Financial Data and Key Metrics Changes - The company reported $0.70 per share in Funds From Operations (FFO), exceeding consensus by $0.01 [6] - Same property net operating income (NOI) increased by 1.2% on a cash basis and 1.6% year to date [6] - The midpoint of the full-year guidance was raised to $2.82 per share, reflecting a 4.8% growth rate over the previous year [8][36] Business Line Data and Key Metrics Changes - Leasing activity was strong, with 334,000 square feet of leases completed, 80% of which were new or expansion leases [7][16] - Cash rents on second-generation space increased by 10.9% in the quarter and 5.4% year to date [7][17] - The average net rent for the quarter was $40.95, a 14% increase over the previous quarter [18] Market Data and Key Metrics Changes - The office market in Atlanta saw a significant reduction in inventory, with a decrease of 2.9 million square feet, marking the largest quarterly reduction recorded [20] - Positive net absorption was reported in the Atlanta market for the first time in ten quarters [20] - In Austin, leasing volume reached 1.2 million square feet, up 11.4% from the three-year quarterly average [19] Company Strategy and Development Direction - The company aims to grow earnings, cash flow, and net asset value (NAV) by increasing occupancy and reducing capital expenditures [11] - There is a focus on upgrading the quality of the lifestyle portfolio and enhancing geographic and industry diversification [11] - The company plans to recycle capital from older properties with lower occupancy and higher CapEx profiles to fund new acquisitions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while uncertainties over tariffs and interest rates persist, there are encouraging signs in the Sunbelt lifestyle office market [9] - The investment sales market is opening up, with more private investors actively pursuing office acquisitions [10] - Management expressed confidence in the ability to grow earnings both organically and through acquisitions, despite macroeconomic uncertainties [37] Other Important Information - The company completed the acquisition of The Link, a trophy lifestyle office property in Uptown Dallas, for $218 million [26] - The initial cash yield from The Link is anticipated to be 6.7%, with a gap yield of 8.3% [28] - The company has executed transactions totaling $2.3 billion in lifestyle office properties since 2019 [12] Q&A Session Summary Question: Can you provide more context around the underwriting of The Link acquisition? - Management highlighted the below-market rents and strong tenant profile as key factors in the acquisition decision [40][41] Question: How much are you looking at in terms of potential acquisitions? - Management is continuously evaluating market and off-market opportunities and expects more compelling options in the second half of the year [43] Question: Which market saw a decline in leasing spreads? - The Phoenix market did not see roll-ups in rents due to limited qualifying leases [46] Question: Can you discuss the non-core dispositions? - Dispositions will be driven by new investment opportunities, focusing on older properties with higher CapEx profiles [47][48] Question: What is the status of the Newhof project? - Management remains optimistic about Newhof, noting recent improvements in leasing activity and tenant interest [52][54] Question: What trends are being observed in the leasing pipeline? - The leasing pipeline remains strong across all markets, with financial services being the heaviest contributor [72] Question: How is the capital market environment currently? - The capital markets have improved, with lower borrowing costs and increased liquidity, which is favorable for transactions [102]

Core Insights - Brookfield Business Partners reported strong financial results for Q2 2025, with net income of $26 million compared to a net loss of $20 million in Q2 2024, indicating resilience in an uneven macroeconomic environment [2][3][34] - The company achieved an Adjusted EBITDA of $591 million for Q2 2025, up from $524 million in the same period last year, driven by improved performance and contributions from recent acquisitions [3][4][5] - Strategic initiatives included the sale of a partial interest in three businesses for approximately $690 million and a partnership to privatize First National Financial Corporation for $2.7 billion [8][9] Financial Performance - For the three months ended June 30, 2025, net income attributable to unitholders was $26 million ($0.12 per unit), compared to a net loss of $20 million ($0.10 per unit) in the prior year [2][3] - Adjusted EBITDA by segment for Q2 2025: Industrials $307 million, Business Services $205 million, Infrastructure Services $109 million, and Corporate and Other $(30) million [4][5][6] - Total revenues for Q2 2025 were $6.695 billion, with direct operating costs of $5.465 billion, resulting in an income before income tax of $70 million [24] Strategic Initiatives - The company completed the sale of a partial interest in three businesses to a new private equity fund, with an initial redemption value of approximately $690 million [8] - Brookfield Business Partners entered a partnership to privatize First National Financial Corporation for $2.7 billion, with an expected equity contribution of approximately $145 million [9] - The acquisition of Antylia Scientific for approximately $1.3 billion was completed, with Brookfield investing $168 million for a 26% interest [10] Liquidity and Capital Management - As of June 30, 2025, the company had approximately $2.3 billion in liquidity, including $2.2 billion available on credit facilities [12] - During the quarter, Brookfield invested $56 million to repurchase 2.2 million units at an average price of approximately $25 per unit, totaling $157 million in buybacks year-to-date [11] Distribution - The Board of Directors declared a quarterly distribution of $0.0625 per unit, payable on September 29, 2025, to unitholders of record as of August 29, 2025 [13][37]

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.51 and core FFO per share of $0.50 for Q2 2025, reflecting strong operational performance [14] - Same property NOI grew by 3.3%, driven by a 250 basis point contribution from higher minimum rents and a 50 basis point improvement in net recoveries [15] - The company increased its NAREIT and core FFO per share guidance by $0.01 each, primarily due to lower than anticipated bad debt and higher than anticipated overage rent [15] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q2 were 17%, the highest quarterly blended spread in the past five years [5] - Leasing spreads for non-option renewals were nearly 20% in Q2 and 16% over the last twelve months [6] - New leasing volume more than doubled sequentially, driven by 11 new anchor leases executed in Q2 [6] Market Data and Key Metrics Changes - Over 80% of the boxes recaptured due to recent bankruptcies are leased or in active negotiations, indicating strong demand in the market [11] - The small shop lease rate increased by 30 basis points sequentially and 80 basis points year over year, reflecting a disciplined approach to leasing [8] Company Strategy and Development Direction - The company is focused on capital recycling efforts to reshape its portfolio and reduce exposure to at-risk tenants, with significant steps taken in executing its long-term portfolio vision [10] - Strategic partnerships with GIC now comprise over $1 billion of gross asset value, indicating a strong focus on lifestyle and mixed-use assets [11] - The company aims to enhance its long-term growth profile by prioritizing credit quality and strong starting rents in its leasing strategy [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing momentum and the potential for significant occupancy gains in the coming quarters [14][45] - The company is focused on delivering strong results and creating long-term value, despite short-term disruptions from anchor bankruptcies [12][18] - Management believes that the current market conditions present a great opportunity for growth and investment in the stock [49] Other Important Information - The company has comprehensive flood insurance for Eastgate Crossing, which suffered flooding due to Tropical Storm Chantal [12] - The company opportunistically returned to the public debt market by issuing a seven-year $300 million bond at a coupon of 5.2% [17] Q&A Session Summary Question: Have you seen any meaningful changes in lease gestation periods? - Management noted that leasing activity has picked up substantially, indicating strong demand across the board [20] Question: What are you hearing from prospective tenants regarding higher embedded escalators? - Management reported success in generating higher growth, with embedded growth in the overall portfolio at 3.4% for the first half of the year [23][24] Question: Can you comment on the forward leasing pipeline and July activity? - Management expressed confidence in the strong demand and the quality of opportunities available for retailers [27] Question: What is the latest on the sale of City Center? - The property is still being marketed for sale, with new leasing activity providing some positive momentum [37] Question: How are you seeing investor interest in larger community centers? - Management indicated strong demand for larger format centers, with institutional investors showing renewed interest [43] Question: What is the appetite for share buybacks today? - Management stated that they are always considering buybacks but are currently focused on capital investments with high returns [102]

Financial Data and Key Metrics Changes - The company reported core FFO of $0.48 per share for Q2 2025, with a year-to-date total of $0.97 per share, aligning with the full-year guidance range of $1.88 to $1.94 per share [24] - AFFO for the quarter was $0.41 per share, bringing the year-to-date total to $0.84 per share, tracking well against the full-year guidance range of $1.58 to $1.64 per share [24][25] - The net debt to trailing twelve-month adjusted EBITDA ratio stood at 5.3 times, slightly below the target range of 5.5 to 6 times, indicating a disciplined approach to leverage [22] Business Line Data and Key Metrics Changes - Same store core revenue growth for Q2 was 2.4% year-over-year, while core operating expenses rose by 2.2%, resulting in a percent NOI growth [16] - Blended rent growth for Q2 was 4%, driven by 4.7% renewal rent growth and 2.2% growth in new leases, highlighting the importance of renewals as over three-quarters of the business comes from this segment [17][36] - Average resident tenure increased to 40 months, with a renewal rate approaching 80%, reflecting high resident satisfaction and lower turnover costs [8][16] Market Data and Key Metrics Changes - The company acquired just under 1,000 wholly owned homes in Q2, primarily newly built, which supports the ongoing demand for rental units in the U.S. housing market [10] - The average new resident age is in the late 30s, with an estimated 13,000 people turning 35 every day for the next decade, indicating a long-lasting demand tailwind for the business [10] - Same store average occupancy for July was reported at 96.6%, with renewal lease rate growth at 5% and new lease rate growth at 1.3% [19] Company Strategy and Development Direction - The company aims to consistently deliver high-quality housing in desirable neighborhoods, supported by a resident-first service platform [12] - The launch of a developer lending program is intended to allow the company to participate earlier in the value chain, with the goal of purchasing communities upon stabilization [11] - The company is focused on maintaining strong partnerships with builders to enhance acquisition strategies and capitalize on market opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding the acquisition guidance of $500 million to $700 million for the year, supported by a robust pipeline [11] - The macro environment continues to reinforce the value of the company's offerings, with a significant need for new homes in the U.S. [9] - Management acknowledged the challenges posed by seasonal turnover and market supply, but remains optimistic about the long-term demand for rental housing [31][36] Other Important Information - The company has a strong balance sheet with approximately $1.3 billion in unrestricted cash and undrawn capacity on its revolving credit facility, providing flexibility for growth initiatives [22] - Over 83% of the company's debt is unsecured, and nearly 88% is fixed rate or swapped to fixed rate, enhancing financial stability [22] Q&A Session Summary Question: Occupancy guidance for the second half of the year - Management indicated that the occupancy guidance reflects expected seasonal turnover, with July occupancy at 96.6% and a typical decline anticipated in Q3 [30] Question: New lease pricing and market conditions - Management acknowledged that new lease pricing has been under pressure due to increased supply but expects improvements as the market absorbs existing inventory [34] Question: Transaction market and portfolio opportunities - The company continues to evaluate portfolio opportunities and engage with homebuilders for attractive acquisitions, maintaining a cautious approach [39] Question: BTR supply and scattered site inventory - Management noted that while scattered site supply is putting pressure on rents, the overall BTR market is showing signs of improvement [50] Question: Property tax expectations - Management anticipates that property tax expense growth will return to historical levels over the long term, despite current pressures [102]

Brookfield Infrastructure Partners (BIP) Q2 2025 Earnings Call July 31, 2025 09:00 AM ET Company ParticipantsDavid Krant - CFO & Managing Partner - InfrastructureBrian Baker - Operating Partner - InfrastructureSam Pollock - CEOCherilyn Radbourne - MD - Equity ResearchDevin Dodge - Director - Equity ResearchDave Joynt - Managing Partner - InfrastructureMaurice Choy - Director - Canadian Energy InfrastructureFrederic Bastien - MD & Head of Industrial ResearchRobert Hope - MD - Equity ResearchConference Call P ...

Financial Data and Key Metrics Changes - Same store revenues increased by 1% year-over-year, with same store NOI growing by 2% in the quarter [4][9] - Core FFO per share was $0.28, up from $0.27 in Q1 2025 [9] - Same store operating expenses decreased by 60 basis points compared to the prior year, fully offsetting softer revenue growth [5][9] Business Line Data and Key Metrics Changes - Renewal leasing showed strong retention, contributing to a modest increase in average occupancy [4] - Blended rent growth lagged expectations due to softer market conditions, with new lease trade-offs down 3.1% in the first half of the year [5][10] - Average effective monthly rents increased by 90 basis points, while bad debt improved by 20 basis points compared to the prior year [9] Market Data and Key Metrics Changes - Deliveries in the portfolio are tapering off, with supply growth expected to be less than 2% in 2026, a 43% reduction from 2024 [7] - Market conditions in Dallas and Tampa were noted as slower than anticipated, with increased supply impacting pricing power [44][45] - Strong absorption was observed in markets like Lexington, Columbus, and Oklahoma City, indicating potential for growth [46] Company Strategy and Development Direction - The company plans to recycle capital from older assets into newer communities with lower CapEx profiles [6][38] - An acquisition pipeline remains strong, with $315 million of additional acquisitions expected before year-end [7][13] - The company aims to maintain a balance between Sunbelt and Midwest exposure while focusing on growth in Orlando [65][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a multiyear period of improving fundamentals in the multifamily sector, with expectations for stronger leasing environments in 2026 [18] - The company anticipates continued strong demand for its communities, supported by declining bad debt and increased tour volumes [18] - Management acknowledged lingering supply pressures and macroeconomic uncertainties affecting market rates [30][57] Other Important Information - The company completed 454 value-add renovations in the quarter, achieving a weighted average return on investment of 16.2% [6] - The balance sheet remains flexible with strong liquidity, with only 16% of total debt maturing before the end of 2027 [14] - The company expects to close on two communities in Orlando for a total purchase price of $155 million, enhancing market presence [12][13] Q&A Session Summary Question: Can you share how you approached your revised outlook versus historical seasonality? - Management indicated that the new lease trajectory was based on comparing expiring rents with current estimates, expecting continued month-to-month improvement [21][24] Question: Why is there not a significant pickup in new lease growth despite high retention? - Management attributed this to ongoing supply pressure and macroeconomic uncertainties affecting market rates [29][30] Question: What are the common threads for the assets held for sale? - The assets are older, with higher CapEx loads, and the company aims to recycle capital into newer assets with better growth profiles [37] Question: Can you provide an update on market conditions and visibility for the back half of the year? - Management noted that Dallas and Tampa faced unexpected supply challenges, but strong absorption is expected to improve conditions moving forward [44][45] Question: How is the current transaction environment affecting bid-ask spreads? - Management observed that sellers are becoming more rational, narrowing the bid-ask spread due to high interest costs and lease-up challenges [62][75]

Financial Data and Key Metrics Changes - Core FFO per share increased by 5.4% year over year, reaching $0.26 for the quarter and $0.51 for the six months [9][25] - Same store NOI growth was 2.5% for the quarter and 3.9% for the six months, with a target range of 3% to 4.5% for the year [9][10][25] - Occupancy rose by 100 basis points sequentially from Q1 to 93.9% [4][5] Business Line Data and Key Metrics Changes - The company signed $33.2 million in total lease value, slightly up from Q1, with leasing spreads of 41.4% for new leases and 15.2% for renewals, resulting in a combined leasing spread of 17.9% for the quarter [13][25] - The addition of new tenants, such as Ace Hardware and the Pickler, is expected to enhance same store NOI growth in the future [5][14] Market Data and Key Metrics Changes - The company is focusing on high-growth Sunbelt markets, which are experiencing strong leasing environments [4][5] - Significant urban developments are occurring around the company's properties, such as the $1 billion Park 8 Place redevelopment in Houston and TSMC's $165 billion investment in Phoenix [9][20][19] Company Strategy and Development Direction - The company aims to leverage its leadership position in the high-value shop space to achieve core FFO growth of 5% to 7% and same store NOI growth of 3% to 5% [4][9] - Strategic acquisitions, such as San Clemente in Austin and South Hewlett in Fort Worth, align with the company's criteria for growth and neighborhood dynamics [6][8][21] - The company is committed to capital recycling, with an estimated $40 million in acquisitions and dispositions planned for the remainder of the year [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving future same store NOI growth due to strong leasing activity and tenant mix improvements [32][33] - The company is actively managing expenses, reducing G&A and interest expenses by about 6% from the previous year [11][28] - Management reiterated guidance for core FFO per share and year-end occupancy, indicating strong momentum heading into the second half of the year [25][26] Other Important Information - The company has a strong liquidity position with $5.3 million in cash and $69 million available under the credit facility [28] - The company is focused on maintaining a dividend payout of approximately 50% of FFO, with plans to grow the dividend in line with earnings growth [28] Q&A Session Summary Question: Concerns about same store comps in upcoming quarters - Management expressed confidence in meeting forecasts due to improved occupancy and leasing activity contributing to future same store NOI growth [30][32] Question: Impact of new tenants on same store NOI - Management indicated that new tenants like the Pickler will commence in the second half of the year, contributing minimally to same store NOI this year but expected to enhance future growth [34] Question: Details on acquisitions and dispositions - Management confirmed ongoing activities related to $40 million in acquisitions and dispositions, emphasizing the importance of capital recycling [35][36] Question: Interest expense forecast changes - Management clarified that the increase in interest expense is due to timing related to acquisitions and is expected to be offset by increased non-same store NOI [39] Question: Insights on recent acquisitions - Management highlighted the quality of neighborhoods and potential for rent increases in the recent acquisitions, indicating strong upside opportunities [42][43] Question: Cap rates and market pricing trends - Management noted stability in cap rates for recent acquisitions, with a focus on asset-specific evaluations rather than broad market trends [52][53] Question: Same store growth guidance and leasing activity - Management confirmed that the guidance is based on normal leasing activity, with a mix of routine leasing and larger spaces that will contribute to future growth [60][62]

EARNINGS CALL PRESENTATION Q2 2025 DISCLAIMER The financial results in this document reflect preliminary, unaudited results, which are not final until the Company's Quarterly Report on Form 10-Q is filed. With the exception of historical information, certain statements contained or incorporated by reference herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, a ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $29.1 million, but excluding a $1.7 million reversal of interest receivable, total revenues would have been approximately $30.7 million, representing a 2.2% growth quarter over quarter compared to $30.1 million in Q1 2025 [14][15] - Funds from operations (FFO) on a diluted common share basis was $0.23, reduced by $0.28 due to one-time items, while adjusted funds from operations (AFFO) totaled $13.6 million, or $0.50 per diluted common share, also reduced by $0.06 from one-time items [15] Business Line Data and Key Metrics Changes - The occupancy rate slightly decreased from 90.9% to 90.7% during the quarter, although there was good leasing activity in the portfolio [8] - The company received $260,000 from the geriatric behavioral hospital tenant during the quarter, compared to $165,000 in the prior quarter [8] Market Data and Key Metrics Changes - The company acquired an inpatient rehabilitation facility for $26.5 million with an anticipated annual return of approximately 9.4% [10] - Six properties are under definitive purchase and sale agreements for an aggregate expected investment of $146 million, with expected returns ranging from 9.1% to 9.75% [10] Company Strategy and Development Direction - The company is focused on capital recycling opportunities to fund near-term acquisitions without over-leveraging the balance sheet [11][50] - The management is optimistic about the acquisition pipeline and is committed to closing these transactions while maintaining modest leverage levels [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing negotiations with the buyer of the geriatric behavioral hospital tenant, highlighting the buyer's experience and resources [21][44] - The company anticipates being able to increase occupancy by 100 basis points or more into 2026, driven by a focus on improving core portfolio performance [53] Other Important Information - The company declared a dividend of $47.25 per common share for Q2 2025, equating to an annualized dividend of $1.89 per share [12] - The company recorded a $1.7 million reversal of interest receivables and an $8.7 million credit loss reserve related to the geriatric behavioral hospital tenant [13] Q&A Session Summary Question: Was the recent acquisition part of the 100 pipeline? - Yes, it accounted for the reduction from seven assets to six [18] Question: How will the remaining 25% acquisition be funded? - The company is focused on capital recycling rather than relying solely on the revolver [19][20] Question: Are there plans for other options with the geriatric facilities? - The company is committed to ensuring the transaction closes and has other interested bidders if needed [21][23] Question: Will there be significant capital needed for deferred maintenance? - Any required work on the buildings is expected to be relatively minor [26] Question: What is the expected run rate for G&A expenses? - The adjusted G&A expense, excluding one-time charges, was $4.7 million, which may serve as a good run rate [27] Question: What is the leverage metric being monitored? - The company is comfortable with current leverage levels and plans to maintain them while managing acquisitions [31] Question: How are the remaining notes receivable performing? - The two remaining notes are in good standing, and the watch list remains consistent with no new top tenants added [38][39] Question: What is the status of the new operator for the geriatric facilities? - The operator has significant experience and resources, and lease terms are still under negotiation [44][46] Question: What is the expected cap rate for dispositions compared to acquisition yields? - Expected cap rates for dispositions are in the 7.5% to 8% range [51] Question: What is the expectation for core occupancy in the coming quarters? - The company aims to increase occupancy by 100 basis points or more into 2026 [53]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q2 2025 was $0.16 per diluted common share, totaling approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.62 to $0.64 [14][20] - Same store NOI growth for Q2 was 4.7%, with the same store portfolio 98% leased at quarter end [14][15] - Net debt to adjusted EBITDA was 5.8 times at quarter end, down 0.4 turns over the last twelve months [20] Business Line Data and Key Metrics Changes - The company leased approximately 2.4 million square feet year to date, with second generation base and cash based rent spreads of approximately 41% and 46% respectively [9] - The company reached a significant milestone by leasing a 1,100,000 square foot facility in Greenville Spartanburg, contributing $3.7 million of base rent in 2025 [14][10] - Portfolio occupancy increased to 94.1% in Q2, up from 93.3% in Q1 [16] Market Data and Key Metrics Changes - Net absorption in the U.S. was approximately 30 million square feet in Q2, with 20 million square feet occurring in the company's 12 target markets [8] - The construction pipeline in the target markets is approximately 90 million square feet, down nearly 75% from the 2022 peak [9] Company Strategy and Development Direction - The company continues to focus on its investment strategy in 12 target markets, which account for approximately 85% of gross assets, emphasizing positive demographic trends and advanced manufacturing investments [12] - The company is evaluating modest capital recycling opportunities outside of target markets for reinvestment, aiming to be largely earnings neutral [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business amid a soft industrial real estate environment and uncertain macroeconomic conditions [7] - The company anticipates lower tenant retention for 2025, with year-end same store occupancy expected to be approximately 97% to 99% [10][15] Other Important Information - The company sold a property in Chillicothe, Ohio for approximately $40 million at a cash capitalization rate of 4.3%, bolstering its cash position [11] - The company has approximately $71 million in cash on the balance sheet at quarter end [20] Q&A Session Summary Question: What drove the low cap rate on the sale? - The sale execution was better than if sold into the investor marketplace, as a user wanted to own the property [23] Question: Can you provide a sense of the magnitude of dispositions in the near term? - The company would test the market with about $100 million of dispositions going forward, optimistic about creating liquidity from assets outside of target markets [25] Question: What has traffic been like for leasing up larger empty boxes? - Activity in Indianapolis has picked up significantly, while Central Florida has seen slower activity but renewed interest recently [26][29] Question: Can you provide an update on lease expirations? - The company expects to backfill the 380,000 square foot facility in Indianapolis quickly, with positive activity noted [34][35] Question: What is the outlook for tenant retention in 2026? - Strong retention is expected, with a few tenants potentially moving out, but overall positive outlook for renewals [38] Question: Are there opportunities within the land bank? - There is potential interest in build-to-suit projects, particularly in Columbus, where the market has tightened significantly [40] Question: Will the cold storage or office JV properties be considered for sale? - Those portfolios are considered static, with one potential opportunity in the office JV [46] Question: How does the company view share repurchase versus acquisitions? - The priority is to generate more EBITDA and reduce net debt to EBITDA, with share repurchase being a potential part of the strategy [50]