Jay Kornreich • Wedbush Securities

Answer

CEO Sumit Roy expressed hope that an improving cost of capital would allow for more U.S. deals, noting they passed on attractive U.S. volume in Q1 due to insufficient initial spreads. For new markets, he reiterated interest in Poland but said the current focus is on deepening their footprint in existing geographies.

Ask Fintool Equity Research AI

Answer

CEO Sumit Roy said it was too early to provide specifics on the fund's size or timeline. CFO Jonathan Pong detailed that the acquisition pipeline would be funded through a combination of cash, unsettled forward equity, free cash flow, and dispositions, confirming the $4B target was based on achieving accretive spreads at the current cost of capital.

Ask Fintool Equity Research AI

Answer

CEO Sumit Roy stated that Europe has presented the best opportunities year-to-date, representing 56% of volume, which he views as a strategic advantage of the company's global platform. He confirmed that momentum in Europe is expected to continue and that the company is constantly evaluating expansion into new countries for the right opportunity. However, he noted that the investment mix is expected to revert to more historical U.S. vs. international norms in the fourth quarter.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Thomas Baltimore expressed strong bullishness on Orlando, citing massive tourism numbers, significant investments from Universal and Disney, and the enhanced meeting space at the Bonnet Creek complex, stating he expects to exceed the $90M EBITDA forecast. On transient behavior, he noted that while there is caution, they are not seeing a recessionary environment, with April results coming in strong.

Ask Fintool Equity Research AI

Answer

CFO Sean Dell'Orto explained the EBITDA range reflects uncertainty around the pace of Hawaii's recovery and the impact of a soft Q1. Chairman and CEO Thomas Baltimore noted New Orleans was very strong, with the headquarter hotel seeing mid-teens RevPAR growth during the Super Bowl, contributing to an expected 5-7% RevPAR growth for the market in Q1.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Thomas Baltimore did not provide a specific 2025 quarterly outlook for Hawaii but reiterated his long-term bullish thesis based on barriers to entry and the eventual return of international travel. CFO Sean Dell'Orto reported that October RevPAR was trending flat to down 1%, but would be approximately flat after adjusting for an 80-basis-point negative impact from Hurricane Milton.

Ask Fintool Equity Research AI

Answer

Executive Patrick Chaffin responded that spring break performance was very encouraging and that they are seeing a positive 'halo effect' in the Orlando market from the upcoming Epic Universe opening. He noted that while they are watching trends closely, they are managing rate effectively and believe their properties are well-positioned as 'staycation' destinations if consumers pull back on international travel.

Ask Fintool Equity Research AI

Answer

EVP and CFO Mark Fioravanti confirmed the opportunity to push rates higher for 2026 as more high-rated corporate business is booked closer to the travel date. For the Entertainment segment, executives highlighted excitement around the recent investment in Southern Entertainment, while Mark Fioravanti and Chairman and CEO Colin Reed hinted that other significant opportunities are currently being evaluated but are not yet ready to be announced.

Ask Fintool Equity Research AI

Answer

EVP & COO Patrick Chaffin, President & CFO Mark Fioravanti, and CEO Colin Reed explained that rate growth has been a 'full court press' across all segments (Corporate, Association, SMERF), with nearly identical growth rates. Mark Fioravanti attributed the Q3 Entertainment softness to planned construction disruption at the W Austin and the future Category 10 venue. He and Colin Reed expressed excitement for a Q4 pickup, driven by the successful soft opening of Category 10.

Ask Fintool Equity Research AI

Answer

CFO Liz Perkins responded that group booking trends remain strong, particularly for the smaller, near-term groups typical for their portfolio, with no signs of hesitation. CEO Justin Knight explained that while they are continuously in the market, scaling up asset sales would likely involve a large number of individual transactions over a 3-to-6-month period, as there is currently a lack of portfolio bidders.

Ask Fintool Equity Research AI

Answer

CFO Liz Perkins explained that while outperformance could come from both segments, the guidance midpoint relies more on midweek occupancy and ADR growth. She projected a slower start to the year, partly due to weather, with RevPAR growth expected to accelerate as the year progresses and the newly acquired Madison Embassy Suites hotel continues to ramp up.

Ask Fintool Equity Research AI

Answer

CEO Justin Knight described the transaction market as having ample opportunities but noted that a wide bid-ask spread persists, with sellers reluctant to adjust pricing, making share repurchases relatively more attractive. He observed that most activity is in smaller, individual assets. CFO Liz Perkins addressed the group segment (14% of demand), stating it has a short booking window, making long-term visibility limited, but performance has been consistently strong and is expected to remain so.

Ask Fintool Equity Research AI

Answer

CEO Jon Bortz explained the revised outlook is influenced by both current factors, like reduced government and international travel, and the potential for a future economic slowdown. He clarified that for the second half, the revision is primarily a precaution against heightened economic uncertainty. Bortz noted that while they have not yet seen a decline in business transient demand, commentary from corporations suggests potential for future cost-cutting in travel.

Ask Fintool Equity Research AI

Answer

Jon Bortz, Chairman and CEO, expressed confidence that significant leisure rate deceleration is over, citing strong on-the-books data and performance at redeveloped resorts. Regarding the L.A. wildfires, Bortz described the guidance impact as their 'best guess,' acknowledging the situation is unpredictable. While he sees potential for future demand from rebuilding efforts, he noted that this would likely benefit lower-priced hotels more directly in the near term.

Ask Fintool Equity Research AI

Answer

Jon Bortz, Chairman and CEO, explained that the post-pandemic normalization of leisure demand is largely complete. He noted that while a planned increase in group business at resorts might affect the overall average daily rate (ADR), leisure rates are stabilizing. Bortz anticipates that as occupancy continues to build, the company will achieve greater pricing power and be positioned to grow rates again, particularly at recently redeveloped properties.

Ask Fintool Equity Research AI

Answer

EVP and CFO Sourav Ghosh clarified that the moderation in group lead volume is an 'in the year, for the year' phenomenon, primarily affecting government and association groups. In contrast, bookings for 2026-2028 are pacing up in the high single digits. For business transient, he noted Q1 volume was down 5%, but rate was up 6.5%, and the outlook assumes this trend continues for the rest of the year.

Ask Fintool Equity Research AI

Answer

President and CEO James Risoleo described the approach as 'opportunistic,' enabled by the company's investment-grade balance sheet. He confirmed that key priorities include share repurchases, strategic acquisitions that make financial sense, and continued reinvestment in the existing portfolio, with a specific focus on the Hyatt Transformational Capital Program.

Ask Fintool Equity Research AI

Answer

CEO Mark Manheimer responded 'absolutely' to growing with new tenants, highlighting the recent addition of Gerber Collision and a focus on improving diversification. He noted that while they haven't seen a significant increase in competition for investment-grade assets yet, they would expect it to materialize if economic uncertainty persists.

Ask Fintool Equity Research AI

Answer

CEO Mark Manheimer explained the goal is for a 5% concentration to be the exception, with most tenants ideally kept below 3%, and noted that dispositions are opportunistic. CFO Dan Donlan stated that deploying the forward equity more aggressively would require a more attractive cost of equity. Mark Manheimer added they could accelerate dispositions to fund a compelling acquisition.

Ask Fintool Equity Research AI

Answer

CEO Peter Mavoides noted that with 86% of Q1 investments coming from repeat business, the focus is on serving existing relationships, and the mix reflects their focus more than tenant cautiousness. CFO Mark Patten added that even if tenants slow growth, they still look to monetize real estate for liquidity. Regarding portfolio exposure, Mavoides stated the goal is for the industry 'pie' to grow ratably, given their long-term conviction in their curated list of service-based industries, though they continue to lighten up on casual dining and avoid movie theaters.

Ask Fintool Equity Research AI

Answer

CEO Peter Mavoides explained that their conviction in casual dining is driven by the fungibility of the real estate and their positive historical recovery and credit loss experience in that sector. Executive Max Jenkins addressed tenant loyalty by pointing to the consistent 80% of business from existing relationships, driven by referrals and strong service. Peter Mavoides added that while tenants are sophisticated about pricing, they place a high value on the reliability and execution certainty that an incumbent capital partner provides.

Ask Fintool Equity Research AI

Answer

CEO John Moragne attributed the build-to-suit interest to the 'renaissance of American manufacturing,' including onshoring and nearshoring trends. He stated that economics remain attractive, with initial cap rates in the mid-7% range and straight-line yields in the mid-to-high 8% range. Regarding dispositions, he confirmed the guidance includes remaining clinical assets and general pruning, with the potential for additional opportunistic sales to fund growth.

Ask Fintool Equity Research AI

Answer

CEO John Moragne attributed the strong build-to-suit interest to trends like onshoring and supply chain consolidation, noting that BNL's returns remain attractive with straight-line yields in the mid-to-high 8% range. He stated the disposition guidance includes a mix of remaining clinical assets and general pruning, with the potential for additional opportunistic sales to fund growth.

Ask Fintool Equity Research AI

Answer

CEO John Moragne stated that while the environment for equity issuance is more constructive, BNL will remain cautious and is not dependent on it for funding. He explained the goal is to make the build-to-suit platform as large as possible, creating a laddered growth pipeline funded through existing capacity and normal course financing strategies.

Ask Fintool Equity Research AI

Answer

CEO John Moragne stated that while the equity issuance was a positive step, the company is not trading at a level that encourages large-scale issuance and will remain cautious. He explained the goal is to make the build-to-suit platform as large as possible, creating a predictable growth engine. Funding will be managed through existing balance sheet capacity, with leverage expected to remain comfortably below 6x.

Ask Fintool Equity Research AI