Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is approximately 3% above initial expectations [3] - Fourth quarter FFO per share was $0.47, a decrease of approximately $0.02 compared to Q3 2025, primarily due to non-recurrence of termination fees recognized in Q3 [20][21] - Same-store cash NOI for the full year increased by 0.5% compared to 2024, with office segment increasing by 2.3% and retail by 1.2%, while multifamily declined by 3.2% [21][22] Business Line Data and Key Metrics Changes - The office segment showed continued progress with same-store office NOI increasing just over 1% for the quarter and nearly 2.5% for the full year [8][21] - Retail segment ended the year at 98% leased, with fourth quarter leasing totaling 43,000 sq ft and positive cash and GAAP leasing spreads [11] - Multifamily segment ended the year 95.5% leased, achieving approximately 1% net effective rent growth year over year, despite competitive leasing conditions [12][13] Market Data and Key Metrics Changes - In West Coast office markets, signs of stabilization and gradual improvement in leasing activity were noted, particularly in San Diego and San Francisco [5][6] - The overall office portfolio ended the quarter 83% leased, with same-store office portfolio at 86%, up about 150 basis points from Q3 [7][11] - Retail availability is expected to remain near record lows nationally, supporting asking rents [12] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and maintaining retail momentum by managing expirations and focusing on tenant quality [18] - The strategy includes managing through the multifamily supply cycle with disciplined revenue management and cost control [18] - The company is focused on maintaining a strong balance sheet and improving valuation over time [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainty but believes coastal infill locations and high-quality real estate position the company to capture demand as it materializes [5] - The outlook for 2026 includes a FFO guidance range of $1.96-$2.10 per share, with a midpoint of $2.03, reflecting a conservative approach to leasing velocity and market conditions [25][32] - Management expressed frustration with the current share price, indicating that the public market valuation does not reflect the intrinsic value of the company's assets [16] 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 [17] - 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 [23][24] Q&A Session Summary Question: Inquiry about elevated TIs for renewals and demand environment - Management acknowledged that higher capital burdens for office leasing are expected to moderate as occupancy improves and availability tightens [36] Question: Timeline to achieve target leverage of 5.5x - Management indicated that leasing up La Jolla Commons 3 and One Beach would help achieve the target leverage [40] Question: Potential strategic asset sales to improve stock valuation - Management stated they would consider asset sales at favorable prices but would not sell at a discount just to check a box [42][43] Question: Guidance assumptions for office segment lease rates - Management reported that 68,000 sq ft has been signed in 11 deals year-to-date, with a significant pipeline of additional leasing activity [48] Question: Credit reserves and tenant health - Management clarified that the credit reserves are a conservative measure and not indicative of specific tenant concerns [84]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is approximately 3% above initial expectations [3] - Fourth quarter FFO per share was $0.47, a decrease of about $0.02 compared to Q3 2025, primarily due to non-recurrence of termination fees recognized in Q3 [20] - Same-store cash NOI for the full year increased by 0.5% compared to 2024, with office increasing by 2.3%, retail by 1.2%, multifamily declining by 3.2%, and mixed-use declining by 6.7% [21][22] Business Line Data and Key Metrics Changes - The office segment saw continued leasing progress, with same-store office NOI increasing just over 1% for the quarter and nearly 2.5% for the full year [8] - Retail segment ended the year at 98% leased, with positive cash and GAAP leasing spreads for the quarter, and leasing spreads for the year were 7% on a cash basis and 22% on a GAAP basis [11] - Multifamily segment ended the year 95.5% leased, achieving approximately 1% net effective rent growth year over year, despite competitive leasing conditions [12][13] Market Data and Key Metrics Changes - In West Coast office markets, signs of stabilization and gradual improvement in leasing activity were noted, with vacancy trends showing early signs of stabilization [6][7] - The company reported that occupancy averaged roughly 82% in the mixed-use segment, with RevPAR down approximately 7% to about $296 due to softer tourism trends [22] - Retail availability is expected to remain near record lows nationally, supporting asking rents [12] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and maintaining retail momentum by managing expirations and focusing on tenant quality [18] - The strategy includes managing through the multifamily supply cycle with disciplined revenue management and cost control [18] - The company is focused on maintaining a strong balance sheet and improving valuation over time, with a target to achieve long-term net debt to EBITDA of 5.5x or below [24][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's coastal infill locations and high-quality real estate positioning to capture demand as it materializes [5] - The outlook for 2026 includes a FFO guidance range of $1.96-$2.10 per share, with a midpoint of $2.03, reflecting a conservative approach to guidance [25][19] - Management acknowledged macroeconomic uncertainties but emphasized the importance of consistent operational execution and cash flow durability [16] 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 [17] - 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 [23][24] Q&A Session Summary Question: Regarding elevated TIs for renewals, is this a strategic decision or reflective of weak demand? - Management indicated that higher capital burdens for office leasing are expected to moderate as occupancy improves and availability tightens, with specific examples of tenant renewals driving elevated TIs [36][37] Question: What is the timeline to achieve the target leverage of 5.5x? - Management stated that leasing up La Jolla Commons III and One Beach will help achieve the target leverage, aiming for a timeline as soon as those properties are leased up [40] Question: Are there any strategic asset sales planned to improve stock valuation? - Management remains pragmatic about asset sales, willing to sell at fair value but not at a discount, focusing on discipline and long-term value creation [42][43] Question: What is the current status of leasing activity and tenant types? - Management reported a diverse range of high-quality tenants driving demand, with significant leasing activity at La Jolla Commons III and One Beach [72][73] Question: Can you elaborate on the credit reserves included in guidance? - Management clarified that the credit reserves are a conservative measure, with no acute concerns about specific tenants, but a general reserve for potential issues [84][85] Question: What is the path back to 90% occupancy in the office segment? - Management believes achieving 90% occupancy is reasonable within two years, emphasizing the investments made in spec suites and the quality of inventory available [86][88]

Core Insights - JLL Income Property Trust has announced the sale of Kingston at McClean Crossing, a 319-unit apartment community in McClean, VA, for an undisclosed amount, aligning with its strategy of capital recycling and reinvestment into higher-performing properties [1][2]. Group 1: Company Strategy and Performance - The sale supports JLL Income Property Trust's long-term strategy of harvesting gains and reinvesting in property sectors that are better positioned for future returns [2]. - Over its 13-year history, the company has sold more than 50 properties totaling over $1.3 billion, maintaining a trading value within 1% of the most recent independent appraised value [3]. - The company aims to increase its capital available for new investments and redeploy into more core, stabilized assets during a new market cycle for real estate [3]. Group 2: Portfolio Composition - After the sale, JLL Income Property Trust's allocation to residential investments remains significant, with $2.5 billion in residential sector investments, which constitutes 38% of its total $6.9 billion diversified portfolio [4]. - The portfolio includes high-quality, income-producing residential, industrial, grocery-anchored retail, healthcare, and office properties located in the United States [5]. Group 3: Company Background - JLL Income Property Trust is an institutionally managed, daily NAV REIT with a growing portfolio of real estate investments, sponsored by a leading real estate services firm [5]. - LaSalle Investment Management, a subsidiary of JLL, manages $86.4 billion in assets globally, indicating the scale and reach of the investment management capabilities [6].

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]

FOURTH QUARTER 2025 Supplemental Information Investor and Media Contact American Assets Trust, Inc. Robert F. Barton Executive Vice President and Chief Financial Officer 858-350-2607 with favorable supply/demand characteristics Office Retail Multifamily Mixed-Use Market Square Feet Square Feet Units Square Feet Suites San Diego 1,802,809 1,322,200 1,645 (1) — — Bellevue 1,028,470 — — — — Portland 930,903 44,236 657 — — San Antonio — 588,148 — — — San Francisco 511,493 35,097 — — — Oahu — 430,288 — 93,925 36 ...

Wall Street analysts forecast that UDR (UDR) will report quarterly earnings of $0.64 per share in its upcoming release, pointing to a year-over-year increase of 1.6%. It is anticipated that revenues will amount to $429.5 million, exhibiting an increase of 2.2% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections dur ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter net loss of $36.9 million, or $0.21 per share, with FFO totaling $14.6 million, or $0.08 per diluted share, in line with consensus estimates [24] - Property level NOI was $70 million, slightly below forecast due to increased operating costs [25] - The company anticipates 2026 FFO at a midpoint of $0.55 per diluted share, representing a 5.8% increase compared to 2025 [27] Business Line Data and Key Metrics Changes - The wholly owned core portfolio is 88.3% occupied and 90.4% leased, with leasing activity for the year approximating 1.6 million sq ft [3][4] - The company executed 415,000 sq ft of leases in the fourth quarter, including 157,000 sq ft in the wholly owned portfolio [4] - The annual tour volume in 2025 outpaced 2024 by 20% in physical tours and 45% on a square footage basis [6][7] Market Data and Key Metrics Changes - In Philadelphia, the largest sub-market, occupancy is at 95% and leasing at 97%, with only 6% of space rolling through 2028 [7] - The company captured 30% market share of new leasing activity in Market West and University City, significantly outperforming its previous 15% share [8] - The Pennsylvania suburbs are 89.4% leased, with Radnor at 91% [9] Company Strategy and Development Direction - The 2026 business plan focuses on returning to earnings growth, stabilizing One Uptown and 3151, and an accelerated sales program to reduce debt [16] - The company plans to maintain minimal balances on its $600 million unsecured line of credit and aims to return to investment-grade metrics [10] - The sales activity target for 2026 is projected between $280 million and $300 million, with an average cap rate around 8% [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating platform enables capitalization on improving real estate market conditions, with expectations for further improvement in 2027 [37] - The company is optimistic about the leasing activity and market dynamics, particularly in CBD Philadelphia and University City [59] - Management highlighted the importance of executing the sales program to generate liquidity and improve credit metrics [39] Other Important Information - The company has no unsecured bonds maturing until November 2027 and plans to refinance higher-priced bonds to reduce interest costs [10] - The company is actively evaluating recapitalization opportunities for joint ventures, with plans to maintain a minority stake [23] - The anticipated redevelopment of an existing ATX building is expected to cost between $30 million and $40 million, with a potential cash yield north of 8% [70] Q&A Session Summary Question: What is the hurdle for refinancing bonds? - Management indicated that the focus is on executing the sales program to generate liquidity and improve credit metrics before considering bond refinancing [39] Question: How will the $125 million earmarked for debt or share repurchase be allocated? - The primary objective is to reduce leverage first, with share buybacks considered only after achieving debt reduction goals [40][41] Question: Is there a part of the portfolio that is undervalued? - Management believes the entire portfolio is undervalued and is evaluating which assets to sell based on market conditions and growth potential [46] Question: What is the status of the life science incubator space? - There are signs of activity and expansion in the life science sector, particularly in cell and gene therapy, with a healthy pipeline of tenants [50][51] Question: What is the overall pipeline and demand by market? - The company has a robust pipeline of 1.5 million sq ft, with strong demand in CBD Philadelphia and University City, and a mix of 60% office and 40% life science in development [61][62]

Financial Data and Key Metrics Changes - The company reported a net loss of $36.9 million, or $0.21 per share, for Q4 2025, with FFO totaling $14.6 million, or $0.08 per diluted share, in line with consensus estimates [24] - Property level NOI was $70 million, which was $1 million below forecast due to increased operating costs [25] - The capital ratio for the year was 9.5%, slightly better than the 2025 business plan midpoint, marking the lowest capital ratio range in five years [4] Business Line Data and Key Metrics Changes - The wholly owned core portfolio was 88.3% occupied and 90.4% leased, with forward leasing increasing 26% to 229,000 sq ft [3] - Tenant retention ended at 64%, exceeding the target range of 59%-61% [4] - Leasing activity for the year was approximately 1.6 million sq ft, with 415,000 sq ft of leases executed in Q4 [4] Market Data and Key Metrics Changes - In Philadelphia, the largest sub-market, occupancy reached 95% and leasing was at 97%, with only 6% of space rolling through 2028 [7] - The company captured 30% market share of new leasing activity in Market West and University City, significantly outperforming the previous 15% share [8] - Overall, the Pennsylvania suburbs were 89.4% leased, with Radnor at 91% [9] Company Strategy and Development Direction - The 2026 business plan focuses on returning to earnings growth, stabilizing One Uptown and 3151, and accelerating sales to pay down debt [16] - The company plans to reduce overall leverage and improve liquidity through a sales program targeting $280 million to $300 million [20] - Recapitalization of joint ventures is anticipated in the second half of 2026, with a focus on maintaining a minority stake [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving real estate market conditions and expects earnings growth from the development pipeline to translate into results in 2026 [37] - The company anticipates positive net absorption for the first time in several years, indicating an improving market [18] - Management noted that the entire portfolio is perceived as undervalued, with a focus on strategic asset sales to crystallize value [46] Other Important Information - The company has no outstanding balance on its $600 million unsecured line of credit and $32 million in cash at the end of the quarter [9] - The company plans to refinance higher-priced bonds, which could save approximately $0.10 per share in interest expense [10] - G&A expenses are projected to decrease due to lower compensation costs, with total interest expense expected to increase [29] Q&A Session Summary Question: What is the hurdle for refinancing bonds? - Management indicated that the focus is on executing the sales program to generate liquidity and improve credit metrics before considering bond refinancing [39] Question: How will the $125 million earmarked for debt or share repurchase be allocated? - The primary focus is on reducing leverage first, with share buybacks considered only after achieving debt reduction objectives [40] Question: Is there a part of the portfolio that is undervalued? - Management believes the entire portfolio is undervalued and is evaluating which assets to sell based on market conditions and growth potential [46] Question: What is the status of the life science incubator space? - There are signs of activity in the life science sector, with some companies expanding, but management is waiting for further growth before making significant commitments [50] Question: What is the pipeline for leasing activity? - The company has a robust pipeline of 1.5 million sq ft, with strong demand in CBD Philadelphia and University City [63]

Financial Data and Key Metrics Changes - The company reported a fourth quarter net loss of $36.9 million, or $0.21 per share, with FFO totaling $14.6 million, or $0.08 per diluted share, in line with consensus estimates [23][27] - Property level NOI was $70 million, slightly below forecast due to increased operating costs [23] - The company anticipates 2026 FFO at the midpoint to be $0.55 per diluted share, representing a 5.8% increase compared to 2025 [27][29] Business Line Data and Key Metrics Changes - The wholly owned core portfolio is 88.3% occupied and 90.4% leased, with leasing activity for the year approximating 1.6 million sq ft [3][4] - New leasing mark-to-market was strong at 13%, with a GAAP mark-to-market of 4.2% [5][27] - The contribution from unconsolidated joint ventures is expected to improve from an $11 million loss in 2025 to a $1 million contribution in 2026 [28] Market Data and Key Metrics Changes - The company captured 30% market share of all new leasing activity in Market West and University City, significantly outperforming its 15% target [7][8] - In Philadelphia, the largest sub-market, occupancy is at 95% and leasing is at 97%, with only 6% of space rolling through 2028 [6] - The Pennsylvania suburbs are 89.4% leased, with Radnor at 91% [9] Company Strategy and Development Direction - The 2026 business plan focuses on returning to earnings growth, stabilizing One Uptown and 3151, and accelerating sales to reduce debt [15][21] - The company plans to maintain minimal balances on its $600 million unsecured line of credit and aims to return to investment-grade metrics [10][22] - The sales program is projected to generate between $280 million and $300 million, primarily in the first half of the year [20][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating platform enables the company to capitalize on improving real estate market conditions, with expectations for further improvement in 2027 [38] - The company is optimistic about the leasing activity and market dynamics, particularly in CBD Philadelphia and University City [62] - Management emphasized the importance of deleveraging while also considering share buybacks as the stock is viewed as undervalued [80][82] Other Important Information - The company has no unsecured bonds maturing until November 2027 and plans to refinance higher-priced bonds to reduce interest costs [10][25] - The company is actively evaluating recapitalization of joint ventures, with plans to maintain a minority stake in future developments [33][60] - The anticipated renovation costs for redeveloping an existing building in Austin are estimated to be between $30 million and $40 million [72] Q&A Session Summary Question: What is the hurdle for refinancing bonds? - Management indicated that the focus is on executing the sales program to generate liquidity and improve credit metrics before considering bond refinancing [40][41] Question: How will the $125 million earmarked for debt or share repurchase be allocated? - The primary objective is to reduce leverage first, with share buybacks being considered opportunistically after achieving debt reduction goals [42][43] Question: Are there specific properties being targeted for sale? - Management believes the entire portfolio is undervalued and is evaluating which assets to sell based on market conditions and growth potential [46][48] Question: What is the status of the life science incubator space? - There are signs of activity and expansion in the life science sector, particularly in cell and gene therapy, with a healthy pipeline of tenants [51][52] Question: What is the timeline for joint venture recapitalizations? - Recapitalizations are planned for the second half of 2026, with management monitoring market conditions to optimize timing [56][60]

Core Insights - Vornado Realty Trust (VNO) is expected to report a year-over-year decline in revenues and funds from operations (FFO) per share for Q4 2025 on February 9 [1][10]. Company Performance - In the last reported quarter, Vornado's FFO per share was 57 cents, exceeding the Zacks Consensus Estimate of 55 cents, with year-over-year growth in same-store net operating income (NOI) and occupancy [2]. - Over the past four quarters, Vornado's FFO per share has consistently surpassed the Zacks Consensus Estimate, with an average surprise of 12.5% [3]. Industry Trends - The U.S. office market saw a positive demand shift in the second half of 2025, with leasing activity strengthening and vacancy rates expected to peak later this year [3]. - Net absorption for the U.S. office market turned positive in Q4 2025, ending a 12-quarter decline, although full-year absorption remained negative at 6.7 million square feet [4]. - Class A office assets are in high demand, with absorption totaling 3.5 million square feet in Q4 2025 and 9.2 million square feet for the full year [5]. Supply Dynamics - Elevated construction costs and policy uncertainty have limited new developments, with the national vacancy rate at 20.5% in Q4, a slight increase of 30 basis points year-over-year [6]. - Sublease availability has decreased in about 60% of markets, while office conversions are tightening supply [6]. Competitive Landscape - High demand for quality offices has positively impacted Vornado's leasing activity, but competition from other developers and operators has pressured the company's ability to attract tenants at higher rents [8]. - To remain competitive, Vornado is offering rent concessions, which has negatively affected its revenue growth [8]. Financial Projections - Vornado's New York revenues are projected to decline by 9.2% to $348.5 million, while total quarterly revenues are expected to be $434.8 million, reflecting a 5% year-over-year decline [11]. - The consensus estimate for occupancy in Vornado's New York office portfolio is 89.8%, up from 88.8% a year ago [12]. - The Zacks Consensus Estimate for quarterly FFO per share remains at 57 cents, indicating a 6.6% increase from the previous year [12].