Upal Rana

Roy declined to commit $10B as a go-forward run rate but noted it is the third year above $9B and expressed strong confidence in meeting 2026.

Roy emphasized selectivity on operator and location for gaming, citing CityCenter, Bellagio, and Wynn Boston as examples of the highly selective approach.

Pong detailed multiple equity sources totaling ~$3B against ~$5B need (leverage-neutral for $8B guide), noting ATM could fill the ~$2B gap as a tiny fraction of $400M daily trading volume.

Roy confirmed watch list at 4.8% and Red Lobster as immaterial, noting they're monitoring menu rationalization and promotional activity but exposure is no longer significant.

Pong attributed offsets to leasing commissions, G&A, and unreimbursed property expenses consuming the lease termination and volume gains.

Roy pointed to new supplemental disclosure breaking down on-balance-sheet versus fund investments and pro forma figures for modeling.

Roy reiterated disposition volume expected similar to FY2024, maintaining the active capital recycling program.

Roy noted lower rates would improve public equity cost of capital, enabling more US deals from the $3.7B passed pipeline, but 10-year impact remains unclear.

Roy clarified Zips retained all 100% of assets with no rejections, negotiating rent on some to reach 94.3% recapture with longer lease terms.

Roy confirmed $4B guidance is flow business only; any large portfolio deals would be upside to both acquisition and earnings guidance.

Pong identified bad debt reserve outcomes and ten-year yield relief as key drivers for achieving the high end of guidance.

Roy attributed compression to rate cut expectations bringing sellers to market, with growing private competition affirming the net lease model.

Described prebuilt floors under construction with interest on both, and flagged the adjacent Embarcadero Plaza park as a demand driver.

Owen acknowledged the stock is attractive with look-through cap rates in the 7s versus comp sales in the 5-6s. However, capital is being allocated to 8%+ yielding developments and deleveraging from 8x, which takes priority over buybacks.

Doug noted BXP's life science exposure is in Urban Edge Boston (180K sq ft first-generation available) and South San Francisco JV with ARE. Wet lab demand remains tepid. Some inquiry in South SF but not close to major transactions. Urban Edge seeing life science office demand but not traditional lab.

Doug said building now 33% leased with another lease close to completion that would bring it to ~40% by year-end. Hilary noted AI tenants are a micro-trend with both recent leases from AI-space businesses.

Doug noted Biogen's lease doesn't expire until mid-2028 and Kendall Square is the best location globally for lab space regardless of the outcome. The other Biogen building was already master-leased to another organization 15 years ago.