Financial Data and Key Metrics Changes - For the full year 2025, core FFO was reported at $0.87 per diluted share, with Q4 core FFO at $0.23 per diluted share [24] - Same-store property cash NOI increased by 3.4% year-over-year for Q4 and 60 basis points for the full year [24] - Operating expenses increased by 1.7% for Q4 and 3.4% for the full year, primarily due to higher real estate taxes and cleaning-related labor costs [25] Business Line Data and Key Metrics Changes - The office portfolio is 93.5% leased, reflecting strong demand for top-quality, modernized buildings [8][19] - The observatory business generated approximately $24 million of NOI in Q4 and $90 million for the full year, with revenue per capita increasing by 6.9% year-over-year in Q4 [25][9] - The multifamily portfolio reported occupancy just under 98%, with revenue increasing by 9% year-over-year in Q4 [23] Market Data and Key Metrics Changes - The leasing team signed over 458,000 sq ft of new and renewal leases in Q4, achieving positive mark-to-market lease spreads of 6.4% in the Manhattan office portfolio [20] - The market for large block, institutional quality office space remains supply-constrained, with strong demand [15] - The company anticipates a year-end occupancy guidance of 90%-92% for 2026, despite expected temporary dips [22][27] Company Strategy and Development Direction - The company has transformed its portfolio to a 100% New York City focus, enhancing cash flow and portfolio quality [12][8] - Management emphasizes disciplined capital allocation and opportunistic share repurchases as part of their strategy [17][18] - The company aims to leverage its operating platform to drive occupancy, rents, and returns in a competitive market [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term cash growth potential of the portfolio, despite known tenant rollovers impacting FFO growth in 2026 [8] - The company remains focused on enhancing the guest experience and broadening marketing reach for the observatory, anticipating a recovery in international visitation [48][30] - Management acknowledged the impact of external factors, such as potential increases in property taxes, but remains optimistic about leasing demand [38][44] Other Important Information - The company completed $1 billion in acquisitions of high-quality real estate, improving cash flow and portfolio quality [8][11] - The company achieved the highest possible GRESB rating for the sixth consecutive year, reflecting its commitment to sustainability [10] - The company has a well-laddered maturity schedule with no unaddressed debt maturities until March 2027 [11] Q&A Session Summary Question: Outlook on leasing activity for Q1 2026 - Management indicated strong market tenor with over 170,000 sq ft of leases in the pipeline for Q1 and Q2 [33] Question: Details on the sale of the Stamford asset - The asset was sold for mid-$60 million, aligning with capital recycling objectives [34] Question: Impact of proposed property tax increases - Management stated that any increase would be passed through to tenants, and they remain focused on market conditions [38][39] Question: Effects of AI on leasing decisions - Management noted strong demand for high-quality office space, with AI contributing positively to leasing activity [40][41] Question: Impact of new mayor's policies on leasing discussions - Management confirmed that there has been no impact on leasing discussions due to the new mayor's rhetoric or policies [44] Question: Competition and economic outlook for the observatory - Management highlighted a shift in visitor demographics and competitive positioning, with a focus on direct marketing strategies [48][49]

Financial Data and Key Metrics Changes - For the full year 2025, core FFO was reported at $0.87 per diluted share, reflecting continued performance across the platform [4] - Same-store property cash NOI increased by 3.4% year-over-year for Q4 and 60 basis points for the full year [22] - Operating expenses increased by 1.7% for Q4 and 3.4% for the full year, primarily driven by higher real estate taxes and cleaning-related labor costs [22] Business Line Data and Key Metrics Changes - The office portfolio is 93.5% leased, with a 170 basis point increase in occupancy year-over-year [18] - The multifamily portfolio reported occupancy just under 98%, with revenue increasing by 9% year-over-year in Q4 and 10% for the full year [21] - The observatory business generated approximately $24 million of NOI in Q4 and $90 million for the full year, with revenue per capita increasing by 6.9% year-over-year in Q4 [23] Market Data and Key Metrics Changes - The leasing market in New York City is described as the strongest since 2019, with strong demand concentrated among top-quality, modernized buildings [18] - The company has a pipeline of over 170,000 sq ft of leases anticipated to close in the first and second quarters of 2026 [31] - The market for large block, institutional quality office space is supply-constrained, with strong demand [12] Company Strategy and Development Direction - The company has transformed its portfolio to a 100% New York City focus, enhancing cash flow and portfolio quality [6] - A proactive balance sheet management strategy is in place to provide flexibility for strategic transactions and shareholder value creation [6] - The company aims to continue improving the quality of its portfolio and cash flows through prudent capital allocations [17] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 FFO and same-store cash NOI to be consistent with 2025 results, with anticipated commercial occupancy of 90%-92% by year-end 2026 [25] - Known tenant rollover is expected to impact FFO growth in 2026, but the portfolio is well-positioned for long-term cash growth [6] - The company remains optimistic about the return of traditional international visitors and is focused on enhancing guest experiences [8] Other Important Information - The company achieved the highest possible GRESB rating for the sixth consecutive year, reflecting its sustainability leadership [9] - Opportunistic share repurchases remain a strategic part of the capital allocation framework, with $6 million of shares repurchased in Q4 [16] - The company has completed $1 billion of acquisitions of high-quality real estate, improving cash flow and portfolio quality [6] Q&A Session Summary Question: Outlook on leasing activity for Q1 2026 - Management indicated strong market tenor and a pipeline of over 170,000 sq ft of leases anticipated to close in the first and second quarters [31] Question: Details on the sale of the Stamford asset - The sale price was mid-$60 million, with adjustments bringing it close to the debt balance [32] Question: Impact of proposed property tax increases - Management stated that any increase would be passed through to tenants, and the market dynamics would dictate rent adjustments [36][37] Question: Impact of AI on leasing decisions - Management noted strong demand for high-quality office space, with AI being a positive factor for leasing activity [38] Question: Impact of the new mayor's policies on leasing discussions - Management confirmed that there has been no impact on leasing discussions from the new mayor's rhetoric or policies [42] Question: Economic outlook for the observatory and competition - Management highlighted a shift in visitor composition towards more domestic visitors and noted competition from other attractions [46]