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This is primarily due to an increase in payroll and benefit costs, including non-cash stock grant amortization and to a lesser degree, an increase in franchise taxes due to a refund received in 2024 and increase in costs associated with adding additional Board members. The Motley Fool recommends EPR Properties.
Our conversion rate of deals approved by our investment committee to letters of intent signed is the highest in over two years at approximately 38%. Simultaneously, we have ramped up our efforts and leveraged our tenant relationships, exemplifying how we create proprietary dealflow and accretive off-market opportunities.
This will also help public and corporate leaders to better assess cyber risks and liabilities, so they can develop effective strategies and mitigate potential impacts. And is there any difference in linearity of dealflow during the quarter, this quarter versus previous quarters? The Motley Fool has a disclosure policy.
We continue to experience healthy dealflow, which helped offset the margin impact of our system integration, which we estimate was approximately 130 basis points in the quarter. And likewise in D&A, our mid-teens guidance reflects the impact of depreciation and amortization related to United Grocery Outlets. Best regards.
Our team's continued efforts to create value and identify these opportunities combined with our improved cost of capital have opened up a larger opportunity set and resulted in accelerated dealflow. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
in the prior-year quarter, and is inclusive of the mix impacts from NuVasive as well as $19 million of inventory step-up amortization related to the merger. Given the impact of step-up amortization on GAAP results, we are introducing an adjusted gross profit metric to better provide comparability with operating results. So two for me.
Our team's efforts continue to produce unique and proprietary dealflow, and we continue to identify attractive investment opportunities across all three external growth platforms. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
million, representing an 83% adjusted gross profit margin after adjusting for amortization. In Q3, total operating expenses decreased by approximately $2 million year over year, excluding noncash stock based compensation expenses, cost of revenue amortization, and transaction costs. This is Josh Resnik. I can address that.
Dealflow is very strong, and we believe that we are still the best partner in the industry. For fiscal 2025, we will have increased capital expenditures due to a higher number of organic new store openings and supply chain investments, and as a result, higher depreciation and amortization.
We have provided the granular guidance on corporate unallocated expense, deal related amortization, interest expense and tax rate in the supplemental deck posted to our IR site. There's not a lot of dealflow. This is an area where people have been looking at how they're going to be managing their own expenses.
These specific groups further simplified their structures, resulting in a fourth quarter restructuring charge of 61 million, comprised of severance and accelerated amortization of previously granted deferred compensation awards. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Approximately 1 ppt is from the amortization of acquired intangible assets related to the purchase price allocation, and the remaining relates to integration costs and other onetime expenses. I mean that's really subject to what kind of dealflow and deal activity we see. So we exercised materiality thresholds on that.
As I've stated in the past, we have yet to see a correlation between sales and retailer demand as evidenced by our dealflow, both in terms of number of deals and square footage when compared to the same period last year, and I'll get into this more in a moment. Traffic for the year was up almost 2% when compared to 2023.
With lower interest rates and an increasing supply of capital to the commercial real estate sector, we are optimistic about the opportunities to capture dealflow and grow as the commercial real estate market recovers from the last two years of restricted interest rates. Thank you for your time this morning.
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