Endeavour Silver (NYSE:EXK) Q4 2025 Earnings call February 27, 2026 01:00 PM ET Company Participants Thank you, Allison, and welcome everyone. Before reviewing our 2025 results, I'd like to provide a brief update on Terronera. Operations were temporarily impacted by recent security events in Mexico and Jalisco's Code Red mandate, which required civilians to shelter in place. To comply with the mandate, the uncertainty surrounding the event, and to ensure the safety of our people, we paused Terronera's opera ...

Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year 2025, representing a 22% year-over-year growth in FFO per share compared to 2024 [21] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][21] - The company improved its debt to EBITDA by nearly a full turn in 2025, entering 2026 with a net debt to EBITDA ratio of 3.4 times [21][24] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased 24.6% in Q4 and 25.2% for the full year 2025, with occupancy surpassing 90% [13] - The company expects continued strong performance in both Trilogy and SHOP segments, with guidance for 2026 indicating 8%-12% growth in Trilogy and 15%-19% growth in SHOP [23] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16] - The investment pipeline includes approximately $230 million in awarded deals, with ongoing deal activity expected to increase in 2026 [19][56] - The company anticipates that competitive pressure in its markets will remain muted due to historically low levels of new supply growth [18] Company Strategy and Development Direction - The company maintains a disciplined investment and capital allocation strategy focused on high-quality care and superior health outcomes [7][8] - The strategy includes a shift towards higher acuity assets and relationship-driven sourcing for acquisitions [16][64] - The company is focused on expanding its Trilogy segment and campus growth initiatives, leveraging existing assets to mitigate market risks [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][23] - The leadership emphasized the importance of high-quality care and health outcomes, which are expected to drive demand in the aging population [13][18] - Management acknowledged the challenges in the operating environment but remains optimistic about the company's ability to navigate these challenges and capitalize on growth opportunities [24] Other Important Information - The company has a robust pipeline of acquisitions and is prepared to deploy capital competitively in response to increasing deal activity [19][56] - The management team is committed to maintaining operational alignment and clarity of execution during the leadership transition [6][9] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - Management noted a focus on higher acuity SHOP assets, indicating confidence in long-term stability for this asset class [27] Question: Can you discuss the guidance for SHOP and potential deceleration? - Management highlighted a significant increase in occupancy in 2025 and indicated that pricing power would increase as occupancy rises [32][34] Question: What are the expectations for the investment pipeline and yields? - Management indicated that they are seeing cap rate compression and are focused on acquiring higher quality properties [63] Question: How does the revenue management system rollout progress? - Management explained that the revenue management system is being piloted with select operators, aiming to enhance performance across the portfolio [46][51] Question: What is the outlook for Trilogy investments? - Management acknowledged increased competition but emphasized their advantage in off-market acquisitions and strong relationships with operators [80][82]

Financial Data and Key Metrics Changes - In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, a 48% increase compared to 2024 [5] - The company reported record revenue of $468 million, up 115% from 2024, with cost of sales at $385 million and mine operating earnings of $83 million [6] - Adjusted net earnings for Q4 were $4.8 million, or $0.02 per share, impacted by realized losses from derivative contracts and higher financing costs [6][7] Business Line Data and Key Metrics Changes - In Q4, Endeavour produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces, representing a 146% increase compared to Q4 of 2025 [5] - Excluding Coba and Terronera, production increased by 27% compared to the same period last year [6] Market Data and Key Metrics Changes - Silver and gold prices have seen exceptional gains, with gold trading above $5,000 and silver above $90, driven by inflationary pressures and global economic uncertainty [4] - The company is well-positioned to benefit from current silver prices, indicating substantial runway remaining in this cycle [4] Company Strategy and Development Direction - Endeavour Silver's strategic initiatives include the acquisition of Kolpa, achieving commercial production at Terronera, and advancing the Pitarrilla development asset [4][5] - The company plans to invest $68 million in Pitarrilla in 2026, focusing on exploration and technical studies [12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety and operational stability, particularly in light of recent security events in Mexico [3] - The company anticipates a substantial reduction in direct operating costs as it transitions to liquefied natural gas in Q2 2026 [8][10] Other Important Information - As of December 31, 2025, the company's cash position was $215 million, providing financial strength to advance strategic initiatives [10] - The company expects to see improvements in throughput and recoveries as operations stabilize at Terronera [11] Q&A Session Summary Question: Can you discuss the mill availability and electrical interruptions at Terronera? - Management confirmed improvements in January and February, with stabilization of electrical disruptions and plans to transition to an LNG plant for better reliability and cost [15][17] Question: What is the guidance on grades at Terronera? - Management indicated that lower grades were due to mining stockwork, with expectations for higher grades in the second half of the year as operations progress [19][22] Question: How will costs drop in 2026? - Management explained that Q1 costs would be higher due to one-time expenditures, but costs are expected to decrease as operations stabilize and higher grades are processed [56][60] Question: What changes in security protocols have been implemented due to recent events in Jalisco? - Management stated that while there would be no dramatic changes in security costs, there would be increased monitoring of transportation lines [64][66] Question: What is the status of the Bolanitos sale and its accounting impact? - The sale closed on January 15, and the company anticipates recognizing an accounting gain in Q1 [72][73]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22x [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, reflecting the sale of certain assets to DK [12] - The investments in pipeline joint ventures contributed $26 million in Q4, up from $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [11] - The management highlighted the importance of optimizing synergies and executing strategic priorities to capture the value of recent investments [10] Other Important Information - The Board of Directors approved the 52nd consecutive quarterly distribution increase, raising the distribution to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital spending for Q4 was approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the variance in guidance and emphasized a clear strategy focused on crude, gas, and water in the Permian Basin, highlighting a return on investment of 1x-3x [16][17] Question: EBITDA impact from transactions with DK - Management noted that the transactions helped further economic separation, with 82% of EBITDA now coming from third-party businesses, and indicated that the impact on EBITDA was not material to either entity [22][23] Question: Next steps on Libby processing expansion - Management mentioned prior investments for future expansion and is closely monitoring customer activity in the area, indicating positive macro and micro conditions [28][29] Question: Thoughts on sour gas midstream M&A - Management stated that Delek Logistics remains open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain financial discipline [34]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22 times [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, driven by the sale of certain assets to DK [12] - Investments in pipeline joint ventures contributed $26 million in Q4, compared to $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the demand for sour gas solutions is increasing, necessitating further processing capacity [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders [6] - The company is optimistic about the growth potential in the Delaware gas business, which is expected to be a significant growth engine [20] - Management highlighted the importance of maintaining financial discipline while pursuing growth opportunities [10] Other Important Information - The board approved a distribution increase to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital expenditures for Q4 were approximately $32 million, with $26 million allocated to growth capital [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the clear strategy in crude, gas, and water, emphasizing a return on investment of 1-3 times, which is beneficial for coverage and leverage ratios [17] Question: EBITDA impact from transactions with DK - Management noted that these transactions have furthered the economic separation of the two entities, with 82% of DKL's EBITDA now coming from third-party businesses [23] Question: Next steps on Libby processing expansion - Management indicated that they are looking at future expansions and are optimistic about the macro and micro conditions in the area [28] Question: Thoughts on sour gas midstream M&A - Management stated that they are open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain their financial principles [34]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3][5] - Adjusted EBITDA for Q4 2025 was approximately $142 million, up from $114 million in Q4 2024, and $6 million higher than the previous record set in Q3 2025 [12] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22 times [12] Business Line Data and Key Metrics Changes - The Gathering and Processing segment reported Adjusted EBITDA of $71 million for Q4 2025, compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12][13] - Storage and transportation Adjusted EBITDA increased to $35 million in Q4 2025 from $18 million in Q4 2024, driven by the sale of certain assets to DK [13] - The investments in pipeline joint ventures contributed $26 million in Q4 2025, up from $18 million in Q4 2024, reflecting strong performance from the Wink to Webster joint venture [13] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7][23] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [9][21] Company Strategy and Development Direction - Delek Logistics aims to position itself as a premier full-service provider in the Permian Basin, with a focus on natural gas, crude, and water businesses [3][4] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5][14] - The integration of H2O and Gravity has enhanced the company's competitive position and built a strong platform for growth [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [5][12] - The company is optimistic about the growth potential in the Delaware gas business, which is expected to be a key growth engine for years to come [21] Other Important Information - The board approved a distribution increase to $1.125 per unit, marking the 52nd consecutive quarterly distribution increase and 13 years of distribution growth [5] - Total capital expenditures for Q4 2025 were approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [14] Q&A Session Summary Question: Growth expectations for the GMT segment - Management highlighted a clear strategy in crude, gas, and water in the Permian Basin, with a focus on achieving a return on investment that supports coverage and leverage ratios [17][18] Question: EBITDA impact from transactions with DK - The transactions helped further the economic separation of the two entities, with DKL now having 82% of its EBITDA from third-party businesses [22][23] Question: Next steps on Libby processing expansion - Management indicated ongoing investments for future expansion and is closely monitoring customer activities in the area, which look promising [28][29] Question: Thoughts on sour gas midstream M&A - Management expressed confidence in their valuation compared to peers and emphasized that any future deals must be accretive to free cash flow, leverage, and coverage ratios [34]

Summary of Everpure's Earnings Call Company Overview - **Company**: Everpure - **Industry**: Technology, specifically focusing on data storage and hyperscaler solutions Key Points and Arguments Hyperscaler Revenue Expectations - Everpure has increased expectations for hyperscaler shipments in FY27, particularly in the second half of the fiscal year, with most shipments expected in Q3 and Q4 due to hyperscaler build-out schedules [2][3] - Currently, the company is primarily shipping to one lead customer in the hyperscaler space, but is also exploring additional prospects [3][4] Business Model Evolution - The original business model was centered around software royalties for DirectFlash software, which constituted the bulk of revenue in FY26 [7] - The new standardized business model allows hyperscalers to procure components necessary for DirectFlash modules, which simplifies operations and enhances gross margin expectations to a range of 75-85 points [10][11] Demand Drivers - Robust demand across various segments, including enterprise and commercial sectors, is noted, with a significant focus on AI and infrastructure modernization projects [12][15] - KV caching is emerging as a new demand driver, particularly in the context of AI inferencing, although it currently represents a smaller portion of the overall business [16][17] Neocloud Service Providers - Traditional enterprises are the primary focus for demand strengthening, but Neocloud service providers are also being engaged for GPU infrastructure [20][21] - Neoclouds are seen as an opportunity due to their diverse customer needs, which align with Everpure's flexible technology offerings [24] Growth and Profitability Strategy - Everpure aims to drive significant growth while maintaining moderate operating margin improvements, targeting a point of operating margin growth annually [37] - The company is focused on sustainable growth across core and new markets, including hyperscalers and AI [26][29] 1touch Acquisition - The acquisition of 1touch is primarily targeted at enhancing enterprise capabilities, particularly in data discovery and classification, which will integrate into Everpure's existing technology [40][41] - This acquisition is expected to complement the unified control plane strategy, aiding in data consolidation and management [44] Supply Chain and Pricing - Everpure has strong visibility into its supply chain and maintains strategic agreements with suppliers, which have been strengthened over time [55][56] - The company has been shipping more QLC NAND than TLC, with a trend towards increasing QLC usage [59] - Pricing actions have been taken to recover gross margins affected by rapid input cost increases, with expectations for recovery starting in Q2 [60][62] Conclusion - Everpure is positioned for growth with a focus on hyperscalers, AI, and enterprise solutions, while managing supply chain challenges and pricing strategies to maintain profitability [26][29][61]

Financial Data and Key Metrics Changes - Full year 2025 adjusted net investment income (NII) was $1.22 per share, down from $1.52 in 2024 [4] - Annualized NII return on equity (ROE) for the year was 12.3%, compared to 14.5% in 2024 [5] - Fourth quarter adjusted NII was $0.25 per share, down from $0.30 in the previous quarter and $0.36 in the fourth quarter of 2024 [5] - Net realized losses for the quarter were $73.9 million or $0.87 per share, with net unrealized losses of $66.5 million or $0.78 per share [17] - NAV declined 19% to $7.07 per share as of December 31, 2025, from $8.71 as of September 30, 2025 [6] Business Line Data and Key Metrics Changes - As of December 31, 2025, non-accrual debt investments represented 4% of the portfolio at fair market value and 9.7% at cost, compared to 5.6% at fair market value and 14.4% at cost for the fourth quarter of 2024 [6] - The portfolio had a fair market value of $1.5 billion invested across 141 companies, with 92.4% in senior secured loans [11] - The average size of new investments in 2025 was $5.8 million, down from $11.7 million at the end of 2024 [12] Market Data and Key Metrics Changes - The weighted average effective yield of the portfolio was 11.1%, down from 11.5% in the previous quarter [12] - Paydowns in the fourth quarter were $80.7 million, compared to $140 million in the prior quarter [14] Company Strategy and Development Direction - The company aims to improve credit quality by resolving challenged credits and repositioning the portfolio for attractive returns [21] - The strategy includes deploying capital selectively into senior secured first lien loans and building a diversified portfolio to reduce concentration risk [22] - The company is leveraging BlackRock's resources to enhance investment capabilities and expand the pipeline of opportunities [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the disappointing write-downs in the fourth quarter but emphasized active management of the investment portfolio [21] - The company is focused on improving credit quality and executing its investment strategy, which includes increasing first lien investments to 87.4% of the portfolio [22] - Management noted that the road to recovery for challenged investments is rarely linear and requires careful monitoring [29] Other Important Information - The board declared a first quarter dividend of $0.17 per share payable on March 31, 2026 [10] - The company repurchased 515,869 shares during the fourth quarter at a weighted average price of $5.84 per share [10] Q&A Session Summary Question: At what point does it make sense to take more aggressive overall strategic adjustments to the BDC? - Management believes the best path forward is to focus on improving credit quality and executing the current investment strategy, which includes increasing first lien loans and diversifying the portfolio [26] Question: How should investors view the trend of restructurings not sticking? - Management indicated that restructurings can vary in outcome and emphasized the importance of a robust process to manage challenged investments [30] Question: Was there a change in personnel or procedures that led to the recent NAV drawdowns? - Management confirmed that there were no changes to the valuation policy and that the recent write-downs were concentrated among a few specific investments [34]

Financial Data and Key Metrics Changes - Full year 2025 adjusted net investment income (NII) was $1.22 per share, down from $1.52 in 2024 [4] - Annualized net asset income (NAI) return on equity (ROE) for the year was 12.3%, compared to 14.5% in 2024 [5] - Fourth quarter adjusted NAI was $0.25 per share, down from $0.30 in the previous quarter and $0.36 in the fourth quarter of 2024 [5] - Net asset value (NAV) declined 19% to $7.07 per share as of December 31, 2025, from $8.71 as of September 30, 2025 [6] Business Line Data and Key Metrics Changes - Non-accrual debt investments represented 4% of the portfolio at fair market value and 9.7% at cost, compared to 5.6% at fair market value and 14.4% at cost for the fourth quarter of 2024 [6] - The portfolio had a fair market value of $1.5 billion invested across 141 companies, with 92.4% in senior secured loans [11] - The average size of new investments in 2025 was $5.8 million, down from $11.7 million at the end of the previous year [12] Market Data and Key Metrics Changes - The weighted average effective yield of the portfolio was 11.1%, down from 11.5% in the previous quarter [12] - Investments during the quarter had a weighted average yield of 9.7%, while those exited had a yield of 11.1% [12] Company Strategy and Development Direction - The company aims to improve credit quality by resolving challenged credits and repositioning the portfolio for attractive returns [21] - The strategy includes deploying capital selectively into senior secured first lien loans and building a diversified portfolio to reduce concentration risk [22] - The company is leveraging BlackRock's resources to enhance investment capabilities and expand the pipeline of opportunities [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing write-downs but emphasized active management of the investment portfolio to maximize recoveries [21] - The company is focused on improving credit quality and executing its refined investment strategy [21] - Management noted that the road to recovery for challenged investments is rarely linear and requires diligent management [30] Other Important Information - The board declared a first quarter dividend of $0.17 per share, payable on March 31, 2026 [10] - The company repurchased 515,869 shares during the fourth quarter at an average price of $5.84 per share [10] Q&A Session Summary Question: At what point does it make sense to take more aggressive strategic adjustments to the BDC? - Management believes the best path forward is to focus on improving credit quality and executing the current investment strategy, which includes increasing first lien loans and portfolio diversification [26] Question: How should investors view the trend of restructurings not sticking? - Management indicated that restructurings can vary and the recovery process is not always linear, emphasizing the importance of a robust management process for challenged investments [30] Question: Was there a change in personnel or procedures that led to the recent NAV drawdowns? - Management confirmed there were no changes to the valuation policy and that the NAV drawdowns were concentrated among a few specific investments that experienced significant underperformance [35]

Financial Data and Key Metrics Changes - The fourth quarter operating results exceeded expectations, with total RevPAR growth of 7.4% in the quarter, or 12.5% including contributions from Andaz Miami Beach [5][19] - Rooms RevPAR grew by 9.6% in the quarter, with a 540 basis point benefit from Andaz Miami Beach [19] - Adjusted EBITDAre for the fourth quarter was reported at $57 million, and Adjusted FFO was $0.20 per diluted share [19][24] Business Line Data and Key Metrics Changes - Resorts led the portfolio with a 19% RevPAR growth in Maui, while Andaz Miami Beach outperformed expectations [6][7] - Montage Healdsburg achieved 15% total RevPAR growth in the quarter, and Marriott Long Beach Downtown generated 12% growth [7][8] - Urban hotels showed less robust top-line growth, but margins improved due to cost control measures [8][10] Market Data and Key Metrics Changes - The Portland market showed nearly 13% growth, while Boston and New Orleans faced softer markets [7] - Group revenue production in Orlando increased over 10% last year, indicating a strong start for 2026 [9] - The Washington D.C. market faced challenges due to government spending cuts and a government shutdown, impacting performance [10][12] Company Strategy and Development Direction - The company is focused on three strategic objectives: recycling capital, investing in the portfolio, and returning capital to shareholders [4][14] - The management team is committed to maximizing shareholder value through asset sales and stock repurchases [27] - The company plans to continue executing its capital recycling strategy while remaining disciplined in capital allocation [18][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, citing strong early performance from Andaz Miami Beach and positive signs in Northern California [11][12] - The company anticipates RevPAR growth of 4% to 7% for rooms and 3.5% to 6.5% for total RevPAR in 2026 [22][23] - Management highlighted potential headwinds from softer transient demand in San Diego and uncertainty in D.C. [12][13] Other Important Information - The company returned over $170 million to shareholders through dividends and share repurchases [5] - The board has reauthorized a $500 million share repurchase program [25] - The company has a strong balance sheet with over $200 million in cash and total liquidity exceeding $700 million [20][21] Q&A Session Questions and Answers Question: Can you walk through the 1.5% midpoint of 2026 RevPAR growth ex-Andaz? - Management noted that Maui is seeing growth, and the transient demand is up about 53%, which will help cover shortfalls [32][33] Question: Can you discuss the expense growth implied in guidance? - Management indicated that total expense growth is around 3%, with labor costs decreasing slightly and energy prices increasing [36][39] Question: Are you expecting to be a net seller of assets? - Management confirmed that they are looking to realize private market values for hotels and resorts, continuing their strategy of recycling assets [44][47] Question: Why is total RevPAR guidance lower than RevPAR outlook? - Management explained that larger assets in D.C. and San Diego are impacting group business and ancillary spend, affecting total RevPAR [51][52] Question: What is the impact of the sale process on operations? - Management stated that the management contracts for hotels remain in place, so day-to-day operations are not impacted [72][73]