Group 1 - The company announced its first significant acquisition in a while, acquiring a high-quality portfolio of assets in Uppsala, Örebro, and Linköping valued at approximately SEK 1.7 billion [2] - The company has continued to invest in existing properties and has initiated new projects while increasing its stake in Entra [2] - The company refinanced bank loans amounting to SEK 10 billion, which has extended debt maturity and reduced costs through lower credit margins [3] Group 2 - An extra general meeting of shareholders is scheduled for July 18th, where shareholders will decide on a new Board of Directors [3]

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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] - Compared to Q4 2024, total revenue grew by 2.7% from $29.3 million, driven by acquisitions and seasonal increases in operating expense reimbursements [13] - Funds from operations (FFO) decreased slightly by $77,000 quarter-over-quarter but remained at $12.7 million, with FFO per diluted share at $0.47 [14] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained stable 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 agreements for seven properties with an expected investment of $169.5 million, with anticipated 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, resulting in net proceeds of about $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 is focused on selective acquisitions and capital recycling opportunities, maintaining modest leverage levels [10][22] - The management is evaluating the potential for share buybacks but prioritizes capital allocation for growth and acquisitions [25][26] - The company aims to close on two inpatient rehab facilities in the near term, with a healthy pipeline of acquisitions expected [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of tenants and the healthcare sector's resilience amid economic challenges [44] - The company is monitoring the geriatric psychiatric hospital operator's sale process, expecting more clarity by the end of Q2 or early Q3 [19][40] - Management remains cautious about raising equity at current share prices, preferring to utilize selected asset sales and revolver draws for funding [22][23] 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 has an active watch list for tenants, indicating ongoing monitoring of tenant performance [43] Q&A Session Summary Question: Additional information on the geriatric psychiatric hospital operator's sale process - Management indicated that they expect more certainty regarding buyer interest by the end of Q2 or early Q3 [18] Question: Acquisition outlook and capital allocation - Management confirmed a healthy pipeline but noted less activity in Q1, with plans to utilize selected asset sales and revolver draws for funding [20][22] Question: Clarification on contractual payments with the psychiatric hospital operator - The $3.2 million is solely rent, with additional notes payments of approximately $2.5 million [30][31] Question: Concerns about smaller tenants in the portfolio - Management reported stability among tenants, with no significant issues arising in Q1 [43] Question: Conditions under which the company might not proceed with the $169 million pipeline - Management clarified that while there are obligations to acquire, they can opt out if the opportunity is not right [49] Question: Position of the company's notes in the event of asset sales by the psychiatric hospital operator - Management stated they hold a second lien on accounts receivable and a first lien on other assets [51]

Financial Data and Key Metrics Changes - Total revenue increased from $29,300,000 in Q1 2024 to $30,100,000 in Q1 2025, representing a 2.5% annual growth [11] - Compared to Q4 2024, total revenue grew by 2.7% quarter over quarter, attributed to incremental revenue from acquisitions and seasonal increases in operating expense reimbursements [12] - Funds from operations (FFO) decreased slightly by $77,000 quarter over quarter, remaining at $12,700,000, with FFO per diluted share at $0.47 [13] 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 $9,700,000, with anticipated tenant improvements of $1,400,000, expecting an annual return of 9.5% [7] - The company signed definitive purchase and sale agreements for seven properties with an expected investment of $169,500,000, with returns ranging from 9.1% to 9.75% [7] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, receiving net proceeds of about $600,000, resulting in a gain on the property sale [8] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3,200,000, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company continues to be selective in acquisitions while focusing on property operating costs and tenant relationships [6] - Management is evaluating capital recycling opportunities and anticipates sufficient capital from selected asset sales and increased revolver capacity for near-term acquisitions [10] - The company raised its dividend to $0.47 per common share, marking a continuous increase since its IPO [10] Management's Comments on Operating Environment and Future Outlook - Management expects to have more clarity on the status of the geriatric psychiatric hospital operator's sale process by the end of Q2 or early Q3 [18] - The company is cautious about raising equity at current share prices and plans to utilize selected asset sales and revolver draws for funding acquisitions [22] - Overall, management sees stability among tenants and does not anticipate significant negative impacts from the macroeconomic environment on tenants' ability to pay rent [43] Other Important Information - The company has a solid pipeline of acquisitions expected to close over the next three years, totaling approximately $169,000,000 [49] - Management is open to evaluating various capital options, including preferred stock, but maintains a bias towards a simple capital structure [35] Q&A Session Summary Question: Additional information on the geriatric psychiatric hospital operator's sale process - Management indicated that they expect to have more certainty regarding buyer interest by the end of Q2 or early Q3 [18] Question: Acquisition outlook and capital allocation - Management confirmed that they are seeing attractive property acquisitions and are evaluating them, but are cautious about raising equity at current prices [22] Question: Clarification on contractual payments with the psychiatric hospital operator - The $3,200,000 is just the rent, with additional payments on notes amounting to approximately $2,500,000 [30][31] Question: Patience regarding the geriatric tenant's lease default - Management stated they are monitoring the situation and will make decisions based on buyer interest, emphasizing that patience is not unlimited [40] Question: Concerns about smaller tenants in the portfolio - Management reported stability across the portfolio and no significant issues with smaller tenants, indicating a positive macroeconomic outlook for healthcare providers [43]