Full-year 2025 weighted average share count: 319M – 321M (CFO)
Full-year 2025 same-store cash NOI: –11.5% to –12.5% (CFO)
Mgmt Quotes
Victor Coleman: “We are on pace for our strongest office leasing year since 2019 and poised to grow occupancy with among the sector’s lowest expirations over the next two years.” (CEO)
Victor Coleman: “AI and AI-enabled businesses are the next wave of economic growth on the West Coast.” (CEO)
Mark Lammas: “We anticipate our in-service office occupancy should remain stable and should begin to grow as we move through the coming quarters.” (Mark)
Mark Lammas: “Our tour activity increased 8% compared to the first quarter to 1.8 million square feet, the highest level in more than two years.” (Mark)
Harout Diramerian: “We continue to execute on a multipronged approach to enhance our maturity profile, increase liquidity and strengthen key debt metrics.” (CFO)
Quixote cost cuts: $14M pro forma expense cut (→ $10M NOI improvement vs 2024) in prior quarter; latest quarter cut another $10M (fleet downsizing). Annualized cuts now ~$24M, with $14M cash NOI improvement pro forma 2024.
Breakeven show count lowered from mid-upper 90s to low 90s; at 110–120 show counts, cash NOI could reach $30M–$40M.
Mgmt stance: Bullish – no incremental risks, leasing activity rising, Quixote cost cutting progressing, and balance sheet has excess liquidity for 36 months.
Q2 — Alexander David Goldfarb
Topic: Studio EBITDA recovery, capital needs for leasing CapEx
Key points:
At 110–120 show counts (2022 average: 120; 2019/2021: >130), studio NOI could reach ~$30M; not expecting the original ~$100M EBITDA from 2021 purchase.
Tax credit more than doubled to $750M and is officially in budget.
Balance sheet has ~$200M cash; line of credit ($70M–$75M undrawn) not currently needed; asset sales may continue but on a moderate timeline.
Mgmt stance: Neutral – studio recovery is gradual (breakeven near 90 show counts); no immediate need for additional capital, but asset sales may still occur.
Q3 — Caitlin Burrows
Topic: Leasing environment and market differentiation
Key points:
Average quarterly leasing pace surpassed 500K sq ft; last 2 quarters averaged ~590K sq ft.
Tours up 10% QoQ to 1.8M sq ft (highest in ~6 years); average deal size increasing, indicating midsized deals returning.
Bay Area (San Francisco) strength driven by tech/AI: tech pipeline 68% in Valley, ~60% in city; AI ~25% of that and growing.
Seattle: year-over-year demand/gross leasing up ~25%; tech pipeline more muted but AI companies (OpenAI, Anthropic, NVIDIA, Databricks) taking 8K–15K sq ft and growing.
Mgmt stance: Bullish – leasing pace accelerating, tour activity at multiyear highs, AI driving Bay Area and seeding Seattle growth.
Q4 — Seth Eugene Bergey
Topic: Q3 guidance range and Washington 1000 leasing
Key points:
Q3 guidance range depends on studio business: higher end if studio activity surprises positively; lower end if slower. Office leasing execution (higher occupancy) could also push to higher end.
Interest costs and G&A are well known/fixed.
Leasing pipeline later-stage deals ~600K sq ft (not 500K); none at Washington 1000. Tours at Washington 1000 up significantly QoQ; 3 deals of ~100K sq ft each in market but not yet LOI.
Mgmt stance: Neutral – guidance range driven by studio variability; office leasing pipeline active but not yet at Washington 1000.
Q5 — William Thomas Catherwood
Topic: Leasing CapEx aggressiveness, West Coast valuations, Sunset Las Palmas occupancy
Key points:
No capital constraint on leasing; deals lost only to competitors with move-in ready space (sublease space drying up, especially in Seattle). Bay Area is a level playing field.
West Coast valuations: Bay Area (60% of AI funding) seeing increased price per foot; transaction volume up but cap rates not yet materially shifted. Only one Bay Area asset considered for disposition.
Sunset Las Palmas: 9 of 11 stages leased; trailing 12-month occupancy ~80% (lower in earlier periods due to show-by-show occupancy methodology).
Mgmt stance: Bullish on leasing execution – capital not a constraint, sublease competition fading, AI driving valuation improvement; cautious on asset sales – only one candidate, prefer to wait for stabilization.