EPR Properties (EPR) 2 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q1 2024 EPR Properties Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand your conference over to your first speaker today, Brian Moriarty, Senior VP of Corporate Communications. Brian, the floor is yours.

Thank you, Stacy. Thanks for joining us today for our first quarter 2024 earnings call and webcast. in expect, forward-looking of Litigation the other are hope, President Chairman Peterson, by and words President CFO. I'll anticipate call Zimmerman, CEO; defined Executive today's identified intend, be, terms. Private you as and Securities Vice informing Executive CIO; or call start may will as continue, the include such statements on Greg and Act XXXX, Silvers, believe, comparable Greg Vice that Participants may, this by call and Mark The and may company's forward-looking results vary the materially such financial by actual condition of from operations those statements. contemplated of and statements, the results are XX-Q. Discussion reports filings, to forward-looking the could in company's those SEC company's from factors those contained including that XX-K differ Form cause the materially on

call measures measures, references for today's in included this X-K. reconciliation will useful are performance. GAAP non-GAAP measures earnings of and the the information these believe comparable are Form certain evaluating directly to furnished under we company's to the supplemental SEC in release most A contain Additionally,

wish earnings company's earnings all release, are presentation Investor supplemental on you to today's the call page www.eprkc.com. available of follow website, Center the and If along,

the Silvers. to over Now Greg turn I'll call

target quarter for first quarter Thank of joining and call established morning, property fourth the pleased executing momentum thank experiential during we everyone, types. today's to first XXXX, you, spending were Brian. the and XXXX quarter, us Good you our across earnings on webcast. In continue investment the

and forward key of seeing resiliency customers The in the offer. coverage of our line remains levels and our as we experiences months to Our of box the are look strong, results believe experiential of strides expectations, our the we portfolio remain broadly, the have coming of we to Strengthened the out. More office indicative and value as into diversify experiential continued XXXX. XXXX made highlight properties. some proposition come our I'd to move we strengthen titles portfolio, to -- overall like significant with

experiential set. investment we portfolio for metrics, and growing to cycles. Expanded remain long that run able coverage focused an is opportunity built the on economic our by evidenced As is various sustain

While saw actively a looks relationships office we year. box a while XXXX and as in slightly demand, with exploring anticipate theater the that our office by down for portfolio. in constrained titles our provides work deployment, rebound strong consumer versus will future capital unique investments new our align investments exhibition have driven in excellent. be potential We been the currently growth This and foundation know in our we last box portfolio. Economically are we business. opposed rationalized And experiential XXXX, this to that XXXX that is delays and that we cultivating

firmly debate versus we believe that movies theater has exhibition been streaming around Additionally, resolved. the for

ROI movie ecosystem streaming channel studios high-quality sheet. production the on for primary As balance look complementing high exhibition essential with costs, distribution the remains potential theater downstream. A

coupled with these cost flow toward supporting balance dividend. to spending cash monthly sustaining investment attributes work Our significant to free And of while also an allows a are committed sheet, us we we capital. anticipated improved fund as important our well-covered

we that stated previously, diligently working Finally, to factors control. the can as we've we're control

our continue While have macroeconomic success. on we impact to and significant factors can on a had focus positioned for being business,

to business Now in greater the to over turn Zimmerman call Greg the I'll go over detail.

sell. leased, investments quarter, the are At excluding end of with total Greg. XXX $X.X Thanks, XX% we the properties our that were approximately properties to billion, intend

quarter, the spending portfolio. the spending experiential in XXX% million, our was of $XX.X investment was During our

leased. the billion. And and Our or at approximately with Experiential was portfolio end total operators XX quarter, XX% comprises for to XXX excluding the $X.X sell, we the of our of properties properties intend investments accounts XX%

of operators. XXX% XX to the the sell And the at leased. comprises X excluding portfolio was Education intend quarter, Our properties end properties with we

coverage portfolio on box office The a data be with for period. recent for the X.Xx, continues strong is for most at at months coverage. based billion coverage Trailing is provided X.Xx. theaters trailing XX XX-month to trailing $X.X Turning Overall the December to period. XX-month same

for Regal theater reporting the trailing the portion entire coverage Our was place that XX-month is of for XX-month in coverage period. Trailing assumes non-theater the X.Xx. our deal portfolio

Now status our you update tenants. I'll on operating the of

American theater Our levels even though XXXX at is coverage below office XXXX North remains well box levels.

premium see screens. and and in We food to spending continue increases large-format sustained beverage spending on

continues the well is the industry. And from office importantly, high-quality to theater portfolio Our from box trends. benefit portfolio these our to generated positioned outperform

XXXX including that studios titles, coming of year of released up anticipated titles somewhat throughout to & down a of the the out will of Two; to with million Wolverine. With Deadpool was titles delays $XXX writers and but the films year cadence Kung IF, billion of calendar XX.X%. To Office March's ramp the than good QX Kong: The Empire, once remainder and Frozen we state the we Out directly XXXX. films Ghostbusters: progresses, Box in $XX date, our exceeded return XXXX. growth of remain Box by by is tied billion continuing production Empire; the to lack $X X; Fu X expect These to consumers be more March of Office X.X% New in the a than have Box QX number office $X.X QX between and was and we results American was demonstrate because down performances million estimate the result for Panda as XXXX titles grossed Godzilla gross strong strikes. April North while screen. previous and industry. and the performance caused Inside on this, year optimistic more actors of want Turning as from billion, by Part released stronger see as May, $X.X Dune: again to big XX x reaffirm

it's estimates will XXXX, be over While and confident XXXX too both XXXX. provide it significant early for we a to improvement are

our Turning now on groups. other major to an update customer

destinations. We value-oriented ongoing drive-to, results all and continue to see our demand segments across good consumer of

our several of our same locations, on highs. case many attendance for some non-theater pressure in in labor, continue at Nonetheless, for the our been reported QX quarters, including to and QX coverage costs, calls. we some continue has EBITDARM remains in pullback as the healthy fixed taxes from X.Xx, we operators. Likewise, to and see increases As post-COVID insurance

Our its XXXX Play completing assets were and Bavarian at refreshes performance more attractions our over QX portfolio QX indoor open water The continued EBITDARM in project, drive late Eat in and revenue in will open with in square XXXX. A full opened of first phase Frankenmuth, they Michigan seasonally in climbing scheduled the with good beginning XXX,XXX X% The of will entertainment refreshes park QX. XXXX. offerings foot in are the up Inn wall number XXXX. After Topgolf in family to fund EBITDARM QX X & closed that our QX. of and center funded, course new XXXX ropes growth. X a units to including

scheduled expansion issues. the general any growth outstanding membership our while expansion in Our everywhere asset. Ski under despite ADR an portfolio growth. for project were the drive pass continues spring but fitness across Even Alaska. XXXX, continue this for assets show open Springs solid, Resort weather season We're offset results growth. the construction In sales weather-based extensive confident to in to Pagosa Springs at its will attendance challenges

be Resort Pass. Alyeska, room benefited of and by Alyeska the complete Hotel at are snowfall renovations expected completed the Ikon restaurant year-end. from lobby Our and an to with introduction above-average renovations

perform RV substantial to XX% And Lodge the north Our park and Hotel of Pigeon Pittsburgh the Forge, revenue very with at and we in the anticipate in Jellystone Rest is complete. continue EBITDARM. RV significant Margaritaville Kozy our & Camp improvements, Both Margaritaville Nashville expansion increases resort well.

impacted our have We some St. softness seen which and was Bellwether Beachcomber Resorts. ADR at the in Petersburg negatively market,

portfolio of year-over-year in Education EBITDARM. increases perform continues through revenue portfolio Our X% XX% the and well in to with across QX

to rent but KinderCare calculated reset retroactive last portfolio the was As year, to quarter. in X, a we subject indicated our first January

We agreement KinderCare to have reached overall an reset rent. the with

$X increased million, at anticipated, location we we receive the we are end and marketing. one our the overall back As which will rent quarter, approximately of actively by

back X have locations the took KinderCare year. We of last sold we X

largest New During transaction $XX.X investment York We Water attractions the our million. the lake, the sites established New Safari is access a acquisition private RV to heart Safari rides, in Water million sale-leaseback in hotel, operator Forge, with a York, hundreds EPR. Forest and amusement in resort of cabins was of trails. a the with and Enchanted and X-season park an water relationship to Enchanted snowmobile closed spending in Forest of new on a QX, Adirondack's, Old of $XX.X miles

relationship our with Karting, extended also build-to-suit We new on X locations. Andretti closing

value. We're in XXXX, high-quality deployed $XXX the $X.X to sixth lease million due we funding to million our to commitment which $XXX Andretti our is been quarter $XXX $XXX in compelling closed announced build-to-suit million build-to-suit Karting of for and projects year-end categories, Andretti on $XX converted and but to Illinois both is of Karting experiential The the for included will at of be mortgage area. X%, Through of have continue in acquire years. we approximately construction of call, closed, we deployed X a the expansion. rates million million Upon for million. call, funded, midpoint exceeded and another funded redevelopment financing next deals experiential guidance Kansas total deployed million, the with to one approximately our not City with range at Andretti amount range. In and items, opportunities anticipate maintaining for location, a a XXXX funds this long-term the are acquisition development have end, investment greater $X.X completion Cap contract in closing. After be spending to loan Schaumburg, the build-to-suit a our to also for creating land committed will yet we As redevelopment triple on billion. be million for net $XXX We these XXXX we that most location. $XX year-end in of finalization guidance provided at over be see capped diligence

new customers and We concepts. robust and have pipeline existing a with

maintain and credit cost unsecured operations, capital, with our continue of and will to our from proceeds our to dispositions borrowing cash from primarily hand, fund from availability Given investments discipline on those cash we revolving facility. under

capital quick on recycling. update a to Turning

X% we call, gain Branson, sold we As experiential year-end $XX our cap for combined Tennessee at proceeds in-place and and our in demonstrate Missouri a of both Titanic million. a million sale QX, $XX of the Pigeon approximately rate cap in in of on The rate Forge, on equity private investments. value a a Museums our firm net gain on to income announced and

million sold our approximately $XXX,XXX. $X.X of theaters the former a gain Regal of vacant also We for third and

of We have agreements X X. those with purchase X remaining signed for to and sell sale

Beyond theater Xscape have one AMC terminated vacant former X the we and theaters, vacant a Theater vacant in remaining Regal we QX.

financials. of XXXX range to the over to We guidance for the million. I $XX $XX disposition in discussion are maintaining a it turn million now our Mark of

discuss first will an I Today, our financial Greg. XXXX sheet close the and you, an balance update performance provide on on guidance. Thank our for quarter, with update

the FFO was for $X.XX prior AFFO year, and as included prior for collections the the million from year. decrease versus per share in in deferral the were in quarter, in quarter cash $X.XX out-of-period compared $X.XX per adjusted year, to the that million $X.XX was $X.XX Note versus were for $X.X resulting year. a $X.X income prior of the per quarter basis customers prior share share in

in than more well out-of-period restructuring Now key quarter to $XXX.X August impact of mentioned, current million revenue, XXXX. was reduction the was net revenue in prior variances. the by year of total The place year. versus offset deferral in decreased the the related million reduction investment $XXX.X Total revenue spending to rental moving $X.X collections a just quarter by as that that rental Regal the in prior took positive year. the as the revenue I prior million versus Within and for in

by of $X.X first quarter the year. recognized for other and prior Additionally, for prior year increased July to additional time and on this to and in operating the operating other of Based other $X.X QX, month investments income notes income and be million that the rent Regal, operated in & slate, percentage Indoor current due year. The was versus primarily that other will the million financing Waterpark August the on by since this relate other current surrendered due X primarily percentage expected lease. the to rents The consolidated year last later was is the Recall mortgage of million in expect theaters $X.X quarter Kartrite under to to in in mortgage the to slightly our Hotel EPR's prior lease and master increase third Regal additional and including expense compared film for be leased all of the to the parties in behalf have income properties, X increase we recognized theaters. year. been of Both theaters expense the percentage XXXX. previously early rent which

items as prior the the details FFO expense excluded would X some from give I are On the to side, year. following adjusted, increases like on but over

and severance to retirement. primarily for related $X.X million announced retirement of First, executive expenses the a quarter previously

increase of of in his the to for real in X third, in notes impact to for the the mortgage funded our as the the sale the losses the that due impact as Second, commitments estate sale mentioned and $X.X of accounting quarter comments. is investments applying the standard credit loss the provision in including environment. And is from of Greg million million quarter of primarily credit portfolio cultural changes of macroeconomic $XX.X gain additional the to well on attributable properties

ventures decreased our performance properties as Experiential $X.X Florida. million adjusted the prior joint Petersburg, due quarter by the at in versus Lodging FFO to year from softer Lastly, St. for

quarter the parks, properties In addition, our year had year. is these off-season prior while the versus first of the for in the expenses RV increases

Turning I'll some of slide, ratios. key CRE to credit next the review company's the

coverage see, and interest at be continue fixed service debt coverage in our strong As ratios at charge to ratios both you coverage with X.Xx. X.Xx, can

adjusted to the Our net quarter. debt X.Xx EBITDAre was for

development, However, on measure EBITDAre XX or basis X.Xx in of during better the as annualization or investments under annualized for debt the and of property acquired disposed was well to EBITDAre, service expected earnings of leverage, items. adjustments percentage the about points a adjusted includes as of other lower. Annualized rents annualization quarter, the put net adjusted

gross book basis to was debt net March at our on assets Additionally, XX% a XX.

increased we April. beginning dividend paid common with that in our Lastly, X.X% by the dividend was

very XX%. dividend covered quarter for an well continues ratio of be Our AFFO the common with to payout first

billion, sheet, has been consolidated At of in either move had fixed which great debt through all end, rate that interest X.X%. or we Now to of with shape. $X.X our which let's balance fixed-rate is a coupon blended debt is swaps quarter of debt approximately

drawn only million in maturity of Additionally, difficult quarter end the which our off our us $X anticipate $XXX.X on well million line years had of at given no the markets. August debt credit. We of consolidated average billion with hand we our cash paying positions capital backdrop weighted is X XXXX, which using revolver, and balance on due continued $XX.X

to of and confirming guidance guidance announced adjusted XXXX of FFO spending are as We $XXX previously share our $X.XX, per $X.XX million million. investment $XXX to

are Note guidance be other We details confirming of can supplemental. on Guidance the provided back also our be XX% previously of to year. expected the is we recognized rent the our of anticipated certain for categories. Page that about found XX to in percentage XX% half total

impact of collected per $X.XX we and I this slide, XXXX the we and as is deferral impact next the which quarter to remove amount adjusted the cash the of million out-of-period $X.X the the or On did of last such of per illustrate, growth on I $X.XX $XX.X that all quarter, XXXX anticipated FFO share as share wanted or for for basis when midpoint you million collections at of anticipate in collecting share first per from year. amounts guidance

$X.X of As when on adjusted the lease impact expected schedule, per XXXX X.X%. growth X% without recognized you also is see of just the fees at as can million. growth deferral to XXXX share over Expected XXXX excluding collections in to FFO be from termination

Now with remarks. Greg to that, I'll his turn it over for back closing

Thank you, Mark.

of value-oriented to for are the consumer to assets. we experiential demand environment, portfolio longer As demonstrate in a learning all operate for our continues higher resilience

summary, with disposition well-covered succeed a be for we start path for Additionally, a dividend investment positioned to for growth. continue shareholders we're spending solid off our and and targets. In to our to a

Stacy? let's up Now questions. it open for

Instructions] of [Operator question Joshua comes first Our Dennerlein of from Bank America.

tapping have Greg, you recycling? think you're school X you capital those prepared about early you education, properties but you want mentioned of remarks, I reduce do constrained, to in theaters. for capital and your the How categories also noticed childhood private

not Again, deal opportunities they see those. continue with not are will explore But producing, we we to available, become that. only priority and can properties our continue markets other we there's cost is have to as move as look to will but definitely I that. associated with first Again, and and think, we vacant because income Josh, probable clearly as at

to there's don't market further. Greg, obvious know is -- as opportunities team theater the capital start Education one great the we think on we're if I remains But needs, job choice those. you I Greg doubt our no to have... of and of I with his portfolio mean, done that explore executing a challenged. marry going have some

with strong revenue portfolio, continuing XXX% a EBITDARM grow. to obviously, it's and leased Josh, Yes, and

So I at actionable right time. the it's think

And go Okay. items. wanted of over it. the line to then the Mark, I Got guidance some just guidance,

Just like what what operating guidance? the then And guidance gets you this the us and flows a where end year? you of like, lines low the could gets the rent high you remind percentage end income and just and to low high properties through

is biggest percentage threshold. the we Remember, probably Sure. variable Probably Regal rents theater lease, portfolio. the the on a low have with

So all be properties individual rents. Box And percentage going our more to and then we specifically, expect be that's in contingent perform. how to Office on

down, property percentage probably that there's types, percentage variable theaters, the the is up biggest can of other on but the Beyond go or certainly rents performance rents. based other theater

show through other As and the got you the income on expense. up operating X other in and the far are side, as and those how that flow theaters operating operating properties Kartrite income statement, consolidated you've have properties

we to those. So guide

other will give the range to sense see numbers You of of a get for what and expense guidance supplemental we where a other our can those be. on Page income XX

side, other some But go the is is then that there FX income and impact the Kartrite, thing reported equity ventures, and joint the joint is on in ventures. is also there with theaters those properties. And operating primary impact there, along we like the operating income from or JV and which guidance operating FFO as that really forth. those other loss through from the on to can so the addition provide expense In

properties RV we properties that and in. those parks. have that's in operating the So then St. percentage And Petersburg again, are, our interest a

Rose Our next question comes Citi. with from Smedes

And when operating concerns propensity I on any guess, you any a of voicing your tenants, particularly consumer side, know, I'm the there's I they around you're the front? are just kind talk that the along thoughts U.S. concerns have mean, as wondering if been consumer. of of health any to rising spend? just or kind maybe market middle wondering, around seeing economy, particularly you I'm to

Yes, Smedes, close again, clearly, contact as numbers. voiced, to them it we the but not through seeing we continue in as being be concern to -- is seeing can. we're not with the flow We're

there's in concern so point. about broadly Greg far, sooner. the in of about and discussion kind in in media of the talked Eat kind the up, especially think flowing the his a through of & kind as I see general area, would about we EBITDARM we But which numbers, comments is talked that and Play

even continued Cinemark's the about, if they're If and food out strength again, and you talking about with saw talk today, report today, moviegoing. earlier you beverage spend

doubt So seen just materialize. it even there's though no a haven't concern, we it's Greg?

No, covers Greg. it, think that I

been us of I the the same what it still terms like purchase just sale, progress of just has remaining And quarter? Is there then guess, can incremental any progress, and theaters me, I status wondering in guess? the sale I remind since agreements was for or sort vacant on is -- last the remind you

Yes, Smedes.

the have contract So theater Regal's That's and X we the about under of obviously, in announced last X sale. remaining we same quarter. we of as QX, sold X

on is as ins real want We to quarter changes a of every make and function underlying estate. zoning LOIs, folks or report usually some variance to a the get have which, had outs whether we

to remaining like those they it's thought. We interest longer do Regal. in have sometimes feel take than So they going all

Theater, We we Jersey. the get significant Hamilton, the interest starting at which AMC, have in in end terminated to New the we're just is also interest then of QX. Xscape which in And

good we've plus year. since we around we COVID, for our leases a that X In cadence and and year, or averaged general, about feel So minus, theaters, good. this XX we pretty sold pretty feel terminated

comes of next from Our question KeyBanc. Todd Thomas

seeing Nag-Chaudhuri new This you on and you wondering pipeline your just for Thomas. ahead sale for capital? Antara running guidance, the talk is Todd is the little you're for I to for was acquisitions pace about is front, know underwriting? the could X% higher are deploy a new that leasebacks? trend on I above yields deals a potential but there the And discussed that you more investment

Greg?

I would -- let well. Greg as I'll say comment

right cost always, exceeds opportunities available as our capital. our think, -- I now, that our

selective we're doing. we're So in being what

pressure fine that there's the I move reward those quality. of clearly think to yields. line on rate, risk cap versus It's and

we're that what more think think numbers comfortably something -- moving is Greg? I dealing I that but is Xs, it's But those say continues we and as is everybody So in that would the with. that up is constrained more capital

cap we'll we Yes, continue still the on I and that in those there's on And I'd verticals agree. most say year. are upward actionable rates. pressure see our continue of to opportunities to throughout work

rest could may just think change the percentage around Box I the that how play as of up percentage back and portfolio Does Regal overall you And to we theater mentioned theater about discussion, and rent is your year rent the industry. the Office that the outperforming out? the portfolio math targets the if Okay. follow

rent No. have with and the screens generate Mark we In the say, of we is that. X% the This is and vast portfolio, X% percentage Regal as Greg of Box Zimmerman. we our in the of theater percentage our portfolio In Office. the country discussed general,

have We Box expect in monitoring theaters. the rent those Office we're individual of and performance percentage to QX

is the share to what's or on next outperforming still we're we impact and last to when underwrote as we say, But can these X we outperform. again, -- is their it, X this portfolio comment I is it's I say we're Greg, you our of Regal kind outperforming, going as expected. continuing rent mean, year, performing percentage market would were months. is

by kind half was the kind of really kind year season. said, flow second to the to them, out. just really kicks see the we as these That always and then, optimistic. are and May, we'll of Things months. titles X X the governed summer going projected at next or of look of to really starting had as be the We're it Greg film upside, and hopefully you is the start weighted play how heavily title in with downside to the off, -- tracking If calendar, have

we'll that this guy fall currently, X that weekend, have projections at are see May we $XXX million films Yes, starting opens. around in the our And least are should or greater.

Our next question comes from Ray Zhong with JPMorgan.

my on guys first teed a quarter. year. one spending the It already guess low of all the actuals the adding you roughly guys for that are I at is end things was follow-up year seems range. of I the up rest got the that remaining the printed the this like already the you with for

the mentioned pressure yield. guys You there's on some

think right just negotiation for now, to try it, know million this So the well. continuing just -- or a or as is it loaded curious back-end at could to the months up with it remainder taking so ] [ or past pause is X anytime $XX our in rate happen more about coming the of

measured. Well, to quarter. balance I we're versus now a might the we third right always limited see the needs deal in of think good Again, it's trying what we as trying to be capital have

to some the a balance right now? new a meet our was the really balancing attractions got that of, great. that with a to his of tenants which while there. advantage you But trying of a some team relationship of either asked also tenant, question got comes and a, strong and needs a and have can Greg is think new end So future opportunities to always look deals opportunistically capital them. we we've nice look I Greg always something we trying got back have degree think to good what are are holding okay, really we what or agreement our at was at quarter job tenants that some readies dispositions a supported and so are his forward, of got existing we do of existing the things team we We that and we relationship earlier, to take with that? And What this accelerate of saw say, mix also deals

So striking be for capital while balance earnings, in the it's year find through. spend balance of that as challenges opportunistic if the great within the that we runs right world to that year and first because quarter, a entire to us trying that's limited for everything

-- it's to trying balance. So Ray, that it's hit

Got you. Got you. are on now. guys if you on the you any that. on sense. ever, priority That cap vacant there the color Anything source the guys side, for And helpful. that mentioned guess theaters the And theaters to well would rate, with contemplating are capital that deal is makes covered? any Is be on

strong theaters think is of mean we what would really very I the industry I seeing. is behind challenge Yes. transactions the that market There's are overhang as of us, doubt. the the they some as has -- X much seen a some lot call people major better no balance this getting is of Regal's recovered, of largest Clearly, our we still better. have X as Cinemark on you if industry just have at Clearly, had is is And retire their as strong than they sheets good look XXXX. or their they better in and bonds earlier of quarter. not operators,

But is I that So think Greg? market developing.

if XXXX. on, able to the out is and which continue because to out any obviously a are on wouldn't betting a year that I are holding the Greg cap be said, cash on people seen haven't because, it's play through will flowing and playing recovery, theater, we of decent theaters into the of end agree. trades hazard just as I guess And rates

with Stevenson Rob from comes question next Our Montgomery Janney Scott.

of type you any look cetera? Greg terms more that? And refresh TopGolf portfolio. indicated and bumps, lease returns? guys the the What or or those are of invested to they do? some if dollar locations on changes like does in funding refreshes Greg, the And do term in to are you was et what going that what expected that And so,

because is they Yes, figure out fund Rob, to much refresh. I want wouldn't know XXX% ones exactly which they it They themselves. how

we there's also when we a What the -- polish to of term, lease on grass and the replacing no don't sort of on return the happy, and is consists real investing outfield So restaurants, don't and in a change tenants estate. thing. the the we're are that our our asset, obviously, paint if get existing But then it. refresh

thrilled tenants our always we're investing in are real again, So when estate. our

mean of say, Rob, safe think millions it's I I Yes. it's to dollars.

existing they the refurbish dollars b, take continue And no, on of and to tenant And about spend wear on the two, that. an location. commitment is busy the to of don't to about totally commitment what millions that how the tear operations it that investment. someone and talks the But ongoing existing of it spending we It's so location, If of our location. TopGolf's talks any to dollars are. is we

capital? that Is of are a that this this on you would you rather that mean, of does cetera extend guys Because is I times, cost lease, they then of that you lot landlord et Or because and stuff? because the of down it? do it's their the turning type improvements.

this invest rare your -- and it's on money to tenants And so that go it's the their own. point,

FF&E would not like be be responsibility. as have replaced, it their us, we things theater business it's and they this much that approached everything other to in our see Again, but that our indication and need

this they would that as of to, all and our We with part of lease standards maintain see that to we an just have we responsibility that tenants. our see ongoing have put certain we in

assets of I so not mean, And Flags. has and Yes. as Vail ours Six it's refreshed unique. their

So not unique.

refurbishment of real or tenant. in sort estate, invest best not of the generally the FF&E and for of use We sort and painting

thinking $XX investment in other to going guys how in multiple that the state to then There's talk your you California how I'm industries forward? impact invest wondering these been types incremental your some about minimum And desire nationally. expanding and potentially locations wage are about tenants with days. would that of Okay.

soft Murrieta, February, are this Springs be in summer. in We of we opened the a the fully Murrieta obviously, in Hot it California. midst will Resort opening Well, opening and had

investing we're would in feel continue we say like larger assets. worth in in. general as a California So to proposition, investing locations I good are

value So at time. looking the over

with question next Our from comes RBC. Michael Carroll

about not property types remarks, of in your I you're in? to we talked different bit find deals? prepared are those discussions as kind what earlier we currently and of are investing you're these mean, those I I investment that opportunities type should relationships guess, you properties think potential to about? a Greg, guess, that about continuing little talking new what your mine

family they're within the fitness solid the all We year But of with an we asset, couple a them. -- is a business, at a agreement you the Mirbeau, great the examples. with example relationship did think of I'll end I give have and deal verticals, Michael. which No,

like we our So feel that's helping expand and category. fitness to wellness

relationship ongoing we've Central Old It's great in the As mentioned, a asset with I have around and a New in them. an again, been mentioned, both obviously, It's for as had And Greg we're Safari Water really operator, Forge. XX then happy Andretti. relationship and And probably Greg we agreement with in York years. a Adirondack's. with new

to do a So we're able deals. be Andretti more couple thrilled of to

So the vertical. of And expanding team like looking aperture verticals. always is the tell we're the what my we're within to I'd

guess, cost relationships? stakeholders then improves, I capital talking capital? just verticals? then space sense you like strengthen that and to what of deals to kind more And deploying then capital into and And the aggressive can you your within it are doing those you prepared those deploying be those can when smaller kind of be of Okay. make to specifically Is

on I'll Well, in and jump this.

and of great going done job agreement this about and -- a you're deals. Greg and in we him agreement. a we think talked and relationship do What think relationship a is talk about have that hear I his go we phrase you right team we're deal we have forward, to involved not we to to going as but every are those see this deal, do only --

So it's preferred us pipeline creating it's we as are obligation, grow businesses but capital their partner. not their an they for

mentioned, forward. deal to we not us a future Greg got we transaction, every want going have in when this capital, a of instances have to with deal. growth. And We an and that an us we So only one good pipeline will to enough opportunity do are did where for tenant grow environment a just deal we limited that which the but this it's give not relationship

capital job to a not So it's team future. deploy that great today. the capital creating about only about into and have of for opportunity doing done his It's Greg deploying years that. And

grow these I'm market these guess that, you, one create relationships do where And right like financing. get people just then me. I that assuming so Historically, now, business? with dried up last looking their for tenants they typically is pretty to can and they're

that they've relationships in groups this loans. with they've the most gotten And relationships. tier next as say point for or those on of to as would aggressive these are more have I at not of outgrown grown estate either because that real are size doing they banking they banks a regional time, Again, banking always,

primarily say in world. I So it's that would

Yes. bank And are to than certain and to less say, as also go long we'll is Michael, not if probably look, the helpful maybe underwriting going jurisdiction, a within the be supports I grow U.S. regional you would because a we anywhere want over our location. then as

with think typical deal industry. once across terms advice us, to they in trends lot see that that start people So the and learn the your relationship we a we table banking things that to I of bring

a lot these our that And doing aware the things be we're deals have world an in triple-net again, kind that others several to Andretti's, Andretti's done them, get of then of agreements done we once I But we're selective competitors as but our size have like competitors have next relationship think triple-net and you doing in so us to can deals. with allow candidly, that certain see we deals maybe them. with it, where of

further remarks. now to time. no for closing back questions to over Silvers at I'd this like turn showing Greg I'm it

NAREIT Well, us you you, in everyone, all forward Have Bye-bye. We probably with look and joining coming meeting attending. day, and investors thank to today. for great thanks of for up a shortly.

for your today's you program. in the This does participation conclude conference. Thank

may disconnect. You now