Service Properties Trust (SVC) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Company Participants Kevin Barry - Senior Director - IRChristopher Bilotto - President, CEO & Managing TrusteeJesse Abair - Vice PresidentBrian Donley - CFO & TreasurerJonathan Jenkins - Equity Research Associate DirectorMeredith Jensen - US Consumer Equity ResearchJack Armstrong - Equity Research Associate Conference Call Participants John Massocca - Senior Research Analyst Operator Good morning, and welcome to the Service Proper ...

Safehold (SAFE) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Company Participants Pearse Hoffmann - Senior Vice President of Capital Markets & Investor RelationsJay Sugarman - CEO & ChairmanBrett Asnas - CFORonald Kamdem - Managing Director & Head of US REITs and CRE ResearchTim Doherty - Chief Investment OfficerCaitlin Burrows - Vice PresidentMitch Germain - MD - Real Estate ResearchRichard Anderson - Managing Director - Equity Research Conference Call Participants Haendel Emmanuel St. Juste - Managing D ...

Financial Data and Key Metrics Changes - For Q1 2025, GAAP revenue was $97.7 million, net income was $29.4 million, and earnings per share (EPS) was $0.41, reflecting a decline in GAAP earnings year over year primarily due to a nonrecurring $1.9 million loss on a preferred equity investment [11][12] - Excluding the one-time loss, Q1 EPS increased slightly year over year, driven by higher net earnings on investment fundings and percentage rent [12] - The portfolio currently earns a 3.7% cash yield and a 5.4% annualized yield, with an economic yield of 5.8% [12][13] Business Line Data and Key Metrics Changes - The total portfolio at quarter end was $6.8 billion, with an estimated GLTV of 52% and rent coverage of 3.5 times [9][15] - The company funded a total of $20 million in Q1, consisting of $16 million in ground lease fundings and $4 million related to leasehold loans [10] - The ground lease portfolio has grown 20 times by both book value and estimated unrealized capital appreciation since the IPO, with 85 multifamily ground leases now comprising 58% of the portfolio [10] Market Data and Key Metrics Changes - The company has nonbinding LOIs totaling approximately $386 million for potential commitments across 11 ground leases and four loans, with six of the ground leases focused on affordable housing [7][9] - The portfolio GLTV increased from 49% to 52% quarter over quarter, reflecting the largest office revaluation quarter [14][15] Company Strategy and Development Direction - The company aims to reach a scale that unlocks the full value of the business for shareholders while expanding the customer base that can benefit from long-term lower-cost capital [4][5] - The management is focused on capital recycling and evaluating opportunities to address the public versus private valuation disconnect [35][21] Management's Comments on Operating Environment and Future Outlook - The management noted that while the market remains volatile, there are signs of stabilization, and they are optimistic about the pipeline of deals [6][19] - The management expressed confidence in the ability to close the majority of the deals in the pipeline within the year, despite the challenges posed by market conditions [31][61] Other Important Information - The company ended the quarter with approximately $1.3 billion of liquidity, supported by potential available capacity in joint ventures [9][17] - The company has a weighted average debt maturity of approximately 19 years and no corporate maturities due until 2027 [17] Q&A Session Summary Question: Can you provide more details on the sponsors and markets related to the nonbinding LOIs? - The pipeline includes a robust mix of multifamily deals, with diverse locations across the West Coast, Southeast, Northeast, and Midwest [25][26] Question: What are the benefits of ground leases versus leasehold loans? - Leasehold loans provide more certainty in volatile markets and can help kickstart transactions that are stalled [27] Question: Can you quantify the closed deals from the LOIs? - The majority of the deals in the pipeline are expected to close this year, with timing varying based on construction versus recap deals [31] Question: What is the company's strategy regarding joint ventures? - The company is exploring opportunities for joint ventures to unlock value from the existing portfolio while focusing on larger scale deals with current partners [65][66] Question: How does the company view the current market volatility? - The management acknowledged ongoing volatility but noted that it has tightened, allowing sponsors to make clearer long-term capital decisions [44][61] Question: What is the outlook for S&P ratings? - The company is in dialogue with S&P and aims to achieve a third single A rating through prudent capital management and continued deal origination [82]

Sunstone Hotel Investors (SHO) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Company Participants Aaron Reyes - CFO & Executive VPBryan Giglia - CEO & DirectorRobert Springer - President & Chief Investment OfficerDavid Katz - Managing DirectorDany Asad - DirectorDuane Pfennigwerth - Senior Managing DirectorMichael Bellisario - Managing DirectorSmedes Rose - Director Conference Call Participants Chris Woronka - Analyst Operator Good morning, ladies and gentlemen, and thank you for standing by. Welcome to th ...

Sunstone Hotel Investors (SHO) Q1 2025 Earnings Call May 06, 2025 10:30 AM ET Speaker0 Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Sunstone Hotel Investors First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. I would like to remind everyone that this conference is being recorded today, 05/06/2025, at 10:30 a. M. Eastern T ...

Camden Long Meadow Farms – Richmond, TX Investor Presentation March 2025 Why Camden? We're Positioned for Excellence Balance Sheet Strength and Liquidity Proven Record of Capital Recycling and Value Creation 2 The Right Product in the Right Markets Consistent Earnings and Dividend Growth Innovation, Technology, and Talent = Operational Excellence Camden Main and Jamboree – Irvine, CA Table of Contents | Company Overview | 4-9 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -- ...

Financial Data and Key Metrics Changes - Same property NOI grew by 6.1% in Q1 2025, reaching $47.3 million, driven by strong demand and effective lease management [6][13] - NAREIT FFO for the quarter totaled $37.2 million or $0.48 per diluted share, representing a 6.7% increase year-over-year [13] - Core FFO rose 4.5% year-over-year to $0.46 per share, supported by internal growth and acquisitions [14] - The company declared an annualized dividend payment of $0.95 per share, a 5% increase over the previous year [15] Business Line Data and Key Metrics Changes - The portfolio remains highly leased, with small shop lease occupancy achieving a record high of 93.4%, up 130 basis points from last year [17] - The total portfolio ABR ended Q1 at $20.21 per square foot, reflecting a 3.1% increase compared to Q1 2024 [18] - The company executed 256,000 square feet of new leases and renewals during the quarter, achieving a retention rate of 90% [17] Market Data and Key Metrics Changes - 90.7% of net operating income is generated from the Sunbelt region, which continues to be a top-performing retail market [6] - The company is actively pursuing acquisitions in high-growth markets such as Asheville, Charlotte, Charleston, San Antonio, and Orlando [11] Company Strategy and Development Direction - The company is focused on necessity-based open retail centers in Sunbelt markets, which have shown resilience despite economic challenges [5][6] - Plans to exit California are underway, with expectations to significantly reduce investments in the state in 2025 [9][10] - The capital allocation plan includes evaluating asset sales and capital recycling to enhance the portfolio with high-quality necessity-based tenants [11][12] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the economic environment, citing strong tenant health and minimal exposure to recent retail bankruptcies [7][19] - The company anticipates some impact on same property NOI later in the year due to announced bankruptcies, but expects to maintain guidance for same property NOI growth of 3.5% to 4.5% [15][19] Other Important Information - The company maintains a low leverage ratio of 23.4%, allowing for opportunistic growth without relying heavily on capital markets [14][12] - The current pipeline for acquisitions stands at $1.5 to $2 billion, focusing on grocery-anchored centers [11] Q&A Session Summary Question: How does the company expect to achieve the 3.5% to 4.5% same store NOI growth for the year after a strong Q1? - Management indicated that while Q1 was strong, there are factors such as anticipated bad debt and unique Q1 circumstances that may lead to deceleration in the following quarters [21][22][25] Question: What is the reception and pricing expectation for the California assets currently on the market? - Management reported strong interest in the California assets, with several in the due diligence phase, and expressed confidence in potential pricing outcomes [33][34] Question: Has there been any change in leasing conversations post-April 2 amid macro uncertainty? - Management noted that leasing demand remains healthy and conversations with tenants have not changed significantly [35][36] Question: What is the company's strategy regarding capital recycling and market expansion? - Management confirmed that capital recycling involves selling lower cap rate California assets and reinvesting in higher-yielding opportunities, with a focus on maintaining quality in smaller markets [41][42][48]

Financial Data and Key Metrics Changes - The company reported FFO per diluted share of $0.52 for Q1 2025, a decrease of approximately $0.03 compared to Q4 2024, primarily due to the impact of the Del Monte Center disposition [16] - Same store cash NOI increased by 3.1% year over year in Q1 2025, with all sectors reporting positive growth except for the mixed-use sector [16][17] - The company ended Q1 with liquidity of approximately $544 million, including $144 million in cash and cash equivalents [20] Business Line Data and Key Metrics Changes - The office portfolio's same store NOI increased by 5.4% in Q1 2025, driven by the expiration of a rent abatement [17] - The retail portfolio's same store NOI also increased by 5.4%, supported by new leases and contractual rent escalations [17] - The multifamily portfolio's NOI was flat year over year, primarily due to lower rental income in Portland, while San Diego properties showed growth [17][12] - The mixed-use portfolio's NOI declined by approximately 11.6%, mainly due to lower occupancy at the Embassy Suites Waikiki [18] Market Data and Key Metrics Changes - The office portfolio ended Q1 at 85.5% leased, with an increase in average base rents and an 8% increase in cash basis spreads [8] - The retail portfolio ended the quarter 97% leased, with strong collections and an all-time high average base rent [10] - The San Diego multifamily properties ended the quarter approximately 95% leased, with a blended rent increase of 2% [12] Company Strategy and Development Direction - The company focuses on thoughtful capital allocation, operational discipline, and enhancing asset quality to ensure long-term stability [5][6] - The strategy includes pursuing organic growth through leasing and value-add improvements while maintaining strong liquidity [6][14] - Recent capital recycling includes the sale of Del Monte Center and the acquisition of Genesee Parks Apartments, aligning with the strategy to concentrate on core markets [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complex operating environment, including inflation, interest rate volatility, and geopolitical uncertainty, but sees opportunities for growth [4][5] - The company remains cautiously optimistic about the office sector's recovery, particularly in high barrier coastal markets [9] - Management reaffirms full-year 2025 guidance of $1.87 to $2.10 per FFO share, reflecting confidence in the portfolio's strength [21][22] Other Important Information - The Board approved a quarterly dividend of $0.34 per share for Q2, reflecting confidence in the company's outlook [14][15] - The company is closely monitoring economic conditions and tenant performance, particularly in the multifamily and retail segments [23] Q&A Session Summary Question: Update on Bellevue assets and occupancy outlook - Management highlighted recent leasing activity, including a 29,000 square foot lease at Timber Ridge, bringing it to 97% leased, and ongoing negotiations for additional leases [27][28] Question: Impact of Proposition 1A on tenant interest in Downtown Seattle - Management noted increased inbound tenant inquiries in Bellevue, partly due to the proposition, indicating a positive trend [30] Question: Plans for redeploying proceeds from Del Monte Center sale - Management confirmed they are actively looking for additional acquisitions but are also comfortable holding cash for liquidity during economic uncertainty [32][33] Question: Update on leasing pipeline and market conditions in La Jolla - Management reported a tight submarket with a direct vacancy of 7.4%, and ongoing efforts to enhance leasing activity through new amenities and spec suites [34][38]

Financial Data and Key Metrics Changes - The company reported FFO per diluted share of $0.52 for Q1 2025, a decrease of approximately $0.03 compared to Q4 2024, primarily due to the impact of the Del Monte Center disposition [18][6] - Same store cash NOI increased by 3.1% year over year across all sectors, with positive growth reported in all sectors except mixed-use [18][19] - The company ended Q1 with liquidity of approximately $544 million, including $144 million in cash and $400 million available on a revolving line of credit [22] Business Line Data and Key Metrics Changes - The office portfolio's same store NOI increased by 5.4% in Q1 2025, driven by the expiration of a rent abatement [18][19] - The retail portfolio's same store NOI also increased by 5.4%, supported by new leases and contractual rent escalations [19] - The multifamily portfolio's NOI was flat year over year, primarily due to lower rental income in Portland, while San Diego properties showed growth [19][12] - The mixed-use portfolio's NOI declined by approximately 11.6%, mainly due to lower occupancy at the Embassy Suites Waikiki [19][20] Market Data and Key Metrics Changes - The office portfolio ended Q1 at 85.5% leased, with an increase in leasing activity and average base rents reaching an all-time high [9][11] - The retail portfolio ended the quarter 97% leased, with strong collections and an all-time high average base rent [11][12] - The multifamily properties in San Diego ended the quarter approximately 95% leased, with a blended rent increase of 2% [12][13] Company Strategy and Development Direction - The company is focused on thoughtful capital allocation, operational discipline, and enhancing asset quality to ensure long-term stability [5][6] - Recent strategic initiatives include the sale of Del Monte Center and the acquisition of Genesee Parks Apartments, aimed at concentrating capital in core markets [14][15] - The company aims to maintain a balance sheet that allows for flexibility in both offensive and defensive strategies [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing shift in office dynamics, despite economic uncertainty [7][10] - The company remains focused on reducing leverage and maintaining strong liquidity, which is deemed essential in the current environment [6][22] - Management acknowledged potential challenges in leasing activity due to economic uncertainty but remains committed to monitoring market conditions closely [14][26] Other Important Information - The Board approved a quarterly dividend of $0.34 per share for Q2, reflecting confidence in the company's outlook [16][17] - The company aims to achieve and maintain a long-term net debt to EBITDA ratio of 5.5 times or below [22] Q&A Session Summary Question: Update on Bellevue assets and occupancy - Management noted significant leasing momentum in Bellevue, with recent leases bringing occupancy to 97% at Timber Ridge and ongoing interest in other properties [30][32] Question: Impact of Proposition 1A on tenant interest - Management observed increased inbound tenant inquiries in Bellevue, indicating a positive response to the proposition [34] Question: Plans for redeploying proceeds from Del Monte Center sale - The company is actively looking for additional acquisitions but is also comfortable holding cash on the balance sheet amid economic uncertainty [36][37] Question: Update on leasing pipeline at La Jolla - The UTC submarket remains tight, with ongoing proposals and construction of amenities expected to boost leasing activity [38][41]

Urban Edge Properties (UE) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Greetings, and welcome to the Urban Edge Properties First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Olson. Please go ahead. Speaker1 Good morning, and welcome to Urban Edge Properties First Quarter twe ...