Financial Data and Key Metrics Changes - For Q4 2025, normalized FFO attributable to common shareholders was $29.5 million or $0.29 per diluted share, exceeding expectations [25] - FFO attributable to common shareholders was $23.1 million or $0.23 per diluted share, while AFFO was $17.8 million or $0.17 per diluted share [26] - Same-store NOI for the portfolio increased 6.3% on a GAAP basis and 7.1% on a cash basis [26] - For the full year 2025, normalized FFO attributable to common shareholders was $110.1 million or $1.08 per diluted share, above guidance [26] - Same-store NOI for the full year increased 2.8% on a GAAP basis and 2% on a cash basis [27] Business Line Data and Key Metrics Changes - Retail same-store NOI for Q4 was up 5.6% on a GAAP basis and 3.4% on a cash basis, driven by new leasing and rent commencements [15] - Office same-store NOI for the quarter was up over 10% GAAP and nearly 17% cash, supported by leasing and rent commencements [19] - Year-over-year, office same-store NOI increased 6% GAAP and 7% cash [19] Market Data and Key Metrics Changes - Retail same-store results year-over-year were up 1% GAAP and down 1% cash, impacted by anchor space vacancy due to bankruptcies [15] - Year-end occupancy was just under 95%, affected by temporary seasonal tenants [16] - The office portfolio fundamentals remain strong, with nearly 8 years of vault and only 1.7% rollover in 2026 [24] Company Strategy and Development Direction - The company announced a rebranding to AH Realty Trust, effective March 2, marking a significant transformation [5] - Plans include exiting the multifamily portfolio and fee income businesses to simplify operations and improve income predictability [6][9] - The focus will be on retail and office assets in growing markets, with a strategy to enhance shareholder value through disciplined capital allocation [6][9] - The company aims to reduce leverage by approximately two full turns, strengthening the balance sheet [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full dividend coverage from cash flows generated by operating properties while reducing debt [11] - The transition year of 2026 is expected to focus on discipline, high quality, and consistent growth, with a simplified operating model [12] - Management believes the transformation will lead to predictable earnings and sustainable cash flow growth [13] Other Important Information - The company is under an LOI for 11 of its 14 multifamily assets, indicating strong interest from credible parties [7] - The exit of the construction business is nearly complete, and discussions are ongoing for the exit of real estate financing investments [8] Q&A Session Summary Question: Long-term growth trajectory and financing plans - Management indicated a balanced approach to leverage and capital allocation, emphasizing the need for shares to trade at the right level relative to NAV for future acquisitions [37][38] Question: Future retail to office NOI split - The company plans to operate where it can add the most value, focusing on both retail and office, with a $50 million capital allocation for acquisitions [40][41] Question: Mixed-use communities and office investments - Management confirmed a focus on mixed-use communities while remaining open to selling office assets if pricing is favorable [46][48] Question: Multifamily dispositions and pricing - The company is under LOI for 11 assets, targeting mid-5 cap range pricing, with significant progress made in negotiations [50][51] Question: Dividend payout ratio trends - Management aims to maintain a conservative approach to capital and dividend payouts, focusing on deleveraging and simplifying the company [52][53] Question: Development as part of long-term strategy - While open to development opportunities, the company currently prioritizes acquisitions due to higher capital costs [57]