Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $373.5 million, a decrease of $10.8 million or 2.8% compared to Q4 2024, primarily due to decreases in attendance and admission per capita, partially offset by an increase in in-park per capita spending [27] - For fiscal 2025, total revenue was $1.66 billion, a decrease of $62.7 million or 3.6%, with total attendance down 1.8% to 21.2 million guests [29] - Net income for Q4 2025 was $15.1 million, down from $27.9 million in Q4 2024, while Adjusted EBITDA was $115.2 million [28] Business Line Data and Key Metrics Changes - Attendance for Q4 2025 decreased by approximately 126,000 guests or 2.6%, primarily due to a decrease in international visitation [27] - In-park per capita spending increased by 2.1%, while admission per capita decreased by 2.2% [28] Market Data and Key Metrics Changes - The company reported a strong balance sheet with a net total leverage ratio of 3.4 times and approximately $789 million of total available liquidity as of December 31, 2025 [29][30] - Deferred revenue balance as of December 31, 2025, was $143.3 million, a decrease of 4.7% compared to the prior year [30] Company Strategy and Development Direction - The company plans to address cost management issues and has updated its plans for 2026, focusing on new attractions, events, and enhanced marketing strategies to drive attendance and guest spending [5][8] - The company sees significant upside in its sponsorship business, projecting it as a $30 million plus revenue opportunity in the coming years [8][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fiscal 2025 results did not meet expectations due to uneven consumer environments and negative international tourism trends [4] - The company is optimistic about 2026, citing advanced booking revenue for Discovery Cove up in the high single digits and group booking revenue pacing up over 50% [8] Other Important Information - The company received numerous industry accolades in 2025, including SeaWorld Orlando being voted as the number 3 best amusement park in the nation [9] - The company has a strong focus on capital spending, with approximately $220 million spent in 2025, consistent with future spending expectations [14] Q&A Session Summary Question: How does the company view attendance growth for 2026? - Management expressed optimism about the new attraction and event lineup, which they believe will drive attendance growth despite international headwinds [35][36] Question: What is the company's stance on leverage and capital deployment? - Management stated they are comfortable with their current leverage ratio and will work closely with the board on cash deployment decisions [39] Question: What is the company's approach to cost management and expected savings? - Management acknowledged that cost performance was not optimal in 2025 and emphasized a renewed focus on cost management for 2026, targeting $50 million in gross cost reductions [46][48] Question: Can you provide details on early demand indicators for 2026? - Management highlighted positive trends in Discovery Cove reservations and group bookings as early indicators of demand for 2026 [59] Question: How does the company view the impact of Epic Universe on Orlando trends? - Management believes that Epic Universe will attract more visitors to Orlando, benefiting their parks through increased attendance [81]

PSU Banks - PSU banks are trading at attractive valuations of 1-1.5x book value, with earnings growth projected at 12-20% annually, creating reasonable valuations for investors [1][19] - The potential for rerating from 1x to 1.5x book value depends on maintaining growth quality and the ability to monetize real estate through REITs, which can unlock tier I capital without government recapitalization [3][7][19] - Government ownership in PSU banks has decreased below 75%, alleviating concerns about future dilution from government stake sales, which supports the rerating thesis [8][19] Private Sector Banks - Mid-level and larger private sector banks are also seen as having potential for good returns as credit growth returns to healthy levels of around 15%, despite their unimpressive historical performance [2][22] - Investors are encouraged to evaluate both public and private banks based on growth quality, asset quality maintenance, and valuation rather than making reflexive choices [23] Real Estate Monetization - The budget provision allowing CPSEs to monetize owned properties through REITs represents a significant opportunity for PSU banks to convert undervalued assets into tier I capital [4][6][7] - Many PSU banks hold real estate purchased decades ago at historical book prices, and divesting these assets can fund growth without requiring government support [6][7] Structural Growth Themes - The semiconductor and electronics manufacturing services (EMS) sectors are identified as having strong long-term growth prospects, with current capital expenditures expected to translate into revenues by 2027 [20][24] - High-tech manufacturing is anticipated to benefit from budget changes and trade deals, creating opportunities in capital expenditure-oriented plays initially, followed by manufacturing companies [20][24] - The electrical transmission ecosystem is poised for substantial gains due to increased government focus on energy production, necessitating investments in transmission and management infrastructure [14][15][25] Rare Earth Investments - The rare earth sector is highlighted as a strategic area for investment, with tax incentives creating potential for high-yield investments over a five to six-year horizon [17][21][25] - Investors are advised to monitor developments in this sector closely, as it holds strategic importance given global supply chain concerns [25]

Core Viewpoint - Land & Buildings Investment Management believes that monetizing Six Flags' real estate while simultaneously driving an operational turnaround could significantly increase the company's share price, potentially unlocking up to $6 billion in real estate value [1][3]. Group 1: Current Financial Situation - Six Flags' stock has dropped over 50% year-to-date, trading at a low EBITDA multiple of 7x due to merger challenges and poor weather conditions [2]. - The company is currently experiencing record short interest, indicating negative market sentiment [2]. Group 2: Strategic Recommendations - The company sees a generational opportunity to invest in Six Flags before a potential re-rating, emphasizing the importance of monetizing real estate to deliver immediate shareholder gains while allowing for operational recovery [3]. - A separation of the real estate and operating business (OpCo/PropCo) could unlock substantial value, with estimates suggesting a potential 75% upside based on 2026 consensus estimates [6]. Group 3: Historical Engagement and Performance - Previous engagement by Land & Buildings in December 2022 highlighted a potential 50% upside through real estate monetization, which led to a 45% increase in shares shortly after [4]. - Following the August 2023 engagement, the company noted that shares were trading at a 12.5% EBITDA yield, while real estate could trade at a 7.5-8% yield, indicating a significant valuation gap [5]. Group 4: Valuation Insights - The estimated net asset value per share is $39.26, compared to the current share price of $22.11, indicating a potential 78% upside [9]. - The real estate value is estimated at approximately $5.67 billion, with a significant portion of the real estate being REIT-able [9]. Group 5: Future Outlook - The company believes that the issues affecting earnings are mostly self-inflicted and transitory, suggesting a clear path for improved performance in the coming year [8]. - There is potential for multiple bidders interested in acquiring Six Flags' real estate, which could further enhance shareholder value [10].