Financial Data and Key Metrics Changes - For the full year 2025, the company reported total consolidated revenues of $3.5 billion and full year FFO of $1.2 billion, or $6.85 per share. The fourth quarter FFO was $1.76 per share, which was $0.05 per share short of the midpoint of guidance due to higher G&A expenses and non-cash reserves for accrued rental income [41][42][43] - The company ended 2025 with an in-service occupancy of 86.7% and expects to increase occupancy to approximately 89% by the end of 2026 [45][56] 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 leasing activity is expected to continue into 2026, with a forecast of 4 million sq ft of leasing for the year [25] - The company has seen a significant increase in demand for premier workplaces, with direct vacancy for these spaces at 11.6%, significantly lower than the broader market [9][10] Market Data and Key Metrics Changes - Office utilization data indicated a 10% increase in office visits nationwide from December 2024 to December 2025, marking the busiest in-office December since the pandemic [8] - The company is experiencing accelerating demand from AI companies, particularly in major markets like the Bay Area and New York City [8][9] 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 through the sale of 12 assets [10][11] - The company is focusing on urban premier workplace concentration and has launched new developments in key markets [21] - The strategy includes reallocating capital to premier workplace assets and CBD locations while exploring additional development and acquisition opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive leasing environment, supported by expected double-digit earnings growth for companies in the S&P 500 and Russell 2000 indices [7] - The company anticipates that the current macroeconomic conditions will lead to higher occupancy and rent growth in many submarkets [21] - Management noted that while there are concerns about AI's impact on jobs, many clients are expanding their footprints and upgrading their spaces [8] Other Important Information - The company has a development pipeline of 3.5 million sq ft and $3.7 billion of investment across various projects [18] - The company expects to deliver significant new developments, including a 573,000 sq ft life science project in Cambridge, which is 100% leased to AstraZeneca [49] Q&A Session Summary Question: Inquiry about potential additional asset dispositions - Management confirmed that they are sticking to the original goal of $1.9 billion in sales and are open to selling more assets if attractive prices are offered, while being mindful of the dilutive impacts on earnings [60][61][62] Question: Conversion rates for leasing negotiations - Management indicated a high conversion rate of approximately 95% for deals in negotiation and expects to lease 4 million sq ft of space in 2026 [70][71]