Yesterday, SCHL announced that the company had signed agreements for the sale-leasebacks of its headquarters location in New York City (555-557 Broadway) and its primary distribution facility in Jefferson City, Missouri, which are expected to generate an aggregate $401 million in net proceeds. Upon closing of both transactions, which are expected to occur before calendar year end 2025, SCHL will enter into long-term leases to continue operations at both strategically important locations. We maintain our estimates, awaiting clarity on the use of proceeds, which we anticipate SCHL will discuss on the 2Q:F26 earnings call on December 18. Net proceeds of $401 million, which amount to over 50% of SCHL's current market cap, are expected to be allocated toward a combination of debt repayment and share repurchases. SCHL is set to forgo about $12 million in annualized rental income while incurring an incremental $19 million in annualized lease expense. We estimate a $30 million net negative impact to annualized adjusted EBITDA. We view the monetization plan favorably; it will likely lead to meaningful balance sheet improvement and an attractive EV/EBITDA multiple. We maintain our $35 price target, based on 16x our F2027 EPS forecast of $2.10. Our moderate risk rating balances SCHL's strong market position in children's book publishing and current restructuring initiatives.