Financial Data and Key Metrics Changes - The fourth quarter saw a 5.1% increase in FFO as adjusted per share, reaching $1.30, compared to $1.23 in the prior year [20] - AFFO per share increased by 6.6% to $1.30, up from $1.22 in the previous year [20] - Total revenue for the quarter was $183 million, an increase from $177.2 million in the prior year [22] - For the full year, FFO as adjusted was $5.12 per share, up 5.1% from $4.87, and AFFO was $5.14 per share, a 6.2% increase from $4.84 [24] Business Line Data and Key Metrics Changes - The experiential portfolio, comprising 278 properties, accounted for 94% of total investments and was 99% leased or operated [9] - The education portfolio, with 55 properties, was fully leased at the end of the quarter [9] - Percentage rents and participating interest for the quarter were $7.8 million, up from $4.9 million in the prior year, driven by higher performance from attraction and cultural properties [22] Market Data and Key Metrics Changes - The North American box office grew by 1% in 2025, with a total of $8.7 billion, and Q4 box office was $2.2 billion, down from $2.4 billion in Q4 2024 [10] - The upcoming slate for 2026 includes several major releases expected to drive box office growth [11] Company Strategy and Development Direction - The company plans to increase investment spending significantly in 2026, targeting $400 million to $500 million [18][27] - A focus on diversifying the experiential portfolio, including acquisitions in fitness, wellness, and attractions, is emphasized [17][68] - The company is committed to a disciplined capital recycling program to enhance portfolio quality and reduce concentration [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the earnings trajectory and the strength of the balance sheet, highlighting a robust investment pipeline for 2026 [8][30] - The company anticipates continued growth in box office performance and stable tenant performance across its diversified portfolio [5][11] Other Important Information - The company successfully closed a $550 million public debt offering and established a $400 million at-the-market equity program to enhance financial flexibility [7] - A 5.1% increase in the monthly dividend to common shareholders was announced, reflecting confidence in future earnings [29] Q&A Session Summary Question: Acquisition targets and confidence level - Management indicated strong confidence in achieving the $400 million to $500 million acquisition target, with a focus on various sectors [33][34] Question: Impact of Topgolf's private equity acquisition - Management has had multiple discussions with Topgolf's new owners and is encouraged by their alignment on growth strategies [36][38] Question: Cost of capital and ATM program - Management discussed the current cost of capital and indicated that it is becoming favorable for potential equity issuance [42][43] Question: Updates on Sullivan County ground lease - Management reported no meaningful conversations regarding the ground lease, focusing instead on existing cash flow and dispositions [50][51] Question: Trends in the education portfolio - The strength of the education portfolio has been consistent, with potential for future dispositions to accelerate growth [82][83]

Financial Data and Key Metrics Changes - The company reported a 5.7% increase in FFO as adjusted per share for Q4 2025, reaching $1.30 compared to $1.23 in the prior year [19] - AFFO for Q4 2025 also increased by 6.6% to $1.30 per share, up from $1.22 in the previous year [19] - Total revenue for Q4 was $183 million, an increase from $177.2 million in the prior year, with rental revenue rising by $7.9 million [20] Business Line Data and Key Metrics Changes - The experiential portfolio, which comprises 278 properties, accounted for 94% of total investments and was 99% leased or operated [9] - The education portfolio, consisting of 55 properties, was fully leased at the end of the quarter [9] - The company invested $147.7 million in Q4, all within the experiential portfolio, bringing total investment spending for 2025 to $288.5 million [15] Market Data and Key Metrics Changes - The North American box office grew by 1% in 2025, totaling $8.7 billion, with Q4 box office at $2.2 billion, down from $2.4 billion in Q4 2024 [10] - The company anticipates further growth in the box office for 2026, supported by an increased number of wide release titles [5] Company Strategy and Development Direction - The company plans to increase investment spending significantly in 2026, targeting a range of $400 million to $500 million [17] - A disciplined approach to capital allocation and a focus on experiential assets are central to the company's strategy [7][17] - The company is actively pursuing opportunities across multiple property types, including fitness and wellness, attractions, and eat and play sectors [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the earnings trajectory and announced a 5.1% increase in the monthly dividend to common shareholders [6][28] - The company noted that the bulk of theater rent is not tied to box office fluctuations, indicating stability in revenue [11] - Management highlighted the importance of strong relationships with operators and the potential for growth in the fitness and wellness space [16] Other Important Information - The company successfully closed a $550 million public debt offering and established a $400 million at-the-market equity program to enhance financial flexibility [6] - Disposition proceeds totaled $168.3 million in 2025, with guidance for 2026 set at $25 million to $75 million [18] Q&A Session Summary Question: Can you discuss the $400 million-$500 million in acquisitions? - Management expressed confidence in achieving the acquisition target, indicating a strong pipeline and historical success in meeting and exceeding targets [32][33] Question: What is the impact of Topgolf being taken private? - Management has had multiple conversations with Topgolf's new owners and is encouraged by their alignment on growth strategies and operational improvements [35][36] Question: What is the current cost of capital? - Management indicated that the cost of capital is in the upper 50s to low 60s, and they are entering a zone where it makes sense to tap into the ATM program opportunistically [41][42] Question: Any updates on the Sullivan County ground lease? - Management stated there have been no meaningful conversations regarding the ground lease, and it is not built into their current plans [48][49] Question: What trends are observed in the education portfolio? - The education portfolio has shown strength, and management is considering potential dispositions to capture value [80][81]