- Completed the acquisition, long on the top of the company's list, with a focus on leisure demand and group rotation opportunities.
- Expected to be accretive to FY 2026 results, with an estimated contribution of $18-$22 million in adjusted EBITDAre for 2025.
- Renovations and capital enhancements underway, including meeting space upgrades and potential resort expansion to accommodate large groups over 1,000 rooms.
- Market dynamics in Phoenix support future resort expansion, with the only larger hotel being a 1,000-room Sheraton in downtown Phoenix.
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- Plymouth commenced over 1.4 million square feet of leasing in Q2, bringing the year-to-date total to nearly 6 million square feet.
- Leasing activity is broad-based, with particular strength among life manufacturing users seeking long-term commitments.
- Management highlighted ongoing lease renewals and expansions, with a focus on large spaces and tenant retention, supporting occupancy near 96.5% by year-end.
- Whitestone has sold 12 properties and purchased 6 properties since Q4 2022, totaling $153 million in acquisitions and $126 million in dispositions.
- The company plans to continue capital recycling with an estimated $40 million of acquisitions and dispositions each through the end of 2025.
- The portfolio review aims to upgrade properties to higher growth potential and support long-term cash flow durability, with a focus on neighborhoods with strong demographic and infrastructure growth.
- A $50 million share repurchase program was approved, with 3.6 million shares bought at an average of $4.30 per share.
- Repurchases are opportunistic, funded partly by proceeds from asset sales and aimed at reducing share count by about 3%.
- The buybacks are accretive, with an implied dividend yield of 7.4%, above the company's borrowing costs.
- Asset sales of non-core hotels are expected to generate proceeds that exceed buyback funding, aiding deleveraging.
- The company emphasizes balancing capital return with investment in the portfolio and maintaining liquidity.
- RMR has focused on deleveraging through asset sales and refinancings.
- Share prices of DHC and ILPT increased substantially year-to-date.
- Share price improvements led to potential incentive fees exceeding $17 million for RMR.
- Active asset management and sector fundamentals contributed to strong performance.
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