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Chief Executive Officer Dallas Tanner stated that leasing has seen reacceleration heading into the spring season as supply moderates from its summer 2024 peak. He acknowledged that some markets, like Florida and Phoenix, still face pressure. Tanner noted that elevated mortgage rates could increase builder spec inventory, creating a headwind for new leases but a tailwind for renewals, which constitute about 80% of recent leasing volume.

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CEO Dallas Tanner stated that increased transaction volume in the for-sale market is generally a net positive for INVH's business. He explained that it provides clear valuation marks for the portfolio and creates near-term rental demand. A more active for-sale market would also reduce the number of homes that convert from for-sale to for-lease, thus reducing rental competition.

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CEO Dallas Tanner stated that increased transaction volume in the for-sale market is generally a net positive for their business. He explained that it provides clear valuation marks for their portfolio and creates near-term rental demand as people move. Furthermore, a more active for-sale market can reduce the number of homes that might otherwise convert to rentals, thus lessening competitive supply. He concluded that a healthy housing market with choice and flexibility is a tailwind.

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President Charles Young explained that this moderation is a typical seasonal pattern. He noted that renewals tend to peak in Q1, soften during the summer leasing season, and then recover by year-end. Young emphasized that this trend was anticipated and that overall blended rent growth has been accelerating monthly since December, aligning with company expectations.

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President and COO Charles Young acknowledged that new supply pressures in markets like Phoenix, Tampa, Orlando, and Dallas are forcing the company to compete on price for new leases. He noted that outside of these markets, performance is as expected with normal seasonality. Young emphasized that turnover remains at historic lows and the renewal book is healthy, expressing confidence that the company can work through the temporary supply issues over a few quarters.

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President, CEO & Director Donald Wood declined to name specific cities to maintain a competitive advantage in active negotiations. He assured that there would be no incremental corporate G&A, as the strategy leverages existing corporate expertise and local property management teams.

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CEO Donald Wood identified continued gains in occupancy throughout the year as the primary driver for the growth. CFO Daniel Guglielmone emphasized that this forecast is not speculative, as it is based on leases that have already been signed and are scheduled to commence.

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EVP & CFO Daniel Guglielmone confirmed the interpretation was correct, stating the 3% to 4% guidance is after the headwind, so the underlying growth is stronger. He identified continued strength in occupancy gains as the primary driver of this expected acceleration in the comparable portfolio.

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CFO Daniel Guglielmone advised not to read too much into the width of the guidance range. He stated that while there is some variability heading into the final quarter, narrowing the range from $0.18 to $0.10 felt appropriate given that unforeseen events can always occur in a given quarter.

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CEO Sumit Roy explained the lower retail mix was an opportunistic result of finding more compelling industrial and credit deals, but affirmed retail remains the portfolio's core. He reiterated strong and accelerating interest in data centers, emphasizing that the company maintains high selectivity on partners and assets and will not compromise its underwriting standards to deploy capital.

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CEO Sumit Roy clarified that the company avoids deals where tenant credit is questionable and re-leasing would disrupt value creation. Regarding occupancy, he stated the dip was expected and in line with guidance for the mid-98% range. He noted some outsized vacancies in Q1 were largely resolved and highlighted strong renewal performance with tenants like Dollar General.

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CEO Greg Lehmkuhl and CFO Rob Crisci explained the guidance assumes a muted but present seasonal occupancy build, which has already begun. They emphasized that pricing and productivity assumptions are unchanged. Confidence in Q4 stems from this expected seasonality, which mirrors the pattern from the second half of last year, alongside continued progress on internal cost and efficiency initiatives.

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CFO Rob Crisci and CEO W. Lehmkuhl explained that since volume guarantees were just reset, any inventory increase would be upside at strong incremental margins. On supply, Lehmkuhl detailed that new capacity peaked in 2023 (4%), is ~2% in '24-'25, and will halve again in '26 to pre-COVID levels. He stressed that Lineage's scale and cost advantages position it well against new, high-cost entrants.

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CEO W. Lehmkuhl clarified that new supply coming online in 2025 is expected to be lower than in previous years. He stated that overall competitive supply dynamics should be consistent with last year, with the key trend being a continued decrease in new deliveries moving forward.

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EVP & CFO Brandon Togashi detailed the updated guidance, noting the midpoint assumes seasonal occupancy declines similar to the prior year and is less reliant on macro improvements. He also stated that while share repurchases are attractive, the company will remain disciplined, balancing them against acquisitions and balance sheet health.

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CEO Dave Cramer explained the company is balancing rate and occupancy to maximize total revenue, and the team has successfully improved contract rates sequentially. He noted that while they are working to drive occupancy, the strong rate growth lessens the pressure. On transactions, Cramer stated that deal flow is steady but the company remains patient and disciplined. He confirmed good progress on the guided $200 million of dispositions for the year, with more details expected after Q2.

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CEO Dave Cramer explained the company is balancing rate and occupancy to maximize total revenue, noting that improved rates lessen the pressure on occupancy. On transactions, he stated NSA remains patient and disciplined on acquisitions, working with JV partners, and is making good progress toward its $200 million disposition target for the year, with more details expected after Q2.

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CEO Dave Cramer stated that new supply as a percentage of stock is expected to decline from 3.5% in 2024 to 3.0% in 2025, though absorption of already delivered supply remains a challenge in markets like Phoenix and Atlanta. CFO Brandon Togashi confirmed the G&A guidance is on a core basis, largely excluding internalization costs, and reflects approximately $9 million in annualized savings versus the pre-internalization run rate.

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CEO Dave Cramer stated that the year-over-year street rate decline widened from low-teens in July to the low-20s in September, and reached the mid-20s in October. He attributed this to competitive positioning and the integration of PRO stores. He suggested that much of the rate adjustment work has been done and the gap to the prior year may flatten out, rather than continue to widen significantly.

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EVP & CFO Vincent Chao attributed the temporary leverage increase to the timing of acquisitions. He stated his goal is to operate with leverage below 5.5x. He explained the five-year bond was chosen for asset-liability management, as it helped align the company's debt duration more closely with its average lease duration.

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CEO Stephen Horn stated that Q2 acquisition pricing is expected to remain in line with Q1's 7.4% cap rate, noting they passed on large portfolio deals priced below 7%. He expressed strong confidence in their car wash holdings, emphasizing their low-cost basis in Mr. Carwash assets acquired before the market overheated and their disciplined avoidance of financially engineered deals.

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CFO Kevin Habicht noted that while specific figures are a work in progress, the resolution of the Badcock and Frisch's vacancies is proceeding faster than the typical 9-12 months. Regarding the credit loss assumption, he explained that with the two largest credit concerns (Badcock/Frisch's) now being resolved, a 100 basis point reserve was not necessary, and the 60 basis point figure is considered appropriate given the current health of the remaining portfolio.

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CFO Kevin B. Habicht acknowledged that the 2025 bad debt assumption would likely be above 100 basis points but deferred specifics until Q4 provides more clarity. Executive Stephen Horn stated that Q4 cap rates are expected to be in line with Q3. He attributed the strong acquisition pipeline primarily to relationship-driven deals and noted an increasing average deal size due to M&A activity from private equity groups seeking sale-leasebacks.

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Chairman, CEO & President David Simon quantified overall traffic growth at 1.5%. He noted that performance is being held back from its full potential due to relative softness at border properties (both U.S.-Canada and U.S.-Mexico) and a lack of growth from international tourism, which typically drives outperformance at certain key centers.

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Chairman, CEO & President David Simon quantified shopper traffic growth at 1.5%. He noted performance is not at its peak due to relative softness at assets on the U.S. borders (both north and south) and a lack of outperformance from international tourist-oriented centers, which are currently performing in line with the portfolio rather than exceeding it as they have historically.

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CEO David Simon reported 'really good' demand, with over half of the former Forever 21 boxes already leased to tenants like Primark and Zara, successfully replacing the prior rent. CFO Brian McDade added that they expect to more than double the rent from these spaces over a two-year process, with rent from about half the deals commencing this year and the other half next year.

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CFO Brian McDade clarified that the 'at least 3%' guidance is consistent with prior years. He attributed the baseline figure to three factors: a conservative assumption of flat sales impacting overage rent, expected downtime from re-tenanting spaces, and a return to a standard historical approach for bad debt reserves in 2025.

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Brian McDade, CFO, affirmed that the company believes the current momentum in NOI growth will continue. He agreed that the factors mentioned, combined with ongoing capital investment into the portfolio and a lack of new competitive supply, support a positive outlook for sustained growth.

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CFO Tim Martin clarified that while fundamentals are improving, the 5% monthly churn means it takes time for positive trends to impact revenue. He cited last year's volatile comps and the timing of fee and rate changes as creating a bumpy, non-linear recovery. Regarding M&A, Martin noted that while deal volume is up, returns on available deals have not yet met the company's risk-adjusted criteria.

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CEO Christopher Marr attributed the rate improvement to strong rental activity and a gradual sequential rate increase since January, but cautioned they are taking it 'day to day' given macro uncertainty. CFO Timothy Martin explained that marketing spend was lighter in Q1 but is expected to increase later in the year as opportunities arise, meaning the full-year marketing budget expectation is unchanged.

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President and CEO Christopher Marr stated that a combination of clarity on mortgage rates and broader economic direction is needed to boost consumer confidence and decision-making. He noted that while trends since December are encouraging, the company is being 'prudently cautious' after overly optimistic forecasts in the past two years. Marr confirmed the expectation is for a slow improvement from the Q4 2024 revenue trough, but the back half of the year remains uncertain.

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President and CEO Christopher Marr explained that the company's marketing spend growth is consistent with the prior year and that they continuously adjust the mix of marketing, price, and existing customer rate increases (ECRIs) on a weekly basis to attract high-quality tenants. He noted that while pricing competition has stabilized in some markets, it remains intense in others, such as the West Coast of Florida, due to new supply.

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President and CEO Joey Agree explained that the development and DFP platforms are additive, creating a differentiated, full-service real estate company rather than just a 'spread investor.' Regarding the grocery portfolio, he clarified the Albertsons deal was a unique off-market acquisition, not a sale-leaseback, and aligns perfectly with their strategy of focusing on the largest, most dominant grocers with strong balance sheets and store-level performance.

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CEO Joey Agree stated that no deals have been pulled and competition remains 'extremely limited,' creating a significant opportunity for Agree to leverage its balance sheet and cost of capital, similar to the GFC and pandemic periods. On private equity sponsorship, he explained that Agree avoids it because PE firms' short-term perspectives, which can lead to special dividends and high leverage, are misaligned with Agree's strategy of partnering with retailers who have a long-term operational view.

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CEO Joey Agree stated that competition in the transaction market remains 'extremely limited,' creating a significant opportunity for Agree Realty to leverage its balance sheet and cost of capital. Regarding private equity, Agree explained their avoidance stems from a strategic preference for partnering with retailers that have a long-term operational perspective, contrasting with the shorter-term, leverage-focused strategies often employed by PE firms.

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CEO Joey Agree cited strong fundamentals for the auto parts sector, including the record age of cars and desirable real estate characteristics. Regarding cadence, he stated he couldn't predict the year's flow due to market volatility but emphasized their 'war chest' of capital allows for both patience and decisiveness.

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CEO Joey Agree detailed the strong thesis for auto parts, citing the record-high average age of cars and the desirable real estate characteristics of the properties. Regarding cadence, he stated he had "no idea" for the full year due to market volatility but emphasized the company's "war chest" of capital allows it to be both decisive and patient as opportunities arise.

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CEO & Trustee Bryan Smith stated that while some markets like Phoenix and parts of Florida have supply pressure, AMH's portfolio is performing well due to its specific product type and location, with occupancy in Phoenix still above 95%. He noted the new target occupancy is in the 96% range, higher than pre-COVID levels, and expressed confidence in maintaining this level due to strong execution and the favorable rent-versus-own value proposition.

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CEO Bryan Smith explained that stabilized BTR communities show lower maintenance costs and quicker turn times, with rent growth consistent with scattered-site homes but with potential future upside. CFO Christopher Lau confirmed there were no significant changes to the underlying assumptions for the full-year guidance on revenue or expenses, with building blocks for occupancy, rent growth, and expenses remaining largely unchanged.

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CEO Bryan Smith stated that the company has not seen any change in tenant behavior or excess negotiation on renewals, attributing the smooth process to supportable pricing and improved communication. On the regulatory front, Smith said that while many things are happening broadly, nothing has affected the company's high-quality operations, which are focused on proactive and transparent engagement with residents and stakeholders.

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COO Bryan Smith acknowledged that recent uncertainty and events temporarily slowed overall housing activity, leading to a moderation in new lease rates. However, he emphasized the strong performance through Q3 as evidence of limited price sensitivity for AMH's quality product. Regarding weather, he confirmed that there is typically a catch-up in activity after storms pass, though the recent back-to-back nature of storms in Florida has made the pickup more gradual.

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President John McLaren reported that the company has expanded its cost savings beyond the initial $17 million target, with significant progress in payroll, utilities, and procurement standardization. He provided an example of renegotiating with a major supplier to achieve better pricing and rebates. McLaren emphasized that these efforts are balanced with a strong focus on driving top-line growth, particularly in the manufactured housing segment, to achieve strong bottom-line results.

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Executive John McLaren attributed the stronger MH outlook to a combination of occupancy gains, strong rental home renewal performance, improved rent collections, and disciplined expense savings. Executive Gary Shiffman added that long resident tenures are reducing turnover-related costs. Regarding the buyback, Shiffman described it as one part of a larger, thoughtful capital allocation plan that provides flexibility following the successful Safe Harbor transaction.

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Executive John McLaren responded that despite a challenging macro environment, the company is executing its strategy of reshaping the U.K. revenue mix. He emphasized the focus is on increasing the number of home sales to drive more durable, real property rental income, which is reflected in the guidance.

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Fernando Castro-Caratini, Executive, confirmed that the announced run-rate expense savings will be realized on a 2025 basis and will be a reduction from the recurring G&A expense base.

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EVP & CFO Jeff Norman reported that July occupancy remained flat sequentially at 94.6% and new customer rates improved to over 2% year-over-year. He confirmed the fourth-quarter benefit is due to the cumulative 'snowball' effect of positive new customer rates rolling through the tenant base over several months.

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CFO P. Scott Stubbs confirmed that April's performance was slightly ahead of expectations and that street rates had improved from negative 9% in Q3 2024 to flat by April 2025. He stated that achieving the upper end of the guidance range depends on gaining rate power during the leasing season, while the midpoint or below is possible if rate power remains limited.

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CEO Joseph Margolis reported tangible benefits from the single-brand strategy, including a $2 million Q4 reduction in paid search spending and a 5.5% increase in rentals at rebranded LSI stores. He described the bridge loan program as a strategic capital allocation tool that fuels the third-party management business and creates a pipeline for future acquisitions, with flexibility to adjust capital commitment as needed.

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CEO Joseph Margolis explained that the single brand strategy is already showing early benefits like improved SEO and website conversion rates for former Life Storage (LSI) stores, expressing confidence based on a successful 2023 pilot program. Executive P. Stubbs clarified that the primary factor for the Q4 FFO guidance deceleration is simply the expected property performance within the guided range.

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SVP & CFO Thomas Boyle noted that top-of-funnel demand is modestly better than last year, with healthy and consistent customer conversion rates. CEO Joseph Russell explained that lower apartment turnover is not a headwind, as self-storage benefits from both housing market dislocation (moves) and stability (renters needing extra space), highlighting the business's resilience.

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H. Boyle clarified that the impact from L.A. restrictions will ramp up throughout the year. He explained that promotional sales are a long-standing, dynamic tool used to optimize long-term revenue by driving volume, not a recent shift in strategy, with examples like a planned Memorial Day sale being 'business as usual'.

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Executive Joseph Russell noted that after a multiyear low in 2024, transaction activity is picking up with smaller, one-off deals. Executive H. Boyle stated that stabilized cap rates remain in the 5% to 6% range. Regarding pricing power, Boyle explained that while demand has stabilized, the 2025 outlook does not assume a significant demand uptick, which would be the primary ingredient for higher move-in rents.

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Executive H. Boyle attributed the better move-in rents to stabilizing demand, which is now roughly flat year-over-year after being down 20% at the start of the year. He reported October occupancy was down 90 basis points year-over-year. Boyle noted that while housing-related demand has softened, activity from apartment renters and customers needing more space remains strong. CEO Joseph Russell added that customer length of stay continues to be above pre-pandemic levels.

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CEO John Kite noted very strong institutional demand for open-air retail as investors rebalance portfolios, viewing it as an undervalued asset class. CFO Heath Fear added that demand is broad, with specific interest in core grocery, larger formats due to yield, and generational lifestyle assets. Regarding the remaining vacant boxes, John Kite emphasized that KRG is focused on creating long-term value, not just filling space quickly.

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EVP Timothy Argo noted that competing operators have been pushing for occupancy, impacting pricing. He explained the Northern Virginia slowdown is due to tougher comps after a multi-quarter strong run and some localized prospect choosiness, rather than a unique market issue.

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EVP & COO Tim Argo confirmed they still expect new lease growth to turn slightly positive around mid-Q3. CEO Brad Hill stated that MAA will continue its strategy of recycling capital by evaluating the sale of assets in smaller markets where they lack scale, such as Panama City and Las Vegas, to improve portfolio efficiency.

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Tim Argo, EVP and Chief Strategy Officer, stated that while market-level occupancy is a factor, MAA's strong position with 95.6% occupancy and low forward exposure gives them confidence to push pricing. He detailed that January's new lease rate was -7.1%, and they expect a typical seasonal acceleration to a slightly positive rate of 1-1.5% by July, noting the curve's shape is normal but its slope is slightly steeper due to the added tailwind of declining supply.

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Tim Argo, EVP and Chief Operating Officer, confirmed that strong absorption is expected to continue, supported by robust demand metrics. He noted that concessions were consistent with Q2, typically half a month to a month, but higher (up to 3 months) in high-supply submarkets like Central Austin and Midtown Atlanta. He also stated that new supply is priced, on average, $250 to $300 higher than MAA's portfolio.

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CFO Glenn Cohen explained the updated '3% or better' guidance accounts for the H2 impact of Party City and Joann bankruptcies, offset by quicker rent commencements. COO David Jamieson added that Q2 represented the occupancy trough and expects momentum to build in H2, driven by record small shop occupancy.

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Kathleen Thayer, an executive, clarified that major bankruptcies (Party City, Big Lots, JOANN) are factored into the minimum rent line, not the credit loss assumption. The credit loss guidance covers potential uncollectable receivables and unbudgeted vacates. She noted that potential vacates from watchlist tenants like At Home and Rite Aid are covered within their 20-25 basis point buffer for unexpected events, justifying the confidence in the 75-100 basis point range for the full year.

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COO David Jamieson detailed the status of tenants like Big Lots, Party City, and Jo-Ann's, noting robust demand for their spaces and that many are 'repeat offenders' from prior bankruptcies. CFO Glenn Cohen framed the guidance, stating the $17-$22 million reserve is a comfortable starting point based on historical levels, excluding the pandemic. Executive David Bujnicki clarified this reserve includes potential lost rent from future bankruptcies.

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COO David Jamieson confirmed a significant opportunity exists to close the RPT small shop occupancy gap. He credited the progress to a strong operating team, high-quality retained assets, broad tenant demand, and a lack of new supply. Jamieson highlighted that compressing the signed-not-open pipeline and integrating talented RPT personnel have been key drivers of the outperformance.

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COO David Jamieson confirmed the strong momentum, attributing it to the operating team, the quality of the retained RPT assets, broad tenant demand, and a lack of new supply. He noted that compressing the signed-not-open pipeline and integrating key RPT personnel have been major contributors to the outperformance.

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EVP & CFO Mike Mas highlighted that while leased occupancy is high, there is still significant runway for commenced occupancy to grow. He also pointed to redevelopments as a key contributor, expecting them to add over 100 basis points to same-property NOI growth in 2025 and potentially 2026. COO Alan Roth added that the team is efficiently backfilling the S&O pipeline, accelerating rent commencements.

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CFO Mike Moss clarified that while leased occupancy is high, commenced occupancy still has room to grow, providing a continued tailwind into 2026. He also emphasized that redevelopments are expected to contribute over 100 basis points to same-property NOI growth in 2025 and potentially again in 2026. COO Alan Roth added that the signed-not-opened (SNO) pipeline is being consistently backfilled with new leases.

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Alan Roth, East Region President and COO, stated that the tenant watch list exposure remains consistent and the team is proactively managing it. He specified that Rite Aid exposure is 30 basis points of ABR and confirmed that accounts receivable levels are currently below historical averages.

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CFO Michael Mas detailed that the range combines historical bad debt averages (around 50 bps) with a more speculative 25-50 bps for potential lost rent from bankruptcies. Alan Roth, East Region President and COO, added that known credit risk exposure is manageable due to strategic asset management and that the overall retail environment remains healthy, with strong demand for their properties.

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Michael LaBelle, EVP, CFO & Treasurer, explained that while the bottom end of the range was raised, the full-year increase was tempered by higher anticipated interest expense and the deferral of some Q2 expense savings into Q3. He noted Q3 FFO will be seasonally lower due to utility costs, with a ramp-up in Q4 driven by lower expenses and occupancy gains.

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President Douglas Linde confirmed that for 2025, 3 million square feet of leasing would result in roughly flat occupancy. However, he stressed that for 2026, which has much lower expirations, the same leasing volume would lead to a 'meaningful increase in occupancy.'

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CEO Jason Fox clarified that while Q2 was US-heavy, the forward-looking pipeline is split roughly 50/50 between North America and Europe, with European activity expected to increase. On property types, he affirmed no change in strategy but noted that industrial currently offers better risk-adjusted returns than the more competitive US retail market. He stressed the value of their diversified model to pivot to the best opportunities.

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CEO Jason Fox confirmed that the U.S.-centric volume in Q2 was due to timing, as European deals can take longer to close, and noted the forward pipeline is split more evenly. He clarified there is no change in strategy regarding retail; however, the company is currently finding better risk-adjusted returns in the industrial sector. He emphasized that this highlights the strength of their diversified model to allocate capital to the best opportunities.

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CEO Jason Fox clarified that the European portfolio is not a headwind from tariffs, as most European tenants operate domestically and are insulated from U.S. trade dynamics. Both Fox and Head of Asset Management Brooks Gordon confirmed no new direct tariff impacts on the portfolio and noted the watch list has shrunk, emphasizing that investors should focus on the overall guided credit loss reserve.

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CEO Jason Fox described the Q4 Dollar General investment as an opportunistic move to enter a sector that was out of favor, allowing for a sizable investment without creating outsized tenant concentration. Regarding data centers, he characterized a recent $100 million acquisition as a unique deal with an attractive basis and below-market rent, and noted that while the company is exploring the space, no firm commitments have been made for future volume.

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CEO Jason Fox explained the move into U.S. retail is to expand the investment opportunity set, targeting 30-40% of annual deal volume over time. He noted the portfolio is currently 25% retail, mostly in Europe. Regarding tenant credit, Mr. Fox and Head of Asset Management Brooks Gordon stated it is too early to predict the 2025 impact of the True Value bankruptcy but expect a transition period to mute near-term effects. They confirmed exposure to American Tire is minimal at less than 20 basis points of ABR.

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President, CEO & Director William Lenehan responded that while FCPT continues to diversify away from Darden, it will not hesitate to buy high-quality, well-priced Darden assets given the tenant's strong credit. Regarding H2 acquisitions, he stated that activity depends on the cost of capital and market opportunities, acknowledging that Q4 is often the largest quarter but it is too early to predict.

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CEO William Lenehan confirmed FCPT is currently in the 'green zone' and, more importantly, has substantial pre-funded capital to deploy. He clarified that the slight dip in rent collection was not material and was likely due to timing issues with rent payments for assets acquired late in December.

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EVP & COO Michael Manelis explained that improved consumer confidence and accelerated job growth would be needed for more pricing power, though easier comps and less supply could mitigate normal seasonal deceleration. President & CEO Mark Parrell stated that the algorithmic pricing ban is not a major issue, as it's just one of many pricing tools. He argued such regulations address a symptom (high rents) rather than the root cause (housing shortages).

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COO Michael Manelis described the Q4 slowdown as normal seasonality but noted that stronger macro indicators support confidence in better pricing power in 2025. CIO Alec Brackenridge explained the 421-A revenue upside is significant but hard to time as it depends on tenant turnover. CFO Bob Garechana clarified that the 2025 same-store pool will not see a material change in Sunbelt assets, with the bulk of recent acquisitions entering in 2026.

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John Albright, President & CEO, described the Walgreens disposition market as active, with cap rates from the high 7s to low 10s. Regarding capital allocation, he emphasized a balanced approach, pursuing accretive opportunities while opportunistically selling assets to manage leverage and grow enterprise value.

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Philip Mays, an executive, detailed that the guidance increase was equally driven by opportunistic stock buybacks, a favorable interest rate swap, and strong investment volume and timing. He also clarified that Q1 funded investment volume was approximately $60 million, aligning with the new guidance. John Albright, an executive, added that capital allocation is a balance; share repurchases are attractive at the current stock price, but the company also has a strong acquisition pipeline funded by free cash flow and future loan payoffs.

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John Albright, an executive, confirmed that an improved liquidity environment is creating more transaction opportunities. He detailed that the Tampa properties have robust insurance, including two years of business interruption and full replacement coverage, and are expected to reopen soon. Albright explained their strategy of acquiring high-quality real estate with below-market rents, even with shorter lease durations. He also noted that the loan portfolio, typically targeted at 10% of total assets, could scale up to capitalize on current high-yield opportunities.

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CEO Pete Mavoides stated that while he has long expected competition to increase, it has not yet materialized, crediting EPRT's consistency and reliability. He affirmed that the company's core strategy remains focused on granular deals, typically $10-15 million, and that Q2 activity was consistent with this approach.

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CEO Peter Mavoides expressed strong conviction, emphasizing their 20-year investment horizon and the security of owning the underlying real estate, noting Dave & Buster's history of closing very few sites. Regarding the watchlist, CIO A.J. Peil stated it was at 1.6% of ABR, down 50 basis points quarter-over-quarter, with no thematic issues and any credit events already factored into guidance.

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CEO Peter Mavoides asserted that the pressure is operator-specific, not systemic to the carwash industry. He noted that across their portfolio, carwash sales and EBITDA are roughly flat with healthy coverage. Regarding the acquisition guidance, he explained that it reflects a conservative view, acknowledging that 2024's high volume was driven by a unique opportunity to deploy capital at historically wide spreads. He anticipates a normalization of capital markets and increased competition in 2025, which will likely lead to lower cap rates and a more measured acquisition pace.

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CEO Peter Mavoides affirmed the 2025 guidance is driven by a conservative and prudent approach, anticipating a potential shift in the competitive landscape. He noted the slight dip in sale-leaseback volume to 89% was not material and represented a normalization from previously high levels, as the company took advantage of some attractive existing lease opportunities.

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CFO & Treasurer Daniel Donlan stated the company targets spreads north of 100 basis points over its WACC for equity issuance, noting current spreads are around 150-160 basis points for deals in the 7.4%-7.5% cap rate range. He also confirmed the guidance midpoint conservatively assumes slightly less than $0.01 of dilution from the treasury stock method.

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CEO Mark Manheimer outlined a Q2 disposition pipeline including Dollar General, Family Dollar, and pharmacies at mid-to-high 6% cap rates, with acquisitions targeting yields above 7.5%. He added that recent grocery acquisitions include large, cash-flow-strong operators, such as a major ESOP-owned grocer.

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CEO Mark Manheimer noted that Walgreens disposition cap rates have varied widely, from the 6% range to much higher, depending on asset quality and lease term. He added that CVS properties can likely be sold at lower cap rates and that the market for Dollar General assets is robust. Manheimer also stated that competition is higher for investment-grade assets, whereas recent non-investment-grade acquisitions involved direct negotiations rather than auctions.

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President & CEO Christopher Constant confirmed they are not expanding beyond their four core sectors and that the comment referred to adding new tenant relationships. EVP & CFO Brian Dickman explained the accrual relates to a long-standing litigation case and that its booking is a positive sign of progress toward a resolution.

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CFO Brian Dickman confirmed the anticipated Zips outcome is within the range of scenarios assumed in the original 2025 guidance. Regarding costs, CEO Christopher Constant and COO Mark Olear explained that development agreements include protections like cost caps and contingencies to mitigate inflationary risks from tariffs. Mr. Constant described the growing QSR exposure as a natural, gradual evolution of entering a new sector, similar to their past approach with car washes.

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EVP & CFO Paul Seavey stated that the expected acceleration in annual RV revenue is driven by the timing of ordinary course rate increases that take effect in Q3 and Q4. President & COO Patrick Waite added that new MH development sites are typically scaled to be absorbed over a three-to-four-year period.

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Paul Seavey, an executive, explained that they do not disclose budget assumptions for insurance to protect negotiating power but confirmed the 6% decrease was achieved. Marguerite Nader, an executive, highlighted that the renewal came with no change in deductibles or coverage. For the guidance question, Paul Seavey noted that adjustments to other line items, including the timing of insurance proceeds, provided an offset.

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Executive Paul Seavey stated Q1 guidance reflects current reservation pacing. Executive Patrick Waite added that hurricane disruptions and a lag in Canadian business impacted the Sunbelt season. Waite also attributed lower new home sales volume to hurricane-related delays and a normalization from peak COVID demand. CEO Marguerite Nader confirmed all properties are operational.

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Patrick Waite, EVP and COO, explained that the mid-5% RV rate growth is still strong but reflects a normalization from the peak demand seen during the COVID period. Paul Seavey, EVP and CFO, stated that ELS does not have a specific leverage target and has historically prioritized financial flexibility to be ready for opportunities, which was a key driver of the recent equity issuance to retire higher-cost debt.

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Chris Caton, MD of Global Strategy & Analytics, noted that decision-making remains deliberate due to macro caution, and the pipeline build-up reflects this. CEO Hamid Moghadam added that with every passing day, the ability for large customers to defer decisions diminishes, as evidenced by strong build-to-suit activity, suggesting pent-up demand is growing.

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Dan Letter, President, confirmed that Prologis has seen renewed activity from Amazon and has signed some significant deals with them this year. He stated that the broader e-commerce segment remains very strong, accounting for a high-teens to 20% share of their overall leasing activity.

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President Dan Letter described the post-election period as a 'boom' with 10 weeks of solid decision-making that unlocked previously stalled deals across broad-based demand. Managing Director Christopher Caton quantified the improvement, noting the leasing pipeline was up 17% year-over-year in January. CFO Timothy Arndt added that this acceleration was particularly notable as it occurred during a typically slower period.

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An executive advised a 'measured outlook,' stating that the primary catalyst for new demand will be the absorption of existing spare capacity within supply chains, rather than an immediate reaction to reduced macro uncertainty. They noted that utilization rates are already rising from below 84% to the mid-80s, which will eventually compel customers to lease new space.

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COO Sean Breslin attributed Northern California's strength to a combination of accelerated return-to-office mandates, improved quality of life in San Francisco, a pickup in AI-related job growth, and dwindling new supply. He declined to provide specific guidance for Q2 blended rates but noted May/June renewal offers were in the low-to-mid 5% range.

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COO Sean Breslin confirmed that the suburban portfolio outperformed urban by about 40 basis points on rent change in Q4 and expects this outperformance to continue, driven by very low supply. Regarding bad debt, he stated that a return to historical levels is still 'TBD.' While better fraud screening helps, headwinds from a slower eviction process in tighter regulatory environments are preventing a full normalization, though he expects to get closer over time.

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CEO John Moragne clarified the strategy is to reduce their 'clinical surgical' assets to zero over the long term, while intending to hold and potentially grow their 'healthcare services' (medical retail) portfolio. Regarding food processing tenants, he noted that unlike third-party cold storage operators, BNL's tenants own the product in their single-tenant facilities, insulating them from broader utilization volatility.

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CEO John Moragne clarified that the long-term strategy is to reduce exposure to clinical and surgical healthcare assets to nearly zero, while intending to hold its 'medical retail' type properties. Regarding food processing tenants, he noted that while some face incremental concerns, others may benefit from the current environment, and differentiated BNL's single-tenant properties from third-party logistics operators.

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CEO John Moragne expressed hope that the 125 basis points of bad debt is not the new normal, explaining it is elevated due to known credit events like Zips occurring early in the year, maximizing their annual impact. Regarding retail, he stated the reclassification was to clarify their identity as an industrial-focused REIT. He expects the investment mix to remain around 70% industrial and 30% retail, with a recent focus on food production-related distribution within the industrial segment.

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CEO John Moragne responded that he hopes the 125 basis point reserve is not the new normal, explaining it is elevated due to the timing of known issues like Zips early in the year. He clarified that the portfolio strategy remains focused on being an industrial-focused REIT, with an approximate 70% industrial and 30% retail investment mix expected to continue, consistent with the past several years.

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Executive Angela Kleiman explained that the West Coast has lower downside risk due to chronically low housing supply, making it less reliant on strong job growth compared to markets like the Sunbelt. Executive Barb Pak noted no significant changes in international migration but highlighted that San Francisco and San Mateo have recently turned positive for domestic migration, supporting Northern California's strong performance.

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Executive Angela Kleiman explained that while West Coast fundamentals are strong, the forecast is tempered by a moderating overall U.S. economy. She noted that positive indicators like tech job postings have only recently reached pre-COVID levels, suggesting a gradual build in momentum rather than a sharp acceleration. Executive Barb Pak confirmed that the budget assumes a normal seasonal curve for the entire year.

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CFO Mark Peterson stated that the company has baked in a bad debt cushion of about 1% of EBITDA, or roughly $5 million, which CEO Gregory Silvers noted is consistent with prior years. For funding, Peterson detailed a plan where free cash flow and dispositions would cover part of the need, with the remainder potentially drawn on the revolver. However, the ultimate intention is to term out the debt with a new bond deal, providing flexibility on timing and tenor.

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COO Mike Lacy explained the strategy is to build occupancy in shoulder seasons to maximize pricing power during peak season, noting a 30-40 bps drop in occupancy requires 100 bps of rent growth to break even. CFO & CIO Joe Fisher added that lower turnover from customer experience initiatives also boosts occupancy. Lacy confirmed no significant lumpiness is expected in revenue growth, with a steady progression from H1 to H2.

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SVP of Operations Mike Lacy stated that while the trajectory feels seasonal, the magnitude of choppiness is exacerbated by record-high supply levels, which is not a normal pre-COVID dynamic. CFO Joe Fisher noted that broader market absorption is at a 30-40 year high, alongside deliveries, driven by strong demand and the significant affordability advantage of renting versus owning a home.

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