EPR Properties (EPR) 31 Oct 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the EPR Properties Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Brian Moriarty. Please go ahead.

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

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

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

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

liquidity financial we more direction in terms banking profile, revolving and the partners thank strategic in progress credit continued facility have providing entering experiential into Brian. third steady was invest that quarter, the the webcast. In for a you, strengthens confidence to third everyone, enhances favorable underscores joining meaningful that A already earnings billion our positioning and properties. select and growth. as Good new strong and our call our quarter milestone in health company you we $X Thank morning, this our us XXXX key on today's further make facility for continued while

free and of invest cash the Our continue we recycling from experiential proceeds assets. assets investment strategy noncore in remains diversified on use sale flow track as to

we demand continue investments Hot for investment excited about growing newest are of out We Springs build our on Premier to and as properties, the capitalizing wellness-focused experiences. our wellness portfolio in fitness of

our by on in strong, us moving the X.Xx. investments. source remains gyms, wellness from these of slightly non-commodity and fitness the focus our growing Overall, affords areas our deliberate to industry, opportunity evidenced moderated As climbing although investments to well-located X.Xx proven it coverage

over Owners, in continues further as is it positioning successful Eaton it We expected highly brand. along for latest top key years. entity. this pleased capitalized such theater sizes a the Our debt-free, National X Callaway non-theater unchanged, to enhancing next quarter, air coverage of during all sustained Theater and to will believe our very coverage and division did in into and consumer a hear was the intention the upgraded as largest investing signage and we the anticipated we upgrade more these golf sound for the company's while as as to modernize will key while It's decline a spin-off announcement build areas see theaters with experiences titles success. by results. Separately, momentum theater demand of Quarterly off than maintenance and spin well calendar. the expected event that $X.X highlighting that also we due Association delivering be strategic nationwide. Also TopGolf conditioning, that chains had a to to technology, billion, separate theater lighting, its production were the positive enhance of projection adding to leave will audiences X Topgolf focus will updates play moviegoing be for with the announced the include strong The seating Topgolf

a great as the they their have see strong plan. to look Topgolf to continued continued team. We management have with We relationship from strategic forward forward success portfolio with and move performance TopGolf their our

with Lastly, recent those the our hearts impacted hurricanes. by are

Our have had hotel the the St. properties impacted who on and of lives and the those in work events in these Petersburg live significantly we devastation area. recognize Beach were

to Now I'll the Zimmerman turn for it more over Greg quarter. on detail

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

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

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

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

is provided based of $X.X Turning billion coverage office X.Xx portfolio period. is slightly period. data Trailing for for X.Xx. a portion The Overall to last down theaters most XX-month portfolio at at XX-month trailing quarter. box at our June coverage X.Xx, XX-month on for non-theater coverage the with remains recent from strong same the remains Trailing coverage.

strikes reduction Our in reporting box anticipated theater XX-month and the in assumes during trailing we the office entire the on was Regal period schedule. period. The coverage trailing release the theater overall from was for as dip XX-month in slight the and coverage impact had deal that writers place driven the actors by

box impact the of the theater recovery rising a of remnant office, XXXX. the into will of and is negative this see expect strikes. We of QX And we coverage with last the QX

Milton the of of tenants, properties. Florida wanted Before impact to on status our operating updating Helene I the and Hurricanes you on our address

our by storms. First foremost, the all with and been affected devastating those in have remain thoughts community the who

by Our X Beach sustained Resort only on Bellwether considerable damage. storms hotels the Beach, the and the St. joint venture Petersburg significantly which Beachcomber, were our impacted assets

period, the the hurricanes we a are assessment within X-week finalizing a hit Given of still comprehensive damage.

to values. our the anticipate quarter, we to during the partners, result we identify which faith into our forward, we of hotels As in our reopen do provider from with charges we'll able impairment debt We and Accordingly, of $XX.X until recognized ventures insurance fully companies the wrote in the of both now, the work joint to the carrying joint expect path will well XXXX. on be not portfolio. plan and off either good venture removal million, eventual nonrecourse

to status our Turning tenants. of the operating

We at totaled to billion, rebound a American billion office. for the office $X.X ended in and North X $X.X box box see QX continue first months.

from The July first the while months outperformance down same against were XX% was QX first in in largely office. Box July comping North the of XXXX but titles by up number Barbie, titles of ties down down the office August directly XX% for American $XXX XXXX, X Led only of X XX%. because the were to and XXXX, released. we XX%. And released of months were XXXX performance exceeded XX% growth was million box in and was Deadpool September outsized Wolverine, up period the X

the previously new I into the to releases XXXX. QX, $XXX related have office, strikes from us. more mentioned, and we resulting films is on box lack grossed As are XX in behind To of million heading actors the confident negative writers than impact date,

Wicked, XX Sonic and gross Venom in QX million X, $XXX million. to Mufasa, include X, Hedgehog $XX over Another Gladiator X, to King. the between and X and gross Titles have million projected Lion Moana $XXX the be released

on the and XX, to XXXX the quantity upward that results last quality will continue XXXX, into slate and the box and quarter an through We trajectory are of September propel office. Based for between XXXX optimistic billion the for expectation and guidance between office are increasing from $X.X billion. our year and compared $X.X $X.X $X.X box of last year's billion, our in billion $X.X billion to we prior calendar in to

ending and the of box uptick encouraging the of results in the year, provided QX strikes. quarter. XX, July billion, lease Regal lack the most with XX-month $X.X the office last we despite period owing QX, product trailing in consistent forecast from was is office for Finally, box This to the

to now drive-to destinations. an customer update groups. across good saw other We results major Turning on value-oriented our our

XX% self-funded customer refreshes are of our Cedar to efficiencies slight or Our and certain their Oklahoma pressure the Flags operators to and in Topgolf which portfolio. Six in completed cost decreases at continued assets at on taking ] and our entitlements construction the ready led Fair City under X [ Schaumburg. combined, and self-funded experienced in July, in number EBITDARM. And another driving finalizing carding refreshes for expense of Kansas merger slight and experience. City in plans revenue, focused decreases of are seeing is enhancing completed properties and

its PM Gravity XX:XX Nast Haus Construction outstanding asset. Springs of continues Even growth the confident the for Our Breckenridge scheduled Springs Readers' in Awards. Choice continues in the will performance, in was named the world, XXXX. Conde -- strong eighth to Resort we're and best the the expansion construction, drive extensive this opening hotel at with at in Pagosa Traveler's expansion strength with spring the

our collectively, its continues good Resort slightly lodging completely receiving our Finally, operators' up portfolio, experiential and Hot Springs reviews. In is revenue Marietta ramp-up year-over-year. our while was open

portfolio perform continues to education Our well.

which year-over-year, portfolio early the across EBITDARM Brand XX X%, largely while decreased wage under the X% revenue by customers' quarter. increases. KinderCare, assets end after of driven went childhood of operates Creme education their Our third the public our up was by

Turning properties. to our operating

with lodging St. Our of was Performance at venture office joint hurricanes other issues. impact box Petersburg X to improvement the weather-related assets by driven and show expected, the recovery. continued managed on than theaters experiential our lower primarily the

in Hot several also States by $XXX.X springs Mountain partners Mountain Colorado, for During springs in World Iron the Texas, reviewed Colony, Glenwood Springs QX, among same Springs and natural mortgage world. Iron hot consistently is and our developed a Hot Hot attendance $XX EBITDA. hot top X investment throughout at million. and in as $XX was well Mountain pools closed Springs Springs We the owned year-to-date has Springs is Iron the both United Grandscape Springs the financing spending million, minerality with attractions Hot and World capital for on million who Springs, off-road

$XXX outstanding and quarter from for acquisition opened the but yet a an Springs both funded Hot investment assets X our see funds opportunities to build-to-suit are the be approximately range $XXX redevelopment Springs most over We expansion. have and in to deployed years. In are guidance closed, million the for of to million not redevelopment for that projects Resort $XXX and categories, deployed be asset add Marietta also space, to million Springs growing of to recently our the iconic continue high-quality which in narrowing includes development million Resort. We're end, Through pleased our of we million. to a XXXX to and $XXX to have such committed stable next Pagosa we $XXX of experiential and range experiential

credit cash discipline to fund cost investments dispositions from our to loss $X.X revolving of capital, $X.X million. approximately continue million, we borrowing sold we resulting for school of and hand, and from with under QX, Given primarily former proceeds our a cash will KinderCare increased maintain net our combined X former facility. In availability proceeds on from Regals unsecured a operations, those and of vacant in

year, the legal Subsequent $X.X after to sold million. the quarter, totaled proceeds another of months of conclusion months of we the disposition vacant little proceeds XX for former bankruptcy over For $XX.X Regal X we of the At X. the first taking vacant sold of a possession XX and have theaters, the theater end million. Regal net

sale X We remaining market for and of the one. continue have agreement and to a the final signed purchase X

as Cinemark last which California, In former for a on Day, addition, is in It indicated we shortly vacant closed call, being sale. after us. was marketed Labor for operating quarter's now Regal theater

have theater. have Beyond Since XXXX, XX disposed and former we we theaters, vacant X a these X AMC Theatre vacant remaining theaters. Regal Xscape early

updating on pleased that pace $XX million. I Mark now of it to overall vacant the disposition cadence XXXX and $XXX of progress, particularly for with We Based discussion the dispositions are Regal the financials. with former selling are a guidance turn for to we over to million the theaters. our very

in $X.XX year, quarter, our million was as an quarter for I deferral Greg. $X.XX no was to third resulting quarter share prior included the prior prior were Thank share income per for provide per the close per that for the in and an our year. Note AFFO performance $XX.X and on financial in on with balance prior was the in a versus collections about Today, discuss customers $X.XX guidance. $X.XX on-period share year. FFO will update of versus $X.XX update quarter for you, XXXX sheet an adjusted the compared decrease year, from there the basis cash the

over by Excluding year. increased versus this impact, share prior FFO's adjusted per X%

net of increase $X.X by was versus from revenue the moving year the Within deferral prior variances. collections investment under mentioned. Within as year. master key the mortgage $X.X versus Cartwright million increase in over and in related rental that other million sell income and tenants. an these percentage to and revenue, since more operating notes September we the was The in the the location. related EPR's the The were theaters. the theaters in properties, decreased positive million quarter the additional year by revenue early revenue, was year. increase of mortgage August The and our prior over investments closed XX, than park as in $XXX.X versus as of to well year. Both have prior Now previously $X.X just Total this the was compared expense year. including percentage Hotel the due lease by consolidated other income third by rents X to rents leased which additional million total The to to and behalf theaters percentage been primarily $XXX.X $XX.X note spending reduction primarily prior discussed, the in financing Regal to other previously and offset I X impact million, million plan XXXX. out-of-period for for due Regal, of the rental for and on to that in operated quarter rent past operating Water increase we to on other Indoor theaters, past X other surrendered parties Please the other income expense

expense side, to well related in revolving $XX.X an expense compensation borrowings a the facility $X.X the primarily unsecured professional decrease fees, as costs, as G&A decreased net short-term to On prior due investments. to in those quarter income million to expense due year prior million million year share-based including lower payroll $XX.X in on noncash the the Regal including compared quarter for expense as well as interest resolution. Interest lower versus credit our by increased for under to increase the

by properties impact Florida. of in prior the including September weather well year, forced from and shutdown which $X.X as of expenses, Hurricane our adjusted late decreased both FFOs versus to Lastly, million St. joint the due the higher Beach including as lodging for primarily quarter ventures interest the of in insurance Helane, issues, experiential

the Additionally, as investment joint that we joint FFO recognized the determined that damage we Hurricane impairment our AFFO. These well million was values. charges the Hurricane a St. ventures by properties Pete incurred result on these off of are as as Milton Beach well to from not as of recoverable. Accordingly, October, as ventures both carrying during impairment $XX.X unconsolidated from Helane additional damage the the quarter, as excluded write in charges hold fully our adjusted in

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

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

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

XX%. net assets XX. book September our well covered payout ratio very XX% the basis common our quarter was Additionally, at on to debt AFFO dividend for an be a third to gross continues of And with

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

in quarter, our weighted credit. funds A line end, full Series consolidated notes with $XXX using X just we under maturing debt our of available our $XXX.X XXXX. million is repaid under During maturity private average of years at Accordingly, the only placement million through quarter

at extensions As and to billion to previously amended subject facility maturity XX, months a total October XXXX restated revolving additional for conditions. the our with and September credit XX we extend of $X announced our to on option

financial facility. capitalization points, assets and spread borrowings with being rates new and pay simplifies basis pleased to investment used value the lessens are by grade on consistent the rated reduces on We under modifies the interest the that facility facility rate the covenants our XX we

well our balance $X on at remains see, can of position revolver, hand $XXX only cash end strong $XX.X on new you million with us quarter As forward. which and billion liquidity million drawn our going positions

investment to million a narrowing a million are range $X.XX, to $XXX of XXXX from of to $XXX of share to a to of our guidance $XXX guidance $XXX per million $X.XX. to FFO $X.XX adjusted We million. And as a range range $X.XX from range spending

million, a range to a million. proceeds million are range to our $XX $XXX to $XX of $XX of million disposition We increasing guidance from

percentage the we to $XX.X guidance $XX.X interest million, quarter, and $XX participating higher are and percentage to rent range million a expense million million $XX to to rent and Additionally, to due million. of of our a million, during third of range increasing from confirming general our $XX administrative $XX

providing On in ventures. the and the operating properties on next our held detailed those guidance slide, we we are joint have wholly-owned

We range of are for to resulting million of million from relate $XX.X owned Hotel. income and $XX.X revising the Water properties $XX guidance expense These net million, to a a a $XX wholly at from the to to million, range the a $XX million, million to profit a the other million to changes primarily $XX in $XX of performance Indoor to $XX of of midpoint. $XXX,XXX range at other from and million of reduction operating Cartwright Park range

JVs costs expect Lastly, FFO loss $XX $X equity negative million. This on if portfolio, these to $XX a of on reduced in X we to the range St. of EBITDA properties $X is of XX from hurricanes to also by on removed mostly and income a the to at are range of interest range hotels details increased have on the million the hurricanes X a including to Guidance we the million these Beach. the revising be million, our from due weather Pete been be that these adjusted supplemental. our properties for due expense. the million our the portfolio, of to is insurance to from the Page issues, properties severe million at our from are expect of and XXXX can our to $XX range found prior $X JVs from have to we properties and from a caused damage we earnings X to both particularly nominal these of expected quarter. Note to experiencing eventual impact Because both fourth reduction removal we

to of in the the growth you per anticipated illustrate XXXX When the that on million quarters, share. On slide, FFO of share of remove I per adjusted next impact the wanted basis and midpoint several from in at for expect in out-of-period $X.XX as million the last or cash per guidance. the share $X.XX collect $X.X XXXX or deferrals amount we of to $XX.X impact XXXX

schedule, per QX on a from more can without we as out-of-period only $XXX,XXX FFO result comparable As be we growth expect XXXX deferrals we continue XXXX. you begin lap that to the X.X%. in see to deferral note We to as fourth collections Additionally, quarter, in the adjusted to of share XXXX collected

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

Thank you, Mark.

in favorable our move we benefit renewal to schedule XXXX. our it We in experiential Operator? terms to current forward call continuing by and perform in evidenced look beyond. With I open environment. for from focused properties our questions. demonstrates more will our XXXX our a don't credit substantially credit film to as providers forward and theater partners recent at As normalized today, reward into shareholders to more strategy. continued capital up faith our why that, portfolio the well return a line

BofA [Operator Instructions] Dennerlein Our at comes Securities. Joshua first question from

of and just This office the was as back confidence increased out Josh are you to as well results the the be results behalf acceleration? year's of well based projections. the what's last office box is weighted lot Granith going about to as their releases Venom the Dennerlein as of Farrell pickup kind going of a guide on curious, performance, movie the and the what's question I driving half the for line. coming slow of on box

the generally pure comments, growth and his more talked that's expectations, seeing we've the fundamentally, of that. Again, we the I you're and seeing saw has title substantially. as a as titles. what as kind many to released needle moves far of titles of in Greg looking no that number that issue consistent at with more we're in about reality number X the as is seen Again, is think pre-pandemic, of we're normalization

don't the of in titles and overperform. be So the have that of get some expectations number titles appropriate of number much But those, all always more the you the wide-release we that. But confident there heard will underperform if know Greg, and I if of you? titles titles we

on in that major office. in to box major 'XX Yes. releases metrics And XXXX, XXXX box Through were million increase some and and same compared X the just less a QX, it. we about million $XXX in we in to of we $XXX QX, 'XX, had translated office. was there as In in number had releases down

The to at that good time, we all performance title. other predicting not thing individual what is repeat just each of the said say Greg the we're

X do venom million. one So is the okay, to $XXX bit, million to do or that little Inside no fact down Deadpool a $XXX but expected Out

So said, and confident at we projections. our in as all that look Greg are

to Okay. with the And even also pivoting slightly? relationship or Is with exposure strategy or this want of Topgolf just and news of a curious on of you'd little your bit reducing maintaining was I expanding kind them your going the spin-off. be a forward?

comfortable I our think with we're exposure.

we've noted clearly we done years. X X the -- we've over last Topgolfs before, As

a major So it's like markets. rapid. stated not publicly, we We've

top chain. of if X look So San we've all their Jose, locations to and King that L.A. at open for X done Prussia, suburban you the

cover the it. what know us, you we even exposure and position for exposure. million like cash, know with we fact and of a very but a the we're -- assets. have, But and $XXX I don't that are, high-growth our don't our out our curve I of for strength properties with we're have given no the anything again, So with that so see, financial very performance the they comfortable rapid a leverage if it's of being or spun if We to comfortable that Greg, area our

from Citi. Smedes Rose, next Our comes question

office this was had what the any I XXXX. wondering like look you at box of if thoughts just point could for

seen from we've others. tell I what would you

consistent Greg? thinking you've completed analysts would that Is most that what We I say are mid-Xs. with have not seen. people of hours, the kind but

also seeing slate. just into Yes. more we're visibility titles the on and Smedes,

of XXXX. October So in we year, we thought be there'd -- titles last in

to Now in October. we in XXXX be there's titles XX think going

in So -- XX that the shows titles there's slate. you we more have more

we're better cadence. about So feeling much the

Okay. focused like And of that as at any look is on? kind of maybe opportunities looking change kind been kind in to you, What just kind and in then pricing you're out the of you've market ask there? just I wanted general, of more or sellers transaction

don't we we're seen I capital lot Xs. capital. change that's mean, consistently in pricing. in very constraints, have comments, trying that we're think we've in multibillion. we are And we're We're we've of how a in -- I know his our a the I been to disciplined there, deploying as Greg bucket mentioned fill that not given

doing approach think team and they've Greg done disciplined asset. which assets time asset, iconic is the want, I an very I saw think be time, like you and us So selective and to we focused Springs great and a we're for the their Hot this And his go it ones job allows on took that. of what to that get but

And all Yes. as remarks, verticals. say, we're mean, seeing in almost would I I Smedes, prepared in my of our generally opportunities I said

is full. So the pipeline

As Greg said, we're being disciplined.

from comes Kilichowski Fargo. question at next Our John Wells

you're was the kind given just maybe question talking you're and there of back deals? gets like where about mid-X of now like way pricing if kind referencing you're you simple not, fee focus regular going last simple to And the is to lack what for on number Or seeing and of rates your that mortgage loans, what the acquisitions Just are seeing cap the pricing, kind those acquisition? on the on the fee of type that ability of lend?

I a fee convert conversion that we John, into -- lease structure. this lease simple remember would conversion so we even financing, we loan can possibilities it's have say have important net on that -- to

expansion So that's some there's anticipated there.

So some of almost to that the the mortgage that had all really of for period our ability convert you in. time see structure isn't

always So convert plan in that we that ability have generally to there's a that. look our features mortgage like to

an structural fee-simple asset. going as ownership, issue of leased I of So a -- just that into kind think moving but would net

you're talked equity? then in math Got it. I and make buyback cost just And maybe through general, at for constrained. does Or the today capital just about on capital how then about guess you multiple does start it you your to us you sense? Could what it thinking about being the walk you're issuing when of attractive get thinking

you're you look Well, it's we're say things But is what again, your of the you at? and at function if very that. and it's of of at point multiple inverse XX-XX costing, the a basis. accretion, simple generally a financing what what kind at. of buying to are equity trading What's

again, right you're that, really So the the unless in do gets attractive equity -- something somewhere you're probably you to if mean, to unless double-digit it's issue I it buying now. so you not in X, area,

grow total in X% range demonstrated double-digit numbers, we can a attractive And so comfortably that in sake. that think we're a grow again, has Mark X% we're shareholder return. And we our with very to to dividend very not going just of growth's still -- doing. with still for We combine as what can still, is his kind

we've capital in enjoyed But in the return deployment. expansive of more we And as with recovery see then at will start that attractive again, think that some we I past. people's capital. stewards capital to as cost get a the again, our and we're a we kind of being assets, of these go to of of again, forward So comfortable people will, look more more

that buybacks results. We So without share people not always we're per assets not corresponding -- growth remind stock growing to the are leverage accretive execute going execute just

Neutral.

at compelling of option stock. now, neutral it a we a So basis. leverage buyback compelling right at look And not a on today's that's prices,

very term. we helpful we're is which clients In service to addition, think our able the our customers, and long over

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

continued operating strong part moving you're lodging the incremental assets. comments and not hurricane performance insurance the interest St. your result enough damage increased or was of or even warrant the on costs? just a from previous to Mark's Greg, that Pete investment Is on given on

I say best named what the a rebuild cost Well, don't separate very, will are capital, it mean years mean, I of being, combination look things to But costs up codes being or of last Greg the you just a situation. And that's our idea not have there going stewards our of build, like substantially. about that and insurance the probably that have of both. deductibles, you X which -- when then at said, Mark? capital. I X as creates be think think our I X to eye-opening it's kind that shareholders' very you the bringing new been over we and up deployment gone has will storms,

Yes. on And there damage, but didn't these but would a make where top claim, been couple I water X We damage. the point there revenue. past of X% Rob, X wasn't it have of by wind significant mention the hotels a storms of on necessarily that, other for a storms insurance the essentially is repeatedly years. a were number costs And over you, or to hit put have been

So it was significant.

cap In loan interest we buy addition expired that SOFR-based the also to to -- in had June. costs insurance, for we a costs, had on the including loan needed that operating risen agreement because a

SOFR cap So expensive. again was a kind on of of obviously, cap at that putting X.X% on

So I'd risen. interest say, also had

the at easy on have certainly involved sort I think looking profitable. fairly impact it we're marginally of XXXX don't and it it's hurricane but made So going deductibles a was what to big a and decision. earnings,

not And then thing, to continue. more just one

going kind of costs We will have this be after forward visibility into what insurance no devastation. premium

well. concern significant that was about there as So

type case comment, Florida invest property coastal last desire that Or future? the that to for influence guess of by in does foreseeable it basically any in your case? is I

actually is It's the right case for sustained of damage on earlier, become us. set and beach. that unique its have in I it's Greg most by insurability no And noted therefore, our other its to This mean troublesome as increasingly exposure properties Florida. very case. little

that Okay. different And victory then, is materially Mark, exit anything you proceeds I Are know when than getting here? sometimes out gap reality. any assets? Or you paying is these without additional expecting

cash impact We don't going expect forward. any

real cash we to perspective, expect Now property. economically, But be still don't done the from I could the we're any with we little be a likely There think would say decided. of I costs some accounting a of say likely bit we kind that outflows. report. cash sort is But

mortgage case we asset this the of the Okay. hot is this thinking in in and types well? the should itself Or that investing be investment own you'll And in or then way is these this mortgage, spring, about in businesses? future? the assets similar the lent acquisitions as to just loan future a investments Hotspring assets How the you be particularly and quarter

mortgage this couldn't credits without involved that I that There tax Again, fee expansion. credit those. ownership. we are to some are are there -- things There's is other going that think jeopardizing some

just the earlier a not think would this I as vehicle. So interim would I to caller, as a of said net ownership. an I not mortgage like fee It's -- step lease to

are net Springs And Hot Springs leases. Rob, just Marietta clarification, for both and Pagosa

one that any movie other occupied for And then well-located last the anything theaters, transactions for Okay. still for to and than there is or Has frozen the soon-to-be me. happen out vacant vacant in market starting marketplace in assets?

. know Greg, good theaters. a don't of we've lot think I transactions I don't with seen

bit. continue expecting I that's to a think heal, to we're along of But unfreeze surprising market No, the lot us, think box but will I Not rate hopefully, haven't with right. which reductions been a there office the to transactions. also

Our Michael RBC. next at Carroll from question comes

I we occur? is how to we now. asset kind that and to should we obviously, type sale the have into of about little bit typical want theaters there just of going to plans. within Greg, Or sales, on I of expect should as baked that touch beyond that portfolio a wanted you activity vacant still into guidance 'XX, you potential that those the X stuff continue the I think Should still 'XX, some know right mean, sell? could think pruning

to thing starting is think and expect portfolio aggressively more I will education you look at our what mean the there. see other harvest to that can I we from

As to -- get and our this wanting of so our us going have availability, about we vacant continue done for experiential properties. And lot Greg now we're look portfolio as it's start job of for great recycle to and thoughtful to to us a more through properties. lever redeployment education to deploy generate the team another his enhance getting capital available capital and in capital, a us we're if to continue

have And as as the vacant theaters. education Michael, well assets we X also

potentially that sales, it be kind the education smaller be transactions? up of could going to bigger Or And broken deal? Okay. then is into a

Do deeper that wants for value pool you know a somebody is what? our breaking best price again, we pay we there for If apart, If It's good and kind us along of for ours can the shareholders. a that. think it highest comes portfolio, that do invest. large to a just is driving

to highlight other I number Cartwright you the JV on the about mean Was you box it can the due and know why kind income what the office? ? then guess, lower, but explained the at of just just And Is guidance All Mark, that rent expenses? percentage challenges drove right. what is higher? I changes, income And

Yes.

to of in percentage with as expected. came respect we kind Regal rents, So

other down that of was to by non-Regal million. that's rents up a reduction expenses. $X it's With an reduction is and to it it really, percentage been we've that Cartwright. that -- as income offset able took it's Net-net, in current. is $XXX,XXX, the other respect revenue all I There expense, -- all revenue mentioned, kind offset So and in in

question next Paolone JPMorgan. at comes Our from Anthony

where like big still weather goes. year-over-year? Because ramping that about guess, of the and X pretty whether I and just looks or how to forward, next not going operating those if miss start factor. trying lost be to mean, the this like a on But then year. I've kind it since Mark, I like maybe that matters the other 'XX Cartwright related could swing you what right they're it into a net avoid we seems is looking about to FFO a this getting thread assets income bit think on should JV and And just think

great. help would any So there be

ramps harder That We're hopeful predict. Yes. Cartwright a year. to was little next

massive there. increases So expecting not we're

I think about say million with $X.X $X.X that respect to JVs the I'd JVs, St. was of related. Pete about was midpoint our prior million. for

a remove St. from the remaining future. Pete that I some a those in so bit just we go XXXX, of the 'XX. construction RV But the do versus away parks XXXX impact So properties JVs grow will the from portfolio. I to the in pretty mean in completed of modest should investments. -- X given expect sort of, hopefully,

have year construction. following full So to first it going its is really

St. it's when a particularly pretty in So moved investment have modest Pete properties. we JVs, X the that we

about. we're down of a I growth So that the it for go these to in aren't St. huge Pete, do a But talking JVs. numbers expect and have other bit then

if Is to from guess JVs, loss going a of happen? then like at major of therefore rid operate But or to of if kind just accounting them, impact. -- what's that that get take understanding Okay. not or even you're out I likely may a basis, in that like it just sounds they and it's an something you'll numbers the so

accounting yes, the the Yes. fourth shakes We've be will St. the just Yes, going Pete it the numbers. forth and of taken correct. EBITDA, is We'll see quarter will the interest from The be that in guidance. and just expectation removed out. will how the so out it EBITDA our removed. just But forward,

not any seeing side of of coverage this all Okay. be that list my Can you you might then be on watch that are your And some at the concern second so even cusp forth. giving any major you that on list cost think we and just the seeing sort I or tenants mentioned comment on is, question pressures are any or tenant smaller point? tenants

when is Not really, -- went Tony. higher XX% I mean, again, into is we like our which than still to pre-COVID. went coverage

holding it's again, up. So

everybody pressures idea cost with the easy pass I that to dealing think on. these not it's is as

kind So out decreases getting EBITDA, enough standing yet, as that feeling slight Greg disproportionately an but margin, it as seeing, of saying of that's one I'm concern area there's on in needle not it's the mentioned, moved we're where us. the or no for

it's all that probably or in the list we watch the smaller our COVID. last said, than years given X work through X we've been did ever is As

question at comes Capital KeyBanc Rana next Our Markets. from Upal

As same you pertains could disruption there with collect? the that can to timing Beach to assets, associated it you any business any so, us share there that? X And was insurance if

something issue. And cost are We for the look given to proceeds. at when this that of to see be we going there a going JV made that is economics investment good of lender long having And all we're to that that be not in capital -- now. additional The this here, structures reasons we've decision of many we that's would this a let's forward discussed the insurance will experienced we're was the of that the it the the business take prolonged put control a clear this have was level Again, and given there's that could question issue there that today. -- interruption. for

We as and have doing right and see kinds that and took -- plays for a we partners a partner. But expenses to to think those said, just we there's of we'll this issues, now laid now. of are out. remediation of think there, covered things upside here Mark our and stop conservative huge being is kind plays this any So the approach out our this how out with what anything don't sorts of there's already with

all don't to how So going -- play know Upal, out. we of that's I just don't

you plan on are? assets wellness helpful. these us little That your a do remarks. assets in Could the And color you you in on And the prepared mentioned more you. Got noncommoditized and then those what of was more Okay. future? fitness doing give

the fitness for. done, on with willing a which think where talking there's it's of we're your I this for These springs, seen for bunch whether what the experiences where what the demand I pay are is to climbing corner curated hot which mean about you've increased and there's we've a what are people gyms. premium facility machines. isn't

the of demographic or baby gym. and us of for commoditized of this And X both feel It's that, of kind much and than that's millennials, major people kind valuing health kind emphasis really that fitness we groups being area of curated those groups wellness. the approaching greater are the boomers a rather

to And with X hot I is also hotel resorts, point, the a have addition the gyms. X have we we on invested climbing springs add concept. Mirabel, would Greg's in wellness spa which And to side,

we're So wellness. at holistically looking and fitness

question JMP next comes Our Securities. from Citizens Yadav Jyoti at

Fitness Colorado in I'm the you convert that actually. hope asset, the net I loan that new said lease. was the It's -- had here to about Mitch to think curious

at is the So is for that that? is of that end the there term? an -- option Or negotiation a

certain That that, a hard that free to to No, if convert period recoverable of option. we lease would beyond a time. within it tax just we some a asset. But net converted has be there's a credits have right

that, from -- are there So guess, with to the the some that tickets expand is convert similar of options actual loan? loan book guess, where that is in bigger I to of loan with to Greg, I loan this your sort exist

a Generally, us net convert investment it mean, and get ours a that of you're flip allow switch XXX% have correct, and to feature generally, Mitch. economics to defined with just that to almost structure lease is the all mortgage I the there.

mortgages, And lease. which of lot to typically see kind that of like mortgage, a point, our in interest have a because wouldn't -- a them which increases, you it's

Yes, and them. lease they you read a read if like look

you. Got

away? exposure, obviously, And forward? go question because the -- that some does be Okay. there of your Mark, think about some still you, piggybacking that FFO, going then, on Tony's of will while I it? have JV Or that lodging seasonality, way just some Is about the that will of to

to most St. I'd Pete RV of was some seasonality parks, related seasonality the I Beach. related to there probably think the say

But I Just the the think the down St. be in Pete the because go Beach JVs. still numbers seasonality. there magnitude investment of of some was will group biggest

the of quarter because seasons. sort second with If and parks, you they're their primary Well, they're also subject about think are third to RV and outdoors.

So that in [indiscernible] of couple a impacts.

from at Our Street. comes next Allaway Spencer Green question

get I education to know you asset you're sales starting the mentioned on within prospective portfolio. constructive

ask the So on the composition or of a be in me, any depth, buyer debt just excuse I those you realize pool for sense of to early the space, the based assets? little your have history But it potential of may this. curious, do

interest we've it, it's both a Spicer, had and pretty like players. I widely of public asset from the lease therefore, in net lot always group. private within felt a think players And we've held

we've to but I I and public maybe more could as And engaging from comment, large our Greg, and had think recycling from interest start think, there. think about just private, both small. been we again, we've

It's a pool. fairly deep

Okay.

the to the be relates large assets. And Great. to then these in be assets, road the of underlying tend you located? golf they or given can to you real top where it just talk assets, as did your event assets estate that just to fungibility Okay. perhaps decide the about And value down sell these tend

Yes. is again, generally I And generally parcels. remember, these mean, major very metropolitan area. ownership are our large

of you So mean the look last Xs you have back again, I out in these sales, records X and we've are low high-quality if Fort most go of the below. of Topgolf I performing. at And sales or Topgolf got years. think, been X Myers, sold

a fairly for been generally well-located robust it's again, So market their assets.

back Greg This Silvers concludes would to it closing the like now question-and-answer for turn to remarks. session. I

to thank us Well, today. joining for talking and. everyone, We forward you, to look soon you