Mazen Gale

Mazen Gale inquired about the Mustang joint venture property in Dallas, specifically if the call option period is open, the company's thoughts on exercising it, and the forward NOI yield. He also asked about the thought process behind the share repurchases made in the quarter.

Answer

Scott Schaeffer, CEO, confirmed that the call option for the Mustang JV is open, but exercising it is not considered the best use of capital due to the current cap rate. He anticipates the property will be sold this year, with proceeds potentially used for deleveraging or share buybacks. Jim Sebra, President and CFO, explained that share repurchases were driven by a fundamental disconnect between implied and market cap rates, using capital from non-EBITDA-generating sources (like a JV asset sale and embedded gains from forward contracts) to accretively buy back stock.