Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of approximately $2.7 million or $0.03 per share for Q1 2025 [5] - A GAAP net loss of about $21.4 million or $0.21 per share was recorded for the same period [6] Business Line Data and Key Metrics Changes - The directly owned portfolio was approximately 69.2% leased at the end of Q1 2025, down from 70.3% at the end of Q4 2024 [9] - Economic occupancy for the directly owned portfolio was approximately 67.7% at the end of Q1 2025, compared to 68.6% at the end of 2024 [9] - Approximately 60,000 square feet of total leasing was finalized during Q1 2025, consisting entirely of renewals and expansions [10] Market Data and Key Metrics Changes - The company has tracked approximately 800,000 square feet of prospective new tenants, with about 300,000 square feet of prospects identifying FSP assets on their shortlist [11] - Scheduled lease expirations for the remainder of 2025 total approximately 246,000 square feet, representing about 5.1% of FSP's directly owned portfolio [12] Company Strategy and Development Direction - The company remains focused on advancing leasing of space in its existing property portfolio and pursuing property dispositions to repay debt [6][7] - The company is actively considering operational adjustments and strategic transactions to unlock the full value of its property portfolio [8] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainties, including tariff headlines, that could impact corporate leasing decisions and investment in office properties [7] - The company remains confident in its direction but is open to various strategies to maximize shareholder value [9] Other Important Information - Since initiating its current disposition strategy in late 2020, the company has completed approximately $1.1 billion in property sales, leading to a nearly 75% reduction in corporate indebtedness [13] - National office transaction volumes rose by 22% in 2024 and accelerated in Q1 2025, finishing 31% higher year over year [15] Q&A Session Summary Question: Insight on why leasing was solely executed for renewals during Q1 - Management indicated that new leases had stalled but they are pursuing renewal transactions and expect positive news in Q2 and Q3 [17][18] Question: Which geographies currently depict greater strength in the portfolio? - Management highlighted strong demand in Texas, particularly in Houston, with Dallas showing some improvement, while Denver and Minneapolis are better than previous years but not as robust as Texas suburbs [19]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported investment income of $6 million or $0.89 per share, an increase of $600,000 or $0.08 per share from the prior quarter [13] - Total expenses for the quarter were $2.6 million or $0.38 per share, an increase of $600,000 or $0.08 per share, primarily due to interest expense on term preferred shares [13] - The net investment income was $3.4 million or $0.50 per share, while the net unrealized loss on investments was $9.6 million or $1.41 per share, leading to a net loss of $6.1 million or $0.90 per share [13][14] - As of March 31, 2025, total assets were $173.7 million and total net assets were $124.6 million, resulting in a net asset value per share of $18.33 [14] Business Line Data and Key Metrics Changes - The portfolio consists of 50 unique CLO positions managed by 33 distinct CLO managers, with approximately 1,700 unique loans across over 30 industry sectors [6] - The weighted average GAAP yield on the portfolio was 15.57% at March 31, an increase of 68 basis points from the prior quarter [7] - The company invested $30.8 million in primary CLOs during Q1 2025, and approximately 9% of the portfolio was refinanced or reset [9] Market Data and Key Metrics Changes - In Q1 2025, $40.56 billion in new US CLOs were issued, and $96 billion in CLOs were refinanced [9] - The LSTA indexes trailing twelve-month default rate ended the first quarter at 82 basis points, 11 basis points lower than at the end of 2024 [10] - The company noted that CLO portfolios experienced credit stresses at roughly half the default rate of the broader market [10] Company Strategy and Development Direction - The company aims to maximize total return while generating high current income through investments primarily in equity and junior debt tranches of CLOs [5] - The investment strategy focuses on maintaining a sustainable distribution policy and protecting net asset value (NAV) [5] - The company plans to utilize leverage opportunistically when attractive investment opportunities arise [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the CLO market's resilience despite tariff uncertainties and believes CLOs provide an efficient way to access senior secured corporate loans [16] - The company anticipates a slowdown in CLO primary issuance and refinancing activity but expects CLOs to capitalize on any loan market volatility [9][10] - Management noted that early signs show CLO managers have proactively reduced exposure to tariff-sensitive issuers [11] Other Important Information - The company distributed dividends of $0.22 per common share in January, February, and March, with plans to continue this distribution in April [14] - The annualized dividend yield based on the share price at the end of March was 13.9% [15] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the Q&A session concluded without detailed interactions [17][18]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported investment income of $6 million or $0.89 per share, an increase of $600,000 or $0.08 per share from the prior quarter [14] - Total expenses for the quarter were $2.6 million or $0.38 per share, an increase of $600,000 or $0.08 per share, primarily due to interest expense on term preferred shares [14] - The net investment income was $3.4 million or $0.50 per share, while the net unrealized loss on investments was $9.6 million or $1.41 per share, leading to a net loss of $6.1 million or $0.90 per share [14][15] - As of March 31, 2025, total assets were $173.7 million and total net assets were $124.6 million, resulting in a net asset value per share of $18.33 [15] Business Line Data and Key Metrics Changes - The company’s portfolio consists of 50 unique CLO positions managed by 33 distinct CLO managers, with approximately 1,700 unique loans across over 30 industry sectors [6] - The weighted average GAAP yield on the portfolio was 15.57% at March 31, an increase of 68 basis points from the prior quarter [8] - The company invested $30.8 million in primary CLOs during Q1 2025, with approximately 9% of the portfolio refinanced or reset [10] Market Data and Key Metrics Changes - In Q1 2025, $40.5 billion in new US CLOs were issued, and $96 billion in CLOs were refinanced [10] - The LSTA indexes trailing twelve-month default rate ended the first quarter at 82 basis points, 11 basis points lower than at the end of 2024 [11] - The company noted that CLO portfolios experienced credit stresses at roughly half the level of the overall market [11] Company Strategy and Development Direction - The company aims to maximize total return while generating high current income through investments primarily in equity and junior debt tranches of CLOs [5] - The strategy includes maintaining a sustainable distribution policy and protecting net asset value (NAV) while managing risks through diversification [5] - The company is positioned to capitalize on market volatility due to extended reinvestment periods of CLOs [10][12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the CLO market's resilience despite tariff uncertainties, highlighting strong corporate fundamentals and manageable near-term maturities [11][13] - The company anticipates a slowdown in CLO primary issuance and refinancing activity but expects CLOs to absorb potential loan fund outflows [10][11] - Management believes that CLOs provide an efficient way to access senior secured corporate loans and can offer attractive risk-return profiles across various credit cycles [18] Other Important Information - The company distributed dividends of $0.22 per common share in January, February, and March, with plans for the same distribution in April [16] - The annualized dividend yield based on the share price at the end of March was 13.9% [17] Q&A Session Summary - The Q&A session did not contain specific questions or answers as the call concluded without further inquiries from participants [19][20]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 4.1% to $362.6 million, driven by volume increases and pricing [5][19] - Gross margin declined to 25.9% from 27.2% year-over-year, reflecting input cost inflation not fully offset by price increases [6][19] - Operating income decreased to $6.2 million from $9.7 million, with adjusted operating income at $8.2 million compared to $13.5 million last year [22][24] - Net earnings fell to $5.1 million from $7.3 million, with earnings per diluted share decreasing to $0.26 from $0.37 [23][24] Business Line Data and Key Metrics Changes - Foodservice revenue increased by 4.5%, with soft pretzel sales up 4.8% due to convenience store recovery [11] - Frozen novelties saw a significant increase of 9.8%, driven by Zippin' Dots growth [11] - Bakery sales grew by 6.6%, primarily due to price increases [12] - Retail sales increased by 2.2%, with frozen novelty sales rising significantly, while soft pretzel sales declined by 7.4% due to an ordering system issue [12] Market Data and Key Metrics Changes - Frozen beverage sales increased by 4%, with a notable 10% volume increase attributed to a 45% growth in theater channels [13] - The North American box office is projected to grow over 10% year-over-year, indicating a strong recovery in the entertainment sector [13][14] - Consumer spending on leisure and entertainment is outpacing traditional retail channels, providing a favorable environment for the company [14] Company Strategy and Development Direction - The company is focused on driving volume growth and mix improvement across its portfolio, with a disciplined approach to capital deployment [10][17] - A new $50 million stock repurchase authorization reflects confidence in long-term value and financial flexibility [10] - The rollout of Dippin' Dots to theaters is progressing well, with plans for further growth in retail channels [16][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q1 but expressed confidence in overcoming them, citing strong underlying business fundamentals [9][17] - The company is optimistic about the recovery trajectory in theater traffic and overall consumer spending trends [14][25] - Management expects gross margins to improve in the second half of the year, targeting a return to low 30% levels [66][67] Other Important Information - The company experienced significant inflation in chocolates, eggs, and proteins, which impacted profitability [7][20] - The effective tax rate for the quarter was 27.2%, up from 26.6% in the prior year [23] Q&A Session Summary Question: Can you provide a gross margin bridge for the decline year over year? - Management indicated that about 80 basis points of the decline were due to pricing gaps relative to input costs, with the remainder attributed to mix changes in the bakery business [30][31] Question: How does the pricing lag occur? - The delay in implementing price increases was primarily due to the time taken to push these through to customers, not a lack of visibility [46][47] Question: What is the impact of the peso on profitability? - The peso's depreciation had a nearly $1 million impact on profitability for the frozen beverage segment [54] Question: What is the outlook for gross margins in the second half of the year? - Management expects gross margins to improve, aiming for low 30% levels, with seasonal factors contributing positively [66][67] Question: Can you elaborate on the Dippin' Dots rollout? - The Dippin' Dots product has been well received, launching with a major nationwide retailer, and is expected to see significant growth [70] Question: Will stock repurchases occur alongside potential acquisitions? - The company plans to be opportunistic with stock repurchases while also actively seeking attractive acquisition opportunities [75]