Financial Data and Key Metrics Changes - The company reported Distributable Earnings of $0.47 per share, Adjusted Net Income of $0.20 per share, and Adjusted EBITDA of $19.5 million, all exceeding or at the high end of expectations [4][16] - Recurring service revenues were approximately $43 million, a sequential quarter decrease of about $2.5 million, primarily due to the wind down of AlerisLife's business [16] - The company expects recurring service revenues to decrease to approximately $41 million in the next quarter [17] Business Line Data and Key Metrics Changes - DHC sold 69 properties for approximately $605 million in 2025, with a focus on improving SHOP NOI margins and selling non-core assets [5][6] - SVC sold 112 hotels for $859 million in 2025 and announced the early redemption of $300 million of its senior unsecured notes [7] - ILPT successfully refinanced over $1.2 billion of debt in 2025 and materially increased its dividend [8] Market Data and Key Metrics Changes - RMR arranged nearly 10 million square feet of leasing at rental rates approximately 13% higher than previous rents for the same space [11] - The managed residential portfolio ended the year with approximately 93% occupancy and a resident retention rate of over 70% [12] Company Strategy and Development Direction - The company is focused on private capital growth initiatives and has hired experienced personnel to enhance its fundraising efforts [11][12] - RMR is actively exploring investment opportunities in multifamily, retail, and select development projects [29] - The company aims to raise approximately $250 million for its enhanced growth venture fundraising [13][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance of multifamily assets, noting strong operational results and tenant retention [39] - The company anticipates a challenging fundraising environment but remains focused on residential and select development opportunities [12][29] - Management expects to see an increase in quarterly Adjusted EBITDA from additional dividends on increased investments in Seven Hills [20] Other Important Information - The company ended the quarter with nearly $150 million of total liquidity, including nearly $50 million in cash [22] - The bankruptcy process for OPI remains ongoing, with updates to be provided as new information becomes available [9] Q&A Session Summary Question: Comments on Peter's addition and fundraising efforts - Management clarified that the addition of Peter is to bolster existing fundraising efforts, focusing on both U.S. and international capital [24][25] Question: Products for capital raising - Management indicated a focus on multifamily, loans, and retail investments for capital raising in 2026 [27][29] Question: Performance of multifamily assets - Management highlighted strong operational results and tenant retention in multifamily assets, with expectations of continued performance [38][39] Question: Adjusted net income guidance - Management explained the expected decrease in adjusted net income due to various factors, including lower construction management fees and the impact of asset sales [42][43] Question: Investment outlook for loans - Management views lending as a growth engine and expects an active year for new loans through Seven Hills [45][46] Question: Timeline for multifamily fund capital raising - Management aims to raise capital for the multifamily fund as soon as possible, with expectations for completion within fiscal year 2026 [49][50]

Core Insights - The number of bankruptcies in the U.S. reached 655 by the end of October 2025, approaching the total of 687 for the entire year of 2024, marking a 15-year high [1] - The bankruptcy rate is accelerating, with 76 companies filing in August alone, the highest monthly figure since 2020, and 68 in October [1] Industry Impact - The industrial and consumer goods sectors are the hardest hit, with 98 and 80 bankruptcy filings respectively, indicating a severe crisis in these industries [3] - Industrial companies face challenges from global supply chain disruptions, rising raw material and logistics costs, and the impact of tariff policies [3] - Consumer goods companies are struggling with weak demand and high inventory levels, leading to significant financial distress [3] Major Company Bankruptcies - Notable bankruptcies include FirstBrandsGroup, with over $10 billion in debt, and Tricolor Holdings, which resulted in a $1.7 billion write-off for JPMorgan [5] - Office Properties Income Trust (OPI) also filed for bankruptcy, burdened by over $1 billion in debt amid a downturn in the office real estate market [5] Causes of Bankruptcy Surge - The surge in bankruptcies is attributed to rising interest rates initiated by the Federal Reserve, which have significantly increased borrowing costs for companies [7] - Tariff policies from the previous administration have further exacerbated the financial strain on companies reliant on imported materials, particularly in the industrial sector [7] Future Outlook - The market is divided on the future of the bankruptcy trend, with optimists viewing it as a normal industry correction, while cautious analysts warn of the potential for worsening conditions if high tariffs and interest rates persist [11] - The current environment is characterized by a struggle for survival among companies, balancing high costs against weak demand [11]

Financial Data and Key Metrics Changes - The company reported distributable earnings of $0.44 per share, adjusted net income of $0.22 per share, and adjusted EBITDA of $20.5 million for Q4 2025, all in line with expectations [4][17] - Recurring service revenues were approximately $45.5 million, a sequential increase of about $1.5 million, driven by increases in enterprise values at DHC, ILPT, and SVC [17] - The company expects recurring service revenues to decrease to approximately $42.5 million in the next quarter due to lost fee revenue from the sale of a life science business [17] Business Line Data and Key Metrics Changes - DHC's consolidated shop NOI increased 8% year over year to $29.6 million, with a 210 basis point increase in occupancy to 81.5% and a 5.3% increase in average monthly rates [5] - SVC completed the sale of 40 hotels for over $292 million and is on pace to sell a total of 121 hotels in 2025 for $959 million [6] - Seven Hills delivered solid performance with a fully performing $642 million loan portfolio and announced a rights offering to raise approximately $65 million in new equity [7][8] Market Data and Key Metrics Changes - The company arranged almost 1.4 million square feet of leases in the past quarter, with rental rates approximately 14% higher than previous rents for the same space [11] - The company believes that 2026 will be a better year for institutional investments in real estate, as recent conversations with potential partners have reinforced commitments to the U.S. and many sectors [12] Company Strategy and Development Direction - The company is focused on helping SVC drive EBITDA growth across its hotel portfolio while managing ongoing revenue displacement from renovation activity [6] - The company is pursuing new growth initiatives in the private capital space to drive future revenue and earnings growth [10] - The company is actively sourcing investment opportunities in the retail sector, aiming to build a portfolio of value-add multi-tenant retail properties [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic initiatives undertaken despite a continued unsettled economic environment [4] - The company anticipates a decline in adjusted EBITDA and distributable earnings per share in the next quarter primarily due to the sale of a life science business [20] - Management remains committed to supporting OPI during its restructuring process and believes the restructuring support agreement will strengthen OPI's financial position [9] Other Important Information - The company ended the quarter with $162 million of total liquidity, including $62 million in cash and $100 million of capacity on its undrawn revolving credit facility [20] - The company has agreed to backstop the rights offering for Seven Hills, demonstrating confidence in its business prospects [8] Q&A Session Summary Question: Does OPI's fee go up quarter to quarter? - The fee is effectively flat, with a fixed fee of $14 million per year for the first two years post-bankruptcy [26][27] Question: Where does shopping centers fit in the private capital strategy? - The company has core competency in retail and is looking to build a track record in investing in neighborhood and grocery-anchored shopping centers [29][30] Question: Any updates on the rights offering? - It is too early to tell how many shareholders will exercise their rights, but there is interest from new shareholders in buying rights from those who do not want to exercise [52] Question: What is the expected impact of the loss of managing AlerisLife? - A $1 million decrease in fee revenue is expected in the coming quarter, with an additional $400,000 reduction in fiscal Q2 [38] Question: How flexible is G&A spending if OPI's portfolio changes? - The company believes it could significantly reduce costs if it were not managing a large office portfolio, as office management is the most intensive [46]

Summary of the Conference Call Company and Industry Involved - **Company**: 富博集团 (Fubo Group) - **Industry**: Generative AI, Video Content Creation, Copyright Management Key Points and Arguments Sora 2 Overview - Sora 2 allows users to generate videos through text or image prompts, similar to TikTok, with initial content quality being well-received. However, copyright management has tightened, limiting daily video generation and restricting prompts involving well-known IPs [2][3][4] - Sora 2 represents a new milestone in generative AI, with significant improvements in generation effects, image control, and clarity, creating investment opportunities in content production and computing power [2][5] Market Impact - The launch of Sora 2 has led to a surge in downloads, surpassing GenAI and ChatGPT, indicating strong market interest [3] - The application has made notable improvements in copyright protection, implementing stricter measures as user numbers grow, which is expected to enhance its position in the global market [4][7] Technological Advancements - Sora 2's technology marks a shift towards multimodal generation, requiring higher computational power compared to traditional models, thus presenting new challenges and opportunities in the market [6][9] - The Diffusing Transformer used in video generation faces memory constraints, necessitating large HBM or future DDR5 support, highlighting the need for advanced hardware [9] Business Growth and Strategy - Fubo Group anticipates significant business growth from Sora's overseas expansion, particularly in copyright management, through partnerships with major platforms [7][8] - The Solo 2 product, launched as an independent app, achieved 140,000 downloads in its first two days, indicating strong user demand for AI-generated video content [12] Future Collaborations and Trends - Future collaborations for Solo 2 may include partnerships with IP owners and content creators, expanding into various video formats and social media platforms [13] - The rise of AI-generated content is expected to increase the demand for copyright protection and management, impacting multiple related industries [11][25] Financial Outlook - Fubo Group's revenue is projected to grow significantly, with AI-generated content expected to dominate active assets by the end of the year [33] - The company recently completed a financing round of 1.6 billion HKD to support R&D and team expansion, positioning itself for future growth [34] Challenges and Opportunities - The evolving copyright landscape poses challenges, but also opportunities for companies like Fubo Group to establish themselves as leaders in copyright management and content generation [19][20] - The potential for traditional media companies like Disney to adapt to digital content trends could reshape the industry, emphasizing the importance of flexible copyright strategies [35][38] Conclusion - Fubo Group is well-positioned to leverage advancements in generative AI and video content creation, with a focus on copyright management and strategic partnerships to drive future growth and innovation in the industry [44][45]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $0.28 per share, distributable earnings of $0.43 per share, and adjusted EBITDA of $20.1 million, all in line with expectations [4][11] - Recurring service revenues were approximately $44 million, a sequential decrease of about $1.5 million, primarily due to lower property management fees at RMR Residential [11] - The company expects service revenues to increase to approximately $45 million next quarter based on favorable trends in managed REITs [11] Business Line Data and Key Metrics Changes - The Managed REITs have seen share price improvements, particularly for DHC and ILPT, which have increased substantially year to date [4] - The private capital business totals over $12 billion, with a focus on retail, residential, credit, and select development opportunities [4] - The retail sector is accumulating a portfolio of value-add multi-tenant retail assets valued at approximately $100 million, with a recent investment of $21 million in a community shopping center [5] Market Data and Key Metrics Changes - DHC's same property cash basis NOI increased by 18.5% year over year, driven by strong sector fundamentals [8] - SVC's RevPAR increased by 40 basis points year over year, outperforming the industry by 90 basis points despite renovation-related revenue displacement [9] - ILPT refinanced $1.2 billion of floating rate debt with new fixed-rate debt at a weighted average interest rate of 6.4% [9] Company Strategy and Development Direction - The company is focused on strategic initiatives for Managed REITs and private capital business, including deleveraging actions through asset sales and refinancings [4] - The residential sector is expected to benefit from decelerating supply growth and favorable migration trends, targeting mid to high teen returns [6] - The company aims to grow private capital AUM over the long term, with recent hiring of a Senior Vice President to enhance capital formation efforts [7] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty but remains focused on strategic initiatives [4] - The fundraising environment for private capital is challenging but showing signs of improvement, with expectations of continued ramp-up in the next six months [20] - The company anticipates adjusted EBITDA of approximately $20.5 million and distributable earnings between $0.44 and $0.46 per share for the next quarter [15] Other Important Information - The company expects to end the fiscal year with approximately $60 million in cash and no borrowings on its $100 million line of credit [15] - The dividend is funded through two sources: ARMOUR LLC and RMR Inc, with a coverage ratio of 74% from the operating business [45] Q&A Session Summary Question: What is the outlook for the fundraising environment on the private capital side? - Management acknowledged that while the fundraising environment remains challenging, it is improving, with increased meetings with potential capital providers [18][20] Question: Can you elaborate on the RMR Residential Enhanced Growth Venture? - The venture will include five assets, with a total equity investment of just under $100 million, aimed at attracting committed capital from investors [22][24] Question: What is the expected size of the fundraising on the residential side? - The goal is to raise about $300 million of equity for the residential venture, seeded with just under $100 million of assets [29] Question: How does the company view the performance of RMR Residential? - The current run rate is expected to remain steady until the fundraising environment normalizes, with AUM currently at about $4.6 billion [35][55] Question: What is the rationale behind the dividend coverage? - The dividend is funded through operating business contributions and cash reserves, with a focus on maintaining coverage as the business grows [45][47]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $0.28 per share and distributable earnings of $0.40 per share, which were slightly below expectations [5][13] - Recurring service revenues were $45,500,000, a sequential decrease of approximately $1,800,000, primarily due to lower capital spending and declines in enterprise values of managed equity REITs [13] - The company expects recurring service revenues for the next quarter to be between $44,000,000 and $45,000,000 [13] Business Line Data and Key Metrics Changes - The company closed two joint venture acquisitions of residential communities in South Florida for an aggregate transaction value of approximately $196,000,000 [6] - A value-add community shopping center in Chicago was acquired for $21,000,000, which is currently 77% occupied, with plans to increase occupancy and rents [8] - The company anticipates the Chicago acquisition to generate EBITDA of approximately $350,000 per quarter in fiscal 2025 [13] Market Data and Key Metrics Changes - The company noted a decrease in new supply in the residential sector, which is expected to positively impact rent growth and occupancy gains heading into 2026 [6] - The company highlighted strong performance from public capital clients, with DHC's SHOP segment seeing a 49% year-over-year improvement in consolidated NOI [9] - SVC's RevPAR improved by 2.6% year-over-year, outpacing the industry despite renovation activities [10] Company Strategy and Development Direction - The company aims to take advantage of investment opportunities in the current economic volatility, particularly in the residential sector and value-add retail [5][6] - The strategy includes diversifying the client base and growing private capital assets under management (AUM), which have grown from essentially zero to over $12,000,000,000 in less than five years [9] - The company plans to leverage its expertise in retail to establish a track record in the value-add retail sector [8][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current economic volatility and its impact on capital expenditures and revenues [5] - They expressed confidence in the ability to grow private capital AUM despite a challenging fundraising environment [9] - Management believes that the current quarter represents a low point for revenue and expects improvements as AUM grows and REIT share prices recover [33] Other Important Information - The company has $137,000,000 in cash on hand and no corporate debt, positioning it well for strategic opportunities [15] - The dividend payout ratio is approximately 79%, and management feels comfortable with the current coverage [15][33] - The company published its annual sustainability report, detailing its commitment to sustainability across its portfolio [15] Q&A Session Summary Question: Can you provide more details on the strategic rationale for the value-add retail acquisition? - Management explained that this acquisition is a new direction for the company, leveraging their expertise in retail to generate high returns in community shopping centers [19][22] Question: Is the current run rate for construction fees sustainable? - Management indicated that the first calendar quarter is typically low, and the current run rate may persist due to capital constraints at REIT clients [26] Question: How do you feel about the coverage for dividends? - Management expressed confidence in the dividend coverage, noting it is currently at 79% and that this is a low point for the company [30][33] Question: What are potential partners looking for in the current environment? - Management noted that partners are seeking higher returns and that the fundraising environment is challenging but improving [36][37] Question: What is the size of the value-add shopping center portfolio? - Management stated that the current investment is $21,000,000, with plans to grow it to approximately $100,000,000 in aggregate assets [42]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $0.28 per share and distributable earnings of $0.40 per share, which were slightly below expectations [5][13] - Recurring service revenues were $45,500,000, a sequential decrease of approximately $1,800,000, primarily due to lower capital spending and declines in enterprise values of managed equity REITs [13] - The company expects recurring service revenues for the next quarter to be between $44,000,000 and $45,000,000 [13] Business Line Data and Key Metrics Changes - The company closed two joint venture acquisitions of residential communities in South Florida for an aggregate transaction value of approximately $196,000,000 [6] - A value-add community shopping center in Chicago was acquired for $21,000,000, which is currently 77% occupied, with plans to increase occupancy and rents [7][8] - The company anticipates the Chicago acquisition to generate EBITDA of approximately $350,000 per quarter in fiscal 2025 [13] Market Data and Key Metrics Changes - The company noted a decrease in new supply in the residential sector, which is expected to support rent growth and occupancy gains heading into 2026 [6] - The company highlighted strong performance from public capital clients, with DHC's SHOP segment seeing a 49% year-over-year improvement in consolidated NOI [9] - SVC's RevPAR improved by 2.6% year over year, outpacing the industry despite renovation activities [10] Company Strategy and Development Direction - The company aims to take advantage of investment opportunities in a volatile market, particularly in the residential sector and value-add retail [5][6] - The strategy includes leveraging existing expertise in retail to establish a track record in value-add retail investments [7][20] - The company plans to grow private capital AUM, which has increased from essentially zero to over $12,000,000,000 in less than five years [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic volatility affecting capital expenditures and revenues but remains optimistic about future investment opportunities [5] - The company expects the current fundraising environment to improve as stability returns to interest rates [37] - Management expressed confidence in the sustainability of the dividend, with a payout ratio of approximately 79% [15][32] Other Important Information - The company has $137,000,000 in cash on hand and no corporate debt, positioning it well for strategic opportunities [15] - An annual sustainability report was published, detailing the company's commitment to sustainability across its portfolio [15] Q&A Session Summary Question: Details on the value-add retail acquisition - Management explained that the acquisition is part of a strategy to leverage retail expertise and generate high returns, with plans to build a track record before seeking third-party capital [18][20][23] Question: Outlook on lower construction fees and REIT spending - Management indicated that the current run rate for capital spending is expected to remain low for a couple of quarters due to capital constraints at REIT clients [26] Question: Dividend coverage and capital allocation - Management reassured that the dividend is well covered and emphasized the importance of providing returns to shareholders while also pursuing high-return investments [30][32] Question: Timeline for increased equity capital availability - Management noted that private capital investors are seeking higher returns and expect a more stable environment to encourage increased allocations [36][37] Question: Size of the value-add shopping center portfolio - Management confirmed the Chicago acquisition is a $21,000,000 investment and indicated plans to grow the portfolio to approximately $100,000,000 [42] Question: Impact of asset dispositions on construction supervision revenue - Management clarified that the current revenue figures account for all planned spending and active disposition activities [44]