Core Viewpoint - Investing in dividend stocks provides a significant opportunity for generating passive income, with several companies currently offering yields above 5%, substantially higher than the S&P 500's sub-1.5% yield [1] Group 1: Alexandria Real Estate Equities - Alexandria Real Estate Equities focuses on life science properties and has a current dividend yield exceeding 7% [3] - The company allocates 57% of its funds from operations to dividends and has achieved a 4.5% annual dividend growth since the end of 2020 [3] Group 2: Clearway Energy - Clearway Energy owns clean energy generation assets and currently offers a dividend yield of nearly 6% [4] - The company aims to distribute 70% to 80% of its stable cash flow as dividends and projects cash available for distribution to grow from $2.08 per share this year to over $2.60 per share by 2027 [5][6] Group 3: Enbridge - Enbridge is a leading North American pipeline and utility company with a current dividend yield of 6% [7] - The company pays out 60% to 70% of its steady cash flow in dividends and has plans for 3% to 5% annual growth in earnings and dividends, having increased its dividend for 30 consecutive years [8] Group 4: NNN REIT - NNN REIT focuses on income-generating freestanding net lease retail properties and currently has a dividend yield of around 5.5% [9] - The REIT expects to generate sufficient cash to cover its dividend with approximately $200 million to spare this year, having raised its dividend for 35 consecutive years [10] Group 5: Verizon - Verizon is one of the largest mobile and broadband companies in the U.S., with a dividend yield exceeding 6% [11] - The company generated $19.8 billion in free cash flow last year, covering its $11.2 billion dividend outlay, and plans to continue investing heavily in growth, including a $20 billion acquisition of Frontier Communications [12] Group 6: Common Features of Dividend Stocks - The highlighted dividend stocks share characteristics of generating stable cash flow, which supports high-yielding dividends while allowing for business growth and routine dividend increases [13]

Financial Data and Key Metrics Changes - For Q1 2025, normalized FFO was $10.8 million or $0.07 per share, down from $0.13 per share in the prior year quarter [24] - Adjusted EBITDAre increased slightly year over year to $115.8 million [24] - Comparable hotel RevPAR grew by 2.6% year over year, with gross operating profit margin percentage declining by 330 basis points to 21.4% [24] Business Line Data and Key Metrics Changes - Comparable hotel RevPAR growth was supported by occupancy and ADR gains, with a 10.6% increase in RevPAR for the select service portfolio, primarily driven by occupancy growth in Hyatt Place and Sonesta Select hotels [11][10] - Full service hotels reported a 1.9% increase in RevPAR, while extended stay portfolio RevPAR was essentially flat due to renovation impacts [10][11] - Adjusted hotel EBITDA for the hotel portfolio was $23 million, a decline of 20.5% year over year, primarily due to renovations and increased costs [24] Market Data and Key Metrics Changes - The lodging portfolio experienced a softening in RevPAR as the quarter progressed, influenced by reduced government and international travel [8] - Group revenue pace increased by 6.5% year over year, indicating a positive trend despite overall market challenges [35] Company Strategy and Development Direction - The company plans to sell 123 hotels in 2025 with estimated proceeds of $1.1 billion to strengthen the balance sheet and reinvest in growth opportunities [9][14] - A strategic shift towards increasing net lease exposure is anticipated, with a target to adjust the investment composition from 56% lodging assets to 54% net lease properties [16] - The company aims to optimize its portfolio through asset sales and reinvestment in high-potential hotels, while gradually expanding net lease acquisitions [12][16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainties but expressed confidence in the resilience of the net lease portfolio and the potential for long-term value creation through portfolio optimization initiatives [16] - The company expects challenges in the travel and lodging industries to impact key segments, but anticipates a seasonal benefit in Q2 [27] Other Important Information - The company is monitoring potential impacts from tariffs on capital improvement costs and supply chain uncertainties [29] - The net lease portfolio was nearly 98% leased with a weighted average lease term of eight years, providing steady cash flow [18] Q&A Session Summary Question: Can you walk us through the RevPAR trends in the quarter? - Management indicated that RevPAR started strong in January but showed deceleration by March, with preliminary April numbers indicating a 1% year-over-year decrease [32][33] Question: What is the impact of international and government business on demand? - Approximately 30% of the portfolio is in top markets affected by international travel, with a modest decrease in government business noted [34][35] Question: How confident is the company in completing hotel sales at the expected price? - Management expressed confidence due to a robust selection process and strong buyer interest, with transactions expected to occur in phases [36][38] Question: Will the company continue to have hotel exposure in the future? - Management confirmed that while there will be a shift towards net lease properties, the company will maintain hotel exposure to drive EBITDA [41][43] Question: What is the outlook for the Sonesta stake? - The company believes the value of its 34% stake in Sonesta will grow as Sonesta transitions to a franchise model, enhancing margins [50][51]