0001045450-26-000024
SEC filingRevenue grew 3.6% on acquisitions and developments, but net income fell 4.9% due to higher interest expense and depreciation, partly offset by increased interest income.
Revenue for the first quarter of 2026 increased 3.6% to $181.3 million compared to $175.0 million in the prior year period. This growth was primarily attributable to acquisitions and developments completed in 2025 and 2026, which expanded the company's experiential property portfolio.
Operating income decreased slightly to $100.6 million from $101.6 million, as the revenue growth was offset by higher depreciation and amortization expense resulting from the same acquisitions and developments. Net income fell 4.9% to $62.6 million, driven by an increase in interest expense, net, which resulted from a decrease in capitalized interest and an increase in average borrowings. This was partially offset by an increase in interest income recognized on short-term investments. Diluted earnings per share decreased to $0.74 from $0.78.
Management continues to monitor tariff increases and supply chain disruptions, which could impact the business by increasing construction material costs and leading to higher development and renovation expenses. The company expects to continue issuing debt securities in public or private offerings to fund its growth and manage liquidity. Short-term liquidity requirements consist primarily of normal recurring corporate operating expenses, debt service requirements, and distributions to shareholders.