Robert Stevenson • Janney Montgomery Scott LLC

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President and CEO Michael Seton specified the demolition cost is approximately $1.9 million. EVP and CFO Kay Neely added that this non-recurring expense would be added back for FFO and AFFO calculations. Neely also stated that monthly carry costs will decrease from ~$120,000 to ~$20-25,000 post-demolition. Seton indicated the highest and best use for the land likely involves a residential component. For financing, Neely said acquisitions would initially be funded by the revolver, with longer-term private placement debt as a future possibility. Seton explained the board's repurchase cap provides flexibility while prioritizing the company's long-term growth strategy.

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President and CEO Michael Seton specified the demolition cost is approximately $1.9 million. CFO Kay Neely added this would be treated as a non-recurring expense and added back for FFO and AFFO, and that monthly carry costs would drop from ~$120,000 to ~$20-25,000. Mr. Seton suggested the highest and best use for the Stoughton site is likely residential. Ms. Neely outlined the financing strategy, which involves using the revolver for the short-term with a potential for a longer-term private placement. Finally, Mr. Seton explained the buyback cap reflects the board's desire to provide management with tools while prioritizing the company's long-term growth strategy.

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CFO Matthew Barnes-Smith confirmed they extended the TD term loan and are evaluating options like Freddie/Fannie or Lifeco debt for the Everly maturity. He projects year-end net debt to EBITDA will be in the 7.4-7.5x range. CEO Shawn Tibbetts added that the disposition strategy has no specific dollar target but focuses on selling stabilized assets with limited upside at attractive prices to redeploy capital into growth opportunities.

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CEO Shawn Tibbetts identified a 28,000 sq ft Office Depot as the main upcoming rollover risk but noted a backfill is already identified. He expressed high confidence in renewing other key tenants like Safeway and Harris Teeter. Regarding funding, both Tibbetts and CFO Matthew Barnes-Smith emphasized capital discipline, stating they would be hesitant to leverage up significantly and would prefer to wait for better market conditions. Barnes-Smith clarified that T. Rowe Price began GAAP rent recognition on March 7, making Q2 the first full quarter of contribution. Finally, Tibbetts provided a status update on the five small redevelopment projects, noting they are internal and won't appear in the third-party construction backlog.

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CEO Shawn Tibbetts noted that while there is demand for mezzanine financing, Armada Hoffler is maintaining its target principal balance and is not ready to execute new deals, focusing instead on risk-adjusted returns from rent-deriving assets. He attributed a slight dip in apartment occupancy to a strategic decision to maintain rental rates rather than a market supply issue, calling it a 'short-term blip.' CFO Matthew Barnes-Smith quantified the FFO dilution from the September 2024 equity raise at approximately $0.05 per share. Regarding the T. Rowe Price building, Tibbetts explained that the current soft office market makes a sale unattractive, and the company is content to hold the 'trophy asset' long-term.

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President and COO Shawn Tibbetts identified the multifamily assets as Allied, Southern Post (The Chandler), The Allure, and Gainesville II, noting a 6-to-24-month timeline to bring the preferred equity assets onto the balance sheet. Tibbetts confirmed no new ground-up developments are imminent due to unfavorable return spreads but detailed the redevelopment of the Virginia Beach Bed Bath & Beyond into three units. He also clarified that the Durham Bed Bath & Beyond space was leased to a single national retailer.

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President & CFO Alex Jessett confirmed that Camden is actively pursuing its repositioning program, with plans to renovate nearly 3,000 units in 2025. He stated these projects generate attractive 8-10% returns, equating to about $150 in additional monthly rent per door. He highlighted the program's strategic value in making older assets competitive against new supply.

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Chairman and CEO Richard Campo stated that projected yields on new development starts are approximately 6%, which is consistent with projects currently under construction. He acknowledged that it is challenging to find new deals that meet this return threshold, which has tempered the pace of new starts. However, he expressed confidence that outsized rent growth in their selected submarkets will enable them to achieve these target yields.

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President and CEO Luca Fabbri explained that the company has four sale transactions remaining for the year under REIT safe harbor rules, and a special dividend is hard to predict due to tax complexities. Executive Chairman Paul Pittman stated that capital deployment heavily favors stock buybacks over acquisitions, with a focus on the stable U.S. Midwest portfolio. Pittman also attributed the higher legal expense guidance to an ongoing tenant dispute and affirmed with 99% certainty that the preferred units will be paid off with cash or credit lines, not converted to shares, due to the undervalued stock price.

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Executive Chairman Paul Pittman detailed the company's regional strategy, noting strength in Illinois, a planned gradual exit from Colorado due to water concerns, and potential re-entry into the Delta region. He expressed caution on California due to water, overplanting, and regulatory issues. Regarding the Deere dealerships, Pittman acknowledged their strong current yield but also the argument that they are simply triple-net leases, suggesting only modest future investment. President and CEO Luca Fabbri, CFO Susan Landi, and Paul Pittman collectively stated the current incremental borrowing rate is around 6%, which could be improved with a term loan.

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CFO Susan Landi stated the annualized revenue on the sold farms was approximately $11.2 million. Executive Luca Fabbri attributed the crop sales increase to a strong avocado harvest and good citrus performance, and noted that cost savings from the dispositions total about $2 million annually. Executive Chairman Paul Pittman explained that while 2025 asset sales would be limited to about seven transactions, the company is creative in maximizing value within those rules. He asserted that the transactions are highly accretive and would more likely support a dividend increase rather than a cut.

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David Gladstone (executive) stated that while some farms are listed for sale, there are no contracts ready for execution. Lewis Parrish (executive) added that of the five vacant farms, two are low-cost open ground and three are almond farms with end-of-life trees, with various options being explored. Gladstone emphasized a strategy of conserving cash due to the high-interest-rate environment, prioritizing liquidity over share buybacks until the Q4 harvest results provide more certainty.

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Executive Lewis Parrish confirmed the 11 blueberry farms were part of the troubled asset pool and that their sale would roughly halve the number of vacant, direct-operated, and nonaccrual properties. He expressed confidence in the collectibility from other tenants but noted some upcoming permanent crop lease renewals might shift to participation rent structures. Parrish attributed 100% of the portfolio valuation decline, which drove the NAV down, to permanent crop farms, stating that annual row crop farms continue to appreciate.

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Executive Lance Parker noted an 8% increase in steel costs, which they mitigated by pre-purchasing and storing materials on-site. He characterized the Hawaii transaction market as having few closed deals but many active opportunities. He confirmed the ground lease covers the entire 5 acres. Executive Clayton Chun stated there are no known material drags on CRE FFO for the remainder of 2025 and that the large Q1 JV income was a one-time event with nothing similar anticipated.

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CEO Lance Parker framed the Waipouli sale as a strategic capital recycling event. SVP of Asset Management Kit Millan confirmed it eliminated CAM leakage drag, and CFO Clayton Chun noted the transaction was accretive. Parker described the acquisition pipeline as encouraging but stated no new deals are in the guidance. He also confirmed no other meaningful 2025 move-outs are known beyond those discussed for Q4. Millan explained new lease revenue typically commences within 6 months for industrial and 3-12 months for retail, depending on build-out needs.

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EVP and COO Brett Taft acknowledged upward pressure on real estate taxes and highlighted that a tough winter drove a significant $250,000 increase in snow removal costs. On new products, Mr. Taft noted strong initial demand for both solar shingle homes and duplexes, with most initial units already occupied. President and CEO Samuel Landy and Founder and Chairman Eugene Landy elaborated that the goal of solar is to lower resident utility bills, increasing affordability, while duplexes generate a higher return per lot.

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President & CEO Samuel Landy and EVP & COO Brett Taft identified home sales and acquisitions as the two biggest swing factors for 2025 guidance, highlighting several new expansion projects that create significant sales upside. Brett Taft confirmed that leasing velocity in the southern states remains strong, limited mainly by the pace of capital improvements and home delivery. He pegged the all-in cost for a new rental home at $70,000-$75,000. Regarding the solar shingles, Founder and Chairman Eugene Landy and CEO Samuel Landy explained that a third-party owns the shingles, so there is no additional cost to UMH, while providing a utility cost benefit to residents.

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President and CEO Samuel Landy explained that self-storage is a natural, synergistic fit, using existing community staff and serving resident needs. EVP and COO Brett Taft stated new single-wide rental homes cost $70,000-$75,000 to set up, with minimal cost pressure. Samuel Landy and Brett Taft clarified the home sale price gap is due to retail markups, custom orders in premium locations, and the inherent profit margin, noting a home set up for $75,000 would sell for $90,000-$100,000 or more. Samuel Landy projected the NJ joint venture is a minimum of three years from generating revenue.

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An executive, Bill, stated the re-leasing CapEx is within the previously disclosed $9 million to $12 million range. Executive John Albright estimated a one-year timeline for new tenants to become rent-paying and outlined funding strategies including internal liquidity and asset recycling. Executive Philip Mays quantified the annual rent loss from vacated Party City and Joanne's locations at approximately $900,000 and $600,000, respectively.

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Executive Philip Mays clarified that the 50% rent commencement in 2025 applies to the separate signed-not-open pipeline, while rent from the recently vacated spaces is expected in 2026. Executive John Albright anticipates a short-term extension for the Waters Creek investment but noted the capital could be redeployed at a higher yield if repaid. He suggested the structured portfolio could grow by up to $50 million in 2025. Albright also confirmed that CTO's AMC theaters are top performers and performing well.

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Executive John Albright explained the hospitality investment is with a publicly traded company and noted that future acquisitions will likely be funded via the credit line due to lower leverage, with less emphasis on asset recycling. He stated the company is monitoring the office asset's market and waiting on the tenant's long-term plans. Regarding move-outs, Albright sees only strategic opportunities for upgrades. Executive Philip Mays clarified the $6.5 million signed-not-open pipeline will ramp up ratably over the next 9-12 months.

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CEO Theodore Klinck confirmed Highwoods will continue selling noncore assets to create 'dry powder' regardless of immediate acquisition plans and has not seen a slowdown in leasing due to economic uncertainty. An executive, likely Brendan Maiorana, noted that while individual tenant improvement (TI) costs are in line with market rates, overall leasing capital spend is expected to increase in the coming quarters to support the anticipated build in occupancy.

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CEO Theodore Klinck explained the government exposure is diverse across 20 agencies, with the largest being the CDC, and is considered low-risk due to being essential agencies with firm lease terms. He identified suburban Nashville and Charlotte as strong performers, with robust activity in specific submarkets of Dallas like Uptown. Regarding Century Center, Mr. Klinck clarified it was a proactive deal to consolidate ownership, providing long-term flexibility and unlocking value created through recent leasing success.

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CEO Theodore Klinck described Highwoods as a 'continuous asset recycler' and confirmed the $150 million disposition target excludes Pittsburgh. CFO Brendan Maiorana added that the company aims to reduce its land bank over time, using land sales as a source of capital. Maiorana also noted a modest, non-material financial impact is expected in Q4 from non-recoverable hurricane-related expenses.

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John Albright, an executive, projected that future disposition cap rates would likely be lower than the recent 9.1% sale, especially if they include non-income assets. He noted the Walgreens market is improving, with the Sycamore deal adding stability. Steven Greathouse, Chief Investment Officer, clarified that of the 31 dollar store locations, 25 are Family Dollar, and about half of those will retain the Dollar Tree credit post-spin.

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CEO John Albright confirmed the Beachside assets are fully operational, performing at or above pre-hurricane levels, and covered by business interruption insurance. He stated no other major vacancies are expected and noted active offers on 'at-home' assets, which are attractive due to their large parcels and low basis. CFO Philip Mays added that no lumpy or extraordinary G&A expenses are anticipated in 2025, highlighting the new $4.5 million annual management fee run rate.

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CEO Peter Baccile stated there have been no major dynamic shifts in their 15 target markets, noting continued strength in South Florida and Nashville and improvement in Denver. CIO Jojo Yap added that Southern California fundamentals are trending positively, with under-construction pipelines and vacancy rates declining in Q1. EVP Peter Schultz commented that demand remains broad-based, with activity from smaller, mid-sized, and larger tenants, though decision-making has slowed due to tariff uncertainty.

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CEO Peter Baccile reported no major shifts in market dynamics, highlighting continued strength in South Florida, Nashville, and Dallas. Chief Investment Officer Jojo Yap added that Southern California fundamentals are improving, with declining construction and positive absorption in the Inland Empire. Management noted that demand remains broad-based across various tenant sizes.

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President and CEO Peter Baccile identified Nashville as the best market, with Pennsylvania, South Florida, and Texas also being strong, while Denver is still improving. Executive Vice President Peter Schultz noted that demand from small to midsize tenants is generally more active across the country than demand for larger spaces, though this varies by market.

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CEO Peter Baccile and Executive Vice President Peter Schultz noted a significant increase in capital and bidder interest for industrial assets. Chief Investment Officer Jojo Yap added that cap rates have compressed by about 25 basis points in the last three months. Regarding land, Jojo Yap stated that pricing has not seen a significant decline, creating a wide bid-ask spread, as landowners' expectations remain high.

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CIO Alfonzo Leon confirmed the Heitman JV does not have a right of first refusal, giving GMRE full discretion on asset placement. He also stated that managing other Heitman assets has not been considered. CFO Bob Kiernan specified the CHRISTUS rent is approximately $2.9 million in ABR and is expected to fully commence around April or May. Regarding guidance, Mr. Kiernan explained that the lower end of the AFFO range accounts for potential deleveraging or unforeseen events, while the higher end assumes leverage remains elevated.

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CFO Robert Kiernan reported that the new CHRISTUS rent is $2.9 million annually, slightly higher than the former Steward rent of $2.8 million. CIO Alfonzo Leon confirmed it is a new major relationship. Kiernan noted CapEx for the property will be nearly $900,000, with much of it to be claimed against Steward in bankruptcy. Leon explained the two-tranche closing provides flexibility and efficiency, and that the deal will elevate Trinity Health from the #10 to the #3 largest tenant.

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CEO Gregory Silvers clarified that EPR is not against lodging-type assets but prefers net lease structures over the volatility of direct operations. CIO Gregory Zimmerman added that they are bullish on Hot Springs as an overall attraction, not just lodging. Silvers also highlighted fitness, wellness, and attractions as strong opportunity areas, with Zimmerman mentioning ongoing Andretti go-karting developments as a key project in the Eat & Play sector.

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CEO Gregory Silvers explained the St. Pete exit was due to a combination of significant hurricane damage and prohibitive operating costs, particularly insurance, which CIO Gregory Zimmerman noted was 9% of revenue. Mr. Silvers stated future coastal investments would be evaluated case-by-case. CFO Mark Peterson does not expect any cash impact from the exit. Regarding theaters, Mr. Zimmerman said the market for good assets remains slow but could 'unfreeze' with a recovering box office.

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President Arthur 'Buzz' Cooper explained that office sales will be opportunistic and that the portfolio is performing well with vacancy concentrated in one or two assets. He noted they have proposals out for two buildings. Regarding the incentive fee, David Gladstone indicated a desire to return to the original fee structure as performance improves but gave no specific timeline, emphasizing a 'shareholders first' approach.

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CEO Joey Agree provided an update on the Big Lots bankruptcy, noting a new lease was signed at a significantly higher rent in Manassas, VA, with progress on other assets pending lease auctions. He also confirmed ongoing sale-leaseback activity, with deals closed in Q4 and Q1, and expects more transactions as retailers compare it favorably to other capital sources in a volatile market.

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CFO Kevin Habicht confirmed that the 2025 net property expense guidance of $15-16 million is about $4-5 million higher than normal, almost entirely due to the vacancies, and should fade in 2026. He and CEO Stephen Horn added that no significant CapEx is planned for re-leasing, as they prefer to trade lower rent for no TIs. Horn identified Kent Kwik convenience stores as the primary concentration in Q4 acquisitions, stemming from a long-standing relationship.

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Executive Anthony Maretic confirmed there are no new significant move-outs beyond a previously disclosed departure in January, keeping the company on track for its occupancy guidance. CEO James Farrar described the leasing pipeline as "really, really strong," highlighting a notable turnaround in the Phoenix market. Regarding debt, Maretic explained the plan to repay the $50 million term loan using available liquidity and noted they are exploring options in the improving CMBS market for unencumbered assets like Block 83, where current spreads are 275-300 basis points.

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