Financial Data and Key Metrics Changes - Comparable RevPAR increased by 2% year-over-year, while total RevPAR increased by 1.6% [4] - Hotel adjusted EBITDA margins increased by 54 basis points, with hotel adjusted EBITDA in Q1 at $61.3 million, reflecting a 2.2% growth over 2024 [10] - Adjusted FFO was $0.19 per share, an increase of 5.6% over 2024, and free cash flow per share increased by 10% to $0.63 [11] Business Line Data and Key Metrics Changes - Urban hotels saw RevPAR growth of 5%, driven by group and business transient segments, while food and beverage revenue declined by 3.3% year-over-year [4][5] - Resort portfolio experienced a decline in comparable RevPAR by 2.1%, with total revenues slightly up in January and February but down by 4.3% in March [6][8] - Group room revenues increased by 10.4% year-over-year, with urban hotels seeing a 14.4% increase [9] Market Data and Key Metrics Changes - Florida assets experienced mid-single-digit revenue declines, with RevPAR down 5.9% [8] - Outside of Florida, RevPAR increased by 1.7%, with notable increases in luxury resorts like The Heights and Vail, which saw RevPAR growth of 7% and total RevPAR growth of 9.5% [8] Company Strategy and Development Direction - The company is focused on adding groups to resorts to enhance pricing and profitability, while also managing costs effectively in the face of revenue softness [9] - The company plans to continue share repurchases and is exploring refinancing options for maturing debts [12][13] - The outlook for 2025 has been revised, with FFO per share guidance unchanged at $0.94 to $1.06, and RevPAR outlook adjusted to a range of -1% to +1% growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains unsettled, impacting group lead conversion rates, but expressed cautious optimism for the second half of 2025 [22][24] - The company anticipates that demand for drive-to resorts may increase due to economic conditions, while foreign visitation is expected to be softer than initially anticipated [20][21] - Management highlighted the importance of maintaining liquidity and flexibility in the current environment while focusing on increasing earnings per share [80] Other Important Information - The company repurchased 1.4 million shares at an average price of $7.85, with a total of approximately $16 million in repurchases year-to-date [12] - The company has three mortgage loans maturing in 2025, totaling just under $300 million, and is considering a recast of its corporate credit facility [12][13] Q&A Session Summary Question: Preliminary portfolio-wide RevPAR for April - Management indicated that preliminary April RevPAR is showing better than 2% growth [31] Question: Impact of tariffs on renovation costs - Management stated that renovation costs are complex and depend on the timing of orders and tariffs [32][34] Question: Profile of average group bookings - Management noted that group bookings range from associations to corporate events, with average hotel sizes around 200 to 250 rooms [39] Question: Markets with strong group pacing - Management highlighted Denver and Salt Lake as markets showing significant strength in group bookings [42] Question: Average booking window for groups - Management mentioned that the booking window for smaller groups is typically 4 to 6 months, while larger groups book 8 to 12 months out [57] Question: Consumer behavior shifts in booking and spending - Management observed that booking windows are getting shorter, but on-property spending remains in line with or ahead of last year [70] Question: Expectations for wages and benefits growth - Management expects wages and benefits growth to be around 3% to 3.5% for the full year [76] Question: Incremental share repurchases versus cash position - Management emphasized the importance of driving value through share repurchases while maintaining liquidity [80]

Core Insights - NNN REIT, Inc. reported strong financial results for Q1 2025, with revenues of $230.854 million, a 7.2% increase from $215.407 million in Q1 2024 [2] - The company achieved net earnings of $96.458 million, slightly up from $94.371 million in the previous year, resulting in a diluted earnings per share of $0.51 [2][4] - NNN's Core FFO and AFFO per diluted share grew by 3.6% year-over-year, reaching $0.86 and $0.87 respectively [4][31] Financial Results - Total revenues for Q1 2025 were $230.854 million, compared to $215.407 million in Q1 2024, marking a 7.2% increase [2] - Net earnings increased to $96.458 million from $94.371 million, with net earnings per share slightly decreasing from $0.52 to $0.51 [2][4] - FFO for the quarter was $158.734 million, up from $151.261 million in the prior year, with FFO per share increasing from $0.83 to $0.85 [2][31] - Core FFO reached $160.907 million, compared to $151.578 million in Q1 2024, with Core FFO per share rising from $0.83 to $0.86 [2][31] - AFFO was reported at $163.015 million, an increase from $153.259 million, with AFFO per share growing from $0.84 to $0.87 [2][31] Operating Results - As of March 31, 2025, NNN owned 3,641 properties with a total gross leasable area of approximately 37.311 million square feet [3][15] - The occupancy rate was reported at 97.7%, slightly below the 20-year average of 98.2% [4][15] - The weighted average remaining lease term was 9.9 years [3][15] - NNN initiated eviction proceedings for 64 properties leased to a mid-western restaurant operator, successfully re-leasing 31 of these properties [3][5] Property Acquisitions and Dispositions - NNN closed on $232.4 million of investments during the quarter, completing over 40% of its 2025 acquisition volume plan [4][6] - The company disposed of 10 properties, generating net sale proceeds of $15.839 million [8] Balance Sheet and Liquidity - As of March 31, 2025, NNN reported gross debt of $4.6 billion with a weighted average interest rate of 4.1% and a maturity of 11.6 years [9][34] - The company maintained $1.1 billion in total available liquidity, with only 2.5% of its debt being floating rate [4][9] - The net debt to annualized EBITDAre ratio was 5.5x, while the fixed charge coverage ratio stood at 4.2x [9][37] Dividend Information - NNN declared a quarterly dividend of $0.58 per share, representing an annualized yield of 5.4% and an AFFO payout ratio of 66% [10][31] 2025 Guidance - The company maintained its 2025 guidance, projecting net earnings per share between $1.97 and $2.02, Core FFO per share between $3.33 and $3.38, and AFFO per share between $3.39 and $3.44 [11]

Core Insights - Whitestone REIT reported a net income attributable to common shareholders of $3.7 million, or $0.07 per diluted share for Q1 2025, down from $9.3 million, or $0.18 per diluted share in Q1 2024 [5][38] - The company achieved a Same Store Net Operating Income (NOI) growth of 4.8%, with total revenues increasing to $38.0 million from $37.2 million year-over-year [2][5] - Whitestone reaffirmed its 2025 Core FFO per share guidance, projecting a 4% year-over-year growth at the midpoint, driven by strong Same Store NOI growth [2][7] Operating Results - Occupancy rates for wholly owned properties decreased to 92.9% in Q1 2025 from 93.6% in Q1 2024 [4] - The company reported GAAP leasing spreads of 20.3%, with new leases showing a growth of 22.6% and renewal leases at 19.9% [4] - Same Store Property Net Operating Income increased to $24.7 million in Q1 2025 from $23.5 million in Q1 2024 [5][50] Financial Metrics - Core Funds from Operations (FFO) for Q1 2025 were $13.1 million, compared to $12.3 million in Q1 2024, with FFO per diluted share rising to $0.25 from $0.23 [5][47] - EBITDAre for Q1 2025 was reported at $21.4 million, up from $20.5 million in Q1 2024 [5] - The company declared a quarterly cash distribution of $0.135 per common share for Q2 2025 [6] Balance Sheet and Debt Metrics - As of March 31, 2025, Whitestone had total debt of $642.2 million and undepreciated real estate assets valued at $1.3 billion [9][10] - The company has a capacity of $97.7 million available under its $250 million revolving credit facility [9] Portfolio Statistics - Whitestone owned 55 Community-Centered Properties™ with a total gross leasable area of 4.9 million square feet as of March 31, 2025 [9][10] - The properties are primarily located in high-income markets in Texas and Arizona, including Austin, Dallas-Fort Worth, Houston, Phoenix, and San Antonio [10][15]

Core Insights - Kite Realty Group reported a net income of $23.7 million, or $0.11 per diluted share, for Q1 2025, compared to $14.2 million, or $0.06 per diluted share, in Q1 2024, indicating a significant year-over-year increase in profitability [1][21][34] - The company raised its 2025 guidance for NAREIT FFO to a range of $2.04 to $2.10 per diluted share, up from the previous range of $2.02 to $2.08 per diluted share [9] - Kite Realty Group acquired Legacy West in the Dallas MSA for $785 million, with its share amounting to $408 million, through a joint venture with GIC, enhancing its portfolio in a high-growth area [3][11] Financial Performance - The company generated NAREIT FFO of $122.8 million, or $0.55 per diluted share, and Core FFO of $118.1 million, or $0.53 per diluted share for Q1 2025 [7][24] - Same Property Net Operating Income (NOI) increased by 3.1% year-over-year, reflecting strong operational performance [7][33] - The operating retail portfolio's annualized base rent per square foot was $21.49, a 3.1% increase year-over-year [7] Capital Allocation and Investments - Kite Realty executed 182 new and renewal leases representing approximately 844,000 square feet, with blended cash leasing spreads of 13.7% [7][33] - The company sold Stoney Creek Commons for $9.5 million and acquired Village Commons for $68.4 million during the quarter [3][7] - The joint venture with GIC aims to co-invest in high-quality, open-air retail and mixed-use assets, with Legacy West being a key acquisition [3][11] Dividend and Shareholder Returns - The Board of Trustees declared a second quarter 2025 dividend of $0.27 per common share, representing an 8.0% year-over-year increase [8] - The company aims to maintain leverage at or below its long-term target of 5.0x to 5.5x net debt to EBITDA, with a current net debt to Adjusted EBITDA ratio of 4.7x [6][9]