Financial Data and Key Metrics Changes - The company's first quarter revenue increased by 4.7% year over year, reaching $175 million compared to $167.2 million in the prior year [6][28] - FFO as adjusted per share rose by 5.3% to $1.19 from $1.13 in the previous year, while AFFO increased by 8% to $1.21 from $1.12 [6][27] - The company is increasing its 2025 earnings guidance, with FFO as adjusted per share expected to range from $5.00 to $5.16, representing a 4.3% increase at the midpoint compared to the prior year [33][34] Business Line Data and Key Metrics Changes - The experiential portfolio comprises 276 properties, accounting for 94% of total investments, which are 99% leased or operated [11][12] - The education portfolio consists of 55 properties, which were 100% leased at the end of the quarter [11] - Percentage rents for the quarter increased to $3.3 million from $1.9 million in the prior year, primarily due to one early childhood education center tenant [29] Market Data and Key Metrics Changes - The North American box office for Q1 was $1.4 billion, down 11.6% year over year, largely due to the underperformance of "Snow White" [12] - However, Q2 box office through early May reached $1.1 billion, leading to a year-to-date increase of 17.1% compared to the same period in 2024 [13] - The company estimates the North American box office for 2025 will be between $9.3 billion and $9.7 billion [17] Company Strategy and Development Direction - The company is focusing on capital recycling, selling theater and education assets to reinvest in experiential properties [7][24] - New investments include a construction-themed attraction and a private golf club, reflecting the company's strategy to diversify its experiential portfolio [7][23] - The company aims to maintain disciplined investment spending, with a guidance range of $200 million to $300 million for 2025 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of experiential spending, noting that consumers often seek affordable entertainment options during economic downturns [10][37] - The company is closely monitoring potential tariffs impacting the film industry but believes that the current film slate for 2025 and 2026 is largely unaffected [37][89] - Management highlighted the ongoing strength in the box office and the importance of a robust film slate for future growth [16][86] Other Important Information - The company sold 10 leased early education centers, generating net proceeds of $70.8 million and recognizing a gain of $9.4 million [25] - The company has a strong liquidity position with $20.6 million in cash and $105 million drawn on its $1 billion revolving credit facility [33] - The common dividend was increased by 3.5% to $3.54 per share annualized, expected to be well covered with an AFFO payout ratio of 71% [35] Q&A Session Summary Question: Can you provide more details on the golf investment? - Management indicated that the golf investment is in a private club with reliable income flow and opportunities for growth due to scarcity in the market [44][46] Question: What is the nature of the buyers for recent dispositions? - Management noted a robust process with multiple bids from quality buyers, including a private fund specializing in education [47][49] Question: How do you see the strength of consumers today? - Management observed resilience in consumer spending, particularly in experiential activities, despite some pressure on food spending [100][102]