Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, in line with expectations, driven by strong growth in coolers and equipment and continued momentum in international business [35][36] - Gross profit rose by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [42] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [45][60] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [36] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [37][38] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [39] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [41] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [29][30] Company Strategy and Development Direction - The company is focused on three key areas: accelerating product innovation, transforming the supply chain, and maintaining operational discipline [5][8] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [9][67] - Supply chain transformation aims to reduce reliance on China, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [7][8] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [51] - Long-term growth potential remains strong, with a focus on international expansion and product innovation [55][93] Other Important Information - The company ended the first quarter with $259 million in cash and a substantial net cash position [46] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [60] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [67][68] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is attributed to China, with expectations of a much stronger position by the end of the year as supply chain diversification progresses [73][75] Question: Outlook for the Drinkware business - The company anticipates durable demand in the Drinkware category, with ongoing innovation and a diversified product portfolio to address various consumer needs [79][80] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains, aiming for a stable pricing environment that supports long-term growth [89][90] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the launch in Japan to expand further into Asia [91][93]

Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, driven by strong growth in coolers and equipment and continued momentum in international business [38][39] - Gross profit increased by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [45] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [47][62] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [39] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [40][41] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [42] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [44] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [31][32] - The U.S. market is expected to be flat to down low single digits year-over-year, while international business is projected to grow between 15% to 20% [56] Company Strategy and Development Direction - The company is focused on three key areas: product innovation, supply chain transformation, and operational discipline [5][11] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [8][69] - A significant shift in Drinkware production out of China is underway, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [6][50] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [53] - Long-term growth potential remains strong, with a focus on brand resilience and product innovation [35][65] Other Important Information - The company ended Q1 with $259 million in cash and a substantial net cash position, reflecting strong liquidity [48] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [62] - The company is closely monitoring tariff policies and implementing mitigation strategies to manage costs [64] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [69] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is related to China, with expectations of a significant reduction in exposure to Chinese goods by 2026 [76] Question: Outlook for the Drinkware business - The company anticipates a durable demand in the Drinkware category, with ongoing diversification efforts to address various consumer needs [81] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains to mitigate tariff impacts, ensuring long-term stability [92] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the Japan launch to expand into the rest of Asia [95]

Financial Data and Key Metrics Changes - Overall net sales for Q1 2025 were $68 million, down 5% from $71.6 million in Q1 2024 [4] - Consolidated gross earnings were 44.6% of net sales for the quarter, compared to 44.7% in the previous year [4] - Operating earnings totaled $7 million, down 15% from $8.3 million in Q1 2024 [5] - Net earnings were $5.5 million or $0.57 per diluted share, compared to $6.7 million or $0.69 per diluted share in the same quarter last year [5] Business Line Data and Key Metrics Changes - In the North American wholesale segment, net sales were $54.3 million, down 4% from $56.2 million last year [5] - North American retail segment net sales were $8.7 million, down 12% from record sales of $9.8 million in 2024 [6] - Florsheim Australia's net sales were $5.1 million, down 7% from $5.5 million in Q1 2024 [8] Market Data and Key Metrics Changes - Florsheim Australia's net sales declined 7% for the quarter or 3% in local currency, with a 6% increase in local currency sales in Australia [9] - Overall inventory as of March 31, 2025, was $68.2 million, compared to $74 million at the end of 2024 [18] Company Strategy and Development Direction - The company is focusing on mitigating the impact of increased tariffs by negotiating cost reductions with suppliers and planning to raise selling prices [11] - There is an emphasis on diversifying sourcing to reduce reliance on China, with plans to source from countries like Cambodia, Vietnam, and India [25] - The company remains optimistic about its innovative product lines and is investing in data-driven tools for long-term growth in e-commerce [16] Management's Comments on Operating Environment and Future Outlook - Management noted significant geopolitical and macroeconomic uncertainties affecting consumer and retailer confidence, leading to declines in wholesale and direct-to-consumer businesses [13] - Despite challenges, management expressed confidence in operational execution and the ability to manage supply chain disruptions [20] Other Important Information - Cash and marketable securities totaled $77.9 million with no debt outstanding on the revolving line of credit [11] - A cash dividend of $0.27 per share was declared, representing a 4% increase from the previous rate [12] Q&A Session Summary Question: How long can the pause on imports from China be maintained before impacting inventories? - Management indicated they are covered through part of Q3 but will face inventory issues thereafter, while continuing to manufacture in China and shipping to a distribution center in Montreal [23][24] Question: What is the current duty going into Canada? - The duty into Canada is 19%, which is less complicated than the U.S. duty structure [29]

Financial Data and Key Metrics Changes - Acushnet reported worldwide net sales of $703 million, a 1% increase year-over-year [6] - Adjusted EBITDA was $139 million, reflecting a decrease of $15 million due to increased investment in the equipment segment [6][18] - Gross profit decreased by $5 million compared to the first quarter of 2024, primarily due to higher manufacturing costs [19] Business Line Data and Key Metrics Changes - Golf equipment net sales increased by almost 4%, driven by new product launches and strong performance in the EMEA region [7][11] - Titleist golf ball business grew by 4%, with significant gains in the EMEA region [8] - FootJoy sales declined by 5%, attributed to lower closeout footwear sales and targeted product line rationalization [10][19] Market Data and Key Metrics Changes - The US market saw a 1% increase, while EMEA grew by 4% [11] - Japan and Korea experienced declines of 24% each, primarily due to poor weather affecting the golf season [11] - Rounds of play in the US were down 2%, but worldwide rounds were slightly up, led by a 15% increase in EMEA and the UK [12] Company Strategy and Development Direction - The company is focused on executing a full slate of product fitting events across all markets [11] - Acushnet is adapting its supply chain to mitigate tariff impacts, with plans to source more components from non-China territories [14][26] - The company aims to maintain a strong consumer base and provide exceptional product experiences while navigating tariff uncertainties [17][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core consumer, the dedicated golfer, despite macroeconomic uncertainties [17][25] - The company expects a gross tariff impact of approximately $75 million in 2025, with plans to mitigate over 50% of this impact [25][26] - Future guidance remains uncertain due to changing trade policies, with no updates provided until more clarity is achieved [25] Other Important Information - Capital expenditures for the first quarter were $11 million, with a planned total of approximately $85 million for 2025 [22] - The company returned roughly $51 million to shareholders through share repurchases and cash dividends [23] - The effective tax rate in Q1 was 17.9%, down from 21.7% the previous year [21] Q&A Session Summary Question: Guidance and Consumer Demand - Management indicated that the decision to pause guidance updates is due to less visibility rather than a change in consumer demand [30][31] Question: Tariff Mitigation Actions - Management outlined that pricing would be a last resort, focusing first on supply chain adjustments and cost-sharing with suppliers [34][36] Question: Impact of Tariff Changes - If the China tariff rate were to decrease, the potential mitigation of the $75 million impact could be significant [41][42] Question: Demand Trends in Asia - Management noted a slow start in Asia due to weather but observed improvement in March and April [43][44] Question: Currency Exchange Rate Impact - A potential tailwind of $20 million was discussed if current exchange rates persist, impacting overall financial outlook positively [49][50] Question: Diversification from China - Management confirmed plans to diversify sourcing away from China while maintaining some supply chains for non-US markets [56][58]

Financial Data and Key Metrics Changes - Net sales grew 2% as reported and 4% in constant currency to $827 million [6][25] - Adjusted gross margin increased by 130 basis points to 49.6% [6][25] - Adjusted EBITDA grew 7% to $57 million [6][25] - Cash balance at quarter end was $1.24 billion, an increase of $113 million year-over-year [32] - Total debt remained approximately $2.34 billion [33] Business Line Data and Key Metrics Changes - Dolls gross billings increased 2%, driven by Disney Princess and Wicked, while Barbie and American Girl were comparable to the prior year [26][15] - Vehicles increased 6%, with Hot Wheels growing 7% [26][15] - Infant toddler and preschool overall declined 5%, primarily due to declines in baby gear and Power Wheels [26] - Challenger categories overall increased 14%, driven by growth in Action Figures and Games [28] Market Data and Key Metrics Changes - Gross billings increased 4% in North America, including double-digit growth in Canada [29] - EMEA increased 8% with growth across almost every market [29] - Asia Pacific increased 12%, driven by growth in Australia, India, and China [29] - Latin America declined 7%, reflecting the impact of retailers reducing inventory levels [29] Company Strategy and Development Direction - The company is diversifying its supply chain to reduce reliance on China, with plans to relocate production of 500 toy SKUs from China to other locations in 2025 [9][10] - Aiming to reduce U.S. imports from China to less than 15% of global production by 2026 and less than 10% by 2027 [13][12] - The company is committed to maintaining a strong balance sheet and executing a $600 million share repurchase program for 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating actions to offset potential tariff impacts, emphasizing a strong balance sheet and operational excellence [22][23] - The company is pausing full-year 2025 guidance due to uncertainty in consumer spending and the evolving tariff situation [21][22] - Management noted that the toy industry has historically proven resilient during uncertain times [22] Other Important Information - The company reported a strong first quarter with top-line growth and gross margin expansion [6][23] - The entertainment strategy is progressing, with several movies in production and partnerships with major entertainment companies [18][19] Q&A Session Summary Question: Can you outline the roadmap to offset the impact of incremental tariffs? - Management indicated that Q1 was not impacted by tariffs and expects Q2 to be unaffected as well, with potential impacts starting in Q3 [42] - Current exposure to tariffs is estimated at $270 million, before considering mitigating actions [43][44] Question: What flexibility exists in the supply chain to transition out of China? - The company has established a flexible, modular supply chain over seven years, sourcing from multiple countries [50][52] Question: How confident is the company in passing along pricing to retailers? - Management emphasized long-standing relationships with retailers and a strategic approach to pricing, ensuring affordability [55][59] Question: What is the current state of inventory levels post-Easter? - The company reported that both owned and retail inventories are at appropriate levels, with some increases due to the later Easter holiday [78] Question: Have there been changes in retailer buying behavior? - No significant changes in buying behavior were noted, but some volatility is expected in gross billings due to direct import assessments [82][84]

Core Insights - The MedTech industry, particularly health technology, is facing challenges in 2025 due to rising tariffs and unstable capital markets, leading to adjusted expectations across companies [1][4] Industry Overview - The re-emergence of aggressive U.S. trade policies, including a 145% baseline tariff on Chinese imports, has significantly impacted global supply chains, particularly for medical technology companies with manufacturing ties to China and Mexico [2] - Health tech startups are experiencing more difficulties compared to larger companies, facing production delays, higher costs, and tighter access to funding, which may hinder innovation in key areas [4][12] Company Performance - GE Healthcare reported a 3% increase in first-quarter revenues and a 51% surge in net income, but reduced its full-year adjusted EPS forecast due to an 85 cents per share tariff impact [5] - Johnson & Johnson disclosed a $400 million tariff burden affecting its medical device exports to China, while also announcing a $55 billion domestic investment plan [6][7] - Abbott achieved a 4% revenue increase and 8.2% growth in net earnings in Q1, but anticipates a significant tariff impact, although it maintained its earnings forecast [8][9] - Boston Scientific's first-quarter adjusted EPS rose by 33.9% with a 20.9% revenue growth, and the company raised its 2025 guidance despite expecting a $200 million tariff hit [10][11] Startup Challenges - U.S. digital health funding rose to $3 billion in Q1 2025, but remains below the $6.6 billion peak in 2021, indicating a cautious investment environment for startups [12] - Startups like Reperio Health are facing pressures from tariffs and supply chain issues, while others like Float Health are focusing on cost-cutting and improving patient access [12][13] Future Outlook - Most MedTech companies are preparing for a future with persistent trade barriers, emphasizing the need for supply chain diversification and U.S. manufacturing investments [14]

Financial Data and Key Metrics Changes - Total Q1 revenue was $280 million, up 3% sequentially, with adjusted EBITDA of $94 million, an increase of 1.2% sequentially [9][11] - GAAP net income for Q1 was $54 million, down from $57 million in the previous quarter, primarily due to professional fees incurred at corporate [12] - Adjusted net income and earnings per share were $59 million and $0.73 per share, respectively, compared to $57 million and $0.71 per share in the fourth quarter [12] Business Line Data and Key Metrics Changes - Pressure Control segment revenues were $190 million, up 7.7% sequentially, driven by customer drilling efficiencies [9][10] - Spoolable Technologies segment revenues were $93 million, down 3.6% sequentially due to lower domestic customer activity, partially offset by increased international shipments [10][11] - Operating income for Pressure Control increased by $3.5 million or 6.9% sequentially, while Spoolable Technologies saw a decrease of $1.6 million or 6.5% sequentially [10] Market Data and Key Metrics Changes - International sales in the Spoolable Technologies segment increased by 30% quarter over quarter, driven by robust demand in Canada [22] - The company expects U.S. land drilling activity to decline slightly in the second quarter, with approximately 30 fewer land rigs operating than at the end of Q1 [20] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts by increasing alternative sourcing and ramping up production from its Vietnam facility [16][17] - There is a commitment to international expansion, although no specific updates were provided during the call [26] - The company plans to reduce full-year 2025 net CapEx outlook to a range of $40 million to $50 million while maintaining critical investments [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability despite macroeconomic uncertainties and tariff impacts [27] - The company anticipates a decline in pressure control revenue in Q2 but expects spoolable technologies revenue to increase due to seasonal expansion [20][21] - Management noted that downturns historically create opportunities for new customer acquisition and that they are already seeing such opportunities [90] Other Important Information - The company paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $11 million [13] - The cash balance at the end of the quarter was $348 million, reflecting a sequential increase of approximately $5 million [13] Q&A Session Summary Question: Transition to Vietnam and cost advantages - Management clarified that Bossier City is not a low-cost operation but offers fast turnaround and robust manufacturing, protecting market share [30] Question: Customer behavior regarding tariffs - Management confirmed that customers have requested to pull forward purchases, but these requests have been denied to maintain fairness among all customers [39] Question: Customer loyalty during downturns - Management indicated that major customers are sticking with the company, emphasizing the importance of supply chain sustainability [42] Question: M&A opportunities in the current environment - Management noted that private equity firms are willing to sell oil field service investments at attractive prices, but the focus remains on the current industry [46] Question: Impact of tariffs on margins - Management acknowledged that there will be some margin compression in the second half of the year due to tariffs, but diversification efforts will help mitigate impacts [68] Question: Ongoing Section 232 investigation - Management expressed that the U.S. lacks adequate steelmaking capacity, which could lead to inflationary pressures [81]

Core Insights - GN Store Nord has adjusted its financial guidance for 2025, now expecting organic revenue growth of -3% to +3%, an EBITA margin of 11% to 13%, and free cash flow excluding M&A to remain around DKK 800 million [2][6]. Financial Guidance for 2025 - The company anticipates organic revenue growth excluding wind to be down from a prior estimate of 3% to 7% to a new range of -3% to +3% [2]. - EBITA margin guidance has been revised down from 12% to 14% to a new range of 11% to 13% [2]. - Free cash flow excluding M&A is confirmed to be approximately DKK 800 million, unchanged from previous guidance [2]. Revenue Assumptions by Division Hearing Division - GN expects the hearing aid market to grow at historical rates, projecting a market volume growth of 4-6% and a market value growth of 3-5% in 2025 [3]. - The division aims for organic revenue growth of 5% to 9%, supported by the launch of ReSound Vivia and ReSound Savi [3]. Enterprise Division - The current market environment has led to uncertainty, causing companies to postpone IT projects, which negatively impacts the addressable market [4]. - The division anticipates organic revenue growth of -8% to 0% due to these challenges and prioritization of product variants shipped to the U.S. [4]. Gaming Division - The gaming gear market is expected to be negatively impacted by a decline in consumer sentiment in the U.S. and global economic uncertainty [5]. - The division projects organic revenue growth of -6% to +2%, excluding the impact from the wind-down of certain product lines [5]. Q1 2025 Financial Performance - GN reported a group revenue of DKK 3,986 million for Q1 2025, reflecting a 7% decline compared to Q1 2024 [6]. - The Hearing division experienced a -1% organic revenue growth, while the Enterprise division faced a -9% decline [6]. - The Gaming division reported an 11% organic revenue growth, excluding the impact from the wind-down of certain product lines [6]. - Group EBITA was DKK 300 million, with an EBITA margin of 8%, indicating a significant decline from previous periods [6]. - Free cash flow excluding M&A was reported at DKK -395 million, influenced by seasonality and higher interest payments [6]. Management Commentary - The CEO expressed confidence in the underlying strength of the business despite short-term challenges and emphasized the successful launch of ReSound Vivia [6][8]. - The company is taking significant actions to mitigate the impact of tariffs, including diversifying its manufacturing footprint and implementing price increases in the U.S. [6][9].

Financial Data and Key Metrics Changes - Core FFO per share was $0.61 for the first quarter, an increase of 3.4% compared to the previous year [15] - Cash available for distribution totaled $106.5 million, an increase of 8.5% compared to the prior period [15] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.2 times [15] - Same store cash NOI growth was 3.4% for the quarter, driven by leasing spreads of 27.3% and annual escalators of 2.8% [17] Business Line Data and Key Metrics Changes - The company signed 36 leases totaling 5 million square feet during the quarter, generating cash and straight line leasing spreads of 27.3% and 42.1% respectively [16] - Retention for the quarter was 85.3%, with 78.5% of the operating portfolio square feet expected to lease in 2025 already leased [16][19] - The company achieved cash leasing spreads of 25.1% for the leases commencing in 2025 [8][16] Market Data and Key Metrics Changes - The national under construction pipeline decreased more than 16% sequentially since the fourth quarter [11] - The company noted healthy tenant activity in various markets, with strong demand in the Midwest and Sunbelt regions, while some weakness was observed in Atlanta and San Diego [9][28] Company Strategy and Development Direction - The company aims to benefit from geographic diversity and focus on CBRE Tier one markets, viewing tenant supply chain diversification as a net positive [9] - The company has a strong balance sheet and ample liquidity, positioning itself for sustainable growth in 2025 [20] - The company is evaluating a broad mix of assets for acquisition, including long-term and short-term leases, and is open to opportunities in the current market environment [58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing activity despite macroeconomic uncertainties, noting that tenants are still making decisions albeit at a slower pace [27][36] - The company maintains its 2025 credit loss guidance of 75 basis points, with minimal credit loss experienced in the first quarter [19][60] - Management highlighted ongoing discussions with tenants for early lease renewals, indicating strong demand in the system [29][34] Other Important Information - The company completed acquisitions totaling $43 million in the first quarter, with cash cap rates averaging 6.87% [11] - A significant lease of 500,000 square feet was executed in the Savannah market with zero downtime and a 25% cash leasing spread [10] - The company has approximately 2.5 million square feet of development activity across 11 buildings, with 50% under construction and 16% pre-leased [14] Q&A Session Summary Question: Clarification on new leasing activity - Management confirmed that 1 million square feet of new leases were signed in the last 30 to 60 days, with a mix of new and renewal leases [25][26] Question: Demand across different submarkets - Management noted healthy demand in Midwest markets and the Sunbelt, with some weakness in Atlanta and San Diego, but overall tenant activity remains strong [27][28] Question: Trends in the private transactions market - Management observed that while the private market remains strong, some portfolios have been pulled from the market due to pricing volatility [42][44] Question: Update on credit loss and American Tire - Management stated that American Tire is current on rent, and the guidance for credit loss remains unchanged at 75 basis points [60][61] Question: Insights into leasing activity and concessions - Management indicated that while some concessions may be offered, they are generally holding out for the best net effective rent [106] Question: Update on development pipeline demand - Management reported good activity in development projects, although new leasing for new developments is slower due to macroeconomic factors [72][74]

Financial Data and Key Metrics Changes - Core FFO per share was $0.61 for the quarter, an increase of 3.4% compared to last year [13] - Cash available for distribution totaled $106.5 million, an increase of 8.5% compared to the prior period [13] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.2 times [13] - Liquidity stood at $1 billion at quarter end [13] Business Line Data and Key Metrics Changes - 36 leases totaling 5 million square feet were commenced during the quarter, generating cash and straight line leasing spreads of 27.3% and 42.1% respectively [14] - Retention for the quarter was 85.3% [14] - The company has signed 3.6 million square feet of leases commencing in the second quarter, with 1 million being new leasing [21][22] Market Data and Key Metrics Changes - The national under construction pipeline decreased more than 16% sequentially since the fourth quarter [9] - Weaker economic growth may negatively impact warehouse space demand, but this would be partially offset by increased near shoring and on shoring activity [9] Company Strategy and Development Direction - The company views the diversification of supply chains by tenants as a net positive due to its geographic diversity and focus on CBRE Tier one markets [7] - The company is maintaining its acquisition guidance, which is back-end weighted, with minimal impact to core FFO from acquisitions [46] - The company is focused on a broad mix of assets for acquisitions, evaluating both long-term and short-term leases [56] Management's Comments on Operating Environment and Future Outlook - Management noted that while tenant activity was healthy, the escalation of the global trade war continues to create uncertainty [7] - The company is optimistic about the demand for new leasing, with a strong start in the second quarter [34] - Management is cautious about the macroeconomic environment but remains confident in achieving its leasing targets for 2025 [78] Other Important Information - The company sold one building in Nashua, New Hampshire for gross proceeds of $67 million, representing a cash cap rate of 4.9% [11] - The company has approximately 2.5 million square feet of activity across 11 buildings in the U.S., with 50% under construction and 16% pre-leased [12] Q&A Session Summary Question: Clarification on new leasing activity - Management confirmed that 1 million square feet of new leases were signed in the last 30 to 60 days, with a mix of new and renewal leases [21][23] Question: Demand across different submarkets - Management noted healthy demand in Midwest markets and the Sunbelt, with some weakness in Atlanta and San Diego [25][26] Question: Trends in the private transactions market - Management observed that while there is still buyer interest, some portfolios have been pulled from the market due to pricing volatility [42][43] Question: Insights on credit loss - Management indicated minimal credit loss in the first quarter, with American Tire Distributors current on their 2025 rents [60][61] Question: Update on leasing activity and concessions - Management stated that while they are holding out for the best net effective rent, some markets may see increased free rent offers [108]