Financial Analysis

Commitments and Contingencies Lease and Contractual Commitments We had $234.5 million of lease and contractual commitments as of December 31, 2025. Lease and contractual commitments represent commitments under signed leases and contracts for operating properties (excluding tenant-funded tenant improvements), contracts for development/redevelopment projects and unfunded joint venture equity contributions agreed to at formation, of which $54.3 million was recorded on our Consolidated Balance Sheets as of December 31, 2025. Contingent Consideration As of December 31, 2024, we had $0.8 million of contingent consideration related to a parcel of acquired development land. The contingent consideration was payable in cash to a third party if and to the extent future development milestones as outlined in the purchase agreement were met. During 2025, the land parcel was sold to a third party. As a result, the contingent consideration is no longer recorded as a liability on our Consolidated Balance Sheets as of December 31, 2025. Environmental Matters Substantially all of our in-service and development properties have been subjected to Phase I environmental assessments and, in certain instances, Phase II environmental assessments. Such assessments and/or updates have not revealed, nor are we aware of, any environmental liability that we believe would have a material adverse effect in our Consolidated Financial Statements. Litigation, Claims and Assessments From time to time, we are a pa …

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Mortgages and Notes Payable Our mortgages and notes payable consisted of the following: December 31, 2025 2024 Secured indebtedness (1) : 5.69% mortgage loan due 2028 $ 200,000 $ 200,000 7.29% mortgage loan due 2028 (2) 44,530 44,965 4.27% (3.61% effective rate) mortgage loan due 2028 (3) 104,681 107,584 4.00% mortgage loan due 2029 83,730 84,712 3.61% (3.19% effective rate) mortgage loan due 2029 (4) 83,748 84,054 3.40% (3.50% effective rate) mortgage loan due 2033 (5) 68,721 69,575 4.60% (3.73% effective rate) mortgage loan due 2037 (6) 117,999 121,296 703,409 712,186 Unsecured indebtedness: 3.875% (4.038% effective rate) notes due 2027 (7) 299,533 299,134 4.125% (4.271% effective rate) notes due 2028 (8) 349,104 348,690 4.200% (4.234% effective rate) notes due 2029 (9) 349,681 349,583 3.050% (3.079% effective rate) notes due 2030 (10) 399,596 399,498 2.600% (2.645% effective rate) notes due 2031 (11) 399,205 399,048 5.350% (5.431% effective rate) notes due 2033 (12) 348,308 7.650% (7.836% effective rate) notes due 2034 (13) 346,318 345,862 Variable rate term loan due 2026 (14) 200,000 Variable rate term loan due 2027 (15) 150,000 150,000 Variable rate term loan due 2029 (16) 200,000 Revolving credit facility due 2028 (16) 25,000 104,000 2,866,745 2,595,815 Less-unamortized debt issuance costs (15,976) (14,442) Total mortgages and notes payable, net $ 3,554,178 $ 3,293,559 __________ (1) Our secured mortgage loans were collateralized by real estate assets with an undeprecia …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans Officer, Management and Director Compensation Programs Officers of the Company participate in an annual non-equity incentive program pursuant to which they are eligible to earn cash payments based on a percentage of their annual base salary in effect for December of the applicable year. Under this component of our executive compensation program, officers are eligible to earn additional cash compensation generally to the extent specific performance-based metrics are achieved during the most recently completed year. The position held by each officer has a target annual incentive percentage that ranges from 35% to 140% of base salary. The more senior the position, the greater the portion of compensation that varies with performance. The percentage amount an officer may earn under the annual non-equity incentive plan is the product of the target annual incentive percentage times an actual performance factor, which can range from zero to 200%. Amounts under our annual non-equity incentive plan are accrued and expensed in the year earned, but are typically paid early in the following year. For payouts, if any, under our annual non-equity incentive program for 2025 that will be made on about March 1, 2026, in lieu of receiving cash payments, executive officers were provided the option to receive all or a portion of their payout in the form of time-based restricted stock that vests ratably on an annual basis over a three-year term. If an executive officer who m …

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Disclosure About Fair Value of Financial Instruments The following summarizes the levels of inputs that we use to measure fair value. Level 1. Quoted prices in active markets for identical assets or liabilities. Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Companys Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets include the fair value of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach utilizing contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Our Consolidated Financial Statements include the operations of the Companys taxable REIT subsidiary, which is not entitled to the dividends paid deduction and is subject to federal, state and local income taxes on its taxable income. The minimum dividend per share of Common Stock required for the Company to maintain its REIT status was $1.13, $1.42 and $1.42 per share in 2025, 2024 and 2023, respectively. Continued qualification as a REIT depends on the Companys ability to satisfy the dividend distribution tests, stock ownership requirements and various other qualification tests. The tax basis of the Companys assets (net of accumulated tax depreciation and amortization) and liabilities was approximately $5.7 billion and $3.9 billion, respectively, as of December 31, 2025 and $5.7 billion and $3.6 billion, respectively, as of December 31, 2024. The tax basis of the Operating Partnerships assets (net of accumulated tax depreciation and amortization) and liabilities was approximately $5.5 billion and $3.9 billion, respectively, as of December 31, 2025 and $5.6 billion and $3.6 billion, respectively, as of December 31, 2024. During the years ended December 31, 2025, 2024 and 2023, the Company qualified as a REIT and incurred no federal income tax expense; accordingly, the only federal income taxes included in the accompanying Consolidated Financial Statements relate to activities of the Companys taxable REIT subsidiary. The Company had no net deferred tax asset or l …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards The Financial Accounting Standards Board (FASB) issued an accounting standards update (ASU) that requires disaggregated disclosure of income statement expenses. Certain expense captions will be disaggregated into specified categories in disclosures within the Notes to Consolidated Financial Statements. The ASU is required to be adopted in our 2027 Annual Report. We do not expect this adoption to have a material effect on our Consolidated Financial Statements. …

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Segment Information Our principal business is the operation, acquisition and development of rental office properties. We evaluate our business by geographic location, which is why our primary geographic locations are included as reportable segments below. The operating results by geographic grouping are regularly reviewed by our chief operating decision maker for assessing performance and other purposes. Our chief executive officer is our chief operating decision maker. There are no material inter-segment transactions. Our accounting policies of the segments are the same as those used in our Consolidated Financial Statements. All operations are within the United States. The following tables summarize rental and other revenues, rental property and other expenses, net operating income and total assets for each of our reportable segments. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Our chief operating decision maker uses net operating income to help assess segment performance and decide how to allocate resources accordingly. Year Ended December 31, 2025 2024 2023 Rental and other revenues: Atlanta $ 144,957 $ 146,168 $ 143,741 Charlotte 93,392 88,003 85,984 Nashville 156,603 169,158 171,797 Orlando 57,131 58,442 58,002 Raleigh 180,735 173,156 181,964 Richmond 36,192 35,265 35,918 Tampa 88,038 98,887 99,421 Rental and o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Equity Common Stock Issuances During 2023, we entered into separate equity distribution agreements in which the Company may offer and sell up to $300.0 million in aggregate gross sales price of shares of Common Stock. During 2025, the Company issued 1.9 million shares of Common Stock under its equity distribution agreements at an average gross sales price of $31.86 per share and received net proceeds, after sales commissions, of $60.7 million. During 2024, the Company issued 1.6 million shares of Common Stock under its equity distribution agreements at an average gross sales price of $32.71 per share and received net proceeds, after sales commissions, of $51.3 million. As of December 31, 2025, the Company had 90.1 million remaining shares of Common Stock authorized to be issued under its charter. Common Stock Dividends Dividends of the Company declared per share of Common Stock were $2.00 for each of the years ended December 31, 2025, 2024 and 2023. The following table sets forth the Companys estimated taxability to the common stockholders of dividends per share for federal income tax purposes: Year Ended December 31, 2025 2024 2023 Ordinary dividend $ 1.15 $ 1.67 $ 1.58 Capital gains 0.85 0.18 0.42 Return of capital 0.15 Total $ 2.00 $ 2.00 $ 2.00 The Companys tax returns have not been examined by the Internal Revenue Service (IRS) and, therefore, the taxability of dividends is subject to change. Preferred Stock The following table sets forth the Companys outstanding Preferr …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On January 9, 2026, we acquired Bloc 83, a two-building, 492,000 square foot mixed-use asset in CBD Raleigh, through the formation of a joint venture (Bloc 83 joint venture) with the North Carolina Investment Authority in which we initially own a 10.0% interest. We retained an option to increase our ownership interest to 50.0%. The Bloc 83 joint venture has an anticipated total investment of $210.5 million, which includes planned near-term building improvements and transaction costs. The joint ventures planned total investment will be funded with $21.0 million of common equity contributed by us and $189.5 million of common equity contributed by the North Carolina Investment Authority. The North Carolina Investment Authority has the right to sell to us its interest in the joint venture under certain circumstances for fair market value at any time after the fifth anniversary of the formation date. On January 9, 2026, we expanded our Dallas market presence by acquiring The Terraces, a 173,000 square foot office building in the Preston Center BBD of Dallas, through the formation of a joint venture (The Terraces joint venture) with Granite in which we own an 80.0% interest. The Terraces joint venture has an anticipated total investment of $109.3 million, which includes planned near-term building improvements and transaction costs. The joint ventures planned total investment will be funded with $64.3 million of preferred equity contributed by us, $36.0 million of …

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Mortgages and Notes Payable The following table sets forth our mortgages and notes payable: June 30, 2026 December 31, 2025 Secured indebtedness $ 699,176 $ 703,409 Unsecured indebtedness 2,831,736 2,866,745 Less-unamortized debt issuance costs (15,304) (15,976) Total mortgages and notes payable, net $ 3,515,608 $ 3,554,178 As of June 30, 2026, our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $1,288.1 million. Our $750.0 million unsecured revolving credit facility is scheduled to mature in January 2028 (but can be extended for two additional six-month periods at our option assuming no defaults have occurred). The interest rate on our revolving credit facility is SOFR plus 85 basis points, based on current credit ratings. The annual facility fee is 20 basis points. The interest rate and facility fee are based on the higher of the publicly announced ratings from Moodys Investors Service or Standard & Poors Ratings Services. The interest rate may be adjusted upward or downward by 2.5 basis points depending upon whether or not we achieve certain pre-determined sustainability goals with respect to the ongoing reduction of greenhouse gas emissions. There were no amounts outstanding under our revolving credit facility as of June 30, 2026 and July 21, 2026, respectively. As of both June 30, 2026 and July 21, 2026, we had $0.1 million of outstanding letters of credit, which reduce the availability on our revolving credit faci …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Share-Based Payments During the six months ended June 30, 2026, the Company granted 271,458 shares of time-based restricted stock and 160,796 shares of total return-based restricted stock with weighted average grant date fair values per share of $22.80 and $24.02, respectively. We recorded share-based compensation expense of $1.0 million and $1.3 million during the three months ended June 30, 2026 and 2025, respectively, and $7.4 million and $6.3 million during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, there was $6.3 million of total unrecognized share-based compensation costs, which will be recognized over a weighted average remaining contractual term of 2.3 years.

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Disclosure About Fair Value of Financial Instruments The following summarizes the levels of inputs that we use to measure fair value. Level 1. Quoted prices in active markets for identical assets or liabilities. Our Level 1 asset is our investment in marketable securities that we use to pay benefits under our non-qualified deferred compensation plan. Our Level 1 liability is our non-qualified deferred compensation obligation. The Companys Level 1 noncontrolling interests in the Operating Partnership relate to the ownership of Common Units by various individuals and entities other than the Company. Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Our Level 2 assets include the fair value of our mortgages and notes receivable. Our Level 2 liabilities include the fair value of our mortgages and notes payable and any interest rate swaps. The fair value of mortgages and notes receivable and mortgages and notes payable is estimated by the income approach, which uses contractual cash flows and market-based interest rates to approximate the price that would be paid in an orderly transaction between market participants. The fair value of any interest rate swaps is determined using the market standard methodology of netting the …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards The Financial Accounting Standards Board (FASB) issued an accounting standards update (ASU) that requires disaggregated disclosure of income statement expenses. Certain expense captions will be disaggregated into specified categories in disclosures within the Notes to Consolidated Financial Statements. The ASU is required to be adopted starting with our 2027 Annual Report on Form 10-K. We do not expect this adoption will have a material effect on our Consolidated Financial Statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Information Our principal business is the operation, acquisition and development of rental office properties. We evaluate our business by geographic location, which is why our primary geographic locations are included as reportable segments below. The operating results by geographic grouping are regularly reviewed by our chief operating decision maker for assessing performance and other purposes. Our chief executive officer is our chief operating decision maker. There are no material inter-segment transactions. Our accounting policies of the segments are the same as those used in our Consolidated Financial Statements. All operations are within the United States. The following tables summarize rental and other revenues, rental property and other expenses and net operating income for each of our reportable segments. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Our chief operating decision maker uses net operating income to help assess segment performance and decide how to allocate resources accordingly. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Rental and other revenues: Atlanta $ 36,403 $ 36,299 $ 72,917 $ 71,893 Charlotte 29,244 21,910 56,892 43,966 Dallas 3,367 6,024 Nashville 36,998 39,653 75,197 79,197 Orlando 14,660 14,544 29,201 28,840 Raleigh 52,529 44,815 104,133 89,309 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On July 22, 2026, the Company declared a cash dividend of $0.50 per share of Common Stock, which is payable on September 9, 2026 to stockholders of record as of August 17, 2026. On July 7, 2026, the Midtown East joint venture obtained a two-tranche secured mortgage loan from a third party lender. The first tranche consists of a $44.8 million secured loan that was used to repay the $43.8 million balance on a secured construction loan that we previously provided the joint venture. The second tranche consists of a $10.9 million non-revolving line of credit. As of July 7, 2026, less than $0.1 million was drawn on the line of credit. Both tranches bear interest at SOFR plus 205 basis points and are scheduled to mature in July 2036. In connection with this loan, the Midtown East joint venture obtained interest rate hedge contracts that effectively fix the weighted average rate of both tranches at 6.3%.

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