I N V E S T O R P R E S E N T A T I O N M A R C H 2 0 2 6 EBITDA and Adjusted EBITDA Management uses EBITDA and Adjusted EBITDA to facilitate internal and external comparisons to our historical operating results and in making operating decisions. EBITDA and Adjusted EBITDA are widely used by investors, lenders, credit and equity analysts in the valuation, comparison, and investment recommendations of companies. Additionally, EBITDA and Adjusted EBITDA are utilized by our Board of Directors to evaluate manag ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is about 3% above initial expectations [3] - Same-store cash NOI increased by 0.5% compared to 2024 [18] - Fourth quarter FFO per share was $0.47, a decrease of approximately $0.02 compared to Q3 2025 [18] Business Line Data and Key Metrics Changes - Office segment same-store NOI increased by 2.3% for the year, driven by higher base rent and improved expense recoveries [19] - Retail segment same-store NOI increased by 1.2% for the year, reflecting strong growth in the first half of 2025 [19] - Multifamily segment declined by 3.2% for the year due to flat to modestly lower rents and elevated concessions [20] - Mixed-use segment declined by 6.7% in 2025, impacted by softer hotel demand in Waikiki [20] Market Data and Key Metrics Changes - The office portfolio ended the quarter 83% leased, with same-store office portfolio at 86% leased, up about 150 basis points from Q3 [6] - Retail segment ended the year at 98% leased, with positive cash and GAAP leasing spreads [10] - Multifamily ended the year 95.5% leased, with approximately 1% net effective rent growth year over year [11] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and commenced revenue [16] - Retail momentum will be maintained by keeping centers full and managing expirations [16] - The company plans to manage through the multifamily supply cycle with disciplined revenue management and cost control [16] - The focus will be on prudent hotel operations while responding to market demand [16] Management's Comments on Operating Environment and Future Outlook - Management believes that coastal infill locations and high-quality real estate position the company to capture demand as it materializes [5] - The company views 2026 as an opportunity to build upon the progress made in 2025, with a focus on operational execution and long-term value creation [15][16] - Management expressed frustration with the current share price, indicating that it does not reflect the intrinsic value of the company's assets [14] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [15] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [22][23] Q&A Session Summary Question: Regarding elevated TIs for office renewals - Management acknowledged that higher capital burdens for office leasing are expected to moderate over time as occupancy improves [35][36] Question: Timeline to achieve target leverage of 5.5x - Management indicated that leasing up La Jolla Commons 3 and One Beach will help achieve the target leverage [40] Question: Steps to reinvigorate stock price - Management is open to strategic asset sales if they reflect long-term value but will not sell at a discount [42][43] Question: Guidance assumptions for office segment lease rates - Management reported that 68,000 sq ft has been signed year-to-date, with a significant pipeline of leasing activity [49] Question: Credit reserves in guidance - Management clarified that credit reserves are a conservative measure and not indicative of specific tenant concerns [84]

Portfolio Overview - The company's total annualized cash NOI is $437892 thousand, with ISHC contributing 613% ($268592 thousand), OM contributing 170% ($74256 thousand), SHOP contributing 136% ($59760 thousand), Triple-Net Leased Properties contributing 70% ($30632 thousand), and Debt Security Investment contributing 11% ($4652 thousand)[10] - The weighted average lease term for Outpatient Medical (OM) properties is 49 years, and for Triple-Net Leased Properties, it is 133 years[10] Same-Store NOI Performance - Total Same-Store NOI increased by 139% from $86835 thousand in Q2 2024 to $98911 thousand in Q2 2025[11] - Total Year-to-Date Same-Store NOI increased by 145% from $168902 thousand on 6/30/2024 to $193387 thousand on 6/30/2025[11] - SHOP Same-Store NOI increased by 230% in Q2 and 266% YTD[11] Earnings Highlights - NAREIT FFO per share - diluted increased by 281% from $032 in Q2 2024 to $041 in Q2 2025[12] - Normalized FFO per share - diluted increased by 273% from $033 in Q2 2024 to $042 in Q2 2025[12] ISHC Performance - ISHC Same-Store NOI increased by 183% in Q2 and 190% YTD[11, 17] - ISHC average occupancy increased from 867% to 889% in Q2 2025 compared to Q2 2024[17] Outpatient Medical Performance - Outpatient Medical Same-Store NOI increased by 14% in Q2 and 17% YTD[11, 22] - Outpatient Medical ending occupancy decreased slightly from 919% to 917% in Q2 2025 compared to Q2 2024[22] Triple-Net Leased Properties - Triple-Net Leased Properties Same-Store NOI increased by 14% in Q2, remaining flat YTD[11, 31] - Triple-Net Leased Properties average operator occupancy increased slightly from 880% to 889% in Q2 2025 compared to Q2 2024[31] 2025 Guidance - The company projects a FY 2025 Total Portfolio Same-Store NOI Growth of 110% - 140%[49]

Portfolio Overview - The company's total annualized cash NOI is $405.128 million, with ISHC contributing $239.768 million (59.2%), OM contributing $81.172 million (20.0%), SHOP contributing $48.364 million (11.9%), Triple-Net Leased Properties contributing $29.900 million (7.4%), and Debt Security Investment contributing $5.924 million (1.5%) [10] - The portfolio consists of 294 properties, including 125 Integrated Senior Health Campuses (ISHC), 81 Outpatient Medical (OM) properties, 69 Senior Housing Operating Properties (SHOP), and 19 Triple-Net Leased Properties [10] Same-Store NOI Performance - Total Same-Store NOI increased by 15.1% from $82.067 million in Q1 2024 to $94.476 million in Q1 2025 [11] - ISHC Same-Store NOI increased by 19.8% from $49.086 million to $58.820 million [11] - SHOP Same-Store NOI increased significantly by 30.7% from $7.867 million to $10.286 million [11] - OM Same-Store NOI increased by 2.0% from $17.870 million to $18.227 million [11] - Triple-Net Leased Properties Same-Store NOI decreased slightly by 1.4% from $7.244 million to $7.143 million [11] Earnings Highlights - NAREIT FFO per share - diluted increased by 16.7% from $0.30 in Q1 2024 to $0.35 in Q1 2025 [12] - Normalized FFO per share - diluted increased by 26.7% from $0.30 in Q1 2024 to $0.38 in Q1 2025 [12] 2025 Guidance - The company projects a FY 2025 Total Portfolio Same-Store NOI Growth between 9.0% and 13.0% [48] - The company anticipates NAREIT FFO per diluted share between $1.49 and $1.55, and Normalized FFO per diluted share between $1.58 and $1.64 for FY 2025 [48]