Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 was $0.52 per share, with an annualized operating return on equity of 12% [6] - Full year 2025 adjusted net investment income per share was $2.18, representing an operating return on equity of 12.7% [8] - The company reported a net income per share of $0.32 for Q4 and $1.81 for the full year [35] Business Line Data and Key Metrics Changes - In Q4, 97% of investments were in first lien loans, indicating a focus on the top of the capital structure [29] - Total commitments in Q4 amounted to $242 million, with total fundings of $197 million across five new portfolio companies [28] - The weighted average yield on debt and income-producing securities at amortized cost decreased from 11.7% to 11.3% quarter-over-quarter [30] Market Data and Key Metrics Changes - The weighted average loan-to-value (LTV) within the portfolio was approximately 41%, remaining stable year-over-year [16] - The portfolio companies demonstrated LTM revenue and earnings growth rates of approximately 9% and 12%, respectively [17] - The company’s exposure to enterprise software comprises approximately 40% of the total portfolio by fair value [19] Company Strategy and Development Direction - The company emphasizes a thematic investment approach, focusing on durable business models and the impact of AI on the market [10][12] - The formation of a joint venture, Structured Credit Partners, aims to invest in broadly syndicated loan CLOs, enhancing diversification and investment flexibility [40] - The company is positioned to capitalize on market dislocations and has significant liquidity to support investment activities [21][46] Management's Comments on Operating Environment and Future Outlook - Management believes the market is in the early stages of a gradual rebalancing of capital, with opportunities arising from market volatility [45] - The anticipated returns from the newly established joint venture are expected to support the earnings profile [42] - The company expects to target a return on equity on net investment income for 2026 of 11%-11.5% [42] Other Important Information - The company declared a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.01 per share [23] - The net asset value per share at year-end was $16.98, down from $17.11 in Q3 [22] - The company maintains a disciplined credit selection process, with a focus on businesses with robust unit economics [26] Q&A Session Summary Question: How much of the portfolio has turned over since 2022? - The company has about 20%-25% of NAV from pre-2022 vintages, with the majority of the portfolio originated in 2023 and 2024 [49] Question: How do you see the deployment environment evolving with AI? - The company is thematic investors and is rotating capital to businesses that will benefit from AI, focusing on those with strong moats [52][54] Question: Will the joint venture focus on BSL CLOs? - The joint venture will primarily involve broadly syndicated loans, with no management fees at the CLO or joint venture level, enhancing shareholder returns [58] Question: What is the current investment pipeline and its impact from public software space disruptions? - The company has had many conversations with sponsors and is well-positioned to take advantage of any dislocation in the market [70] Question: What was driving the unrealized losses in the portfolio? - Unrealized losses were driven by credit spread impacts and specific reversals from portfolio companies [72]

Core Viewpoint - Tonner Drones has secured a strategic investment in SpaceX, aiming to diversify its asset base and capture value in high-growth technological sectors [1][2][3]. Group 1: Investment Strategy - The investment in SpaceX is funded through a strategic reallocation of €1.25 million from the sale of Tonner Drones' stake in Donecle, allowing the company to leverage its liquidity [3]. - This investment marks a significant milestone in the company's strategy to transition from financial stabilization to growth and portfolio optimization [2][6]. Group 2: SpaceX Overview - SpaceX is a leading aerospace manufacturer and space transport provider, dominating the global launch market with its Falcon and Starship platforms [4]. - The company also provides high-speed connectivity worldwide through its Starlink constellation, which is essential for deep-space exploration infrastructure [4]. Group 3: Future Outlook - Tonner Drones anticipates a potential IPO for SpaceX, which is expected to be a major catalyst for the valuation of its investment [5]. - The investment complements Tonner Drones' existing portfolio in the drone sector, which includes stakes in Elistair, Donecle, and Diodon, along with ongoing R&D in warehouse inventory management solutions [5][6].

Core Viewpoint - Ford is taking a significant $19.5 billion writedown due to reduced electric vehicle (EV) production and demand, marking one of the largest financial impacts on a carmaker to date [1][2]. Group 1: Financial Impact - The $19.5 billion writedown includes $6 billion allocated to closing a joint venture with South Korean company SK Group, which was intended for a large battery factory in Kentucky [3]. - Ford's decision to scrap plans for large battery-powered pickup trucks is a response to "lower than expected" demand, resulting in substantial financial losses [1][2]. Group 2: Strategic Shift - The company will redirect investments towards conventional trucks and vans, as well as more affordable EVs, while also launching a new battery energy storage business [2]. - Ford's CEO, Jim Farley, emphasized that the changes are driven by customer demand to create a more resilient and profitable company [3][4]. Group 3: Regulatory Environment - The shift in strategy coincides with a regulatory change under President Donald Trump, who has weakened emission reduction rules and ended tax credits for EV purchases, contributing to decreased demand [4][5]. - Ford anticipates that about 50% of its global volume will consist of hybrid vehicles, extended-range EVs, and fully electric vehicles by 2030, an increase from 17% this year [7]. Group 4: Earnings Guidance - Despite the writedown, Ford has raised its earnings guidance for the year to approximately $7 billion, aligning with earlier targets [7]. - The company plans to implement most changes in the fourth quarter, with a cash payment of about $5.5 billion primarily occurring next year and the remainder by 2027 [5].

Financial Data and Key Metrics Changes - Funds from Operations (FFO) per share for Q3 2025 was $1.74, which is $0.04 above the forecast and $0.02 above market consensus [4][37] - The midpoint of the earnings guidance for the full year 2025 was raised by $0.03, now projected at $6.89 to $6.92 per share [4][39] - Occupancy in the same property pool increased by 20 basis points from the previous quarter, reaching 86.6% [20][37] Business Line Data and Key Metrics Changes - Over 1.5 million square feet of leasing was completed in Q3 2025, a 39% increase compared to Q3 2024 and 130% of the last five-year average for the same quarter [5][4] - Year-to-date leasing activity reached 3.8 million square feet, which is 14% greater than the first three quarters of 2024 [5] - The overall mark-to-market on leases signed this quarter increased by almost 7%, with notable increases in Boston (12%) and New York (7%) [23] Market Data and Key Metrics Changes - Office transaction volume in private markets improved, with significant office sales reaching $12.9 billion in Q3 2025, up 6% from Q2 2025 and 55% from Q3 2024 [8] - Office utilization data showed a 13% increase over the last year, with September 2025 utilization at 26.3% below 2019 levels [6] - Direct vacancy for premier workplaces in key markets is 11.7%, significantly lower than the broader market [10] Company Strategy and Development Direction - The company aims to sell 27 non-strategic assets for approximately $1.9 billion by year-end 2027, with 23 transactions closed or underway totaling roughly $1.25 billion in net proceeds [7][8] - Focus on increasing portfolio concentration in premier workplace assets located in core gateway markets, which are outperforming the broader office market [10][11] - Plans to grow FFO through selective new developments, particularly in multifamily projects, with a financial partner [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are growing and utilizing their spaces more intensively, leading to positive leasing market conditions [16] - The company expects to achieve a 200 basis point increase in occupancy by the end of 2026, supported by a strong leasing pipeline [49][66] - The debt and equity markets are becoming more constructive on the office sector, improving capital availability and pricing [16][36] Other Important Information - The company recorded $212 million in impairments related to assets part of the strategic sales program [38] - The company is actively pursuing high-quality development opportunities with expected cash yields over 8% [12] Q&A Session Summary Question: Thoughts on reallocating capital into premier locations and smaller markets like Seattle and LA - Management acknowledged that LA and Seattle are weaker markets with no current development opportunities, but would consider acquisitions if they arise [44][45] Question: Confidence level regarding occupancy increases in 2026 - Management expressed confidence in renewing leases and maintaining leasing velocity, projecting a 200 basis point increase in occupancy by the end of 2026 [47][49] Question: Recovery in San Francisco and Salesforce's commitment - Management noted that AI demand is focused on low-rise buildings south of Mission Street, and Salesforce's commitment is seen as positive for job growth and office demand [50][55] Question: Percentage of pre-pandemic leases still to be addressed - Management indicated that most growth is coming from existing clients expanding their space, with limited rollover risk [58][63]

Core Insights - BMO is optimizing its U.S. branch network by selling 138 branches to First Citizens Bank and plans to open 150 new branches over the next five years in markets with strong growth potential [2][3][9] Group 1: Strategic Initiative - The sale of branches is part of BMO's strategy to reinvest in markets with high client engagement and long-term growth potential [1][4] - The branches being sold are located in several states including North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, Idaho, and select areas in Minnesota, Oregon, and Illinois [2] Group 2: Financial Details - First Citizens Bank will assume approximately $5.7 billion in deposits and purchase about $1.1 billion in loans, with a net deposit premium of around 5% [5] - BMO expects to incur a goodwill charge of approximately US$75 million (CAD$104 million) and a tax expense of about US$85 million (CAD$117 million) related to the transaction [5] Group 3: Future Plans - BMO's new branches will focus on markets where it can achieve critical mass and enhance its offerings in Personal and Business Banking, Commercial Banking, and Wealth Management [3][4] - The new branch openings will be primarily California-centric but will not be limited to that state [3] Group 4: Transaction Timeline - The transaction is subject to regulatory approvals and is expected to close in mid-2026 [6] - Until the transaction is finalized, BMO customers are advised to continue using their existing banking services [6]

Core Viewpoint - Affiliated Managers Group, Inc. (AMG) has agreed to sell its interest in Comvest Partners' private credit business to Manulife Financial Corporation for nearly $285 million in an all-cash transaction, expected to close in Q4 2025, subject to customary conditions [1][8]. Group 1: AMG's Strategic Move - Comvest is a prominent investment firm specializing in private equity and direct lending, with a 25-year history of providing capital to middle-market companies in North America [2]. - AMG's partnership with Comvest facilitated significant growth, increasing Comvest's assets under management from $2 billion to $14 billion over five years [2][8]. - As part of the transaction, AMG will realize a substantial gain on its investment while retaining interests in certain existing private credit funds and its stake in Comvest's private equity business [3][8]. Group 2: AMG's Capital Reallocation Strategy - AMG's CEO, Jay C. Horgen, expressed satisfaction with the partnership's positive impact on Comvest's growth and stakeholder outcomes [4]. - This divestiture aligns with AMG's strategy to reallocate capital into more lucrative investment opportunities, following the recent sale of its stake in Peppertree Capital Management for $240 million [4]. - In 2022, AMG also divested stakes in Veritable LP and Baring Private Equity Asia, indicating a trend of strategic divestitures [4]. Group 3: AMG's Market Performance - Over the past six months, AMG shares have increased by 21.6%, contrasting with a 0.7% decline in the industry [5]. - Currently, AMG holds a Zacks Rank of 3 (Hold), reflecting its market position [6].

Market Outperformance & Capital Reallocation - Emerging markets and non-dollar European equities/fixed income are expected to continue outperforming in the second half of the year [2] - Capital is being reallocated away from the US towards regions with larger fiscal stimulus, driving growth in European and emerging market economies [2] - This capital reallocation is pushing emerging market equities to record elevated levels [3] - Diversification away from the US into the rest of the world presents a target-rich environment for investment [6] - Low ownership in non-US markets creates great opportunities for investors allocating capital [7] Monetary Policy & Disinflation - A weaker US dollar is creating a disinflationary backdrop for the rest of the world [4][5] - Emerging market central banks are cutting rates more aggressively, with the percentage of countries cutting rates jumping from 28% to over 60% in one month [4][5] - The industry anticipates a multiyear, virtuous cycle where central bankers can lower rates and focus on growth [4] Trade & Geopolitics - Trade negotiations and the tariff backdrop are central to emerging markets investment performance [8][9] - The US administration's decisions regarding trade will send an important message to the rest of the world [9] - The US has effectively weaponized its current account and capital account, discouraging inward investment [10]