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President & CEO Joshua Charlesworth clarified that all aspects of the turnaround plan have already been implemented and are underway simultaneously, with benefits like higher EBITDA and positive cash flow expected in the second half of the year. Regarding DFD doors, he stated that the company has expanded its scope beyond the initial 5-10% rationalization, now targeting the exit of 1,500 underperforming doors while adding 1,100 higher-volume, more profitable locations.

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CFO Jeremiah Ashukian explained that the company is highly focused on profitable growth and could exit as much as 5% to 10% of its U.S. doors this year. Regarding refranchising, he noted that while a process was launched in Q1, they will take their time to find the right long-term partners, with any proceeds used to pay down debt.

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CFO Jeremiah Ashukian explained that OpEx will be pressured in the first half of 2025 due to investments in operations leadership and logistics outsourcing, with leverage expected in the second half. CEO Josh Charlesworth added that as they expand with partners like Walmart and Target, they are continuously optimizing the network by closing lower-performing doors to ensure sustainable, profitable growth.

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CEO Joshua Charlesworth explained that profitability is driven by route density, not just individual store sales, and the expansion provides an opportunity to optimize the entire network. He emphasized partnering with high-traffic national players is the priority. He also confirmed progress on hub construction, stating that 3 hubs are now in construction and contracts are signed for 10, keeping them on track to support the accelerated U.S. expansion.

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CEO Tom Reeg reaffirmed his confidence, highlighting the strength of the company's diversified model. While acknowledging the soft summer in Vegas, he expressed strong optimism for Vegas post-Q3, continued confidence in the Regional segment, and growing confidence in Digital every quarter. Reeg identified the Digital segment's momentum, scaling, and trajectory toward its financial targets as the most underappreciated piece of the Caesars story.

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CEO Tom Reeg stated unequivocally that the company has not seen any change in consumer spending patterns in its business to date. CFO Bret Yunker confirmed there is no impact from supply chain issues on the company's current CapEx guidance.

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CEO Tom Reeg explained that success is judged by analyzing investment and market share gains on a county-by-county basis, with aggressiveness tailored to the property's competitive strength. President and COO Anthony Carano and Reeg highlighted the ongoing ~$160 million renovation of the Harvey's tower and casino in Lake Tahoe as the main chunky regional project, with spending split across 2024-2026.

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CEO Tom Reeg identified the multi-year, $160 million project at Harvey's Lake Tahoe as the most substantial ongoing renovation, which includes the casino floor, a room tower, and new restaurants. He also mentioned smaller, high-impact projects at Flamingo and Caesars Palace. Regarding the softer table drop, Reeg attributed it to timing shifts of a handful of large players who were present in the prior year's quarter but visited at different times this year.

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President & CEO Mark Manheimer affirmed their view on Sunbelt growth is unchanged, as it continues to drive retail opportunities. He acknowledged that while labor costs have impacted some tenants like restaurants, the issue has moderated, and most retailers in their portfolio feel bullish and are focused on growth.

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CEO Mark Manheimer confirmed that the private financing market remains challenging, requiring more 'handholding' on dispositions. He reiterated that they are not dogmatic about the investment-grade mix and will continue to chase the best risk-adjusted returns, noting the mix has varied widely in past quarters based on market opportunities.

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CEO Mark Manheimer stated that acquired properties have significantly better internal growth, with many featuring annual rent increases, compared to disposed assets which often have flat leases and shorter remaining terms. He also noted no material changes are expected in state diversification, though growth will likely continue to favor Sunbelt states, while remaining agnostic to location if market dynamics are strong.

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CEO William Carstanjen stated his belief that there is still a 'substantial runway' for growth in both states. He noted that key performance metrics remain very positive, giving the company optimism that its current strategy of continued investment and execution will yield further growth.

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CEO William C. Carstanjen clarified the pause on the large project is temporary and due to cost uncertainty from the macro environment, not a change in the project's viability. He highlighted numerous other growth avenues, including strong organic growth in Kentucky HRM properties, the continued ramp-up of The Rose, the Richmond and Henrico HRM projects in Virginia, and potential expansion in New Hampshire. He stated the company has many growth levers and is sequencing them prudently.

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CEO William C. Carstanjen acknowledged that the company monitors such economic data. However, he stated that the effect of wage growth is not currently a discernible or isolated factor impacting trends across their businesses, whether in Derby pricing or wagering, compared to other ongoing market dynamics.

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CEO William C. Carstanjen explained that the outperformance is due to HRMs being a newer, less mature product in these markets. The company is still driving growth through product improvements (better games, math), increasing market penetration, and growing customer awareness. He noted that because of these unique growth tailwinds and high margins, the HRM business has a different financial profile that doesn't track with more mature regional gaming markets.

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An executive explained that direct frontage is a significant benefit, leading to quicker re-tenanting and broader interest from potential users due to the desirable real estate fundamentals. Randall Starr, Co-CEO & CFO, added that the disposition strategy also involves recycling assets from non-target sectors like casual dining into preferred sectors such as medical, automotive, and QSRs. Another executive noted the strategy includes cap rate arbitrage, using top-tier brokers for sales to achieve lower cap rates while using smaller brokers and direct relationships for acquisitions.

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Co-CEO and Co-President Randall Starr confirmed that new leases have rental increases consistent with the historical 1.5-2% range and are a mix of absolute net and double-net structures. He highlighted that 95% of Q4 acquisitions were corporate credits. Starr added that sellers are primarily motivated private investors, as the current high-interest-rate environment has reduced competition from traditional 1031 exchange buyers.

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Co-CEO Stephen Preston noted that buyer volume has been 'relatively static' with no significant uptick from smaller buyers. Co-CEO Randy Starr added that these buyers face a 'lack of liquidity' from smaller banks, creating an opportunity for FrontView. Starr also stated the pipeline is diversified across 18 states, with notable presence in the Southeast, Mid-Atlantic, and Midwest.

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CEO Edward Pitoniak noted strong performance in Las Vegas, highlighting the Sphere as a significant new demand driver benefiting partners like The Venetian. Chief Accounting Officer Gabe Wasserman detailed the formal risk process, which includes rigorous quarterly management meetings to separately review the performance of all lease and loan investments.

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CEO Edward Pitoniak asserted that cap rates are more dependent on broader real estate capital market conditions than on quarter-to-quarter operator performance. President and COO John W. Payne added that despite some commentary, key metrics like MGM's 94% occupancy in Q3 remain strong. CFO David Kieske provided an update on experiential partners, noting Great Wolf's performance remains solid, Cabot benefits from avid high-end golfers, and Canyon Ranch is capitalizing on the wellness trend.

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CEO Robert Lynch responded that the site selection strategy has not changed but is proving effective in the current environment. While they will continue to develop in legacy markets, they are heavily investing in high-growth areas like Arizona, Texas, and the Southeast. He noted the drive-thru format is a key enabler, providing access to new types of real estate in these promising markets.

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CEO Peter Mavoides explained that the vast majority of the entertainment bucket consists of outlets like Dave & Buster's, Chicken and Pickle, and bowling alleys, which are food-driven entertainment experiences with fungible real estate. He stated that breaking it out further would not materially enhance disclosure. He also confirmed that they do think about the 15% soft cap as being applicable to that entertainment line item.

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CEO Peter Mavoides responded that geography is an output of their tenant relationships, and he expects geographic diversification to grow ratably with no material changes anticipated in the next 12 months. He confirmed that their relationships are bringing them into high-growth southern markets, but the inbound demand for capital has been proportionately similar to their existing geographic diversity.

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CEO W. Lehmkuhl stated that there has been no significant divergence, describing the customer base as very stable. He emphasized that the company's scale and diversification across all customer types, commodities, and regions provide a natural hedge, as a shift in one segment would likely be balanced by another.

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