Strategic Focus - The company plans to prioritize office leasing and retenanting Studio Plaza, with low overall lease expirations expected in 2026 [1] - Key development projects include the construction of high-end residential units at Landmark Residences and 10900 Wilshire, with additional residential development sites being planned [1][5] - The company aims to capitalize on attractive acquisition opportunities in the market, where current valuations are significantly discounted [1] Financial Performance - In 2025, the company executed nearly $2 billion in debt transactions, extending maturity profiles and strengthening the balance sheet [2] - Revenue for 2025 increased by 1.8% to $249 million, driven by growth in both office and multifamily revenues [11] - Funds from Operations (FFO) decreased to $0.35 per share, attributed to increased interest expenses and lower interest income [11] Leasing Activity - The company signed 896 office leases totaling 3.4 million square feet in 2025, with a positive net absorption of 100,000 square feet in the fourth quarter [8][3] - The retention rate for office leases remains around 70%, with a focus on maintaining a balance between new and renewal leases [29][37] - The average office leasing cost in the fourth quarter was $5.76 per square foot per year, remaining competitive compared to other office REITs [9] Market Outlook - The company expresses confidence in the long-term fundamentals of its markets and the quality of its portfolio, despite potential challenges ahead [4] - Positive demand trends were observed across various sectors, including financial services, legal, health services, education, and real estate [8] - The company is cautiously optimistic about occupancy growth, monitoring market conditions closely [12][62] Development Pipeline - The company is advancing its development portfolio, with construction expected to commence at 10900 Wilshire in 2026, converting the existing office tower into residential units [5][6] - Additional residential projects are in the planning stages, with expectations of yields above 8% upon completion [36][25] - The company is actively engaged in architectural planning for new projects, indicating a robust development pipeline [24]