Financial Data and Key Metrics Changes - Net Asset Value (NAV) increased by $252 million from the first quarter, primarily driven by positive performance in CVI, offset by decreases in auto service [5] - The investment funds ended down approximately 0.5% for the quarter, primarily driven by gains in the consumer cyclical sector, offset by broad market and refining hedges [6] - The holding company ended the quarter with $1.1 billion in cash and cash equivalents, and an additional $700 million of cash at the funds [10] Business Line Data and Key Metrics Changes - Energy segment consolidated EBITDA was negative $24 million for Q2 2025 compared to $103 million in Q2 2024, negatively impacted by unfavorable RINs valuation and reduced throughput volumes [14] - Automotive service revenues decreased by $8 million compared to the prior year quarter, but same-store revenues improved from a 5% decline to 1% growth in May and June [15] - Real estate's Q2 2025 adjusted EBITDA decreased by $2 million compared to the prior year quarter, following the sale of a successful country club investment [17] - Food packaging's adjusted EBITDA decreased by $9 million for Q2 2025 due to lower volume and higher manufacturing inefficiencies [18] Market Data and Key Metrics Changes - CVI's share price increased by 38%, contributing to a $561 million increase in NAV from the first quarter [5] - The auto service division showed a positive trajectory in revenue growth, indicating a potential turnaround [15] Company Strategy and Development Direction - The company is focusing on maintaining liquidity to capitalize on opportunities within and outside existing operating segments, with a total liquidity of $3.5 billion at the holding company and $1.1 billion at subsidiaries [19] - The company plans to redeploy capital from the successful country club sale to new opportunities, aiming to replicate past successes [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of outstanding litigation related to small refinery exemptions, which could remove a $548 million liability [6] - The company sees considerable value creation potential in its portfolio, particularly in electric utilities and digital businesses [11][12] Other Important Information - CVI's CEO, Dave Lamp, will retire at year-end, with Mark Pytosh being promoted as his replacement [6] - The Board maintained the quarterly distribution at $0.50 per depositary unit [10] Q&A Session Summary Question: Regarding the decrease in cash balance at the holding company level - The decrease was primarily due to interest payments and LP distributions, with some impact from the CVR repurchase of about $32 million [21]

Financial Data and Key Metrics Changes - The company reported AFFO per share of $0.44, which is up 2.8% from Q2 last year [23] - Rental income for Q2 was $64.5 million, representing growth of over 11% compared to the previous year [23] - Cash G&A expense, excluding stock-based compensation, was $4.4 million, representing 6.9% of cash rental income for the quarter, down from 7.4% in the same quarter last year [24] Business Line Data and Key Metrics Changes - In Q2, the company acquired 24 properties for $84 million at a blended cap rate of 6.7% [14] - The automotive sector accounted for 68% of total acquisition volume, indicating a strong focus on this area [14] - The company has diversified its portfolio, with 34% of rent now coming from sectors outside casual dining [10] Market Data and Key Metrics Changes - The company reported a rent coverage ratio of five times for the majority of its portfolio, one of the strongest in the net lease industry [8] - The average age of passenger vehicles in the U.S. is now at a record 14 years, which is expected to drive demand for automotive services [16] Company Strategy and Development Direction - The company aims to maintain a defensive portfolio focused on central retail and services, which are seen as tariff resistant [11] - The strategy includes modulating acquisitions based on cost of capital, with a focus on high-quality assets [6][7] - The company is committed to maintaining a strong balance sheet, with a net debt to adjusted EBITDAre ratio of 4.5 times [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience, highlighting a strong track record with low bad debt expense [65] - The company is well-positioned to execute its strategy regardless of near-term market conditions, with significant liquidity available for acquisitions [65] Other Important Information - The company has raised nearly $505 million in equity over the last twelve months, providing significant capacity for acquisitions [20] - The portfolio occupancy remains strong at 99.4%, with 99.8% of base rent collected for Q2 [25] Q&A Session Summary Question: Inquiry about acquisition team capacity - Management indicated that the team is appropriately staffed and has the capacity to do more acquisitions if favorable pricing is available [29] Question: Impact of cap rate changes on acquisition opportunities - A 25 basis point decrease in cap rates could potentially increase acquisition volume by $100 million to $200 million [31] Question: Darden exposure and acquisition strategy - Management confirmed that while they have diversified Darden exposure, they will still acquire Darden-related assets if the pricing is favorable [33] Question: Deal flow and competitive landscape - Management noted that deal flow has been consistent, but pricing remains a key factor in determining acquisition activity [48] Question: Outlook for veterinary retail property acquisitions - Management expressed interest in the veterinary retail space, indicating potential for more deals in the future [61]