Core Insights - The company reported diversified tenant demand across various industries, with no single segment exceeding 20% of total demand, and signed higher-value new leases with a 2% increase in straight-line value over the lease term [1][5] - The company experienced improved office leasing momentum in Q4, achieving 100,000 square feet of net positive absorption and maintaining stable market rents [3][5] - The multifamily portfolio reached nearly full occupancy with a 5% year-over-year increase in same-property cash NOI, driven by strong demand in high-end Los Angeles assets [4][6] Leasing Activity - In 2025, the company signed 896 office leases totaling 3.4 million square feet, with 224 leases covering 906,000 square feet in Q4, including 274,000 square feet of new leases [2][5] - Office leasing costs averaged $5.76 per square foot per year in Q4, remaining below the average of the company's benchmark group of office REITs [5] Financial Performance - Q4 revenue increased by 1.8% year-over-year to $249 million, with FFO decreasing to $0.35 per share and AFFO to $53 million due to rising interest expenses [12][14] - Same-property cash NOI declined by 1.4% for the quarter, attributed to higher office operating expenses, while G&A remained low at approximately 4.9% of revenue [13] 2026 Guidance - The company provided guidance for 2026, projecting FFO per fully diluted share between $1.39 and $1.45, and net income per diluted common share between negative $0.20 and negative $0.14, primarily reflecting increased interest expenses [4][14] - The guidance does not assume occupancy growth despite positive Q4 results [14] Development and Capital Markets - The company is advancing several development projects, including the conversion of 10900 Wilshire into a mixed-use building and the redevelopment of Landmark Residences, with a construction loan of up to $375 million secured for the latter [9][10] - Management emphasized a strategic focus on acquisitions through joint ventures to maintain balance sheet stability while pursuing high-quality properties [15]