Agree Realty Corp (ADC) 2024 Q4 法說會逐字稿

Good morning and welcome to the Agree Realty fourth-quarter 2024 conference call. (Operator Instructions)

早安，歡迎參加 Agree Realty 2024 年第四季電話會議。（操作員指示）

Note this event is being recorded. I would now like to turn the conference over to Reuben Treatman, Senior Director of Corporate Finance. Please go ahead, Reuben.

請注意，此事件正在被記錄。現在，我想將會議交給公司財務高級總監 Reuben Treatman。請繼續，魯本。

Thank you. Good morning, everyone, and thank you for joining us for Agree Realty's fourth-quarter 2024 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.

謝謝。大家早安，感謝您參加 Agree Realty 2024 年第四季財報電話會議。在將電話轉給喬伊和彼得討論本季的業績之前，讓我先講一下警告語。

Please note that during this call, we will make certain statements that may be considered forward-looking under Federal Securities Law, including statements related to our 2025 guidance. 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 discussion of various risks and uncertainties underlying our forward-looking statements.

請注意，在本次電話會議中，我們將做出某些可能根據聯邦證券法被視為前瞻性的聲明，包括與我們 2025 年指引相關的聲明。由於多種原因，我們的實際結果可能與任何前瞻性陳述中討論的問題有很大差異。請參閱昨天的收益報告和我們向美國證券交易委員會提交的文件，包括我們最新的 10-K 表年度報告，以了解我們前瞻性陳述所涉及的各種風險和不確定性。

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 our historical non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release website and SEC filings.

此外，我們也討論了非公認會計準則財務指標，包括核心營運資金或核心 FFO、調整後營運資金或 AFFO 以及淨債務與經常性 EBITDA 比率。我們的歷史非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳可以在我們的收益發佈網站和 SEC 文件中找到。

I'll now turn the call over to Joey.

我現在將電話轉給喬伊。

Thanks, Reuben. And thank you, all, for joining us this morning.

謝謝，魯本。感謝大家今天上午加入我們。

I'm very pleased with our performance in 2024 as we maintained our strategic discipline through a year of significant market volatility. Approximately 16 months ago, we introduced our do-nothing scenario, demonstrating that even in the absence of conditions that facilitated external growth, we can deliver meaningful AFFO per share growth.

我對我們 2024 年的表現非常滿意，因為我們在市場劇烈波動的一年裡保持了戰略紀律。大約 16 個月前，我們推出了無所作為的情景，表明即使在缺乏促進外部成長的條件的情況下，我們也可以實現有意義的每股 AFFO 成長。

We resisted the temptation to move up the risk curve or deviate from our core investment strategy. Instead, we remain steadfast in our commitment to investing in the strongest retailers were superior risk-adjusted returns and focused on our objective of being a valued partner to the largest retailers in the country. Quite simply, our disciplined paid off.

我們抵制了提高風險曲線或偏離核心投資策略的誘惑。相反，我們堅定不移地致力於投資最強大的零售商，獲得卓越的風險調整回報，並專注於成為國內最大零售商的寶貴合作夥伴的目標。很簡單，我們的紀律得到了回報。

As the market shifted, we quickly capitalize on opportunities and proactively strengthened our fortress balance sheet, decisively pre-equitizing with $1.1 billion of forward equity during the year, including $423 million in the fourth quarter alone. We concluded 2024 with over $2 billion of liquidity, including $920 million of outstanding forward equity. Paired with no material debt maturities until 2028, our balance sheet management philosophy has put us at a tremendous position to execute.

隨著市場的變化，我們迅速抓住機遇，積極加強我們的資產負債表，果斷地在年內預先註資 11 億美元，其中僅第四季度就達 4.23 億美元。截至 2024 年，我們的流動資金超過 20 億美元，其中包括 9.2 億美元的未償還遠期股權。加上 2028 年之前沒有重大債務到期，我們的資產負債表管理理念使我們處於非常有利的執行地位。

As we enter 2025, we find ourselves, once again, navigating a volatile, higher interest rate environment. This underscores the importance of our disciplined and prudent approach to both capital allocation and capital raising. By proactively fortifying our balance sheet last year, we provided ourselves with ample liquidity to execute on this year's investment guidance without the need for additional equity capital. At year end, leverage stood at just 3.3 times pro forma net debt to recurring EBITDA. We can deploy over $1.5 billion this year, while staying within our targeted leverage range of 4 to 5 times net debt to EBITDA without raising any additional equity.

進入 2025 年，我們再次發現自己正處於一個動盪且利率較高的環境中。這強調了我們在資本配置和融資方面採取嚴謹和審慎態度的重要性。透過去年積極加強我們的資產負債表，我們為自己提供了充足的流動性來執行今年的投資指導，而無需額外的股本。截至年底，槓桿率僅為預期淨負債與經常性 EBITDA 比率的 3.3 倍。我們今年可以部署超過 15 億美元，同時保持在淨債務與 EBITDA 比率 4 至 5 倍的目標槓桿範圍內，而無需籌集任何額外股本。

I would note that we've had a very strong January to start the year and remain extremely confident in our ability to invest between $1.1 billion and $1.3 billion in 2025 across all three external growth platforms. It could, in fact, turn out to be conservative. So, we are committing to updating the market in regular courses we gave incremental visibility. This outlook supported by a fortress balance sheet and combined with our best-in-class portfolio, gives us conviction in achieving our AFFO per share guidance of $4.26 to $4.30 for the full year 2025. This represents approximately 3.5% year-over-year growth in the mid-point.

我想指出的是，我們在一月份的業績非常強勁，我們仍然非常有信心在 2025 年向所有三個外部成長平台投資 11 億至 13 億美元。事實上，它可能變得保守了。因此，我們致力於定期更新市場，以提供逐步的知名度。這種前景得到了穩健的資產負債表的支持，再加上我們一流的投資組合，使我們有信心在 2025 年全年實現每股 AFFO 4.26 美元至 4.30 美元的預期。這意味著中期同比增長約 3.5%。

I would note that given our significant and forward equity position, this includes assumptions for dilution via the treasury stock method if the stock continues to trade in the 70 plus range, I have repeatedly said that I don't care about a penny or two of earnings in any given year due to accounting methodologies, but more importantly, value of the balance sheet flexibility enabled by forward equity and other risk mitigation tools. Peter will provide more details on our guidance momentarily.

我要指出的是，鑑於我們的重要和遠期股權地位，這包括如果股票繼續在 70 以上的範圍內交易，通過庫存股方法進行稀釋的假設，我曾多次說過，由於會計方法，我不在乎任何一年的一兩分錢收益，但更重要的是，遠期股權和其他風險緩解工具所帶來的資產負債表靈活性表的價值。彼得將立即提供有關我們指導的更多詳細資訊。

Turning to our three external growth platforms we set out last year to further enhance and deepen our relationships with our core retailers, I'm pleased to report this (inaudible) led by Craig Erlich, our Chief Growth Officer, was a success.

談到我們去年為進一步加強和深化與核心零售商的關係而設立的三個外部增長平台，我很高興地報告，由我們的首席增長官 Craig Erlich 領導的這個（聽不清）平台取得了成功。

Today, our retail partners truly understand the value proposition of partnering with Agree Realty. We are a one-stop shop for acquisitions, development and developer funding solutions. This unique value proposition is unmatched in the industry. Our private peers don't have the liquidity, cost or access to capital. While our public peers lack the real estate development and operational capabilities ingrained in our organizations.

今天，我們的零售合作夥伴真正了解與 Agree Realty 合作的價值主張。我們是提供收購、開發和開發商融資解決方案的一站式商店。這獨特的價值主張在業界是無與倫比的。我們的私人同業沒有流動性、成本或資本獲取管道。而我們的公眾同行則缺乏我們組織所具備的房地產開發和營運能力。

For the fourth quarter, we invested approximately $371,000,127 high quality retail net lease properties across all three platforms, this include the acquisition of 98 assets for over $341 million. The properties acquired during the quarter, will be used to leading operators in the auto parts, off-price, farm and rural supply, home improvement, tire and auto service as well as crafts and novelties sectors.

第四季度，我們在三個平台上投資了約 371,000,127 美元的優質零售淨租賃物業，其中包括以超過 3.41 億美元收購 98 項資產。本季度收購的資產將用於汽車零件、折扣商品、農場和農村供應、家居裝修、輪胎和汽車服務以及工藝品和新奇物品領域的領先營運商。

The fourth quarter mark both the highest volume and highest quality quarter of the year, evidenced by the longest weighted average lease term, as well as the highest investment grade and ground lease percentage of any quarter in 2024. Notable transactions included a Walmart and Home Depot ground lease, as well as a sale leaseback of the top relationship tenants with which we enjoy a very strong relationship.

第四季是全年交易量最高、品質最高的季度，其加權平均租賃期限最長，投資等級和土地租賃百分比也是 2024 年各季度中最高的。值得注意的交易包括沃爾瑪和家得寶的土地租賃，以及與我們保持著非常牢固關係的頂級關係租戶的售後回租。

The acquired properties at a weighted average cap rate of 7.3% and a weighted average lease term of 12.3 years. Approximately, 10.5% of annualized base rents acquired were derived from ground lease assets, while investment-grade retailers accounted for over 73% of the annualized base rents acquired.

所收購物業的加權平均資本化率為7.3%，加權平均租賃期間為12.3年。約有 10.5% 的年度化基本租金來自土地租賃資產，而投資等級零售商佔年度化基本租金的 73% 以上。

For the full year 2024, we invested $951 million in 282 retail net lease properties, spanning 45 states and 28 retail sectors. Approximately $867 million of our investment activity originated from our acquisition platform. The acquisitions were completed at a weighted average cap rate of 7.5% and had a weighted average lease term of 10.4 years, with roughly two-thirds of rents coming from investment grade retailers. As a reminder, we do not impute credit ratings for non-rated retailers.

2024 年全年，我們在 282 處零售淨租賃物業投資了 9.51 億美元，遍佈 45 個州和 28 個零售業。我們的投資活動中約有 8.67 億美元來自我們的收購平台。此次收購的加權平均資本化率為 7.5%，加權平均租賃期限為 10.4 年，其中約三分之二的租金來自投資等級零售商。提醒一下，我們不會對未評級的零售商進行信用評級。

Switching to our development in DSP platforms. We had a record year with 41 projects either completed or under construction, representing approximately $180 million of committed capital. We're continuing to see increased activity across both platforms as we work with our retail partners to help them execute their store growth plans and provide struggling developers with liquidity to fund their pipeline.

轉向我們在 DSP 平台上的開發。今年，我們創下了紀錄，共有 41 個項目竣工或在建，承諾資本約為 1.8 億美元。隨著我們與零售合作夥伴合作，幫助他們執行商店成長計劃，並為陷入困境的開發商提供流動資金以資助他們的管道，我們繼續看到這兩個平台的活動不斷增加。

During the fourth quarter, we commenced a new development and DFP projects with total anticipated costs of approximately $45 million. For new projects or with leading retailers, including all the T.J. Maxx and Marshalls, Hobby Lobby, Boot Barn, Sherwin-Williams and Starbucks. Construction continued during the quarter on 14 projects with anticipated costs totaling approximately $67 million. Lastly, we completed construction on 9 projects through the quarter with total costs of $31 million.

第四季度，我們啟動了新的開發和 DFP 項目，預計總成本約為 4500 萬美元。對於新項目或與領先的零售商合作，包括所有 T.J. Maxx 和 Marshalls、Hobby Lobby、Boot Barn、Sherwin-Williams 和星巴克。本季繼續有 14 個項目進行施工，預計總成本約為 6,700 萬美元。最後，我們本季完成了 9 個項目的建設，總成本為 3,100 萬美元。

On the asset management front, we executed leases, extensions or options and over 530,000 square feet of gross leasable area during the fourth quarter. For the full year 2024, we executed new leases, extensions or options on approximately 2 million square feet of gross leasable area. We are very well-positioned for 2025 with only 41 leases or 120 basis point of annualized base rents maturing.

在資產管理方面，我們在第四季度執行了租賃、延期或選擇權，總可出租面積超過 53 萬平方英尺。2024 年全年，我們在約 200 萬平方英尺的總可出租面積上執行了新的租約、延期或選擇權。我們對 2025 年的定位非常有利，只有 41 份租約或 120 個基點的年化基本租金到期。

During the year, we, opportunistically, dispose of 26 properties for total gross proceeds of over $98 million, including 8 properties that were sold during the fourth quarter. The weighted average cap rate for dispositions in 2024 was 6.7%.

在這一年中，我們抓住機會處置了 26 處房產，總收益超過 9,800 萬美元，其中包括第四季度出售的 8 處房產。2024 年處分的加權平均資本化率為 6.7%。

At year end, our best-in-class portfolio include 2,370 properties and spans all 50 states. The portfolio includes 229 ground leases, comprising nearly 11% of annualized base rents. Our investment grade exposure year-end stood at 68.2% and occupancy remained strong at 99.6%.

截至年底，我們一流的投資組合包括 2,370 處房產，遍佈全美 50 個州。該投資組合包括 229 份土地租賃合同，佔年化基本租金的近 11%。我們的投資等級風險敞口年底為 68.2%，入住率仍維持在 99.6% 的強勁水準。

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

說完這些，我將把電話交給彼得，然後我們就可以開始提問了。

Thank you, Joey.

謝謝你，喬伊。

Starting with the balance sheet. We had a very active year in the capital markets, raising approximately $1.1 billion of forward equity, upsizing our revolving credit facility to $1.25 billion and completed a $450 million bond offering. We also entered into $200 million of forward starting swaps during the year, effectively fixing the base rate for contemplated 10-year unsecured debt issuance at approximately 3.7%. Combined with our outstanding forward equity of $920 million, this provides us with $1.1 billion of hedge capital to fund investment activity in 2025.

從資產負債表開始。今年我們在資本市場表現非常活躍，籌集了約 11 億美元的遠期股權，將循環信貸額度提高到 12.5 億美元，並完成了 4.5 億美元的債券發行。我們還在年內簽訂了 2 億美元的遠期起始掉期協議，有效地將預期發行的 10 年期無擔保債務的基準利率固定在 3.7% 左右。加上我們 9.2 億美元的未償還遠期股本，這將為我們 2025 年的投資活動提供 11 億美元的對沖資本。

During the fourth quarter, we sold $5.8 million shares of forward equity via our ATM program and an overnight offering in October for anticipated net proceeds of approximately $423 million. We also settled 3.7 million shares of forward equity proceeds of over $228 million. As of year-end, we had approximately 12.9 million shares of outstanding forward equity, which as mentioned, are anticipated to raise net proceeds of $920 million upon settlement. We are contractually obligated to settle 12.7 million of those shares in 2025.

在第四季度，我們透過 ATM 計畫和 10 月的隔夜發行出售了價值 580 萬美元的遠期股票，預計淨收益約為 4.23 億美元。我們也結算了 370 萬股遠期股權收益，總額超過 2.28 億美元。截至年底，我們擁有約 1,290 萬股未償還遠期股權，如前所述，預計結算後將籌集 9.2 億美元的淨收益。根據合約義務，我們有義務在 2025 年結算其中的 1,270 萬股。

Additionally, as discussed on past calls, we recast and expanded our revolving credit facility in August. The facility was increased from $1 billion to $1.25 billion and includes an accordion option that allows us to request additional lender commitments up to a total of $2 billion. We also extended the term of the facility to 2029, including extension options and reduced our borrowing costs by 5 basis points based on our current credit ratings and leverage ratio.

此外，正如過去電話會議中所討論的那樣，我們在八月重新制定並擴大了循環信貸額度。該貸款額度從 10 億美元增加到 12.5 億美元，並包含一個可折疊選項，允許我們請求貸款方額外承諾，總額最高可達 20 億美元。我們還將貸款期限延長至 2029 年（包括延期選擇權），並根據我們目前的信用評級和槓桿率將借貸成本降低了 5 個基點。

As of December 31, we have over $2 billion of liquidity, including $1.1 billion of availability on our revolving credit facility, the previously mentioned outstanding forward equity and cash on hand. Pro forma for the settlement of our outstanding forward equity, net debt to recurring EBITDA was approximately 3.3 times, which marks the lowest level in two years. Excluding the impact of unsettled forward equity, our net debt to recurring EBITDA was 4.9 times. Our total debt to enterprise value was approximately 27%, while our fixed charge coverage ratio, which includes principal amortization, and the preferred dividend is very healthy at 4.4 times.

截至 12 月 31 日，我們擁有超過 20 億美元的流動資金，包括 11 億美元的循環信貸額度、前面提到的未償還遠期股權和現金。就我們未償還遠期股權的結算而言，淨負債與經常性 EBITDA 的比率約為 3.3 倍，這是兩年來的最低水準。排除未結算遠選擇權益的影響，我們的淨負債與經常性 EBITDA 比率為 4.9 倍。我們的總負債與企業價值之比約為 27%，而我們的固定費用覆蓋率（包括本金攤銷和優先股股息）非常健康，為 4.4 倍。

Our floating rate exposure remains minimal, with $158 million outstanding on the revolver at year end. And as Joey mentioned, we have no material debt maturities until 2028. We are in excellent position to execute our investment guidance this year without having to raise any additional equity capital. The strength of our fortress balance sheet was further validated by the credit rating upgrade we received in July. S&P upgraded our issuer rating to BBB+ s from BBB with a stable outlook, which is a testament to the prudent and disciplined manner in which we continue to grow the company.

我們的浮動利率曝險仍然很小，截至年底，循環信貸未償還金額為 1.58 億美元。正如喬伊所提到的，我們在 2028 年之前沒有重大債務到期。我們今年完全有能力執行我們的投資指導，而無需籌集任何額外的股本。7 月我們獲得的信用評等升級進一步證明了我們穩健的資產負債表的實力。標準普爾將我們的發行人評級從 BBB 上調至 BBB+，展望穩定，這證明了我們繼續以審慎和嚴謹的方式發展公司。

Moving to earnings. Core FFO per share was $1.02 for the fourth quarter and $4.08 for full year 2024, representing 3.5% and 3.7% year-over-year increases, respectively. AFFO per share was $1.4 for the fourth quarter, representing a 4.7% year-over-year increase. For the full year, AFFO per share was $4.14, which reflects the high end of our guidance range and 4.6% year-over-year growth.

轉向收益。2024 年第四季每股核心 FFO 為 1.02 美元，全年每股核心 FFO 為 4.08 美元，分別年增 3.5% 和 3.7%。第四季每股 AFFO 為 1.4 美元，較去年同期成長 4.7%。全年每股 AFFO 為 4.14 美元，反映了我們指導範圍的高端和 4.6% 的同比增長。

As Joey mentioned, we issued initial AFFO per share guidance of $4.26 to $4.30 for full year 2025, representing approximately 3.5% year-over-year growth at the midpoint. We provide parameters on several other inputs in our earnings release, including investment and disposition volume, general and administrative expenses, non-reimbursable real estate expenses, as well as income tax and other tax expenses.

正如喬伊所提到的，我們發布了 2025 年全年每股 AFFO 的初步指導價，為 4.26 美元至 4.30 美元，中間值年增長約 3.5%。我們在收益報告中提供了其他幾個輸入的參數，包括投資和處置量、一般和行政費用、不可報銷的房地產費用以及所得稅和其他稅費。

In addition to those parameters, our earnings guidance for 2025 includes anticipated treasury stock method dilution related to our outstanding forward equity. As a reminder, if ADC stock trades above the net price or outstanding forward equity offering, the dilutive impact of unsettled shares must be included in our share count in accordance with the Treasury Stock Method. Provided that our stock continues to trade near current levels, we anticipate that Treasury Stock Method dilution will have an impact of roughly 0.1p to 0.2p on full year 2025 AFFO per share. That said, the impact could be higher if our stock price moved materially above current levels.

除了這些參數之外，我們對 2025 年的獲利預測還包括與我們未償還遠期股權相關的預期庫存股法稀釋。提醒一下，如果 ADC 股票交易價格高於淨價或未償還遠期股票發行價，則未結算股票的稀釋影響必須按照庫存股方法計入我們的股票數量。假設我們的股票繼續在當前水準附近交易，我們預計庫存股法稀釋將對 2025 年全年每股 AFFO 產生約 0.1 便士至 0.2 便士的影響。也就是說，如果我們的股價大幅高於目前水平，影響可能會更大。

Our consistent and reliable earnings growth continues to support a growing and well-covered dividend. During the fourth quarter, we declared monthly cash dividends of $0.253 per common share for each of October, November and December. The monthly dividend equates to an annualized dividend of almost $3.04 per share and represents a 2.4% year-over-year increase. Our dividend is very well covered with a payout ratio of 73% of AFFO per share for the fourth quarter.

我們持續可靠的獲利成長將繼續支持不斷增長且覆蓋範圍廣泛的股息。在第四季度，我們宣布 10 月、11 月和 12 月每月派發每股 0.253 美元的現金股利。每月股息相當於每股近 3.04 美元的年度股息，年增 2.4%。我們的股利覆蓋率非常好，第四季每股 AFFO 的股利支付率為 73%。

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

說完這些，我想把電話轉回給喬伊。

Thank you, Peter. Operator, at this time, let's open it up for questions.

謝謝你，彼得。接線員，現在讓我們開始提問。

(Operator Instructions)

（操作員指示）

Ki Bin Kim, Truist Securities.

Ki Bin Kim，Truist 證券公司。

Thank you. Good morning.

謝謝。早安.

Hey, Joey, you provided a interesting case study on one of your ground lease renewals in your presentation. I was just curious, I'm sure that's not indicative of their whole ground lease portfolio. But typically, when these ground leases come due, I guess, is it more of a typical lease renewal where you get a little of a bump and that (inaudible) was a more of a one-off example? Or do you think there's significant mark-to-market upside?

嘿，喬伊，你在演講中提供了一個關於你的一份土地租賃續約的有趣案例研究。我只是好奇，我確信這並不代表他們的整個土地租賃組合。但通常情況下，當這些土地租賃到期時，我想，這是否更像是一次典型的租賃續約，你會得到一點小好處，而這（聽不清楚）更像是一個一次性的例子？或者您認為以市價計算有顯著的上漲空間嗎？

Morning, Ki Bin.

早上好，基斌。

There's definitely a significant mark-to-market upside there. The case study that you're referring to, the tenant had no remaining options, initially offered to extend and effectively a five-year option at a flat rental rate. We had inbounds north of either 180,000 starting year one and the tenant was about 105, I believe. We told the tenant, if you want to stay, you're going to sign a new 15-year ground lease with options, marketing that to market, and that's the reference the upside that you're talking about. That's indicative of a naked lease with no options in the ground lease space.

那裡肯定存在顯著的按市價計價的上漲空間。在您所提到的案例研究中，租戶沒有剩餘的選擇，最初提供的是續租，實際上是以固定租金率續租五年。從第一年開始，我們的入境遊客數量就已超過 18 萬人，我相信租戶數量約為 105 人。我們告訴租戶，如果你想留下來，你必須簽署一份新的 15 年土地租賃合同，其中包含選擇權，並將其推向市場，這就是你所說的好處。這表明這是一項裸租賃，在土地租賃領域沒有任何選擇。

Now, that isn't a regular occurrence for us, but it's one of the -- it's an example, it's a prime example of the upside if and when we were required to retain control of the building.

現在，這對我們來說並不常見，但它是其中之一——它是一個例子，它是如果我們被要求保留對建築物的控制權時的一個典型例子。

And on your forward equity, you have about $900 million of forward equity out there. I think when you look at it versus history, you pay a little bit higher than what you've had. So I was just curious, high level, how do you balance on the forward equity you have out there? Because you are paying the dividend on it, interest expense, but is it still a cash drag on or is it that you see a larger acquisition opportunities coming up sooner?

就您的遠距權益而言，您擁有約 9 億美元的遠選擇權益。我認為，當你與歷史進行比較時，你現在支付的費用會比過去高一點。所以我只是很好奇，高層，您如何平衡您所擁有的遠距離權益？因為您要支付股息和利息費用，但這是否仍然會拖累現金，還是您認為更大的收購機會很快就會出現？

For the question of the expense of the forward equity, the interesting construct or factor was for equity is we actually do pay the dividend. Historically, when rates were at zero or very low, you weren't earning any interest/ Today, the forward equity would be with rates being higher, effectively, the interest net out the dividend, maybe to that to net of the last 10, 15 basis points inclusive fees.

對於遠期股權費用的問題，有趣的構造或因素是，對於股權而言，我們確實支付了股息。從歷史上看，當利率為零或非常低時，您不會獲得任何利息/今天，遠期權益將隨著利率的升高而增加，實際上，利息扣除股息，可能是扣除最後 10、15 個基點（包括費用）的淨額。

So there's really no cash read before the Fed lowered rates most recent and the Fed lowered rates, there's actually a positive spread to the forward equity that the interest expense were that we are narrowing versus relative to the dividend that we're paying. And so, there really is a de minimis if any expense to carrying that forward equity today, which is very different than historically.

因此，在聯準會最近一次降低利率之前，實際上沒有現金讀數，而聯準會降低利率，實際上與遠期股權存在正向利差，即利息支出相對於我們支付的股息而言正在縮小。因此，如果今天將這些股權結轉下去，確實存在最低限度的費用，這與歷史上的情況大不相同。

In other areas of the Treasury Method of dilution, which we talked about in the prepared remarks, about the accounting methodology, but not cash. In terms of how much forward equity, it's really a function of sources and uses. And then, where do we think our macro -- the macro-overlays upon that. And so, you'll see us and you have seen us historically carry ample forward equity to source or to utilize for investment activities. Obviously, was up approximately $920 million in forward equity were locked and loaded here, and we're prepared to execute on our guidance or above for 2025.

在財政部稀釋法的其他領域，我們在準備好的評論中討論了會計方法，但不是現金。就遠期股權的數量而言，它實際上取決於來源和用途。然後，我們認為我們的宏觀——宏觀覆蓋於此。因此，您會看到我們，並且您已經看到我們歷史上結轉了充足的股權來獲取或用於投資活動。顯然，我們已鎖定並加載了約 9.2 億美元的遠期股權，我們準備在 2025 年實現或超過我們的預期。

Thank you.

謝謝。

Smedes Rose, Citigroup.

花旗集團的斯梅德斯‧羅斯 (Smedes Rose)。

Hi, good morning. Thanks.

嗨，早安。謝謝。

I just wanted to ask you sort of if anything, you can see kind of a continued slight downward bias in your acquisition cap rates. But offsetting that, we see continued upward movement in the 10-year, which I think it's now at about 46. So, just want to look forward, do you think seller expectations even for higher quality buckets of assets that you decided to build, or you need to change? And maybe could you share what you're seeing thus far in the first quarter?

我只是想問一下，您是否發現收購上限率持續略有下降。但與此相抵消的是，我們看到 10 年期債券殖利率持續上升，我認為現在約為 46。所以，只是想展望未來，您是否認為賣家對您決定要建立的更高品質的資產的期望，或者您需要改變？您能否分享一下第一季迄今為止所看到的情況？

It's a great question, Smedes.

這是一個很好的問題，Smedes。

I think part of the problem this morning's like today where you have a 10 basis points like the last kind of looked in the 10-year treasury reacting to CPI before it came out. So, we have 45- or 60- days swings with 10% move in the base rate for effectively the world, the 10-year US Treasury, which has become normalized in everybody's minds, that includes net lease sellers. And so, the 10-year vacillating between 425 and 475, I'm just using broad ranges here, doesn't really seem to impact sellers' expectations of pricing. Now, we've been very careful and very prudent in how we will continue to be and how we deploy capital at appropriate spreads, and frankly, how we gauge asset level pricing in this environment.

我認為今天早上的問題部分在於，在 CPI 數據公佈之前，10 年期公債殖利率出現了 10 個基點的波動。因此，我們有 45 天或 60 天的波動，而全球 10 年期美國國債的基準利率實際上會變動 10%，這在包括淨租賃賣家在內的每個人心中都已變得正常。因此，10 年期在 425 和 475 之間波動（我在這裡只是使用大致的範圍），似乎並沒有真正影響賣家對定價的預期。現在，我們非常謹慎和審慎地考慮如何繼續以適當的利差部署資本，坦白說，我們如何衡量這種環境下的資產水平定價。

That said, we're not going to come out of the gates and below $1 billion in acquisitions in the first quarter in this volatile environment. We'll be disciplined, we'll continue to manage those uses of capital. But the volatility certainly doesn't help reset pricing expectations in such a large fragmented and frankly predominantly individually owned space.

話雖如此，在這種動盪的環境下，我們第一季的收購金額不會低於 10 億美元。我們將嚴格遵守紀律，繼續管理資本的使用。但在如此龐大、分散且坦白說主要由個人擁有的空間中，波動肯定無助於重置定價預期。

What we are seeing is individual cases of distressed, usually non-asset level distress in their assets, potentially, where there were partnerships need proceeds, for individuals need proceeds from the sale or disposition of their net lease assets. But again, the volatility here really doesn't serve anybody that's have stabilized pricing.

我們看到的是個別陷入困境的案例，通常是非資產層面的資產困境，潛在的情況是，合夥企業需要收益，個人需要透過出售或處置其淨租賃資產來獲得收益。但同樣，這裡的波動實際上對任何已經穩定價格的人來說都沒有好處。

Okay. Thank you.

好的。謝謝。

And I just wanted to ask, you mentioned in the past about continuing to take share within the market and it sounds like that's still the case. And I'm just wondering, I mean, there's a lot of discussion around potentially changing the regulatory banks for -- I'm sorry, the regulatory regime, and I guess, for local regional banks. And is there anything there that might make them more competitive that you have on your radar, or do you think it's just kind of from -- you'll continue to compete in a similar environment?

我只是想問一下，您過去曾提到繼續佔領市場份額，聽起來情況仍然如此。我只是想知道，有很多關於改變銀行監管制度的討論——對不起，是改變地方區域銀行的監管制度。有什麼因素可能會讓他們更具競爭力，或者您認為這只是一種——您會繼續在類似的環境中競爭？

No, I don't see any regulatory issues that may open up the capacity for banks to lend, but you have a multi-pronged problem as a merchant developer today.

不，我認為沒有任何監管問題可能會開放銀行的貸款能力，但作為商業開發商，您今天面臨著多方面的問題。

One, obviously, the liquidity of construction financing, the availability of debt financing is you're alluding to, the higher the higher construct, the rates on construction loans to lower loan to cost side construction loans, and then effectively from merchant builders in our space. The ability to have some the ability and where they're going to be able to transact at the end of day upon completion.

首先，顯然，建築融資的流動性，債務融資的可用性就是你提到的，建築越高，建築貸款的利率就越高，從而降低貸款成本，然後有效地從我們這個領域的商人建築商那裡獲得建築貸款。擁有某些能力以及在完成後他們將能夠在一天結束時進行交易的能力。

And so, what our developer funding platform continues to do and continues to take share is bridge that gap. With $2 billion in liquidity and a $1.25 billion credit facility and the forward equity position we have, we have visibility into our cost of capital and we're able to provide solutions for retailers and developers to bring projects to fruition that can still pencil. And you combine it with rising construction costs and tariffs on aluminum and steel and all these other things that are going to continue to challenge construction costs in this country. It's a tremendous solution and that continues to gain share, like you said.

因此，我們的開發者融資平台將繼續做並繼續佔據彌補這一差距的份額。憑藉 20 億美元的流動資金、12.5 億美元的信貸額度以及遠期股權狀況，我們可以清楚地了解資本成本，並能夠為零售商和開發商提供解決方案，使專案得以實現。再加上不斷上漲的建築成本、鋁和鋼的關稅以及所有其他因素，這些都將繼續對這個國家的建築成本構成挑戰。正如您所說，這是一個非常棒的解決方案，而且其市場份額正在擴大。

Okay. Thank you very much.

好的。非常感謝。

Ronald Kamdem, Morgan Stanley.

摩根士丹利的羅納德‧坎登 (Ronald Kamdem)。

Hey, good morning. This is [Jenny] on for Ron. Thanks for taking my question.

嘿，早安。我是 [Jenny]，為 Ron 轉播。感謝您回答我的問題。

I think for us with 6% to 8.2% of IG tenant exposure, like almost reaching all-time high, how does this compare to your long-term expectations? Like, do you anticipate this percentage to increase in the near term based on your acquisition strategy? Thanks.

我認為，對於我們來說，6% 到 8.2% 的 IG 租戶曝光率幾乎達到了歷史最高水平，這與您的長期預期相比如何？例如，根據您的收購策略，您是否預期這個百分比會在短期內增加？謝謝。

So, we always talk about investment grade percentage being a really a proxy for us or an output of our investment strategy. And so, 68.2%, as you mentioned, is near an all-time high, at the same time, we're huge fans of unrated retailers. Again, we delivered improved credit ratings such as Hobby Lobby, Chick-fil-A, Publix, all the elements of those transactions materialize will be there if the pricing makes sense.

因此，我們總是說投資等級百分比實際上是我們的代理或投資策略的產出。因此，正如您所說，68.2% 接近歷史最高水平，同時，我們是未評級零售商的忠實粉絲。再次，我們提高了 Hobby Lobby、Chick-fil-A、Publix 等公司的信用評級，如果定價合理，這些交易實現的所有要素都將存在。

And so, that investment grade exposure was -- I would tell you almost artificially ticked up by institutions loading up on Walgreens and other credit check the proverbial IG boxed that can go away quickly if you're not prudent with your capital allocation and don't see trends with consumer and retail sectors. We're going to focus on the biggest and best retailers in the country, the vast majority of those have investment grade exposure, but there are some sub-investment grade exposure that we're big fans of, Burlington being one that comes to mind, that's a great relationship for.

因此，我想告訴你，投資等級風險敞口幾乎是被機構大量買入沃爾格林和其他信用檢查機構人為抬高的，如果你對資本配置不謹慎，沒有看到消費和零售行業的趨勢，那麼眾所周知的 IG 框很快就會消失。我們將專注於國內最大、最好的零售商，其中絕大多數都具有投資級風險敞口，但也有一些亞投資級風險敞口是我們非常看好的，伯靈頓就是其中之一，這對我們來說是一個很好的關係。

So again, that's really an output of our investment strategy, focusing on our sandbox retailers of the 30 plus minus biggest invest in the country.

所以，這其實是我們投資策略的成果，重點在於國內 30 多家最大的沙盒零售商。

That makes sense. Thanks.

這很有道理。謝謝。

I think the second I want to ask about the transaction volume, like considering the current environment, do you see that transaction volume kind of slowdown in the first quarter or do you see that as kind of trending in line with your expectations. And what are the upside or downside to your $1.2 billion investment pipeline this year. Thank you.

我想第二個問題是關於交易量，考慮到當前的環境，您是否認為第一季的交易量有所放緩，或者您是否認為這種趨勢符合您的預期。您今年的 12 億美元投資有哪些優勢或劣勢？謝謝。

The first quarter is effectively locked and loaded. We've had, as I mentioned in the prepared remarks, again, subject to diligence and closing of a very strong January. Right now, we're sourcing for the second quarter. In terms of forward visibility, everyday changes, every executive order, every piece of data that comes out on the environment. And so, look, the most exciting part about this business to me is that get any given day, any given hour, a new and exciting opportunity can pop up that inures to our pipeline. But we think first quarter is right where we wanted, we're very pleased with it. And second quarter, were focused on right now,

第一季實際上已經準備就緒。正如我在準備好的演講中提到的那樣，我們再次經過勤勉的努力，迎來了一個非常強勁的一月。目前，我們正在為第二季進行採購。就前瞻性而言，每天的變化、每一項行政命令、每一項有關環境的數據。所以，對我來說，這項業務最令人興奮的部分是，在任何一天、任何一小時，都會出現一個新的、令人興奮的機會，適合我們的管道。但我們認為第一季的表現正符合我們的預期，我們對此感到非常滿意。目前我們重點關注的是第二季度，

Okay. Thanks so much.

好的。非常感謝。

Michael Goldsmith, UBS.

瑞銀集團的麥可‧戈德史密斯。

Good morning. Thanks for taking my question.

早安.感謝您回答我的問題。

The auto parts category stepped up as a percentage to the portfolio ABR by 70 basis points and we know you're very thoughtful about what enters your portfolio. So, what is the thesis for auto part to and why auto parts now?

汽車零件類別佔投資組合 ABR 的百分比上升了 70 個基點，我們知道您對進入投資組合的資產非常慎重。那麼，汽車零件的論點是什麼？為什麼現在是汽車零件的論點？

So, specific to that transaction was a portfolio transaction from an institutional seller of over 40 assets for a lease to [naphtha genuine]. That's our first material exposure or semi material exposure to [naphtha genuine]. Obviously, our exposure to O'Reilly and AutoZone is more significant and you can see that in our top tenants.

因此，具體到這筆交易，是來自一家機構賣家的一項投資組合交易，該賣家租賃了超過 40 項資產給[石腦油正品]。這是我們第一次接觸材料或半材料[石腦油正品]。顯然，我們對 O'Reilly 和 AutoZone 的關注度更高，您可以從我們的頂級租戶中看到這一點。

We've talked about auto-parts, O'Reilly had a good print lags. We've talked about auto parts and the construct of average age of cars on the road at 12.7 years of record, still lack of financeability of cars today, just given the interest rate environment. We're going to see now with aluminum and steel. I mean, Ford came out, Bill Ford came out and said these tariffs could destroy the auto industry. Cars today are getting older for record, every record -- a record every day and they need more parts. And so, we continue to love these sales, significantly in the auto parts sector.

我們討論過汽車零件，O'Reilly 的印刷滯後現像很好。我們討論了汽車零件和道路上行駛汽車的平均使用年限，記錄顯示汽車平均使用年限為 12.7 年，考慮到利率環境，今天的汽車仍然缺乏融資能力。我們現在來看看鋁和鋼。我的意思是，福特，比爾福特站出來表示這些關稅可能會摧毀汽車產業。如今的汽車每天都在老化，需要更多的零件。因此，我們繼續看好這些銷售，尤其是在汽車零件領域。

The second piece is the underlying real estate, not only the credit in the business model. These are generally 6,000 to 7,000 square foot rectangles that are paying $11 to $12 per square foot with vinyl floors are concrete floors, no TI or TIA or landlords work amortized into the rental rates or multipurpose boxes. And if that tenant were ever to leave, we've filed bankruptcy and that exercise an option. You have a highly marketable rectangle below replacement cost. And so, it fits right within our wheelhouse, it's top three favorite sector of ours. That's it.

第二塊是底層的房地產，而不僅僅是商業模式中的信用。這些通常是 6,000 到 7,000 平方英尺的矩形，每平方英尺支付 11 到 12 美元，乙烯基地板是混凝土地板，沒有 TI 或 TIA 或房東的工作攤銷到租金或多用途箱中。如果該租戶離開，我們將申請破產並行使選擇權。您有一個低於重置成本且極具市場價值的矩形。因此，它完全符合我們的預期，也是我們最喜歡的三大領域之一。就是這樣。

Got it. Thanks, Joey.

知道了。謝謝，喬伊。

And my follow-up question is just on the expected transaction cadence for the year -- last year, transaction market, it was much slower to start the year and picked up as we move through 2024. You commented that you've had a very strong January, so does that mean the balance through the year should be maybe continue to be back half loaded in terms of acquisitions, but should be more balanced this year relative to last year? And then also should help support some of the earnings growth this year? Thanks.

我的後續問題是關於今年預期的交易節奏——去年，交易市場在年初要慢得多，但隨著 2024 年的到來而回升。您評論說一月份的業績非常強勁，那麼這是否意味著全年的收支平衡在收購方面可能繼續保持一半的水平，但與去年相比今年應該更加平衡？然後也應該有助於支持今年的一些獲利成長？謝謝。

I have no idea, to be frank. I don't know it's going to happen tomorrow, let alone third or fourth quarter of this year. We just started building second quarter. Our average transaction cycle is now down to approximately 66, 67 days on the acquisitions front. We're in a volatile environment, I'm not going to make predictions. That's why we're in the hedge position with the 10-year swap to 3,7 , the $920 million of forward equity.

坦白說，我不知道。我不知道明天會發生什麼，更不用說今年第三季或第四季了。我們剛開始建設第二季。目前，我們的收購平均交易週期已縮短至約 66 至 67 天。我們處在一個動盪的環境中，我不會做出預測。這就是為什麼我們採用 10 年期掉期對沖 3.7 即 9.2 億美元的遠期股權。

I really did wining due to the capital markets this year, to be honest. And so, that war chests is going to allow us to be decisive at times where we see there's opportunities, but we can be patient, and we think there's volatility and underlying pricing should move. But right now, honestly, all we have is visibility into Q1.

說實話，今年我確實因為資本市場而獲利。因此，當我們看到機會時，這些資金將使我們能夠果斷行動，但我們可以保持耐心，我們認為存在波動，並且潛在定價應該會改變。但目前，老實說，我們所能看到的只是第一季的情況。

Thank you very much.

非常感謝。

Rob Stevenson, Janney Capital.

羅布史蒂文森（Rob Stevenson），Janney Capital。

Good morning.

早安.

Joey, can you give an update on Big Lots and how things looked to be playing out there? I think last quarter you had a new tenant revenue for the Manassas, Virginia location. And where are you with Grand Rapids and the other locations these days?

喬伊，你能介紹一下 Big Lots 的最新情況以及那裡的進展嗎？我認為上個季度你們在維吉尼亞州馬納薩斯地區獲得了新的租戶收入。您現在在大急流城和其他地方的情況如何？

Yes. The Big Lots bankruptcy continues to extend on, obviously, Nexus. The original purchase or about a bankruptcy failed the week they were supposed to close. And so, now they're going through another lease option period. This is a multi-month bankruptcy process.

是的。顯然，Big Lots 的破產仍在繼續影響著 Nexus。最初的收購或破產在他們應該結束的那一周失敗了。因此，現在他們正在經歷另一個租賃選擇期。這是一個持續數月的破產過程。

Manassas, we have taken the rent from $8.55 five per square foot to $16 per square foot. That lease is signed and has yet to commence rent. We are working in Cedar Park, Texas, on one of the other ones where we have a high quality tenant, they would like to purchase that lease, but needs approvals that would take that rent from $5 per square foot to $8 per square foot.

馬納薩斯，我們已將租金從每平方英尺 8.55 美元提高到每平方英尺 16 美元。該租約已簽署但尚未開始收取租金。我們正在德州錫達帕克市進行另一項工作，我們有一個高品質的租戶，他們想購買該租約，但需要獲得批准，將租金從每平方英尺 5 美元提高到每平方英尺 8 美元。

We have seen significant interest in the asset use specified here in Michigan, and we're awaiting the results. Frankly, of the lead of these lease options, which continued to be delayed based upon just the bankruptcy, which is kind of runs circles.

我們看到密西根州對所指定的資產使用有濃厚的興趣，我們正在等待結果。坦白說，這些租賃選擇的領先地位僅僅因為破產而被繼續推遲，這有點像是循環。

Okay. That's helpful.

好的。這很有幫助。

And then where is the sale leaseback market sitting today with either your major tenants and others that you want to do business with? Are they looking to do stuff this year? Is it likely that there's going to be a decrease in volumes there? How would you sort of view that, given your recent conversations with current and perspective tenants?

那麼，對於您的主要租戶以及您想要與之開展業務的其他客戶來說，售後回租市場目前處於什麼位置？他們今年想做些什麼嗎？那裡的產量有可能下降嗎？根據您最近與現有租戶和潛在租戶的對話，您如何看待這一點？

So, I mentioned in the prepared remarks we've closed a sale leaseback with another relationship tenants, subject to (inaudible) in confidentiality as a third transaction with that tenant. We've closed already in Q1 with a sale leaseback with another relationship tenant.

因此，我在準備好的發言中提到，我們已經與另一個關係租戶完成了售後回租，但須（聽不清楚）保密，作為與該租戶的第三次交易。我們已經在第一季與另一家關係租戶完成了售後回租交易。

Part of the year progresses, it's really going to be what it was, what the C-suite with the CFO, how they want to capitalize their balance sheet. Generally, these are unsecured issuers who are looking at the unsecured market where they can issue, they're looking at sale leaseback market where they can price. We've had a number of discussions on sale leasebacks, a deep constructure partnerships for retailers that are developing new real estate on their balance sheet.

今年的部分時間將繼續發展，實際情況將會是這樣的，高階主管和財務長會如何利用他們的資產負債表。一般來說，這些都是無擔保發行人，他們正在尋找可以發行債券的無擔保市場，他們正在尋找可以定價的售後回租市場。我們就售後回租進行了多次討論，這是針對正在資產負債表上開發新房地產的零售商建立的深度合作夥伴關係。

Has a lot of interesting conversations happening on. I'll leave it at that. We'll see where they transpire. This morning's print probably with the CPI, at 3% program could change that, frankly, or make it more, frankly, the market more active. And so, they're always comparing cost of capital or comparing our cost of capital to a transaction, I would expect additional sale leaseback activity that are through.

有很多有趣的對話正在發生。我就不多說了。我們將拭目以待它們將如何發生。今天早上公佈的 CPI 數據可能與 3% 的計劃有關，坦白說，這可能會改變這一現狀，或者坦率地說，使市場更加活躍。因此，他們總是比較資本成本或將我們的資本成本與交易進行比較，我預計會有額外的售後回租活動。

Okay. Thank you.

好的。謝謝。

Spenser Allaway, Green Street.

史賓塞‧阿拉維 (Spenser Allaway)，綠街。

Thank you.

謝謝。

And maybe just one on your development segment, just curious if there's been any change in regards to retailers demand to build (inaudible), just given the macro and political backdrop demands. And then as it relates to that, has there been any talk about here around labor shortages and how topical is that right now in your discussion as it relates to development space.

也許只是關於您的開發部分，我只是好奇，考慮到宏觀和政治背景需求，零售商的建設需求是否有任何變化（聽不清楚）。然後就此而言，是否有人討論過勞動力短缺問題，以及這個問題在你們的討論中與發展空間的關係如何。

Our discussions that I've been with, when I say, 5 plus retailers myself from the past 60 days, it all revolves around retailers. And these are the largest retailers in the country wanting to get new stores built and how they do it, whether that's Walmart or a Lowe's or Tractor Supply, O'Reilly, Auto Zone, 7/11, Speedway, these tenants all want to grow.

在過去的 60 天裡，我與 5 多家零售商進行討論，一切都圍繞著零售商。這些都是全國最大的零售商，他們想要建造新店，他們的做法是這樣的，無論是沃爾瑪、勞氏、Tractor Supply、O'Reilly、Auto Zone、7/11、Speedway，這些租戶都希望能發展壯大。

But given the constraints I talked about earlier in the Q&A, there are challenges for their growth. Our three-prong platform and our multi(inaudible) capabilities, plus our balance sheet can be a solution. And so, as I just mentioned on the previous answer, there's a lot of different solutions being discussed. I think we have unique opportunities here, given our capabilities in the organic development front, plus our cost of capital and balance sheet to bridge the gap that's out there today. It potentially be that solution, but it's all subject to the newbuild individual transaction level.

但考慮到我在問答之前談到的限制，他們的成長面臨挑戰。我們的三管齊下的平台和我們的多種（聽不清楚）能力，再加上我們的資產負債表可以成為解決方案。因此，正如我剛才在先前的回答中提到的，有許多不同的解決方案正在被討論。我認為，鑑於我們在有機發展方面的能力，加上我們的資本成本和資產負債表，我們在這裡擁有獨特的機會來彌補目前存在的差距。這可能是解決方案，但一切都取決於新建的個人交易等級。

And then, Spenser, the one common theme that we hear from large retailers today is as opposed to 10 years ago when brick and mortar is dead, today, the store is the hub, not one piece of an omnichannel solution. It is the hub of the omnichannel solution. All retailers today have realized that e-commerce is a significant part of their omnichannel platform. That's basically all of them outside of off price, that they can not send good, skilled people to their home for free and had them return for free 40% via UPS or FedEx. That model doesn't work. And so, driving traffic to the store, and if you don't have a store in that MSA is critical.

然後，史賓塞，我們今天從大型零售商那裡聽到的一個共同主題是，與 10 年前實體店消亡的情況不同，今天，商店是中心，而不是全通路解決方案的一部分。它是全通路解決方案的中心。如今，所有零售商都意識到電子商務是其全通路平台的重要組成部分。這基本上就是除了折扣價之外的所有情況，他們不能免費派遣優秀、熟練的人員到他們家，並讓他們透過 UPS 或 FedEx 免費返回 40%。那個模型不起作用。因此，如果您在 MSA 中沒有商店，那麼吸引客流到商店就至關重要。

So, this is the greatest desire to expand that I've seen for retailers since before the Great Financial Crisis. The challenge is how they do so in this liquidity constrained, elevated construction cost environment. And that's where I think, again, our unique capabilities can come into play, and retailers I mentioned in the prepared remarks, fully appreciate that today because there's no public company in our space with our development capabilities. And there's no private company in our space with the costs or cost of capital and liquidity and balance sheet that we have. So it's us, and us alone, that can provide some of these solutions.

所以，這是自金融危機爆發以來我所見過的零售商最強烈的擴張意願。挑戰在於他們如何在流動性受限、建築成本高漲的環境下做到這一點。我認為，這就是我們的獨特能力可以發揮作用的地方，我在準備好的發言中提到的零售商今天充分認識到了這一點，因為在我們的領域中沒有一家上市公司擁有我們的開發能力。在我們的領域中，沒有一家私人公司擁有與我們同等的資本成本、流動性成本和資產負債表。因此，只有我們才能提供其中的一些解決方案。

Okay, great. Yes, your comments on the financing alternatives and retailer appetite to grow that certainly makes sense. It's labor and labor shortages and immigration policy, obviously, that's at a multiple of hands. And just curious if that has been coming up at all in discussion and if that's going to be potentially deter or delay development, at least as you see it in the pipeline right now.

好的，太好了。是的，您對融資替代方案和零售商成長意願的評論當然很有道理。顯然，勞動力、勞動力短缺和移民政策是多面向因素造成的。我只是好奇這個問題是否在討論中出現過，以及這是否會阻礙或延遲開發，至少正如你現在看到的那樣。

No, that has not come up yet, could come up with we see some mass deportations. But the biggest challenge, again, it's just constructability and construction costs.

不，這還沒有發生，我們可能會看到一些大規模驅逐出境的情況。但最大的挑戰還是在於可建造性和建造成本。

Okay, thank you.

好的，謝謝。

John Kilichowski, Wells Fargo.

約翰‧基利霍夫斯基，富國銀行。

Hi, this is [Cheryl] on behalf of John.

你好，我是 [Cheryl]，代表 John。

I just want to understand what things or concerns have emerged in terms of growth plans for some of your tenants and in light of recent bankruptcies and store closures. Are any of your tenants leading to capitalize on these opportunities given a vacant retail space available.

我只是想了解，鑑於最近的破產和商店關閉事件，你們針對一些租戶的成長計劃出現了哪些問題或擔憂。如果有空置的零售空間，您的任何租戶是否會利用這些機會？

Surely, it's the lack of space that's available.

顯然，這是因為可用空間不足。

We see that in the Party City option where Dollar Tree and (inaudible), I think about 33% of the leases. And so, retailers and we've talked to them and frankly, educated and tell them is if you want new stores, acquiring leases or leases in bankruptcies and effective and efficient means to do so. Now, we're going to put ourselves at a sandwich position.

我們看到，在 Party City 選項中，Dollar Tree 和（聽不清楚）佔了約 33% 的租約。因此，我們與零售商進行了交談，坦率地說，教育並告訴他們，如果想要新店，可以採取有效且高效的手段來獲得租約或破產租約。現在，我們要把自己放在三明治的位置。

They're buying a leasehold and subleasing. That's not what we want to do at the end of the day. But ultimately, retailers have to be creative with their growth, given the constraints in the environment today.

他們正在購買租賃權並轉租。這並不是我們最終想要做的事情。但最終，考慮到當今環境的限制，零售商必須在成長方面發揮創意。

That makes sense. And just one quick follow up on your comment that private players don't have liquidity or access to capital. Can you discuss instances as you've seen any private payers exit the market or are you seeing any opportunities arising from private capital not being a little bit to participate in acquisitions? Thank you.

這很有道理。我只想快速跟進您所說的私人企業缺乏流動性或無法獲得資本的評論。您能否討論一下您所看到的私人付款人退出市場的情況，或者您是否看到私人資本很少參與收購而產生的任何機會？謝謝。

Definitely across all three platforms. The lack of 1031, the capital in this space to the transaction slowdown across commercial real estate, the lack of private capital due to elevated rates, as both at the individual and institutional level. Again, I can't stress enough the fortress balance sheet, the lifting cost of capital is a massive advantage.

絕對跨越所有三個平台。1031 的缺乏，導致該領域的資本減少，商業房地產交易放緩，個人和機構層面的利率上升導致私人資本不足。再次強調，我再怎麼強調堡壘資產負債表，提高資本成本是個巨大的優勢。

Thank you so much.

太感謝了。

Upal Rana, KeyBanc Capital Markets.

Upal Rana，KeyBanc 資本市場。

Great. Thanks for taking my question.

偉大的。感謝您回答我的問題。

Could you guys remind us how much bad debt was embedded into guidance in '24 and how much came to realization last year? And then how much is embedded this year?

你們能否提醒我們 24 年的指導中包含了多少壞賬，以及去年實現了多少壞賬？那麼今年嵌入了多少？

Sure. This is Peter.

當然。這是彼得。

In terms of our guide for 2025, that includes an assumption for 50 basis points of credit loss. And that compares to the roughly 35 basis points of credit loss that we incurred in 2024, which is slightly above our longer-term average. In 2024, our guide also included an assumption for 50 basis points of credit loss. I would say that this year, that 50 basis points allows for a worst-case scenario, if you will, with Big Lots. And in addition to that includes an allowance for other potential credit issues that may arise during the year.

就我們的 2025 年指南而言，其中包括 50 個基點的信用損失假設。相較之下，我們在 2024 年遭受的信用損失約為 35 個基點，略高於我們的長期平均值。2024 年，我們的指南還包括 50 個基點的信用損失假設。我想說，今年，50 個基點可以應付 Big Lots 出現最壞的情況。除此之外，還包括對年內可能出現的其他潛在信貸問題的補貼。

Okay, great. That's helpful.

好的，太好了。這很有幫助。

The other guidance question was, you know, dispositions this year could be a little less than last year. What are your thoughts there and what kind of types of tenants or industries are you targeting for dispositions this year?

另一個指導性問題是，今年的處置量可能比去年少一點。您對此有何想法？今年您針對的租戶類型或產業有哪些？

If we roll back the clock approximately 12, 14, 16 months, 15 months, we've talked about a do-nothing scenario when we came out in January with a leverage neutral $500 million scenario, which included approximately $100 million in dispositions, which we hit, which was effectively driven by capital recycling for low yield assets in Florida. We saw some Subodh ball transactions in Florida, capital flowing into Florida, paying aggressive cap rates, and we took the opportunity to recycle assets there throughout the year. This year, not dispositions will really focus on non-core assets or frankly so and values of property more than we do through all for sale of 2,400 of them for the right price. But it's certainly not a necessary source of capital, given the $2 billion in liquidity that we entered the year with.

如果我們將時鐘回溯到大約 12、14、16 個月或 15 個月前，我們在 1 月份提出了一種不採取任何行動的情景，即槓桿中性的 5 億美元情景，其中包括約 1 億美元的處置，我們達到了這一目標，這實際上是由佛羅裡達州低收益資產的資本循環推動的。我們在佛羅裡達州看到了一些 Subodh 球交易，資本流入佛羅裡達州，支付激進的資本化利率，我們藉此機會全年回收那裡的資產。今年，處置將真正集中在非核心資產上，或者坦白說，財產價值將超過我們透過以合適的價格出售的 2,400 處房產。但考慮到我們今年年初擁有的 20 億美元流動資金，這肯定不是必要的資金來源。

Okay, great. Thank you.

好的，太好了。謝謝。

Linda Tsai, Jefferies.

Linda Tsai，傑富瑞集團。

Hi. When you look across the landscape of retailers, who are you seeing rent coverages improving or deteriorating on the margin versus a year ago?

你好。當您縱觀零售商的情況時，您發現哪些零售商的租金覆蓋率與一年前相比有所提高或下降？

Good morning, Linda.

早安，琳達。

We don't get rent coverage for most of our tenants at the EBITDA store level. It's not coming then in Walmart or O'Reilly or TGX is going to provide at the store level. That's generally situated in the small middle market sale leaseback transaction, but I think we can look across sectors today and see experiential retail, car wash or restaurants. And this isn't obviously really that relevant to our portfolio, but we can see the rent coverages there having challenges given the highly levered balance sheets and at the top line degradation of operators like Top Golf, they report public to [Cali].

在 EBITDA 商店層面，我們沒有為大多數租戶提供租金保障。沃爾瑪 (Walmart)、O'Reilly 或 TGX 不會在商店層面提供該服務。這通常位於小型中型市場售後回租交易中，但我認為我們今天可以縱觀各個行業，看看體驗式零售、洗車或餐廳。這顯然與我們的投資組合沒有太大關係，但我們可以看到，由於資產負債表槓桿率高，租金覆蓋率面臨挑戰，而且像 Top Golf 這樣的運營商的營收下滑，他們向公眾報告[卡利]。

And then what metrics or aspects pushed you to a BBB and how far you from another rating upgrade?

那麼，哪些指標或方面促使您獲得 BBB 評級，以及您距離另一次評級升級還有多遠？

So, BBB+, we've got upgraded to last year. Just honestly, it's just size. The rating agencies, frankly, are fairly slow. S&P in my opinion was two to three years too late to upgrade us to BBB+. So today, we sit at BWA's BBB+.

因此，BBB+，我們已經升級到去年的水平。說實話，這只是尺寸問題。坦白說，評級機構的行動相當緩慢。我認為，標準普爾將我們的評級升級到 BBB+ 晚了兩到三年。所以今天，我們坐在 BWA 的 BBB+ 上。

I think this is the best balance sheet, frankly, probably at all to read them, if not, a top three. We have no material debt maturities until 2028 with a war chest. You comply -- you combine that with our portfolio, the diversity from a geographic tenant and sector perspective, the size of our assets and the cash flows related to them and then just the nature of the recession resistance of our portfolio. And it's pretty difficult to argue against an A minus credit rating.

我認為這是最好的資產負債表，坦白說，可能所有人都讀過，如果不是，那就排在前三名。截至 2028 年，我們沒有任何重大債務到期，並且還有充足的資金。您遵守 - 您將其與我們的投資組合、從地理租戶和行業角度的多樣性、我們的資產規模和與之相關的現金流以及我們的投資組合抵抗衰退的性質相結合。而且，反駁 A- 信用評級是相當困難的。

So it will come in due course, we don't control the timing with either the rating agencies, but it's really just size at this point and they continue to move that barometer, used to be $5 billion, $10 billion and they continue to move that that threshold around.

所以它會在適當的時候到來，我們無法透過評級機構來控制時機，但目前它實際上只是規模，他們會繼續調整這個晴雨表，過去是 50 億美元、100 億美元，他們會繼續調整這個門檻。

Thanks.

謝謝。

Wes Golladay, Baird.

韋斯·戈拉迪，貝爾德。

Hey, good morning, guys.

嘿，大家早安。

Can you talk about how the sandboxes evolving in maybe the future that you no longer do business with, but then conversely, you know, one-stop shops or interest with yet, and you did do a new deal with Napa.

您能否談談沙盒在未來如何發展，也許您不再與之做生意，但相反，您知道，一站式商店或興趣，而且您確實與納帕達成了一項新協議。

Yes, we're -- look, we're always looking at the sandbox. There is nothing static or following retailers, consumer trends, sectorial friends, all of those relevant data points. The evolution of the sandbox, frankly, to get in or out is pretty slow. I mean, we're dealing with the biggest retailers here in the world. But there are retailers such, as I mentioned in the prepared remarks, Boot Barn, which we're a big fan of, which we were actively doing a project with. But the evolution of the sandbox is there, is slow, right? I mean, we are methodically watching the credit profile, consumer trends and all of the relevant data points on, either enter or and or exit the sandbox.

是的，我們——你看，我們一直在關注沙盒。沒有什麼是靜態的或跟隨零售商、消費者趨勢、行業朋友以及所有這些相關數據點。坦白說，沙盒的演進無論是進入還是退出都是相當緩慢的。我的意思是，我們正在與世界上最大的零售商打交道。但正如我在準備好的演講中提到的那樣，有一些零售商，例如 Boot Barn，我們是它的忠實粉絲，我們正在積極地與其合作進行一個專案。但沙盒的進化是存在的，是緩慢的，對嗎？我的意思是，我們正在有條不紊地觀察信用狀況、消費者趨勢和所有相關數據點，無論是進入還是退出沙盒。

The second driver of that is just exposure overall in the portfolio. We want to have a well-balanced portfolio. We don't think it's appropriate to take tenants up to 10% or 9% asset, maybe Walmart or somebody of that ilk. We want to have a well-balanced portfolio from a tenant perspective, a sector perspective as well as geographic.

第二個驅動因素是投資組合的整體風險敞口。我們希望擁有一個均衡的投資組合。我們認為，讓租戶擁有高達 10% 或 9% 的資產是不合適的，也許是沃爾瑪或類似的公司。我們希望從租戶角度、產業角度以及地理位置角度擁有均衡的投資組合。

Okay.

好的。

And then a quick question on G&A and one of the big parts of the story hasn't been -- the scaling on the G&A the last few years, this year and sort of flatlining. What is driving that increase and how much is due to cash versus non-cash?

然後是關於 G&A 的一個快速問題，故事的一大部分是 - 過去幾年 G&A 的擴張，今年卻持平。推動這成長的因素有哪些？其中有多少是現金支出，有多少是非現金支出？

I'll let Peter speak to the cash versus non-cash.

我請彼得來談談現金與非現金的問題。

Obviously, we started last year with the do-nothing scenario. We made significant investments once we activated during the second half of last year, both to finalize the year in terms of people and systems. And then in preparation for 2025, we've onboarded a number of new team members here that will be here for full year 2025, have a few positions that we're hiring for still in 2025. I think you'll see ultimately that number scale would be driven down. Our initial guidance, obviously, as you mentioned is in line there. In terms of cash versus non-cash, Peter will just take it.

顯然，去年我們一開始就採取了無所作為的策略。我們在去年下半年啟動後就進行了大量投資，以在人員和系統方面完成今年的工作。為了迎接 2025 年，我們在這裡招募了一些新成員，他們將在 2025 年全年任職，還有一些職位我們將在 2025 年繼續招募。我想你最終會看到數字規模將會下降。顯然，正如您所說，我們的初步指導是符合這一點的。無論是現金或非現金，彼得都會接受。

Yeah, Wes, just to clarify, we guide to total G&A as a percent of adjusted revenue, and that includes non-cash G&A. And to the point of your question, we've seen greater growth in our non-cash G&A expense relative to cash G&A over the last couple of years. And so, when thinking about the impact to AFFO, we're continuing to see cash G&A at scale as a percent of adjusted revenue. And as we continue to scale the business, we would anticipate that that trend continues.

是的，韋斯，需要澄清的是，我們將總 G&A 費用作為調整後收入的百分比，其中包括非現金 G&A 費用。關於您的問題，過去幾年來，我們的非現金一般及行政管理費用相對於現金一般及行政管理費用的增長幅度更大。因此，在考慮對 AFFO 的影響時，我們繼續將現金 G&A 視為調整後收入的百分比。隨著我們繼續擴大業務規模，我們預計這種趨勢將會持續下去。

Yes. I would note that the scare, the non-cash G&A is really the driver that is a function of going from a five-year restricted time but based stock to a three year, which we thought and for in terms of talent management purposes, was critical. We made that change later in 2023. But we didn't think that the team members fully valued the five-year vesting period, and three years was more in line with industry standards, and frankly, with just mobility today. In terms of jobs and than we wanted, obviously to retain top talent to our team.

是的。我想指出的是，恐慌、非現金的一般及行政費用實際上是驅動因素，它是從五年限制時間但基於股票轉變為三年的函數，我們認為，就人才管理目的而言，這一點至關重要。我們在 2023 年稍後做出了這項改變。但我們認為團隊成員並沒有充分重視五年的歸屬期，三年更符合業界標準，坦白說，也符合今天的流動性。就工作而言，我們顯然希望留住團隊中的頂尖人才。

Got it. Thanks, everyone.

知道了。謝謝大家。

Eric Borden, BMO Capital Markets.

蒙特利爾銀行資本市場 (BMO Capital Markets) 的 Eric Borden。

Hey, good morning.

嘿，早安。

Just on the 2025 lease expirations, of the 41 leases set to expire this year, are there any known move outs or are any of the 41 on the disposition target list today?

僅就 2025 年租約到期而言，在今年即將到期的 41 份租約中，是否有已知的搬出情況，或者這 41 份租約中是否有任何一份在今天的處置目標名單上？

Really no known material move outs. Most of them will exercise contractual options. Those are rolling in honestly, as we know, weekly, if not daily. So, no known material move outs.

確實沒有已知的材料移出。他們中的大多數人都會行使合約選擇權。我們知道，這些錢即使不是每天，也是每週不斷地滾滾而來。因此，沒有已知的材料移出。

Potentially, if there was, we would have some we're excited about it, we'll see if they exercise their option, that's in Provo, Utah and A plus piece of real estate. Since subsequent reporting, we've had some exercise options exercised, including the Walmart Rancho Cordova with a five-year option exercise that's a ground lease. And so, that list continues to dwindle subscale into 1231.

有可能，如果有的話，我們會對此感到興奮，我們會看看他們是否會行使他們的選擇權，那是在猶他州普羅沃和一塊加分的房地產。自後續報告以來，我們已行使了一些選擇權，包括沃爾瑪 Rancho Cordova 的五年期選擇權行使，這是一項土地租賃。因此，此清單的子規模繼續縮小至 1231。

Eric, I would just add in terms of, I agree with Joey, there's nothing material in terms of lease role there, but to the extent we've identified anything that would be captured within our credit loss guide for the year as well.

艾瑞克，我想補充一點，我同意喬伊的觀點，就租賃角色而言，沒有什麼實質性的內容，但在某種程度上，我們已經確定了任何可以納入我們年度信用損失指南的內容。

That's helpful.

這很有幫助。

And then just on capital allocation, I know that liquidities fall and you don't need to access the equity markets to acquire any of the 2025 potential acquisitions. But as you look to replenish the war chest for 2026 and beyond, how are you thinking about, you know, the capital mix? I think, Peter, you had mentioned a potential long term debt issuance, but yes, any color on that would be appreciated.

然後，就資本配置而言，我知道流動性下降，你不需要進入股票市場來獲得 2025 年的任何潛在收購。但是，當您考慮補充 2026 年及以後的資金時，您是如何考慮資本組合的？彼得，我想你提到過潛在的長期債務發行，但是是的，任何有關這方面的詳細資訊都會受到歡迎。

With the 10-year swap to the tune of $300 million -- $200 million, excuse me, at 3.7%, for any future issuance this year in the unsecured debt markets we mentioned, but in reality, we don't need the dollar. We mentioned in the prepared remarks, we can stay sub 5 times by investing $1.5 billion this year without any incremental distribution. So, this is a pre-equatized balance sheet that doesn't need the dollar that has a swap in place to access the unsecured markets in a 10-year treasury market that's highly volatile.

我們提到的 10 年期掉期債券總額為 3 億美元 - 2 億美元，不好意思，利率為 3.7%，用於今年在無擔保債務市場的任何未來發行，但實際上，我們不需要美元。我們在準備好的評論中提到，我們今年可以透過投資 15 億美元來保持在 5 倍以下，而無需任何增量分配。因此，這是一個預先平衡的資產負債表，不需要具有掉期的美元來進入高度波動的 10 年期國債市場的無擔保市場。

Thank you very much.

非常感謝。

(ianudible), Bank of America.

（ianudible），美國銀行。

Good morning. Thanks for taking my question.

早安.感謝您回答我的問題。

I was wondering if you could make a few comments on how you're thinking about the hub consumer, specifically the lower end and how that may impact the retail that you're exposed to.

我想知道您是否可以就您對中心消費者，特別是低端消費者的看法以及這對您所接觸的零售業有何影響發表一些評論。

We continue to see pressure on the low-income cohort undoubtably with inflation and exogenously back in the news with goods and services that are necessity-based, the high-end consumer with the looking at their [401Ks] and looking at their portfolio still feels well. And then trade down in the, let's call it, the 150 median household income to Walmart and Walmart continuing to take share. And so, that will continue doing evolve throughout the year, obviously, subject to inflation, subject to macroeconomic factors. But we see a bifurcated, if not, trifurcated consumer today.

我們繼續看到低收入群體無疑面臨通貨膨脹的壓力，以及必需品和服務的外部新聞，而高端消費者看著他們的[401K]和投資組合仍然感覺良好。然後，我們稱之為 150 個中位家庭收入的商品轉向沃爾瑪，沃爾瑪繼續佔據市場份額。因此，這種情況將在全年持續演變，顯然會受到通貨膨脹和宏觀經濟因素的影響。但我們今天看到的消費者是分裂的，甚至分裂為三派。

Thank you.

謝謝。

And also, in terms of competition in the market, are you seeing any chance here today in going forward compared to last few quarters?

此外，就市場競爭而言，與過去幾季相比，您是否看到目前存在任何未來發展的機會？

Our competition continues to dwindle. Again, at the end of by interest rates super cycle with 1031 transactions lagging, obviously, with the transactional market cut by 45% over the past couple of years from historic averages, we are seeing less and less institutional competition, individual competition, tax, motivated competition, DST motivated competition. The competition today is with sellers' expectations it themselves and where they think pricing should be in this new world order of 2025 to orient. And so, we encourage brokers all the time, sellers all the time to wake up to February of 2025 and stop pretending it's 2023.

我們的競爭持續減少。再一次，在利率超級週期結束時，1031 交易明顯滯後，隨著過去幾年交易市場較歷史平均下降 45%，我們看到的機構競爭、個人競爭、稅收、激勵競爭、DST 激勵競爭越來越少。當今的競爭在於賣家對自己的期望以及他們認為在 2025 年的新世界秩序中定價應該在哪裡。因此，我們始終鼓勵經紀人和賣家清醒地認識到 2025 年 2 月是現實，不要再假裝是 2023 年了。

Okay. Thank you very much.

好的。非常感謝。

Rich Hightower, Barclays.

巴克萊銀行的里奇‧海托爾 (Rich Hightower)。

Good morning, guys. Thanks for taking the question here.

大家早安。感謝您在這裡提出這個問題。

I guess, Joey, you spent a lot of time this morning talking about DFP and how it's kind of a unique solution in the marketplace for retailer store growth, what are the gating factors to that becoming within the size of your big multiples of what it is today, simply demand on the retailer side? Is the concentration issue in terms of how the company allocates capital to maybe spend a little time on that, if you don't mind?

我想，喬伊，你今天早上花了很多時間談論 DFP，以及它如何成為零售商店成長市場上的獨特解決方案，那麼，在今天的規模範圍內，限制因素是什麼呢？僅僅是零售商方面的需求嗎？如果您不介意的話，集中度問題是否與公司如何分配資本有關，也許需要花一點時間在這上面？

Sure. One thing returns as well as they fit into our sandbox. We are not going to deploy capital into development funding platform or development returns that we can execute and 67 days in the acquisition space.

當然。有一件事回歸了，因為它們適合我們的沙箱。我們不會將資本投入到開發融資平台或我們可以執行的開發回報中，也不會在收購領域投入 67 天。

Danielle Spehar, our General Counsel, here has done a tremendous job in 2024, compressing our days to close down to that 66, 67, and her team. But again, duration equals risk and we need the premium based upon that risk in duration. And so as we've talked about it, if we can churn and burn, take a building that the existing structure get in there, add onto it, do a renovation, improved -- site improve segments and expansion and the tenants going to be paying rent in 120 days rather than the 67 days, that can be a tighter spread, call it 50 basis points to a where we can acquire like kind asset. If we're going to go through a 12 to 18-month entitlement, permitting and construction process, that spread's going to be wider.

我們的總法律顧問丹妮爾·斯佩哈爾 (Danielle Spehar) 在 2024 年做出了巨大的貢獻，將我們的工作時間壓縮到 66、67 天，還有她的團隊。但同樣，持續時間等於風險，我們需要根據持續時間的風險來計算溢價。正如我們所討論的，如果我們可以不斷翻新和燃燒，將現有的結構建起來，進行擴建、翻新、改進——場地改善部分和擴建，租戶將在 120 天而不是 67 天支付租金，這可以實現更窄的利差，稱之為 50 個基點，這樣我們就可以收購同類資產。如果我們要經歷 12 到 18 個月的授權、許可和建設過程，那麼這個差距將會更大。

And so, that's the true gating factor here for us is developers, returns on costs where they have projects, retailers' expectations for return on cost. And we sort through hundreds, if not thousands, of projects annually to decide which ones we think makes sense given the kind of those brackets.

所以，對我們來說，真正的限制因素是開發商、他們有專案的成本回報、零售商對成本回報的期望。我們每年都會對數百甚至數千個項目進行篩選，根據這些括號類型來決定我們認為哪些項目是合理的。

That's very helpful.

這非常有幫助。

I'm going to ask another question, which I think has been asked in different ways. But as we think -- as we start to think about 2026 funding sources and uses, and I appreciate that it's hard to make predictions, especially about the future. But just given the choppiness of the last few months for the obvious reasons on, you know, what are the chances in your mind that 2026 to be a do-nothing scenario all over again.

我要問另一個問題，我認為這個問題已經以不同的方式被問過了。但當我們開始思考 2026 年的資金來源和用途時，我知道做出預測很難，尤其是對未來的預測。但是，考慮到過去幾個月由於顯而易見的原因而出現的動盪，您認為 2026 年再次陷入無所作為的局面的可能性有多大？

Wow, you really asked me if you guys have [hydro capacity] to be. Look, I don't think it's going to be a do-nothing scenario in 2026. I think we are sitting in the pole position right now. I'm not concerned about, again, as I said in the prepared remarks, the penny here or a penny there, I will take potential treasury method dilution versus a pre-funded war chest and the 10-year swap to 3, 7, 10 out of 10 times for potential dilution of a penny or two for accounting methodologies.

哇，你真的問我你們是否有[水力發電能力]。聽著，我不認為 2026 年會出現無所作為的情況。我認為我們現在處於領先地位。我並不擔心，正如我在準備好的演講中所說的那樣，這裡一分錢或那裡一分錢，我將選擇潛在的國庫方法稀釋與預先籌資的戰爭基金和 10 年期互換，10 次中有 3 次、7 次、10 次，以防會計方法可能稀釋一分錢或兩分錢。

What we're sitting on in terms of this portfolio, at this balance sheet, inclusive of its maturity schedule is truly unprecedented with, I think, in this space. And I think it's going to continue to endure value. And 2026, I wouldn't anticipate it will be a do nothing scenario, but it's only February 2025, so we'll see what executive orders are signed today and then throughout the year.

就這個投資組合、資產負債表而言，包括其到期時間表，我認為在這個領域確實是前所未有的。我認為它將繼續保持價值。至於 2026 年，我預計不會出現無所作為的情況，但現在只是 2025 年 2 月，所以我們將看看今天以及全年簽署了哪些行政命令。

Got it. Thanks for the comments.

知道了。感謝您的評論。

Haendel St. Juste, Mizuho.

亨德爾聖朱斯特，瑞穗。

Hey, guys. Thanks for squeezing me in. Two quick ones from me.

嘿，大家好。謝謝你把我擠進來。我簡單說兩句話。

So first, I wanted to follow-up on the earlier comments on the 50 basis points of credit reserve. I was hoping you could add some color or ballpark and ballpark exposure to not just Big Lots, but also to Joann's, Party City, Family Dollar. I guess I'm trying to get a better sense of the categories and tenant, specifically in the portfolio watching a bit more closely here. Thanks.

因此，首先，我想跟進一下先前關於 50 個基點信貸儲備的評論。我希望您不僅可以為 Big Lots 添加一些色彩或大概的內容以及大致的曝光度，還可以為 Joann's、Party City 和 Family Dollar 添加一些色彩或大致的內容以及大致的曝光度。我想我正在嘗試更好地了解類別和租戶，特別是在投資組合中更密切地觀察。謝謝。

And it's really the Big Lots scenario as this continues to play out. We have two Party City's in the portfolio that will be thrilled to get back. One is that a target-anchored shopping center in Davenport, Iowa, and one is in Texas in Port Arthur. We'd be thrilled to get those back and have tenants lined up and waiting. We don't own any Joann's. I'm not sure, frankly, why anyone would in today's environment. And the net lease structure, probably the worst retail bankruptcy of all-time, all the stores we're making money. And nine months later, we file again with new project one lease. We expect them to effectively liquidated at this point, just a (inaudible), a Hobby Lobby, who's our favorite.

隨著事態的繼續發展，這確實是 Big Lots 的場景。我們的投資組合中有兩個 Party City，我們很高興能夠回歸。一個是位於愛荷華州達文波特的以目標為中心的購物中心，另一個位於德克薩斯州的亞瑟港。我們很高興能把它們拿回來，並讓房客排隊等候。我們沒有任何 Joann 的財產。坦白說，我不確定在當今環境下為什麼有人會這麼做。淨租賃結構可能是有史以來最嚴重的零售破產案，我們所有的商店都在賺錢。九個月後，我們再次提交新的專案一租約。我們預期他們此時會有效清算，只是（聽不清楚），Hobby Lobby，我們最喜歡的。

But that's -- I mean, that's really it. The couple of movie theaters we're always watching, we saw the Oscars about I don't know one of the best titles so that always concerns me. One of the best films, didn't see any of them. Besides that, we're in a great place.

但那是——我的意思是，確實如此。我們經常去幾家電影院看奧斯卡頒獎典禮，但我不知道哪部電影是最好的，所以我總是很擔心。最好的電影之一，但我一部都沒看過。除此之外，我們的處境非常好。

Got it. Got it. Appreciate that.

知道了。知道了。非常感謝。

I also wanted to ask about what you might be hearing about the potential impact of tariffs, some of your tenants, I was looking at some of your tenant categories like home improvement, auto-parts, farm supply. I was curious if you think that that could be more at risk because the number of them have items that are produced assembled in Mexico, Canada, China. And so, curious now that might be impacting your thinking, maybe your underwriting someone's categories.

我還想問一下您可能聽到的有關關稅的潛在影響，關於您的一些租戶，我正在查看一些租戶類別，例如家居裝修、汽車零件、農場供應。我很好奇，您是否認為這可能更具風險，因為其中許多產品是在墨西哥、加拿大和中國生產組裝的。所以，現在好奇的是，這可能會影響你的想法，也許你會承保某人的類別。

The nonstop tariff talk, which doesn't appear to be going anywhere, is going to affect that. Effectively all consumer categories and retail categories today and ultimately flow down to the consumer. That's the bottom line. So whether it's Bill Ford, talking about cars or any other components that are manufactured and or imported into this country. The good news is that most retailers, that national retailers due to the first Trump presidency and the tariffs, they really diversify their source, right? They're sourcing.

似乎毫無進展的不間斷關稅談判將對此產生影響。實際上當今所有的消費類別和零售類別最終都流向消費者。這就是底線。因此，無論是比爾福特，談論的是汽車還是在這個國家製造或進口的任何其他零件。好消息是，大多數零售商，即全國性零售商，由於川普首次擔任總統和徵收關稅，他們確實實現了貨源多元化，對嗎？他們正在尋找貨源。

And so, coming from but now it seems like only Australia won't have tariffs. So, I'm looking at looking across their global procurement efforts, TGX, for example, which would be a beneficiary from these tariffs because I think you'll see trade down has, I believe it's 16 global -- 16 purchasing offices in 16 countries around the globe. Those efforts that came from the 2016 administration. And those tariffs, hopefully, and I think did give, frankly, retailers the opportunity to diversify their procurement sources and their purchasing. That's it.

因此，但現在看來，只有澳洲不會徵收關稅。因此，我正在觀察他們的全球採購工作，例如 TGX，它將是這些關稅的受益者，因為我認為你會看到貿易下滑，我相信它在全球 16 個國家/地區設有 16 個採購辦事處。這些努力源自於 2016 年政府的努力。坦白說，我認為這些關稅確實為零售商提供了多樣化採購來源和採購方式的機會。就是這樣。

Ultimately, tariffs flow down to the consumer unless retailers want easier margin. We have the biggest retailers in the country in our portfolio for a reason, they have liquidity, the balance sheet, to invest in labor to invest in price, which directly can be right related to tariffs. Walmart can choose, TGX can choose not to move price and to take share.

最終，關稅將轉嫁給消費者，除非零售商希望獲得更低的利潤。我們的投資組合中包含全國最大的零售商，這是有原因的，他們擁有流動性、資產負債表，可以投資勞動力，投資價格，而這些都與關稅直接相關。沃爾瑪可以選擇，TGX 可以選擇不變動價格並佔據市場份額。

Now, if I'm a small middle market retailer and I'm subject to those tariffs or not, I don't have a multi-billion dollar balance sheet, I'm going to have to pass that through somehow or find some savings in SG&A. And so, it's some -- look, tariffs will continue to be in the new. The impact of them, we're going to see what those ours there as they work through them and they get resolved. But it will be the small middle market retailers that suffer the greatest consequences from any tariffs here.

現在，如果我是一家小型中型市場零售商，無論是否受到這些關稅的影響，我都沒有數十億美元的資產負債表，我將不得不以某種方式轉嫁這些關稅或在銷售、一般和行政費用中找到一些節省。所以，看起來，關稅將繼續存在。它們的影響，我們將會看到它們在我們努力解決它們的過程中會產生什麼影響。但受到關稅影響最大的將是中小型市場零售商。

Appreciate the thoughts. Thanks, guys.

感謝您的想法。謝謝大家。

(inaudible), an investor.

（聽不清楚），一位投資者。

Hey, this is Sam on for Tayo.

嘿，我是 Sam，代替 Tayo。

I just have one to ask you, guys. If you could give us an update on some of the retail categories experienced headwinds, specifically talking about dollar stores and on pharmacies?

夥計們，我只想問你們一個問題。您能否向我們介紹一些遭遇逆風的零售類別的最新情況，特別是一元商店和藥局？

What we saw CVS's print this morning, which beat guidance and a strong outlook for 2025, that's just CVS, specifically. The pharmacy sector, obviously, we've -- if you look year over year, pharmacy for us is down 10% almost from this without any material, the dispositions year over year.

我們今天早上看到的 CVS 的印刷品超出了預期，並且對 2025 年的前景看好，具體來說，這只是 CVS 的情況。顯然，就製藥業而言——如果你看一下同比數據，我們的製藥業銷售額幾乎下降了 10%，而且沒有任何實質性的下降，但同比銷售額卻下降了。

And so, those matters that were in the news will continue to experience some of those headwinds, absent, obviously, some macroeconomic changes. We'll continue to invest in what we think are the best retailers in a recession resistant environment, same sticking to our sandbox, so you won't see us move into experiential. You won't see us ramp our dollar store exposure that's is going down every single day. You won't see us increase our pharmacy exposure. We're focused on the best and brightest categories in our opinion, whether that's off-price, general merchandise, Walmart, tire and auto service, auto parts like we talked about earlier, dominant grocers in this country such as Kroger, all the Wegmans, HEB, Publix. We'll be focused on the best of the best here and we're going to let this -- we're going to let the -- really everything else shake out.

因此，那些新聞中報導的事件將繼續遭遇一些阻力，顯然，如果沒有一些宏觀經濟變化。我們將繼續投資我們認為在抗衰退環境中最好的零售商，同樣堅持我們的沙盒，所以你不會看到我們進入體驗式領域。你不會看到我們增加一元商店的曝光率，因為它每天都在下降。您不會看到我們增加藥局曝光率。我們專注於我們認為最好、最亮眼的類別，無論是折扣商品、日用百貨、沃爾瑪、輪胎和汽車服務、汽車零件（就像我們之前談到的），還是這個國家的主要雜貨店，如 Kroger、所有 Wegmans、HEB、Publix。我們將集中精力做好最好的事情，我們將讓這個——我們將讓——其他一切都自然而然地發生。

Right. That makes sense.

正確的。這很有道理。

And I guess the last question, I hope I didn't miss it, are you guys seeing anything changed from your watch list of tenant credit, kind of credit perspective?

我想最後一個問題，我希望我沒有錯過，從租戶信用觀察名單、信用角度來看，你們看到有什麼變化嗎？

As I mentioned earlier, we're just continuing to navigate and watch. We really can't do much to this Big Lots bankruptcy with a few Big Lots that we have, that's the least option. They continued to go through different hands. But our portfolio, we feel like, is in great shape.

正如我之前提到的，我們只是繼續導航和觀察。僅憑我們現有的幾家 Big Lots 公司，我們真的無法對 Big Lots 破產做出太大改變，這是最沒有辦法的選擇。它們不斷地經過不同的人之手。但我們感覺我們的投資組合狀況良好。

All right. That's all I've got. Thanks, guys. I appreciate your time.

好的。這就是我所知道的一切。謝謝大家。感謝您抽出時間。

We have no further questions. I will turn the call back over for closing comments.

我們沒有其他問題了。我將把電話轉回以供最後評論。

Thank you all for joining us this morning. We look forward to seeing you at upcoming conferences and we appreciate everybody's time. Thanks again.

感謝大家今天上午參加我們的活動。我們期待在即將召開的會議上見到您，並感謝大家的時間。再次感謝。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，請您斷開線路。