BBB Foods (TBBB) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Company Participants Anthony Hatoum - Founder, Chairman and CEOEduardo Pizzuto - CFOAlvaro Garcia - Associate PartnerAlejandro Fuchs - Vice President , Equity ResearchUlises Argote Bolio - Executive DirectorHéctor Maya - Associate Director - Equity Research Conference Call Participants Robert Ford Aguilar - Senior AnalystJoseph Giordano - Equity Research AnalystAndrew Ruben - AnalystPablo Valles García - Senior Investment AnalystJim Luther - An ...

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 per share for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [12] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [12] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [5] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [6] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [7] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [8][24] Market Data and Key Metrics Changes - U.S. real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [6] - The Pacific Northwest portfolio saw the strongest NOI growth of 6.6%, driven by return-to-office mandates [19] - In Ireland, same property NOI in the apartment portfolio increased by 3.5%, supported by occupancy growth and strong operating expense management [21] Company Strategy and Development Direction - The company is focused on simplifying its business through asset sales, reducing unsecured debt, and increasing free cash flow [10] - The asset sale program aims to generate between $400 million to $450 million in cash by year-end, with $150 million to $200 million expected to close by the end of Q2 [10] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong Q2 pipeline [9] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [6] - Management noted that the current economic environment presents attractive investment opportunities, and the company is well-positioned to capitalize on these [9] Other Important Information - The company has reduced its unsecured debt by $250 million over the last two years and plans to continue this trend [10] - Total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and an effective interest rate of 4.7% [16] - The company has a strong pipeline of advanced stages totaling $375 million in its new U.K. single-family rental platform [26] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% annual growth in fees, supported by a strong pipeline and future fundings [29][30] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [31][32][34] Question: Stock buyback plans - Management indicated that current cash usage is focused on paying down unsecured debt, with stock buybacks reconsidered post-debt reduction [35][36][37] Question: Dispositions and cap rates - Management confirmed that dispositions are well underway, with most expected to close in June, but refrained from commenting on specific cap rates [40][42] Question: Loan origination rates - Management noted some downward pressure on spreads due to increased competition, but still finds the rates attractive relative to alternatives [49][51] Question: Exposure to government-backed housing - Management reported that about 15% of tenants have some form of HUD backing, but expressed no immediate concerns regarding capital availability [56][60]

Financial Data and Key Metrics Changes - The company reported Q1 2025 adjusted EPS of $1.44, an increase from $1.34 in the prior period [6][28] - Full year 2025 adjusted EPS guidance remains at $4.3 to $4.7, with 2026 EPS guidance of $4.8 to $5.3 [6] - Q1 2025 GAAP earnings were $942 million or $1.44 per share, compared to $854 million or $1.34 per share in Q1 2024 [28][29] Business Line Data and Key Metrics Changes - Sempra California contributed $88 million from higher CPUC-based operating margin, while Sempra Texas saw a decrease of $37 million in equity earnings due to higher interest and operating expenses [29] - Sempra Infrastructure reported a slight decrease of $2 million, primarily due to lower asset optimization [29] Market Data and Key Metrics Changes - In Texas, ERCOT projected peak load growth to increase to 150 gigawatts by 2030, prompting a regional transmission plan with investments estimated between $32 billion and $35 billion [13][14] - The company is well-positioned to construct a significant portion of the required transmission infrastructure in Texas [14] Company Strategy and Development Direction - The company plans to invest approximately $13 billion in energy infrastructure in 2025, with over $10 billion targeted for U.S. Utilities [8] - Initiatives include selling non-core assets and recycling capital to finance future growth, with a focus on improving regulatory compact in Texas and California [9][10] - The "Fit for 2025" campaign aims to reduce the company's cost structure and improve productivity through technology adoption, including artificial intelligence [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth opportunities and the importance of executing well in the near term [11][12] - The company is focused on delivering safe and reliable energy while enhancing affordability for customers [11][21] Other Important Information - The CPUC approved an expansion of West Side Canal battery storage, adding 100 megawatts of capacity [19] - The company is actively monitoring tariff impacts and has taken steps to mitigate risks associated with supply chain disruptions [62] Q&A Session Summary Question: Update on the SiP process and timeline - Management clarified the timeline for KKR's offer and subsequent responses, indicating an update will be provided in the Q2 call [35][36] Question: Texas growth and transmission projects - Management highlighted significant growth metrics in Texas, including a 3% increase in premise growth and a 66% increase in new transmission requests [40][41] Question: Specifics on the Fit for 2025 program - Management discussed initiatives to improve cost structure and customer service, including voluntary retirement programs and technology investments [46][48] Question: LNG project development and macroeconomic uncertainties - Management reassured that Port Arthur Phase II is on track, with strong commercial interest and ongoing development [57][60] Question: Tariff exposure and capital plan - Management indicated that tariff impacts are manageable, with most equipment sourced domestically, limiting exposure to around 2% or 3% [62][63] Question: Unified Tracker Bill in Texas - Management discussed the potential benefits of the Unified Tracker Bill and its interaction with rate case filings [69][72] Question: Wildfire fund changes in California - Management expressed optimism about potential changes to wildfire fund legislation and its implications for risk management [75][78]

Financial Data and Key Metrics Changes - The company reported a net income of $9.1 million or $0.05 per diluted share for Q1 2025, compared to $5.7 million or $0.03 per diluted share in Q4 2024 [19] - Adjusted EBITDA for Q1 2025 was $46.4 million, down from $50.9 million in Q4 2024, primarily due to lower oil revenue [20] - Revenue for Q1 2025 was $79.1 million, with oil accounting for 97% of total revenue, while total sales volumes were 18,392 BOE per day, exceeding guidance [17][14] Business Line Data and Key Metrics Changes - The company sold 12,074 barrels of oil per day, exceeding the high end of guidance despite weather-related downtime [9] - Seven wells were drilled, completed, and placed on production in Q1 2025, with production from these assets averaging over 2,500 BOE per day in April, representing a 9% increase over initial estimates [10][11] - The acquisition of LimeRock CVP assets added over 40 gross drilling locations to the existing inventory, enhancing production metrics [10] Market Data and Key Metrics Changes - The overall realized price increased by 4% to $47.78 per BOE in Q1 2025 from $46.14 per BOE in Q4 2024 [15] - The average crude oil differential from NYMEX WTI futures pricing improved to negative $0.89 per barrel in Q1 2025 from negative $1.42 per barrel in Q4 2024 [16] - The company anticipates a modest reduction in production during the last half of the year, guiding to approximately 2% annual production growth over 2024 [12] Company Strategy and Development Direction - The company emphasizes a value-focused strategy aimed at maximizing cash flow generation and maintaining production levels in low price environments [25][26] - Capital spending for 2025 is expected to be reduced by more than 47%, with a focus on debt reduction and maintaining financial flexibility [12][23] - The company is actively pursuing organic growth opportunities in the Central Basin Platform while remaining selective in acquisitions [61][62] Management's Comments on Operating Environment and Future Outlook - Management noted the high level of oil price volatility and emphasized the importance of maintaining a strong financial position to navigate these challenges [25][28] - The company plans to allocate more cash flow to debt reduction rather than increasing capital spending, even if oil prices recover [27][28] - Management expressed confidence in the production outperformance from new wells and the benefits of the LimeRock acquisition to support future growth [12][28] Other Important Information - The company ended the period with $460 million drawn on its credit facility, with a leverage ratio of 1.9 times [20] - The company has approximately 1.7 million barrels of oil hedged for the last nine months of 2025, providing downside protection at an average price of $64.44 [21] - The company is focusing on acquiring and leasing opportunities in the Central Basin Platform to expand its inventory life [75] Q&A Session Summary Question: Does the company have a leverage target in mind for debt reduction? - Management stated the long-term goal for the leverage ratio is to be comfortably below one, emphasizing the importance of reducing debt in a low price environment [30][32] Question: Will cost improvements affect the capital spending guidance? - Management confirmed that current capital spending forecasts include current prices, and any cost reductions would be directed towards debt repayment rather than increasing project numbers [34][38] Question: What is the state of activity in the Central Basin Platform? - Management noted a mix of interest in the Central Basin Platform, with some larger operators entering the market, while the company remains focused on acquiring undervalued assets [56][60]

Innovative Industrial Properties (IIPR) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Company Participants Eli Kanter - Senior AssociateAlan Gold - Executive ChairmanPaul Smithers - President, CEO & DirectorBen Regin - Chief Investment OfficerDavid Smith - CFO & TreasurerTom Catherwood - Managing DirectorBill Kirk - Managing DirectorAaron Grey - Managing Director, Head of Consumer Research Conference Call Participants Connor Mitchell - Equity Research Analyst Operator Good day, and welcome to the Innovativ ...

BlackRock TCP Capital (TCPC) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Speaker0 Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Capital Corp. Q1 twenty twenty five Earnings Call. Today's conference call is being recorded for replay purposes. During the presentation, all participants will be in a listen only mode. A question and answer session will follow the company's formal remarks. I will repeat these instructions before we begin the Q and A session. And now I would like to tu ...

BBB Foods (TBBB) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Speaker0 Good morning, everyone. My name is Leonor, and I will be your conference operator. Welcome to Tiendas Tresbe First Quarter twenty twenty five Conference Call. All lines have been placed on mute to prevent any background noise. There will be a question and answer session after the speakers' remarks, and instructions will be given at that time. Please ensure that your full name is displayed correctly on Zoom. If not, please take a moment ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted EBITDA of $228 million, a decline of 12% year-over-year, primarily due to lower performance fee earnings and a comparison to a one-time private market catch-up fee from the previous year [21][22] - Economic earnings per share were $5.2, reflecting a 3% year-over-year decline, influenced by a $77 million write-down related to certain mutual fund assets [22] - The company expects adjusted EBITDA for Q2 2025 to be between $210 million and $225 million, based on current AUM levels [23] Business Line Data and Key Metrics Changes - The company generated a record $14 billion in net client cash inflows into alternative strategies, which offset outflows from the long-only business [5] - Private markets affiliates raised $3 billion in the quarter, primarily in credit, infrastructure, and private market solutions [14] - Liquid alternatives saw net inflows of $10 billion, driven mainly by tax-aware solutions, marking the strongest quarterly flow number in liquid alternatives in the company's history [15][16] Market Data and Key Metrics Changes - The company experienced net outflows of approximately $14 billion in equities, reflecting industry headwinds [17] - Multi-asset and fixed income net flows were flat during the quarter, indicating a stable but challenging environment for these asset classes [17] Company Strategy and Development Direction - The company is focusing on strategic capital allocation towards areas of secular growth, particularly in alternatives, to achieve sustained organic growth [5][6] - New partnerships have been established with Northbridge, Verition, and Qualitas Energy, expected to add approximately $18 billion in AUM across liquid alternatives and private markets [10][11] - The company aims to enhance its competitive position by investing in high-quality independent firms and expanding its capabilities in product development and distribution [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate incremental shareholder value over time, despite recent market volatility [12] - The company anticipates that the contribution from alternatives will further increase, with expectations that alternatives will represent over 50% of earnings in the future [55] - The ongoing demand for investments in renewable energy and energy transition assets is highlighted as a critical driver for future growth [8] Other Important Information - The company repurchased $173 million in shares during Q1 2025 and plans to repurchase approximately $400 million for the full year, subject to market conditions [25][26] - The balance sheet remains strong, with a liquidity position supported by a $1.25 billion undrawn revolver [24] Q&A Session Summary Question: What drives the decision to part with one of the affiliates, especially in private markets? - Management clarified that the strategy remains unchanged, focusing on partnerships with independent firms. Decisions to evolve relationships are mutually agreed upon and reflect the affiliates' changing circumstances [29][32][34] Question: Can you discuss the diversity of flows in liquid alternatives and the outlook? - Management noted that liquid alternatives had a standout quarter with $10 billion in net inflows, primarily driven by tax-aware solutions, and expressed confidence in the continued attractiveness of high-quality liquid alternative firms [37][40] Question: What are the dynamics in the equity market regarding investor allocations? - Management acknowledged headwinds in equities but noted opportunities for high-quality investment teams to differentiate themselves, particularly with a focus on quality-oriented strategies [42][44] Question: Can you clarify the expected 8% accretion from new investments? - Management confirmed that the 8% accretion is based on annualized economic earnings per share, expected to begin in 2026, following the completion of the PepperTree sale and other investments [47][50] Question: How is the distribution expansion for existing products going? - Management highlighted the growth of alternatives AUM on the U.S. Wealth platform and the successful launch of new products, indicating a strong pipeline for future product development [58][62]

Financial Data and Key Metrics Changes - The company generated total revenues of $71.7 million, a 6.5% decrease from the previous quarter, primarily due to tenant defaults [14][15] - Adjusted funds from operations (AFFO) for the first quarter were $55.3 million, or $1.94 per share, reflecting a 13% decrease compared to the fourth quarter of 2024 [15][16] - The balance sheet remained solid with $2.6 billion in gross assets, nearly $2.2 billion of which are unencumbered [15][16] Business Line Data and Key Metrics Changes - The company acquired a $7.8 million industrial facility in Maryland and executed two new leases totaling 211,000 square feet [4][12] - A cultivation facility in Michigan was sold for $9 million, demonstrating the company's focus on strategic investments and capital recycling [4][12] Market Data and Key Metrics Changes - The U.S. cannabis sales are forecasted to grow by 7% to $33.5 billion in 2025, with a projected compounded annual growth rate of 7.2% from 2024 to 2029, reaching $44.4 billion by 2029 [10][11] - The company is facing competition from the illicit market, price compression, and market maturity, which may impact investor sentiment and operator performance [11] Company Strategy and Development Direction - The company is proactively working to refresh its tenant base to position itself for sustainable growth and financial performance [6][10] - A strategic initiative was announced to strengthen tenant credit profiles and optimize occupancy across the portfolio [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the ongoing uncertainty in the macroeconomic environment and the regulated cannabis market [3][4] - The management team is optimistic about the opportunities ahead and believes they are effectively managing complex situations to protect shareholder value [7][10] Other Important Information - The company repurchased $20 million of its common stock and retired nearly $9 million of debt at a discount, highlighting a disciplined approach to capital allocation [5][16] - Default notices were issued to several tenants, and the company is actively pursuing legal remedies to enhance the performance of its real estate portfolio [8][9] Q&A Session Summary Question: Is the 205,000 square feet leased in Michigan a PharmaCann facility? - Yes, it is a PharmaCann facility, and the company is proud of re-tenanting it quickly with a high-quality tenant [19] Question: How did the recent large block leasing transactions come together? - The sourcing of tenants comes from various methods, leveraging strong relationships and networking in the industry [24] Question: Are there any other tenants of concern since the tenant refresh program was announced? - The company is monitoring all tenants and is confident in managing the portfolio, although the macro environment remains challenging [29] Question: What is the impact of security deposits on revenue moving forward? - Approximately $5.8 million of security deposits were applied for the quarter, which will not be available in subsequent quarters [37] Question: How does the company ensure compliance when taking possession of properties? - The company utilizes management service agreements to facilitate transitions and ensure compliance with regulations [46] Question: What are the potential opportunities for deploying liquidity? - The company is evaluating various opportunities and remains focused on investments that can provide accretive returns based on their cost of capital [58]

Financial Data and Key Metrics Changes - The company reported Q1 2025 adjusted EPS of $1.44, an increase from $1.34 in the prior period, affirming full year 2025 adjusted EPS guidance of $4.3 to $4.7 and 2026 EPS guidance of $4.8 to $5.3 [5][27] - Q1 2025 GAAP earnings were $942 million or $1.44 per share, compared to $854 million or $1.34 per share in Q1 2024 [27][28] Business Line Data and Key Metrics Changes - Sempra California contributed $88 million from higher CPUC-based operating margin, while Sempra Texas saw a decrease of $37 million in equity earnings due to higher interest and operating expenses [28] - Sempra Infrastructure reported a slight decrease of $2 million, primarily due to lower asset optimization [28] Market Data and Key Metrics Changes - In Texas, ERCOT projected peak load growth to increase to 150 gigawatts by 2030, with significant investments proposed for the transmission grid totaling between $32 billion and $35 billion [12][13] - The legislative session in Texas is being monitored for potential beneficial impacts on the regulatory framework supporting transmission and distribution investments [14] Company Strategy and Development Direction - The company plans to invest approximately $13 billion in energy infrastructure in 2025, with over $10 billion targeted for U.S. Utilities [6] - The strategy includes selling non-core assets and recycling capital to finance future growth, with a focus on improving the regulatory compact in Texas and California [6][7] - The "Fit for 2025" campaign aims to reduce the company's cost structure and improve productivity through technology adoption, including artificial intelligence [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth opportunities and the importance of executing well in the near term to strengthen the company's value [10][11] - The management team is focused on delivering strategic initiatives that support consistent growth in earnings and cash flows [30] Other Important Information - The CPUC approved an expansion of West Side Canal battery storage, adding 100 megawatts of energy storage capacity [17] - The company is actively monitoring tariff impacts and has taken steps to mitigate risks by diversifying supplier sources and increasing domestic sourcing [60][61] Q&A Session Summary Question: Update on the SiP process and timeline - Management clarified the timeline for KKR's offer and subsequent responses, indicating an update will be provided in the Q2 call [34][36] Question: Insights on Texas growth and transmission projects - Management highlighted significant growth metrics in Texas, including a 3% increase in premise growth and a 66% increase in new transmission requests year-to-date [39][40] Question: Details on the Fit for 2025 program - Management discussed initiatives to improve cost structure and customer service, including voluntary retirement programs and technology investments [46][48] Question: LNG project development and macroeconomic uncertainties - Management reassured that Port Arthur Phase II is on track, emphasizing strong commercial interest and ongoing development progress [58][59] Question: Tariff exposure and capital plan impacts - Management indicated that tariff impacts are manageable, with most equipment sourced domestically, limiting direct impacts to around 2% or 3% of capital expenditures [60][62] Question: Unified Tracker Bill and its implications - Management discussed the potential benefits of the Unified Tracker Bill in Texas, which could streamline regulatory processes and improve credit quality [70][72] Question: Wildfire fund changes in California - Management expressed optimism about potential changes to wildfire fund legislation, emphasizing the importance of addressing wildfire risk for the company's operations [75][80]