Financial Data and Key Metrics Changes - Rental income for Q1 2025 was $11.7 million, a 2% decrease from $11.9 million in the prior year period, attributed to the disposition of two properties with expiring leases [14] - Adjusted funds from operations (AFFO) increased by 18% to $3.9 million compared to $3.3 million in the year-ago quarter, primarily due to a $195,000 increase in cash rental income and a $200,000 decrease in cash interest expense [15] - AFFO per diluted share rose to $0.33, up from $0.29 in the previous year, reflecting an increase in the weighted average number of fully diluted common shares outstanding [15] Business Line Data and Key Metrics Changes - The portfolio consists of 43 properties with an attractive weighted average lease term of 14.2 years, with 39 industrial properties representing 80% of annualized base rent (ABR) [16][17] - Annualized base rent totals $39.4 million as of March 31, 2025, with approximately 30% of tenants or their parent companies having an investment-grade credit rating [17] Market Data and Key Metrics Changes - Total cash and cash equivalents were $6.2 million, with $280 million of debt outstanding, consisting of $31 million in mortgages and $250 million in borrowings on a credit facility [17] - The company has no debt maturities until January 2027, and 100% of its indebtedness as of March 31, 2025, is held at a fixed interest rate of 4.27% [17] Company Strategy and Development Direction - The company is focused on risk management and is being highly disciplined in its acquisition strategy, indicating a preference for compelling opportunities rather than pursuing growth for growth's sake [20][24] - Management is exploring equity deals and is open to capital recycling opportunities, particularly for non-core properties [99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the portfolio and the performance of tenants, despite market volatility and uncertainty [10][35] - The company is monitoring geopolitical risks and interest rate fluctuations, indicating a cautious but optimistic outlook for the future [37][38] Other Important Information - The Board of Directors declared a cash dividend of $0.09 per share for April, May, and June 2025, representing an annualized dividend rate of $1.17 per share, yielding 8% based on the closing price of $14.58 [18] - The company has reduced its headcount from 12 to 9 employees, which is expected to lower general and administrative expenses in future quarters [16] Q&A Session Summary Question: Can you talk about the cap rates that you're seeing on deals? - Management noted that cap rates are currently tighter than in previous quarters, with a sweet spot between 7.5% to 8.25%, and emphasized the importance of compelling assets rather than marginal ones [47][49] Question: Were you considering doing deals under the ATM when shares were in the $16 range? - Management indicated that they were in a blackout period and missed opportunities but are constantly evaluating the market for potential equity issuance [54][56] Question: Any update on the sale of the Costco property? - Management confirmed ongoing discussions with the buyer, KB Home, and indicated that the process is moving forward as planned [75][77] Question: What is the trend for stock compensation expense? - Management projected a run rate of about $800,000 per quarter for stock compensation, indicating stability in this line item moving forward [69][71] Question: Any expectations for the sale of the solar turbine property? - Management is optimistic about the timeline for the solar property, expecting to market it to an owner-user once the tenant vacates [80]