Financial Data and Key Metrics Changes - At the end of Q1 2025, net income attributable to common shareholders was $2.1 million or $0.03 per share, compared to $800,000 or $0.01 per share in Q1 2024 [4][17] - FFO attributable to common shareholders and non-controlling interest was $14.8 million or $0.20 per share in Q1 2025, down from $14.9 million or $0.21 per share in Q1 2024 [5][17] - AFFO attributable to common stockholders and non-controlling interest was $16 million or $0.22 per share in Q1 2025, down from $16.5 million or $0.23 per share in Q1 2024 [5][17] - Total revenues decreased by approximately 1.4% to $34.6 million in Q1 2025 compared to the prior year quarter [14] Business Line Data and Key Metrics Changes - The portfolio occupancy rate was 95.6% with a weighted average lease term of 5.6 years and a rent coverage ratio of 4.4 times [4][14] - The company completed the acquisition of a five-property portfolio for $69.6 million at a 9% cap rate, with an aggregate annualized base rent of $6.3 million [5][9] Market Data and Key Metrics Changes - The company reported a gross investment in real estate of $1.5 billion, with total leasable square feet of 4.9 million [14][20] - The weighted average interest rate on total gross debt was 3.84% with a leverage ratio of 46.1% [21] Company Strategy and Development Direction - The company is focused on maintaining a high-quality diversified portfolio and is actively pursuing acquisition opportunities while remaining disciplined in its strategy [6][12] - The CEO succession plan is underway, with expectations to have a new CEO in place by June 30, 2025 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current environment and highlighted the strong performance of the portfolio during economic downturns [22][70] - The company anticipates a full-year 2025 AFFO per share range of $0.89 to $0.93, assuming no additional acquisition or disposition activity beyond what has been completed or announced [21][22] Other Important Information - The company completed two property dispositions generating gross proceeds of $8.2 million, resulting in a gain of $1.4 million [13][17] - The company is monitoring the impact of tenant bankruptcies and expiring leases on occupancy rates, with expectations to retain 75% of expiring leases on a square foot basis for the full year 2025 [19][20] Q&A Session Summary Question: Timeline and expected rent collection for the East Orange facility - Management outlined the process of converting subtenants to direct tenants and expressed optimism about leasing activity, with expected net rents in the mid $13 to $15 range [25][29] Question: Impact of Prospect Medical on guidance - Management confirmed that the impact of Prospect Medical is factored into guidance but is not a significant component of the overall outlook [31] Question: Dividend sustainability and acquisition ability - Discussions regarding dividends are ongoing, with considerations for CapEx and strategic direction influencing decisions [45] Question: Retention rates and future expectations - Management noted that retention was lower than expected in Q1 but anticipates improvement as they work through expiring leases [48][49] Question: Leverage and acquisition opportunities - Management indicated a willingness to maintain leverage around current levels while pursuing acquisition opportunities that align with their strategy [57][58]