Latest news with #OccupancyRate
Yahoo
02-08-2025
- Business
- Yahoo
Camden Property Trust (CPT) Q2 2025 Earnings Call Highlights: Strong Demand and Strategic ...
Core Funds from Operations (FFO): $187.6 million or $1.70 per share, $0.01 ahead of prior guidance midpoint. Occupancy Rate: Averaged 95.6% in Q2 2025. Rental Rates: Effective new leases down 2.1%, renewals up 3.7%, blended rate of 0.7%. Property Revenues: In line with expectations despite peak lease-up competition. Same-Store Expense Growth: Midpoint decreased from 3% to 2.5% for the full year. Same-Store Net Operating Income: Midpoint increased from flat to positive 25 basis points for the full year. Property Taxes: Expected to increase by less than 2%, down from prior assumption of 3%. Property Insurance Expense: Expected to be slightly negative versus original budget of high single digits. Full Year Core FFO Guidance: Increased by $0.03 per share from $6.78 to $6.81. Q3 Core FFO Guidance: Expected range of $1.67 to $1.71 per share. Net Debt-to-EBITDA: 4.2x with no significant debt maturities until Q4 2026. Real Estate Transactions: Purchased Camden Clearwater for $139 million; disposed of 4 older communities for $174 million. Warning! GuruFocus has detected 6 Warning Signs with CPT. Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Camden Property Trust (NYSE:CPT) reported strong apartment demand, marking one of the best quarters in 25 years. The company experienced improved apartment affordability with 31 months of wage growth exceeding rent growth. CPT's resident retention remains strong, supported by high customer sentiment scores. The company has a robust balance sheet with no major dilutive refinancings expected in the next few years. CPT's property expense management outperformed expectations, leading to a decrease in full-year same-store expense midpoint from 3% to 2.5%. Negative Points CPT reported a slight decline in effective new lease rates, down 2.1% for the second quarter. The company faces challenges in markets like Austin due to significant supply, impacting lease-up rates. CPT's acquisition and disposition activities are expected to be more back-end loaded, potentially affecting short-term financial performance. The company anticipates a sequential decline in core FFO per share for the third quarter due to seasonal increases in utility and maintenance expenses. CPT's development starts are cautious due to market uncertainties, potentially delaying new projects. Q & A Highlights Q: Can you provide insights into the expected acceleration in the second half of the year, given that some peers are reducing expectations? A: Richard Campo, CEO, explained that the blend increased monthly from April through July, aligning with expectations. They anticipate second-half blended rates just under 1%, achieving a full-year blend of about 50 to 75 basis points. This is driven by lower bad debt, higher occupancy, and higher other income. The company is proud of its teams for managing delinquency and occupancy effectively. Q: How are the D.C. and L.A. portfolios performing, given concerns about weakening trends? A: Richard Campo, CEO, noted that D.C. had the second-highest quarter-over-quarter revenue growth at 3.7%, with L.A. performing even better. D.C. also had the highest second-quarter occupancy at 97.3% and rental rate growth of 4.1%. The strong performance is attributed to their positioning in Northern Virginia and the district, with no slowdown in guest cards observed. Q: What are your thoughts on rent growth in the coming years, considering affordability and wage growth? A: Richard Campo, CEO, compared the current situation to post-Great Recession recovery, expecting strong rent growth similar to 2010-2013. Despite oversupply, demand remains high, and with supply peaking, rent growth is projected to be better than average in 2026 and beyond, with some markets potentially seeing 6-7% growth. Q: How are you approaching development given the current economic uncertainty? A: Richard Campo, CEO, stated they are cautious due to market uncertainty but remain committed to development. They are targeting yields in the low 5s to low 6s, depending on the project. Cost structures are stabilizing, and they anticipate a significant reduction in supply starts, positioning them well for future growth. Q: What is driving the revised blended guidance for the second half of 2025? A: Richard Campo, CEO, explained that the revised guidance reflects a slight deceleration in the third quarter, with a blend just under 1%. They have good visibility into the third quarter and expect the fourth quarter to resemble the second quarter. The adjustments are based on managing occupancy and delinquency effectively, with supply absorption continuing at a rapid pace. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
01-08-2025
- Business
- Yahoo
Whitestone REIT (WSR) Q2 2025 Earnings Call Highlights: Strong Financial Performance and ...
Core FFO per Share: Increased by 5.4% year over year to $0.26 for the quarter and $0.51 for the six months. Occupancy Rate: Grew 100 basis points sequentially from Q1 to 93.9%. Average Base Rent per Lease Square Foot: Increased by 5.3% year over year. Same Store NOI Growth: 2.5% for the quarter and 3.9% for the six months. Leasing Spreads: 17.9% for the quarter, with new leases at 41.4% and renewals at 15.2%. Property Transactions: Acquisitions totaled $153 million and dispositions approximately $126 million since Q4 2022. Debt to EBITDA: Improved to 7.2 times from 7.8 times year over year. Cash and Credit Facility: $5.3 million in cash and $69 million available under the credit facility at the end of the quarter. Dividend Payout: Approximately 50% of FFO, with plans to grow in conjunction with earnings growth. Warning! GuruFocus has detected 7 Warning Signs with WSR. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Whitestone REIT (NYSE:WSR) reported a 5.4% year-over-year increase in core FFO per share, demonstrating strong financial performance. The company achieved a 100 basis point sequential increase in occupancy from Q1, reaching 93.9%. Whitestone REIT (NYSE:WSR) successfully executed two strategic acquisitions in high-growth markets, enhancing its portfolio. The company is on track to meet its 2025 full-year guidance, reaffirming its core FFO per share and same-store NOI growth targets. Whitestone REIT (NYSE:WSR) has a robust capital recycling program, with $153 million in acquisitions and $126 million in dispositions since Q4 2022, strengthening its portfolio. Negative Points Interest expenses have increased slightly due to acquisitions preceding dispositions, impacting financial performance. The anticipated benefits from new tenants like Pickler are expected to be minimal in the current year due to early concession periods. The company faces tough comparisons in the upcoming quarters, which may challenge its ability to meet forecasts. Whitestone REIT (NYSE:WSR) has a relatively high debt to EBITDA ratio, although it has improved from the previous year. The timing of acquisitions and dispositions may affect leverage and financial flexibility in the short term. Q & A Highlights Q: What gives you confidence in meeting your forecast for the back part of the year despite tough comps? A: David K. Holeman, CEO, explained that detailed forecasting and tenant activities, such as increasing occupancy by 100 basis points from Q1, contribute to future same-store NOI growth. Scott Hogan, CFO, added that large tenants under contract are in free rent periods, which will positively impact future quarters. Q: Will the Pickler contribute to the second half of the year's performance? A: David K. Holeman, CEO, stated that Pickler is expected to commence in the back half of the year, but early concession periods mean minimal impact on same-store NOI this year. However, future quarters will see significant contributions from such activities. Q: Can you provide more details on the $40 million of acquisitions and dispositions? A: David K. Holeman, CEO, mentioned that they are actively evaluating properties for value and opportunities. They have several activities underway and expect to achieve around $40 million in acquisitions and dispositions, continuing their strategy of upgrading the portfolio. Q: What is the upside potential in the two acquisitions announced in the second quarter? A: David K. Holeman, CEO, highlighted the quality of neighborhoods and locations for both acquisitions in Fort Worth and Austin. These areas have strong household incomes and traffic growth, with opportunities to improve rents and tenant mix, leveraging their model to enhance property value. Q: How are leasing spreads trending, and what are the expectations for the second half of the year? A: J. Scott Hogan, CFO, noted that new leases are coming in at higher rents, while renewal leasing spreads are slightly down but with lower tenant improvement and leasing commission costs. Overall, leasing spreads are expected to remain strong, with the second half typically being a stronger leasing season. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
26-07-2025
- Business
- Yahoo
Fibra Uno Administracion SA de CV (FBASF) Q2 2025 Earnings Call Highlights: Navigating ...
Revenue: MXN7.5 billion, a decrease of MXN99.5 million quarter-over-quarter. Occupancy Rate: Overall occupancy at 95%, with industrial at 97.4%, retail at 93.7%, office at 82.2%, and others at 99.3%. Net Operating Income (NOI): Decrease of MXN71.2 million or 1.3% quarter-over-quarter. NOI Margin: 8.2% over rental revenues and 74.3% against total revenues. Funds from Operations (FFO): Decreased by MXN40 million or 1.7% quarter-over-quarter to MXN2.344 billion. Adjusted FFO (AFFO): Same decrease as FFO, totaling MXN3.344 billion. Quarterly Distribution: MXN2.169 billion or $0.57 per CBFI, with a payout of 92.5% of AFFO. Total Debt: MXN147.4 billion, a decrease from MXN151.7 billion in the previous quarter. Total Equity: Increased by MXN4,361 million or 2.3% compared to the previous quarter. Leasing Spread: 18.4% increase in the Industrial segment, 7% in Retail, and stable in Office. Retail Price per Square Meter: Increased by 5.2%, above the annual inflation rate of 4%. Warning! GuruFocus has detected 11 Warning Signs with FBASF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Fibra Uno Administracion SA de CV (FBASF) successfully launched the IPO of Fibra Next, aiming to consolidate industrial assets and become a leading industrial estate in Mexico. The company reported double-digit growth year-over-year, showcasing resilience and strong performance across various metrics. Fibra Uno achieved significant ESG milestones, including receiving a world-first certification for one of its companies. The industrial segment showed strong leasing spreads, with a 18.4% increase in peso terms and 12.3% in dollar terms, driven by market dynamics and strategic portfolio positioning. The company maintained a high occupancy rate of 95% across its portfolio, which is considered the ideal level for operations. Negative Points Revenue decreased by MXN99.5 million quarter-over-quarter, primarily due to seasonal factors and a decline in variable revenue. There was a 40 basis point decline in occupied gross leasable area, with specific declines in the industrial and office segments. The appreciation of the peso negatively impacted rents denominated in US dollars, affecting overall revenue. Net operating income decreased by MXN71.2 million or 1.3% quarter-over-quarter, reflecting challenges in maintaining stable income levels. Interest expenses saw a decrease, but the overall financial environment remains challenging due to ongoing negotiations to control insurance costs and other expenses. Q & A Highlights Q: Can you provide more details on the timing and size of the joint venture with Fibra Next? A: Andre El-Mann Arazi, CEO: The exact timing is uncertain, but it will be a short-term process. We initially planned to do everything together in November 2023, but due to tax authority approvals, we decided to proceed step-by-step. The next step depends on CNBV approval and other formalities, which could take days, weeks, or months. Q: What are the main drivers to lower leverage and how are conversations with credit rating agencies going? A: Jorge Humberto Pigeon Solorzano, VP - Investor Relations and Capital Markets: We expect leverage metrics to improve with the joint venture with Fibra Next. Conversations with rating agencies are positive, and we have delivered on our plans, including refinancing and the IPO of Fibra Next. We aim for a stable BBB-/BAA3 credit rating. Q: How does FX appreciation impact your FFO payout and how is the retail portfolio performing? A: Jorge Humberto Pigeon Solorzano, VP - Investor Relations and Capital Markets: We monitor FX and inflation closely. Stronger FX means FX gains, impacting fiscal results. We feel comfortable with the current payout but will adjust as needed. Retail performance is strong, with increased consumption and sales growth compared to pre-pandemic levels. Q: What is driving the strong leasing spreads in the industrial segment? A: Andre El-Mann Arazi, CEO: The strong spreads are due to market dynamics and our portfolio's strategic location, particularly in logistics in metropolitan areas like Mexico City. High occupancy and limited space drive up rents, reflecting our portfolio's quality. Q: Why is occupancy down across segments, especially in the office segment? A: Jorge Vargas Cuadra, Analyst: The decline is minor and due to specific tenant exits, such as a 1,500 square meter lease expiration in Torre Diamante Insurgentes. We expect these spaces to be re-leased soon, and we are not concerned about the office market's overall health. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
24-07-2025
- Business
- Yahoo
Sonder Holdings Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
SAN FRANCISCO, July 23, 2025--(BUSINESS WIRE)--Sonder Holdings Inc. (Nasdaq: SOND) ("Sonder" or the "Company"), a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler, today announced its fourth quarter and full year 2024 financial results and filed the related Annual Report on Form 10-K, which can be found on the Company's website at Fourth Quarter 2024 Financial Highlights1 RevPAR was $180, a 19% increase year-over-year Occupancy Rate was 85%, a three percentage point increase year-over-year Bookable Nights were 897,000, an 18% decrease year-over-year, driven by the Portfolio Optimization Program (described further below) Revenue was $161 million, a 2% decrease year-over-year Net Income was $31 million, a 128% increase year-over-year, including a $(92) million change in fair value of the forward contract, related to the preferred stock transaction completed on August 13, 2024 Adjusted EBITDA2 was $(20) million, a 51% increase year-over-year Adjusted EBITDAR2 was $50 million, a 20% increase year-over-year Cash Used In Operating Activities was $39 million, a 1% increase year-over-year Adjusted Free Cash Flow2 was $(26) million, a 30% increase year-over-year Total Cash, Cash Equivalents and Restricted Cash was $72 million, which included $51 million of restricted cash as of December 31, 2024 Live Units were approximately 9,900 as of December 31, 2024 Total Portfolio was approximately 10,700 as of December 31, 2024 Full Year 2024 Financial Highlights RevPAR was $159, a 5% increase year-over-year Occupancy Rate was 81%, a one percentage point decrease year-over-year Bookable Nights were 3,911,000, a 2% decrease year-over-year, driven by the Portfolio Optimization Program (described further below) Revenue was $621 million, a 3% increase year-over-year Net Loss was $224 million, a 24% decrease year-over-year, including a $93 million lease adjustment gains, net, a $84 million loss on preferred stock issuance, and a $29 million change in fair value of the forward contract, each related to the preferred stock transaction completed on August 13, 2024 for $43 million of new convertible preferred equity Adjusted EBITDA2 was $(105) million, a 38% increase year-over-year Adjusted EBITDAR2 was $196 million, a 30% increase year-over-year Cash Used in Operating Activities was $129 million, a 17% increase year-over-year Adjusted Free Cash Flow2 was $(90) million, a 25% increase year-over-year Long-Term Strategic Licensing Agreement with Marriott International Sonder entered into a long-term strategic licensing agreement with Marriott International, Inc. (NASDAQ: MAR) ("Marriott") in August 2024 and completed the full Marriott integration in the second quarter of 2025. As of June 2025, all Sonder properties are available for booking on Marriott's digital channels and platform, including and the Marriott Bonvoy® mobile app under the new "Sonder by Marriott Bonvoy" collection. Sonder's properties also participate in the Marriott Bonvoy® travel platform. Portfolio Optimization Program In November 2023, Sonder implemented a portfolio optimization program to mitigate losses related to certain underperforming properties and to assess the Company's portfolio of rents relative to current operations and existing market rents. As of December 31, 2024, Sonder signed agreements to exit or reduce rent for approximately 110 buildings, or 4,500 units, as part of the portfolio optimization program. Of the approximately 85 buildings, or 3,300 units, with finalized exit agreements, Sonder had exited approximately 80 buildings, or 3,200 units, as of December 31, 2024. As of June 30, 2025, all 85 buildings, or 3,300 units with finalized exit agreements were exited. About Sonder Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in 41 cities, spanning nine countries, and three continents. To learn more, visit or follow Sonder on Instagram, LinkedIn or X. Download the Sonder app on Apple or Google Play. 1 $ figures represent metrics for the three months ended December 31, 2024, except where otherwise noted. % figures represent year-over-year growth for the three months ended December 31, 2024 compared to the three months ended December 31, 2023. 2 Adjusted EBITDA, Adjusted EBITDAR, and Adjusted Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures SONDER HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 20,786 $ 95,763 Restricted cash 51,268 40,734 Total cash, cash equivalents and restricted cash 72,054 136,497 Accounts receivable, net 13,918 7,999 Prepaid expenses 4,141 5,366 Other current assets 9,733 11,345 Total current assets 99,846 161,207 Property and equipment, net 5,933 22,775 Operating lease right-of-use "ROU" assets 1,013,854 1,322,135 Other non-current assets 17,544 15,150 Total assets $ 1,137,177 $ 1,521,267 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 33,724 $ 23,560 Accrued liabilities 32,621 36,040 Taxes payable 22,224 14,005 Other current liabilities 5,513 2,586 Deferred revenue 71,729 61,971 Current portion of long-term debt, net 1,000 168,710 Current operating lease liabilities 171,736 199,364 Total current liabilities 338,547 506,236 Non-current operating lease liabilities 1,009,169 1,389,580 Long-term debt, net 217,236 1,500 Other non-current liabilities 8,113 652 Total liabilities 1,573,065 1,897,968 Mezzanine equity: Series A redeemable convertible preferred stock 162,907 — Stockholders' deficit: Common stock 1 1 Additional paid-in capital 977,112 977,503 Cumulative translation adjustment 7,360 4,976 Accumulated deficit (1,583,268 ) (1,359,181 ) Total stockholders' deficit (598,795 ) (376,701 ) Total liabilities and stockholders' deficit $ 1,137,177 $ 1,521,267 SONDER HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in thousands, except share data) Three months endedDecember 31, Year endedDecember 31, 2024 2023 2024 2023 Revenue $ 161,078 $ 164,264 $ 621,272 $ 602,066 Costs and operating expenses: Cost of revenue (excluding depreciation and amortization) 89,237 102,951 377,243 392,898 Operations and support 42,660 58,487 184,343 212,913 General and administrative 40,102 19,145 123,390 112,082 Research and development 3,031 5,076 16,522 22,365 Sales and marketing 21,135 23,672 84,248 78,566 Impairment losses 13,164 58,078 13,164 59,165 Integration costs 1,066 — 1,066 — Restructuring and other charges 17 — 3,913 2,119 Total costs and operating expenses 210,412 267,409 803,889 880,108 Loss from operations (49,334 ) (103,145 ) (182,617 ) (278,042 ) Interest expense, net 9,618 7,124 34,213 25,409 Change in fair value of SPAC Warrants (94 ) 59 (87 ) (615 ) Change in fair value of Earn Out Liability (25 ) (230 ) (30 ) (2,372 ) Lease adjustment (gains), net 2,404 (1,569 ) (93,175 ) (10,145 ) Loss on preferred stock issuance — — 83,812 — Change in fair value of forward contract (91,955 ) — 28,652 — Other expense (income), net 1,947 4,520 (9,909 ) 6,282 Total non-operating (income) expense, net (78,105 ) 9,904 43,476 18,559 Income (loss) before income taxes 28,771 (113,049 ) (226,093 ) (296,601 ) Benefit for income taxes (2,632 ) (1,060 ) (2,006 ) (933 ) Net income (loss) $ 31,403 $ (111,989 ) $ (224,087 ) $ (295,668 ) Basic and diluted net income (loss) per common share $ 4.55 $ (10.20 ) $ (20.69 ) $ (27.04 ) Other comprehensive income (loss): Net income (loss) $ 31,403 $ (111,989 ) $ (224,087 ) $ (295,668 ) Change in foreign currency translation adjustment 7,017 (4,801 ) 2,384 (8,050 ) Comprehensive income (loss) $ 38,420 $ (116,790 ) $ (221,703 ) $ (303,718 ) SONDER HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the years ended December 31, 2024 2023 Cash flows from operating activities: Net loss $ (224,087 ) $ (295,668 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 16,989 22,147 Stock-based compensation 8,005 28,494 Amortization of operating lease ROU assets 171,078 194,863 Impairment losses 13,164 59,165 Lease adjustment gains, net (93,175 ) (10,145 ) Credit loss expense 9,170 1,083 (Gain) loss on foreign exchange (1,947 ) (5,691 ) Capitalization of paid-in-kind interest on long-term debt 29,383 26,934 Amortization of debt issuance costs 129 12 Amortization of debt discounts 3,345 2,557 Change in fair value of SPAC Warrants (87 ) (615 ) Change in fair value of Earn Out Liability (30 ) (2,372 ) Change in fair value of forward contracts 28,652 — Loss on preferred stock issuance 83,812 — Other operating activities 1,658 40 Changes in: Accounts receivable (15,340 ) (2,591 ) Prepaid expenses 1,161 3,657 Other current and non-current assets (2,453 ) (636 ) Accounts payable 11,558 6,810 Accrued liabilities (4,646 ) 3,839 Taxes payable 8,907 (727 ) Deferred revenue 10,227 20,068 Operating lease ROU assets and operating lease liabilities, net (186,750 ) (162,327 ) Other current and non-current liabilities 2,055 199 Net cash used in operating activities (129,222 ) (110,904 ) Cash flows from investing activities: Purchase of property and equipment (3,107 ) (10,637 ) Proceeds on the disposition of property and equipment 1,558 71 Proceeds of Key Money Investment 7,500 — Capitalization of internal-use software (222 ) (1,796 ) Net cash provided by (used in) investing activities 5,729 (12,362 ) Cash flows from financing activities: Repayment of debt and related fees (1,011 ) (35,240 ) Proceeds from issuance of debt 20,000 3,000 Payment of issuance costs (2,438 ) — Proceeds from preferred stock issuance 43,300 — Proceeds from exercise of stock options and common stock warrants — 8 Net cash provided by (used in) financing activities 59,851 (32,232 ) Effects of foreign exchange on cash (801 ) 2,809 Net change in cash, cash equivalents, and restricted cash (64,443 ) (152,689 ) Cash, cash equivalents, and restricted cash at beginning of year 136,497 289,186 Cash, cash equivalents, and restricted cash at end of year $ 72,054 $ 136,497 SONDER HOLDINGS INC. AND SUBSIDIARIES NON-GAAP FINANCIAL INFORMATION(2) Reconciliation of Non-GAAP Financial Measure: Reconciliation of Cash Used in Operating Activities to Adjusted Free Cash Flow ("FCF") Three months ended December 31, Year ended December 31, (in thousands) 2024 2023 2024 2023 Cash used in operating activities $ (38,771 ) $ (38,367 ) $ (129,222 ) $ (110,904 ) Cash provided by (used in) investing activities 7,824 74 5,729 (12,362 ) FCF, including cash received from Key Money investment and cash paid for lease terminations, restructuring, and professional fees (30,947 ) (38,293 ) (123,493 ) (123,266 ) Cash received from Key Money investment (7,500 ) — (7,500 ) — Cash paid for non-recurring professional fees 11,266 — 22,566 — Cash paid for restructuring costs 1,398 172 4,363 2,322 Cash paid for lease termination costs 164 1,343 14,499 1,343 Cash paid for integration costs 52 — 52 — Adjusted FCF $ (25,567 ) $ (36,778 ) $ (89,513 ) $ (119,601 ) Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Loss to Adjusted EBITDA Three months ended December 31, Year ended December 31, (in thousands) 2024 2023 2024 2023 Net loss $ 31,403 $ (111,989 ) $ (224,087 ) $ (295,668 ) Interest expense, net 9,618 7,124 34,213 25,409 Benefit for income taxes (2,632 ) (1,060 ) (2,006 ) (933 ) Depreciation and amortization expense 3,639 3,239 16,989 22,147 EBITDA 42,028 (102,686 ) (174,891 ) (249,045 ) Stock-based compensation 1,603 4,512 8,005 28,494 Lease adjustment (gains), net 2,404 (1,569 ) (93,175 ) (10,145 ) Impairment loss 13,164 58,078 13,164 59,165 Loss on preferred stock issuance(1) — — 83,812 — Change in fair value of forward contract (91,955 ) — 28,652 — Restructuring and other related charges 17 — 3,913 2,119 Non-recurring professional fees 11,366 — 23,971 — Integration costs 1,066 — 1,066 — Adjusted EBITDA $ (20,307 ) $ (41,665 ) $ (105,483 ) $ (169,412 ) (1) Includes $1.3 million associated with the preferred stock participation right. (2) See Non-GAAP Financial Measures section for definitions of the Company's Non-GAAP financial measures. Reconciliation of Non-GAAP Financial Measure: Reconciliation of Adjusted EBITDA to Adjusted EBITDAR Three months ended December 31, Year ended December 31, (in thousands) 2024 2023 2024 2023 Adjusted EBITDA $ (20,307 ) $ (41,665 ) $ (105,483 ) $ (169,412 ) Operating lease related rent charges 70,802 83,592 301,578 320,252 Adjusted EBITDAR $ 50,495 $ 41,927 $ 196,095 $ 150,840 Definitions Key Money Key Money ("Key Money") represents $7.5 million received on April 11, 2025 from Marriott, completing the $15.0 million investment from Marriott under the Marriott Agreement. RevPAR Revenue Per Available Room ("RevPAR") represents the average revenue earned per available night and can be calculated either by dividing revenue by Bookable Nights, or by multiplying Average Daily Rate by Occupancy Rate. Average Daily Rate represents the average revenue earned per night occupied and is calculated as Revenue divided by Occupied Nights. Occupancy Rate is calculated as Occupied Nights divided by Bookable Nights. Bookable Nights represent the total number of nights available for stays across all Live Units. This excludes nights lost to full building closures of greater than 30 nights. Occupied Nights represent the total number of nights occupied across all Live Units. Live Units & Total Portfolio Total Portfolio consists of Live Units and Contracted Units. Live Units are defined as units which are available for guests to book. Contracted Units are units for which Sonder has signed real estate contracts, but are not yet available for guests to book. Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA is defined as net income (loss) as adjusted to eliminate the impact of net interest expense, provision (benefit) for income taxes, depreciation and amortization expense, and certain other items as indicated. The exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. The Company believes Adjusted EBITDA is meaningful to investors as it is the primary operating performance measure that the Company focuses on internally to evaluate its core operating performance. Adjusted EBITDA provides a consistent basis for comparison across reporting periods by excluding interest, taxes, depreciation and amortization, and certain one-time, non-recurring or non-operational items, such as lease adjustment gains, net, restructuring and other related charges, and professional fees related to discrete projects such as fees associated with the integration in connection with the strategic licensing agreement with Marriott and restatement activities. It serves as a key measure for the Company to align its financial performance with its internal financial planning and analysis. Adjusted EBITDAR Adjusted EBITDAR is defined as Adjusted EBITDA adjusted for operating lease related rent charges. The Company believes Adjusted EBITDAR is meaningful to investors as it is an operating performance measure that further enables the Company to assess its operating performance independent of operating leases, offering insights into its cash flow and performance. Adjusted Free Cash Flow Adjusted Free Cash Flow ("Adjusted FCF") is defined as cash used in operating activities plus cash provided by (used in) investing activities, excluding the impact of the Key Money investment, lease terminations, restructuring, and non-recurring professional fee charges related to non-operational activities. The most directly comparable GAAP financial measures are cash used in operating activities when combined with cash provided by (used in) investing activities. The Company's near-term focus is to reach sustainable positive Adjusted FCF as described in its Cash Flow Positive Plan in the Annual Report on Form 10-K. The Company believes Adjusted FCF is meaningful to investors as it is the primary liquidity measure that the Company focuses on internally to evaluate its progress towards the objectives outlined in its Cash Flow Positive Plan. The Company believes that achieving its goals around this measure will put it on a path to financial sustainability and will help fund its future growth. In addition, Adjusted FCF may not provide a complete understanding of the Company's cash flow as a whole. As such, this measure should be reviewed in conjunction with the Company's GAAP cash flow. Presentation of these measures are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as "could," "estimate," "expect," "intend," "may," "plan," "potentially," or "will" or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements relating to the Company's financial performance, the numbers of units and other metrics, the portfolio optimization program and other cost optimization measures, operational and strategic initiatives, the Company's integration efforts under its long-term strategic licensing agreement with Marriott, and information concerning possible or assumed future financial or operating results and measures. These forward-looking statements are not guarantees of future performance, conditions or results. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including the risks and uncertainties described in the Company's reports filed with the Securities and Exchange Commission, and under the heading "Risk Factors" in its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at The forward-looking statements contained herein are only as of the date of this press release. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release. View source version on Contacts Media:press@ Investor:ir@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Prologis Inc (PLD) Q2 2025 Earnings Call Highlights: Strong Performance Amid Market Challenges
Core FFO: $1.46 per share including net promote income; $1.47 per share excluding net promotes. Occupancy Rate: Ended the quarter at 95.1%, outperforming the market by 290 basis points. Rent Change: Monetized $75 million of NOI with a 53% net effective rent change and 35% on cash. Same-Store Growth: Net effective growth at 4.8% and cash growth at 4.9%. Development Starts: Over $900 million in new development starts, with $1.1 billion in build-to-suit starts for the first half of the year. Data Center Investment: $300 million investment in Austin, Texas, with a top hyperscaler. Solar Production and Storage: Nearly 1.1 gigawatts either in operation or under development. Financing Activity: Closed on $5.8 billion, including a $3 billion recast of a global credit line. Liquidity: Over $7 billion at quarter end. Guidance for Core FFO: $5.75 to $5.80 per share including net promote expense; $5.80 to $5.85 per share excluding net promote expense. Warning! GuruFocus has detected 7 Warning Signs with PLD. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Prologis Inc (NYSE:PLD) exceeded expectations in the second quarter, showcasing strong performance in a challenging environment. The company achieved a significant rent change in same-store growth and maintained strong build-to-suit activity. Prologis Inc (NYSE:PLD) reported a high leasing pipeline, indicating promising customer interest and potential future growth. The company increased its development starts guidance, reflecting confidence in future demand and successful build-to-suit projects. Prologis Inc (NYSE:PLD) maintained a strong balance sheet with $7 billion in liquidity and expanded its commercial paper program, enhancing financial flexibility. Negative Points Market vacancy rates have risen slightly, and net absorption remains subdued, indicating potential challenges in the leasing environment. The company experienced net outflows in its strategic capital business, with approximately $300 million in open-ended vehicle outflows. Prologis Inc (NYSE:PLD) noted that market rents declined by approximately 1.4% during the quarter, reflecting some pricing pressure. The company anticipates choppy market conditions over the next few quarters, with uncertainty impacting customer decision-making. Bad debt levels remain elevated compared to historical norms, indicating potential credit risks among tenants. Q & A Highlights Q: Can you elaborate on the historically high leasing pipeline and its impact on development starts and acquisitions? A: Chris Caton, Managing Director, noted the pipeline is up 19% year-on-year, showing diversity across deal stages and customer industries. Larger customers are increasingly engaging, particularly in spaces over 100,000 square feet. Daniel Letter, President, added that the $1 billion increase in development starts includes $300 million for a data center and a mix of build-to-suit and speculative projects, with a strong pipeline in place. Q: Could you provide more color on the cadence of leasing activity throughout the quarter? A: Daniel Letter, President, explained that while volume was initially down 20% post-tariff surprises, it accelerated through May and June, ending the quarter only 10% below normal. Chris Caton added that they monitor a wide range of metrics, including lease signings and customer engagement, to provide a comprehensive update. Q: What drove the increase in FFO guidance, and how does it relate to occupancy and pricing expectations? A: Tim Arndt, CFO, stated that improved visibility and outperformance in the quarter led to increased confidence in guidance. Despite unchanged occupancy expectations, the environment has stabilized since April, and they anticipate landing at the stronger end of the same-store NOI growth range. Q: How are you thinking about the timing of the growing pipeline translating to signed leases, given the choppy conditions? A: Chris Caton noted that decision-making remains deliberate, with deals piling up as customers seek macro clarity. Hamid Moghadam, CEO, emphasized that while uncertainty persists, larger customers are increasingly unable to defer space needs, indicating potential future demand. Q: Can you discuss the impact of automation and higher power demands on warehouse space and how Prologis is managing this? A: Hamid Moghadam highlighted that automation and EV charging could increase power demands significantly. Daniel Letter mentioned that Prologis is proactively addressing this with new energy generation solutions, leveraging expertise from their mobility business to bridge gaps in utility capacity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
