Shares dropped 8% following the quarter as investors reacted negatively to a cautious outlook and limited near-term impact from recent balance sheet improvements, alongside ongoing operating challenges in office and hotel segments.

• Redeemed $243 million of preferred stock, improving balance sheet and expected to add $16 million annually to FFO starting Q2, but minimal impact reflected in Q1 results.
• Multifamily NOI rose 64% excluding JV properties, with occupancy improving 940 bps year-over-year to 89.6%, showing early signs of recovery in Oakland.
• Office NOI declined by $600,000 year-over-year, impacted by a prior-year tax appeal benefit and vacancy remaining elevated outside of Oakland assets.
• Hotel NOI dropped $700,000 due to renovation disruptions and mechanical issues temporarily reducing available rooms, though renovations are now mostly complete.
• The company remains focused on refinancing debt maturities and selective asset sales but signaled a cautious outlook, which likely weighed on investor sentiment.