Financial Data and Key Metrics Changes - For 2025, total consolidated revenues were reported at $3.5 billion, with full year FFO of $1.2 billion, equating to $6.85 per share. The fourth quarter FFO was $1.76 per share, which was $0.05 below the midpoint of guidance due to higher G&A expenses and non-cash reserves for accrued rental income [41][42][43] - The company expects 2026 FFO guidance to range from $6.88 to $7.04 per share, representing an increase of $0.11 per share from 2025 [44][55] Business Line Data and Key Metrics Changes - The company completed over 1.8 million sq ft of leasing in Q4 and over 5.5 million sq ft for the full year 2025, exceeding annual goals [7] - The occupancy rate increased by approximately 70 basis points in Q4, with 35% of the gain attributed to portfolio leasing improvements and the remainder from asset sales [23] Market Data and Key Metrics Changes - Direct vacancy for premier workplaces in five key markets was reported at 11.6%, which is 560 basis points lower than the broader market [9] - Office sales in the private market improved, with significant transactions totaling $17.3 billion in Q4, marking a 43% increase from Q3 2025 [14] Company Strategy and Development Direction - The company aims to optimize its portfolio through asset sales, targeting $1.9 billion in net proceeds by 2028, with $1 billion already achieved [10][11] - BXP is focusing on premier workplace assets and CBD locations, with new developments launched at 343 Madison Avenue in New York City and 725 12th Street in Washington, DC [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing environment, citing expected double-digit earnings growth for companies in the S&P 500 and Russell 2000 indices [7] - The company anticipates achieving a 4% occupancy gain over the next two years, supported by strong leasing activity and market trends [10][21] Other Important Information - The company has a development pipeline of eight projects totaling 3.5 million sq ft and $3.7 billion in investment, expected to deliver strong external growth [18] - The company is negotiating a letter of intent for a significant portion of the 343 Madison Avenue development, with expected stabilized cash returns of 7.5%-8% upon delivery in 2029 [20] Q&A Session Summary Question: Inquiry about portfolio disposition strategy - Management confirmed that they are sticking to the original goal of $1.9 billion in sales and are open to additional sales if attractive prices are offered, while being mindful of the dilutive impacts on earnings [59][60][61] Question: Conversion rates for leasing negotiations - The conversion rate for the 1.1 million sq ft in negotiations is approximately 95%, with expectations to lease 4 million sq ft of space in 2026 [70]