Reading International, Inc. Q4 2025 Earnings Call - Asset Sales Cut Debt, Box Office Weakness Weighs on Q4 but 2026 Momentum Building

Gilbert Avanes, Chief Financial Officer and Treasurer, Reading International, Inc.: Thanks for joining the 2025 fourth quarter and the full year earnings call for Reading International, Inc. My name is Gilbert Avanes. I’m the company’s Chief Financial Officer and Treasurer. Joining me today is Ellen Cotter, President and CEO. Today, we’re going to modify the order of our call. After I run through normal caveats, I’ll start first by presenting the results from our 2025 fourth quarter and full year. I will also talk about our balance sheet, liquidity, and provide a summary of our debt position. Then I’ll turn the call over to Ellen, who will discuss our business strategy. After that, we’ll address some specific questions that came in from our stockholders, understanding that we have tried to weave answers to many stockholders’ question into our prepared remark. Let me start with running through the usual caveats.

Some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking. Such statements are based on our current expectations and assumptions that are subject to a number of risks and uncertainties. We undertake no obligation to update any forward-looking statements. Actual results could differ materially. Please refer to our Forms 10-K and 10-Q, including the risk factors. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP and GAAP measures is included in our earnings release issued March 31, 2026, which is distributed and available to the public through our website located at investors.readingrdi.com. With that behind us, I will go over the results from Q4 2025 and the full year 2025. Before I do that, I want to point out a few important transactions completed in 2025.

In Q1 2025, we completed the sale of our property assets in Wellington, New Zealand for NZD 38 million or $21.5 million. In May 2025, we completed the sale of our Cannon Park asset in Townsville, Australia for AUD 32 million or $20.7 million. On December 19, 2025, we completed the purchase of Sutton Hill Associates, a California general partnership, which owned a 25% interest in Sutton Hill Properties, LLC, the owner of the Cinemas 1, 2, 3. As part of this deal, we assumed certain indebtedness owed by Sutton Hill Associates to a third party. That indebtedness at December 31, 2025, had a face amount of $13.6 million, with interest payable quarterly at 4.7% per annum, with all principal due and payable in bullet payment on September 30, 2035.

Now I’ll turn to the fourth quarter results, which overall were somewhat disappointing compared to the prior period. Q4 2025 consolidated revenue decreased by $8.3 million to $50.3 million quarter-over-quarter. A few factors drove this decline. The film slate for the quarter in the U.S., Australia and New Zealand could not match the strength of the film lineup in Q4 2024. We closed two unprofitable theaters, one in U.S. and one in New Zealand. A decrease in our Australia and New Zealand real estate rent revenue due to the sale of our Cannon Park and Wellington, New Zealand assets. At $203 million, our consolidated revenue decreased by 4% year-over-year. The same factors drove this decrease. Lingering impact from industry-wide movie release schedule changes.

The closure of two unprofitable theaters, one in U.S. and one in New Zealand. The elimination of our property revenue generated from our Wellington and Cannon Park properties. In addition, the continued weakening of our Australian New Zealand foreign exchange rate against the US dollar negatively impacted our consolidated revenue. With respect to our net loss position for the quarter, our net loss attributable to Reading International, Inc. increased by $0.3 million to a loss of $2.6 million quarter-over-quarter. Our basic loss per share for Q4 2025 increased by $0.01 to a loss per share of $0.11, compared to a basic loss per share of $0.10 for Q4 2024. Again, these results were primarily due to weaker cinema performance and a $2.2 million decrease in other income compared to the same period in 2024.

This was offset by a $0.6 million reduction in interest expense and a gain on sale of $2.7 million due to the acquisition of non-controlling interest related to Sutton Hill Associates transaction. Our net loss attributable to Reading International, Inc. for the full year improved by $21.2 million from a loss of $35.3 million to a loss of $14.1 million year-over-year. Our basic loss per share improved by $0.96 to a loss of $0.62, compared to a loss of $1.58 for the full year 2024. These improved results were primarily due to stronger income results from our segments, a $3.2 million reduction in interest expense, a $2.7 million gain on acquisition of non-controlling interest of Sutton Hill Properties, LLC.

A $8.4 million gain on sale of assets from the sale of our Cannon Park and Wellington properties in 2025, compared to a loss of $1.3 million on the sale of our Culver City office in 2024, and a $0.9 million reduction in G&A expenses, partially offset by $3.7 million increase in other expenses. Our total company depreciation, amortization, impairment, and G&A expenses for Q4 2025 decreased by $0.9 million to $7.3 million, compared to $8.2 million for Q4 2024.

For the year ended December 31, 2025, total company depreciation, amortization, impairment, and G&A expenses decreased by $3.4 million to $32.5 million compared to the same period in the prior year, primarily driven by cinema closures in the U.S. and New Zealand, the sale of our Wellington and Cannon Park properties, and delays in CapEx spending. Income tax expense for the year ended December 31, 2025 increased by $0.4 million to income tax expense of $0.9 million, compared to an income tax expense of $0.5 million for the equivalent prior year period. The change between 2025 and 2024 is primarily due to increase in income tax expense from Australia in 2025. Our Q4 2025 global operating loss was $1 million, compared to an operating income of $1.1 million in Q4 2024.

At $5.1 million, our Q4 2025 adjusted EBITDA decreased by $1.7 million or 25% compared to the same time period last year. On a full-year basis, our 2025 global operating loss of $5.3 million improved by $8.7 million or 62% from an operating loss of $14 million in Q4 2024. At $17.8 million, our adjusted EBITDA increased by $15.7 million or 744% compared to the same time period last year. These annual improvements were due to $9.7 million increase in gain from our asset sales, $2.7 million gain on acquisition of non-controlling interest, and improved operating results primarily through the efficient management of operating expenses and reducing general and administrative expenses. Shifting to cash flow.

For the full year 2025, net cash used in operating activities decreased by $2.2 million to $1.6 million compared to cash used in the same period of prior year of $3.8 million. This was primarily driven by a decrease in net operating loss of $11.5 million, partially offset by a $9.3 million decrease in net operating assets, primarily due to increase in receivables and a small increase in accounts payable and accrued expenses, plus deferred revenues and other liabilities. Cash provided by investing activities during the twelve months ended December 31, 2025 increased by $33.1 million to cash provided of $37.1 million from a cash provided of $4 million in the same period of prior year.

This was primarily due to higher proceeds from sale of our Cannon Park property assets in May 2025 and the Wellington property assets in January 2025 compared to proceeds from the sale of our Culver City office in February 2024, and a reduction in capital expenditures in 2025 compared to 2024. Cash used in financing activities for 12 months ended December 31, 2025 increased by $38.2 million from cash provided of $0.3 million to a cash used of $37.9 million. This was primarily due to the pay downs of our debt in New Zealand with Westpac, debt in the U.S. with Bank of America, and in Australia with NAB in 2025. Turning now to our financial position.

As of December 31, 2025, our total assets were $434.9 million, compared to $471 million on December 31, 2024. This decrease was driven by a $1.8 million decrease in cash and cash equivalent from which we funded our ongoing business operations, a $31.9 million decrease in land and property held for sale due to the sale of our Cannon Park and Wellington assets. As of December 31, 2025, our total outstanding borrowings were $185.1 million compared to $202.7 million on December 31, 2024. The net sale proceeds from the sale of Cannon Park and Wellington property funded this debt reduction.

It was offset by the addition of $13.6 million in debt added in connection with the Sutton Hill deal that we took over after acquiring the 25% of minority interest in Cinemas 1, 2, 3 that we did not already own. Our cash and cash equivalents as of December 31, 2025, were $10.5 million. Further, to address the liquidity pressure on our business, we continued to work with our lenders to amend certain debt facilities, and we continue to have our Newberry Yard, Williamsport, Pennsylvania, property classified as held for sale. Through 2025 and into early 2026, we have worked with our key lenders to extend maturity dates, modify principal repayment dates, and adjust existing covenants.

With respect to our 44 Union Square loan, in May 2025, we extended the maturity to November 6, 2026, with an option to extend further to May 6, 2027. In February 6, 2026, we deferred a principal payment, which we have since paid in March 2026. With respect to our Bank of America, Bank of Hawaii loan, in July 2025, we extended the maturity to May 18, 2026. On December 29, 2025, we further extended the maturity to September 18, 2026. On February 27, 2026, we further modified the loan payment schedule. In July 2025, we extended the maturity of our loan on our live theater assets in New York to June 1, 2026. We’re currently working on a refinancing option.

On November 13, 2025, we extended the maturity of our Valley National Bank loan to October 1, 2026. With respect to our NAB loan on November 12, 2025, we extended the maturity to July 31, 2030, and modified the principal repayment schedule. Just recently, we amended the loan to reduce our minimum liquidity covenant for a limited period of time. With respect to our debt position, as I just mentioned, as part of our Sutton Hill deal on December 31, 2025, we added debt in a face amount of $13.6 million, interest payable quarterly at 4.75% per annum, with all principals due and payable in a bullet payment on September 30, 2035. Our 2025 strategic asset sales have led to a significant debt reduction.

From December 31, 2024, we have reduced our global debt balance from $202.7 million to $185.1 million, or almost 10% as of December 31, 2025, including the newly added $13.6 million of new Sutton Hill debt. Our interest expense for 12-month ended December 31, 2025, has been reduced by $3.2 million or 15% since the same period last year. This follows an overall debt reduction of $99.9 million since December 31, 2020. Now let me turn it over to Ellen, who will give us an overview of the business in Q4 2025 and full year 2025.

Ellen Cotter, President and Chief Executive Officer, Reading International, Inc.: Thanks, Gilbert, and welcome everybody to the call. While we were disappointed that the global box office resulted in our quarterly and annual revenue results trailing the same periods in 2024, our management teams worked hard through 2025, completing various deals and initiatives that should ultimately lead to a stronger Reading into 2026 and beyond. As Gilbert mentioned, two major asset sales, Cannon Park and Wellington, allowed us to make a sizable reduction in our debt, while we are also retaining the Reading Cinemas opportunity through entering into agreements to lease on those properties. The acquisition of Sutton Hill Associates resulted in the company controlling 100% of the Cinemas 1, 2, 3 building and taking a ground lessee interest in the Village East by Angelika in New York City.

Various amendments with our lenders, as Gilbert just outlined, resulted in maturity date and principal payment date extensions. The implementation of key strategic operational initiatives that should result in an overall stronger cinema trading into the future as the box office improves. While the 2025 box office overall disappointed to date, in 2026 we’ve enjoyed better results. On a flash basis, our global cinemas are trading ahead in 2026 by over 11% on a U.S. dollar basis for the period from January 1 through yesterday, April 1, the very exciting opening day of the Super Mario Galaxy Movie.

In March 2026, the entirely original movie Project Hail Mary, which opened to sensational box office and fanfare from critics and audiences, reinforced our confidence in the theatrical experience and how movies with compelling stories and heart, coupled with amazing marketing campaigns, can create cultural moments for global moviegoers. We’re equally excited for the rest of 2026, which includes highly anticipated major releases like The Devil Wears Prada 2, Toy Story 5, Supergirl, Minions 3, Moana, The Odyssey, Spider-Man: Brand New Day, The Cat in the Hat, Avengers: Doomsday, Dune: Part Three, and Jumanji. Along with industry analysts and press, we believe that 2026 will be the best post-pandemic box office year to date. Picking up on Gilbert’s presentation, let me mention a couple of operational highlights from Q4 2025 and the full year 2025.

Our 2025 revenue results were ultimately behind Q4 2024 and full year 2024. The main driver for the declines came from the comparative film slates. We broke several box office records back in Q4 2024 when the trifecta of Wicked, Moana, and Gladiator proved to be a near-perfect product mix for our circuit. The comparison was always going to be tough to beat. Our top fourth quarter 2025 film titles included Wicked: For Good, Zootopia 2, and Avatar: Fire and Ash. While we were very encouraged with the strong global pre-sale numbers for Wicked: For Good, it unfortunately ended up underperforming its predecessor, Wicked. Our lofty expectations for Avatar: Fire and Ash were ultimately not fully achieved. 2025 reflects a reduction of our overall screen count by 4% through the elimination of two unprofitable theaters, one in the U.S. and one in New Zealand.

While these results impacted our top line, we believe they’ll ultimately improve cash flow in the long run as these theaters underperformed. I’ll touch on this in a minute, but our teams continue to drive impressive food and beverage results, which are bolstered by the creation of movie-themed menus and our marketing efforts to sell movie merchandise. Through 2025, our teams focused on the improvement and expansion of our loyalty programs across all cinema divisions. Across the global circuit, we’re continuing to work with our landlords to reduce our overall occupancy costs to reflect the fact that attendance has not returned to pre-pandemic levels and our operating expenses for the most part have all increased.

With respect to our property divisions, our lower revenues reflected the elimination of real estate revenues generated by our Cannon Park and Wellington property assets, which were sold in 2025 to raise liquidity to pay down debt. Despite the elimination of cash flow generated by these real estate assets sold in early 2025, our global property team continues to drive productive changes in our 58 third-party tenant portfolio, which I’ll touch on shortly. Our U.S. real estate division performed better year-over-year, mainly due to the favorable performance of our live theater division and increases in rent at 44 Union Square. Historically, around 50% of our revenues have been generated in Australia and New Zealand. During the fourth quarter of 2025, that slightly dipped with 48% of our revenues being generated internationally.

In Q4 2025, our quarterly revenue was negatively impacted as the New Zealand dollar devalued against the US dollar by 3% compared to the fourth quarter of 2024. On an average annual basis, the Australian and New Zealand exchange rates are at historical lows compared to the last 20 years. We’ve delivered 6 straight quarters of positive EBITDA. Our balance sheet continues to be anchored by a strong real estate portfolio. An exciting and robust 2026 movie release schedule will enliven our global cinemas again. We feel our company is well-positioned to deliver a much stronger 2026 and beyond, having weathered a very challenging last 5 or 6 years. We’re still absolutely committed to our two-business, three-country strategy.

While we’ve monetized a number of our real estate assets, this has been done to strategically meet our liquidity needs in the face of the pandemic, the unprecedented 2023 Hollywood strikes, historic increases in interest rates, and inflation. We chose those particular assets which typically were either negative cash flow or which, after debt service, did not materially contribute to our cash flow and which, in our view, had reached the best value reasonably achievable without additional significant capital investment. We monetized our California headquarters building to cut administrative costs and have been able to work remotely now for two years. Since the pandemic started in early 2020, we’ve reduced our global cinema count by eight theaters, all of which had experienced negative cash flow since 2022 and most since the pandemic or even earlier.

As of today, we believe we continue to have a strong portfolio of cinema and real estate assets, most of which are cash flowing or expect to be cash flowing in the near future. We’re proud to say we’ve navigated these treacherous waters without one penny of U.S. government assistance, without resorting to debtor rights legal remedies, and without diluting our stockholders. With that, let’s take a closer look at our Q4 2025 global cinema business compared to the same period in 2024. At $46.9 million, our Q4 2025 global cinema revenue decreased by 14%. At $900,000, our Q4 2025 global cinema operating income decreased by 76%. Turning to our full year 2025, our 2025 global cinema revenue of $188.6 million decreased by 3% year over year.

At $3.6 million, our 2025 global cinema operating income increased by 230% from a cinema operating loss of $2.8 million in 2024. As we’ve said, the overall weaker Q4 2025 performance was mostly attributable to a weaker film slate, which was also experienced on a yearly basis or on an annual basis. However, our particular results for the quarter and the full year were also impacted by, for the most part, unfavorable FX movements. The closure of two cinemas, while a positive impact to operating income, negatively impacted our revenues. The partial closure of a 16-screen U.S. cinema that was under renovation towards the end of 2025.

When you look at the year to date through December 31, 2025, as mentioned earlier, our global cinema operating income grew to $3.6 million, an increase of 230% despite a reduction in cinema revenues of 3%, which reflects the continuation of our disciplined management of our operating expenses. Let me highlight a few of those key strategic initiatives that we focused on throughout 2025 and have supported our results through the year. Our F&B program remains a key area of focus for us, and we’ve set multiple records again for the fourth quarter and full year. When you include only periods when our circuits were fully operational, i.e., excluding pandemic closure periods, each of our three cinema divisions again established F&B spend per person records.

In the fourth quarter 2025, records were set for any fourth quarter, and then in the full year 2025, records were set for any prior year ever in our history. Additionally, our Q4 2025 Australian F&B spend per person was the highest quarter ever in our history. These strong F&B results were again positively impacted by the sale of increasingly popular movie merchandise that range from movies like Gabby’s Dollhouse to Zootopia, Avatar: Fire and Ash, Wicked: For Good, Five Nights at Freddy’s, and Anaconda. We’re also driving guests to our theaters through our new and improved loyalty programs, both free-to-join rewards and paid membership programs. In Australia and New Zealand, we recently revamped and relaunched our free-to-join Reading Rewards program to provide better perks and savings. Today, we have over 430,000 members, an 18% increase over the last quarter.

With respect to our paid memberships in Australia and New Zealand for both of our Reading and Angelika brands, since our late Q4 2024 launch, we’ve signed up over 22,139 paid memberships, a 27% increase over last quarter. In December 2025, we launched a new free-to-join rewards program and premium paid membership in Hawaii and in select U.S. Reading Cinemas. In the U.S., our free-to-join Angelika membership program has approximately 183,000 members, a 7% increase from last quarter for our eight Angelika branded theaters. We expect to launch our paid premium Angelika monthly membership next quarter. A key initiative for our global executive teams has been working closely with our third-party cinema landlords to realign occupancy costs with the economic environment of recent years.

During our negotiations with our third-party landlords, when we try to reduce our occupancy expense, we highlight the fact that operating expenses have increased, attendance continues to remain below pre-pandemic levels, and we have limited headroom to raise ticket and food and beverage prices. Let’s take a closer look at the 2025 fourth quarter and yearly results for our U.S. cinemas. Our Q4 2025 revenue decreased by 12% to $25.8 million, and our Q4 2025 operating income decreased by 27% quarter-over-quarter. Our full year 2025 revenue remained relatively flat at $99.5 million compared to the full year of 2024.

While our full year 2025 operating loss improved by 103% to operating income of $200,000 from a loss of $7.3 million in the full year of 2024. In addition to what I mentioned earlier, a couple of other milestones to mention. Our Q4 2025 average ticket price of $14.03 marks our highest quarter ever for our U.S. circuit. This is impressive in light of the strength of our discount Tuesdays, which are branded Mahalo Days in Hawaii and Half Price Tuesday in the U.S. on the mainland. During the fourth quarter of 2025, we enjoyed box office success at the Angelika New York and other specialty theaters with movies like Frankenstein from director Guillermo del Toro, released by Netflix, Neon’s Sentimental Value, The Secret Agent, and No Other Choice.

Through the year 2025, specialty films like The Phoenician Scheme from Wes Anderson, Friendship, and I’m Still Here drew audiences to our specialty theaters. Following the positive 2025 trends, we expect 2026 will deliver a similar result in the world of art house and specialty film. We received stockholder questions about the status of our CapEx spend in 2026. With respect to our U.S. circuit, we’re in the process of renovating our Reading Cinemas at Bakersfield, California. As of the end of January 2026, we added heated recliners to our IMAX screen, which makes that auditorium the only IMAX with recliners within a 100-mile radius. We created a premium screen, Titan LUXE, with a Dolby Atmos sound system and again, heated recliners. We’ve added another 8 screens of luxury recliners.

In the U.S. in 2026, we’re working through renovation plans whereby we’ll add luxury recliners, PLF screens, and F&B upgrades to two of our US cinemas. In addition, through 2026, we’re continuing to refurbish many of our existing recliner seats that were damaged during the pandemic by mandated disinfectants. Turning to our cinemas in Australia and New Zealand. Following Q4 2025 box office trends and compared to Q4 2024, our Q4 2025 Australian cinema revenue decreased 13% to $18.6 million, and our operating income decreased 92% to $139,000. Our Q4 2025 New Zealand cinema revenue decreased 36% to $2.4 million, and our operating income decreased 174% to an operating loss of $372,000.

While comparing the full year 2025 to the full year 2024, in 2025, our Australian cinema revenue decreased 5% to $77.7 million, and our operating income decreased 3% to $3.9 million. In 2025, our New Zealand cinemas revenue decreased 14% to $11.4 million, and our operating income decreased 212% to an operating loss of $479,000. While the overall results for our international theaters was not positive, our box office results were in line with industry trends. During the fourth quarter of 2025, our international cinemas delivered average ticket prices that established record highs. Each circuit reporting in local currency delivered fourth quarter highs for the fourth quarter of 2025.

Australia’s average ticket price was AUD 16.02, while New Zealand’s average ticket price was NZD 14.72. Interestingly, though, in February 2026, our international teams implemented a circuit-wide February flash sale, which gave those who signed up for our Reading Rewards program a very discounted February ticket price. The program was very successful, leading to sizable market share increases in both Australia and New Zealand. With respect to our 2026 international CapEx spend, let me start with New Zealand. As we’ve reported, despite the sale of our Wellington assets, we continue to believe in the Wellington cinema market and entered into an agreement to lease back our Reading Cinema at Courtenay Central.

I’m confirming we’re still working through 2026 on the redesign of that theater in Wellington, and the renovation will be, as we’ve said before, a full top-to-bottom upgrade where we’ll add recliners to all 10 screens, at least two premium screen concepts such as Titan LUXE or others, an upgraded F&B offer, and it will follow the landlord’s seismic upgrade, which is underway right now. We anticipate that our renovation will be completed sometime in 2027. In Australia, we’ll likely be adding a Titan LUXE with Dolby Atmos and one premium screen with recliners to another key Reading Cinemas location. Now, let’s turn to our global real estate business, which on a segment reporting basis includes not only our third-party rental income, but also our live theater business in New York City and our intercompany rents.

Starting with the fourth quarter of 2025, our global real estate results compared to the same period in 2024 were at $4.4 million. Our Q4 2025 global real estate total revenue decreased 16%, and at $1.5 million, our Q4 2025 total operating income slightly increased by 1%. During the full year, our 2025 global real estate results compared to the same period in 2024 were at $18.4 million. Our 2025 global real estate total revenue decreased by 8%, and at $5.9 million, our full year 2025 total operating income increased by 26%. As we’ve said earlier, the reason for these decreases was primarily driven by the elimination of revenue and property-level cash flow from third-party rents because of our two asset sales.

Breaking it down by division for the fourth quarter 2025, and again compared to the same quarter in 2024, with respect to Australia, our Q4 2025 real estate revenue decreased by 16% to $2.5 million, and our Q4 2025 operating income of $4 million decreased by 7% from Q4 2024. At $205,000, our Q4 2025 New Zealand real estate revenue decreased by 38% from $330,000 in Q4 2024. Our Q4 2025 New Zealand real estate operating loss of $3,000 improved 99% from an operating loss of $291,000 in the fourth quarter of 2024.

Our Q4 2025 U.S. real estate revenue of $1.6 million decreased by 10%, and our operating income decreased by 64% to $100,000. On a full year basis, our Australian real estate revenue decreased by 14% to $10.7 million compared to 2024, and our operating income of $5.3 million decreased by 12% compared to 2024. At $881,000, our full-year New Zealand real estate revenue decreased by 38% compared to the full year in 2024, and our New Zealand real estate operating income of $51,000 improved by 105% from an operating loss of $933,000 during the full year of 2024.

At $6.9 million, our full year 2025 U.S. real estate revenue increased by 10% from $6.2 million, and our U.S. operating income increased by 262% to $600,000 from an operating loss of $400,000 during 2024. These improvements were driven in large part by increases in rent at 44 Union Square and the improved performance of our live theater division. With respect to our Australian New Zealand portfolio, as of December 31, 2025, due to our asset sales in Wellington and Townsville at Cannon Park, the number of third-party tenants in our combined Australian and New Zealand real estate portfolio reduced to 58. It is now primarily made up of tenants at Newmarket Village in Brisbane and the Belmont Common in Perth.

The quality of the remaining tenants is strong, and today we have an occupancy rate of 98%. For the fourth quarter, our combined third-party tenant sales from our Australian real estate were AUD 27.5 million. During the quarter, four lease transactions were completed with existing tenants. These included two new leases and two lease renewals, reflecting continued tenant retention and portfolio stability. As of the end of 2025, we had completed 27 lease transactions through the 2025 year. To assist with liquidity needs and potential CapEx for the Reading Cinemas at Courtenay Central, we reported that we signed an agreement to sell our property in Napier, New Zealand for NZD 2.5 million. Like our cinema in Wellington and Townsville, we expect to lease back the cinema on our Napier property.

Though no assurances can be given, we would expect that that sale will close within the next few months. Turning to our U.S. real estate business, which includes our two live theaters in New York City. Regarding our live theater segment, in Q4 2025, our results were not as strong due to the Orpheum being dark for most of the quarter. Unlike the Minetta Lane, which outperformed the same period in 2024, thanks to the hip-hop musical Mexodus. On an annual basis, the live theater segment performed better in 2025 compared to 2024 because of the powerful shows mounted by Audible at the Minetta Lane, including Sexual Misconduct of the Middle Classes with Hugh Jackman and Ella Beatty, Creditors featuring Liev Schreiber. On an annual basis, the Orpheum Theater also delivered a stronger show lineup than the prior year.

Audible exercised its option to extend their license another year at the Minetta Lane through to March 2027. Looking ahead, 2026 at the Minetta Lane should be a very strong year again as Audible Theater and Together, the theatrical partnership led by Sonia Friedman and Hugh Jackman, are again mounting great shows led by the return of Hannah Moscovitch’s Sexual Misconduct of the Middle Classes with Ella Beatty and Hugh Jackman, with performances that begin already in mid-March of 2026. Since the departure of Stomp, the Orpheum Theater continues to be in high demand with theatrical producers. During Q3 and part of Q4, Ginger Twinsies, a parody inspired by the iconic film The Parent Trap, received strong praise, played at the Orpheum for a while.

Today, the Orpheum continues to host performances of Eleven to Midnight, a theatrical dance experience starring TikTok viral sensations Cost n Mayor, which has been extended into the second quarter of 2026. Turning to our property at 44 Union Square in New York City. While Petco continues to delight pet parents across New York City with its award-winning retail store, we still have 4 floors left to lease in the building. We switched brokers and re-engaged Newmark, the same leasing team that successfully delivered the Petco deal for us. Newmark has created a new marketing campaign for the remaining space. They’ve relisted on CoStar, rebranded the marketing materials. They’re creatively using social and AI technologies to assist in their leasing efforts. To date, Newmark has toured office users, but also potential tenants whose use focuses on wellness, education, and entertainment.

Newmark’s renewed energy and focus on the space comes at a time when the industry data shows that the leasing environment appears to have meaningfully improved in Midtown South. While we are working with Newmark, we continue to dialogue with one group that had presented a non-office use. Turning to the Reading Viaduct. Reflecting the importance of the Reading Viaduct as a property asset for the company, we received detailed questions from our stockholders about the range of values for this property, discussions with the city, and how the outstanding legal matters may impact those values. On the STB case, we recently filed our appeal with the D.C. Circuit Court of Appeals. We expect that the D.C. Circuit Court may take between six months and a year to deliver a decision. We continue to believe we have a strong legal position.

For further details about this asset, we’d ask you to go back and review the more detailed responses we put in our recently filed 10-K. We’ll point out again that the company believes that the Reading Viaduct is a valuable company asset, and any transaction in the future tied to the Reading Viaduct should represent a fair value for the stockholders of Reading. Our Newberry Yard property in Williamsport, Pennsylvania remains classified as held for sale. However, we don’t have any substantive updates for you for this earnings call and hope to have more to say on our next call. That now wraps up my business update. Before we address additional specific questions, I wanted to recognize and give a heartfelt thank you to Andrzej Matyczynski, who was with Reading for 27 years.

Andrzej started with us in 1999 as our CFO, and in 2015 became our Executive Vice President of Global Operations. When Andrzej started in 1999, Reading reported revenue of just under $4 million. For 2025, despite the pandemic, Hollywood strikes, and industry interest rate hikes, we just reported about $203 million of total revenues, with almost $435 million in total assets. As our CFO and Executive Vice President of Global Operations, Andrzej helped build the company brick by brick over the last few decades. He was instrumental in many foundational transactions and was a huge part of many aspects of our global business. Andrzej, on behalf of the board, the Cotter family, and the whole management team, we express our sincerest thanks and appreciation for your service and your amazing body of work.

We miss working with you day to day, especially as each of those days usually came with a few great Andre jokes that kept us all laughing. We’re collectively wishing you the best for your next chapter. With that, I’ll take over the Q&A section, and I’ll read out the first question, which is for Gilbert. The 10-K now shows the Bank of America facility maturing September 18, 2026, the Santander, Minetta, and Orpheum loan maturing June 1, 2026, the Valley National Cinemas 1, 2, and 3 loan maturing October 1, 2026, and the 44 Union Square loan maturing November 6, 2026, with an extension option to May 6, 2027. Please walk through the board’s intended 2026 sequence for addressing these facilities, including which are expected to be repaid from asset monetization versus refinanced, and in what order. Gilbert?

Gilbert Avanes, Chief Financial Officer and Treasurer, Reading International, Inc.: To address the liquidity needs, the board has decided to list the Cinemas 1, 2, 3 buildings for sale. With the sale of the proceeds from this property, we plan to pay off the Valley National loan, which has a current balance of $19.7 million, and to pay off the Bank of America loan, which has a current balance of $6 million. While no assurance can be given, we believe it is reasonable to assume that this property can be monetized before the end of third quarter of this year. Regarding the Santander Minetta and Orpheum loan and the 44 Union Square loan with Emerald Creek Capital, we’re currently exploring with lenders to refinance and further extend the maturity dates.

Ellen Cotter, President and Chief Executive Officer, Reading International, Inc.: Thanks, Gilbert. I’ll read out the second question and provide an answer. Since 2020, you note that 8 cinemas have been wound up and all had negative cash flow in the year of closing. Beyond Queenstown and San Diego, how many additional cinemas are presently on a watch list for closure or lease restructuring, and what operating criteria drive those decisions? Well, at this point, we know we’ll be closing at least 1 additional U.S. theater in 2026. The lease expired on the space without any remaining options, which gave the landlord the opportunity to take back the space, and that has been confirmed they’ll do that. Across the U.S., we’re in negotiation with most of our cinema landlords. We think that most landlords should be making some sort of occupancy adjustment to reflect the fact that operating expenses have increased across the board.

While we’re hopeful that the global cinema business returns to pre-pandemic levels, we need to take a conservative approach in that regard. In Australia and New Zealand, our teams are likewise seeking occupancy reductions with certain third-party cinema landlords. As we work with our landlords in the U.S., Australia, and New Zealand, we’re evaluating the strength of the potential future cash flows in light of existing business circumstances. If we have an opportunity to exit a theater that we believe will not contribute to our overall circuit cash flow, we will look to exit. We expect over the next 12-18 months, there may be a few more cinema closures. I’ll also note that our confidence in the business remains strong, and we’ll also continue to evaluate new cinema opportunities in compelling markets as those opportunities present themselves to us. Now there’s the third question.

I’m gonna read out the question and provide the answer. The question is, my understanding is that the primary value of the Cinemas 1, 2, 3 property lies in its redevelopment rights rather than its current use. Could you elaborate on the terms of the intended sale? Specifically, will there be any conditions requiring the continuation of cinema operations at the site for a defined period prior to any potential redevelopment? And are there any covenants or requirements regarding the form of redevelopment? For example, an obligation to include a cinema lease as part of any new construction. As we just talked about, the board recently decided to list the Cinemas 1, 2, 3 building for sale. We engaged a really good sales team at Newmark in New York City. Since the official marketing launch, the interest in the building has been really strong with Newmark.

They’ve been marketing the building as an irreplaceable Upper East Side asset with great fundamentals. The building has proximity to luxury retail, Central Park Avenue, Billionaire’s Row. It’s got easy transportation options. In addition, it sits within one of Manhattan’s most affluent and supply-constrained residential corridors. The current zoning on the building is expansive, which offers potential buyers the opportunity to build for a range of uses, including residential luxury condos, retail, and/or office. In addition, one could develop a hotel if you obtained a special use permit. The sales market today is improved from where it was a few years ago, and I think that improvement is evident by the fact that Newmark has already signed up over 50 confidentiality agreements, which allows very qualified and skilled groups to come into our data room.

We’re intending to sell the property on an as-is/where-is basis without any future cinema use requirements from us as a seller. We’re not listing the price, or we’re not listing the property with the sales price, rather the market’s gonna dictate the price. Lastly, while no assurances can be given, we believe it’s reasonable to assume that the Cinemas 1, 2, 3 building will be sold before the end of the third quarter of this year. I’ll take the next question. It was a short question. Does Reading anticipate selling any further properties in 2026? As we’ve just talked about in the prepared remarks, we’ve got two assets officially held for sale, our Newberry Yard property in Williamsport, Pennsylvania, and the Cinemas 1, 2, 3 building in Manhattan.

In addition, our property in Napier, New Zealand, is under contract to sell for NZD 2.5 million. While no assurances can be given, we believe it’s reasonable to assume that these assets can be monetized before the end of the third quarter of this year. The board’s directed the management team to evaluate our current real estate portfolio for opportunities to monetize assets that, after taking into account a number of factors, may assist in our debt reduction strategy and necessary CapEx requirements. However, as of today, outside the assets I just mentioned, we have no definitive plans to sell any other assets right now. I’m gonna read out the last question, which will be for Gilbert. We received questions about our general and administrative expense allocation.

Our stockholder asks, the company reported G&A expenses of $19.3 million for the full year of 2025, which is a considerable amount relative to the operating results of both business segments. Could you provide additional color on how these costs are composed? Specifically, it would be helpful to understand the approximate split between corporate and holding level costs that directly support the cinema and real estate operations, respectively. As G&A is currently not allocated to the segments in your reporting, a clearer breakdown would help investors better assess the underlying profitability of each business on a standalone basis. Gilbert.

Gilbert Avanes, Chief Financial Officer and Treasurer, Reading International, Inc.: Regarding our G&A expenses of $19.3 million, our cinema business is responsible for $4.1 million or 21%, $0.7 million or 4% is attributable to real estate, and $14.4 million or 75% attributable to corporate. Corporate expenses are primarily incurred within the United States as most of the corporate employees are primarily located in Los Angeles area. We have made concrete efforts to lower our G&A expenses and created efficiencies wherever possible. Since 2019, we have lowered our G&A expenses by $6.1 million, which is about 24%, 24% reduction. That marks the conclusion of our fourth quarter and the full year 2025 conference call. We appreciate you listening to the call today. Thank you for your attention and support.

Ellen Cotter, President and Chief Executive Officer, Reading International, Inc.: Thank you.