Core Insights - VENU is progressing on its $350 million Sunset Amphitheater project in McKinney, Texas, which aims to redefine the live entertainment landscape through community-integrated entertainment campuses [1][3][16] - The amphitheater will have a capacity of 20,000 seats and is expected to host over 80 shows annually starting in 2026, featuring premier global talent [3][4] - The project is anticipated to generate a local economic impact of $3.8 billion over the next decade [10] Project Details - The Sunset Amphitheater is strategically located near US 75 and the Sam Rayburn Tollway, within a 30-minute drive of nearly 4 million residents and over an hour from almost 10 million people [4] - The venue will operate year-round, accommodating 20,000 attendees in warm months and reconfiguring to seat 5,000 guests in winter with heated flooring and a partially enclosed roof [5] Business Model and Financials - VENU's business model includes Luxe FireSuites, which are expected to provide an 11% cap rate, with $23 million in FireSuite revenue booked in just 60 days, reflecting a 250% year-over-year increase [8][9] - The company has a total pipeline exceeding $5 billion, with $1.3 billion currently under construction across multiple states [7] Strategic Partnerships and Growth - VENU has established partnerships with Tixr, AEG Presents, Aramark, Ryan LLC, and Sands Investment Group, supporting a low-debt, high-leverage growth model [11] - The company aims to build a national network of 40 premium amphitheaters by 2030, with its Ford Amphitheater nominated as Pollstar's Best New Venue of 2024 [17] Market Outlook - The live music industry is projected to grow at a 7.2% compound annual rate through 2030, positioning VENU favorably within this expanding market [14]

Portfolio & Leasing - The portfolio is healthy and stable, with 99.6% leased[11] - Same-store rent growth has averaged 1.4% over the last four quarters[11] - Only 4.9% of ABR is expiring through 2029, with a coverage of 4.0x[11] - The portfolio is diversified, with the top 10 tenants representing just 17.6% of ABR[11] - 93% of cash ABR comes from service-oriented and experience-based tenants, indicating e-commerce resilience[28] Financial Performance & Liquidity - The company raised approximately $119 million of common equity through the ATM Program in 2Q'25[11] - The company settled ~$20 million of forward common equity, leaving ~$507 million of net proceeds available from unsettled forward equity as of June 30, 2025[11] - Proforma Net Debt / Annualized Adjusted EBITDAre is 3.5x at 2Q'25-end[11] - The company has ~$1.3 billion of pro forma liquidity[11] Investment & Capital Recycling - Closed investments of ~$334 million at an initial cash yield of ~7.9%[11] - Closed ~$46 million of dispositions at a 7.3% cash yield[11] Debt Profile - Weighted average debt maturity is 3.8 years, and the weighted average interest rate is 4.2%[11]