% to 2%. Of the portfolio.

And, you know, most of that industry is Midtown South. As far as where the where the tech and AI tenants like to, locate themselves.

And our buildings in that part of town at this moment in time for the foreseeable future, 100% leased. K.

Brett. And then my last question, somebody earlier asked about a alternative FFO metric.

I do not I prefer not to have another FFO metric to worry about, but I might propose something to all the office companies as far as net comparison. So this 18% cash spread is great.

I have done this on your call, and I have done this on other office calls. Right?

I pulled up your Q2 2016 sup and your Q2 2021 sup, and I just look at the rent, the free rent divided by the term, the TI divided by the term. Whatever I look over, it seems like net effective rent goes up, like, 2.5%, 3% a year.

I do not I do not know if it keeps up with OpEx, but I guess my question is, right, when you look at that 18% cash rent spread, which tells us a lot, you know, what would it be if you looked at the annual rents on a net effective basis? You talked about those are spiking up.

I can never see it see it in the number. Does that make sense?

you are asking what you know, I guess I am asking if net effective rents are really going up that much. Because I cannot see it.

You are--okay. The question is Wait.

What is what is net effective rent growth? 18% is the face rent.

what is net what is net effective rent growth? Well, let's let's just go this way.

I mean, if concessions have been stable for the past call it, at least year and a half, So if the base rents are up, you know, materially, your net effect is up materially. I think a measure of it would be you know, but you have to look over a 2, 3 year period if you have FFO growth and AFFO growth that exceeds the FFO growth, that differential largely would be you know, you know, or at least partially driven by, you know, leasing cost savings now.

On first gen at least. Right?

you know, we do not track you know, what do you call it? Net effective.

Growth because it is very hard I will I will give you an example. Just the question becomes, do you amortize all the TI?

Over the period of the lease to calculate net effective, or do you assume some salvage value? Some leases, yes.

Some, no. you know?

And, you know, TI is 1 of the biggest components. And to just assume that all TI is written off over 10 year lease term Mhmm.

I do not think it is accurate. Or it is sort of dependent on the quality of the tenant's installation.

So it is just not that simple. And, you know, I mean, really, the way we I am I am I am striving for like, as higher renewal probability as possible, 75% plus.

And keeping the concessions down to 3 to 6 months on a renewal and TIs of paint and carpet. that is the ultimate.

In which case, you know, you are even if rents are flat, even if rents are flat, replacement rents, your net effectives will be up by almost 100%. So you know, it is and in order to drive the rental rates, it is not just concessions.

you have to invest in your buildings. you have to invest in amenities and lobbies, roofs, everything.

So that is why you know, what may seem like, jeez, I should be looking at 50% net effective growth. Yeah.

But we spend a lot of capital on the buildings themselves in order to drive nominal rents. it is not just about direct leasing costs.

So you know, I think that I mean, we are managing to try and get FFO growth, you know, at a consistent level and I think 3% to 5% a year, you know, nominal growth, anything above that is gravy. And, you know, that or more on cash flow growth.

And you should see that in our numbers as we are you know, as 2026 compares to 2025. And then when we get to 2027 and 2028, I think you will see it.

But, you know, to give you an exact percentage, increase in net effective, we do not have that number. Thank you.