Financial Data and Key Metrics Changes - AFG's core net operating earnings were $10.29 per share for the full year 2025, with a core operating return on equity of 18.2% [5] - For Q4 2025, core net operating earnings per share were $3.65, resulting in an annualized fourth quarter core return on equity of 25.2% [5] - The company returned over $700 million to shareholders in 2025, including $334 million in special dividends and $274 million in regular dividends [6][10] Business Line Data and Key Metrics Changes - Underwriting profit in specialty property and casualty insurance grew 41% in Q4 2025, with a combined ratio of 84.1%, an improvement of nearly 5 points from the prior year [12][13] - Gross written premiums for Q4 2025 increased by 2%, while net written premiums decreased by 1% compared to the same period in 2024 [13] - The property and transportation group achieved a combined ratio of 70.6% in Q4 2025, an improvement of nearly 19 points from the prior year [16] Market Data and Key Metrics Changes - The annualized return on alternative investments in the P&C portfolio was 0.9% for Q4 2025, down from 4.9% in the prior year [8] - The company expects a growth in net written premiums of 3%-5% for 2026, with a combined ratio target of approximately 92.5% [22] Company Strategy and Development Direction - AFG aims to maintain a disciplined focus on underwriting profitability while pursuing growth opportunities in 2026 [24] - The company is optimistic about several startup businesses and expects to see progress in areas like Specialty Construction and Embedded Solutions [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the ability to navigate changing economic conditions [12] - The company is mindful of softening rates and competitive conditions but believes its reserve strength and healthy rate environment will support growth [24] Other Important Information - AFG's leverage ratio is less than 28%, with no debt maturities until 2030, and insurance company financial strength ratings at A+ [10] - The company declared a special dividend of $1.50 per share, payable on February 25, 2026 [9] Q&A Session Summary Question: What does the 2026 business plan assume in terms of rates relative to the 5% P&C renewal pricing? - Management indicated that they are not specifically identifying amounts for prior development but expect favorable development based on their reserving strategy [27] Question: Was there any change in loss picks for the casualty underlying loss ratio? - Management noted continued caution around social inflation-exposed businesses and adjustments in loss picks, particularly in California workers' compensation [30][31] Question: What drove the inflection in pricing in the lender-placed business? - Management stated that pricing can vary based on client property types and that the business remains extremely profitable despite some lumpiness in pricing [56] Question: Are the social inflation-related businesses stabilized? - Management indicated that corrective steps have been taken, and there is potential for mid-single-digit growth in these businesses moving forward [62] Question: What is the outlook for the alternative investment portfolio? - Management expects a return to historical levels of returns on alternatives will require a better rate environment for multifamily properties [66]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $9.7 million, a 3% increase from $9.5 million in Q3 2025, but a 10% decline from $10.8 million in Q4 2024 [6] - Gross profit margin was 72.9% in Q4 2025, down from 74.2% in Q4 2024, primarily due to inventory write-offs [6] - Net loss for Q4 2025 was $588,000, or $0.05 per diluted share, compared to net income of $176,000, or $0.02 per diluted share in Q4 2024 [7] Business Line Data and Key Metrics Changes - Sales of Q-rated product bundles increased by 10% for the full year 2025, indicating strong member engagement and demand for core products [3] - Commissions expenses as a percentage of net sales for Q4 2025 were 40.3%, down from 41.9% a year ago [6] Market Data and Key Metrics Changes - Revenue in the primary market of Greater China increased by 2% compared to Q3 2025, with notable growth in Taiwan and Peru during Q4 2025 [6] - Japan and Colombia also achieved strong increases throughout the year [3] Company Strategy and Development Direction - The company is focusing on improving operational efficiency through restructuring initiatives, including relocating 40% of product sourcing from America to East Asia [4] - The company anticipates realizing approximately $1.5 million in annualized cost savings during 2026, which is expected to enhance profitability and performance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to support long-term goals in an evolving global environment, emphasizing a strong product portfolio and renewed focus on execution [5] - The upcoming 25th anniversary is viewed as a catalyst for renewed momentum across products and business [4] Other Important Information - Total cash, cash equivalents, and marketable securities were $28.9 million at December 31, 2025, down from $32 million at September 30, 2025 [8] - The board of directors declared a quarterly cash dividend of $0.10 per share, payable on February 27, 2026 [9] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session. The call concluded without further inquiries [11]

Financial Data and Key Metrics Changes - For Q4, revenues increased by 1% year-over-year, with consolidated EBITDA flat compared to the previous year, and earnings per share rose by 2% to $1.37 [2][13] - For the full year, consolidated revenues grew by 5% to $5.5 billion, with adjusted EBITDA up 10% to $563 million, resulting in a margin of 10.2%, an increase of 40 basis points from the previous year [14][15] Business Line Data and Key Metrics Changes - FirstService Residential reported Q4 revenues of $563 million, an 8% increase, with EBITDA up 12% to $51.5 million, achieving a margin of 9.1% [15][16] - FirstService Brands experienced a 3% decline in Q4 revenues to $820 million, with EBITDA down 12% to $88.5 million, resulting in a margin of 10.8% [17] Market Data and Key Metrics Changes - The restoration segment saw a 13% decline year-over-year, attributed to lower claim activity compared to the previous year, which was boosted by named storms [6][7] - The roofing segment's revenues were up slightly due to tuck-under acquisitions, but organic revenues were down over 5% due to a muted demand environment [8][9] Company Strategy and Development Direction - The company aims to focus on mid-single digit organic growth across its divisions, with expectations for continued growth in the FirstService Residential segment [3][4] - The company is being patient in the current M&A environment, focusing on tuck-under acquisitions and selective opportunities rather than large platform deals [25][51] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic indicators do not suggest an improved environment through 2026, with expectations for low to mid-single digit revenue growth in Q1 [10][20] - The company anticipates a modest uptick in activity due to recent winter storms, but it remains too early to quantify the impact on revenues [32][33] Other Important Information - The company announced an 11% increase in its annual dividend to $1.22 per share, reflecting strong free cash flow and a solid balance sheet [19] - Operating cash flow for Q4 was $155 million, a 33% increase year-over-year, contributing to an annual cash flow from operations of over $445 million, up 56% from the previous year [18] Q&A Session Summary Question: M&A landscape and competition - Management noted that the market is slower than 12 months ago, with fewer opportunities and high valuations remaining [23][26] Question: Capital deployment focus - The company aims to consolidate underperforming franchises and is focused on tuck-under acquisitions rather than large platform deals [25][51] Question: Margin outlook - Management indicated that margins are expected to remain flat across both segments for the year, with some headwinds anticipated in Q1 [30][62] Question: Impact of recent weather events - Management stated it is too early to quantify the impact of recent winter storms on revenues, but they expect modest growth in Q1 [32][33] Question: Competition in roofing segment - Management acknowledged intensified competition in the roofing segment, leading to compressed gross margins [50] Question: Future M&A strategy - The company remains focused on tuck-under acquisitions in roofing and is open to larger acquisitions in adjacent spaces, but is cautious about valuations [51][56]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $9.53 and $707 million of adjusted free cash flow for the full year 2025, demonstrating the durability of its franchise [3][15] - Adjusted EBITDA margin was 16.4% for the full year, reflecting resilience despite headwinds from trade policy changes and softer consumer sentiment [3][15] - Fourth quarter adjusted EPS was $2.45, up 3% compared to the prior year, driven by higher volume and productivity [15][25] Business Line Data and Key Metrics Changes - In the Materials Group, reported sales increased by 5%, although organic sales were slightly down due to deflation-related price reductions [4][17] - The Solutions Group saw sales increase by approximately 1.5%, with high-value categories now representing 60% of the portfolio, which helped offset declines in base solutions [6][19] - Intelligent Labels within the enterprise-wide platform grew mid-single digits, driven by strong performance in food, logistics, and other categories [7][20] Market Data and Key Metrics Changes - In developed markets, North America experienced low single-digit volume mix declines, while Europe delivered mid-single-digit growth [17] - Emerging markets in Asia Pacific and Latin America were up low single digits, indicating some resilience in these regions [17] - The apparel business was down roughly 7%, impacted by tariff-related uncertainties, while other categories like food and logistics showed high teens growth in Q4 [6][8] Company Strategy and Development Direction - The company is focused on driving growth in high-value categories, which now represent approximately 45% of total sales, and aims to expand this further [9][10] - There is a strong emphasis on innovation and digital capabilities to enhance operational productivity and customer solutions [10][11] - The company plans to maintain a disciplined capital allocation strategy while continuing to invest in productivity and innovation to strengthen market positions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to stronger growth despite ongoing macroeconomic challenges, with expectations for adjusted EPS growth of approximately 6% in Q1 2026 [13][25] - The company anticipates that growth in high-value categories will continue to be a key driver, with a focus on expanding customer adoption and market penetration [9][39] - Management acknowledged the need to improve organic revenue growth and is taking decisive actions to address this trajectory [9][13] Other Important Information - The company achieved its 2025 sustainability objectives, including reducing energy intensity and enabling more sustainable products [11][12] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 2.4, and the company returned approximately $860 million to shareholders in 2025 [16][25] Q&A Session Questions and Answers Question: Can you provide more detail on the 40 basis point drop in margin? - The drop was attributed to soft base volumes, wage inflation, and some one-time benefits in the prior year, along with the impact of extra calendar days in Q4 [28][30] Question: What are the growth expectations for Intelligent Labels in 2026? - Growth is anticipated to be above the low single digits seen in 2025, driven by increased adoption in apparel and logistics sectors [37][39] Question: How do high-value categories compare in margin to core categories? - High-value categories typically have higher variable margins than the rest of the portfolio, contributing to overall margin expansion [44][46] Question: Has the Walmart partnership increased inquiries from other grocery sellers? - Yes, the partnership has catalyzed interest from other grocery sellers, leading to a growing pipeline of inquiries [52][53] Question: What is the expected impact of temporary savings on 2026? - Temporary savings from incentive compensation in 2025 will be a headwind in 2026, similar in magnitude to the $50 million restructuring actions [55][56] Question: What is the outlook for the apparel market in 2026? - There is uncertainty due to tariff policies, but growth is expected as retailers adjust their supply chain strategies [61][63]

Financial Data and Key Metrics Changes - For Q4 2025, consolidated revenues were $1.38 billion, up 1% year-over-year, with adjusted EBITDA of $138 million, yielding a margin of 9.9%, slightly down from 10.1% in the prior year [13] - For the full year, consolidated revenues increased 5% to $5.5 billion, and adjusted EBITDA came in at $563 million, up 10% over the prior year, delivering a 10.2% margin, up 40 basis points compared to 9.8% in 2024 [14][15] - Adjusted EPS for 2025 was $5.75, reflecting a 15% increase versus 2024 [15] Business Line Data and Key Metrics Changes - FirstService Residential revenues for Q4 were $563 million, up 8%, with EBITDA of $51.5 million, a 12% increase year-over-year, and a margin of 9.1%, up from 8.8% in Q4 2024 [15] - FirstService Brands revenues for Q4 were $820 million, down 3% compared to Q4 2024, with EBITDA of $88.5 million, down 12% year-over-year, and a margin of 10.8%, down from 11.9% in the prior year [17] Market Data and Key Metrics Changes - The restoration segment saw revenues flat sequentially compared to Q3 and down 13% year-over-year, impacted by lower claim activity and fewer named storms [6][7] - The roofing segment experienced a few percentage points increase in revenues due to tuck-under acquisitions, but organic revenues were down over 5% [8] Company Strategy and Development Direction - The company aims to focus on mid-single digit organic growth for 2026, with expectations of modest growth in the first quarter due to declines in certain amenity management services [4][10] - The company is being patient in the current M&A environment, focusing on tuck-under acquisitions and selective opportunities rather than larger platform deals [27][51] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic indicators do not suggest an improved environment through 2026, with consumer confidence remaining depressed [10] - The company expects to see an uptick in revenue growth in subsequent quarters, primarily driven by organic growth and tuck-under acquisitions [20] Other Important Information - Operating cash flow for Q4 was $155 million, a 33% increase year-over-year, contributing to annual cash flow from operations of over $445 million, up 56% versus 2024 [18] - An 11% dividend increase to $1.22 per share annually was announced, up from $1.10 [19] Q&A Session Summary Question: Discussion on M&A and market conditions - Management noted that the market is slower than 12 months ago, with fewer opportunities and high valuations remaining [24] Question: Capital deployment strategy - The company is focused on acquiring underperforming franchises and tuck-under acquisitions, with a cautious approach to larger acquisitions [26][51] Question: Margin outlook for both segments - Management expects margins to be flattish for the year, with some headwinds in Q1 for the brands segment [30][62] Question: Impact of recent weather events on revenue - Management indicated it is too early to quantify the impact of recent weather events on Q1 revenue, but expects modest growth [32][33] Question: Competition in the roofing segment - Competition has intensified, leading to compressed gross margins, and management does not expect this to alleviate until new construction picks up [50]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $9.53 and generated $707 million of adjusted free cash flow for the full year 2025, demonstrating the durability of its franchise [3][14] - Adjusted EBITDA margin was maintained at 16.4% for the full year, despite headwinds from trade policy changes and softer consumer sentiment [3][14] - In Q4, adjusted EPS was $2.45, up 3% compared to the prior year, with reported sales increasing by 3.9% [13][14] Business Line Data and Key Metrics Changes - In the Materials Group, reported sales increased by 5%, with low single-digit volume and mix growth offset by deflation-related price reductions [4][15] - The Solutions Group saw sales increase by approximately 1.5%, with high-value categories representing 60% of the portfolio [5][19] - Intelligent Labels within the Solutions Group grew mid-single digits, driven by food, logistics, and industrial categories [6][18] Market Data and Key Metrics Changes - In developed markets, North America experienced low single-digit volume mix declines, while Europe delivered mid-single-digit growth [15] - Emerging markets in Asia Pacific and Latin America were up low single digits [15] - The apparel business was down approximately 7%, impacted by tariff-related uncertainties [5][56] Company Strategy and Development Direction - The company is focused on driving growth in high-value categories, which now represent 45% of sales, and aims to expand this further [8][10] - There is a commitment to accelerating innovation and enhancing digital capabilities to improve operational productivity and customer solutions [9][10] - The company achieved its 2025 sustainability objectives and is making progress towards its 2030 goals [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to stronger growth in 2026, anticipating adjusted earnings per share growth of approximately 6% at the midpoint [11][21] - The company does not expect macroeconomic tailwinds in the near term, focusing instead on internal levers to drive performance [11][38] - There is a recognition of the need to improve organic revenue growth, with decisive actions being taken to address this [8][12] Other Important Information - The company returned approximately $860 million to shareholders in 2025, including $572 million in buybacks and $288 million in dividends [14] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 2.4 [14] Q&A Session Summary Question: Can you provide more details on the 40 basis point drop in margin? - The drop was attributed to soft base volumes, wage inflation, and some one-time benefits in the prior year [26][28] Question: What are the growth expectations for Intelligent Labels in 2026? - Growth is anticipated to be above the low single digits achieved in 2025, driven by increased adoption in apparel and logistics [32][34] Question: How do high-value categories compare in margin to core categories? - High-value categories typically have higher variable margins than the rest of the portfolio, contributing to overall margin expansion [40][42] Question: What impact has the Walmart partnership had on inquiries from other grocery sellers? - The partnership has increased interest and inquiries from other grocery sellers, leading to potential pilots and trials [47][48] Question: What is the expected timing for restructuring benefits throughout 2026? - Restructuring benefits are expected to be balanced across the year, with a more significant impact in the middle quarters [68][70] Question: What actions are being taken to drive organic growth in high-value categories? - The company is focusing on new customer acquisition, accelerating innovation outcomes, and leveraging digital capabilities [75][78]

Financial Data and Key Metrics Changes - Operating income for 2025 was reported at $1.9 billion, with an operating return on equity (ROE) of 18% and tangible book value per share plus accumulated dividends growing by 30% [4][5][16] - The company repurchased $650 million of its shares during the fourth quarter, representing 13% of its shares over the course of 2025 [5][6] - The cumulative return on shares since the Validus acquisition has been around 30% [6] Business Line Data and Key Metrics Changes - Underwriting income for the year was $1.3 billion, with a combined ratio of 85% [16][17] - Fee income reached $329 million for the year, with management fees at $207 million and performance fees at $121 million [21][22] - Retained net investment income for the year was $1.2 billion, up 4% from the previous year [23] Market Data and Key Metrics Changes - Property CAT rates were down in the low teens percentage, but the company found opportunities to grow, keeping top-line premium and property CAT down only in the mid-single digits [10][11] - The underwriting portfolio is roughly one-third larger compared to the previous year, with retained net investment income tripling and fee income more than doubling [11] Company Strategy and Development Direction - The company aims to maintain or grow its property business, focus on preserving underwriting margins, and continue to grow fees in its Capital Partners business [12] - The strategy for 2026 includes executing a gross-to-net strategy to arbitrage competitive CAT-bond markets and retro markets [12] - The company is upgrading its underwriting system to be more customer-centric and leveraging artificial intelligence [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent, superior returns to shareholders, citing the diversified sources of income as a key strength [11][40] - The company anticipates that each of its three drivers of profit will remain robust sources of income in 2026 [40] Other Important Information - The company incurred a 15% corporate income tax in Bermuda for the first time in 2025, but still managed to produce excellent returns [24][25] - The Bermuda government introduced substance-based tax credits that will positively impact the company's results [25][26] Q&A Session Summary Question: Property CAT premiums expectation for 2026 - Management confirmed that they expect premiums to be down mid-single digits for the year, with continued rate reductions anticipated during mid-year renewals [42] Question: Expense ratio guidance - The expense ratio guidance for 2026 is expected to be between 5%-5.5%, including the benefit of Bermuda tax credits [43][44] Question: Gold investment and its impact - Management indicated that the gold position serves as a hedge against underwriting and interest rate risks, and they do not have a specific exit price target [48][49] Question: Capital deployment in property risk for 2026 - Management plans to hold risk relatively flat for the Southeast Hurricane, with potential adjustments based on market opportunities [51] Question: Expected returns and rate adequacy in property CAT - Management stated that rate adequacy remains strong despite recent rate declines, and they will focus on selecting the best opportunities for portfolio construction [55][56]

RenaissanceRe (NYSE:RNR) Q4 2025 Earnings call February 04, 2026 11:00 AM ET Company ParticipantsBob Qutub - EVP and CFODavid Marra - EVP and Group Chief Underwriting OfficerElyse Greenspan - Managing DirectorKeith McCue - SVP of Finance and Investor RelationsKevin J. O'Donnell - President and CEOMatthew Heimermann - Managing DirectorMeyer Shields - Managing DirectorRobert Cox - VP in Equity ResearchRyan Tunis - Managing DirectorConference Call ParticipantsJoshua Shanker - US Insurance Equity Research Analy ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 was $1.40, exceeding the high end of guidance [6] - Total sales in Q4 increased by 3.5% year-over-year, with organic revenue growth of more than 1% driven by higher pricing and volume growth in the industrial motion segment [6][7] - Free cash flow reached $141 million in Q4, allowing the company to return $36 million to shareholders and reduce debt by over $100 million [7][8] - The company ended the year with a net leverage of 2 times, indicating a strong balance sheet [8] Business Segment Data and Key Metrics Changes - Engineered bearings sales were $714 million in Q4, up 0.9% from last year, with organic sales down 1% due to lower volumes [15] - Industrial motion sales were $397 million in Q4, up 8.4% year-over-year, with organic sales increasing by 5.6% driven by higher demand across most sectors [16] - Adjusted EBITDA for engineered bearings was $115 million (16.1% of sales), down from $122 million (17.2% of sales) last year, impacted by unfavorable mix and tariff costs [16] - Adjusted EBITDA for industrial motion reflected solid operational execution, with margins improving due to higher volumes and pricing [17] Market Data and Key Metrics Changes - In the Americas, sales were flat, with growth in North America offset by lower revenue in Latin America [12] - Asia Pacific saw a 4% increase in sales, driven by growth in India, while revenue in China declined [12] - EMEA also experienced a 4% increase, led by growth in the industrial motion segment [12] Company Strategy and Development Direction - The company is focusing on strategic initiatives, including the 80/20 portfolio work, to exit underperforming businesses and prioritize actions that impact margins and growth [9] - New strategic leadership appointments have been made to align the organization with primary growth drivers and enhance customer service [10] - The company aims to leverage strengths in automation and electrification as key growth areas, with a focus on aligning the portfolio with macro trends [81][94] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving customer demand and order activity in 2026, with expectations for organic sales growth of 2% [8][38] - The company anticipates adjusted EPS to increase by around 8% at the midpoint of the guidance range for 2026 [8][19] - Management acknowledged macroeconomic uncertainties but emphasized the importance of executing strategic initiatives to drive performance [9][23] Other Important Information - The company plans to host an Investor Day on May 20, 2026, to provide further insights into its strategy and performance [5] - The company expects to generate around $350 million in free cash flow for the full year 2026, with a conversion rate of approximately 105% on GAAP net income [20] Q&A Session Summary Question: How did orders progress through Q4 and into January? - Management noted that Q4 went better than expected, with a strong order book and steady pacing of orders throughout the quarter, despite a weak December last year [30][31] Question: Can you provide more color on segment contribution to the full year guide? - Management indicated that the difference in performance between engineered bearings and industrial motion was largely due to mix issues, with expectations for improved margins year-on-year [35][36] Question: What are the expectations for volume growth in 2026? - Management expects volumes to be slightly lower in Q1 due to a challenging comparison from the previous year, with pricing expected to offset some of the volume decline [50] Question: Will there be significant revenue exits as part of the 80/20 process? - Management clarified that they do not intend to shrink significantly but will focus on simplifying operations and reallocating resources for growth [64][65] Question: What is the outlook for M&A activity? - Management stated that M&A remains a priority, with plans to clarify the strategy at the upcoming Investor Day [97]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is approximately 3% above initial expectations [3] - Fourth quarter FFO per share was $0.47, a decrease of approximately $0.02 compared to Q3 2025, primarily due to non-recurrence of termination fees recognized in Q3 [20][21] - Same-store cash NOI for the full year increased by 0.5% compared to 2024, with office segment increasing by 2.3% and retail by 1.2%, while multifamily declined by 3.2% [21][22] Business Line Data and Key Metrics Changes - The office segment showed continued progress with same-store office NOI increasing just over 1% for the quarter and nearly 2.5% for the full year [8][21] - Retail segment ended the year at 98% leased, with fourth quarter leasing totaling 43,000 sq ft and positive cash and GAAP leasing spreads [11] - Multifamily segment ended the year 95.5% leased, achieving approximately 1% net effective rent growth year over year, despite competitive leasing conditions [12][13] Market Data and Key Metrics Changes - In West Coast office markets, signs of stabilization and gradual improvement in leasing activity were noted, particularly in San Diego and San Francisco [5][6] - The overall office portfolio ended the quarter 83% leased, with same-store office portfolio at 86%, up about 150 basis points from Q3 [7][11] - Retail availability is expected to remain near record lows nationally, supporting asking rents [12] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and maintaining retail momentum by managing expirations and focusing on tenant quality [18] - The strategy includes managing through the multifamily supply cycle with disciplined revenue management and cost control [18] - The company is focused on maintaining a strong balance sheet and improving valuation over time [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainty but believes coastal infill locations and high-quality real estate position the company to capture demand as it materializes [5] - The outlook for 2026 includes a FFO guidance range of $1.96-$2.10 per share, with a midpoint of $2.03, reflecting a conservative approach to leasing velocity and market conditions [25][32] - Management expressed frustration with the current share price, indicating that the public market valuation does not reflect the intrinsic value of the company's assets [16] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [17] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [23][24] Q&A Session Summary Question: Inquiry about elevated TIs for renewals and demand environment - Management acknowledged that higher capital burdens for office leasing are expected to moderate as occupancy improves and availability tightens [36] Question: Timeline to achieve target leverage of 5.5x - Management indicated that leasing up La Jolla Commons 3 and One Beach would help achieve the target leverage [40] Question: Potential strategic asset sales to improve stock valuation - Management stated they would consider asset sales at favorable prices but would not sell at a discount just to check a box [42][43] Question: Guidance assumptions for office segment lease rates - Management reported that 68,000 sq ft has been signed in 11 deals year-to-date, with a significant pipeline of additional leasing activity [48] Question: Credit reserves and tenant health - Management clarified that the credit reserves are a conservative measure and not indicative of specific tenant concerns [84]