Financial Data and Key Metrics Changes - For Q2 2025, total revenue was approximately $54 million and cash NOI was approximately $43 million [11] - Net loss attributable to common shareholders was approximately $265 million or $7.22 per share, primarily due to noncash impairments of approximately $286 million [11] - FFO was approximately $23.9 million or $0.60 per share on a fully diluted basis, while core FFO was approximately $23.8 million or $0.60 per share [12] - Same store cash NOI increased by 6.3% overall, with a 9.3% increase in the industrial segment and a 4.7% increase in the office segment [12] - Total liquidity at quarter end was approximately $356 million, with a cash balance of approximately $264 million [13] Business Line Data and Key Metrics Changes - The industrial outdoor storage (iOS) segment saw an increase in ABR by over 25% since the beginning of the year [9] - The office segment now represents 35% of the net book value of real estate assets, down from a higher percentage as the company divests office properties [10] Market Data and Key Metrics Changes - The company sold seven office properties for $158 million through quarter end and an additional two properties for $24 million after quarter end, totaling $216 million year to date [10] - The company recognized a noncash impairment of approximately $286 million related to 18 office properties, reflecting updated expectations for sale pricing [10] Company Strategy and Development Direction - The company is focused on transforming into an industrial REIT, emphasizing growth in the iOS subsector through acquisitions and leasing while divesting remaining office assets [5] - The strategy includes reducing leverage and aligning the portfolio with higher growth opportunities in the industrial sector [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and ability to execute, highlighting the importance of reshaping the portfolio and reallocating capital to higher growth iOS opportunities [17] - The board approved a dividend of 10 cents per common share for Q3, reflecting the ongoing transition to an exclusively industrial strategy [14] Other Important Information - The company has a significant pipeline for acquisitions in the iOS space, with a focus on markets with strong demand growth and supply constraints [46] - The weighted average interest rate on all debt is approximately 5.47% after recent interest rate swaps [14] Q&A Session Summary Question: Can you provide more insight into the Board's thinking around the dividend? - Management indicated that the dividend aligns with the cash flow characteristics of the industrial outdoor storage segment and reflects the transition to an industrial REIT [18] Question: What is the renewal percentage for iOS leases? - Management noted that there is very little rollover, with only 0.4% vacancy in the operating portfolio, and they expect most tenants to renew their leases [20] Question: What are the cap rates for iOS acquisitions and office sales? - Management did not provide individual cap rates but mentioned that aggregated data is available for analysis [25] Question: How will proceeds from office sales be used? - Management stated that they aim to reduce leverage below six times debt to EBITDA while remaining active in the acquisition market [29] Question: Has competition increased in the iOS space? - Management confirmed that the market is active with increased capital for iOS, but their experience and national portfolio provide a competitive advantage [33] Question: What triggered the impairment this quarter? - The impairment was driven by the acceleration of sales and a shorter anticipated hold period, necessitating a fair value calculation [39] Question: What is currently in the iOS pipeline? - Management refrained from disclosing specific details but confirmed a sufficient pipeline with opportunities in markets with strong demand and supply constraints [45]