Michael Goldsmith

Caton quantified SoCal absorption and the 30 basis-point vacancy decline; Letter framed it as the previously forecast two-to-three quarter lag.

Chris attributed pipeline growth to deferred demand materializing, with diversity across size categories, organizational types, and both renewal and new requirements.

Arndt said wider range is more math than sensitivity with FFO crossing $6 and percentage variability requiring wider penny range. Caton on SoCal said tone shift with new direction in customer demand. Back half of year Q3 and Q4 saw gross and net absorption move in improved direction. Customers engaging earlier in renewals with broader new lease requirements across all submarkets. Inland Empire clearly outperforming Los Angeles. Class A over Class B outperforming. Couple of pockets with scarcity and firming pricing especially big box Inland Empire. Cycle progressing and short term weakness dissipating.

Arndt confirmed some catch-up from Q2 but clear turning point in demand with clear move higher. Cannot parse exact split between catch-up and new demand from market statistics. Company leasing activity shows clear step higher revealed in variety of things including pipeline which remains full. Provided context that roughly 60 million square feet is normal quarterly velocity for demand to improve in coming quarters.

Caton said decision-making remains deliberate with deals beginning to pile up. Customers need clarity on macro front with economist forecasts showing caution in back half. Moghadam said constant uncertainty from Ukraine to Fed to election to Liberation Day makes prediction very difficult. Largest customers simply cannot defer taking more space as their ability to defer reduces with every passing day.

Letter confirmed seeing Amazon in the market and signed good deals with them this year. Overall e-commerce segment of customer base very strong back to high teens 20% of overall leasing.

Letter said Q4 was tale of two markets. First five six weeks very quiet with customers waiting for election outcome coming off five six quarters of delayed decision-making. Post-election saw ten weeks of very solid decision-making unlocking previously stalled deals. Resiliency from e-commerce general goods electronics food and beverage across broad base. 3PLs broke record in Q3 then exceeded it in Q4 leasing nearly 50 million feet in back half. Caton specified pipeline up 17% January-to-January. Arndt noted end of Q4 and beginning of Q1 usually slow times making bump even more significant than history.

Roth named the EV tenant walking away from 11 locations and the four-year termination fee; Mas confirmed term fees sit outside same property NOI and inside the core operating earnings raise.

Mike attributed the $3.75M shortfall primarily to one lease moved to cash basis accounting. Full-year $51M guidance maintained. Advocated for core operating earnings as better metric since it eliminates non-cash and nonrecurring items.

Lisa framed the closures as Amazon leaning into Whole Foods expansion. Alan confirmed all 4 locations closed but highlighted significant lease term remaining on Amazon credit. Immediate inbound interest from other grocers. Will be patient on merchandising decisions.

Mike explained 2025 was exceptional from record occupancy absorption and 100 bps recovery rate lift. Mid-3% on top of 5%+ is still strong, driven by base rent.

Mike highlighted continued runway in commenced occupancy and 100+ bps positive impact from redevelopments through 2025 and potentially 2026.

Alan confirmed watchlist exposure is consistent, Rite Aid at 30 bps of ABR, and AR remains below historic levels.

Mike broke down the 75-100 bps into ~50 bps ULI (historical average) plus 25-50 bps for bankruptcy-related lost rent. Alan confirmed limited exposure.

Eli said essentially all of the 1 million square feet was Saks OFF 5TH, returned around mid-May, and has been or is being relet to blue-chip retailers, with the rent uplift from $18 million toward $44 million largely a 2027 story.

Eli cited strength in luxury, jewelry, athleisure and juniors. Only softness in food and beverage (flat comps) and tourist markets with less European/Canadian travel.

Brian said approximately $30 million NOI contribution in 2026 from completing projects. Most openings back-end weighted to Q4 so not full-year impact.

David said eliminating TRG operational overhead, bolting onto SPG platform at little cost, raising occupancy, and applying asset management techniques. Expects north of 8% cap rate with synergies.

David said traffic up 1.5% but border assets and tourist-oriented centers flat, not outperforming as usual. Weaker dollar not driving expected international tourism benefit.

Over 50 of ~100 boxes leased with Primark, Zara among new tenants. Already replaced F21 rent; expect to more than double rent over two-year process.

Brian cited three drivers for lower guidance: flat sales budget reducing overage rent, downtime from tenant swaps, and standard bad debt reserves.

Tim confirmed operators broadly pushing occupancy despite market occupancies improving 40-50bps Q1 to Q2. MAA taking targeted approach: pushing price where exposure allows, occupancy where needed. Expects shift to rate-pushing environment particularly into 2026 as macro and consumer sentiment improve. Direct.

Tim attributed slowdown to tougher comps after 6-7 strong quarters, more selective prospects, and lower renewal acceptance at Pentagon-area asset due to government buyout uncertainty. Not unique to the market. Direct.

Tim: Still expect slightly positive new leases mid-Q3, then trending back down in Q4. More uncertainty given economy but current trends support it. Direct.

Brad: Still have 1-2 asset markets including Panama City, Gulf Shores, Las Vegas. Annual Q4 evaluation process prioritizes dispositions. Focus on growth profile and CapEx needs. Direct.

Tim noted occupancy 25-30bps above prior year, exposure position better. Target ~95.6% occupancy to push price. Combining declining supply with stable occupancy gives confidence in pricing power. Direct.

Tim: January new lease -7.1%, expect acceleration through July to slightly positive 1-1.5% range, then seasonal decline. Curve shape is historical normal but steeper due to declining supply. Direct.

Regional heads gave specifics: Midtown inbound rents 10% to 15% above last year, 20% increases in lower stacks, Back Bay 97%-98% leased.

Doug said lease negotiation pipeline grew to 1.2M sq ft with ~95% conversion rate. Discussion pipeline conversion is ~500K sq ft but keeps growing. Expects to identify 5M sq ft of opportunities to achieve 4M sq ft of 2026 leasing.

Mike noted 89% of rents from CBD currently. Won't reach 100% as BXP will maintain exposure to select suburban markets with strong amenity environments and dense demand profiles (e.g., Reston). CBD concentration will grow as sales are suburban-focused and new investments are urban.

Mike explained some Q2 expense savings deferred to Q3, plus higher interest expense from fewer Fed cuts. Q3 seasonally lower due to utilities; Q4 benefits from lower expenses and occupancy ramp driving approximately $0.05 difference.

Doug confirmed 3M sq ft = flat in 2025, but with under 2M sq ft expiring in 2026, the same leasing pace would drive material occupancy pickup.

Sean noted renewal acceleration driven by seasonal ramp-up. May-June offers going out at 5-5.5%, about 100bp above Feb-March levels.

Sean clarified the question before providing urban/suburban performance breakdown, noting suburban generally outperforming with regional variations.

Sean attributed strength to healthy tech employment and very low supply. San Francisco leading with ~7% YTD asking rent growth.

Sean Breslin quantified suburban outperformance at 40 basis points in Q4, driven by very low supply levels in suburban submarkets.

Asked about junk fee legislation risk to non-rental income growth. Followed up on migration trends and pace of move-ins from outside Essex's core markets.

Asked about junk fee legislation risk to non-rental income growth. Followed up on migration trends and pace of move-ins from outside Essex's core markets.

Angela argued low supply means less reliance on broad economy. Compared favorably to Sunbelt's higher supply dependence on job growth. Also cited Google RTO upside.

Angela described fundamentals building gradually with tech hiring momentum only three months old. West Coast expected to outperform but growth will be gradual.

Chaudhri and Mitra both answered directly: going-in yield is the seller's cash flow, terminal yield is what matters.

Mitra emphasized Welltower is not a deal shop and does not compete on cost of capital. Acknowledged looking at Ventas portfolio but walked away due to encumbrance structure. Pointed to $12 billion of dispositions in last 12 months as evidence of discipline.

Shankh reframed acquisition runway as dependent on value creation opportunity, not transaction volume; noted 37 transactions in first six weeks of 2026 (~1/day), while emphasizing mix shift eliminates need to acquire.

Shankh cited deep transaction team experience including COVID-era execution and described risk mitigation as building Welltower Business Systems and attracting best talent with vibrant culture.

Lacy cited migration, doubling-up, rent-to-income and cancel/denial statistics; Toomey added that supply abatement is the biggest single difference.

Mike outlined mid-single-digit other income growth: WiFi ~1%/$2M, parking and package lockers mid-to-high single digits. New initiatives: storage optimization with third-party partners, and pet rent enforcement (identified 2,000 unpaying pets across portfolio generating $800K/month total).

Mike quantified the trade-off: 1% rent loss = $7M/year, 1% occupancy = $17M/year. Need 100 bps rent for 30-40 bps occupancy loss.

Michael said acceleration unusual at this time of year. Consumer confidence and job growth needed. Easier comps and less supply pressure could mitigate normal deceleration but does not anticipate acceleration in pricing power near-term.

Mark said EQR operates in full compliance. LRO yield management tool is just one tool in the toolbox. Algorithmic pricing bans attack a symptom, not the cause, supply and demand dynamics drive rents. Will work with trade associations to educate policymakers.

Michael explained normal seasonal deceleration in Q4, with 2025 elevated vs 2024 due to better macro indicators and West Coast recovery.

Charles explained seasonal pattern, renewals peak in Q1 with typical moderation into summer, expected to reaccelerate at year-end. Blends have gone up every month since December.

Dallas Tanner acknowledged supply still pressuring Florida and Phoenix but noted deliveries likely to continue improving; public homebuilder commentary suggests more spec inventory as mortgage rates stay elevated.

Jones quantified: direct supply competition dropped from 20% to 9% of portfolio. Oden noted supply pervasive across all markets with Austin and Nashville highest. Campo added consumer sentiment in oversupplied markets creates pricing pressure even on non-competing B assets.

Goldsmith pressed on what drove the $0.01 guidance raise given flat same-store and higher interest/G&A costs. Moses walked through Janus Living IPO being earnings-neutral in 2026, $0.04 run-rate accretion once deployed, and Q1 being elevated from on-balance-sheet acquisitions pre-IPO (~$0.43/share run rate for remaining quarters).