Agree Realty Corporation (ADC) 2023 Q2 法說會逐字稿

Good day, and welcome to the Agree Realty Second Quarter 2023 Conference Call. (Operator Instructions)

各位早安，歡迎參加 Agree Realty 2023 年第二季電話會議。（接線員指示）

Note today's event is being recorded. I would now like to turn the conference over to Brian Hawthorne, Director of Corporate Finance. Brian, please go ahead.

請注意，今天的活動將被錄音。我現在要把會議交給企業財務總監 Brian Hawthorne。Brian，請開始。

Thank you. Good morning, everyone, and thank you for joining us for Agree Realty's Second Quarter 2023 Earnings Call. Before turning the call over to Joey and Peter to discuss our results for the quarter, let me first run through the cautionary language. Please note that during this call, we will make certain statements that may be considered forward-looking under federal securities law.

謝謝。各位早安，感謝各位參加 Agree Realty 2023 年第二季財報電話會議。在把電話交給 Joey 和 Peter 討論本季業績之前，我先說明警示性用語。請注意，在本次電話會議中，我們將發表若干依據聯邦證券法可能被視為前瞻性陳述的內容。

Our actual results may differ significantly from the matters discussed in any forward-looking statements for a number of reasons. Please see yesterday's earnings release and our SEC filings, including our latest annual report on Form 10-K for a discussion of various risks and uncertainties underlying our forward-looking statements. In addition, we discuss non-GAAP financial measures, including core funds from operations or core FFO, adjusted funds from operations or AFFO, and net debt to recurring EBITDA. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release, website and SEC filings. I'll now turn the call over to Joey.

由於多項原因，我們的實際結果可能與任何前瞻性陳述中討論的事項有重大差異。關於支撐前瞻性陳述的各項風險與不確定性，請參閱昨日的財報新聞稿以及我們向 SEC 提交的文件，包括最新的 Form 10-K 年度報告。此外，我們也會討論非 GAAP 財務衡量指標，包括核心營運資金（core funds from operations，或 core FFO）、調整後營運資金（adjusted funds from operations，或 AFFO），以及淨負債對經常性 EBITDA。這些非 GAAP 財務衡量指標與最直接可比的 GAAP 指標之調節表，可在我們的財報新聞稿、網站及 SEC 申報文件中查閱。現在我把電話交給 Joey。

Thanks, Brian, and thank you all for joining us this morning. This quarter, we sell several notable milestones for our company. We surpassed the 2,000-property mark in 49 states, adding Alaska to our geographic reach. Our tremendous team has now doubled the size of our portfolio in less than 3 years. Additionally, we have completed and moved into our new state-of-the-art headquarters to support our continued growth. The building includes cutting-end technology, a wellness center, locker rooms and auditorium, a coffee bar, outdoor spaces and other collaborative meeting areas. We've incorporated a number of environmentally friendly features and anticipate that the building will achieve lead certification in the near future.

謝謝，Brian，也感謝各位今天早上加入我們。本季我們達成公司數項重要里程碑。我們在 49 個州的物業數量突破 2,000 處，並將阿拉斯加納入我們的地理版圖。我們優秀的團隊在不到 3 年內將投資組合規模翻倍。此外，我們已完成並搬入全新的最先進總部，以支持持續成長。該大樓包含尖端科技、健康中心、更衣室與禮堂、咖啡吧、戶外空間及其他協作會議區域。我們也納入多項環保設計，並預期該大樓將在不久的將來取得 LEED 認證。

Lastly, we have continued to invest in information technology and made further enhancements to our proprietary ARC database with the rollout of an updated module for development and construction. These investments are paying significant dividends as they have increased automation and significantly reduced manual entry. This has created thousands of hours of time savings that have enabled us to strategically reallocate resources to further bolster our sourcing, underwriting and relationship management capabilities. In addition, these savings in our continued top line growth are anticipated to bring G&A as a percentage of revenue, down at least 50 basis points to 6% or lower this year. Looking ahead, we have ambitious plans for our IT environment, and we look forward to sharing more with you in the coming months.

最後，我們持續投資資訊科技，並透過推出更新的開發與施工模組，進一步強化我們自有的 ARC 資料庫。這些投資帶來顯著效益，提升自動化並大幅降低人工輸入。這創造了數千小時的時間節省，使我們得以策略性地重新配置資源，進一步強化我們的案源開拓、承作評估（underwriting）與關係管理能力。此外，這些節省加上我們持續的營收成長，預期將使今年一般及行政費用（G&A）占營收比重至少下降 50 個基點至 6% 或更低。展望未來，我們對 IT 環境有宏大的規劃，並期待在未來幾個月與各位分享更多。

Moving to our results. I'm very pleased to report that we continued our strong start to the year, deploying significant capital across our 3 external growth platforms, maintaining near full occupancy and further solidifying our balance sheet. During the quarter, we invested approximately $324 million and 120 high-quality retail net lease properties across our 3 external growth platforms. This includes the acquisition of 92 assets for approximately $305 million.

接著談到我們的業績。我很高興報告，我們延續今年強勁的開局，在三大外部成長平台上部署大量資本，維持接近滿租的出租率，並進一步鞏固資產負債表。本季我們在三大外部成長平台上，投資約 3.24 億美元於 120 項高品質零售淨租賃物業。其中包括以約 3.05 億美元收購 92 項資產。

The properties acquired during the second quarter are leased to leading retailers operating in sectors, including off-price retail, farm and role supply, dollar stores, auto parts and tire and auto service. Our closed transactions to date and current pipeline include a myriad of different transaction structures, sale leasebacks with leading operators, blend and extend opportunities, new and repeat sellers as well as distressed developers. We continue to be the first and last call in a highly fragmented and fatigue market. Cap rates continue to move in our favor as demonstrated by our second quarter results. The acquired properties had a weighted average cap rate of 6.8%, a 10-basis point expansion relative to the first quarter and 60 basis points higher than full year 2022.

第二季收購的物業承租人為各領域的領先零售商，涵蓋折扣零售、農牧與鄉村用品、美元商店、汽車零件，以及輪胎與汽車服務等產業。我們迄今完成的交易與目前的案源管線包含多元的交易結構：與領先營運商的售後回租（sale-leaseback）、延長租期的混合方案（blend and extend）機會、新舊賣方、以及陷入困境的開發商。我們在高度分散且出現疲態的市場中，持續成為賣方的第一通與最後一通電話。資本化率（cap rates）持續朝對我們有利的方向變動，第二季結果即為明證。收購物業的加權平均資本化率為 6.8%，較第一季擴張 10 個基點，亦較 2022 全年高出 60 個基點。

The weighted average lease term was close to 10 years and approximately 73% of annualized base rents are derived from investment-grade retailers. We acquired 3 ground leases during the quarter, representing approximately $26 million or 8% of total acquisition volume for the quarter. Given our acquisition volume year-to-date, we increased visibility into our growing pipeline, we are raising our acquisition guidance from at least 1.2 billion to at least 1.3 billion for the year. I anticipate the third quarter to be our largest volume quarter to date this year as our pipeline has grown significantly.

加權平均租約年期接近 10 年，且約 73% 的年化基本租金來自投資等級零售商。本季我們收購了 3 筆地上權租賃（ground leases），金額約 2,600 萬美元，占本季總收購量約 8%。鑑於今年迄今的收購量、以及我們對持續成長的案源管線能見度提高，我們將全年收購指引由至少 12 億美元上調至至少 13 億美元。我預期第三季將是今年迄今成交量最大的季度，因為我們的案源管線已顯著擴大。

As always, we remain disciplined to our underwriting criteria and avoid moving up the risk curve or deviating from our strategy. Our fortress balance sheet enables us to execute on many exciting opportunities while most of our competition is sidelined. As mentioned on prior calls, there continues to be a lack of competition within our targeted sandbox and our ability to move quickly and with certainty makes us the buyer of choice in today's market. A seller fatigue continues to settle in, we've been able to execute an extremely high-quality opportunities while pushing cap rates 60 basis points above last year's average.

一如既往，我們仍嚴守承作評估標準，不會提高風險承擔或偏離策略。我們堅實的資產負債表使我們能在多數競爭對手暫時觀望之際，把握許多令人振奮的機會。如同先前電話會議所提，於我們鎖定的目標範圍內競爭仍然不足，而我們能快速且確定地完成交易，使我們成為當前市場的首選買方。隨著賣方疲態持續加深，我們得以執行極高品質的機會，同時將資本化率推升至較去年平均高出 60 個基點。

Through the first half of this year, we've invested $638 million across 189 retail net lease properties spanning 36 states and 22 retail sectors. Approximately $607 million of our investment activity is originated from our acquisition platform. Close to 3/4 of the annualized base rent acquired in the first 6 months of the year comes from leading investment-grade retailers. These metrics demonstrate our continued ability to execute and opportunities with best-in-class retailers across multiple different avenues, including one-off acquisitions from both individual and institutional counterparties, sale-leasebacks with our retail partners, diversified portfolios, development in our Partner Capital Solutions program.

今年上半年，我們在 36 個州、22 個零售產業領域的 189 項零售淨租賃物業上，合計投資 6.38 億美元。其中約 6.07 億美元的投資活動源自我們的收購平台。今年前 6 個月所收購的年化基本租金中，接近四分之三來自領先的投資等級零售商。這些指標顯示，我們持續具備執行能力，並能透過多種途徑與同級最佳的零售商把握機會，包括與個人及機構交易對手的單筆收購、與零售合作夥伴的售後回租、多元化投資組合收購，以及我們 Partner Capital Solutions 計畫中的開發案。

In light of the increased interest in that program and to more clearly define it for future prospective developers, we are renaming the program, a developer funding platform or DFP. Increased activity we're seeing across our development in DFP platforms as evidenced by the 31 projects completed or under construction, representing a record capital commitment of approximately $126 million. As of June 30, we incurred approximately $78 million of costs related to the 31 completed or ongoing projects.

鑑於該計畫的興趣提升，並為未來潛在開發商更清楚地界定，我們將該計畫更名為「開發商資金平台」（developer funding platform，DFP）。我們在開發與 DFP 平台上看到的活動增加，可由已完成或在建的 31 個專案反映，對應創紀錄的資本承諾約 1.26 億美元。截至 6 月 30 日，我們就這 31 個已完成或進行中的專案已發生約 7,800 萬美元成本。

During the quarter, we commenced 2 new projects with total anticipated cost of approximately $10 million. Construction continued during the quarter on 20 projects for over $87 million of anticipated total costs. 6 projects were completed during the quarter, including a HomeGoods in South Elgin, Illinois Sunbelt Rentals in St. Louis, Missouri and 3 Gerber Collision developments.

本季我們啟動 2 個新專案，預估總成本約 1,000 萬美元。本季持續施工的專案有 20 個，預估總成本超過 8,700 萬美元。本季完成 6 個專案，包括伊利諾州 South Elgin 的 HomeGoods、密蘇里州聖路易斯的 Sunbelt Rentals，以及 3 個 Gerber Collision 開發案。

Moving on to leasing. We executed new leases, extensions or options on over 280,000 square feet of gross leasable area during the second quarter, including a Walmart in Land in Michigan and a Hobby Lobby in Mount Dora Florida. Through the first 6 months of the year, we executed new leases, extensions or options on approximately 793,000 square feet of gross leasable area. We are in excellent position for the remainder of the year with just 10 leases or 30 basis points of annualized base rents maturing.

接著談租賃。我們在第二季就超過 280,000 平方英尺的可出租面積（gross leasable area）簽訂新租約、續約或行使選擇權，其中包括密西根州的 Land in 的 Walmart，以及佛羅里達州 Mount Dora 的 Hobby Lobby。今年前 6 個月，我們就約 793,000 平方英尺的可出租面積簽訂新租約、續約或行使選擇權。就今年剩餘期間而言，我們處於極佳位置，僅有 10 份租約到期，約占年化基本租金 30 個基點。

As I mentioned earlier, our best-in-class portfolio now spans more than 2,000 properties across 49 states, including 210 ground leases representing 11.9% of total NOI base rents. Occupancy this quarter remained very strong at 99.7%, and our investment-grade exposure is approaching 68%.

如我先前提到，我們同級最佳的投資組合目前涵蓋 49 個州超過 2,000 處物業，其中包含 210 筆地上權租賃，約占總 NOI 基本租金的 11.9%。本季出租率維持非常強勁的 99.7%，投資等級曝險接近 68%。

With that, I'll hand the call over to Peter, and then we can open it up for questions.

接下來我把電話交給 Peter，之後我們再開放提問。

Thanks, Joey. Starting with earnings, core FFO per share for the second quarter was unchanged compared to the same period last year at $0.98. AFFO per share for the second quarter increased 1.1% year-over-year to $0.98. In April, we increased our monthly cash dividend to $0.243 per share, representing a 1.3% month-over-month increase. We subsequently declared monthly cash dividends of $0.243 per share for each of May, June and July. The monthly dividend represents an annualized dividend amount of almost $2.92 per share and is 3.8% higher than the annualized dividend from the comparable periods in 2022.

謝謝，Joey。先從獲利開始，第二季每股核心 FFO 與去年同期持平，為 0.98 美元。第二季每股 AFFO 年增 1.1% 至 0.98 美元。4 月我們將每股每月現金股利提高至 0.243 美元，較前月增加 1.3%。隨後我們也宣告 5 月、6 月與 7 月每月現金股利皆為每股 0.243 美元。該月配息折算年化後接近每股 2.92 美元，較 2022 年可比期間的年化股利高出 3.8%。

Our payout ratio for the second quarter was below our stated range at 74% of AFFO per share. Our growing dividend continues to be supported by our strong payout ratio and continued earnings growth. General and administrative expenses totaled $8.4 million in the second quarter. G&A expense was 6.1% of revenue adjusted for the noncash amortization of above and below market lease intangibles or 6.5% of unadjusted revenue. As Joey mentioned earlier, we continue to gain G&A leverage. For the full year, we still expect G&A to decrease at least 50 basis points as a percentage of adjusted revenue.

第二季的配息率低於我們所述區間，為每股 AFFO 的 74%。我們持續成長的股利，仍受到穩健的配息率與持續的獲利成長所支撐。第二季一般及行政費用合計 840 萬美元。若就調整後營收（排除高於與低於市場租約無現金攤銷）計算，G&A 費用占營收比重為 6.1%；若以未調整營收計算則為 6.5%。如 Joey 先前提到，我們持續取得 G&A 槓桿效益。就全年而言，我們仍預期 G&A 占調整後營收比重至少下降 50 個基點。

Income tax expense was approximately $709,000 during the second quarter. For the full year, we now expect income tax expense to be between $2.5 million and $3.5 million, down from the previous range of $3 million to $4 million.

第二季的所得稅費用約為70.9萬美元。就全年而言，我們目前預期所得稅費用將介於250萬至350萬美元之間，低於先前的300萬至400萬美元區間。

Moving to our capital markets activities. We further fortified our balance sheet during the quarter with commitments for a $350 million 5.5-year term loan with strong support from our key banking partners. We closed the term loan on July 31 and drew the full $350 million, which was used to pay down all amounts outstanding on our revolver. Today, we have no variable rate debt outstanding and no material debt maturities until 2028. This was a market-leading financing and the 5.5-year term allowed us to extend the maturity into 2029, which fits nicely into our debt maturity schedule. In advance of closing the term loan, we entered into $350 million of forward starting swaps to fix SOFR over the 5-year period.

接著談我們的資本市場活動。本季在主要往來銀行夥伴的大力支持下，我們取得3.5億美元、期限5.5年的定期貸款承諾，進一步強化資產負債表。我們於7月31日完成該定期貸款並全額提用3.5億美元，用以償還循環信貸（revolver）項下所有未償餘額。目前我們沒有任何浮動利率債務未償，且在2028年前沒有重大到期債務。這是一筆市場領先的融資，而5.5年的期限使我們得以將到期日延長至2029年，與我們的債務到期結構安排相當契合。在完成定期貸款交割之前，我們已簽訂3.5億美元的遠期起始利率交換（forward starting swaps），以在5年期間內鎖定SOFR。

Including the impact of the swaps, the interest rate on the term loan is fixed at 4.52% based on our current credit rating. The term loan also includes an accordion option that allows us to request additional lender commitments up to a total of $500 million. We settled approximately 3.1 million shares of outstanding forward equity during the second quarter, realizing net proceeds of over $205 million.

包含交換合約的影響後，依據我們目前的信用評等，該定期貸款的利率固定為4.52%。該定期貸款亦包含「accordion」增額選擇權，允許我們要求貸方額外承諾，使總額最高可達5億美元。我們於第二季交割約310萬股尚未交割的遠期股權（forward equity），實現淨募資款超過2.05億美元。

As of June 30, we still had approximately 2.9 million shares remaining to be settled under existing forward sale agreements, which are anticipated to raise net proceeds of $202 million upon settlement. At quarter end, our net debt to recurring EBITDA was approximately 4.1x pro forma for the settlement of our outstanding forward equity. Excluding the impact of unsettled forward equity, our net debt to recurring EBITDA was approximately 4.5x.

截至6月30日，我們在既有遠期出售協議下仍約有290萬股尚待交割，預計交割後可募集淨額2.02億美元。以季末並假設尚未交割的遠期股權完成交割之備考（pro forma）基礎計算，我們的淨負債對經常性EBITDA約為4.1倍。若排除未交割遠期股權的影響，我們的淨負債對經常性EBITDA約為4.5倍。

Our total debt to enterprise value at quarter end was approximately 25%, while our fixed charge coverage ratio, which includes principal amortization and the preferred dividend, remained in a very healthy position at 5.1x. We had total liquidity of over $910 million at quarter end, including nearly $700 million of availability on the revolver, over $200 million of outstanding forward equity and more than $12 million of cash on hand. Pro forma for the recent closing of the $350 million 5.5-year term loan, total liquidity is bolstered to approximately $1.3 billion.

季末我們的總負債對企業價值（enterprise value）約為25%；而我們的固定費用覆蓋倍數（fixed charge coverage ratio，包含本金攤還及特別股股利）仍維持在非常健康的5.1倍。季末我們的總流動性超過9.10億美元，其中包括循環信貸可用額度近7億美元、未交割遠期股權超過2億美元，以及手上現金逾1,200萬美元。以近期完成3.5億美元、期限5.5年的定期貸款交割之備考基礎計算，總流動性提升至約13億美元。

Lastly, I want to thank our ESG Steering Committee for issuing our third annual ESG report during the quarter. The report outlines the significant progress that we've made on ESG initiatives in the past year, including earning gold level recognition from the Green Lease Leader program and introducing reporting on greenhouse gas emissions. In addition, the report highlights our new headquarters, which as Joey mentioned earlier, is anticipated to receive LEED certification.

最後，我要感謝我們的ESG指導委員會於本季發布第三份年度ESG報告。該報告概述我們在過去一年於ESG倡議上取得的重大進展，包括獲得Green Lease Leader計畫的金級認證，以及新增溫室氣體排放的揭露。此外，報告也重點介紹我們的新總部；如Joey先前提到，預計將取得LEED認證。

With that, I'd like to turn the call back over to Joe.

接下來，我想把電話會議交回給Joe。

Thank you, Peter. The opportunity set in front of our company is truly exciting. We are uniquely positioned to execute within a distressed environment with a lack of competition. At this time, operator, we will open it up for questions.

謝謝你，Peter。我們公司眼前的機會組合確實令人振奮。在競爭不足的困境環境中，我們具備獨特的執行優勢。此時，接線員，我們將開放提問。

(Operator Instructions) And our first question today comes from Joshua Dennerlein of Bank of America.

（接線員指示）今天的第一個問題來自美國銀行（Bank of America）的Joshua Dennerlein。

This is [Tal Grant] on behalf of Josh. Denali. And I just had a quick question about -- if you can make a comment on your choice of issuing the term loan and your view of cost of capital and maybe how that's transpiring especially with your forward equity also outstanding.

我是[Tal Grant]，代表Josh提問。Denali。我有個簡短問題想請教——能否評論一下你們選擇發行這筆定期貸款的考量、你們對資金成本（cost of capital）的看法，以及在你們仍有未交割遠期股權的情況下，這些因素目前如何發展？

Sure. Thanks for the question. This is Peter. First, I want to thank our bank group for their continued support and participation in the term loan. In terms of our process, we evaluated all options prior to moving forward with the term loan and considered the thermal market pricing to be most attractive. In addition, we were able to issue a 5.5-year term loan, and there have not been many, if any, 5.5-year deals in the REIT market recently, which allowed us to push the maturity into 2029 where we had a window in our debt maturity schedule. So this accomplished our goal of issuing attractively priced fixed rate debt that fits well into our well-laddered debt maturity schedule and allowed us to maintain no material debt maturities until 2028.

當然。謝謝你的問題。我是Peter。首先，我要感謝我們的銀行團對這筆定期貸款持續的支持與參與。就我們的流程而言，在推進定期貸款之前，我們評估了所有選項，並認為當時的定期貸款市場定價最具吸引力。此外，我們得以發行一筆5.5年期的定期貸款；近期REIT市場幾乎沒有（若有的話）5.5年期的交易，這讓我們能把到期日推進到2029年，而那正好是我們債務到期結構中的一個窗口。因此，這達成了我們以具吸引力的價格發行固定利率債務、並良好嵌入我們階梯式（well-laddered）的債務到期安排的目標，同時也讓我們在2028年前維持沒有重大到期債務。

In terms of our cost of capital today, as you mentioned, we have the $350 million term loan at 4.5% that we just closed. We have $200 million of outstanding forward equity in the high 5s and our cost of equity today is in a fairly similar range. And when you take those inputs and combine them, that puts our weighted average cost of capital roughly in the mid-5s today.

就我們目前的資金成本而言，如你所提到，我們剛完成交割的3.5億美元定期貸款利率約為4.5%。我們仍有2億美元未交割的遠期股權，成本在5%高段（high 5s），而我們目前的股權成本也大致落在相近區間。將這些因素綜合起來，我們目前的加權平均資金成本（WACC）大約在5%中段。

Our next question will come from Eric Wolfe from Citi.

下一個問題來自花旗（Citi）的Eric Wolfe。

In the past, you've talked about the merchant developers that haven't really made any profit on the development we need to find liquidity eventually. Just curious how much of that inventory has been worked through at this point? And then as you look forward for Dollar General and others that merchant development was a big part of the store openings. How are they satisfying their need to open stores? What solutions are they looking for?

過去你們談到過，那些商業型開發商（merchant developers）在我們需要時並未從開發中真正獲利，最終仍需要找到流動性。想請教目前這部分庫存大概已消化到什麼程度？另外，展望Dollar General等零售商，商業型開發曾是其展店的重要來源之一；他們現在如何滿足開店需求？他們在尋找哪些解決方案？

Eric, it's Joey. It's very topical. We continue to have conversations and constructive conversations with retailers that have historically relied upon on merchant builders to deliver net new stores. Frankly, the development market and developers, in particular, are significant -- face significant challenges and headwinds today. Not only obviously rates and cap rates gapped out. But with the regional banking crisis and the lending constraints that we're seeing from primarily the regional lenders that local and regional lenders that supported those developers through construction loans and facilities have really pulled back. So we're in conversations with developers. We're in conversations with retailers. We heard Tractor Supplies commentary. I believe it was last week in their earnings call, how they anticipate moving to more of a really either a fee or a balance sheet program.

Eric，我是Joey。這確實是很切題的議題。我們持續與過去仰賴商業型建商交付全新門店的零售商進行對話，而且是具建設性的對話。坦白說，開發市場，尤其是開發商，目前面臨重大挑戰與逆風。不僅利率與資本化率（cap rates）明顯拉開差距；此外，隨著區域銀行危機以及我們看到的放貸限制，原本透過建築貸款與授信額度支持這些開發商的地方與區域型放款機構，已大幅收縮。因此，我們正與開發商對話，也與零售商對話。我們也聽到Tractor Supply在我記得是上週的財報電話會議中提到，他們預期將更多轉向以費用型（fee）或資產負債表型（balance sheet）方案來推進。

This is going to be a topic of conversation for the next couple of years, where and when we can provide solutions, whether through our developer funding platform, organic development and/or sale leasebacks, we're looking at all of those opportunities. But it's a significant point of this stress. I'll tell you during the second quarter specifically, our acquisition volume did not have an abundance of merchant developer programs merchant developer transactions. We were really more focused in the second quarter had some unique opportunities from third-party sellers and stabilized assets.

這將會是未來幾年持續討論的主題；在我們能提供解決方案之處，無論是透過我們的開發商資金平台（developer funding platform）、自有開發（organic development）和／或售後回租（sale leasebacks），我們都在評估所有這些機會。但這確實是壓力來源中的一個重要點。我可以告訴你，就第二季而言，我們的收購量並沒有大量的商業型開發商方案／商業型開發商交易。我們第二季的重點其實更偏向一些來自第三方賣方的獨特機會以及已穩定（stabilized）的資產。

And then just, I guess, it's probably -- I know it's different for every single tenant, but like in terms of the sort of percentage, if you will, of stores that they typically source through this, I'm just trying to understand, is it 20%? Was it 60%? And then looking forward, I mean, I assume that, that pipeline has gone to 0, maybe I'm wrong in that because I'm trying to understand I think you would need at least probably north of an 8% yield to develop to date, but curious on your thoughts there as well.

另外我想追問一下——我知道每個承租戶都不一樣，但就比例而言，他們通常有多少比例的門店是透過這種方式取得的？是20%？還是60%？再往前看，我的理解是那條管線可能已經降到0了，也許我錯了；因為我想了解的是，我認為要做到開發到交付，可能至少需要8%以上的收益率（yield），也想聽聽你們對此的看法。

I think it's the first part of it. We broke ground on 2 projects during the quarter. We'll break ground on additional projects this year. We're going to continue to be selective. You mentioned that 8 yield. I think that's probably appropriate, obviously, given term credit and underlying real estate here. But again, duration equals risk. We're not going to take speculative risk, of course, but we're also not going to take duration risk without the appropriate risk-adjusted returns through either a development funding platform or true organic development. But I think, look, we're going to see more and more challenges. I feel the number of phone calls personally from large developers that are out there looking to fill that major gap in their capital stack, and we're going to continue to see retailers change their operating strategies for new store growth.

我先回應第一部分。我們本季有2個專案動工；今年還會有其他專案動工。我們會持續保持選擇性。你提到8%的收益率，我認為大概是合理的，當然要視租約信用（term credit）與底層不動產而定。但再說一次，期間（duration）等於風險。我們當然不會承擔投機性風險，但若沒有適當的風險調整後報酬，無論是透過開發資金平台或真正的自有開發，我們也不會承擔期間風險。不過我認為，未來挑戰會愈來愈多。我個人接到來自大型開發商的電話數量正在增加，他們正在尋找資本結構（capital stack）中的重大缺口資金；同時，我們也將持續看到零售商調整其新店成長的營運策略。

Our next question comes from Brad Heffern with RBC.

下一個問題來自RBC的Brad Heffern。

Joey, can you talk about your expectation for cap rates? And if they've largely settled out or if the acquisitions in the pipeline have some additional upward pressure?

Joey，你能談談你們對資本化率（cap rates）的預期嗎？它們是否已大致穩定下來，或是管線中的收購案仍帶來一些進一步上行的壓力？

Yes. We talked about in the fall, handing back all the way to NAREIT that we thought it would be an incremental increase in cap rates that they weren't going to exponentially gap out. At the same time, we were going to be prudent and disciplined given the volatility in the market and the pre-equitization of our balance sheet without moving up the risk curve. And I think you've seen that once again from us this quarter with our activity, again, 73% investment grade, 8% ground leases, not rely on upon Walgreens or car washes or retailers that are in decline or have balance sheet that are, frankly, on the weaker end. And so look, I will tell you, for Q3, our pipeline is large. It will be emblematic of 2022. The difference is, it's going to be about 70 basis points higher in 2022.

是的。我們在秋季時就談過，一路回溯到 NAREIT，我們認為資本化率（cap rates）會是漸進式上升，而不會呈指數式拉開差距。同時，鑑於市場波動，以及我們在不提高風險曲線的前提下對資產負債表進行「預股權化」（pre-equitization），我們會保持審慎與紀律。我想你也再次從我們本季的活動中看到了這一點：同樣地，73% 為投資級、8% 為地面租賃（ground leases），不依賴 Walgreens、洗車場或走下坡的零售商，或是資產負債表坦白說較弱的租戶。所以你看，我會告訴你，第三季（Q3）我們的管線很大，會呈現出 2022 年的樣貌。不同之處在於，相較 2022 年將高出約 70 個基點。

So 2022 Q3 was approximately $360 million. I anticipate our Q3 acquisitions have surpassed that and again, be about 70 basis points higher year-over-year. And so we continue to see more migration, more, frankly, capitulations on sellers and in realization that the new normal is here. And it's here to stay, and it's here to stay for who knows how long, but it's going to be here for a while.

所以 2022 年第三季約為 3.6 億美元。我預期我們今年第三季的收購已經超過那個水準，而且同樣地，年增約 70 個基點。因此我們持續看到更多的移轉、更多（坦白說）賣方的讓步，以及對「新常態」已經到來的認知。而且它會持續存在，會存在多久誰也說不準，但它會在一段時間內持續。

And then have you been surprised that we haven't seen more credit issues that resulted in lost rent so far across the industry? And do you think that that's something that we'll continue to see going forward? Or do you see a change in that?

另外，你是否對目前整個產業迄今沒有看到更多導致租金流失的信用問題感到意外？你認為未來我們會持續看到這種情況嗎？還是你覺得會有變化？

No. We've talked about it before. I think we're back to a pre-COVID world where retailers thrive and then retailers have challenges. There are a number of retailers out there today, Juan at home, you can keep going down that list that are having challenges. We're going to see additional bankruptcies across the retail space. But again, that was -- that's normal. It happens in every industry. It just didn't really happen during Covid when everybody got -- either had a stay or deferred rent or we're able to access cheap capital. So we're going to continue to see the retailers with the balance sheet and the liquidity to invest in fulfillment options, in labor and in price thrive and those that don't have that liquidity. There's a great piece in I believe it was the Wall Street Journal last week talking about the demise of Bed Bath & Beyond and how it lands work there. in her commentary. But I think we're going to continue to see those retailers that don't have that liquidity and balance sheet to invest in those 3 areas of their business continue to degrade until, frankly, they can no longer survive and can't get inventory.

不。我們之前談過。我認為我們回到了疫情前的世界：零售商有興盛的時候，也有面臨挑戰的時候。現在市場上有不少零售商——像 Juan at home（音）——你還可以繼續列下去——正面臨挑戰。我們會在零售領域看到更多破產案。但再次強調，那是——那是正常的。每個產業都會發生。只是疫情期間並沒有真正發生，因為大家要嘛獲得寬限、要嘛延後支付租金，或是能取得便宜資金。所以我們將持續看到那些資產負債表與流動性充足、能投資於履約（fulfillment）選項、人力與定價的零售商表現良好；而那些沒有這種流動性的零售商則不然。我記得上週《華爾街日報》有一篇很棒的文章，談到 Bed Bath & Beyond 的衰落，以及她在評論中提到那裡的工作情況。但我認為，我們會持續看到那些缺乏流動性與資產負債表能力、無法在這三個面向投資的零售商持續惡化，直到坦白說他們無法再生存、也無法取得庫存。

Our next question comes from Haendel St. Juste from Mizuho.

下一個問題來自 Mizuho 的 Haendel St. Juste。

Joey, I just wanted to follow up on the last question. In your remarks, you talked about the lack of competition and also that your pipeline has some sale leasebacks and that you're in discussions with some distressed developers. So I was curious if you could talk a bit more about the range of opportunities you're looking at today within the pipeline? Does it include any portfolio of any new sectors? And how does the range of yields compared to your recent activity here in the high 6s (inaudible)?

Joey，我想跟進上一個問題。在你的談話中，你提到競爭不足，也提到你的管線包含一些售後回租（sale leasebacks），而且你正在與一些陷入困境的開發商討論。所以我想請你多談一些：你們目前在管線中正在看的機會範圍是什麼？是否包含任何投資組合或任何新產業？另外，收益率的範圍與你們近期在 6% 高段（聽不清）附近的活動相比如何？

Yes, Haendel thanks. I appreciate the question. It is, as I mentioned in the prepared remarks, it is a wide range of opportunities. Frankly, I've never seen just a wide range of opportunities in my career all the way from retailers trying to figure out how to get new stores in the ground for 2024 and 2025 openings to sale leasebacks, which will ramp here for us. In Q3, we have a number or a couple of sale-leasebacks that are fairly significant here in Q3. So it's a very, very wide range of opportunities.

是的，Haendel，謝謝。我很感謝這個問題。正如我在事先準備的發言中提到的，機會的範圍非常廣。坦白說，我職涯中從未見過如此廣泛的機會範圍：從零售商試圖為 2024 與 2025 年開店把新店落地，到售後回租——這部分對我們而言將在此加速。第三季我們有數筆或幾筆相當重要的售後回租交易會在第三季完成。所以這是一個非常、非常廣泛的機會範圍。

The key for us is selecting those opportunities that make sense, not only quantitatively, but qualitatively within our portfolio. Again, we're just not going to go up the risk curve here. We're seeing yield incrementally come our way, again, printing a 6.8% this quarter, a 6.7% last quarter, and I anticipate printing higher than the 6.8% next quarter. where that migration in terms of yield or expansion ends up is anybody's guess at this time. And so I think we're going to continue to be selective, but I'll tell you, we've never seen the diverse set of opportunities that we've seen.

對我們而言，關鍵在於挑選那些不僅在量化上、也在質化上符合我們投資組合的機會。再次強調，我們不會在這裡提高風險曲線。我們看到收益率逐步朝我們有利的方向移動——本季成交（printing）6.8%，上季 6.7%，而我預期下季會高於 6.8%。至於收益率移轉或擴張最終會停在哪裡，現在誰也說不準。因此我認為我們會持續保持選擇性，但我會告訴你，我們從未見過如此多元的一組機會。

The lack of competition in the market is frankly stunning. It's us and sellers' expectations. And so the private 1031 buyer has vanished except the infrequent ones, the high net worth individuals. You don't hear about them over too much. The nontraded REITs, of course, aren't playing in this space anymore. And then the levered private purchasers can't get the leverage. So we really have our choice here. And it's an interesting paradigm to be in. And as I mentioned in the prepared remarks, I've never seen an opportunity so ripe and fruitful with that wide-ranging spectrum of opportunities.

市場上缺乏競爭，坦白說令人震驚。只剩我們以及賣方的期待。私人 1031 買家幾乎消失了，除了偶爾出現的高淨值人士；你也不太常聽到他們。非交易型 REIT 當然也不再在這個領域出手。再者，使用槓桿的私人買家拿不到槓桿融資。所以我們基本上可以自由挑選。這是一個很有意思的局面。正如我在事先準備的發言中提到的，我從未見過一個機會如此成熟且豐饒、而且機會光譜如此廣泛的時刻。

Are you seeing any new capital starting to nibble or rent space at all?

你有看到任何新的資金開始小幅進場或在這個領域試水溫嗎？

Absolutely 0. We are seeing a paralysis on this market. And every day, we get a seller or a developer who crosses the line into the 2023 new normal and says, what raises the white flag. And that's our -- and that is what we're seeing daily. It has accelerated into Q3. We have limited visibility into Q4. As I said, Q3 will be larger than last year's Q3. It will be fairly or significantly larger than Q2 or Q1 this year. But this market continues to have fatigue. Again, I'll reiterate where that goes in terms of pricing beyond Q3 and anybody's guess, I don't see a contraction there happening anytime in the near future. But it's opportunities to go lower, it's just question of strike price and where -- frankly, where sellers finally give in and where they realize that 2023, it's a different world.

絕對是 0。我們看到這個市場處於癱瘓狀態。每天我們都會遇到某個賣方或開發商跨過界線、接受 2023 年的新常態，等於是舉白旗投降。而這就是——這就是我們每天看到的情況。這種情況在第三季加速。我們對第四季的能見度有限。如我所說，第三季會比去年第三季更大，也會比今年第二季或第一季大得多或顯著更大。但這個市場仍然呈現疲態。再次重申，第三季之後價格會往哪裡走，誰也說不準；我不認為短期內會出現收縮。但仍有往更低價格成交的機會，問題只是成交價（strike price）是多少，以及——坦白說——賣方何時終於讓步、何時意識到 2023 年已是不同的世界。

And one quick one on 7-Eleven. Now they're a top 10 tenant of years. Can you discuss the availability and pricing you're seeing in the stores? And if that will be an area of focus going forward as well?

再快速問一個關於 7-Eleven 的問題。現在他們是你們多年來的前十大租戶之一。你能談談你在門市看到的供給情況與定價嗎？以及這是否也會是未來的重點方向？

Yes, it will be. C-stores, specifically large format C-stores are a major area of focus for us across all 3 platforms. The largest transaction of the quarter, as you mentioned, was a 7-Eleven portfolio from a third-party seller, 10 stores, 9 out of 10 are in the Charlotte MSA transaction was just over $32 million. It was a repeat seller for us. The disposition during the quarter was tied to that acquisition. It was actually a 7-Eleven that we acquired from that seller. And so somewhat of a horse trade there.

是的，會的。便利商店（C-stores），尤其是大型格式的便利商店，是我們三個平台的主要重點領域。本季最大的一筆交易，如你所提到，是向第三方賣方收購的一個 7-Eleven 投資組合：10 家店，其中 10 家有 9 家位於夏洛特都會統計區（Charlotte MSA），交易金額略高於 3,200 萬美元。這是我們的回頭賣方。本季的處分（disposition）與該筆收購相連；實際上那是一家我們先前從該賣方收購的 7-Eleven。因此某種程度上算是一種對換交易（horse trade）。

We are seeing significant activity across the C-store space. There are 2 C stores, both sheets and Cumingo, which is being acquired by Maverick entering our backyard as we speak. We're working on the sale-leaseback front. We're working out with developers who frankly have gapped out their cap rates 100 to 150 basis points on a one-off basis and then looking at some institutional level platforms that could potentially make sense for us.

我們在便利商店領域看到非常活躍的動態。有兩家便利商店業者——Sheetz 和 Cumingo（音）——其中 Cumingo 正被 Maverick 收購，正如我們所說正在進入我們的地盤。我們在售後回租方面也在推進；也在與開發商合作，而這些開發商坦白說在單筆交易上已把資本化率拉開了 100 到 150 個基點；同時也在看一些可能對我們有意義的機構級平台。

There's some major expansion plans with most of the regional C-store operators in this country, whether it's Wawa or SheetZ or Quick Trip or Cumingo MaverIcK now, there are a lot of C-stores in the works and in the planning phases. There's not a lot of capital to fund them. So it could present even more interesting opportunities, and we're in active discussions today.

美國多數區域型便利商店營運商都有重大擴張計畫，不論是 Wawa、SheetZ、Quick Trip，或是現在的 Cumingo/MaverIcK，都有很多便利商店正在推進與規劃階段。但可用來資助它們的資金不多。因此這可能帶來更有趣的機會，而我們目前也在積極洽談中。

Can you give us a sense of the yield you're seeing broadly?

你能否大致說明一下你們廣泛看到的收益率水準？

Sorry, Haendel will repeat that?

抱歉，Haendel，你可以再重複一次嗎？

Can you give us a sense of the yields you're seeing there broadly?

你能否大致說明一下你們在那裡廣泛看到的收益率水準？

It's across the board. I'll be honest. The one-off transactions or what, frankly, depends on the level of desperation and certainty required by the developer. I'll tell you that we are in sale-leaseback discussions and have some in our pipeline that are wider, the institutional sellers or frankly, the corporates themselves that want to recycle and redeploy that capital into that business. And so there's a range I would tell you from 6 to 7 that we're able to strike on those transactions.

各種情況都有。老實說，單筆交易——坦白說——取決於開發商的急迫程度，以及他們所需要的確定性。我可以告訴你，我們正在進行售後回租的討論，管線中也有一些利差更寬的案子；至於機構型賣方，或坦白說企業本身想要回收並重新部署資本到其本業。因此我會說，這類交易我們能談成的範圍大約在 6% 到 7%。

Our next question comes from Rob Stevenson with Janney.

下一個問題來自 Janney 的 Rob Stevenson。

Joey, what does the ground lease market look like today? Does it look any different from the changes you've seen in the fee simple market over the last year or so?

Joey，目前地租（ground lease）市場看起來如何？相較於你在過去一年左右於完全所有權（fee simple）市場看到的變化，現在有什麼不同嗎？

No, Rob, it's really the same. I mean, they're really parallel market, similar sellers often similar types of transactions. It's just the we structure. During the quarter, as I mentioned, we acquired 3 ground leases, I believe it was. The largest was a Lowe's ground lease in Rhode Island for just over $15 million. We're seeing a number of opportunities on the ground lease front. Q3 for us will have a significant ground lease exposure, but really no change there in terms of differentiation from the traditional turnkey market.

沒有，Rob，基本上是一樣的。我的意思是，兩者其實是平行的市場，賣方往往相似、交易類型也常常相似。差別只是在我們的結構安排。本季如我提到的，我們收購了 3 筆地租，我記得是這樣。其中最大的一筆是羅德島的一個 Lowe's 地租，金額略高於 1,500 萬美元。我們在地租端看到不少機會。對我們而言，第三季將會有顯著的地租曝險，但就與傳統 turnkey 市場的差異而言，真的沒有什麼改變。

So not harder there to get to the right price on those assets today versus a fee simple asset?

所以相較於完全所有權資產，現在在那些資產上要達到合適價格並不會更難？

It's all seller-specific irregardless of the lease structure.

這完全取決於賣方本身，與租約結構無關。

And then you just talked about the one small asset that you sold year-to-date. How are you thinking about that over the back half of '23, not only from a portfolio pruning perspective, but also as a source of equity capital versus a low to mid-60 stock price?

另外你剛提到今年迄今只賣了一個小資產。你如何看待 2023 年下半年這件事——不僅從投資組合修剪（portfolio pruning）的角度，也從相較於股價在低到中 60 美元區間時，作為股權資本來源的角度？

We've talked about it for (inaudible) into Q4 of last year, the 1031 market, I continue to believe is an unproductive use of this team's time. We have the portfolio in a position that we really like -- frankly, we're fond of, unless somebody wants to buy one of our couple of movie theaters. And I'll mention Regal affirmed our lease officially, which we had no concern over in New Jersey or [SoulRegal]. Everything is for sale. The problem is, frankly, the execution and just the human capital time and resources. So we pruned the portfolio actively for years. It was atleast -- at the very least a nominal source of recycling. Every asset is for sale in the portfolio shows the money in the bank, and we're happy to look at some real offers, but we're not going to play [Go Fish] with 1031 buyers today and frankly, have the inefficiency of time and resources.

我們從去年第四季（<content>（聽不清）</content>）就一直在談，1031 市場我仍然認為是對這個團隊時間的低效使用。我們的投資組合目前處在我們非常喜歡——坦白說，我們很中意——的狀態，除非有人想買我們那幾家電影院。我也提一下，Regal 已正式確認（affirmed）我們在新澤西或 [SoulRegal] 的租約，我們對此本來就沒有任何疑慮。所有資產都可以出售。問題坦白說在於執行，以及人力資本的時間與資源。因此我們多年來一直積極修剪投資組合；至少——至少是一個名目上的資產循環（recycling）來源。投資組合裡每一項資產都可以出售，只要錢進銀行，我們也樂於看一些真正的報價；但我們今天不會跟 1031 買家玩 [Go Fish]，更不會承受時間與資源上的低效率。

This team, as I mentioned in the prepared remarks, has really been recalibrated given the automation and lack of manual entry through our IT investments to be the tip of the spear. And today, transacting in a 1031 market is a difficult proposition.

如我在準備好的講稿中提到的，這個團隊在我們的 IT 投資帶來自動化、減少手動輸入之後，已經重新校準，成為衝鋒在前的尖兵。而在 1031 市場進行交易，今天是一個很困難的命題。

Our next question comes from Ki Bin Kim with Truist.

下一個問題來自 Truist 的 Ki Bin Kim。

Joey, I just want to go back to the topic of the improved acquisition environment. I was wondering if you can help kind of paint the picture a little bit more. I'm not sure if it's possible to answer it this way, but if you can try to quantify that, for example, if you were seeing a couple of billion dollars worth of deals to close $300 million maybe 6 months ago, is it $2.5 billion that you're seeing, the $3 billion to trying to see -- get a better understanding of how much has improved.

Joey，我想回到收購環境改善這個話題。我想請你再幫忙把情況描繪得更清楚一些。我不確定能不能用這種方式回答，但如果你能試著量化一下：例如 6 個月前你可能看到價值數十億美元的交易，但能成交的可能只有 3 億美元；那現在你看到的是 25 億美元？還是 30 億美元？我想更了解改善的幅度。

Ki Bin, I don't have ARC open in front of me. I could pull that data really quickly if we had ARC. And as I mentioned in the prepared remarks, we're looking at doing something to demonstrate enhanced IT capabilities and infrastructure that we're now we've achieved. I'll tell you -- and then we'll pull that for you after the call. I'll tell you, from my perspective, it's the quality of the inbounds that we're now seeing. Real sellers who need to really transact and want certainty. Most of them have been on the market, either had a 1031 fish on the hook that dropped maybe even a second one and finally are saying or perhaps their lender is saying, it's time to move. And so we're seeing more realistic pricing.

Ki Bin，我現在手邊沒有打開 ARC。我們如果有 ARC 的話，可以很快把那些數據拉出來。而且如我在準備好的講稿中提到的，我們正在考慮做一些事情，來展示我們現在已經達成的 IT 能力與基礎設施的提升。我先告訴你——我們會在會後把 ARC 的資料拉給你。就我個人的觀點而言，現在我們看到的是「主動找上門」案源（inbounds）的品質提升：是真正需要成交、並且想要確定性的賣方。他們多數已經在市場上掛了一段時間，可能原本有一個 1031 的買家上鉤但掉了，甚至第二個也掉了，最後他們才說——或者他們的放款銀行說——是時候要賣了。因此我們看到更務實的定價。

The bid-ask gap is closing on more assets quarter-over-quarter. We're within striking distance. And I'll tell you our reputation, the team's work here is second to none. And so we'll continue to get those first and last calls. We're not getting as many of the calls that are still asking for 4 handles or 5 handles because I think the market has come to the realization that those just, frankly, don't fit in today's world. So from a quality perspective, it is noticeable, we'll get you some actual statistics pulled from ARC after the call.

買賣價差（bid-ask gap）在更多資產上逐季收斂。我們已經在可攻擊的距離內。我也要說，我們的口碑、團隊在這裡的工作表現無可匹敵。因此我們會持續拿到第一通與最後一通電話。我們不再接到那麼多仍在要求 4 字頭或 5 字頭報酬率（4 handles 或 5 handles）的電話，因為我認為市場已經意識到，那些坦白說在今天的環境下就是不合適。所以就品質而言，改善是很明顯的；我們會在會後從 ARC 拉一些實際統計數據給你。

And your leverage on a spot basis was 4.5x in the first quarter and the same in the second quarter. Just high level, going to 2024, where do you think average leverage will settle out at? We have no problem running leverage, obviously, from here. As Peter did a tremendous job and his team on the term loan. We have no debt maturities, as Peter mentioned until 2028. Our stated leverage range of 4x to 5x was from COVID. historically before that. I believe we're at 5 to 6x migrating to 5 or above 5% is no challenge here. We have, again, no near-term jet maturities, no floating rate exposure. So the balance sheet is going to remain fortified, but operating the balance sheet at 5x or up to 5.5x doesn't scare me in the least.

另外，你們第一季的即期槓桿（spot basis）是 4.5 倍，第二季也是一樣。從高層次來看，展望 2024 年，你認為平均槓桿會落在什麼水準？我們當然不介意從這裡開始提高槓桿。Peter 和他的團隊在定期貸款（term loan）上做得非常出色。我們沒有任何到期債務，如 Peter 提到的，要到 2028 年才有。我們所說的 4 倍到 5 倍槓桿區間是 COVID 之後的；在那之前，歷史上我相信我們是 5 到 6 倍，並且正往 5 倍或 5 倍以上移動，這裡完全不是問題。我們同樣沒有近期的到期債務，也沒有浮動利率曝險。因此資產負債表會維持強健；但把資產負債表運作在 5 倍、甚至到 5.5 倍，一點也不讓我擔心。

We've always run the balance sheet at a conservative -- obviously, with a conservative approach. We pioneered forward equity in the space. We'll continue to monitor all sources of capital and when advantageous to execute on it. But by no means do we feel the need that leverage has to run in the low 4s. If you look at the composition of our portfolio, our balance sheet, the maturity schedule, that balance sheet and then the duration of the leases and quality of those leases and the underlying assets. There's absolutely no challenge running leverage higher, and you won't see us issuing equity at $64.50 or wherever we closed yesterday. That's for sure.

我們一向以保守的方式來管理資產負債表——顯然是以保守的取向。我們在這個領域率先採用遠期股權（forward equity）。我們會持續監控所有資本來源，並在有利時加以執行。但我們絕不認為槓桿必須維持在 4 倍出頭。如果你看我們投資組合的組成、資產負債表、到期結構，以及租約的存續期間、租約品質與底層資產品質，提高槓桿完全沒有問題；而且你不會看到我們在 64.50 美元或昨天收盤價那個水準發行股權，這是肯定的。

We have no problem running leverage, obviously, from here. As Peter did a tremendous job and his team on the term loan. We have no debt maturities, as Peter mentioned until 2028. Our stated leverage range of 4x to 5x was from COVID. historically before that. I believe we're at 5 to 6x migrating to 5 or above 5% is no challenge here. We have, again, no near-term jet maturities, no floating rate exposure. So the balance sheet is going to remain fortified, but operating the balance sheet at 5x or up to 5.5x doesn't scare me in the least.

我們當然不介意從這裡開始提高槓桿。Peter 和他的團隊在定期貸款（term loan）上做得非常出色。我們沒有任何到期債務，如 Peter 提到的，要到 2028 年才有。我們所說的 4 倍到 5 倍槓桿區間是 COVID 之後的；在那之前，歷史上我相信我們是 5 到 6 倍，並且正往 5 倍或 5 倍以上移動，這裡完全不是問題。我們同樣沒有近期的到期債務，也沒有浮動利率曝險。因此資產負債表會維持強健；但把資產負債表運作在 5 倍、甚至到 5.5 倍，一點也不讓我擔心。

We've always run the balance sheet at a conservative -- obviously, with a conservative approach. We pioneered forward equity in the space. We'll continue to monitor all sources of capital and when advantageous to execute on it. But by no means do we feel the need that leverage has to run in the low 4s. If you look at the composition of our portfolio, our balance sheet, the maturity schedule, that balance sheet and then the duration of the leases and quality of those leases and the underlying assets. There's absolutely no challenge running leverage higher, and you won't see us issuing equity at $64.50 or wherever we closed yesterday. That's for sure.

我們一向以保守的方式來管理資產負債表——顯然是以保守的取向。我們在這個領域率先採用遠期股權（forward equity）。我們會持續監控所有資本來源，並在有利時加以執行。但我們絕不認為槓桿必須維持在 4 倍出頭。如果你看我們投資組合的組成、資產負債表、到期結構，以及租約的存續期間、租約品質與底層資產品質，提高槓桿完全沒有問題；而且你不會看到我們在 64.50 美元或昨天收盤價那個水準發行股權，這是肯定的。

Our next question comes from Wesley Golladay with RBC Capital Markets.

下一個問題來自 RBC Capital Markets 的 Wesley Golladay。

I think you guys have my old dial-in program at Baird now. Just a quick question on the DFP program. It sounds like that's going to be just the lending component. But maybe can you talk about the mix of how you're going to help the developers or the retailers. Do you have any sense of the mix of actual lending that you're going to do versus the other product you offer such as the actual development yourself?

我想你們現在用的是我以前在 Baird 的那套撥入程式。關於 DFP 計畫我有個簡單問題。聽起來那會只是放款（lending）組成部分。但你能否談談你們將如何協助開發商或零售商的組合？你是否大致了解你們實際會做的放款占比，與你們提供的其他產品（例如你們自己實際進行開發）之間的比例？

So Wes, just for clarity purposes, we will not lend if we don't own fee simple. We're not going to have a mortgage platform here. We don't have that in place today. We're not carrying any notes payable on the balance sheet today. Look, that's the chasm. I mean you've hit it on the head. It's the second question, hitted on the head is what do retailers do relevant to merchant builders for net new store growth? And it's about a 30%, 40% gap if they can even obtain financing today. And we're exploring different opportunities.

Wes，為了釐清，我們不會在不擁有完全所有權（fee simple）的情況下放款。我們不會在這裡建立按揭平台（mortgage platform）。我們目前也沒有這樣的架構。我們今天的資產負債表上也沒有任何應付票據（notes payable）。你看，這就是那道鴻溝。你的第二個問題一針見血：就零售商而言，面對商業建商（merchant builders）要推動淨新增門店成長（net new store growth）時該怎麼做？如果他們今天甚至能取得融資，也大概有 30% 到 40% 的缺口。而我們正在探索不同的機會。

The key question is what is the exit pricing when that asset comes online, whether it be in 2024 or early 2025. So that is -- that's the crux of the question here. But where developers are seeing credit being extended today, it is -- frankly, it does not provide the capital stack to execute on their pipelines.

關鍵問題在於，當該資產上線時（無論是在 2024 年或 2025 年初），退出定價會是什麼。因此，這——這就是此處問題的核心。但開發商今天看到信貸被延展的地方，坦白說——它並未提供足以執行其開發管線的資本結構。

And this is -- I mean this is kind of a big shock what's happened last year. And these companies probably take a long time to change their mindset, and it sounds like they're doing it a little bit. The -- last year, you just dropped a bunch of Gerber collisions. And I imagine you have in the background, a wide array of people you're talking to. So I'm just kind of curious how big is the shadow pipeline of retailers that you're working with now?

而這——我的意思是，去年發生的事情算是相當大的震撼。這些公司可能需要很長時間才能改變他們的思維模式，聽起來他們也正在稍微調整。那——去年你拋出了很多 Gerber collisions。我想你在背景中也和各式各樣的人在交流。所以我有點好奇，你們現在正在合作的零售商「影子管線」到底有多大？

So subject to how you're ending your defining shadow pipeline, I'll tell you, we've never had as many conversations with both significant developers and with retailers trying to find solutions at the asset or the programmatic level. Again, those solutions can be challenging. We see retailers changing their platforms, doing fee development, doing it on balance sheet, holding returns, some are expanding returns for developers, but none of it resolve the underlying problem here. And so those conversations are daily. They're ongoing. We're seeing one-off. We're seeing multiple of portfolio and pipelines have developers that are short anywhere between $50 million and $250 million for their pipeline. The question is where to strike and we're just not willing to take speculative risk. That's our line.

在取決於你如何定義影子管線的前提下，我可以告訴你，我們從未像現在這樣，與重要的開發商以及尋求在資產層級或計畫層級找到解決方案的零售商進行如此多的對話。再次強調，這些解決方案可能具有挑戰性。我們看到零售商正在改變其平台、做費用型開發（fee development）、在資產負債表上自行開發、保留報酬；有些在擴大對開發商的報酬，但這些都無法解決根本問題。因此，這些對話是每天都在發生、持續進行的。我們看到單筆案子，也看到多筆組合與管線；有些開發商在其管線上短缺約 5,000 萬到 2.5 億美元不等。問題在於要在哪裡出手，而我們就是不願意承擔投機性風險。這是我們的底線。

(Operator Instructions) Our next question comes from Ronald Kamdem from Morgan Stanley.

（接線員指示）我們的下一個問題來自摩根士丹利（Morgan Stanley）的 Ronald Kamdem。

Just 2 quick ones. So one, going back to the cost of capital calculation. I think in the mid-5s, I think we're sort of getting to similar numbers. So we're on the -- I think you talked about not doing equity here, but where is the right level? And how do you guys sort of think about it in terms of where it makes sense to press?

兩個很快的問題。第一個，回到資金成本的計算。我想在 5% 中段，我們大概得到相近的數字。所以我們在——我想你提到這裡不做股權融資，但正確的水位在哪裡？你們如何思考在什麼情況下值得加大力度？

I won't declare a spot price; I think it's subject to the pipeline. But I think, look, we came into the year saying we don't need equity. We don't need equity to hit the 1.3 and stay within our current stated leverage range. And so we'll continue to evaluate all of those markets. And then importantly, the relative cost of capital in all -- in each and every single one of them. So Peter and his team will continue to evaluate it. We'll be opportunistic. We don't anticipate a preferred coming back at 4 quarter anytime soon. That's for sure. The 10-year market doesn't look overly attractive, hence, the term loan this quarter. The good news is we don't need any capital. So that's the best news is we don't need any capital. That was the plan coming into this year. We have strong lender support from obviously the term loan or the 5.5-year term loan, and we can continue to remain opportunistic.

我不會宣告一個明確的點位；我認為這取決於管線。但我想，聽著，我們年初就說過我們不需要股權。我們不需要股權就能達到 1.3，並維持在我們目前所述的槓桿區間內。因此，我們會持續評估所有這些市場。更重要的是，各個市場中每一個的相對資金成本。所以 Peter 和他的團隊會持續評估。我們會把握機會。我們不預期優先股會在短期內於 4 個季度內回歸。這是肯定的。10 年期市場看起來並不特別有吸引力，因此本季採用定期貸款。好消息是我們不需要任何資本。所以最好的消息就是我們不需要任何資本。這就是我們今年進來時的計畫。我們獲得強勁的放款人支持，顯然來自定期貸款或 5.5 年期定期貸款，而我們也能持續保持機會主義。

And then you guys always have sort of the lowest bad debt versus peers. Just can you remind us how much is budgeted, how much you've gone through year-to-date? And maybe I think you hit on the Regal but maybe hit on the Bed Bath and Party City and what you're thinking, what's it looking like there?

另外，你們的壞帳一直都比同業低。能否提醒我們預算編列了多少、今年迄今已經發生了多少？以及我想你提到了 Regal，但也請談談 Bed Bath 和 Party City，你們的想法是什麼、那邊目前看起來如何？

Yes. I'll hit the second question and turn it over to Peter. Regal in Sul, New Jersey was a firm Bed Bath. We had 3 Bed Bath total entering the bankruptcy. One was purchased by Burlington, which is out there in the ecosystem already. The second one is near resolution where we anticipate we'll execute a new lease shortly a tenant approved with a significant NOI and then we're working through the third one. In terms of Party City, all leases were affirmed except one, which we recaptured and have entered in or about to enter into a lease with a far vastly improved a tenant there on a new term with a significant NOI lift as well.

好的。我先回答第二個問題，然後交給 Peter。位於新澤西州 Sul 的 Regal 原本是一家 Bed Bath。我們在破產申請時總共有 3 家 Bed Bath。其中一家被 Burlington 收購，而 Burlington 已經在這個生態系中。第二家接近解決，我們預期很快會簽署新租約，租戶已核准，並帶來顯著的 NOI；第三家我們仍在處理中。至於 Party City，除了一份租約外，其餘租約都已被確認（affirmed）；那一份我們已收回，並已簽訂或即將簽訂一份新租約，租給一個大幅改善的租戶，採用新的租期，同樣也會帶來顯著的 NOI 提升。

And Ron, in terms of bad debt expense, we don't guide to a specific number. Year-to-date, we've recorded bad debt expense of approximately $275,000. That's roughly 10 basis points of revenue and roughly in line with the bad debt expense that we recorded last year as a percentage of revenue. Looking back historically, that's slightly below our longer-term average. We've been closer to 20 or 25 basis points. But as Joey mentioned, the portfolio is in great shape, and we don't expect any material deviation from those levels.

Ron，就壞帳費用而言，我們不對特定數字提供指引。今年迄今，我們記錄的壞帳費用約為 27.5 萬美元。這大約是營收的 10 個基點，且作為營收百分比大致與去年記錄的壞帳費用一致。從歷史回顧來看，這略低於我們的長期平均；我們更接近 20 到 25 個基點。但如 Joey 所提到，投資組合狀況非常好，我們不預期會在這些水準上出現任何重大偏離。

Our next question comes from Linda Tsai from Jefferies.

我們的下一個問題來自 Jefferies 的 Linda Tsai。

Do you feel like the group of retailers that can do development on balance sheet is limited and presumably the ones doing this now have had previous experience?

你是否覺得，能在資產負債表上自行開發的零售商群體是有限的，而且推測目前在做的那些零售商應該都有過往經驗？

It's a great question, Linda. It's not easy to transition to self-development if you've historically relied upon merchant builders. So retailers, I'll tell you, I'll focus on the retailers that are in our sandbox, the large national operators generally super regional operators. Transitioning to an internal model, while it sounds like an easy solution, if they have the balance sheet and the liquidity to do it is very difficult. Not only do you need to have the entitlement, the development, the construction expertise, the permitting expertise it's a major overhaul. And so what we're seeing is retailers who had some, let's call it, a fractional portion of their net new store development that we're on balance sheet, increasing that. Hence, Tractor Supply of Willy, I believe, has signaled the same, Walmart, Home Depot, with their net new store growth, inclusive of Sam's Club, we'll do it on balance sheet.

這是個很好的問題，Linda。如果你過去一直依賴商業建築商（merchant builders），要轉型為自建並不容易。就零售商而言，我會聚焦在我們的「沙盒」裡——大型全國性營運商，通常是超區域性營運商。轉向內部模式，雖然聽起來像是簡單的解方，但即使他們有資產負債表與流動性去做，實際上非常困難。你不僅需要取得用地許可（entitlement）、開發、施工專業，還需要申請許可（permitting）的專業，這是一個重大的改造。因此，我們看到的是，那些原本把部分淨新增門店開發放在資產負債表上的零售商，正在提高這個比例。因此，Tractor Supply 的 Willy，我相信也釋出相同訊號；Walmart、Home Depot 在其淨新增門店成長（包含 Sam's Club）方面，也會在資產負債表上自行開發。

The real challenge is for retailers that historically didn't have that self-development experience on balance sheet, how they move that needle forward with net new store growth. That is -- that's a real challenge. That's a gaping hole in this market. I haven't heard a solution yet for it, but we continue to listen and frankly, propose solutions that will hopefully get their pipelines ramped back up. But it's -- like as I mentioned earlier, it's a daily conversation and very topical.

真正的挑戰在於，那些歷來沒有在資產負債表上自建經驗的零售商，要如何在淨新增門店成長上把這個指標往前推。那是——那是一個真正的挑戰。這是這個市場的一個巨大缺口。我還沒聽到任何解決方案，但我們會持續傾聽，坦白說，也提出解決方案，希望能讓他們的管線重新加速。但這——如我先前提到的，這是每天都在談、而且非常熱門的議題。

And then it seems like you're seeing more of an inflection point in cap rate expansion given the stress you're seeing today, would you expect the spread between acquisition cap rates and your cost of capital to increase as you look forward to next year?

另外，鑑於你們今天看到的壓力，似乎你們看到資本化率擴張出現更多拐點；展望明年，當你們往前看時，你是否預期收購資本化率與你們資金成本之間的利差會擴大？

I hope so. I hope our cost of capital goes down, and I hope cap rates gap out. I can only tell you what we're seeing in about that 70-day period, and that's why I've been very clear about Q3. We're just starting to build Q4 right now. Again, we see more sellers, institutions, retailers, one-off developers, you name it, come across the line and say, "All right, we're ready to do something here. Heading into 2024, I wish I had my crystal ball and I could make those predictions. But look, this is a volatile environment. But what we've seen year-to-date is 67 to 6.8%. And what I've telegraphed already in Q3 is a larger volume number and a higher yield. Q4, ask me in about 60 days, and we'll have full clarity.

我希望如此。我希望我們的資金成本下降，也希望資本化率的差距拉大。我只能告訴你我們在大約 70 天期間看到的情況，這也是我為什麼對 Q3 講得非常清楚。我們現在才剛開始建立 Q4。再次強調，我們看到更多賣方——機構、零售商、單一開發商等等——跨過那條線說：「好吧，我們準備在這裡做點事情了。」進入 2024 年，我希望我有水晶球可以做出那些預測。但你看，這是一個波動的環境。不過我們今年迄今看到的是 6.7% 到 6.8%。而我在 Q3 已經傳達的是更大的成交量與更高的收益率。至於 Q4，60 天後再問我，我們就會有完全的清晰度。

That concludes our question-and-answer session. I would now like to turn the conference over to Joey Agree for any closing remarks.

問答環節到此結束。我現在想把電話會議交回給 Joey Agree，請他做任何結語。

Well, thank you, everybody, for joining us. I hope you enjoy the rest of your summer, and we look forward to seeing everybody in the upcoming conference season. Thanks again.

好的，謝謝各位今天加入。我希望大家享受接下來的夏日時光，我們也期待在即將到來的會議季與各位見面。再次感謝。

The conference has now concluded. Thank you, everybody, for attending today's presentation. You may now disconnect.

本次電話會議已結束。感謝各位參加今天的簡報。您現在可以掛線。