Financial Data and Key Metrics Changes - For the year 2024, the company reported an annualized base rent (ABR) of approximately $197.8 million, reflecting a 14.5% increase from $172.8 million in 2023 [20][21] - The adjusted funds from operations (AFFO) per share for Q4 2024 was $0.60, a 5.3% increase from $0.57 in Q4 2023, while the full year AFFO per share was $2.34, up 4% from $2.25 in 2023 [20][21] - The company achieved a fixed charge coverage ratio of 3.8 times as of December 31, 2024, indicating strong financial health [22] Business Line Data and Key Metrics Changes - In 2024, the company invested $289 million in high-quality convenience and automotive retail assets, acquiring 71 properties and providing development funding for new industry assets [7][8] - The investment activities were diversified, with 57% focused on non-convenience and gas property types, including express tunnel car washes and auto service centers [14][16] - The company reported a trailing twelve-month tenant rent coverage ratio of 2.6 times, indicating strong rent coverage across its portfolio [13][14] Market Data and Key Metrics Changes - The company expanded its presence in top metropolitan statistical areas (MSAs), with 60% of annualized base rent coming from the top 50 MSAs and 76% from the top 100 MSAs [13] - The investment activity in 2024 was characterized by a balanced approach, with convenience stores representing 41% of transaction volume, express tunnel car washes 33%, auto service centers 21%, and drive-thru quick service restaurants 5% [16] Company Strategy and Development Direction - The company is focused on a diversification strategy that has increased total ABR by approximately 70% since the end of 2019, with rental income from non-convenience and gas properties now accounting for 28% of total ABR [11] - The management emphasized the importance of a relationship-based sale leaseback strategy to generate continued acquisition opportunities in the convenience and automotive retail sectors [10][12] - The company remains committed to executing its growth and diversification plans while creating value for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management characterized 2024 as a challenging year for transaction markets but expressed confidence in the company's ability to source attractive investment opportunities [6][17] - The company anticipates modest cap rate compression from the 8.3% yields achieved in 2024, driven by larger portfolio transactions [17] - Management revised the AFFO guidance for 2025 to a range of $2.38 to $2.41 per share, factoring in potential rent adjustments and uncollectible rents [27][28] Other Important Information - The company disposed of 31 properties for gross proceeds of approximately $13 million in 2024, including seven properties for $7.5 million in Q4 [19] - The company has a strong capital position with $17 million in cash and over $280 million of capacity on its unsecured revolving credit facility, providing ample resources for future investments [24] Q&A Session Summary Question: Can you elaborate on the Zipps situation? - Management indicated that the seven sites in question were primarily new to industry locations and expressed confidence in re-leasing them without significant capital requirements [30][31] Question: Are there concerns regarding the financial health of other operators? - Management reassured that they maintain regular communication with tenants and are comfortable with their current car wash roster, emphasizing the focus on large, experienced operators [33][34] Question: How will the capital plan be structured moving forward? - The CFO explained that the company plans to use debt proceeds to pay down the revolver first, followed by utilizing equity for acquisitions throughout the year [38] Question: What are the assumptions regarding the potential downtime for the Zipps properties? - Management acknowledged a range of outcomes regarding downtime and rent recovery, emphasizing that they are capturing this variability in their AFFO guidance [42][44] Question: Can you provide more details on the recent portfolio transaction? - Management confirmed that the recent transaction is a direct sale leaseback and expressed intentions to pursue more such transactions in the future [46][47]

Financial Data and Key Metrics Changes - The company raised $5.5 billion in 2024, exceeding its fundraising target of $5 billion, with $300 million from its advisory business and $5.2 billion contributing to its asset base [8][20] - Full year 2024 fee related earnings (FRE) reached $170 million, up 15% from 2023, with FRE per share at $1.12, up 13% [10] - Fourth quarter FRE was $55 million, up 35% from the prior quarter and 18% year-over-year, with FRE per share at $0.36, also up 35% from the third quarter [10] - The company generated $189 million of distributable earnings for the full year, and $89 million in the fourth quarter, with per share values of $1.24 and $0.58 respectively [12][44] Business Line Data and Key Metrics Changes - Performance related earnings (PRE) for the year exceeded $41 million, primarily driven by the sale of the Aguas Pacifico project [11] - The net accrued performance fee balance was $319 million, down 30% due to significant realizations in Infrastructure III and lower marks on publicly traded holdings [13] - The earning assets under management (AUM) rose 38% year-over-year to $33 billion, although it declined 3% sequentially due to dollar appreciation [15][33] Market Data and Key Metrics Changes - Net organic inflows in fee earning AUM in the fourth quarter were $380 million, with positive inflows across all investment verticals except public equities [16] - Approximately 70% of fundraising in 2024 came from local investors investing in local products, a significant increase from virtually nil in 2020 [22] - The company has seen increased demand for credit strategies in Brazil due to high interest rates, while equity-oriented strategies have softened [22][79] Company Strategy and Development Direction - The company aims to achieve a fundraising target of $6 billion in 2025, actively fundraising across various funds and strategies [21] - The strategy focuses on diversifying its business and enhancing growth profiles, with a significant portion of fundraising coming from local investors [20][22] - The company is developing local investment strategies tailored to specific countries in Latin America, including private equity and infrastructure funds [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2025 FRE target of $200 million to $225 million, with an FRE margin between 58% to 60% [42] - The company is well-positioned to thrive amid macroeconomic uncertainties, with Latin America remaining an attractive destination for long-term capital commitments [24][23] - Management highlighted the positive momentum from pension fund reforms in Chile, Colombia, and Mexico, which are expected to increase contributions to pension funds significantly [94][95] Other Important Information - The effective tax rate for 2024 was 6.5%, with expectations to trend towards 10% by 2027 [44] - The company finished the year with approximately $190 million of net debt, with plans to reduce this throughout 2025 [46][82] - A fourth quarter dividend of $0.15 per share was announced, with intentions to repurchase shares in 2025 [47] Q&A Session Summary Question: Clarification on PRE and future distributions - Management confirmed that the sale of Aguas Pacifico was completed, generating approximately $60 million in performance fees, all accounted for in the fourth quarter [56][58] Question: Redemption trends in public equities and credit strategies - Management noted that redemptions in credit strategies were minimal and expected to remain small in 2025, with positive net new money flows anticipated [66][68] Question: Breakdown of the $6 billion fundraising target for 2025 - Management indicated that while they have a well-organized plan, they prefer to maintain flexibility regarding the specific breakdown of the fundraising target [76][78] Question: Impact of Chile's pension reform on inflows - Management highlighted that pension fund reforms across Latin America are expected to significantly increase contributions, benefiting private equity and infrastructure funds [94][95] Question: Expectations on real estate inflows in Brazil - Management acknowledged that high interest rates may negatively impact brick-and-mortar strategies, while security strategies are expected to perform well [110][111]