Oct 28, 2026 earnings call — Raised full-year FFO; office leasing progress
Company raised full year 2026 FFO guidance to $2.07 per share at the midpoint.
Revenue $0.1B (est $0.1B) · EPS $0.13 (est $0.09)
Key quotes
"Our office portfolio ended the quarter approximately 86% leased. Up nearly 400 basis points from a year ago and 140 basis points sequentially."
"Same store cash NOI increased 8.3% year over year. Excluding onetime items, growth was 5.1%."
"Our Board has declared a quarterly dividend of $0.34 per share, payable on December 17 to shareholders of record as of December 10."
Analyst Q&A 4
leasing confidence and rents
Q (Todd Thomas · KeyBanc): He asked how confident the team is in executing lease proposals at La Jolla and 1 Beach, whether tenant urgency has changed, and how rents compare to initial underwriting.
A: They said they are fairly confident La Jolla leases will be executed shortly and are optimistic on 1 Beach but cautious until lease documentation is out. The completed spec suite at 1 Beach has driven more tours and proposals, and if the deals finish this year it would push lease percent toward the high end of the 84 to 86 range. Larger, sophisticated tenants are taking longer to close because of legal and business team reviews; La Jolla rents are in range and 1 Beach rents are exceeding expectations.
"So as for whether we get all that done this year, I think that is kind of the focus, obviously, and we are relatively optimistic we will get it done." — Adam Wyll (CEO)
guidance, pipeline, hotel occupancy drivers
Q (Ravi Vaidya · Mizuho): He asked what changed to drive the large lift at the low end of guidance and what assumptions were removed. He also asked about the snow pipeline growth into 2027/2028 and what drove the Embassy Suites occupancy increase.
A: They said Q3 showed 4 or 5¢ of outperformance, including property tax refunds that will not recur in Q4 and a previously reserved office receivable of about a penny. Based on year-to-date results, the midpoint implies about 50¢ of Q4 FFO and they think it is unlikely they will miss that and may even outperform it, but they are not providing guidance for next year yet and point to the supplemental for the snow pipeline timing. On the hotel, Robert said Q3 typically has more visitors (driving occupancy), and Adam added some hotels were down for renovation so they could capture incremental room nights even with flat rates.
"Okay. Well, I mean, you saw in Q3, we had 4 or 5¢ of outperformance, and a few cents of that related to property tax refunds that will not be recurring in Q4." — Adam Wyll (CEO)
retail pricing and capital recycling
Q (Ronald Kamden · Morgan Stanley): He asked how pricing dynamics at the 98% occupied retail portfolio can drive same-store growth. He also asked where the biggest office vacancy lift is beyond La Jolla and 1 Beach and for an update on capital recycling (sell or buy).
A: They said 98% occupancy shows strong demand and they push rents as leases roll, balancing credit, rate, and occupancy and aiming for positive spreads. The largest lift in office comes from redevelopment properties (La Jolla Commons and suburban Bellevue) with about 30¢ of incremental FFO potential, roughly 20% in place and 10¢ speculative tied to Bellevue sites. On recycling, they will consider sales if economics are compelling after taxes, transaction costs, and cash flow are evaluated, and may use joint ventures, but they will be patient and not force sales.
"Obviously, when we are at 98% leased, that is kinda telling us that there is a lot of demand for the spaces we have in our properties." — Adam Wyll (CEO)
no additional comment
Q (Christopher E. Sullivan): Adam asked him to add to the retail answer.
A: He said the prior answer was complete and he had nothing to add.