- Sale of Hyatt Centric Fisherman's Wharf for $80 million at 64x 2024 EBITDA, demonstrating strong real estate value support.
- Active engagement in discussions for additional noncore asset sales aiming for $300-$400 million in total dispositions by year-end.
- Decision to close the Embassy Suites Kansas City, DoubleTree Seattle Airport, and DoubleTree Sonoma to improve portfolio quality, increasing core portfolio RevPAR by over $5 and margins by nearly 70 basis points.
- Focus on reducing noncore hotels from 18 to approximately 3 by end of 2024, enhancing long-term growth and portfolio quality.
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- Reduced clinical health care exposure to 2.4% of ABR.
- Exited noncore asset classes at solid valuation levels.
- Focused on industrial, retail, and build-to-suit investments to maximize shareholder value.
- No plans to sell remaining clinical or office assets hastily, aiming for disciplined value maximization.
- Company highlights a substantial improvement in cost of capital, supported by strong equity valuation appreciation.
- This improvement enables a shift from a measured to a more aggressive growth posture, with increased pipeline and larger deal potential.
- Over $100 million committed to experiential development and redevelopment projects, with plans to accelerate future investment spending.
- Exited a $51 million office life sciences loan in Q2, incurring a $33 million realized loss, which was above the prior quarter's CECL reserve.
- The exit was driven by declining tenant demand due to reduced federal funding for life sciences, creating a supply-demand imbalance.
- Removal of this loan reduced future funding commitments by 50%, from $73 million to $36.5 million, enhancing portfolio stability.
- Significant reduction in risk-rated 5 loans from 7 to 2, with Louisville student housing loan resolved at over $3 million above carrying value.
- Resolution of two nonaccrual loans totaling $132 million, including a $21 million write-off for a Phoenix office property and a $15 million write-off for a Minneapolis hotel.
- Remaining 2 risk-rated 5 loans with a total UPB of $173 million, with ongoing resolution efforts for office and hotel assets.
- Sale of Phoenix office REO property at $16.7 million, generating a small gain, with two REO properties remaining.
- Active leasing and redevelopment efforts at Miami Beach office property, with positive leasing trends and ongoing negotiations.
Dafinchi