Financial Data and Key Metrics Changes - The company reported a net income of $12 million and earnings per share of $0.50 for the quarter [5] - Net interest income grew by 7% to $51.4 million compared to the previous year [13] - The net interest margin on gross loans was 7.94%, up 10 basis points from the previous quarter [13] - The net book value per share increased to $16.36 from $16 in the prior quarter and $14.93 a year ago [17] Business Line Data and Key Metrics Changes - The consumer lending business originated $136 million in loans, maintaining a loan book of $2.4 billion [5] - Recreation loans originated totaled $86.8 million at an average rate of 16.06%, while home improvement loans were $48.8 million at an average rate of 11.5% [14] - The commercial lending division originated $9.7 million in new loans and exited one loan with a significant return [6][7] Market Data and Key Metrics Changes - The company collected $2.6 million in cash from its taxi medallion business, consistent with the previous quarter [9] - The strategic partnership program achieved over $125 million in originations for the second consecutive quarter [10] Company Strategy and Development Direction - The company is focused on a methodical approach to growth, ensuring sustainable practices in its lending operations [11] - There is an ongoing effort to expand the strategic partnership program, with expectations to add new partners over time [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash collections from the taxi medallion business and identified recovery opportunities in charge-off loans [9] - The company anticipates continued gains from its equity investments, although the timing of exits remains unpredictable [8][27] Other Important Information - The company repurchased approximately 60,000 shares and has $15 million remaining under its share repurchase plan [11] - A 9% increase in the quarterly dividend to $0.12 per share was approved by the Board, marking the third increase since reinstating the dividend [12] Q&A Session Summary Question: Were there any nonrecurring expense items aside from those highlighted? - Management noted elevated professional fees, including $300,000 in technology costs and $600,000 related to the annual meeting [20] Question: Any update on the SEC matter? - Management believes the SEC matter has been resolved, pending board approval and judicial sign-off [22] Question: What flexibility exists in building reserves? - Management confirmed flexibility in determining allowances, using qualitative factors to increase consumer provisions [23] Question: Any anticipated capital gains from Medallion Capital? - Management expects one or two more capital gains this year, though timing is uncertain [27] Question: Outlook on normalized earnings? - Management discussed adjustments for nonrecurring items and expected normalized earnings to be around $0.35 per share [36] Question: Timing for loan sales? - Management anticipates closing a loan sale in Q2, with another sale expected in Q3 or Q4 [38] Question: Durability of strategic partnership loan volume? - Management expressed confidence in maintaining loan volume above $100 million per quarter, with potential for growth [43] Question: Outlook on margins and loan growth? - Management expects margins to remain stable and projects loan growth of 5% to 7% for the year [48]

Financial Data and Key Metrics Changes - Net sales decreased by 6% to $3.7 billion, driven by lower organic sales, one fewer selling day, and commodity deflation, partially offset by growth from acquisitions [19] - Gross profit was $1.1 billion, a decrease of 14% compared to the prior year, with gross margins at 30.5%, down 290 basis points [20][21] - Adjusted EBITDA was $369 million, down 32%, with an adjusted EBITDA margin of 10.1%, down 380 basis points from the prior year [22] - Adjusted EPS was $1.51, a decrease of 43% compared to the prior year [23] Business Line Data and Key Metrics Changes - Multifamily sales decreased by 33%, while single-family sales declined by 6% due to lower starts activity and weather impacts [19] - Repair and remodel increased by 4%, driven by strength in the Mid Atlantic and Southeast regions [19] - Productivity savings of $17 million were achieved in Q1, primarily through targeted supply chain initiatives and more efficient manufacturing [8] Market Data and Key Metrics Changes - Single-family starts remain soft as builders manage construction pace amid affordability challenges and inventory buildup [8] - The multifamily segment continues to face headwinds compared to 2024, with actions taken to align capacity and manage expenses [9] - The company anticipates a down mid-single-digit single-family market and continued weakness in multifamily for the full year 2025 [26] Company Strategy and Development Direction - The company remains focused on organic growth, operational excellence, and disciplined capital allocation [5] - Significant investments in value-added products, digital tools, and internal systems are aimed at solidifying the company's industry position [6] - The company completed two acquisitions in Q1, with a focus on expanding value-added product offerings and leadership in desirable geographies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges due to a resilient business model and a focus on execution [4] - The company expects to outperform as the market recovers, despite current macro and industry dynamics being unsettled [5] - For 2025, the company forecasts net sales between $16.05 billion and $17.05 billion, with adjusted EBITDA expected to be between $1.7 billion and $2.1 billion [26] Other Important Information - The company invested $23 million in value-added facilities in Q1 to prepare for future demand [7] - The company has a disciplined capital allocation strategy, deploying over $900 million towards investments, acquisitions, and share repurchases [12][25] - The company expects free cash flow of $800 million to $1.2 billion for 2025, with a focus on maintaining a leverage ratio of approximately 1x to 2x [27][25] Q&A Session Summary Question: Market share and growth in a declining market - Management stated that they are always striving to increase market share, adapting to competitive dynamics and affordability challenges [34][36] Question: Gross margin strategy - Management indicated that while margins are expected to drift lower, they will balance share versus margin based on competitive pressures [39][41] Question: Capital allocation and buybacks - Management confirmed that capital allocation priorities remain focused on protecting the balance sheet while evaluating M&A and stock buybacks [52][53] Question: Commodity prices and inflation expectations - Management discussed the impact of higher lumber prices and the expectation to pass through tariff costs to customers [58][110] Question: Digital initiatives and sales targets - Management expressed confidence in reaching the $200 million target for digital sales in 2025, citing positive customer feedback and adoption rates [66] Question: Competition and sustainability - Management noted that some competitors are struggling with sustainability, emphasizing the importance of providing stable partnerships and quality products [70][75] Question: Productivity savings and future actions - Management highlighted that productivity improvements are a continuous effort, with expectations for savings to roll in throughout the year [78][82]

Financial Data and Key Metrics Changes - Net sales decreased by 6% to $3.7 billion, driven by lower organic sales, one fewer selling day, and commodity deflation, partially offset by growth from acquisitions [19] - Gross profit was $1.1 billion, a decrease of 14% compared to the prior year, with gross margins at 30.5%, down 290 basis points [20][21] - Adjusted EBITDA was $369 million, down 32%, with an adjusted EBITDA margin of 10.1%, down 380 basis points from the prior year [22] - Adjusted EPS was $1.51, a decrease of 43% compared to the prior year [23] - Operating cash flow was $132 million, a decrease of $185 million mainly due to lower net income [24] Business Line Data and Key Metrics Changes - Multifamily sales decreased by 33%, while single-family sales declined by 6% due to lower starts activity and weather impacts [19] - Repair and remodel increased by 4%, driven by strength in the Mid Atlantic and Southeast regions [19] - Productivity savings of $17 million were achieved in Q1, with a target of $70 million to $90 million for the full year [9][78] Market Data and Key Metrics Changes - Single-family starts remain soft as builders manage construction pace amid affordability challenges and inventory buildup [9] - The multifamily segment continues to be a headwind compared to 2024, with actions taken to align capacity and manage expenses [10] Company Strategy and Development Direction - The company remains focused on organic growth, operational excellence, and disciplined capital allocation [6][11] - Significant investments in value-added products, digital tools, and internal systems are aimed at solidifying the company's industry position [7][14] - The company completed two acquisitions in Q1 with prior year sales of approximately $565 million, indicating a focus on M&A for growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and emphasized the importance of being a trusted partner to customers [5][6] - The company anticipates a down mid-single-digit single-family market and continued weakness in multifamily for 2025, guiding net sales between $16.05 billion and $17.05 billion [27] - Management highlighted the importance of maintaining financial flexibility while investing strategically for future growth [32] Other Important Information - The company expects free cash flow of $800 million to $1.2 billion for 2025, with a projected tariff cost impact of $175 million to $250 million annually [28][29] - Capital expenditures were $87 million in Q1, with over $900 million deployed towards investments, acquisitions, and share repurchases [26] Q&A Session Summary Question: Market share and growth in a declining market - Management stated that they are always striving to increase market share, adapting to competitive dynamics and affordability challenges [36][38] Question: Gross margin strategy - Management indicated that while margins are expected to drift lower, they are pleased with current performance and will balance share versus margin [40][41][43] Question: Capital allocation and buybacks - Management confirmed that capital allocation priorities remain focused on protecting the balance sheet while evaluating M&A and stock buybacks [54][56] Question: Commodity prices and inflation impact - Management discussed the impact of higher lumber prices and the expectation to pass through tariff costs to customers [60][108] Question: Digital initiatives and sales targets - Management expressed confidence in reaching the $200 million target for digital sales in 2025, citing positive customer feedback and adoption rates [64][66] Question: Competition and sustainability - Management noted that some competitors are struggling with sustainability due to low margins and emphasized the importance of providing value to customers [71][75] Question: Productivity savings and future actions - Management highlighted that productivity is a core focus and savings will continue to be realized throughout the year, despite some impact from ERP rollout [78][81]

Financial Data and Key Metrics Changes - The company reported adjusted operating income of $169 million, up 2% year over year [6] - Adjusted earnings per share was $10, up 6% year over year [6] - GAAP net income was $166 million or $1.08 per diluted share, compared to $1.00 per diluted share in the same period last year [18] - Adjusted operating return on equity was 13.4% [19] - Insurance in force was $258 billion, up 2% year over year [6] Business Line Data and Key Metrics Changes - New insurance written was $10 billion, down 26% sequentially and down 7% year over year [19] - Primary insurance in force was $268 billion, relatively flat from $269 billion in the fourth quarter of 2024 and up 2% year over year [20] - Total net premiums earned were $245 million, down $1 million sequentially and up $4 million or 2% year over year [20] - The base premium rate was 40.1 basis points, relatively flat sequentially [21] Market Data and Key Metrics Changes - The housing market conditions remained tight with elevated home prices despite high borrowing costs [6] - Approximately 8% of the insurance in force had mortgage rates at least 50 basis points above March's average mortgage rate of 6.7% [9] - Persistency was 84%, up two points sequentially and down one point year over year [20] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, investing in business growth, and returning capital to shareholders [11][14] - The introduction of the Rate three sixty pricing engine aims to enhance competitive pricing and risk selection [12][13] - The company continues to participate in GSE CRT transactions to diversify its platform [12] Management's Comments on Operating Environment and Future Outlook - The management highlighted a stable consumer and labor market, with potential improvement if mortgage rates decline [7] - The company is prepared to navigate a range of scenarios amid elevated geopolitical uncertainty [8] - Management expressed confidence in the long-term drivers of the housing market, particularly pent-up demand from first-time homebuyers [8] Other Important Information - The company returned over $94 million to shareholders through share buybacks and dividends [14] - A new $350 million share repurchase program was authorized, along with a 14% increase in the dividend from 18.5 cents to 21 cents per share [14][29] - The PMIERs sufficiency ratio stood at 165, indicating a strong capital foundation [9] Q&A Session Summary Question: How is the company reacting to market uncertainty in underwriting and pricing? - The company is maintaining prudent guidelines and leveraging its strong capital base to help well-qualified borrowers [35] Question: Has there been any impact from recent government policy changes on loss mitigation? - The company has seen continued strength in GSE loss mitigation programs and is optimistic about new loss mitigation options [39] Question: What are the pricing dynamics and market share changes? - Market participation has been stable, and pricing adjustments are made based on risk and return alignment [45] Question: How does the seasoning of the portfolio affect delinquency development? - The average age of the portfolio is now 3.9 years, which is expected to slow the increase in new delinquency development [54] Question: Are cancellation rates increasing? - The company has not seen significant changes in borrower-initiated cancellations, which primarily occur due to refinancing [71]

Financial Performance - Total revenue reached $12.7 billion, a 45% increase compared to Q1 2024[11] - Key product revenue surged to $7.5 billion, representing a 119% growth rate[11] - Non-GAAP earnings per share (EPS) increased by 29% to $3.34[11] - The company reaffirms its 2025 revenue guidance of $58.0 billion to $61.0 billion[9] Market Leadership and Expansion - The company gained U.S. incretin analogs market leadership with a 53.3% market share in total prescriptions[9] - Mounjaro U.S. type 2 diabetes incretin analogs TRx share of market (SOM) reached 39% and NBRx SOM 46% at the end of Q1 2025[22] - Zepbound U.S. branded anti-obesity TRx SOM exceeded 60% and NBRx SOM 74% at the end of Q1 2025[22] Strategic Investments and Pipeline Development - The company announced plans to double U.S. manufacturing investments, committing a total of $50 billion since 2020[9] - Research & Development investment reached $2.7 billion, accounting for 8% growth[11] - The company disclosed positive Phase 3 trial results for oral GLP-1, orforglipron, demonstrating statistically significant efficacy and a safety profile consistent with injectable GLP-1 medicines[9] - Jaypirca achieved Q1 2025 sales of $92 million and secured regulatory approval in the EU for relapsed or refractory CLL patients previously treated with a BTK inhibitor[22]

Financial Data and Key Metrics Changes - Consolidated revenue grew 1% on a reported basis and 3% on an organic constant currency basis [12] - Adjusted EBITDA declined by $3.5 billion year over year, impacted by a $2.6 million impairment charge related to a planned sale [15][16] - Gross profit was affected by preproduction startup costs related to a new facility, but would have increased modestly if those items were excluded [16] Business Line Data and Key Metrics Changes - Vista experienced 3% organic constant currency growth, with key growth categories like promotional products, signage, packaging, and labels growing at double-digit rates [12][13] - The consumer product category returned to 5% growth after a decline in the previous quarter [13] - The business cards and stationery product category declined 3% year over year, showing slight improvement from a 4% decline in the previous quarter [14] Market Data and Key Metrics Changes - Strong growth in elevated products, which include promotional products and packaging, indicates a shift towards higher lifetime value customers [4][52] - Business performance in Europe remained strong despite macro headwinds, while the U.S. market faced challenges due to organic search algorithm changes [13] Company Strategy and Development Direction - The company is focused on expanding into elevated products to increase customer lifetime value and market share [4][10] - Plans to leverage cross-SIMPRESS fulfillment to accelerate new product introductions and reduce costs [5] - The company aims to balance capital deployment between organic growth investments, reducing leverage, and share repurchases [21][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering attractive growth in per share cash flow despite a noisy backdrop [3] - The uncertainty surrounding tariffs has led to the withdrawal of guidance for FY 2025 and beyond, with management emphasizing the need for flexibility in response to changing conditions [20][88] - Management believes that the company can navigate economic downturns effectively due to its scale advantages and diverse customer base [49] Other Important Information - The company is actively working on mitigating tariff impacts, particularly from Chinese sourced raw materials, and plans to increase prices to offset costs [19] - The new production facility in the U.S. is expected to enhance capabilities and reduce costs [6][75] Q&A Session Summary Question: Which customer verticals are most exposed to tariff impacts? - Management indicated that promotional products, apparel, and gifts are the most exposed, with promotional products representing over 20% of consolidated revenue [25][26] Question: What is the expected tariff expense on remaining China COGS? - The estimated additional cost due to tariffs on the remaining $20 million of COGS from China is approximately $29 million, but pricing changes may offset some of this impact [32][35] Question: How does management view the long-term gross margin profile? - Management focuses on gross profit rather than gross margin percentage, emphasizing the importance of delivering value to customers [62][63] Question: What is the rationale for withdrawing long-term guidance? - The withdrawal was primarily due to tariff uncertainty and its potential impact on demand, making it difficult to provide accurate forecasts [88][90] Question: How does the company balance share buybacks with internal investments? - Management regularly evaluates the trade-offs between share repurchases and capital investments, aiming for high returns on both fronts [81][86]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported core FFO of $0.19 per diluted share, with same store property cash NOI up 0.4% excluding nonrecurring revenue items from Q1 2024 [27] - Expenses increased approximately 5% year over year, driven by real estate taxes, payroll costs, and repair and maintenance costs, partially offset by higher tenant reimbursement income and growth in rental revenue [27][28] - The company maintains its guidance for core FFO of $0.86 to $0.89 for 2025, with unchanged NOI guidance for the Observatory at $97 million to $102 million [28][29] Business Line Data and Key Metrics Changes - The commercial portfolio leased a total of 231,000 square feet in Q1 2025, including significant renewals and expansions with notable tenants [13][14] - The Manhattan office portfolio is 93% leased, with a slight decrease from 94.2% in the previous quarter, but the company expects occupancy gains by year-end 2025 [13][19] - The multifamily portfolio achieved 99% occupancy with 8% year-over-year rent growth in Q1 2025 [16] Market Data and Key Metrics Changes - The leasing environment in New York City remains active, particularly for modernized buildings near mass transit, with the company achieving its fifteenth consecutive year of positive mark to market rent spreads [9][16] - The Observatory generated NOI of approximately $15 million, with visitation down 0.6% year over year, attributed to weather conditions and the timing of the Easter holiday [9][28] - Approximately 50% of Observatory visitors are domestic, with no single region contributing more than 10% of total visitation, indicating a broad international exposure [11] Company Strategy and Development Direction - The company focuses on five priorities: leasing space, selling tickets to the Observatory, managing the balance sheet, identifying growth opportunities, and achieving sustainability goals [12][72] - The company is well-positioned to navigate economic uncertainties due to its diversified income streams and strong balance sheet, allowing for flexibility in leasing and maintenance [7][22] - The company actively underwrites deals across retail, multifamily, and office sectors, with a focus on New York City, and is prepared to act on opportunities to enhance growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential macroeconomic risks but remains optimistic about the company's strong position due to long-term leases and a diverse tenant base [6][7] - The company is focused on maintaining operational excellence and controlling costs while monitoring external factors that could impact tourism and economic growth [21][22] - Management emphasizes the importance of transparency and adaptability in the current uncertain environment, particularly regarding tourism and consumer behavior [21][22] Other Important Information - The company repaid $100 million in Series A unsecured notes and $120 million in revolving credit facility balance during the quarter, maintaining a proactive approach to managing its balance sheet [23] - The company has the lowest leverage among New York City-focused REITs at 5.2 times net debt to EBITDA as of quarter-end [23] Q&A Session Summary Question: How are leasing conversations unfolding with different tenant categories? - Management noted no change in lease negotiations across various tenant categories in the last sixty days, indicating strong activity and interest [33][34] Question: What is the expected trend for CapEx in the coming years? - Management provided insights on CapEx, indicating a reduction in leasing commissions and building improvements as the portfolio stabilizes, with a good run rate expected moving forward [35][38] Question: How is the Williamsburg leasing progressing? - Management reported strong activity in Williamsburg, with high interest from recognizable brand names and a 94% lease rate across the retail portfolio [40][43] Question: How does the company prioritize capital allocation opportunities? - Management emphasized a balanced approach to capital allocation, focusing on operating runway and potential investment opportunities while being measured in share buybacks [44][45] Question: What is the company's perspective on tourism and potential impacts from geopolitical tensions? - Management has not detected significant shifts in demand and remains focused on operational discipline and marketing strategies to mitigate any potential declines in tourism [56][57]

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.55 and core FFO per share of $0.53 for Q1 2025, benefiting from a $0.03 contribution from a large termination fee [15][16] - Same property NOI grew by 3.1%, driven by a 350 basis point increase from minimum rent and a 90 basis point increase in net recoveries [16][18] - The company raised its 2025 NAREIT and core FFO per share guidance by $0.02 each at the midpoints [10][18] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q1 were just under 14%, with non-option renewal spreads at 20% [9][10] - Starting rents for comparable new shop leases were nearly $41 per square foot, approximately 20% higher than the current portfolio average [9] - New and non-option renewal shop leases signed in Q1 had weighted average rent bumps of 360 basis points, nearly 100 basis points higher than three years ago [10] Market Data and Key Metrics Changes - Demand for space in high-quality centers remains healthy, with strong interest from larger format tenants [8][10] - The office component of Legacy West is 98.7% leased, while retail is at 95% [25] Company Strategy and Development Direction - The acquisition of Legacy West in a joint venture with GIC is seen as a pivotal step forward, enhancing portfolio quality and solidifying the company's position in lifestyle and mixed-use assets [11][12] - The company aims to pivot its portfolio towards mixed-use properties while still maintaining a presence in grocery-anchored centers [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to produce strong results in 2025 and deliver long-term value for stakeholders [13] - The company is optimistic about the mark-to-market opportunities within the Legacy West acquisition, expecting significant rent growth over the next three years [24][47] Other Important Information - The company has increased its general bad debt reserve midpoint by 15 basis points to 100 basis points of total revenues, reflecting increased economic uncertainty [18] - The acquisition is expected to be immediately accretive to FFO per share while modestly increasing pro forma leverage by 0.2 times [12][20] Q&A Session Summary Question: Expected NOI growth rate for Legacy West and current occupancy rates - Management indicated that the embedded rent bumps for Legacy West are 2.6%, above the portfolio average of 1.7%, with office occupancy at 98.7% and retail at 95% [23][25] Question: Office demand and tenant turnover - The office product is described as extremely strong, with high tenant satisfaction and a submarket lease percentage of around 95% [26][27][29] Question: Relationship with GIC and future investments - Management confirmed interest in expanding the relationship with GIC for additional investments and joint ventures [31] Question: Shift in bad debt reserve and tenant conversations - The shift in reserves was attributed to better-than-expected outcomes for bankruptcies, with no significant increase in aged accounts receivable [38][40] Question: Transaction environment and asset sales - The market remains healthy for larger format deals, with competitive cap rates and active acquisition buyers [41] Question: Sales productivity comparison among Legacy properties - Legacy West is expected to have similar or slightly better sales productivity compared to Southlake, with a higher concentration of luxury retail [115][118]

Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $59.8 million for Q1 2025, a decrease from $67.9 million in the prior year period, primarily due to lower economics on the Granite City contract extension and lower spot blast coke sales volumes [11][13] - Net income attributable to SunCoke was $0.20 per share in Q1 2025, down $0.03 compared to the prior year [13] - The company ended the quarter with a strong liquidity position of $543.7 million, including a cash balance of $193.7 million and a fully undrawn revolver of $350 million [12][18] Business Line Data and Key Metrics Changes - Domestic coke adjusted EBITDA was $49.9 million with sales volumes of 898,000 tons, impacted by lower economics and volumes at Granite City due to the contract extension [14] - The logistics business generated adjusted EBITDA of $13.7 million, an increase from $13 million in the prior year, driven by higher transloading volumes [15] - Combined throughput volumes at terminals were 5.7 million tons in Q1 2025, up from 5.5 million tons in the same prior year period [16] Market Data and Key Metrics Changes - The domestic coke market remains volatile, with the steel industry outlook uncertain, but the company has finalized all spot blast and foundry coke sales for the full year [11][14] - The pricing environment for coke is challenging, with expectations that the market will not strengthen significantly in the near term [42] Company Strategy and Development Direction - The company is focused on maintaining strong safety and environmental performance while executing operating and capital plans [19] - SunCoke is pursuing growth opportunities beyond the GPI project, emphasizing disciplined capital allocation to reward long-term shareholders [20][27] - The Granite City coke supply agreement has been extended through September 2025, with an option for an additional three-month extension [12] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year consolidated adjusted EBITDA guidance of $210 million to $225 million, despite challenging market conditions [21] - The company is closely monitoring market conditions but does not foresee significant impacts on operations for the remainder of the year [13][19] Other Important Information - A dividend of $0.12 per share was announced, payable to shareholders on June 2, 2025 [11] - The company spent $4.9 million on capital expenditures in Q1 2025 and paid $10.9 million in dividends [18] Q&A Session Summary Question: Annual guidance implies an uplift in quarterly adjusted EBITDA; can you discuss the cadence? - Management indicated that lower EBITDA in Q1 was due to timing and expected margins from shipments in the second half of the year [24][25] Question: Update on capital allocation priorities and long-term growth opportunities? - Management stated they are looking for profitable growth opportunities while maintaining dividends and being judicious with spending [26][27] Question: What drove the inventory build on the coal side? - The inventory build was attributed to seasonal factors and the need to prepare for the year, with expectations for reversal later [29][30] Question: Health of the foundry and export coke markets? - Management noted the market is challenging, but they are sold out for the year and are monitoring pricing closely [40][42] Question: EBITDA per ton in the Domestic Coke segment was above guidance; any thoughts? - Management explained that the higher EBITDA per ton was due to lower spot blast coke sales this year compared to the previous year [44] Question: Production from Haverhill was below normal rates; was this timing? - Management confirmed that lower production in Q1 was planned and accounted for in their full-year guidance [45]

Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q1 2024 to $30.1 million in Q1 2025, representing a 2.5% year-over-year growth [12] - Quarter-over-quarter, total revenue grew by 2.7% from $29.3 million in Q4 2024 to $30.1 million in Q1 2025 [13] - Funds from operations (FFO) decreased slightly by $77,000 quarter-over-quarter, remaining at $12.7 million in Q1 2025 [14] - Adjusted funds from operations (AFFO) totaled $14.7 million in Q1 2025, approximately $100,000 higher than Q4 2024, with a per diluted common share basis remaining at $0.55 [14] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained flat at 90.9% and 6.7 years, respectively [6] - The company acquired a behavioral residential treatment facility for approximately $9.7 million, with anticipated tenant improvements of $1.4 million [7] - The company signed definitive purchase and sale agreements for seven properties with an expected investment of $169.5 million, with expected returns ranging from 9.1% to 9.75% [8] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, receiving net proceeds of approximately $600,000 [9] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3.2 million, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company continues to be selective in acquisitions and is evaluating capital recycling opportunities to fund near-term acquisitions [10][22] - The company aims to maintain modest leverage levels while exploring various capital options, including potential asset sales and draws on the revolver [10][22] - The company has a solid pipeline of acquisitions expected to close over the next three years, totaling approximately $169 million [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of tenants and the overall health care sector, indicating no immediate negative impacts from macroeconomic factors [44] - The company is actively monitoring the geriatric psychiatric hospital operator's sale process and expects more clarity by the end of Q2 or early Q3 [19][40] - Management remains cautious about raising equity at current share prices and is focused on selected capital recycling [22][25] Other Important Information - The company declared a dividend of $0.47 per common share for Q1 2025, marking a continuous increase since its IPO [10] - The company is not currently issuing shares under its ATM program due to low share prices [10] Q&A Session Summary Question: Update on the geriatric psychiatric hospital operator's sale process - Management indicated that the operator is in an active sale process with potential buyers, and more clarity is expected by the end of Q2 or early Q3 [18][19] Question: Acquisition outlook and capital allocation - Management confirmed a healthy pipeline of acquisitions but noted a cautious approach to raising equity at current prices, focusing on selected asset sales and revolver draws [20][22] Question: Concerns about smaller tenants - Management reported stability among tenants and no significant issues arising in Q1, with a positive macro outlook for health care providers [44] Question: Conditions for the $169 million pipeline - Management clarified that the pipeline is solid and expected to close over three years, with flexibility in decision-making based on project evaluations [49] Question: Position of notes in the event of asset sales by the psychiatric operator - Management explained the company's second lien position on accounts receivable and first lien on other assets, indicating a structured approach to creditor relationships [51]