Fiscal period ending 2025-12-31 versus 2024-12-31
— view filing on EDGAR →
Risk exposure broadened across five distinct themes, with nearly doubled impairment charges and new debt instrument disclosures representing the most concrete financial deterioration. The U.S. Government's downgraded client characterization signals a meaningful revenue-mix shift, while a time-sensitive multi-year asset sales program adds execution risk to the balance sheet repair story. No solvency or going-concern flags are present, but the breadth and specificity of new disclosures mark a substantive step-up in the overall risk profile.
4 company-specific
· 1 common-mode
Company-specific changes
Revised
Impairment charges nearly doubled year-over-year ($354.9M to $313.8M combined), and new AI-driven workforce reduction risk added as demand pressure.
Risks Related to Our Business and Operations Our performance depends upon the economic conditions, particularly the supply and demand characteristics, of our markets—Boston, Los Angeles, New York…
Revised
U.S. Government downgraded from "one of our largest clients" to merely "one of our clients," suggesting reduced government revenue or client status.
Failure to comply with Federal Government contractor requirements could result in substantial costs and loss of substantial revenue. As of December 31, 2025, the U.S. Government was one of our…
Revised
New disclosure of $2030 Exchangeable Notes and capped call counterparty credit risk. Concrete debt instrument and derivative exposure added.
Market and economic volatility due to adverse economic and political conditions, health crises or dislocations in the credit markets could have a material adverse effect on our results of operations…
Revised
Added specific reference to "multi-year asset sales program" with risk that inability to execute on timelines could negatively impact proceeds, escalating operational execution risk.
We may have difficulty selling our properties, which may limit our flexibility. Properties like the ones that we own could be difficult to sell due to adverse economic conditions, a lack of available…
Also disclosed — common-mode (Geopolitical macro uncertainty)
Geopolitical macro uncertainty
Revised
Expanded risk scope to include "other criminal acts" and new cost exposure from security enhancements, increasing operational and financial risk beyond terrorism alone.
Actual or threatened terrorist attacks or other criminal acts may adversely affect our ability to generate revenues and the value of our properties. We have significant investments in large…