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SVP Grant Campbell disclosed acquisition cap rates in the high-4% range, with the Colorado deal benefiting from attractive assumed debt. President & CEO Anne Olson explained that while tertiary markets are stable, the strategic focus is on recycling capital into institutional markets like Salt Lake City to improve the company's valuation and cost of capital. She confirmed that scaling in Salt Lake City is the top priority to achieve operational efficiency before considering other new markets.

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President and CEO Anne Olson attributed higher retention to the rising cost of homeownership, which has reduced move-outs for home purchases from 25% to around 12-15%. She explained that renewal pricing is handled on a case-by-case basis to maximize total property revenue, balancing retention with market rates. CFO Bhairav Patel clarified that while utility costs and RUBS revenue gross up the income statement, the company is largely hedged on the bottom line as it passes through about 80% of the costs.

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EVP & CFO Bill Monroe stated that while there is significant cushion on the revolver, the plan is to use capital recycling to fund the pipeline and maintain leverage at current levels, confirming this is the preferred approach over using the ATM. President & CEO Dave Dupuy added that two other notes totaling ~$4.1M are performing as expected and that the tenant watch list remains consistent at 15-20 names, with no other top-10 tenants included.

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CFO Bill Monroe stated that while CHCT has significant cushion on its credit facility, the plan is to keep leverage at current levels by timing dispositions with acquisitions, confirming this is the preferred method over using the ATM. CEO Dave Dupuy added that the remaining ~$4.1M in notes receivable are performing well and that providing large tenant loans is not a core strategy. He also noted the tenant watch list remains stable at 15-20 names with no other top-10 tenants included.

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David Dupuy, an executive, stated that they expect more clarity on the operator's sale process by the end of Q2 or early Q3 2025. He confirmed that while the acquisition pipeline is healthy, the company is avoiding equity issuance at current prices and will instead use selective asset sales and revolver draws to fund deals. Dupuy noted that share buybacks are a board-level discussion but executing on the existing deal pipeline is the primary focus, making buybacks a lower priority.

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Executive David Dupuy explained that while a small payment was received, the focus is on achieving consistent payments or a sale of the tenant's hospitals, with more clarity expected in coming quarters. Regarding funding, Dupuy stated that all options are considered, but the immediate plan for the $33 million in Q1 acquisitions is to use the revolver and then deleverage through asset sales to maintain modest leverage, while ATM issuance remains an option if the share price improves.

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CEO David Dupuy explained that consultants have stabilized the geriatric tenant's operations, leading to improved census and optimism for a resolution within a couple of quarters. He confirmed that while there are 15-20 watch list tenants, no other top 10 tenants are on it, and detailed other modest loans. Dupuy also noted that the company is focused on its five ongoing redevelopment projects, which are like 'embedded acquisitions,' and will continue to evaluate capital recycling to fund growth while maintaining low leverage.

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CEO Donald Wood explained that Federal Realty has always favored larger centers for their densification potential. He noted that current market unpredictability makes underwriting difficult, causing him to seek more visibility over the next 30-90 days. This suggests a cautious approach to new large deals until the economic landscape becomes clearer.

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CIO Ben Regin stated the quick re-leasing reflects a strong track record and robust inbound interest. CFO David Smith quantified that $5.8 million in security deposits were applied in Q1, which are now exhausted for key defaulted tenants, and that about $4.5 million in cash rent was collected from them. Ben Regin also noted that regulatory approval timelines are a normal part of the business and do not change their market views.

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An executive, likely Bill Ackman, clarified that David O'Reilly will remain CEO of the overall company, focusing on the real estate operations, while Ackman and Ryan Israel will focus on acquiring new businesses. Ackman stated that achieving an investment-grade rating will be aided by the $900 million capital infusion and the diversification into durable, cash-flowing businesses, which strengthens the parent company's credit profile. The cash is intended for acquiring new businesses, not for paying down debt at the real estate subsidiary, which is expected to become increasingly self-funding.

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CEO Victor Coleman stated the disposition strategy remains consistent: selling non-core assets that don't materially impact FFO to a steady market of users and high-net-worth buyers. President Mark Lammas projected that Q1 2025 could represent the bottom for occupancy, with stabilization and growth expected to begin in Q3, driven by significantly lower lease expirations. EVP of Leasing Art Suazo added that an 18% increase in tour activity supports this optimistic outlook.

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CFO Harout Diramerian confirmed the cash NOI guidance reflects a combination of occupancy timing and the structure of new deals with upfront free rent. Regarding Quixote, he explained the impairment was a non-cash GAAP accounting requirement on goodwill, stemming from a slower-than-anticipated post-strike recovery, and does not impact their positive view of the business's future or the value of its physical assets.

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President and CEO Jordan Kaplan confirmed they have not yet seen macro volatility impact their tenants, though they remain watchful for a potential recession. Regarding the Westwood development, Kaplan stated that planning is already underway with a goal to complete the new building within the next 3-4 years, as it is a by-right project.

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CEO James Taylor responded that the portfolio's underlying credit base is the best it has ever been, evidenced by record-low small shop move-outs for the second consecutive year. He noted the watch list is smaller than in the past and is more focused on categories like drugstores and theaters, which each represent less than 1% of ABR.

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CEO James Taylor stated the portfolio's credit base is the strongest it's ever been, with a smaller watch list focused on categories like drugstores and theaters. President & COO Brian Finnegan provided a fluid update on bankruptcy processes, noting some leases are in bidding processes while others were already acquired at auction, expressing confidence in re-leasing prospects due to strong demand.

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Chairman and CEO Richard Campo acknowledged that buyers are betting on outsized rent growth in 2026-2027, a pattern supported by historical post-downturn recoveries. He believes rising NOIs in 2025 will help bridge the valuation gap, even with stable cap rates. However, he conceded that if this NOI growth fails to materialize and interest rates do not decline, cap rates would need to rise, or the market could face a stalemate.

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Executive Michael Rispoli stated that the office leasing pipeline remains strong and attributed the adjusted EBITDA guidance change to the treatment of legal settlements, noting a large favorable settlement in the prior year. Executive Lou Alvarado confirmed continued tailwinds for industrial and retail, including data centers. CEO Barry Gosin detailed the European expansion strategy, emphasizing hiring top talent in new markets like Germany and France, replicating their successful U.S. model.

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Executive Glen Weiss characterized the Sephora deal as a non-market, very short-term transaction. President and CFO Michael Franco added that the location was not in the prime Madison Avenue corridor. Regarding financing, Franco stated the 7.5% rate is likely higher than what could be achieved today and expects the 731 Lexington refinancing to be done at a much tighter rate.

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Glen Weiss and Michael Franco explained the Sephora deal was a short-term, non-market transaction outside the prime retail corridor. Franco added that the 7.5% refinancing rate is already outdated, with current rates likely 50 bps lower, and that the 731 Lexington refinancing will be at a much tighter spread due to the long-term Bloomberg lease.

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