Realty Income (O) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Company Participants Kelsey Mueller - VP - Investor RelationsSumit Roy - President and CEOJonathan Pong - Executive VP, CFO & TreasurerBrad Heffern - DirectorRyan Caviola - AssociateHaendel St. Juste - Managing DirectorRonald Kamdem - Managing Director & Head of US REITs and CRE ResearchGreg Mcginniss - DirectorRich Hightower - Managing Director, U.S. REIT ResearchJana Galan - DirectorJay Kornreich - VP - Equity ResearchAnthony Paolone - Execu ...

Park Hotels & Resorts (PK) Q1 2025 Earnings Call May 05, 2025 10:00 AM ET Company Participants Floris van Dijkum - Managing DirectorIan Weissman - Senior Vice President of Corporate StrategyThomas Baltimore - Chairman, President & CEOSean Dell'Orto - Executive VP, CFO & TreasurerDavid Katz - Managing DirectorDuane Pfennigwerth - Senior Managing DirectorC. Patrick Scholes - Managing Director - Lodging & Leisure Equity ResearchSmedes Rose - DirectorJay Kornreich - VP - Equity ResearchRobin Farley - Managing D ...

Financial Data and Key Metrics Changes - The company achieved RevPAR growth of 1.6% in Q1 2025, driven by a 2.1% increase in ADR, slightly offset by a 0.5% decline in occupancy [5][17] - First quarter occupancy was 69.1%, average daily rate was $204.31, and RevPAR was $141.23 [17] - Total revenue growth was 1.2%, benefiting from a 3.8% increase in out-of-room spend [18][20] - Adjusted EBITDA for Q1 was $77.6 million, and adjusted FFO per diluted share was $0.31 [20][22] Business Line Data and Key Metrics Changes - Group segment was the best performing, with revenue growth of 10% driven by strong citywide events [8][18] - Urban hotels achieved RevPAR growth of 3.6%, with weekday urban RevPAR growing by 4.9% [7][8] - The leisure segment saw a 2% increase in revenues, with urban leisure outperforming at 3% growth [9] Market Data and Key Metrics Changes - Strong RevPAR growth was noted in urban markets such as San Jose (14.1%), Houston CBD (9.9%), Philadelphia (26.4%), Pittsburgh (12.6%), and Louisville (10.3%) [18] - International demand remains soft, representing less than 3% of revenues, primarily in markets like New York and South Florida [13] Company Strategy and Development Direction - The company is focused on capital recycling and strengthening its balance sheet, including opportunistic asset sales and share repurchases [6][10] - The company is optimistic about the long-term outlook for lodging fundamentals, supported by consumer preferences for experiences and a favorable operating environment for urban markets [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fundamentals have moderated and uncertainty persists due to macroeconomic risks, leading to an adjustment in full-year guidance [11][12] - The company expects RevPAR growth for 2025 to range between negative 1% and positive 1% [25] - The booking window has shortened, with a noted increase in cancellations primarily in the government segment [47][48] Other Important Information - The company ended Q1 with over $800 million in liquidity and $2.2 billion in debt, maintaining a strong balance sheet [22] - The company has a new $250 million share repurchase program approved by the Board [22] Q&A Session Summary Question: Can you provide insights on April's performance and how it compared to expectations? - Management indicated that April was expected to be slightly positive but came in lower than anticipated due to elongated spring break and softening government demand [30][31] Question: What is the current state of the balance sheet and capital markets? - The bank group market remains strong, with capacity for top-quality sponsors, while high-yield issuance has seen some widening in spreads [34][35] Question: What are the trends in the group segment and future bookings? - The group segment is performing well, with a healthy booking pace for the year, although cancellations were noted primarily in the government sector [78] Question: How is the company addressing the uncertainty in the transaction market? - The company is taking an opportunistic approach to asset sales, with one additional asset currently under consideration [92]

Financial Data and Key Metrics Changes - The company reported Q1 RevPAR of $178, reflecting a modest 70 basis point decline year-over-year, primarily due to difficult comparisons following last year's nearly 8% growth [18] - Total hotel revenues for the quarter were $608 million, with hotel adjusted EBITDA at $151 million, resulting in a nearly 25% hotel adjusted EBITDA margin [18] - Adjusted EBITDA for the quarter was $144 million, and adjusted FFO per share was $0.46 [19] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando saw a 32% RevPAR increase, driven by a surge in transient revenues of nearly 65% [10] - Casa Marina in Key West delivered a 12% RevPAR increase, with occupancy up 680 basis points [11] - RevPAR across the two Hawaii properties declined by 15%, with Hilton Hawaiian Village significantly impacted by a labor strike [12] Market Data and Key Metrics Changes - Miami, New Orleans, Puerto Rico, Washington DC, and San Francisco reported above industry average RevPAR gains [5] - Preliminary April results showed mixed performance, with RevPAR growth of 1.6%, driven by strong gains in New York, Orlando, and San Francisco [15] - International demand represents just 10% of total room nights, with government-related business accounting for only 3% [16] Company Strategy and Development Direction - The company plans to invest $310 million to $330 million in capital improvements in 2025, focusing on unlocking embedded value in its portfolio [8] - A transformative renovation of the Royal Palm South Beach, Miami, is set to begin soon, with expected returns exceeding 15% to 20% [6] - The company aims to sell $300 million to $400 million of non-core hotels this year, with several assets in various stages of marketing [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing geopolitical uncertainties and their impact on decision-making in the market [26] - The outlook for Hawaii remains favorable, supported by limited new supply expected through at least 2029 [14] - Despite macro uncertainties, the company remains focused on factors within its control and is working closely with operators to manage operating expenses [16] Other Important Information - The company repurchased approximately 3.5 million shares for a total of $45 million during the quarter [9] - A $70 million impairment was recognized in the quarter, related to an asset whose true value was reassessed [75] Q&A Session Summary Question: Comments on planned asset sales and current market environment - Management acknowledged tremendous uncertainty in the market due to geopolitical issues and trade wars, but expressed confidence in their ability to transact even under challenging conditions [26][27] Question: Update on Hawaii's performance and ramp-up post-strike - Management noted that the ramp-up is taking longer than expected, with sequential improvement anticipated, and expressed confidence in Hawaii's long-term growth potential [30][31] Question: Changes in core hotels and capital allocation - The company has focused on trimming its portfolio to core assets that account for 85-90% of its value, with plans to recycle capital from non-core asset sales [35][36] Question: Group pace and market performance expectations - Management indicated that group pace is slightly down for Q2 and Q3 but remains strong for Q4, with confidence in the overall bookings for the year [60][61] Question: Performance of Hilton Hawaiian Village and EBITDA expectations - Management stated that while it is challenging to predict if EBITDA will exceed last year's performance, they remain bullish on Hawaii's long-term outlook [73][74]

Core Insights - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research methodology emphasizes a structured framework to identify companies with durable business models and mispriced cash flow potential, prioritizing simplicity and relevance in valuation [1] - The coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] Research Methodology - Moretus Research employs rigorous fundamental analysis combined with a judgment-driven process, avoiding noise and overly complex forecasting [1] - Valuation is based on sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability and simplicity [1] Investment Philosophy - The research reflects a deep respect for capital, discipline, and long-term compounding, aiming to elevate the standard for independent investment research [1] - The insights provided are designed to be actionable, focusing on what truly matters in modern equity analysis [1]

Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an over-weight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income, reflecting the author's background in the oil and gas industry [1] Portfolio Management Approach - A top-down capital allocation approach is recommended, tailored to each investor's personal situation, including factors such as age, retirement status, risk tolerance, income, net worth, and goals [1] - Suggested investment categories include S&P 500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash [1]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $15.6 million, adjusted EBITDAre of $72.9 million, and adjusted FFO per share of $0.51, reflecting nearly 12% growth in adjusted EBITDAre and nearly 16% growth in adjusted FFO per share compared to Q1 2024 [5][6][30] - RevPAR grew by 6.3% year-over-year, with same property RevPAR for the 31 hotel portfolio at $188.73, occupancy increasing by 80 basis points, and ADR increasing by 3.6% [5][17] Business Line Data and Key Metrics Changes - The Grand Hyatt Scottsdale's RevPAR grew by approximately 60% in Q1 2025 compared to the same quarter last year, driven by the completion of its transformative renovation [9][22] - One-third of the company's assets achieved double-digit percentage RevPAR growth, while several others experienced high single-digit percentage growth [6][17] Market Data and Key Metrics Changes - Hotels in Washington DC and New Orleans benefited from significant events, such as the presidential inauguration and the Super Bowl, contributing positively to RevPAR [6] - The Houston market experienced softness due to winter storms impacting travel, leading to a 2.1% increase in January RevPAR but a decline in occupancy [18] Company Strategy and Development Direction - The company completed two significant transactions, acquiring land in Santa Clara for $25 million and selling Fairmont Dallas for $111 million, reflecting prudent capital allocation [10][12] - The company plans to reduce capital expenditures for 2025 to between $75 million and $85 million, a reduction of $25 million compared to previous guidance, in response to macroeconomic uncertainties [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite macroeconomic uncertainties, noting that all high-quality branded hotels cater to more resilient customers [15][30] - The company expects RevPAR growth to be driven more by occupancy than rate, with a forecasted full-year RevPAR growth of approximately 4.5% [30][31] Other Important Information - The company increased its quarterly dividend by 17% and repurchased 2.7% of its outstanding shares during Q1 2025 [16][29] - The company has a strong balance sheet with a leverage ratio of 5.4 times trailing twelve months net debt to EBITDA, and current liquidity of approximately $75 million [28][29] Q&A Session Summary Question: Have group booking trends evolved in response to the current uncertainty? - Management noted that group booking activity remains healthy with no uptick in cancellations or attrition, indicating a positive outlook for group business [40][41] Question: Have you seen any meaningful impact from lower international inbound travel? - Management indicated limited impact from lower international visitation, as the portfolio is not heavily dependent on international travel [42][43] Question: Can you provide background on the Santa Clara acquisition? - The acquisition was a unique opportunity from the city of Santa Clara, aimed at eliminating future rent escalation risks and increasing asset value [46][50] Question: What is the plan for deferred CapEx projects? - Management stated that they will continually evaluate deferred projects and may consider executing them in 2026, depending on macroeconomic conditions and tariff impacts [52][70] Question: What are the trends in leisure business? - Management observed varied performance in leisure business across properties, with a slight decline expected in leisure RevPAR for the year [57][62]

Financial Data and Key Metrics Changes - Core FFO for Q1 was reported at $1.21 per diluted share, reflecting a 2.1% year-over-year increase in same store NOI [13][14] - Revenues from same store communities increased by 3.5% compared to the same quarter of 2024, with occupancy rising by 120 basis points to 95.8% [13][14] - Same store expenses increased by 5.8% year-over-year, primarily due to property taxes [14] Business Line Data and Key Metrics Changes - The average physical occupancy for the same store portfolio improved to 96%, with April renewal retention at approximately 57% [5][6] - Blended leasing spreads increased by 70 basis points in Q1, with renewal increases steady at 2% to mid-3% levels [5][6] - New lease spreads improved from negative 1.1% in Q1 to positive 2.4% in April [6] Market Data and Key Metrics Changes - The multifamily market is experiencing strong demand, with a projected 2.2% expansion of apartment stock in the company's markets over the next twelve months, down from 3.8% the previous year [9] - In Minneapolis, leasing spreads are outperforming the portfolio average, while Denver is still facing supply pressure [7][10] - North Dakota leads the portfolio with blended leasing spreads of 5.3% year-to-date, indicating strong market performance [6][10] Company Strategy and Development Direction - The company is focused on maintaining discipline in all controllable areas and is prepared to capitalize on opportunities to advance its platform [7][11] - The capital allocation strategy emphasizes enhancing the differentiated Mountain West and Midwest geography [11] - The company aims to evaluate new investment opportunities while being mindful of market exposures and leverage [11] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed guidance for the full year, expecting to achieve a core FFO midpoint of $4.98 per share and same store NOI growth of 2.25% [15] - The company is optimistic about the demand trends in the Midwest and Mountain West regions, despite some challenges in Denver [7][10] - Management noted that the macroeconomic environment remains volatile but believes in the long-term durability of the multifamily asset class [10] Other Important Information - The company reported a robust liquidity position with over $223 million available between cash and credit lines [15] - The debt maturity profile is well-laddered with minimal maturities this year and a weighted average debt cost of 3.6% [15] Q&A Session Summary Question: Are operations ahead of plan given strong Midwest apartment market? - Management acknowledged strong performance in the Midwest, particularly in North Dakota and Omaha, and confirmed they are on plan [18][19] Question: Will occupancy decrease in peak season for rate increases? - Management projected occupancy around 95% for the year, with current occupancy at 96% [21][22] Question: How to expect growth in OpEx for the remainder of the year? - Management indicated some lumpiness in OpEx, particularly in real estate taxes, but expects smoother growth moving forward [25][29] Question: What is the outlook for the Denver market? - Management noted a 200 basis point improvement in new lease spreads in April and anticipates an inflection point in rents by the end of the year [35][38] Question: How does agriculture impact local economies in the markets? - Management stated that while agriculture is significant, healthcare and education are the primary economic drivers in their markets [54][56] Question: What are the expectations for new lease rates for the year? - Management expects new lease rates to improve and taper off into the fall, affirming their guidance [65][66]

Hecla Mining Company (HL) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Mike Parkin - VP - Strategy & IRRob Krcmarov - President and Chief Executive OfficerRussell Lawlar - SVP, CFOCarlos Aguiar - Senior VP & COOHeiko Ihle - MD & Equity ResearchDalton Baretto - Managing Director, Equity ResearchMichael Siperco - DirectorKurt Allen - Vice President of ExplorationAndrew Dusome - Equity Research Associate, Metals & MiningHenry Hearle - Equity Research AssociateJoseph Reagor - Managing Dir ...

Olin (OLN) Q1 2025 Earnings Call May 02, 2025 09:00 AM ET Company Participants Steve Keenan - Director of Investor RelationsKenneth Lane - President, CEO & DirectorTodd Slater - SVP & CFODavid Begleiter - DirectorJosh Spector - Executive DirectorKevin McCarthy - PartnerFrank Mitsch - PresidentVincent Andrews - Managing DirectorJohn Roberts - Managing DirectorMatthew Blair - Managing DirectorMichael Sison - Managing Director Conference Call Participants Patrick Cunningham - Vice President, Senior AnalystAlek ...