international markets are outperformance, I should say continue into the second half. Well joining us now is Cromwell Darwin, the head of emerging markets portfolio management team at Pimco. It's great to have you back on.Let's start right there. Does outperformance continue. >> Yeah, we think we think it does, Morgan.And we think the outsized gains in emerging market equities and fixed income, as well as the non-dollar, European equities and fixed income were set to continue into the second half of the yea ...

Core Viewpoint - BXP, Inc. has seen a significant stock price increase of 10.3% over the past month, outperforming both the Zacks REIT and Equity Trust - Other industry and the S&P 500 composite [1][9] Group 1: Company Performance - BXP's portfolio consists of premier office assets in high-rent, high-barrier-to-entry markets, allowing for stable rental revenues even during economic downturns [2] - The company executed 91 leases totaling approximately 1.1 million square feet in Q1 2025, a 25% increase year over year, with total leasing volume reaching nearly 1.4 million square feet by April 29, 2025 [6][9] - Management anticipates occupancy rates to stabilize between 86.5% and 88% in 2025, with an estimated occupancy rate of 86.9% [7] Group 2: Tenant and Market Dynamics - BXP's tenant roster includes industry leaders, with a weighted average remaining lease term of 9.3 years for its 20 largest clients, ensuring stable cash flows [8] - The company is converting office buildings to laboratory/life science spaces in response to strong demand from life-science tenants, with two projects under development totaling 0.9 million RSF and an estimated investment of $675.1 million [8] Group 3: Capital Management and Development - BXP has executed a capital reallocation strategy, acquiring properties worth $7.6 billion and disposing of $8.2 billion in non-core assets since 2010, reflecting prudent capital management [11] - The company has a development pipeline of nine projects with an estimated total investment of around $2.26 billion, expected to add approximately $158 million to its share of NOI cash upon stabilization [12] Group 4: Market Challenges - The current economic environment, characterized by elevated interest rates and geopolitical concerns, is causing companies to delay leasing decisions, which may impact BXP's ability to retain tenants at higher rents [13][20] - Management expects a slight decline in occupancy during the first half of 2025 due to larger lease expirations [14] Group 5: Valuation Metrics - BXP is currently trading at a forward 12-month price-to-FFO of 10.26X, which is below the industry average of 15.59X and lower than peers like SL Green Realty Corp. and Vornado Realty Trust [18][19] - Despite trading at a discount compared to industry peers, the valuation disparity may not be as favorable as it appears [19] Group 6: Future Outlook - Strong demand for top-tier office space and BXP's ability to deliver quality offerings are expected to support leasing momentum and rental rate increases [20] - However, macroeconomic uncertainties may lead to cautious leasing decisions from businesses, impacting BXP's near-term performance [21]

Core Insights - BXP Inc. (BXP) shares have increased by 11.3% over the past month, significantly outperforming the industry growth of 0.7% [1] - The company has a strong portfolio of Class A office assets in select U.S. markets, driven by healthy tenant demand and rental growth [1] Leasing Activity - In Q1 2025, BXP signed over 1.1 million square feet of leases, a 25% increase year over year, with an additional 270,000 square feet signed post-quarter, totaling nearly 1.4 million square feet [2][7] Growth Drivers - BXP is positioned to benefit from rising demand for high-quality office spaces, particularly from technology and life science sectors, with ongoing conversions of office buildings to lab spaces [3] - The company has two life-science projects under development, covering 0.9 million RSF with an estimated investment of $675.1 million, and is 71% pre-leased [3] Market Conditions - The return-to-office policies and low unemployment rates are expected to boost demand for BXP's high-quality office properties, which include tenants like Salesforce, Google, and Microsoft [4] - Long-term leases with financially stable tenants ensure consistent cash flows for the company [4] Capital Management - BXP has executed a capital reallocation strategy, acquiring properties worth $7.6 billion and disposing of assets for $8.2 billion since 2010, reflecting prudent capital management [5] - The company has a robust development pipeline with nine projects underway, estimated to require around $2.26 billion in total investment, projected to add approximately $158 million to net operating income upon stabilization [8] Financial Position - As of Q1 2025, BXP had cash and cash equivalents of $398.1 million, with a net debt to EBITDAre ratio of 8.33X and a fixed charge coverage ratio of 2.38 [9] - The company's solid financial position and capital management practices position it well to navigate economic uncertainties [9]

Financial Data and Key Metrics Changes - Net income for the first quarter of 2025 was $238 million, with adjusted EBITDA at $544 million, reflecting strong phosphate prices and improving potash prices [9][10] - First quarter realized prices were $623 per ton for phosphate and $223 per ton for potash, exceeding guidance ranges [10][11] - Free cash flow generation was constrained by typical working capital seasonality, with expected CapEx of $1.2 billion to $1.3 billion for the year [21][40] Business Line Data and Key Metrics Changes - Phosphate production was 1.4 million tons in Q1 2025, with a production volume outlook maintained at 7.2 million to 7.6 million tons for the year [15][16] - Potash production cash cost per ton was $78, up from $72 in the prior year quarter, with expectations for costs to decline as production increases [33][34] - Mosaic Biosciences revenue more than doubled year-over-year, driven by strong sales of existing products and new product launches [18][19] Market Data and Key Metrics Changes - Global fertilizer demand remains strong, with robust demand in Brazil and a projected increase in shipments to exceed 47 million tons [24][25] - Phosphate demand is driven by rising lithium iron phosphate production in China, which grew 55% in Q1 2025 [12][13] - The North American spring season is expected to see typical demand for both phosphate and potash, with limited channel inventory remaining [22] Company Strategy and Development Direction - The company is focused on normalizing phosphate production and operating costs, with a strategic emphasis on capital reallocation and shedding non-core assets [6][8] - Mosaic's expansive market access, particularly in Brazil, positions the company well for growth amid geopolitical tensions [12][16] - The company anticipates significant opportunities for growth in new markets and products, particularly through its Mosaic Biosciences division [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term market fundamentals, despite uncertainties in global trade policies [6][12] - The company expects further improvements in segment profitability in Q2 2025, driven by seasonal demand increases [16][37] - Management highlighted the importance of maintaining cost discipline and improving asset reliability to enhance operational performance [13][14] Other Important Information - The company is on track to achieve its full-year unit cost targets, with expectations for cash flow generation to improve in the remainder of the year [16][40] - The capital reallocation program is progressing, with discussions on non-core potash assets accelerating [41] Q&A Session Summary Question: Assessment of Bartow, New Wales, and Riverview operations - Management indicated that the assessment remains similar to previous evaluations, with ongoing reliability enhancement projects paying off [45][46][50] Question: Impact of tariffs on ammonia supply - Management confirmed that current ammonia purchases have not incurred tariff impacts, with most supply coming from exempt sources [52][54] Question: Phosphate pricing and maintenance costs - Management acknowledged extraordinary maintenance costs but expects conversion costs to decline as production normalizes [60][64] Question: Potash market dynamics and Belarusian shipments - Management noted that while Belarusian shipments have not decreased, production cuts from other regions are expected to support pricing [66][68] Question: Cost of production cadence for potash - Management anticipates significant improvements in cash costs as low-cost production ramps up in the latter half of the year [71][73] Question: Mosaic's role in supply and demand dynamics - Management indicated that increased production will still align with tight supply-demand balances, particularly in phosphates [76][80] Question: Cash flow and working capital expectations - Management expects improved cash flow generation, with incremental EBITDA translating into cash flows despite working capital increases [89][92] Question: Mosaic Biosciences growth and strategy - Management outlined plans for significant revenue growth in Mosaic Biosciences, with a focus on proprietary products and market expansion [95][102]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $238 million, with adjusted EBITDA at $544 million, reflecting strong phosphate prices and improving potash prices [7][8] - First quarter realized prices were $623 per ton for phosphate and $223 per ton for potash, exceeding guidance ranges [8][9] - Free cash flow generation was constrained by typical working capital seasonality, with expected CapEx of $1.2 billion to $1.3 billion for the year [19][39] Business Line Data and Key Metrics Changes - Phosphate production was 1.4 million tons in Q1 2025, with a production volume outlook maintained at 7.2 million to 7.6 million tons for the year [13] - Potash production cash cost per ton was $78, up from $72 in the prior year, with expectations for costs to decline as production increases [32][33] - Mosaic Biosciences revenue more than doubled year-over-year, driven by strong sales of existing products and new product launches [15][16] Market Data and Key Metrics Changes - Global fertilizer demand remains strong, with solid ag commodity fundamentals despite geopolitical uncertainties [5][20] - Brazilian growers are benefiting from favorable economics, with NP and K shipments expected to exceed 47 million tons [22] - Phosphate demand is driven by rising lithium iron phosphate production in China, which grew 55% in Q1 2025 [11][24] Company Strategy and Development Direction - The company is focused on normalizing phosphate production and operating costs, with a strategic advantage in market access, particularly in Brazil [6][10] - Ongoing efforts to shed non-core assets and reallocate capital are in progress, with a commitment to return excess capital to shareholders [18][19] - The company anticipates significant growth opportunities in new markets and products, leveraging its expansive footprint in Brazil [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating geopolitical dynamics and highlighted the long-term constructive market fundamentals [10][42] - The outlook for Q2 2025 is positive, with expectations for improved earnings and segment profitability [14][42] - Management noted that while there may be headwinds in the second half of the year, the overall market remains tight and supportive [21][24] Other Important Information - The company is investing in production enhancements, including a hydrofloat project expected to increase potash production volumes [12][32] - The impact of foreign exchange variations on earnings was noted, with a negative effect of $18 million in Q1 [33] - The company is closely monitoring the affordability of fertilizers in the U.S. market and its implications for demand [81] Q&A Session Summary Question: Assessment of Bartow, New Wales, and Riverview operations - Management indicated that the assessment remains similar, with ongoing reliability enhancement projects paying off [44][46][49] Question: Impact of tariffs on ammonia supply - Management confirmed that current ammonia purchases have not incurred tariff impacts, with most supply coming from exempt sources [51][52] Question: Phosphate pricing and maintenance costs - Management acknowledged extraordinary maintenance costs but expects them to normalize as production increases [57][60] Question: Potash market dynamics and Belarusian shipments - Management noted that while Belarusian shipments have not decreased, production cuts from other regions are expected to support pricing [67][68] Question: Cost of production for potash - Management expects significant improvements in potash production costs as low-cost tons come into the marketplace [71][74] Question: Mosaic's role in supply and demand dynamics - Management indicated that supply constraints will continue to support pricing, with strong demand anticipated in India [78][80] Question: Cash flow and working capital expectations - Management expects cash flow generation to improve, with incremental EBITDA contributing positively despite working capital increases [90][92] Question: Mosaic Biosciences growth and profitability - Management highlighted strong growth projections for Mosaic Biosciences, with a focus on product development and market access [96][100]

Core Viewpoint - Caledonia Mining Corporation has successfully completed the sale of its solar plant in Zimbabwe for $22.35 million, allowing the company to strengthen its cash position and focus on its core gold mining operations [1][5][6]. Financial Summary - The sale of the solar plant was finalized on April 11, 2025, with a pre-tax cash consideration of $22.35 million [1]. - Prior to the sale, Caledonia's consolidated net debt was $3.8 million, down from $8.7 million at the end of 2024. After the sale, the pro forma consolidated net cash balance is projected to be $18.6 million [4]. Operational Impact - The solar plant, which has been operational since February 2023, has generated over 57,722 MWh of power and will continue to supply energy to Blanket Mine under an exclusive power purchase agreement [3][6]. - The sale aligns with Caledonia's strategy to focus on gold mining while ensuring that Blanket Mine retains access to renewable energy, meeting approximately 20% of its daily electricity needs [2][6]. Strategic Context - The decision to sell the solar plant was made following a competitive bidding process, allowing Caledonia to reallocate capital towards growth initiatives in its core business [2]. - The construction of the solar plant was initially financed through a share offering that raised $13 million in 2020 [3].