Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [19] - Net loss totaled $2 million or $0.02 loss per diluted share, an improvement from a net loss of $7 million or $0.07 loss per diluted share in the second quarter [19] - Adjusted EBITDA was $35 million, representing 12% of revenue, and decreased by 29% compared to the prior quarter [19] - Free cash flow for the completions business was $25 million [19] Business Line Data and Key Metrics Changes - The completions business continues to generate sustainable free cash flow despite a decline in activity and related revenue [20] - Capital expenditures incurred were $98 million, with approximately $79 million supporting PROPWR orders [21] - The company anticipates full-year 2025 capital expenditures to be between $270 million and $290 million, down from previous guidance [23] Market Data and Key Metrics Changes - Approximately 70 full-time frac fleets are currently operating in the Permian, down from 90-100 fleets at the beginning of the year, indicating a slowdown in the completions market [4] - Pricing discipline has softened at the lower end of the market, particularly among subscale frac providers [7] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the industrialized operating model to generate free cash flow [4] - The company is prioritizing investments in PROPWR and FORCE Electric fleets to support future growth [7] - ProPetro secured a long-term contract for 60 MW to support a hyperscale data center, marking its entry into the data center power market [11] Management's Comments on Operating Environment and Future Outlook - Management expects the challenging operating environment to continue into at least the first half of next year due to tariffs and OPEC production increases [5] - The company anticipates maintaining 10-11 active fleets in the fourth quarter, with expectations for sequential improvement in the PROPWR segment [16] - Management remains confident in the company's strategy and future growth, particularly in the PROPWR segment [27] Other Important Information - ProPetro has secured a letter of intent for a $350 million leasing facility to support growth in the PROPWR business [13] - The company plans to reach at least 220 MW contracted by the end of the year, with expectations to deliver 750 MW by year-end 2028 [12] Q&A Session Summary Question: Details on the 60 MW data center contract - The technology deployed includes reciprocating engines and battery energy storage systems, with potential for future capacity expansion [33][34] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with the leasing facility providing flexible capital for growth [37][39] Question: Contract duration preferences - The 60 MW contract is long-term, with the company evaluating each deal on a case-by-case basis for optimal terms [45][47] Question: Equipment cost differentials - The average cost of equipment, including battery systems, is about $1.1 million per megawatt, with no significant cost differential between data center and Permian microgrid projects [48][49] Question: Deployment of megawatts across markets - The company anticipates a balanced distribution of contracts between data centers and oilfield applications, with potential shifts based on market opportunities [55][56] Question: Differentiation in service lines - Both the frac and power generation businesses focus on customer needs, with a strong emphasis on operational excellence and technology expertise [66][69]

Financial Data and Key Metrics Changes - The company reported third quarter adjusted EPS of $0.50, exceeding previous expectations, and increased the full-year adjusted EPS forecast to at least $2 from $1.75 [5][28] - Premium and service revenue for the third quarter reached $44.9 billion, while GAAP loss per share was $13.50 due to a $6.7 billion non-cash goodwill impairment charge [28][35] - The adjusted effective tax rate was temporarily low, contributing approximately $0.10 to adjusted EPS, with a full-year tax rate expectation of 20% to 21% [28][11] Business Line Data and Key Metrics Changes - The Medicaid segment achieved a third quarter HBR of 93.4%, showing sequential improvement, aided by a $150 million revenue adjustment from Florida's Children's Medical Services [11][29] - The Marketplace segment ended the quarter with approximately 5.8 million members, slightly better than expectations, despite experiencing medical cost pressure [16][28] - The Medicare segment's HBR was reported at 94.3%, consistent with expectations, with Medicare Advantage and PDP results aligning with the updated outlook [20][21] Market Data and Key Metrics Changes - The company anticipates a 2025 Medicaid composite rate adjustment of roughly 5.5%, up from earlier estimates [8] - The Marketplace pricing for 2026 averaged in the mid-30% range, reflecting adjustments for baseline morbidity and expected risk pool shifts [17][68] - The company expects a market contraction for 2026 in the high teens to mid-30s range, influenced by the expiration of eAPTCs and program integrity measures [44][48] Company Strategy and Development Direction - The company is focused on margin recovery over membership growth, particularly in the Marketplace segment, and has positioned itself for margin improvement in 2026 [24][56] - Continued advocacy for improved Medicaid rates and clinical management strategies are key components of the company's strategy to enhance profitability [12][61] - The company plans to provide detailed 2026 guidance in early February, emphasizing operational improvements and efficiency gains [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall performance of the business despite challenges in the operating environment, particularly in Medicaid and Marketplace segments [11][23] - The company is closely monitoring the impact of potential changes in eAPTCs and program integrity measures on its business outlook [18][44] - Management highlighted the importance of maintaining strong relationships with state partners to navigate the evolving healthcare landscape [15][62] Other Important Information - The company reported a strong cash flow from operations of $1.4 billion in Q3, with unregulated cash on hand at $357 million [36] - Medical claims liability totaled $21.5 billion, representing 48 days in claims payable, an increase of one day compared to the previous quarter [36] - The company is prepared for potential market changes and is actively engaging in outreach to members regarding insurance options [48][50] Q&A Session Summary Question: How does the company ensure stability in the Marketplace amid competitor exits? - Management noted a slight uptick in utilization in September and emphasized the importance of data-driven decisions for 2026 pricing, which accounts for various risk factors [39][41] Question: What strategies are in place to re-engage members during open enrollment? - The company is prepared to mobilize marketing efforts and broker relationships to recapture members who may not initially re-engage [46][48] Question: What is the outlook for Medicaid profitability given potential work requirements? - Management indicated that while there may be some membership attrition, they do not expect significant impacts on overall margin profiles for 2026 [52][63] Question: How does the company view competitive positioning for 2026? - Management expects to maintain a competitive edge with a focus on margin recovery, despite anticipated market contraction [54][56]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased to $1.55 billion, reflecting growth in environmental services and a diversified customer base [20][21] - Adjusted EBITDA rose 6% to $320 million, with a consolidated Adjusted EBITDA margin expanding to 20.7%, driven by pricing initiatives and cost reduction efforts [20][21] - Net income grew modestly year over year, delivering earnings per share of $2.21 [22] Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue increased by 3%, with Adjusted EBITDA margin growing for the 14th consecutive quarter [6][7] - Technical services within ES saw a 12% revenue growth, while landfill volumes increased by 40% year over year [7][8] - Safety-Kleen Sustainable Solutions (SKSS) segment delivered over $40 million in EBITDA, marking its strongest quarter in a year despite pricing headwinds [13][21] Market Data and Key Metrics Changes - Incineration utilization was high at 92%, with demand remaining strong due to diverse end markets [7] - Field services revenue declined by 11% due to the absence of medium to large response projects, while industrial services revenue decreased by 4% [8][9] - PFAS-related sales are expected to generate $100 million-$120 million in revenue this year, up 20%-25% from the previous year [10][11] Company Strategy and Development Direction - The company is focused on margin growth through pricing gains, productivity improvements, and cost-saving strategies [4][5] - Plans to construct a new processing plant (SDA unit) with an expected total spend of $210 million-$220 million, anticipated to generate annual EBITDA of $30 million-$40 million [15][16] - The company is actively evaluating M&A opportunities while maintaining a disciplined approach to capital allocation [16][82] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite current macroeconomic challenges, anticipating a recovery in industrial services and field services as economic conditions improve [18][28] - The project pipeline remains substantial, with growing PFAS opportunities expected to contribute meaningfully to future activity [18][28] - Management expects to achieve profitability targets for SKSS in 2025, indicating stabilization in that segment [19][27] Other Important Information - The company reported record cash flows in Q3, ending with cash and short-term marketable securities of $850 million, providing substantial flexibility for capital allocation [22][23] - SG&A expenses as a percentage of revenue increased to 12.2%, reflecting higher healthcare costs and professional fees [21] Q&A Session Summary Question: What were the main factors behind the $15 million guidance reduction? - The reduction was primarily due to shortfalls in industrial services ($7 million) and field services ($4 million), along with elevated healthcare costs impacting the entire company [34][35] Question: What is the outlook for EBITDA growth in 2026? - Management targets a 5% EBITDA growth for next year, driven by cost-cutting initiatives and volume growth in waste businesses [39] Question: What is the company's M&A outlook? - The company is considering both larger and smaller deals, remaining prudent and disciplined in its approach to M&A [40][42] Question: Can you clarify the expected performance of the SKSS segment? - Management is confident in achieving the $140 million EBITDA target for SKSS, with a few million on either side as a potential range [73][74] Question: What is the current state of the incinerator pricing? - Incineration pricing is expected to grow at mid-single digits, consistent with prior quarters, while technical services saw double-digit growth [77][78]

Financial Data and Key Metrics Changes - IDEX delivered organic revenue growth of 5% in Q3 2025, with adjusted EBITDA margin and adjusted EPS exceeding forecasts [17][19] - Overall orders grew 7% organically, with the Health and Science Technology (HST) segment reaching a record high of $390 million [17][19] - Free cash flow was $189 million, a decrease of 2% year-over-year, with a free cash flow conversion rate of 123% of adjusted net income [20][21] Business Line Data and Key Metrics Changes - In the HST segment, organic orders grew 5% and revenue increased by 10%, driven by strength in life sciences, space and defense, and data centers [21] - The Fluid and Metering Technologies (FMT) segment saw organic orders increase by 8% and organic sales rise by 4%, supported by the intelligent water platform [22] - The Fire & Safety/Diversified Products (FSDP) segment experienced a 7% increase in organic orders but a 5% decline in organic sales due to soft volumes [23] Market Data and Key Metrics Changes - Organic sales outside the U.S. grew 5%, with both positive pricing and higher volumes contributing to this growth [18] - The semiconductor lithography market remained below prior year levels, while life sciences saw low single-digit growth [18] Company Strategy and Development Direction - IDEX is focused on optimizing its business portfolio and pursuing bolt-on acquisitions while returning capital to shareholders [12][25] - The company aims to leverage its 80/20 philosophy to enhance efficiencies and productivity across its growth platforms [7][28] - IDEX has established five thematic growth platforms that cover half of its revenue, which are expected to drive organic growth moving forward [8][14] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic macro environment with uncertainty expected to continue into 2026, but emphasized the company's ability to create opportunities through its strategies [15][16] - The company plans to continue focusing on advantaged markets, particularly in data centers, space and defense, and pharmaceuticals [26][29] Other Important Information - IDEX repurchased $75 million in shares during the quarter, totaling $175 million year-to-date, and increased its share repurchase authorization to $1 billion [21][25] - The company narrowed its full-year guidance range to $7.86 to $7.91, reflecting continued strength in HST and stable performance in FMT [26] Q&A Session Summary Question: Insights on business tone and order metrics - Management indicated that while there is order hesitation, areas like data centers and water are showing positive energy, with stable metrics overall [39][40] Question: Impact of government shutdown on fire business - The North American fire and rescue markets remain strong, with government funding issues more relevant in Europe and Asia [44][45] Question: Growth perspective relative to history - Management expects to move organic growth closer to mid-single digits, driven by higher tech assets and better collaboration across businesses [52][53] Question: Cost reduction opportunities - Management highlighted ongoing efforts to optimize costs and improve margins through operational excellence and platform optimization [80][83] Question: Share repurchase strategy - The company plans to continue returning excess cash to shareholders through dividends and share repurchases, viewing the stock as undervalued [92][95]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $1.917 billion, an increase of $20 million compared to Q3 2024, reflecting currency recoveries offsetting lower demand [12] - Adjusted EBITDA improved by $51 million year-over-year to $162 million, with a margin expansion of 260 basis points to 8.5% due to cost-saving actions and operational efficiencies [12][13] - EBIT improved significantly to $53 million from a loss of $8 million in the prior period, while net income attributable to Dana was $13 million compared to a loss of $21 million in Q3 2024 [12][13] Business Line Data and Key Metrics Changes - Volume and mix in Q3 2025 were $66 million lower, driven by lower demand in commercial vehicle markets, partially offset by higher sales in light vehicles [14] - Cost savings contributed $73 million in profit, bringing the total to $183 million year-to-date, with an increased target of $235 million for the full year 2025 [16][18] Market Data and Key Metrics Changes - Commercial vehicle demand in North America is deteriorating, with a current annualized run rate of around 200,000 units, and no signs of improvement expected until mid-2026 [30][90] - Light vehicle demand remains stable, with production disruptions having minimal impact on light vehicle system sales [10][12] Company Strategy and Development Direction - The company is focused on restructuring initiatives that are expected to turn from headwinds to tailwinds, with an emphasis on cost-saving measures and operational improvements [5][10] - The off-highway divestiture is on track to close in Q4 2025, with most regulatory approvals received [8][10] - The company plans to continue investing in automation and efficiency improvements to enhance margins and shareholder value [60][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance, with an expectation of improved performance in Q4 driven by cost-saving initiatives and better product mix [18][84] - The outlook for commercial vehicles remains cautious, with no immediate signs of recovery, while light vehicle programs are expected to drive volume growth [30][48] Other Important Information - The company repurchased approximately 9.5 million shares, representing 7% of outstanding shares, and plans to complete the share repurchase program soon [9] - Adjusted free cash flow for Q3 2025 was $101 million, a $109 million improvement year-over-year, driven by higher profitability and better working capital management [17] Q&A Session Summary Question: Impact of tariff policy changes on U.S. OEMs - Management noted that U.S. OEMs are likely benefiting more from recent tariff policy changes compared to European counterparts, as the rebate is based on vehicles assembled in the U.S. [26][27] Question: Deterioration in commercial vehicle market - Management indicated no signs of improvement in the commercial vehicle market, expecting a soft market through mid-2026 [30] Question: Drivers of Q4 performance - Management highlighted continued cost-saving improvements and better product mix as key drivers for expected Q4 performance [36][38] Question: Performance drivers and pricing improvements - Management confirmed that pricing improvements and new platform launches are contributing to performance, with a focus on productivity and efficiency [44][46] Question: Backlog and EV program cancellations - Management acknowledged that the backlog has been impacted by EV program cancellations, but expects increases in internal combustion engine (ICE) programs [107][108]

Financial Data and Key Metrics Changes - TRTX reported GAAP net income of $18.4 million, or $0.23 per common share, and distributable earnings of $19.9 million, or $0.25 per common share, covering the quarterly dividend of $0.24 per common share [13] - Book value per common share increased from $11.20 to $11.25 due to the share repurchase program and solid operating results [13] - Year-over-year, the loan portfolio grew by $1.2 billion, or 12% net [10][16] Business Line Data and Key Metrics Changes - In Q3, TRTX originated four loans with total commitments of $279.2 million at a weighted average credit spread of 3.22% [14] - Loan repayments totaled $415.8 million, including six full loan repayments of $405.8 million, primarily from multifamily and hotel loans originated in 2021 and 2022 [14] - The company repurchased 3.2 million shares of common stock at a weighted average price of $7.89 per share, resulting in $0.13 per share of book value accretion [15] Market Data and Key Metrics Changes - The equity market reached multiple all-time highs, while the 10-year Treasury rallied nearly 40 basis points to hover near 4% [8] - The real estate equity market is healing, driven by reset valuations and reduced lending appetite from the banking sector [8] Company Strategy and Development Direction - TRTX's investment activity accelerated, closing $279 million of new investments in Q3 and expecting over $670 million of loans to close in Q4 [8][9] - The company continues to lend primarily on multifamily and industrial assets, which represent approximately 91% of the $1.1 billion of closed and in-process investments [9] - TRTX shares currently trade at a 20% discount to book value, which the company believes offers substantial value [11] Management's Comments on Operating Environment and Future Outlook - Management expects an increase in demand for their products as interest rates stabilize and potentially decrease [22][23] - The company anticipates a more balanced mix of acquisition and refinance activity in the coming year [23] - The current pipeline is predominantly refinance-focused, but management expects a shift towards more acquisition activity [23] Other Important Information - Bob Foley, the CFO, announced his retirement at year-end after over 12 years with TPG and 10 years as CFO of TRTX [3][4] - Brandon Fox has assumed the role of Interim CFO, and Ryan Roberto has taken on duties regarding capital markets and portfolio management [4] Q&A Session Summary Question: Organic portfolio growth potential with current capital base - Management believes there is potential for organic portfolio growth with the current capital base [19][20] Question: Demand for bridge loan products with potential rate cuts - Management is already seeing acceleration in investment activity and expects increased demand for bridge loans as interest rates stabilize [22] Question: Cadence of leverage increase with new CLO and origination volumes - Management indicated that leverage will likely increase as new investments close, but there may be a lag in earnings from new investment activity [28][29] Question: Unique opportunity in Nashville hotel loan despite reduced exposure - Management clarified that the Nashville hotel loan was a unique opportunity with a high-quality asset and borrower, despite a general reduction in hospitality exposure [30][31] Question: Enhancing ROE through REO portfolio management - Management stated that net balance sheet growth is the most important driver for enhancing ROE, rather than focusing on REO dispositions [35]

Stepan Company (NYSE:SCL) Q3 2025 Earnings Call October 29, 2025 09:00 AM ET Company ParticipantsRuben Velasquez - VP and CFOLuis Rojo - CEOConference Call ParticipantsMichael Harrison - AnalystDavid Storms - AnalystOperatorGood morning and welcome to the Stepan Company Third Quarter 2025 Earnings Conference call. During the presentation, all participants will be in a listen-only mode. Afterward, we will conduct a question and answer session. To ask a question during this session, you will need to press sta ...

Financial Data and Key Metrics Changes - Total capital expenditures for the quarter were $190 million, with year-to-date investments reaching $491 million, aligning with the full-year guidance of $650 to $680 million [5][16] - Average realized price for natural gas was $3.59 per unit, a $0.20 premium over the NYMEX average of $3.39 [16][17] - Year-to-date share repurchases totaled $177 million, with dividends paid amounting to nearly $65 million, and net debt reduced by $175 million since year-end [17][19] Business Line Data and Key Metrics Changes - Production for the quarter was 2.2 Bcfe per day, with expectations to increase to approximately 2.3 Bcfe per day in Q4 and 2.6 Bcfe per day by 2027, representing a 20% increase from current levels [6][8] - The company completed just over 1,000 frac stages during the quarter, achieving completion efficiencies of nearly 10 frac stages per day [9][10] - Cash operating expenses were reported at $0.11 per Mcfe, consistent with previous guidance [9] Market Data and Key Metrics Changes - The U.S. exported record volumes of LNG in Q3, with new LNG projects reaching FID, contributing to a total of approximately 9 Bcf per day of incremental feed gas demand [10][11] - The demand for NGLs, particularly ethane and propane, is expected to see substantial increases in export capacity, with strong international demand anticipated [13][14] Company Strategy and Development Direction - The company plans to maintain a low reinvestment rate while generating significant free cash flow, allowing for capital returns to shareholders [8][15] - Range Resources aims to leverage its high-quality inventory and operational efficiencies to meet increasing demand in the Midwest, Gulf Coast, and global LNG markets [7][12] - The company is focused on expanding infrastructure from Appalachia to support long-term energy needs [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow through cycles, supported by a strong balance sheet and operational efficiencies [19][20] - The management highlighted the importance of infrastructure utilization and operational efficiencies as key drivers for future performance [38][39] Other Important Information - The company is actively engaged in discussions for long-term supply agreements, focusing on both in-state and potential out-of-state opportunities [50][51] - The management noted that the current credit rating has not hindered discussions with customers regarding long-term agreements [75][81] Q&A Session Summary Question: Can you provide insights on the work in progress inventory and its expected status by the end of 2026? - Management indicated that the capital allocation for 2026 will focus more on completing the DUC inventory, with a linear utilization trend expected [26][29] Question: What are the expectations for operational efficiencies and capital expenditures in 2026? - Management expects to maintain low cash operating expenses and continue improving efficiencies through returning to pad sites and utilizing existing infrastructure [32][33] Question: What is the outlook for NGL demand and pricing? - Management expressed optimism regarding NGL demand growth, particularly for propane and ethane, driven by increasing export capacity and international demand [40][42] Question: What is the status of supply agreements and potential expansions outside Pennsylvania? - Management confirmed ongoing discussions with potential end users, focusing primarily on Pennsylvania but open to opportunities outside the state [50][53] Question: How does the company view curtailments and production modulation in response to pricing volatility? - Management stated that they have historically utilized curtailments when pricing warranted, but have focused on shaping production to align with market conditions [92][96]

Financial Data and Key Metrics Changes - The company has reduced well costs by over 25% and year-to-date costs are 30% lower than peers based on third-party well proposals [7][8] - The average breakeven cost is now less than $2.75 across the basin, showing significant efficiency gains [7][62] - Since the merger, the company has eliminated $1.2 billion in gross debt and returned nearly $850 million to shareholders [8] Business Line Data and Key Metrics Changes - The Hanzo asset position has seen a meaningful step change in efficiency, with seven rigs now delivering the same production that required thirteen rigs in 2023 [6] - Average well productivity is approximately 40% greater than the basin average, a trend expected to continue [7] Market Data and Key Metrics Changes - Natural gas demand is expected to grow by 20% by the end of the decade, driven by LNG power and industrial growth [9] - The company is positioned to serve customers along the Gulf Coast, where there is increasing competition for supply and lower carbon molecules [9] Company Strategy and Development Direction - The company aims to connect its global scale to growing markets, focusing on providing affordable, reliable, lower carbon energy [8][9] - The marketing strategy is evolving from value protection to value creation, enhancing the marketing and commercial organization to capitalize on its position as North America's largest natural gas producer [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet growing demand for natural gas, emphasizing the importance of reliable supply and flexibility in contracts [18][74] - The company is prepared for market volatility and is focused on achieving the best long-term, risk-adjusted returns possible [10][22] Other Important Information - The company has secured a supply agreement with Lake Charles Methanol, which is expected to commence operations in 2030, demonstrating a differentiated path to connect its molecules to high-growth markets at a premium price [10][71] - The company is actively pursuing bolt-on acquisitions to expand its resource base, particularly in Appalachia and the Western Hanzo [36][37] Q&A Session Summary Question: Can you discuss the evolution of gas demand regionally and the supply-demand dynamics? - Management highlighted growing demand along the Gulf Coast and the need for clarity on supply sources, emphasizing their unique position to meet this demand [16][18] Question: What is the current breakeven cost and how is it trending? - The company confirmed that the breakeven cost is now below $3, with significant improvements since the merger [30][62] Question: How do you see gas realization improving over time? - Management expects to add margin through their marketing business, optimizing delivery and aggregating supply to create value [34][35] Question: What are the expectations for the Western Hanzo asset? - The company is optimistic about the resource potential and plans to drill a horizontal production well in Q4, with a measured approach to development [41][67] Question: How does the company plan to manage capital expenditures in 2026? - The company anticipates a similar CapEx profile for 2026 as in 2025, with flexibility to adjust based on market conditions [49][50] Question: Can you elaborate on the Lake Charles Methanol deal? - The deal was motivated by the need for long-term security of supply and the ability to provide a differentiated, lower carbon product [71][74]

Financial Data and Key Metrics Changes - The company reported core FFO of $15.6 million for the quarter, an increase of $3 million compared to $12.6 million in the same quarter of the previous year [11] - Core FFO per share was $0.48, down from $0.50 in the comparable quarter of the prior year [11] - Same property NOI increased by 2.3% during the quarter, driven by leasing activity across the portfolio [12] - The company ended the quarter with net debt to EBITDA of 6.7x, an improvement from 6.9x at the end of the second quarter [11] Business Line Data and Key Metrics Changes - Year-to-date leasing activity reached 482,000 sq ft, including 424,000 sq ft of comparable leasing, with a weighted average base rent spread of 21.7% [4] - In the third quarter, the company executed 143,000 sq ft of new retail leases, renewals, and extensions at an average base rent of $23 per sq ft [4] - The signed-not-open (SNO) pipeline stands at $5.5 million, representing approximately 5.3% of annual cash base rents [5] Market Data and Key Metrics Changes - The lease percentage of the Shops at Legacy stands at approximately 85% following recent leasing activity [6] - The company signed a significant lease at the Shops at Legacy, a 243,000 sq ft mixed-use lifestyle center located in Dallas, Texas [4] Company Strategy and Development Direction - The company is focused on enhancing liquidity through recent term loan financings and is targeting acquisitions that align with its leasing and operating strengths [7][9] - The company aims to achieve a positive cash leasing spread of 40%-60% across its vacant anchor spaces [5] - The management is optimistic about the value creation from the leasing progress and the potential earnings growth from the SNO pipeline [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing progress and the potential for increased foot traffic from new tenants [5] - The company anticipates that approximately 76% of the SNO pipeline will contribute to earnings growth in 2026, with full recognition in 2027 [5] - Management noted that the acquisition of the South Florida shopping center is expected to close before year-end, which aligns with their strategic goals [7] Other Important Information - The company repurchased $9.3 million of common stock at a weighted average purchase price of $16.27 per share [10] - The company raised its full-year 2025 guidance for core FFO to a range of $1.84-$1.87 per diluted share [12] Q&A Session Summary Question: What is the pro forma debt to EBITDA after the Florida acquisition? - Management indicated that the Florida asset will be temporarily financed through the line of credit, and the signed-not-open pipeline will reduce debt to EBITDA by about half a turn as it comes online [15] Question: When will the revenue from the signed-not-open pipeline start hitting? - Revenue from the pipeline is expected to start in early next year, with approximately $4 million recognized throughout 2026 [17] Question: Where is the most significant vacancy currently? - The largest vacancy is a 40,000 sq ft space at Carolina Pavilion, with management exploring options to fill it [18] Question: What is the status of structured investments maturing in early 2026? - Management expects Founders Square to pay off, while Waters Creek may either extend or pay off [21] Question: How is the company approaching capital allocation between buybacks and structured investments? - Management expressed a preference for buying back shares given the current stock price and dividend yield [25] Question: What is the outlook for the acquisition environment in 2026? - Management indicated a strong pipeline of potential sell opportunities and a focus on matching them with good acquisition candidates [51]