Sohu.com (NasdaqGS:SOHU) Q4 2025 Earnings call February 09, 2026 07:30 AM ET Speaker5Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's fourth quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After management prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I'll now like to turn the conference over to ...

Financial Data and Key Metrics Changes - Net income for the 9-month period was JPY 389.7 billion, an increase of JPY 117.9 billion year-over-year, marking the highest third-quarter cumulative net profit ever [2] - Pre-tax profits reached JPY 567.7 billion, up by JPY 184.3 billion year-over-year, with all three categories of finance, operation, and investments showing profit growth [3] - Shareholder returns were enhanced with an expansion of the share buyback program from JPY 100 billion to JPY 150 billion, with JPY 128.1 billion completed by the end of January [3] Business Line Data and Key Metrics Changes - Finance segment profits increased by 8% year-over-year to JPY 145.5 billion, driven by growth in investment income and finance revenues in Australia and Asia [4] - Operation segment profit rose by 17% to JPY 189.5 billion, supported by gains from airport concessions and real estate operations [4][5] - Investment segment profits surged by 100% year-over-year to JPY 261.4 billion, significantly boosted by gains from the sale of Greenko shares and other investments [6][7] Market Data and Key Metrics Changes - The environment energy segment profit increased by JPY 109.1 billion year-over-year, reaching JPY 122.2 billion, primarily due to gains on the sale of Greenko Energy Holdings [17] - The insurance segment profit rose by 20% year-over-year to JPY 74.1 billion, driven by expansion in investment assets and portfolio securities [18] - The banking and credit segment profit decreased by JPY 2.2 billion year-over-year to JPY 19.9 billion, impacted by rising funding costs and credit losses [19] Company Strategy and Development Direction - The company aims to drive sustainable growth and improve capital efficiency while maintaining its full-year net income forecast [8] - Organizational reforms were announced to restructure into three business divisions, although the current fiscal year will continue under the existing 10-segment framework [11] - The company is focusing on capital recycling, with JPY 196.6 billion in capital gains and ongoing investments in operations and PE investments [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic economy's growth and the performance of various segments, including automotive and IT [42][43] - There is caution regarding the impact of rising interest rates and potential credit losses, with a focus on maintaining financial soundness [51][54] - The management is committed to evaluating business plans regularly to ensure alignment with capital efficiency and profitability goals [45][72] Other Important Information - The company has made significant investments in AI infrastructure and logistics facilities, indicating a strategic focus on technology and operational efficiency [10] - The impact of inbound tourism on earnings is being monitored, particularly concerning the decline in Chinese passenger numbers [24][25] - The company is actively managing its portfolio to mitigate risks associated with legacy assets and market fluctuations [21][22] Q&A Session Summary Question: Details on ORIX USA and Hilco Global integration - Management confirmed that valuation gains from ORIX Capital Partners were significant and that a 100-day plan for Hilco Global is being executed to enhance collaboration [35][36] Question: Overall progress and performance against the plan - Management highlighted strong performance in investments and operations, with expectations for continued growth despite potential challenges in the fourth quarter [41][44] Question: Clarification on U.S. valuation gains - Management indicated that the strong performance of U.S. investees, particularly in technology, contributed positively to the overall results [46][80] Question: Cost considerations for the fourth quarter - Management acknowledged potential credit costs and emphasized a cautious approach to project evaluations, particularly regarding Erawan [49][52] Question: Changes in employed capital ratio and risk appetite - Management explained that the employed capital ratio was recalibrated for more detailed risk assessment, with no direct impact on risk appetite [58][60] Question: Capital gains and base profit disclosures - Management clarified that capital gains were not incorporated in the same manner as before, focusing instead on base profit growth [66][67] Question: Future plans for profit growth and ROE targets - Management emphasized the importance of capital efficiency and the potential for continued profit growth, with a focus on high-quality investments [71][72]

ORIX (NYSE:IX) Q3 2026 Earnings call February 09, 2026 02:30 AM ET Company ParticipantsKazuki Yamamoto - Operating OfficerSachiko Nakane - Head of the Investor Relations and Sustainability Promotion DepartmentConference Call ParticipantsNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystNone - AnalystSachiko NakaneIt's time to begin. Thank you for joining us despite your busy schedule today for ORIX's earnings call for nine months ended December 31st, 2025. My ...

Financial Data and Key Metrics Changes - Net income for the 9-month period was JPY 389.7 billion, an increase of JPY 117.9 billion year-over-year, marking the highest third-quarter cumulative net profit ever [2][3] - Pre-tax profits reached JPY 567.7 billion, up by JPY 184.3 billion year-over-year, with all three categories of finance, operation, and investments showing profit growth [3][6] - Shareholder returns were enhanced with an expanded share buyback program from JPY 100 billion to JPY 150 billion, with JPY 128.1 billion completed by the end of January [3][4] Business Line Data and Key Metrics Changes - Finance segment profits increased by 8% year-over-year to JPY 145.5 billion, driven by growth in investment income and finance revenues in Australia and Asia [4][5] - Operation segment profit rose by 17% to JPY 189.5 billion, supported by gains from airport concessions and real estate operations [5][6] - Investment segment profits surged by 100% year-over-year to JPY 261.4 billion, significantly boosted by gains from the sale of Greenko shares and other investments [5][6] Market Data and Key Metrics Changes - The environment energy segment profit increased by JPY 109.1 billion year-over-year, reaching JPY 122.2 billion, primarily due to gains on the sale of Greenko Energy Holdings [16][17] - The ORIX USA segment showed a profit of JPY 14 billion for the 9-month period, reflecting a positive recovery despite previous credit losses [20][21] - The Asia and Australia segment profit increased by JPY 11.4 billion, a 41% rise year-over-year, driven by financial income from local operations [23] Company Strategy and Development Direction - The company aims to drive sustainable growth and improve capital efficiency while maintaining its full-year net income forecast [7][8] - Organizational reforms were announced to restructure into three business divisions, although the current fiscal year will continue under the existing 10-segment framework [10] - The company is focusing on capital recycling, with JPY 196.6 billion in capital gains and ongoing investments in operations and asset valuation businesses [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of declining Chinese passenger numbers on earnings, particularly in the tourism sector [24][25] - The company anticipates a mixed outlook for the next fiscal year, with potential downside risks due to economic uncertainties and rising interest rates [39][43] - There is a focus on maintaining financial soundness while enhancing future profitability, especially in light of rising funding costs [18][31] Other Important Information - Total assets increased by JPY 1.2594 trillion compared to the end of last year, with significant contributions from the consolidation of Hilco Global [29][30] - The company reported a reduction in insurance contract liabilities by JPY 234.2 billion, attributed to a higher discount rate used for measurement [30][51] - The employed capital ratio was adjusted to reflect more detailed risk management, resulting in a decrease from 92% to 89% [49][50] Q&A Session Summary Question: Details on ORIX USA and Hilco Global integration - Management confirmed that valuation profit within the portfolio showed significant growth, and they are executing a 100-day plan for Hilco Global integration [32][34] Question: Progress against the business plan - Management noted strong progress in investments and operational performance, particularly in the divestiture of non-core businesses [37][38] Question: Credit costs and potential losses - Management acknowledged the potential for credit costs and losses but emphasized ongoing monitoring and proactive measures to address risks [41][42] Question: Changes in employed capital ratio and future investments - The employed capital ratio was recalibrated for more precise risk assessment, allowing for flexible investments while maintaining a conservative approach [49][50] Question: Outlook for next fiscal year - Management indicated that while the current fiscal year is performing well, they remain cautious about the next fiscal year due to economic uncertainties [56][58]

Financial Data and Key Metrics Changes - The company reported a Nareit FFO per share growth of 7.2% and core FFO per share growth of 7% for 2025, with same-center NOI growth of 3.8% [5][18] - For 2026, guidance indicates mid-single digit growth rates for Nareit FFO and core FFO per share [5][20] Business Line Data and Key Metrics Changes - The company executed 1,026 leases totaling approximately 6 million square feet in 2025, with portfolio occupancy ending the year at 97.3% leased [12][18] - Comparable renewal rent spreads were reported at 20% in Q4, while comparable new leasing rent spreads were at 34.3% [13][18] Market Data and Key Metrics Changes - The company noted strong demand for necessity-based retail, with no signs of slowing, and high retention rates of 93% [11][12] - The company anticipates bad debt in 2026 to be in line with 2025, which was approximately 78 basis points of revenue [14][56] Company Strategy and Development Direction - The core business focuses on grocery-anchored shopping centers, with a disciplined acquisition strategy targeting an unlevered IRR of 9% for grocery-anchored acquisitions and above 10% for everyday retail centers [8][10] - The company plans to continue its development and redevelopment projects, with 20 projects under active construction and an estimated total investment of approximately $70 million [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the strength of their portfolio, despite market concerns regarding consumer health and tariffs [5][18] - The company believes it can consistently deliver 3%-4% same-center NOI growth and achieve mid to high single-digit core FFO per share growth on a long-term basis [22] Other Important Information - The company has approximately $925 million of liquidity to support acquisition plans and aims to sell between $100 million and $200 million in assets in 2026 [20][21] - The company is focused on maintaining a high-quality portfolio while improving its long-term growth profile through strategic dispositions [21][70] Q&A Session Summary Question: Acquisition strategy and competition for grocery-anchored assets - Management acknowledged increased competition but noted a high level of confidence in reaching acquisition targets due to a balanced market [25][26] Question: Update on the Ocala development parcel - Management highlighted the growth in the Ocala market and expected unlevered returns above 9.5%-10% on the project [28][29] Question: Portfolio occupancy and leverage in renewal negotiations - Management indicated that high occupancy levels provide leverage in negotiations, with expectations for continued growth in inline stores [33][35] Question: Everyday retail acquisition strategy - Management sees everyday retail as a unique opportunity but emphasizes a disciplined approach to ensure high returns [39][40] Question: Capital deployment alternatives - Management discussed the potential for ground-up development and share buybacks, noting that acquisitions remain a priority [44][46] Question: Impact of Amazon's store closures on grocery demand - Management expressed that Amazon's struggles in brick-and-mortar retail do not significantly impact their grocery demand [49][50] Question: Bad debt expectations for 2026 - Management confirmed that bad debt levels are expected to remain consistent with 2025, with no significant concerns [56][57] Question: Credit rating and cost of debt - Management believes they are an underrated credit and is focused on increasing scale to improve their credit rating [60][61] Question: Disposition strategy and cap rates - Management outlined a strategy of trading out stabilized assets for higher return opportunities, with expectations for cap rates in the 5.5% to sub-5 range [68][70]

Financial Data and Key Metrics Changes - The company reported Nareit FFO per share growth of 7.2% and Core FFO per share growth of 7% for 2025, with same-center NOI growth of 3.8% [5][18] - For 2026, guidance indicates mid-single digit growth rates for Nareit FFO and Core FFO per share [5][20] Business Line Data and Key Metrics Changes - The company executed 1,026 leases totaling approximately 6 million square feet in 2025, with portfolio occupancy ending the year at 97.3% leased [12][13] - Comparable renewal rent spreads were reported at 20% in Q4, while new leasing rent spreads were strong at 34.3% [13] Market Data and Key Metrics Changes - The company noted strong demand for necessity-based retail, with no signs of slowing, and high retention rates of 93% [11][12] - The company anticipates bad debt in 2026 to be in line with 2025, which was approximately 78 basis points of revenue [14][56] Company Strategy and Development Direction - The core business focuses on grocery-anchored shopping centers, with a disciplined acquisition strategy targeting an unlevered IRR of 9% for grocery-anchored acquisitions and above 10% for everyday retail centers [8][10] - The company plans to continue its development and redevelopment projects, with 20 projects under active construction and an estimated total investment of approximately $70 million [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the strength of their portfolio, despite market concerns about consumer health and tariffs [5][9] - The company believes it can consistently deliver 3%-4% same-center NOI growth and achieve mid to high single-digit core FFO per share growth on a long-term basis [22] Other Important Information - The company has approximately $925 million of liquidity to support acquisition plans and aims to sell between $100 million and $200 million in assets in 2026 [18][20] - The company sold approximately $145 million of assets in 2025 at PECO share [20] Q&A Session Summary Question: Expectations for acquisition volume and competition for grocery-anchored assets - Management acknowledged increased competition but noted a high level of confidence in reaching acquisition targets due to a balanced market [25][26] Question: Update on the Ocala development parcel and timing - Management expressed excitement about the Ocala market, with expectations for unlevered returns above 9.5%-10% on the project [28][29] Question: Occupancy levels and leverage in renewal negotiations - Management indicated that high occupancy levels provide leverage in negotiations, with expectations for continued growth in inline stores [32][35] Question: Capital deployment and stock buybacks - Management stated that while they consider share buybacks, they believe better returns can be achieved through acquisitions and redevelopment [45][46] Question: Impact of Amazon's store closures on grocery demand - Management noted that Amazon's struggles with brick-and-mortar retail do not significantly impact their grocery demand, as traditional grocers maintain strong market positions [49][50] Question: Bad debt expectations and visibility - Management confirmed that bad debt levels are consistent with previous expectations, with no significant concerns moving into 2026 [56][57] Question: Credit rating and cost of debt - Management believes they are an underrated credit and that scale will help improve their credit rating, which could lower their cost of debt [60][61] Question: Disposition strategy and cap rates - Management outlined a strategy focused on trading out stabilized assets for higher return opportunities, with expectations for cap rates in the 5.5% to sub-5 range [68][70]

Financial Data and Key Metrics Changes - FFO per share for 2025 was $2.72, a 5.8% increase from 2024 and 6 cents above initial guidance, marking the seventh consecutive year of growth [3][22] - Same-property cash NOI increased by 4.1% year-over-year, driven by a 40 basis point increase in average occupancy [3][22] - Same property occupancy ended the year at 94.2%, aligning with updated guidance and showing a 20 basis point increase from initial guidance [23] Business Line Data and Key Metrics Changes - Executed 557,000 sq ft of vacancy leasing, exceeding initial targets by 40% [12] - In the defense IT portfolio, executed 424,000 sq ft of vacancy leasing, surpassing the initial goal of 400,000 sq ft [13] - Renewal leasing totaled 2 million sq ft for the year with a tenant retention rate of 78% [15] Market Data and Key Metrics Changes - The defense budget for FY 2026 is $841 billion, an $8 billion increase over the initial request, with a total expected budget exceeding $950 billion [8][9] - The company anticipates strong demand in the defense sector, particularly in intelligence, surveillance, and reconnaissance, as well as cybersecurity and missile defense [10] Company Strategy and Development Direction - The company committed $278 million to new investments in five projects across four markets, with 81% pre-leased [3][4] - A strong pipeline of development opportunities is expected to generate an incremental $52 million of cash NOI on a stabilized annual basis [6] - The company aims to maintain a conservative approach to capital expenditures, with a forecasted AFFO payout ratio under 65% in 2026 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, projecting a midpoint FFO per share guidance of $2.75 for 2026, reflecting a 1.1% increase over 2025 [7][24] - The company expects to benefit from the increasing defense budget and ongoing demand for secure facilities [9][10] - Management noted that the impact of the new defense appropriations will likely be felt 12 to 18 months after funding is allocated [69] Other Important Information - The company has a strong liquidity position and plans to self-fund the equity component of its capital investments [30] - The development pipeline includes nearly $450 million in active projects, with 86% pre-leased [18] Q&A Session Summary Question: Development pipeline opportunities related to Golden Dome - Management indicated that many prospects are related to Golden Dome and expect larger requirements as contracts are awarded [34][36] Question: Tenant retention and reasons for non-renewals - Non-renewals are typically smaller tenants needing different space sizes, with a historical retention rate of 80% [37] Question: Mix of acquisitions and developments for additional investments - The company targets an 8.5% cash-on-cash yield for developments and considers acquisitions opportunistic [40][41] Question: Equity issuance as a funding source - Equity issuance is a last resort, with the company confident in handling expected development investments through internal cash generation [42][43] Question: Outlook for Huntsville's growth - The company has significant development runway in Huntsville, with 3 million sq ft of potential development capacity [64][65] Question: Impact of the defense budget on leasing opportunities - Demand impact from the defense budget is expected to materialize 12 to 18 months after appropriation [69][70]

Financial Data and Key Metrics Changes - FFO per share for 2025 was $2.72, exceeding initial guidance by $0.06 and representing a 5.8% increase over 2024 [3][24] - Same Property Cash NOI increased by 4.1% year-over-year, driven by a 40 basis point increase in average occupancy [3][24] - Same Property occupancy ended the year at 94.2%, aligning with updated guidance [25] Business Line Data and Key Metrics Changes - Executed 557,000 sq ft of vacancy leasing, exceeding initial targets by 40% [12][14] - In the defense IT portfolio, 424,000 sq ft of leasing was executed, surpassing the 400,000 sq ft goal [14] - Tenant retention for the year was 78%, with cash rent spreads up 1.1% [16] Market Data and Key Metrics Changes - The defense budget for FY 2026 was signed at $841 billion, marking a 15% year-over-year increase [7][8] - The company expects continued growth in demand from government and contractors due to the increasing defense budget [9] Company Strategy and Development Direction - The company committed $278 million to new investments, with projects 81% pre-leased [3][4] - A strong pipeline of development opportunities is anticipated, particularly in the Huntsville area, with significant growth expected from the Golden Dome Initiative [9][19] - The company aims for a vacancy leasing target of 400,000 sq ft for 2026, despite limited unleased space [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, projecting FFO per share guidance for 2026 at $2.75, reflecting a 1.1% increase over 2025 [6][27] - The company anticipates strong tenant retention and a solid development pipeline, with a focus on maintaining liquidity and self-funding investments [33][34] Other Important Information - The company reported a conservative approach to capital expenditures, with an AFFO payout ratio forecasted to be under 65% in 2026 [28] - The company has a long runway for development in Huntsville, with 3 million sq ft of potential development capacity remaining [67] Q&A Session Summary Question: Development pipeline opportunities related to Golden Dome - Management indicated that many prospects are related to Golden Dome, with expectations for larger requirements as contracts are awarded [38][39] Question: Tenant retention and reasons for non-renewals - Non-renewals are typically smaller tenants needing different space sizes, with a historical retention rate of 80% [40] Question: Mix of acquisitions and developments for additional investments - The company targets an 8.5% cash-on-cash yield for developments, with acquisitions considered opportunistic [44] Question: Equity issuance as a funding source - Equity issuance is a last alternative, with the company confident in handling expected development investments through internal cash generation [46] Question: Growth potential in Huntsville - The company has significant development runway in Huntsville, with ample land available for expansion [67] Question: Impact of the defense budget on leasing opportunities - Demand impact from the defense budget is expected to materialize 12-18 months after appropriations [72]

Financial Data and Key Metrics Changes - FFO per share for 2025 was $2.72, exceeding initial guidance by 6 cents and representing a 5.8% increase over 2024 [3][23] - Same-property cash NOI increased by 4.1% year-over-year, driven by a 40 basis point increase in average occupancy [3][23] - Same property occupancy ended the year at 94.2%, aligning with updated guidance [24] Business Line Data and Key Metrics Changes - Executed 557,000 sq ft of vacancy leasing, exceeding initial targets by 40% [11][12] - In the defense IT portfolio, 424,000 sq ft of vacancy leasing was executed, surpassing the 400,000 sq ft goal [12] - Tenant retention for the year was 78%, with cash rent spreads up 1.1% [15] Market Data and Key Metrics Changes - The defense budget for FY 2026 was set at $841 billion, a 15% year-over-year increase, indicating strong future demand for defense-related properties [7][8] - The company expects continued growth in demand from government and contractors in the Huntsville area due to significant military initiatives [9][66] Company Strategy and Development Direction - The company committed $278 million to new investments in five projects across four markets, with 81% pre-leased [3][4] - A strong pipeline of development opportunities is anticipated, with a focus on high-security facilities for defense contractors [19][21] - The company aims for a vacancy leasing target of 400,000 sq ft for 2026, reflecting an aggressive growth strategy [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued increase of the defense budget and its positive impact on the company's growth [8][9] - The company anticipates a solid performance in 2026, with FFO per share guidance set at $2.71-$2.79, implying 1.1% growth at the midpoint [25][26] - Management highlighted the importance of maintaining a conservative approach to capital expenditures and financing [27] Other Important Information - The company has a strong liquidity position and expects to self-fund the equity component of its capital investments [30] - The development pipeline currently stands at nearly $450 million, with 86% pre-leased [18] Q&A Session Summary Question: Development pipeline opportunities related to Golden Dome - Management indicated that many prospects are tied to Golden Dome, with expectations for increased velocity in contract processing [34][35] Question: Tenant retention and reasons for non-renewals - Non-renewals are primarily from smaller tenants needing different space sizes, with a historical retention rate of 80% [36][37] Question: Mix of acquisitions and developments for additional investments - The company targets an 8.5% cash-on-cash yield for developments, with acquisitions considered opportunistic [40][41] Question: Equity issuance as a funding source - Equity issuance is a last resort, with the company confident in handling development investments through internal cash generation [42][43] Question: Future development plans beyond 2026 - Management confirmed ongoing evaluations for additional development opportunities, with significant spending expected in 2027 and 2028 [51][52] Question: Demand driven by existing versus new tenants - Demand is roughly 50/50 between existing and new tenants, with some migration from other regions [58] Question: Outlook on Huntsville's growth potential - The company has significant development runway in Huntsville, with ample land available for future expansion [66]

Financial Data and Key Metrics Changes - The company reported Nareit FFO per share growth of 7.2% and core FFO per share growth of 7% for 2025, with same-center NOI growth of 3.8% [3][11] - For 2026, guidance indicates mid-single digit growth rates for Nareit FFO and core FFO per share [3][12] - Fourth quarter Nareit FFO increased to $88.8 million or $0.64 per diluted share, while Core FFO increased to $91.1 million or $0.66 per diluted share [11] Business Line Data and Key Metrics Changes - The core business remains focused on grocery-anchored shopping centers, with a strong operating platform driving rent and NOI growth [5] - The company executed 1,026 leases totaling approximately 6 million square feet in 2025, with portfolio occupancy ending the year at 97.3% leased [7][9] - Comparable renewal rent spreads were 20% in Q4, and new leasing rent spreads were strong at 34.3% [8] Market Data and Key Metrics Changes - The company noted high demand for necessity-based retail with no signs of slowing, contributing to strong leasing activity [6] - The portfolio retention rate remained high at 93% at year-end, indicating strong tenant stability [8] - The company expects bad debt in 2026 to be in line with 2025, which was approximately 78 basis points of revenue [9] Company Strategy and Development Direction - The company aims to deliver gross acquisitions guidance of $400-$500 million in 2026, focusing on grocery-anchored opportunities and under-managed retail centers [4][10] - The company is committed to maintaining a disciplined acquisition strategy with targeted unlevered IRR of 9% for grocery-anchored acquisitions and above 10% for everyday retail centers [4][10] - Development and redevelopment projects are a key growth driver, with 20 projects under active construction and an estimated investment of $70 million [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer and the strength of the grocery-anchored portfolio despite market uncertainties [3][12] - The company anticipates continued solid earnings growth, projecting net income guidance for 2026 in the range of $0.74-$0.77 per share [12][14] - Management believes that the company can consistently deliver 3%-4% same-center NOI growth and achieve mid to high single-digit core FFO per share growth on a long-term basis [14] Other Important Information - The company has approximately $925 million of liquidity to support acquisition plans as of December 31, 2025 [11] - The company sold approximately $145 million of assets in 2025 and plans to sell between $100 and $200 million in 2026 [13] - The company is focused on maintaining a high-quality portfolio while improving long-term growth profiles through strategic dispositions [14] Q&A Session Summary Question: Expectations for acquisition volume and competition for grocery-anchored assets - Management noted increased competition but also a high level of product on the market, maintaining confidence in reaching acquisition targets [16][17] Question: Update on the Ocala development parcel and other strategic land acquisitions - Management highlighted the growth in the Ocala market and the potential for strong returns on the project, with ongoing discussions for larger grocery-scale developments [20][21] Question: Insights on portfolio occupancy and leverage in renewal negotiations - Management indicated that high occupancy levels provide leverage in negotiations, with expectations for continued demand and potential for further increases in inline occupancy [24][25] Question: Capital deployment strategies beyond acquisitions - Management discussed the potential for ground-up development and share buybacks, emphasizing a focus on acquisitions and dispositions to manage capital effectively [35][38] Question: Impact of Amazon's store closures on grocery demand - Management acknowledged Amazon's challenges in brick-and-mortar retail but emphasized the strength of traditional grocers in the market [40][41] Question: Discussion on bad debt and expectations for 2026 - Management confirmed that bad debt levels are consistent with previous expectations, with no significant concerns noted [47][49] Question: Credit rating and cost of debt considerations - Management believes they are an underrated credit and is focused on increasing scale to improve credit ratings and reduce borrowing costs [52][54] Question: Insights on disposition strategy and market conditions - Management outlined a strategy focused on trading out stabilized assets for higher-return opportunities, with expectations for continued strong pricing in the disposition market [63][64]