Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure. https://t.co/3bunHuO9Wd ...

Capital Structure and Debt Transaction - The company issued $700 million of senior secured notes due January 15, 2031, with a coupon of 10625%[20] - The company refinanced $485 million of existing notes and extended the asset-backed revolver[10] - A $250 million contribution was made to the U S Qualified Defined Benefit (QDB) plan, including $50 million from balance sheet cash[11, 20] Pension Plan Management - The company reallocated U S QDB plan assets to reduce volatility[12, 23] - The company is planning for $600 million of annuity purchases by year-end 2026 to reduce the cost of full removal of U S QDB plans[34] - The company expects approximately $35 million average annual reduction in required contributions in 2026-2029 to U S QDB Pension Plans[35] Financial Impact - The transaction swaps $200 million of pension deficit with funded debt[22] - The company anticipates approximately $70 million aggregate cash flow benefit (~$14M average annual benefit) for the 5-year period of 2025-2029[35] - The company's target asset allocation is 90% in the Liability Hedging Portfolio and 10% in the Growth Portfolio[24]

Core Viewpoint - AYR Wellness Inc. is facing potential ownership reclamation and sale of its subsidiary's equity interests due to alleged defaults under a Pledge Agreement, while simultaneously extending a waiver agreement to negotiate with senior lenders [1][2][3]. Group 1: Notification of Disposition and Defaults - AYR Wellness received a Notification of Disposition of Collateral from the Agent, indicating potential defaults under the Pledge Agreement [1][2]. - The Agent intends to reclaim and sell all equity interests in PA Natural Medicine LLC, which operates licensed medical cannabis dispensaries in Pennsylvania [2]. Group 2: Waiver Agreement and Extensions - The Second Amendment extends the temporary waiver period to July 11, 2025, allowing AYR additional time to negotiate with senior lenders [3]. - The Original Agreement provided a waiver for certain defaults related to the delay in filing interim financial statements and specific payment defaults [3][4]. - The extension does not permanently waive existing defaults but facilitates ongoing discussions to address financial obligations [4]. Group 3: Company Overview - AYR Wellness is a vertically integrated U.S. multi-state cannabis operator with over 90 licensed dispensaries and a portfolio of cannabis CPG brands [6]. - The company aims to deliver high-quality cannabis products while positively impacting its team members and communities [6].

Core Viewpoint - AYR Wellness Inc. has confirmed that it did not make the interest payment due on June 30, 2025, related to its outstanding senior notes, which could lead to an event of default if not resolved by July 30, 2025 [1][3]. Group 1: Financial Situation - The company is currently restructuring its debt profile and is in discussions with the holders of a majority of its outstanding notes to explore capital structure alternatives [2][3]. - The missed interest payment is not expected to cause operational challenges for the company [3]. Group 2: Company Overview - AYR Wellness is a vertically integrated U.S. multi-state cannabis operator, with over 90 licensed dispensaries and a range of cannabis consumer packaged goods (CPG) brands [5]. - The company aims to deliver high-quality cannabis products while positively impacting its team members and the communities it serves [5].

Financial Data and Key Metrics Changes - Getty Realty reported an annualized base rent (ABR) of approximately $199 million, reflecting an increase of 11.2% compared to $179 million in the prior year [7][18] - The company generated adjusted funds from operations (AFFO) per share of $0.59, marking a 3.5% increase from the previous year's quarterly result [17][23] - General and administrative expenses (G&A) as a percentage of total revenue improved by 40 basis points to 13.2% [18] Business Line Data and Key Metrics Changes - The convenience and automotive retail sectors showed resilience, with strong performance from tenants despite macroeconomic challenges [7][8] - Rent coverage for convenience store assets remained consistent, while car wash sector rent coverage increased [8] - The company invested $10.9 million across six properties with an initial cash yield of 7.8% during the quarter [13] Market Data and Key Metrics Changes - The portfolio included 1,115 net leased properties with an occupancy rate of 99.7% and a weighted average lease term of ten years [12] - Approximately 61% of ABR came from the top 50 metropolitan statistical areas (MSAs) [12] Company Strategy and Development Direction - Getty Realty remains committed to a disciplined acquisition strategy, focusing on high-density metro areas and creditworthy operators under long-term leases [11] - The company aims to increase its investment pipeline, which currently exceeds $110 million, with a focus on development funding transactions [10][15] - The strategic focus includes diversifying into new sectors such as quick-service restaurants (QSR) while maintaining a small percentage of the overall portfolio [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic uncertainty affecting transaction and capital markets but expressed confidence in sourcing opportunities that align with their investment thesis [10][23] - The company reaffirmed its AFFO per share guidance for 2025, anticipating a range of $2.38 to $2.41 [23] Other Important Information - The company has no debt maturities until June 2028, with a weighted average debt maturity of 5.4 years and a weighted average cost of debt at 4.5% [21][22] - The company has received all rent due through April 2025 from Zips, which filed for bankruptcy in February [22] Q&A Session Summary Question: Can you describe the cadence of capital deployment in the next nine to twelve months for the $110 million investment pipeline? - Management indicated that about two-thirds of the pipeline consists of development funding, typically taking nine to twelve months from signing to completion [25][26] Question: Given the macro uncertainty, what is the current development demand? - Management noted ongoing discussions with operators looking to accelerate new store growth programs in 2025, but clarity is still needed as the year progresses [27] Question: How should we think about the timing of ZiPS rent income hitting the income statement? - Management expects the resolution of ZiPS to be completed by the end of the second quarter, with continuity of rent for sites remaining with ZiPS [36][37] Question: What impact have tariffs had on the existing tenant base? - Management stated that the impact of tariffs is still uncertain, but discussions with tenants are ongoing to assess potential effects [41] Question: What is the credit profile of new car wash tenants? - Management confirmed that the new tenants are established operators familiar with the markets of the properties [49][50] Question: How does the outcome of the ZiPS situation compare to underwriting new investments? - Management expressed confidence in their underwriting process, stating that the recovery from the ZiPS event does not alter their approach to future investments [80][82]