Item 2. Properties
ITEM 2. PROPERTIES
Our Portfolio
As of December 31, 2025, our operating portfolio was comprised of 31 office, retail, multifamily and mixed-use properties with an aggregate of approximately 6.8 million rentable square feet of office and retail space (including mixed-use retail space), 2,302 residential units (including 120 RV spaces) and a 369-room hotel. Additionally, as of December 31, 2025, we owned land at two of our properties that we classified as held for development or construction in progress.
Retail and Office Portfolios
Property Location Year Built/
Most Recent Renovation Net
Rentable
Square
Feet Percentage
Leased (2)
Annualized
Base Rent (1)
Annualized
Base Rent
Per Leased
Square
Foot
OFFICE PROPERTIES
La Jolla Commons I & II San Diego, CA 2008 725,439 98.5 % $ 48,403,724 $ 67.74
La Jolla Commons III San Diego, CA 2025 206,231 34.7 2,643,758 36.94
Coastal Collection at Torrey Reserve (3)
San Diego, CA 1996/2022 552,276 82.2 25,033,359 55.14
Torrey Point
San Diego, CA 2017 94,854 99.6 6,119,373 64.77
Solana Crossing Solana Beach, CA 1982/2022 224,009 81.3 8,833,711 48.51
The Landmark at One Market (4)
San Francisco, CA 1917/2000 422,426 98.3 41,830,682 100.74
One Beach Street San Francisco, CA 1924/2024 89,067 14.5 — —
First & Main Portland, OR 2010 362,633 74.9 8,937,842 32.91
Lloyd Portfolio Portland, OR 1940/2022 568,270 84.1 16,051,144 33.59
City Center Bellevue Bellevue, WA 1987/2023 498,606 92.0 27,649,275 60.28
14Acres Bellevue, WA 1985/2024 276,060 63.5 5,962,845 34.02
Timber Ridge Bellevue, WA 1986 160,509 97.5 7,280,357 46.52
Timber Springs Bellevue, WA 1983 93,295 73.0 2,589,179 38.02
Subtotal / Weighted Average Office Portfolio (5)
4,273,675 83.1 % $ 201,335,249 $ 56.69
RETAIL PROPERTIES
Carmel Country Plaza San Diego, CA 1991 78,098 98.0 % $ 4,316,334 $ 56.40
Carmel Mountain Plaza (6)
San Diego, CA 1994/2020 528,416 99.8 14,602,922 27.69
South Bay Marketplace (6)
San Diego, CA 1997/2018 132,877 97.8 2,535,608 19.51
Gateway Marketplace (6)
San Diego, CA 1997/2016 127,861 98.9 2,473,675 19.56
Lomas Santa Fe Plaza Solana Beach, CA 1972/1997 208,297 96.6 6,613,353 32.87
Solana Beach Towne Centre Solana Beach, CA 1973/2004 246,651 97.5 7,423,168 30.87
Geary Marketplace Walnut Creek, CA 2012 35,097 100.0 1,299,574 37.03
The Shops at Kalakaua Honolulu, HI 1971/2006 11,893 100.0 1,206,000 101.40
Waikele Center Waipahu, HI 1993/2008 418,395 97.2 12,637,563 31.07
Alamo Quarry Market (6)
San Antonio, TX 1997/1999 588,148 99.2 16,311,778 27.96
Hassalo on Eighth - Retail Portland, OR 2015 44,236 57.5 857,552 33.71
Subtotal / Weighted Average Retail Portfolio (5)
2,419,969 97.7 % $ 70,277,527 $ 29.72
Total / Weighted Average Retail and Office Portfolio (5)
6,693,644 88.4 % $ 271,612,776 $ 45.90
Mixed-Use Portfolio
Retail Portion Location Year Built/
Renovated Net
Rentable
Square
Feet Percentage
Leased (2)
Annualized
Base Rent (1)
Annualized
Base Rent
Per Leased
Square
Foot
Waikiki Beach Walk—Retail Honolulu, HI 2006 93,925 96.2 % $ 9,628,291 $ 106.56
Hotel Portion Location Year Built/
Renovated Units Average
Occupancy Average
Daily Rate Revenue
per
Available
Room
Waikiki Beach Walk—Embassy Suites TM
Honolulu, HI 2008/2020 369 82.3 % $ 359.93 $ 296.35
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Multifamily Portfolio
Property Location Year Built/
Renovated Units Percentage
Leased (2)
Percentage
Occupied (2)
Annualized
Base Rent (1)
Average Monthly Base Rent per Occupied Unit
Loma Palisades San Diego, CA 1958/2022 548 96.7 % 94.9 % $ 18,131,064 $ 2,905
Imperial Beach Gardens Imperial Beach, CA 1959/2023 160 95.0 91.3 4,754,016 2,712
Mariner’s Point Imperial Beach, CA 1986 88 93.2 92.1 1,928,100 1,982
Pacific Ridge Apartments San Diego, CA 2013 533 99.1 98.1 24,977,172 3,981
Genesee Park San Diego, CA 1985 192 98.4 96.9 4,878,144 2,185
Hassalo on Eighth - Multifamily (7)
Portland, OR 2015 657 91.2 89.0 11,814,288 1,684
Total / Weighted Average Multifamily 2,178 95.5 % 93.7 % $ 66,482,784 $ 2,715
Santa Fe Park RV Resort (8)
San Diego, CA 1971/2008 124 45.2 % 45.2 % $ 1,064,856 $ 1,583
Total / Weighted Average Multifamily (including Santa Fe Park RV Resort) 2,302 92.8 % 91.1 % $ 67,547,640 $ 2,684
(1) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) under commenced leases for the month ended December 31, 2025 by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. The foregoing notwithstanding:
a. The annualized base rent for La Jolla Commons has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $37,801,285 to our estimate of annual triple net operating expenses of $10,602,439 for an estimated annualized base rent on a modified gross lease basis of $48,403,724 for La Jolla Commons.
b. The annualized base rent for 14Acres has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $4,081,195 to our estimate of annual triple net operating expenses of $1,881,650 for an estimated annualized base rent on a modified gross lease basis of $5,962,845 for 14Acres.
c. The annualized base rent for Timber Ridge has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $5,297,966 to our estimate of annual triple net operating expenses of $1,982,391 for an estimated annualized base rent on a modified gross lease basis of $7,280,357 for Timber Ridge.
d. The annualized base rent for Timber Springs has been adjusted for this presentation to reflect that the contractual triple net leases were instead structured as modified gross leases, by adding the contractual annualized triple net base rent of $1,822,289 to our estimate of annual triple net operating expenses of $766,890 for an estimated annualized base rent on a modified gross lease basis of $2,589,179 for Timber Springs.
(2) Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property is calculated as square footage under lease as of December 31, 2025, divided by net rentable square feet, expressed as a percentage. The square footage under lease includes leases which may not have commenced as of December 31, 2025. Percentage occupied for each of our multifamily properties includes total units rented and occupied as of December 31, 2025. Percentage leased for each of our multifamily properties includes units leased but not occupied as of December 31, 2025, divided by total units available, expressed as a percentage.
(3) Coastal Collection at Torrey Reserve was formerly known as Torrey Reserve Campus.
(4) This property contains 422,426 net rentable square feet consisting of The Landmark at One Market (378,206 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent six-story leasehold known as the Annex. We currently lease the Annex from an affiliate of the Paramount Group pursuant to a long-term master lease effective through June 30, 2031.
(5) Lease data for signed but not commenced leases as of December 31, 2025 is in the following table:
Leased Square Feet Annualized Base Pro Forma Annualized
Under Signed But Annualized Rent per Base Rent per
Not Commenced Leases (a) Base Rent (b) Leased Square Foot (b) Leased Square Foot (c)
Office Portfolio $ 139,722 $ 7,204,628 $ 51.56 $ 58.71
Retail Portfolio 11,300 570,430 $ 50.48 $ 29.97
Total Retail and Office Portfolio $ 151,022 $ 7,775,058 $ 51.48 $ 47.23
(a) Office portfolio leases signed but not commenced of 84,009, 35,861, 15,194, and 4,658 square feet are expected to commence during each quarter of 2026, respectively. Retail portfolio leases signed but not commenced of 1,700, 1,627, 5,255, and 2,718 square feet are expected to commence during each quarter of 2026, respectively.
(b) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for signed but not commenced leases as of December 31, 2025 by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage for signed by not commenced leases.
(c) Pro forma annualized base rent is calculated by dividing annualized base rent for commenced leases and for signed but not commenced leases as of December 31, 2025, by square footage under lease as of December 31, 2025.
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(6) Net rentable square feet at certain of our retail properties includes square footage leased pursuant to ground leases, as described in the following table:
Property Number of Ground Leases Square Footage Leased Pursuant to Ground Leases Aggregate Annualized Base Rent
Carmel Mountain Plaza 5 17,607 $ 1,051,461
South Bay Marketplace 1 2,824 $ 114,552
Alamo Quarry Market 4 31,994 $ 723,455
Gateway Marketplace 1 18,903 $ 226,800
(7) The Hassalo on Eighth property is comprised of three multifamily buildings, each with a ground floor retail component: Velomor, Aster Tower and Elwood.
(8) The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. The number of units at the Santa Fe Park RV Resort includes 120 RV spaces and four apartments. The Santa Fe Park RV Resort is excluded from the multifamily presentation above to accurately reflect true multifamily performance.
In the tables above:
• The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each of our office properties is the sum of (a) the square footages of existing leases, plus (b) for available space, management's estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 2017 measurement guidelines. Net rentable square footage may be adjusted from the prior period to reflect re-measurement of leased space at the properties.
• Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents, before abatements) for the month ended December 31, 2025, by 12. Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of December 31, 2025. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Total abatements for leases in effect as of December 31, 2025 for our retail and office portfolio equaled approximately $8.2 million for the year ended December 31, 2025. Total abatements for leases in effect as of December 31, 2025 for our mixed-use portfolio equaled approximately $0.1 million for the year ended December 31, 2025. Total abatements for leases in effect as of December 31, 2025 for our multifamily portfolio equaled approximately $2.2 million for the year ended December 31, 2025.
• Units represent the total number of units available for sale or rent at December 31, 2025.
• Average occupancy represents the percentage of available units that were sold during the 12-month period ended December 31, 2025, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for the 12-month period ended December 31, 2025, by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the 12-month period ended December 31, 2025 and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services.
• Average monthly base rent per occupied unit represents the average monthly base rent per occupied unit as of December 31, 2025.
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Tenant Diversification
At December 31, 2025, our operating portfolio had approximately 735 leases with office and retail tenants, of which 5 expired on December 31, 2025 and 23 had not yet commenced as of such date. Our residential properties had 2,041 leases with residential tenants at December 31, 2025, excluding Santa Fe Park RV Resort. The retail portion of our mixed-use property had approximately 66 leases with retailers. Only one tenant or affiliated group of tenants accounted for more than 9.8% of our annualized base rent as of December 31, 2025 for our office, retail and retail portion of our mixed-use property portfolio. The following table sets forth information regarding the 25 tenants with the greatest annualized base rent for our combined office, retail and retail portion of our mixed-use property portfolios as of December 31, 2025.
Tenant Property(ies) Lease
Expiration Total Leased
Square Feet Rentable
Square
Feet as a
Percentage
of Total Annualized
Base Rent (1)
Annualized
Base Rent
as a
Percentage
of Total
Google LLC The Landmark at One Market 12/31/2029 253,198 3.7 % $ 27,659,898 9.8 %
LPL Holdings, Inc. La Jolla Commons 4/30/2029 421,001 6.2 21,048,719 7.5
Autodesk, Inc. The Landmark at One Market 12/31/2028
6/30/2031 138,615 2.0 13,730,889 4.9
Smartsheet, Inc. City Center Bellevue 12/31/2026
4/30/2029
12/31/2032 123,041 1.8 7,340,059 2.6
Illumina, Inc. La Jolla Commons 10/31/2027 73,176 1.1 5,110,316 1.8
Databricks, Inc. City Center Bellevue 11/30/2027
1/31/2028
3/31/2028
10/31/2028 69,104 1.0 4,183,793 1.5
Lowe's Waikele Center 5/31/2028 155,000 2.3 4,092,000 1.5
Industrious City Center Bellevue
La Jolla Commons 4/30/2033
3/31/2034
7/31/2035 75,749 1.1 4,015,281 1.4
VMWare, LLC City Center Bellevue 1/31/2026
3/31/2028 55,683 0.8 3,667,357 1.3
State of Oregon: Department of Environmental Quality Lloyd Portfolio 10/31/2031 87,787 1.3 3,207,179 1.1
Top technology tenant (2) La Jolla Commons 8/31/2030 40,800 0.6 2,674,996 1.0
Genentech, Inc. Lloyd Portfolio 10/31/2026 66,852 1.0 2,554,393 0.9
Sprouts Farmers Market Solana Beach Towne Centre
Geary Marketplace
Carmel Mountain Plaza 6/30/2029
9/30/2032
3/31/2035 71,431 1.1 2,248,554 0.8
Internal Revenue Service First & Main 8/31/2030 63,648 0.9 2,189,700 0.8
Perkins Coie, LLP Coastal Collection at Torrey Reserve 12/31/2028 36,980 0.5 2,092,997 0.7
Veterans Benefits Administration First and Main 8/31/2030 73,001 1.1 1,997,006 0.7
Marshalls Carmel Mountain Plaza
Solana Beach Towne Centre 1/31/2029
1/31/2035 68,055 1.0 1,901,151 0.7
US Bank La Jolla Commons
Lomas Sante Fe Plaza 8/31/2027
8/31/2027 40,858 0.6 1,852,546 0.7
Nordstrom Rack Carmel Mountain Plaza
Alamo Quarry Market 9/30/2027
10/31/2027 69,047 1.0 1,804,269 0.6
PIMCO La Jolla Commons 3/31/2034 24,464 0.4 1,632,825 0.6
Vons Lomas Santa Fe Plaza 12/31/2027 49,895 0.7 1,609,086 0.6
Petit Kohn Ingrassia Lutz & Dolin Coastal Collection at Torrey Reserve 12/31/2026 26,993 0.4 1,596,010 0.6
Pillsbury Winthrop Shaw Pittman LLP Coastal Collection at Torrey Reserve 12/31/2033 26,152 0.4 1,564,799 0.6
Seismic Software, Inc. Coastal Collection at Torrey Reserve 1/31/2034 25,026 0.4 1,529,285 0.5
Ruth's Chris Steak House Waikiki Beach Walk Retail
Coastal Collection at Torrey Reserve 2/29/2028
1/31/2030 14,833 0.2 1,499,217 0.5
TOTAL 2,150,389 31.6 % $ 122,802,325 43.7 %
(1) Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents before abatements) for the month ended December 31, 2025 for the applicable lease(s) by (ii) 12.
(2) Name withheld at tenant's request.
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Geographic Diversification
Our properties are located in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The following table shows the number of properties, the net rentable square feet and the percentage of total portfolio net rentable square footage in each region as of December 31, 2025. Our seven multifamily properties are excluded from the table below and are located in Southern California and Portland, Oregon. The hotel portion of our mixed-use property is also excluded and is located in Hawaii.
Region Number of Properties Net Rentable Square Feet Percentage of Net Rentable Square Feet (1)
Southern California 10 3,125,009 46.0 %
Northern California 3 546,590 8.1
Washington 4 1,028,470 15.2
Oregon 3 975,139 14.4
Texas 1 588,148 8.7
Hawaii (2)
3 524,213 7.7
Total 24 6,787,569 100.0 %
(1) Percentage of Net Rentable Square Feet is calculated based on the total net rentable square feet available in our retail portfolio, office portfolio and the retail portion of our mixed-use portfolio.
(2) Includes the retail portion related to the mixed-use property.
Segment Diversification
The following table sets forth information regarding the total property operating income for each of our segments for the year ended December 31, 2025 (dollars in thousands).
Segment Number of Properties Property Operating Income Percentage of Property Operating Income
Office 12 $ 139,139 52.2 %
Retail 11 68,338 25.6 %
Multifamily 7 37,010 13.9 %
Mixed-Use 1 22,122 8.3 %
Total 31 $ 266,609 100.0 %
Lease Expirations
The following table sets forth a summary schedule of the lease expirations for leases in place as of December 31, 2025, plus available space, for each of the ten calendar years beginning January 1, 2026 at the properties in our retail portfolio, office portfolio and the retail portion of our mixed-use portfolio. The square footage of available space excludes the space from 5 leases that terminated on December 31, 2025. In 2026, we expect a similar level of leasing activity for new and expiring leases compared to prior years with overall positive increases in rental income. However, changes in rental income associated with individual signed leases on comparable spaces may be positive or negative, and we can provide no assurance that the rents on new leases will continue to increase at the above disclosed levels, if at all.
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The lease expirations for our multifamily portfolio and the hotel portion of our mixed-use portfolio are excluded from this table because multifamily unit leases generally have lease terms ranging from seven to fifteen months, with a majority having twelve-month lease terms, and because rooms in the hotel are rented on a nightly basis. The information set forth in the table assumes that tenants do not exercise any renewal options.
Year of Lease Expiration Square
Footage of
Expiring
Leases Percentage
of Portfolio
Net
Rentable
Square
Feet Annualized Base
Rent (1)
Percentage
of Portfolio
Annualized
Base Rent Annualized Base Rent Per Leased Square Foot (2)
Available 779,962 11.5 % $ — — % $ —
Month to Month 95,651 1.4 402,801 0.2 4.21
2026 454,358 6.7 21,740,653 8.2 47.85
2027 690,621 10.2 30,187,828 11.3 43.71
2028 1,134,670 16.7 49,141,525 18.5 43.31
2029 1,229,062 18.1 71,929,184 27.0 58.52
2030 522,823 7.7 22,297,008 8.4 42.65
2031 511,712 7.5 24,553,887 9.2 47.98
2032 246,524 3.6 10,288,552 3.9 41.73
2033 248,219 3.7 8,526,125 3.2 34.35
2034 253,951 3.7 11,774,510 4.4 46.37
2035 201,279 3.0 6,921,558 2.6 34.39
Thereafter 260,482 3.8 8,244,064 3.1 31.65
Signed Leases Not Commenced 158,255 2.3 — — —
Total: 6,787,569 100.0 % $ 266,007,695 100.0 % 1 $ 39.19
(1) Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2025 for the leases expiring during the applicable period, by 12.
(2) Annualized base rent per leased square foot is calculated by dividing annualized base rent for leases expiring during the applicable period by square footage under such expiring leases.