Financial Data and Key Metrics Changes - The company generated total revenues of $71.7 million, a 6.5% decrease from the previous quarter, primarily due to tenant defaults [14][15] - Adjusted funds from operations (AFFO) for the first quarter were $55.3 million, or $1.94 per share, reflecting a 13% decrease compared to the fourth quarter of 2024 [15][16] - The balance sheet remained solid with $2.6 billion in gross assets, nearly $2.2 billion of which are unencumbered [15][16] Business Line Data and Key Metrics Changes - The company acquired a $7.8 million industrial facility in Maryland and executed two new leases totaling 211,000 square feet [4][12] - A cultivation facility in Michigan was sold for $9 million, demonstrating the company's focus on strategic investments and capital recycling [4][12] Market Data and Key Metrics Changes - The U.S. cannabis sales are forecasted to grow by 7% to $33.5 billion in 2025, with a projected compounded annual growth rate of 7.2% from 2024 to 2029, reaching $44.4 billion by 2029 [10][11] - The company is facing competition from the illicit market, price compression, and market maturity, which may impact investor sentiment and operator performance [11] Company Strategy and Development Direction - The company is proactively working to refresh its tenant base to position itself for sustainable growth and financial performance [6][10] - A strategic initiative was announced to strengthen tenant credit profiles and optimize occupancy across the portfolio [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the ongoing uncertainty in the macroeconomic environment and the regulated cannabis market [3][4] - The management team is optimistic about the opportunities ahead and believes they are effectively managing complex situations to protect shareholder value [7][10] Other Important Information - The company repurchased $20 million of its common stock and retired nearly $9 million of debt at a discount, highlighting a disciplined approach to capital allocation [5][16] - Default notices were issued to several tenants, and the company is actively pursuing legal remedies to enhance the performance of its real estate portfolio [8][9] Q&A Session Summary Question: Is the 205,000 square feet leased in Michigan a PharmaCann facility? - Yes, it is a PharmaCann facility, and the company is proud of re-tenanting it quickly with a high-quality tenant [19] Question: How did the recent large block leasing transactions come together? - The sourcing of tenants comes from various methods, leveraging strong relationships and networking in the industry [24] Question: Are there any other tenants of concern since the tenant refresh program was announced? - The company is monitoring all tenants and is confident in managing the portfolio, although the macro environment remains challenging [29] Question: What is the impact of security deposits on revenue moving forward? - Approximately $5.8 million of security deposits were applied for the quarter, which will not be available in subsequent quarters [37] Question: How does the company ensure compliance when taking possession of properties? - The company utilizes management service agreements to facilitate transitions and ensure compliance with regulations [46] Question: What are the potential opportunities for deploying liquidity? - The company is evaluating various opportunities and remains focused on investments that can provide accretive returns based on their cost of capital [58]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $53.2 million, a 33% sequential increase from $40 million in Q3 2024 [21] - Full year 2024 total revenue was $187.9 million, down from $309.5 million in 2023, primarily due to decreased utilization in well completion services [21][22] - Net loss for Q4 2024 was $15.5 million, or a loss of $0.32 per diluted share, while the full year net loss was $207.3 million, or a loss of $4.31 per diluted share [27] - Adjusted EBITDA for Q4 2024 was a negative $4.8 million, improving from a negative $6.4 million in Q3 2024 [28] Business Line Data and Key Metrics Changes - Infrastructure services revenue for Q4 2024 was $27.9 million, slightly up from $26 million in Q3 2024, with full year revenue flat at $110.4 million compared to $110.5 million in 2023 [23] - Well completion services generated $15.8 million in Q4 2024, with an average of 1.1 fleets utilized [25] - Sand division sold 129,000 tons of sand in Q4 2024 at an average price of $22.54 per ton, down from 163,000 tons at $22.89 in Q3 2024 [26] Market Data and Key Metrics Changes - The company noted improved pressure pumping utilization and strong demand across various businesses, including engineering, fiber, and T&D services [10] - There are significant bidding opportunities in the market related to engineering fiber transmission and distribution [14] Company Strategy and Development Direction - The company aims to unlock value for shareholders while maintaining a strong balance sheet and evaluating strategic opportunities for accretive assets [11][12] - Strategic investments are being made to add equipment and crews in response to growing utility demand [15] - The focus for 2025 includes organic growth, particularly in infrastructure services, with potential for acquisitions if beneficial [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand implications for natural gas driven by LNG export capacity and electricity demand [22] - The company expects steady completions activity in 2025 with potential upside from natural gas demand [17] - Management emphasized disciplined capital stewardship and alignment of spending with customer demand [26] Other Important Information - The company had unrestricted cash of $61 million as of December 31, 2024, with total liquidity remaining strong and debt-free [32] - CapEx for Q4 2024 was approximately $6.1 million, with a budget of $12 million for 2025 focused on growth and maintenance [29] Q&A Session Summary Question: Where is the best growth potential for the infrastructure business? - Management indicated that most growth is currently organic, with increased demand from larger IOUs and potential for co-op involvement [38] Question: Can you provide details on the rental business and its growth drivers? - The rental business primarily serves E&P companies, with opportunities in the construction market and a broad portfolio of assets including helicopters [42] Question: What is the outlook for the sand business in 2025? - Management noted stabilized demand and the ability to expand capacity as key drivers for growth in the sand business [44] Question: Can you break down the CapEx outlook for 2025? - Approximately half of the $12 million CapEx budget is allocated to growing the rental business, with about $5 million for pressure pumping upgrades [46] Question: What are the primary focuses for the company moving forward? - The focus includes rightsizing the company, evaluating existing businesses, and exploring potential acquisitions now that the company has cash available [48]