Floris van Dijkum • Compass Point Research & Trading, LLC

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CEO Jeffrey Donnelly advocated for investors to use metrics that account for capital expenditures, such as free cash flow per share, to get a complete picture of returns. Regarding Chico, he stated it's too early for specific numbers but confirmed it's a significant opportunity for adding rooms or other developments, with any project likely being smaller in scale than the Sedona renovation.

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CEO Jeff Donnelly advocated for looking beyond RevPAR and EBITDA to after-CapEx metrics like free cash flow per share, arguing it better reflects true returns on capital. Regarding Chico, he stated it's too early for specific numbers but confirmed it's a significant opportunity for adding rooms or other developments like glamping, with any project requiring returns well in excess of 10%.

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CEO Jeff Donnelly stated that repurchasing shares is superior to acquisitions in the current market. President and COO Justin Leonard estimated that 70-75% of the portfolio by room count charges resort fees, noting implementation depends on brand permissions and market dynamics.

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CEO Jeff Donnelly confirmed that share repurchases are attractive, alongside internal ROI projects and paying down debt, given the lack of compelling external deals. He expects the portfolio to become more diversified over time. President & COO Justin Leonard explained that their high concentration of third-party managed assets gives them more direct control over operations, staffing, and cost-mitigation policies compared to peers with more brand-managed hotels.

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President and CFO Michael Franco noted that the full FFO impact from recent leasing would materialize significantly in 2027. Chairman and CEO Steven Roth expressed strong enthusiasm for the Penn District, stating that as rents approach the $150 per square foot achieved by neighbors, the property could 'easily' generate up to $400 million of NOI within five years from the existing inventory.

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Michael Franco, President & CFO, noted a very active retail leasing pipeline, particularly in the PENN District and Times Square, which is driving positive momentum. Regarding the debt maturity, he stated the current plan is to pay it off with cash on hand, given Vornado's strong liquidity position, while also monitoring financing markets for compelling alternatives.

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CFO Michael Bilerman emphasized that the primary goal is driving total rent and NOI, not just a specific metric like fixed CAM. He noted that while temporary occupancy is above historical norms, it provides a strategic pool for future upside with no set timeline for reduction. CEO Stephen Yalof highlighted the success of bringing in new brands like Marc Jacobs, which attract their own loyal customer base, creating a 'win-win' for the centers.

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President & CEO Stephen Yalof characterized the move as an evolution, not a pivot, leveraging the company's operational strengths to add value to open-air centers. He did not provide a target number. CFO & CIO Michael Bilerman explained that most tenants are on fixed CAM, which is included in their strong total rent spread calculations, leading to a high expense recovery rate of 87% that is expected to be similar in 2025.

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Executive Vice President of Leasing Justin Stein noted new tenant occupancy costs are in the 10-12% range. President and CEO Stephen Yalof clarified that high rent spreads are driven by replacing tenants with below-market rents and strong demand, not a direct indicator of future sales growth. CFO and CIO Michael Bilerman added that the acquisition strategy is focused on assets where Tanger can add value, acknowledging a competitive market.

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CFO Brian McDade reported the SNO pipeline at 340 basis points and stated the current focus is on optimizing occupancy by improving the merchandise mix. Chairman, CEO & President David Simon downplayed the 99.3% occupancy figure as a fluctuating data point, emphasizing that the goal is to lease every space to the highest-productivity tenant.

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CFO Brian McDade stated the SNO pipeline is at 340 basis points and the current focus is on optimizing occupancy by improving the merchandise mix. Chairman, CEO & President David Simon added that while the 99.3% occupancy is a positive data point, the primary goal is leasing every space to the most productive tenant, not hitting a specific number.

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Chairman and CEO Thomas Baltimore stated that he expects the 'vast majority' of the non-core portfolio to be sold by the end of next year, though a 'straggler or two' might remain. Regarding the Hilton Hawaiian Village, he expressed confidence that its performance in 2026 would be significantly closer to its peak EBITDA of approximately $185 million, implying substantial recovery during that year.

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CFO Heath Fear explained that the effective yield on the Legacy West acquisition and the sell yield on the contributed power centers were both around 6.5%, making it an elegant transaction. CEO John Kite attributed the high recovery ratio to a long-term strategy of converting leases to fixed CAM, aggressive expense control, and a disciplined operational focus, noting 95% of new deals this year have been fixed CAM.

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EVP & COO David Jamieson cited multi-year service contracts and data analytics. SVP Will Teichman added that Kimco is transforming its lease administration function, using AI and process simplification to enhance recovery rates and accelerate collections, applying lessons from prior M&A integrations.

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President & CEO Kenneth Bernstein confirmed they can recycle capital from suburban assets to fund street retail growth, with a goal to make the core portfolio a vast majority street/urban and potentially double its size. EVP & CIO Reginald Livingston noted that while cap rates are tight, they can find attractive opportunities that meet their criteria.

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President & CEO Lisa Palmer confirmed their thinking has changed, stating they believe they can continue to push occupancy beyond historical peaks. She noted that strategic vacancy for redevelopments can sometimes obscure the headline number, but the push for higher occupancy is ongoing. COO Alan Roth added emphatically, 'There is no ceiling,' while also noting the commitment to take space offline for accretive redevelopments.

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CEO Lisa Palmer confirmed their thinking has evolved, and they now believe they can sustain higher occupancy levels than in previous cycles. She noted that they continue to surpass prior peaks. However, she and COO Alan Roth cautioned that they will strategically take space offline for accretive redevelopments, which can temporarily impact the reported occupancy figures.

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Nicholas Wibbenmeyer, West Region President and CIO, confirmed the Brentwood asset is heavily trafficked and would rank at the top end of the portfolio. On the second question, President and CEO Lisa Palmer explained that the scarcity of new, high-quality retail space provides a tailwind. Retailers need the best locations to drive sales and combat margin pressure, which positions high-quality landlords like Regency to continue growing NOI.

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Chairman & CEO Jeffrey Olson confirmed that the company will test the disposition market in the fall and that all assets, including those in the core New York metro market, are potentially for sale at the right price. He noted that the success of their capital recycling has 'supercharged' the company. He also affirmed that strong tenant demand from underrepresented big-box retailers is making them more confident in deploying capital for redevelopments.

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CEO David Lukes confirmed that using OP units is an option they offer sellers, describing it as an 'arrow in the quiver,' but noted that success in structuring such deals has been limited in the company's short history. He explained that the primary value-add comes from driving rent growth on renewals and leasing vacant space at a mark-to-market, rather than significant occupancy gains, as they typically buy highly-occupied assets. CFO Conor Fennerty supported this, noting the portfolio lease rate only moved from mid-95% to 96.1% since year-end.

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President and CEO Leslie D. Hale responded that RLJ's disposition strategy is opportunistic rather than programmatic. She explained that in the current climate, deals that can get done are typically smaller or hold strategic value for a specific buyer. She mentioned they are currently looking at one other potential asset sale but cautioned that deals not already under contract are less likely to close given the market uncertainty.

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EVP and CFO Sean Mahoney reported that unlevered IRRs on conversions are tracking ahead of the 50%+ target. COO Thomas Bardenett added that these projects see higher EBITDA returns from better brand contribution and customer mix. Mahoney noted that portfolio occupancy is at 94% of 2019 levels, with corporate and group segments around 90%, indicating significant room for demand growth.

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President and CEO Leslie D. Hale reiterated that RLJ will continue to be opportunistic portfolio managers. She stated that the bid-ask spread remains wide, which is constraining the transaction market in the near term. She anticipates the market could improve in the second half of 2025 as interest rates and the post-election environment settle.

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President and CEO James Risoleo described the market as being in a 'wait-and-see' mode, with some deal pauses driven by debt market conditions. He believes the market could open up later in the year. He noted that pricing for luxury and upper-upscale assets remains high, supported by low new supply. While Host is always 'testing' the market for its assets, it is under no pressure to sell and has nothing of meaningful size formally listed.

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EVP and CFO Sourav Ghosh confirmed there is an 8-point occupancy gap to the portfolio's peak level. He stated that the expectation for 2025 occupancy is to be similar to 2024 levels. He did not provide a specific breakdown between resort and urban property occupancy on the call.

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CEO Jim Taylor emphasized that these are highly valuable, pre-leased projects that create substantial value. President and COO Brian Finnegan provided specific updates, confirming the projects are on time and on budget. He stressed that they are consistent with Brixmor's strategy of executing pre-leased projects with fixed costs, ensuring strong, visible returns.

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CEO James Taylor stated that acquisitions are opportunistic and not guided by timing. Regarding Brittain Plaza, EVP & CIO Mark Horgan highlighted immediate tenant interest for the 70% occupied center. Taylor confirmed its occupancy will remain lower during the repositioning, which he views as a significant value-creation opportunity.

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CEO James Taylor stated that acquisitions are opportunistic with no guided timing. Regarding Britain Plaza, he described it as a 70% occupied asset in a gentrifying Tampa submarket. EVP & CIO Mark Horgan added that the team is already working on redevelopment plans, fueled by strong tenant interest, viewing it as a significant value-creation opportunity.

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Jon Bortz, Chairman and CEO, identified consistent economic growth (2%+ GDP) as the primary condition needed. He explained that with minimal new supply in their markets, this economic backdrop would drive occupancy and pricing power, potentially leading to mid-to-upper single-digit RevPAR growth. Bortz expressed confidence in achieving the target over the next three years, stating it's a matter of 'when, not if,' contingent on a stable and growing economy.

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CEO Justin Knight stated that share repurchases have been the most attractive use of capital recently and that the portfolio's urban exposure is stable at just under 40% by EBITDA. CFO Liz Perkins addressed the debt maturities, noting she is beginning discussions with lenders and would prefer five-year terms, though the market has recently been tighter. She indicated some maturing debt has very attractive rates that will be difficult to replace.

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Bryan Giglia, Chief Executive Officer, affirmed the core strategy of recycling capital and expressed a desire to accelerate this activity in a more functional transaction market. He indicated that this could involve trading a single large asset for two smaller ones to reduce concentration, but also stressed that the company is not afraid of concentration in high-quality locations.

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CEO Bryan Giglia described the San Antonio retail opportunity as unique and significant within the portfolio, potentially adding hundreds of thousands in incremental income. He noted that while other properties have some development potential on excess land, there are no other ancillary opportunities of that specific scale, and billboard potential is generally limited.

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CEO Donald Wood stated that capital allocation is driven by the best risk-adjusted IRR, not a preference for a specific property type, emphasizing they don't 'fall in love with properties.' EVP & CFO Daniel Guglielmone quantified the SNO pipeline at ~$42 million in total rent, with about 80% expected to commence in 2025, weighted toward the second half of the year.

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Chairman & CEO Owen Thomas identified three potential catalysts: lower interest rates, the reopening of the CMBS market for office assets providing buyer liquidity, and 'fatigue on the sales side' where owners eventually move forward with strategic dispositions. He reiterated that BXP's look-through cost of equity is in the mid-6% range, providing a benchmark for evaluating new investment opportunities.

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CEO David Lukes and CFO Conor Fennerty explained that while some local tenants might have a ceiling on rent payments, the portfolio keeps up with inflation well. Mr. Lukes stated renewal rates are in the mid-90s for nationals and mid-80s for locals. Mr. Fennerty outlined that Curbline's debt strategy will be flexible, likely tilting toward the efficient unsecured market while maintaining relationships with mortgage lenders.

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