Financial Data and Key Metrics Changes - The company achieved a 5.7% growth in AFFO for the year, which is among the best in the net lease industry, reflecting strong performance and record investment activity [4][14] - AFFO per share for Q4 was $1.27, a 5% increase year-over-year, while full-year AFFO totaled $4.97 per share [14] - The total return for shareholders was 25% for the year, placing the company in the top tier of publicly traded REITs [4] Business Line Data and Key Metrics Changes - The company allocated 68% of its investment volume to warehouse and industrial assets, with retail accounting for 22% [7] - The average cash cap rate for investments was 7.6%, translating into an average yield just above 9% over long-term leases averaging 17 years [6] - Contractual same-store rent growth averaged 2.4% for both Q4 and the full year, with CPI-linked rent escalations averaging 2.6% [15][16] Market Data and Key Metrics Changes - 26% of the investment volume was in Europe, while 74% was in North America, predominantly in the U.S. [7] - The company expects cap rates to be incrementally lower in 2026, anticipating going-in cap rates in the mid- to low-7% range compared to 2025's average of 7.6% [11] Company Strategy and Development Direction - The company aims to expand its retail presence, targeting 25%-30% of annual deal volume in retail, including both U.S. and European markets [34] - The Carey Tenant Solutions platform is expected to enhance the company's capabilities in build-to-suit and redevelopment projects, with a focus on increasing the volume of such projects [37][54] - The company plans to maintain a conservative approach to investment volume guidance, starting with a range of $1.25 billion to $1.75 billion for 2026 [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining high investment activity and delivering attractive AFFO growth in 2026, supported by a strong funding position [9][30] - The company anticipates a slight increase in contractual same-store rent growth for 2026, with expectations of maintaining portfolio occupancy over 98% [18][21] - Management noted that there are no significant disruptions in the market, and they expect to refine investment guidance as the year progresses [76] Other Important Information - The company successfully refinanced its euro-denominated term loan at an attractive rate below 3% and has a strong liquidity position of $2.2 billion [8][29] - The company has reduced its HELVIG exposure to 1.1% of total ABR by year-end and is actively engaged in transactions to further reduce this exposure [17] Q&A Session Summary Question: Expansion in U.S. retail and other targeted categories - Management indicated that retail accounted for about 22% of deal volume last year, with a goal to increase this to 25%-30% annually, focusing on tenant credit and lease structure [34][35] Question: Growth of Carey Tenant Solutions platform - Management expects the volume of projects under the Carey Tenant Solutions platform to increase, with $50 million completed and another $280 million in construction [36][37] Question: Industrial asset cap rates and competition - Management noted that industrial assets remain core to the business, with expectations of cap rates tightening slightly in 2026, while competition from Realty Income is more pronounced in Europe [41][44] Question: Credit loss estimates - Management set a conservative range for rent loss from tenant credit at $10-$15 million for 2026, with no specific concerns currently in the portfolio [86][90] Question: Debt refinancing strategy - Management plans to refinance upcoming bonds with unsecured debt in the same currencies, with current pricing expectations for euro bonds in the low 4% range [91][92]

Financial Data and Key Metrics Changes - The company achieved a 5.7% growth in AFFO for the year, which is among the best in the net lease industry, reflecting strong performance and record investment activity [4][14] - AFFO per share for Q4 was $1.27, a 5% increase year-over-year, while the full year AFFO totaled $4.97 per share [14] - The total return for shareholders was 25% for the year, placing the company in the top tier of publicly traded REITs [4] Business Line Data and Key Metrics Changes - The company allocated 68% of its investment volume to warehouse and industrial assets, with retail accounting for 22% [7] - The average cash cap rate for investments was 7.6%, translating into an average yield just above 9% over long-term leases averaging 17 years [6] - Contractual same-store rent growth averaged 2.4% for both Q4 and the full year, with CPI-linked rent escalations averaging 2.6% [15][16] Market Data and Key Metrics Changes - 26% of the investment volume was in Europe, while 74% was in North America, predominantly in the U.S. [7] - The company expects cap rates to trend lower in 2026, anticipating going-in cap rates in the mid- to low-7% range compared to 2025's average of 7.6% [11] Company Strategy and Development Direction - The company aims to expand its retail presence, targeting a mix of larger sale-leaseback opportunities and other retail categories [33] - The Carey Tenant Solutions platform is expected to enhance the company's capabilities in build-to-suit and redevelopment projects, with a goal to increase the volume of such projects [36][53] - The company plans to maintain a conservative investment volume guidance of $1.25 billion-$1.75 billion for 2026, with the potential to refine this as visibility improves [11][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining high investment activity and delivering attractive AFFO growth in 2026, supported by a strong funding position [9][30] - The company is mindful of potential credit losses, setting a conservative estimate for rent loss from tenant credit at $10 million-$15 million for 2026 [18][86] - Portfolio occupancy increased to 98% by year-end, with expectations to maintain this level through re-leasing and dispositions [18] Other Important Information - The company successfully refinanced its Euro-denominated term loan, locking in an attractive all-in rate below 3% [8] - The liquidity at year-end totaled $2.2 billion, providing ample flexibility for funding investment activities [29] - The quarterly dividend was increased by 4.5% year-over-year to $0.92 per share, supported by a payout ratio of approximately 73% [29] Q&A Session Summary Question: Expansion strategy in U.S. retail - Management indicated that retail accounted for about 22% of deal volume in 2025, with plans to increase this to 25%-30% in the future, focusing on tenant credit and lease structure [33][34] Question: Growth of Carey Tenant Solutions platform - Management noted that they completed about $50 million in projects year-to-date, with another $280 million in construction planned over the next 12-18 months [36] Question: Industrial asset cap rates and competition - Management stated that industrial assets remain a core part of the business, with expectations for cap rates to tighten slightly in 2026 [41][42] Question: Credit loss estimates - Management clarified that the $10 million-$15 million range for credit loss is a conservative estimate with no specific concerns currently in the portfolio [86] Question: Debt refinancing plans - Management confirmed plans to refinance upcoming bond maturities with unsecured debt in the same currencies, with current pricing expectations in the low 4% range for Eurobonds [87][88]

Financial Data and Key Metrics Changes - The company achieved a 5.7% growth in AFFO for 2025, which is among the best in the net lease industry, reflecting strong performance and record investment activity [3][12] - AFFO per share for Q4 was $1.27, a 5% increase year-over-year, while the full year AFFO totaled $4.97 per share [12][14] - The total return for shareholders was 25% for the year, placing the company in the top tier of publicly traded REITs [3] Business Line Data and Key Metrics Changes - The company allocated 68% of its investment volume to warehouse and industrial sectors, with retail accounting for 22% [6] - The average cash cap rate for investments was 7.6%, translating into an average yield just above 9% over long-term leases averaging 17 years [5][12] - Contractual same-store rent growth averaged 2.4% for both Q4 and the full year, with CPI-linked rent escalations averaging 2.6% [14][15] Market Data and Key Metrics Changes - 26% of the investment volume was in Europe, while 74% was in North America, predominantly in the U.S. [6] - The company expects cap rates to be incrementally lower in 2026, anticipating going-in cap rates in the mid- to low-7% range [10][41] Company Strategy and Development Direction - The company aims to continue generating higher investment volumes, with an initial investment volume guidance range of $1.25 billion to $1.75 billion for 2026 [10][19] - The Carey Tenant Solutions platform is expected to enhance the company's capabilities in build-to-suit and redevelopment projects, with a focus on increasing the volume of such projects [9][52] - The company is targeting to increase retail investments to 25%-30% of annual deal volume, focusing on tenant credit and lease structure [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining high levels of investment activity and delivering attractive AFFO growth in 2026, supported by strong funding positions and a sizable investment pipeline [8][29] - The company is taking a conservative approach to rent loss estimates, projecting $10-$15 million for 2026, while not seeing any material changes in credit quality across the portfolio [17][87] - The company anticipates portfolio occupancy to remain over 98% through a combination of releasing and dispositions [17] Other Important Information - The company successfully refinanced its euro-denominated term loan, locking in an attractive all-in rate below 3% [7] - The company ended the year with liquidity totaling $2.2 billion, including cash on hand and unsettled forward equity [27] - The quarterly dividend was increased by 4.5% year-over-year to $0.92 per share, supported by a payout ratio of approximately 73% [27] Q&A Session Summary Question: Expansion in U.S. retail and targeted categories - Management confirmed that retail accounted for about 22% of deal volume in 2025, with plans to increase this to 25%-30% [33] Question: Industrial asset types and competition - Management indicated that industrial remains a core part of the business, focusing on manufacturing and logistics, with expectations of cap rate tightening [40][41] Question: Development risks associated with Carey Tenant Solutions - Management explained that development risks are mitigated through fixed-price contracts and guaranteed rent start dates [52][53] Question: Credit loss estimates and portfolio management - Management stated that the $10-$15 million range for credit loss is a conservative estimate with no specific concerns in the portfolio at the moment [87] Question: Debt refinancing and overall debt composition - Management confirmed that they have flexibility in refinancing upcoming bonds and will likely replace them with unsecured debt in the same currencies [88][93]

Group 1 - The core trend for 2025 indicates that global fitness enthusiasts are becoming increasingly "greedy," seeking not only health benefits but also enjoyable experiences and a seamless integration of fitness into their daily lives [1][9][18] - Pilates remains the most popular fitness class globally, achieving over 1.5 million bookings on ClassPass with a growth rate of 66% [1][3] - Yoga and barre classes are also gaining popularity, with yoga ranking second in ClassPass bookings (28% growth) and barre fifth (30% growth), reflecting a shift towards holistic health and mind-body integration [3][4] Group 2 - Strength training is gaining traction, particularly among younger generations and women, with a 27% growth rate on ClassPass and a significant increase in participation from Gen Z and female users on platforms like Strava [4][6] - The demand for recovery and low-intensity training is rising, with recovery classes on ClassPass seeing a 155% increase and low-intensity training growing by 112% [7][9] - Social sports, such as racquet sports, are also on the rise, with bookings increasing by 111%, and pickleball seeing a staggering 748% growth globally [15][22] Group 3 - The motivation for exercise is shifting from purely aesthetic goals to a focus on overall health and functional fitness, leading to a more diverse range of activities being incorporated into workout routines [10][12] - The rise of community-driven fitness events, such as HYROX, highlights the importance of social connections in motivating individuals to engage in physical activity, with a 432% increase in bookings for HYROX on ClassPass [13][15] - Fitness brands are evolving to meet the changing demands of consumers, transitioning from traditional gyms to holistic health spaces that offer a combination of fitness, nutrition, and wellness services [20][24]

Group 1 - Planet Fitness (PLNT) cleared an alternate buy point after shares rallied on the company's investor day, where it outlined its growth strategy and forecasts for the next three years [1] - For the 2026-2028 period, Planet Fitness forecasted revenue growth in low double-digit percentages, sales growth at a mid-single-digit pace, and new club unit growth of 6% to 7% [1] Group 2 - The stock market ended a wild week narrowly mixed, with key stocks like Planet Fitness, Constellation Energy, and Pan American Silver in focus [1][4] - Life Time, a rival of Planet Fitness, also broke out on a bulked-up outlook, indicating strength in the luxury gym sector [4]

Core Insights - The rise of GLP-1 weight loss drugs, exemplified by Ozempic, is transforming weight loss into a more direct and rapid process, but it also necessitates a greater focus on fitness due to muscle loss during weight reduction [1][3][5] - The fitness industry is innovating to cater to the growing demographic of GLP-1 users, with gyms developing specialized programs to attract this new customer base [1][10] Group 1: Impact on Health and Fitness - GLP-1 drugs reduce appetite, leading to significant weight loss, but approximately 25% to 33% of this weight loss comes from muscle mass, which poses health risks, especially for older adults and postmenopausal women [3][5] - Users of GLP-1 medications often experience side effects such as nausea and reduced appetite, which can lead to nutritional deficiencies and decreased energy levels, making it challenging to maintain a regular fitness routine [8][9] - Customized fitness programs for GLP-1 users are emerging, focusing on resistance training and nutritional education to help users establish healthier habits [10][12] Group 2: Industry Response and Opportunities - Fitness chains like Equinox are launching GLP-1 protocols to train coaches on the drug's mechanisms and how to tailor fitness plans for users, expanding this training globally [12][14] - Companies are developing products specifically for GLP-1 users, such as Nestlé's Vital Pursuit line, which emphasizes high protein and small portions to meet the new dietary needs of this demographic [18][20] - The market for weight loss drugs is projected to grow significantly, with Morgan Stanley increasing its estimate for the global weight loss drug market to $150 billion by 2035, indicating a substantial opportunity for related industries [26]

Core Viewpoint - Life Time is launching the Coldwater Trail MTB & Run event in Anniston, Alabama, on October 24 and 25, 2025, which will serve as a qualifying race for the Leadville Trail series, expanding the company's portfolio of athletic events [1][7]. Group 1: Event Details - The Coldwater Trail MTB & Run will feature 50K and 100K distances for mountain bikers and 15K and 50K distances for runners, showcasing over 4,000 acres of the Coldwater Mountain Trail System [2]. - The event aims to attract both competitive and recreational participants, offering a variety of race categories and highlighting the area's natural beauty and technical challenges [5]. Group 2: Community and Investment - The event is part of a broader investment in outdoor recreation in Anniston, with over $4 million invested in the Coldwater Mountain Trail area from various sources, including the City of Anniston and state grants [5]. - Innovate Alabama has invested nearly $20 million in outdoor recreation infrastructure across the state, with Coldwater Mountain being a key project, validating the community's efforts in promoting outdoor activities [6]. Group 3: Company Background - Life Time operates more than 175 athletic country clubs across the U.S. and Canada and hosts nearly 30 iconic athletic events, emphasizing its commitment to promoting healthy lifestyles [9].

Core Insights - Life Time is hosting the Inaugural Agassi Open Play Day on April 12, 2025, to celebrate National Pickleball Month, inviting thousands of players for simultaneous open play across its athletic country clubs [1][2][3] - The company has established itself as a leader in the pickleball space, operating 785 dedicated pickleball courts and engaging over 48.3 million players annually [2][3] - Tennis legend Andre Agassi will participate in the event, aiming to enhance community engagement and expand access to the sport [3] Company Initiatives - Life Time has made significant investments in pickleball, including launching the LT Ultimate Pickleball, a durable and consistent ball, and establishing partnerships with JOOLA and lululemon for premium equipment [7] - The company has released 70 instructional videos featuring elite players, available for free on the Life Time app, to promote skill development in the sport [7] - A portion of the proceeds from the Agassi Open Play Day will benefit the Life Time Foundation, which supports youth nutrition, movement, and conservation efforts [4]

Core Insights - Life Time has expanded its LTH-branded supplements to Amazon, enhancing accessibility for consumers during National Nutrition Month [1][2] - The company emphasizes its commitment to high-quality, research-backed ingredients in its supplements, designed by registered dietitians and personal trainers [3][4] - A recent survey indicates that 71% of adults feel overwhelmed by supplement choices, highlighting the need for clear product information [4] Company Overview - Life Time has over 20 years of experience in the supplement industry, founded by Bahram Akradi after discovering quality issues in existing products [2][6] - The company operates more than 175 athletic country clubs across the U.S. and Canada, offering a comprehensive healthy lifestyle ecosystem [6] - Life Time has been recognized as a Great Place to Work®, reflecting its commitment to a positive workplace culture for over 42,000 employees [6] Product Offerings - The LTH portfolio includes over 50 products such as vitamins, fish oil, protein, electrolytes, and greens [4] - Upcoming product launches include PUMP (a caffeine-free pre-workout), (Re)FUEL (collagen protein bars), and DREAM (a magnesium sleep support powder) [5]

Core Insights - Life Time is expanding its presence in New York City with the development of Life Time Brooklyn Tower, which will be its largest location in Brooklyn at approximately 80,000 square feet [1][4] - The facility will span seven floors in a 1,066-foot-tall building and will focus on recovery, rejuvenation, and socializing, offering a holistic experience for residents and members [2][4] - Life Time Brooklyn Tower is expected to open in the second half of 2026, adding to Life Time's existing nine athletic country clubs in New York City [4] Company Overview - Life Time operates over 175 athletic country clubs across the United States and Canada, promoting healthy living and wellness for individuals aged 90 days to 90+ years [6] - The company has been recognized as a Great Place to Work®, highlighting its commitment to an exceptional workplace culture for over 42,000 team members [6] Partnership Details - Silverstein Properties, the new owner of Brooklyn Tower, is dedicated to ensuring the successful completion of the project and maintaining Life Time's health and wellness offerings as part of the building's amenities [3][7] - Silverstein Properties has a real estate portfolio valued at over $18 billion and has developed more than 45 million square feet of various properties across the country [7] Facility Features - Life Time Brooklyn Tower will include a rooftop pool, co-ed wet suite, luxury spa, coworking spaces, and dedicated fitness studios for various exercise programs [8]