Financial Data and Key Metrics Changes - The second quarter net revenue was $513.3 million, up 6.2% from the prior year [8] - Adjusted EBITDA was $239.4 million, up 7.3% from the prior year, with an adjusted EBITDA margin of 46.7%, an increase of 47 basis points [8] - Consolidated net revenue, including $10 million from the North Fork project, was $526.3 million, up 8.2% from the prior year [8] - Adjusted EBITDA on a consolidated basis was $229.4 million, up 13.7% from the prior year, with an adjusted EBITDA margin of 43.6%, an increase of 212 basis points [9] - The company generated $124.3 million in operating free cash flow, bringing year-to-date cumulative free cash flow to $217.3 million [9] Business Line Data and Key Metrics Changes - The gaming segment achieved the highest revenue and profitability in the company's history, driven by strong visitation and spend per visit [10] - The hotel division recorded its highest second quarter revenue and profit, supported by increased average daily rate (ADR) and occupancy [10] - The food and beverage division also achieved near-record results, benefiting from higher cover counts across outlets [10] - Group Sales and Catering delivered near-record second quarter revenue and profit, with positive momentum expected to continue [11] Market Data and Key Metrics Changes - The Las Vegas locals market showed continued strength, with the company focusing on core local guests while also attracting regional and national customers [9] - The opening of the Durango Casino Resort added over 108,000 new customers to the database, expanding the Las Vegas locals market [5] Company Strategy and Development Direction - The company is focused on reinvesting in existing properties to enhance amenities and deliver best-in-class customer service while returning capital to shareholders [7] - Significant investments are being made in the Durango Casino Resort, Sunset Station, and Green Valley Ranch properties [13][16] - The company is strategically positioned with over 450 acres of developable land in desirable locations throughout the Las Vegas Valley, supporting long-term growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and long-term growth prospects, despite expected seasonal visitation patterns and construction disruptions [11] - The company anticipates full revenue recovery over the next couple of years, supported by strong demographic growth in the Las Vegas Valley [6] - Management highlighted the positive impact of tax legislation on discretionary income for customers, which is expected to benefit the company [38][41] Other Important Information - The company declared a regular cash dividend of $0.25 per Class A common share and a special dividend of $1 per Class A common share [19] - Total distributions to LLC unitholders were approximately $200.3 million, including share repurchases totaling $31 million [12] Q&A Session Summary Question: Can you unpack where you're finding incremental operating leverage and any impact from renovations on EBITDA? - Management noted strength across all business lines, with the best table and slot hold in company history and record hotel revenue and profitability [24] Question: What is the timeline for construction disruption? - Management indicated that the bulk of disruption is expected in Q3 and Q4, with some impacts already seen at Green Valley [32][34] Question: How are new customer sign-ups performing, especially in light of the Strip's slowdown? - Management reported strong positive performance across all segments, with significant growth in new sign-ups, particularly from the Durango property [47] Question: What is the expected impact of tax relief on the locals market? - Management expects the tax legislation to enhance discretionary income for customers, benefiting the company [38] Question: What are the expectations for group bookings in Q4 and 2026? - Management reported positive forward bookings with mid-twenty percent increases in group sales [53] Question: How is the company insulated from hotel rate compression seen on the Strip? - Management explained that while they remain competitive, hotel revenue only represents about 10% of overall revenue, with the majority coming from gaming [61] Question: What is the ideal leverage range for the company moving forward? - Management expressed comfort with the current leverage position, supported by a flexible credit agreement and no near-term debt maturities [101]

Investment Rating - The report highlights a "Buy" rating for seven selected stocks within the property value chain, indicating a positive outlook for these companies as they are well-positioned to benefit from recovering housing upgrade needs and building renovation demand [3][34]. Core Insights - The property value chain is expected to see a significant shift towards domestic demand, driven by potential policy support aimed at mitigating external uncertainties. This shift is projected to create a total addressable market (TAM) of Rmb5.7 trillion by 2035, representing a 70% increase compared to 2024 [3][34]. - The report anticipates an average 5% compound annual growth rate (CAGR) in topline revenue for the property value chain companies through 2035, with a notable improvement in profitability and dividend yields due to operational efficiencies and disciplined capital expenditures [5][34]. Summary by Sections Property Value Chain Stocks - The report identifies seven stocks (CRL, Yuhong, BNBM, Kinlong, Robam, KE, and Greentown Service) as beneficiaries of domestic stimulus, all rated as "Buy" [3][34][18]. Executive Summary - The property construction value chain, which constitutes approximately 30% of China's GDP, has faced challenges due to the downturn. However, potential policy support for domestic demand is expected to accelerate housing upgrades and boost secondary market transactions [29][34]. Implications for the Value Chain - The report outlines three main implications for the value chain: a decline in demand for building products, a consolidation of the developer industry, and a significant shift towards secondary market transactions, which are projected to account for 66% of total housing transactions by 2035 [31][32][51]. Housing Market Outlook - By 2035, housing demand is expected to be 40% below peak levels, with a significant portion coming from Tier-1 and Tier-2 cities. The secondary market is projected to overtake the primary market in terms of transaction volume and value [42][51]. Renovation Demand - Renovation demand is anticipated to nearly double by 2035, contributing approximately 60% of total construction gross floor area (GFA), which will help offset the decline in new builds [54][36].