Agree Realty Corp (ADC) 2025 Q2 法說會逐字稿

Good morning, and welcome to the Agree Realty second quarter 2025 conference call. (Operator Instructions) And note, this event is being recorded.

早安，歡迎參加 Agree Realty 2025 年第二季電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Reuben Treatman, Senior Director of Corporate Finance. Please go ahead, Reuben.

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 second quarter 2025 earnings Call. Before turning the call over to Joe and Peter to discuss our results for the quarter, let me first run through our cautionary language. Please note that during this call, we will make certain statements that may be considered forward-looking under federal securities laws, including statements related to our updated 2025 guidance.

謝謝。大家早安，感謝您參加 Agree Realty 2025 年第二季財報電話會議。在將電話轉給喬和彼得討論本季的業績之前，讓我先介紹一下我們的警告語。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，包括與我們更新的 2025 年指南相關的聲明。

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.

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報告、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. I am extremely pleased with our performance during the first half of the year, having invested over $725 million across our three external growth platforms, while further solidifying what we believe to be the preeminent retail portfolio in the country. The $725 million plus invested year-to-date represents a more than twofold increase relative to the first half of last year.

謝謝，魯本，也謝謝大家今天早上加入我們。我對我們今年上半年的表現感到非常滿意，我們在三個外部成長平台上投資了超過 7.25 億美元，同時進一步鞏固了我們認為在全國最卓越的零售組合。今年迄今的投資額已超過 7.25 億美元，較去年上半年增加了一倍多。

All three of our external growth platforms have broad and expansive pipelines and we'll see acceleration in the third quarter. Hence, we are raising our full year investment volume guidance once again to an updated range of $1.4 billion to $1.6 billion. The midpoint of this range represents a 58% increase over total investment volume for last year.

我們所有的三個外部成長平台都擁有廣泛而廣闊的管道，我們將在第三季看到加速。因此，我們再次將全年投資金額預期上調至 14 億美元至 16 億美元的最新範圍。這一範圍的中間值比去年的總投資額增加了 58%。

Most exciting is not the defensive nature of our portfolio or balance sheet in a dynamic world. It is now our dominant market position, driven by a best-in-class team that executes on hundreds of transactions annually across our three growth platforms. This value proposition is unparalleled.

最令人興奮的不是我們在動態世界中的投資組合或資產負債表的防禦性質。現在，這是我們的主導市場地位，由一支每年在我們的三個成長平台上執行數百筆交易的一流團隊推動。這價值主張是無與倫比的。

And when combined with our internal asset management platform and deep retailer relationships has built a differentiated and unmatched company. It has been 15 years in the making since this vision was outlined in our one-page operating strategy.

當與我們的內部資產管理平台和深厚的零售商關係相結合時，我們建立了一家差異化、無與倫比的公司。自從我們在一頁紙的營運策略中提出這個願景以來，我們已經花了15年的時間來實現它。

December of 2009 to be exact. And I'm delighted to say that it has been realized. I am confident that these factors will drive an increased earnings algorithm in the coming years without moving up the risk curve in any manner. We continue to expand our war chest during the quarter, now having raised over $1 billion of capital year-to-date with $1.3 billion of outstanding forward equity. With over $2.3 billion in total liquidity, no material debt maturities until 2028 and pro forma net debt to recurring EBITDA of just 3.1 times at quarter end, our balance sheet remains best-in-class and is positioned to support our growth well into next year.

確切地說是 2009 年 12 月。我很高興地說，這個夢想已經實現了。我相信這些因素將在未來幾年推動收益演算法的成長，而不會以任何方式提高風險曲線。我們在本季繼續擴大我們的資金儲備，今年迄今已籌集超過 10 億美元的資本，其中未償還遠期股本為 13 億美元。我們的總流動資金超過 23 億美元，直到 2028 年都沒有重大債務到期，季度末的預計淨債務與經常性 EBITDA 之比僅為 3.1 倍，我們的資產負債表仍然處於最佳水平，並有望支持我們明年的增長。

To support this growth, we've continued to scale our team, enhance our systems and refine our processes, building a well-oiled machine and widening our competitive moat. We've added over 20 new team members year-to-date across the organization, increasing the scale of our horizontally integrated platform to support current activities as well as growth for years to come.

為了支持這一成長，我們不斷擴大我們的團隊，增強我們的系統並改進我們的流程，打造一台運作良好的機器並拓寬我們的競爭優勢。今年迄今為止，我們已在整個組織內增加了 20 多名新團隊成員，擴大了我們的橫向整合平台的規模，以支持當前的活動以及未來幾年的成長。

We have driven industry-leading efficiencies with the deployment of additional systems, including AI and machine learning tools as well as enhanced integrations and streamlined workflows. Additionally, we have commenced the next iteration of ARC, which will come online next year.

我們透過部署附加系統（包括人工智慧和機器學習工具以及增強的整合和簡化的工作流程）實現了業界領先的效率。此外，我們已經開始 ARC 的下一輪迭代，預計將於明年上線。

We've already started to reap these benefits in 2025 as we're raising our full year AFFO per share guidance by $0.02 at the midpoint to a new range of $4.29 to $4.32. This represents over 4% growth at the midpoint and demonstrates our ability to provide consistent and reliable earnings growth without deviating from our investment strategy.

我們在2025年開始收穫這些收益，因為我們將全年每股獲利預測中位數上調了0.02美元，至4.29美元至4.32美元的新區間。這代表著中位數成長超過4%，並表明我們有能力在不偏離投資策略的情況下實現持續可靠的獲利成長。

Peter will provide further details on the guidance range and its key input shortly. We continue to see the biggest and best retailers take market share, which acts as a tailwind to all three of our external growth platforms. Even in today's uncertain macro environment, we are seeing the highest level of retailer demand for new brick-and-mortar locations since the great financial crisis.

Peter 很快就會提供有關指導範圍及其關鍵輸入的更多詳細資訊。我們繼續看到最大和最好的零售商佔據市場份額，這對我們所有三個外部成長平台起到了順風作用。即使在當今不確定的宏觀環境下，我們也看到零售商對新實體店的需求達到了金融危機以來的最高水準。

Nearly every retailer in our sandbox is focused on adding net new stores, underscoring the critical role that retail net lease assets play in an omnichannel retail world and as outlined in our previous commentary in white papers.

我們沙盒中的幾乎每家零售商都專注於增加新店，這強調了零售淨租賃資產在全通路零售世界中發揮的關鍵作用，正如我們之前在白皮書中的評論中所概述的那樣。

Moving on to the second quarter in detail. We invested over $350 million in 110 properties across all three platforms. This includes $328 million of acquisition volume across 91 high-quality retail net lease assets. Notable acquisitions during the quarter included a sale leaseback with the leading national auto parts retailer, a one-off Walmart supercenter in Ohio and a $75 million grocery-dominated portfolio, representing one of our largest non-sale leaseback transactions since the inception of our acquisition platform in 2010.

詳細介紹第二季。我們在三個平台上的 110 處房產上投資了超過 3.5 億美元。其中包括對 91 個優質零售淨租賃資產的 3.28 億美元收購。本季值得注意的收購案包括與全國領先的汽車零件零售商的售後回租、俄亥俄州的一次性沃爾瑪超級購物中心以及價值 7,500 萬美元的以雜貨店為主的投資組合，這是我們自 2010 年收購平台成立以來最大的非售後回租交易之一。

This unique opportunity was owned by an elderly woman and was sourced through 18 months of working an off-market opportunity. These differentiated examples underscore the strength of our platform and its ability to source differentiated opportunities in a substantial and highly fragmented space. The acquired properties had a weighted average cap rate of 7.1% and a weighted average lease term of 12.2 years.

這個獨特的機會屬於一位老婦人，她透過 18 個月的場外工作獲得了這個機會。這些差異化的例子凸顯了我們平台的實力及其在龐大且高度分散的空間中尋找差異化機會的能力。所收購物業的加權平均資本化率為 7.1%，加權平均租賃期間為 12.2 年。

Over 53% of base rent acquired was derived from investment-grade retailers, and we continue to add to our ground lease portfolio during the quarter. We anticipate selling a few lower-yield noncore assets from the aforementioned $75 million grocery-dominated portfolio, which will include both acquisition cap rate and investment-grade percentage for the quarter post disposition.

所獲得的基本租金中有超過 53% 來自投資等級零售商，並且我們在本季繼續增加土地租賃組合。我們預計將出售上述價值 7,500 萬美元的以食品雜貨為主的投資組合中的一些低收益非核心資產，其中包括處置後季度的收購資本化率和投資級百分比。

Although we only commenced one project in our development and DSP platforms during the quarter, don't be fooled, we continue to see increased activity and have a deep pipeline. We anticipate announcing several projects in the quarters ahead, while construction continued on 14 projects during the quarter with aggregate anticipated costs of over $90 million.

儘管本季我們僅在開發和 DSP 平台中啟動了一個項目，但不要被誤導，我們繼續看到活動的增加，並且擁有深厚的管道。我們預計在未來幾季宣布多個項目，同時本季將繼續建造 14 個項目，預計總成本超過 9,000 萬美元。

We wrapped up four projects during the quarter, representing aggregate investment of over $13 million. These projects were the leading retail partners, including TJX, Burlington, 7-Eleven, Boot Barn, Starbucks, Gerber Collision and Sunbelt Rentals.

本季我們完成了四個項目，總投資超過 1,300 萬美元。這些專案的合作夥伴均為領先的零售企業，包括TJX、Burlington、7-Eleven、Boot Barn、星巴克、Gerber Collision和Sunbelt Rentals。

In total, we had 25 projects either completed or under construction during the first half of the year, representing $140 million of committed capital, including $98 million of costs incurred through June 30. We anticipate development spend to be up at least 50% year-over-year as both platforms continue to ramp. Our asset management team continues to address upcoming lease maturities. We executed new leases, extensions or options on approximately 950,000 square feet of gross leasable area during the quarter. This included a Walmart Supercenter in Ohio, a Best Buy in California and five geographically diverse leases with the TJX companies.

整體而言，我們上半年共有 25 個專案完工或在建，承諾資本達 1.4 億美元，其中包括截至 6 月 30 日發生的 9,800 萬美元成本。隨著兩個平台的持續發展，我們預計開發支出將年增至少 50%。我們的資產管理團隊繼續處理即將到期的租賃問題。本季度，我們對約 95 萬平方英尺的總可出租面積執行了新的租約、延期或選擇權。其中包括俄亥俄州的沃爾瑪超級購物中心、加州的百思買以及與 TJX 公司簽訂的五家地理位置不同的租約。

In the first half of the year, we executed new leases, extensions or options at 1.5 million square feet of GLA with recapture rates of approximately 104%. And Notable examples in recent quarters include the releasing of our former Big Lots in Manassas, Virginia and Cedar Park, Texas with net effective recapture rates of almost 170% and 150%, respectively as well as the releasing of our former Party City in Port Arthur, Texas, with a net effective recapture rate of 115%, demonstrating our emphasis on fungible boxes in dominant retail corridors.

今年上半年，我們簽訂了 150 萬平方英尺 GLA 的新租約、續約或選擇權，回收率約 104%。最近幾季值得注意的例子包括我們之前在弗吉尼亞州馬納薩斯和德克薩斯州錫達公園的 Big Lots 的發布，淨有效回收率分別接近 170% 和 150%，以及我們之前在德克薩斯州亞瑟港的 Party City 的發布，淨有效回收率為 115%，這表明我們可重視主要零售走廊中的替代盒子。

At quarter end, our best-in-class portfolio surpassed 2,500 properties spanning all 50 states. The portfolio includes 232 ground leases, comprising over 10% of annualized base rents.

截至本季末，我們一流的投資組合已超過 2,500 處房產，遍佈全美 50 個州。該投資組合包括 232 份土地租賃合同，佔年化基本租金的 10% 以上。

Our investment-grade exposure stood at 68%, and occupancy rebound post the retenanting of the former Big Lots by 40 basis points to 99.6%. Dispositions remain limited However, our only at home located in Provo, Utah across from a new target is currently under contract to sell a nonrefundable at a seven cap. We purchased the at Home as a pure real estate play in 2016 and have had interest in the site from multiple retailers and prospective purchasers.

我們的投資等級為 68%，在原 Big Lots 重新出租後，入住率反彈 40 個基點至 99.6%。處置仍然有限但是，我們唯一的家位於猶他州普羅沃，對面的一個新目標目前正在簽訂合同，以七倍的上限出售不可退款的房產。我們於 2016 年購買了 at Home 作為純房地產項目，並引起了多家零售商和潛在買家對該地塊的興趣。

The disposition cap rate of 7% is nearly 50 basis points inside of where we acquired the asset, and we anticipate realizing an unlevered IRR of approximately 9% upon closing this quarter. Although At Home recently exercised a five year option, and the lease is anticipated to be confirmed in bankruptcy. I'm confident that At Home will ultimately suffer the same fate as Party City, JOANN and Rite Aid and ultimately liquidate.

7% 的處置上限率接近我們收購資產時的 50 個基點，我們預計本季結束時將實現約 9% 的無槓桿 IRR。儘管 At Home 最近行使了五年期選擇權，並且租約預計將在破產時得到確認。我相信 At Home 最終會遭遇與 Party City、JOANN 和 Rite Aid 相同的命運，最終破產。

With that said, I'll hand the call over to Peter to discuss our financial results for the quarter.

話雖如此，我會將電話交給彼得來討論我們本季的財務表現。

Thank you, Joey. Starting with the balance sheet. We had a very active quarter with over $800 million of debt and equity capital raised bringing total capital markets activity year-to-date to over $1 billion. We raised approximately $415 million of forward equity in the quarter via our ATM program and a 5.2 million share overnight offering in April. In May, we completed a $400 million public bond offering comprised of 5.6% senior unsecured notes due in 2035. In connection with the offering, we terminated forward starting swap agreements of $325 million, receiving almost $14 million upon termination and reducing our all-in rate to 5.35%.

謝謝你，喬伊。從資產負債表開始。本季我們表現非常活躍，籌集了超過 8 億美元的債務和股權資本，使年初至今的資本市場總活動超過 10 億美元。我們在本季透過 ATM 計畫籌集了約 4.15 億美元的遠期股權，並在 4 月進行了 520 萬股隔夜發行。5 月份，我們完成了 4 億美元的公開債券發行，其中包括 2035 年到期的 5.6% 優先無擔保票據。與此次發行相關，我們終止了價值 3.25 億美元的遠期掉期協議，在終止時收到近 1,400 萬美元，並將我們的全包利率降至 5.35%。

During the quarter, we also settled close to 700,000 shares of forward equity for net proceeds of approximately $41 million. As of June 30, we had approximately 17.5 million shares remaining to be settled under existing forward sale agreements for anticipated net proceeds of $1.3 billion. At quarter end, total liquidity stood at $2.3 billion, including cash on hand, forward equity as well as $1 billion of availability on our revolving credit facility, which is net of amounts outstanding on our commercial paper program at quarter end. Pro forma for the settlement of all outstanding forward equity, our net debt to recurring EBITDA was approximately 3.1 times, representing the lowest level since Q4 of 2022.

本季度，我們也結算了近 70 萬股遠期股權，淨收益約 4,100 萬美元。截至 6 月 30 日，我們仍有約 1,750 萬股股票未根據現有遠期銷售協議結算，預計淨收益為 13 億美元。截至季末，總流動資金為 23 億美元，包括庫存現金、遠期股權以及 10 億美元的循環信貸額度，這是季度末商業票據計劃未償還金額的淨額。根據所有未償還遠期股權結算的預測，我們的淨債務與經常性 EBITDA 比率約為 3.1 倍，為 2022 年第四季以來的最低水準。

Excluding the impact of unsettled forward equity, our net debt to recurring EBITDA was 5.2 times. Our total debt to enterprise value was approximately 28%, and our fixed charge coverage ratio, which includes the preferred dividend remains very healthy at 4.2 times.

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 5.2 倍。我們的總負債與企業價值之比約為 28%，包括優先股股利在內的固定費用覆蓋率仍維持在 4.2 倍的非常健康的水平。

Our only floating rate exposure remains short-term borrowings, and we continue to have no material debt maturities until 2028. Our balance sheet is extremely well positioned to fund our growth into next year as we've locked in an attractive cost of capital which helps provide visibility into the acceleration in our multiyear earnings algorithm, as Joey mentioned.

我們唯一的浮動利率曝險仍然是短期借款，直到 2028 年我們都沒有重大債務到期。正如喬伊所提到的那樣，我們的資產負債表非常適合為明年的成長提供資金，因為我們已經鎖定了有吸引力的資本成本，這有助於讓我們了解多年盈利演算法的加速。

Core FFO per share was $1.05 for the second quarter, which represents a 1.3% increase compared to the second quarter of last year. AFFO per share was $1.06 for the quarter, representing a 1.7% year-over-year increase. As Joey highlighted, we have updated our full year 2025 earnings outlook to reflect the strong first half to the year.

第二季每股核心 FFO 為 1.05 美元，較去年第二季成長 1.3%。本季每股 AFFO 為 1.06 美元，年增 1.7%。正如喬伊所強調的，我們已更新 2025 年全年獲利預期，以反映今年上半年的強勁表現。

We raised both the lower and upper end of our full year AFFO per share guidance by $0.02 to a new range of $4.29 to $4.32, which implies year-over-year growth of over 4% at the midpoint. The increase in our earnings guidance is largely driven by higher investment activity as evidenced by our increased investment guidance as well as a lower assumption for treasury stock method dilution.

我們將全年每股 AFFO 指導價的下限和上限均上調 0.02 美元，至 4.29 美元至 4.32 美元的新範圍，這意味著中點同比增長超過 4%。我們的獲利預測上調主要是因為投資活動增加，這從我們增加的投資預測以及對庫存股法稀釋的較低假設可以看出。

As a reminder, if ADC stock trades above the net price of our outstanding forward equity offerings, the dilutive impact of unsettled shares must be included in our share count in accordance with the treasury stock method. Our stock is trading at lower levels than in late April, and if it continues to trade near current levels, we anticipate that treasury stock method dilution will have an impact of roughly $0.01 on full year 2025 AFFO per share.

提醒一下，如果 ADC 股票交易價格高於我們未償還遠期股票發行的淨價，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。我們的股票交易價格低於 4 月底的水平，如果繼續在當前水平附近交易，我們預計庫存股法稀釋將對 2025 年全年每股 AFFO 產生約 0.01 美元的影響。

That said, the impact could be higher if our stock moves materially above current levels as was evident in last quarter's guidance or if we were to issue additional forward equity. Our guidance has been updated to include an assumption of 25 basis points of credit loss at the high end of our AFFO per share range and 50 basis points of credit loss at the low end of the range.

也就是說，如果我們的股價大幅高於目前水準（如上個季度的指引所示），或者我們發行額外的遠期股權，那麼影響可能會更大。我們的指引已更新，包括假設每股 AFFO 範圍高端的信用損失為 25 個基點，以及每股 AFFO 範圍低端的信用損失為 50 個基點。

I want to reiterate that our definition of credit loss is fully loaded. It encompasses not only credit events, but downtime due to a tenant vacating at lease maturity unrelated to credit issues and other partial earn on payments for any and all reasons. It also includes any operating and tax expense that ADC is responsible for paying while a space is vacant in addition to lost rental revenue.

我想重申一下，我們對信用損失的定義是全面的。它不僅包括信用事件，還包括因租戶在租約到期時搬離而導致的與信用問題無關的停工，以及因任何原因而產生的其他部分付款收益。它還包括 ADC 在空間空置期間負責支付的任何營運和稅收費用以及損失的租金收入。

We believe this is an important distinction versus narrower definitions of credit loss used by some of our peers as we're looking to provide a more comprehensive picture of not only credit events, but overall economic loss for modeling purposes.

我們認為，這與一些同業所使用的較狹義的信用損失定義有著重要區別，因為我們希望提供不僅信用事件而且出於建模目的的整體經濟損失的更全面的圖景。

Our growing and well-covered dividend continues to be supported by our consistent and reliable earnings growth. During the second quarter, we declared monthly cash dividends of $0.256 per common share for April, May and June. The monthly dividend equates to an annualized dividend of over $3.07 per share and represents a 2.4% year-over-year increase.

我們持續可靠的獲利成長繼續支撐著我們不斷增長且覆蓋範圍廣泛的股息。在第二季度，我們宣布 4 月、5 月和 6 月每月派發現金股息，每股普通股 0.256 美元。每月股息相當於每股 3.07 美元以上的年度股息，年增 2.4%。

Our dividend is very well covered with a payout ratio of 72% of AFFO per share for the second quarter. We anticipate approximately $120 million in free cash flow after the dividend this year, up over 15% from last year. This provides us with another source of cost-efficient capital to fund our growth while maintaining a growing and well-covered dividend.

我們的股利覆蓋率非常好，第二季每股 AFFO 的股利支付率為 72%。我們預計今年股息後的自由現金流約為 1.2 億美元，比去年增長 15% 以上。這為我們提供了另一個具有成本效益的資本來源，為我們的成長提供資金，同時保持不斷增長且覆蓋範圍廣泛的股息。

Subsequent to quarter end, we announced a monthly cash dividend of $0.256 per common share for July. The monthly dividend also equates to an annualized dividend of over $3.07 per share and represents a 2.4% year-over-year increase.

季度結束後，我們宣布 7 月每股普通股派發 0.256 美元的月度現金股息。每月股息也相當於每股 3.07 美元以上的年度股息，年增 2.4%。

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。

Thanks Peter. Operator at this time let's opened it up for questions.

謝謝彼得。現在讓我們開始提問。

(Operator Instructions)

（操作員指示）

Linda Tsai from Jeffries.

來自 Jeffries 的 Linda Tsai。

Please go ahead.

請繼續。

Hi, good morning can you give us some color about your ATM activity in 2Q and overall timing given your overnight equity offering in late April?

您好，早安，您能否向我們介紹一下您第二季度的 ATM 活動以及考慮到您在 4 月底隔夜股票發行的總體時間安排？

Hey, good morning, Linda, you're breaking up a little bit, but I think you asked about the ATM activity during the quarter, correct?

嘿，早上好，琳達，你有點分心了，但我認為你問的是本季的 ATM 活動，對嗎？

Yeah, and you're overnighting in late April.

是的，你將在四月底過夜。

Got it. Yes. The ATM activity during the quarter all predated the overnight offering in April. During the overnight offering at post commencement of launch, I promised investors that we would be inactive in the capital markets, and we were fully funded, and we held that promise.

知道了。是的。本季的 ATM 活動均早於 4 月份的隔夜發行。在上市後的隔夜發行期間，我向投資者承諾我們將不會在資本市場上活躍，並且我們資金充足，我們兌現了這一承諾。

Thanks and then I think you said acquisition cap rates would expand going forward. What's the magnitude and any highlights on the tenants you're targeting?

謝謝，我想您說過收購資本化率未來會擴大。您所針對的租戶規模有多大？有哪些亮點？

No new tenants that we're targeting. We're going to stay within our sandbox. I would anticipate Q3 again, we just started sourcing for Q4, but Q3 acquisitions to be similar to the first quarter, but larger in volume.

我們沒有針對新的租戶。我們將留在我們的沙盒內。我再次預測第三季度，我們剛開始為第四季度採購，但第三季的採購量與第一季相似，但數量更大。

Just one last one. Just given all the macro headline volatility, how are you thinking about retailer and consumer health right now? Do you have a view of whether it's improved or deteriorated year-to-date?

只剩最後一個了。考慮到所有宏觀標題波動，您現在如何看待零售商和消費者的健康狀況？您認為今年迄今的情況是改善還是惡化了？

Well, I think consumer health has undoubtably deteriorated, at least consumer sentiment. We've seen those numbers swing. I think this number this morning's jobs report most likely affirms that conclusion. Ultimately, this interest to the benefit of our portfolio, which is focused on core, durable, goods and necessity-based retailers that are biggest in the country.

嗯，我認為消費者健康狀況無疑已經惡化，至少消費者情緒是如此。我們已經看到這些數字波動。我認為今天上午的就業報告的數字很可能證實了這個結論。最終，這種利益將有利於我們的投資組合，該投資組合專注於國內最大的核心、耐用品和必需品零售商。

And that has been our focus, will continue to be our focus. We will stay away from experiential we'll stay away from discretionary and we're going to buy things as you see in this quarter, whether it's auto parts or in grocery or tire and auto service, that continue to be required by consumers to live their daily lives from the biggest and best operators that can offer the lowest price.

這一直是我們的重點，並將繼續是我們的重點。我們將遠離體驗式消費，遠離非必需消費，我們將像您在本季度看到的那樣購買商品，無論是汽車零件、雜貨、輪胎還是汽車服務，這些仍然是消費者日常生活所必需的，我們將從能夠提供最低價格的最大、最好的運營商那裡購買。

And we're seeing that throughout retailer earnings report. The biggest and best operators here are going to continue to gain market share. And simultaneously, we're going to continue to gain market share.

我們在整個零售商收益報告中都看到了這一點。這裡最大、最好的業者將繼續獲得市場份額。同時，我們將繼續擴大市場份額。

Do you think retailer health is improving, though, overall?

但您認為零售商的整體狀況正在改善嗎？

We'll see how retailer health is. I think you're going to see small retailer. I think the Big Beautiful Bill and what we're seeing going on in Washington ultimately is going to impact and tariffs are ultimately going to impact the smaller retailers smaller retailers that have to deal with tariff pass-throughs here, right, on goods that they're selling or components of the goods they're selling are going to be have to either take margin or pass on and price themselves out.

我們將觀察零售商的健康狀況如何。我想你會看到小型零售商。我認為《大美麗法案》以及我們在華盛頓看到的進展最終將會產生影響，關稅最終將影響那些必須處理關稅轉嫁的小型零售商，對他們銷售的商品或他們銷售的商品的組成部分，他們要么承擔保證金，要么轉嫁關稅，然後自行定價。

And so at the end of the day, the bigger retailers with the larger balance sheets, not dissimilar from a recessionary type environment, predicting recession, but not dissimilar, the bigger retailers with the bigger balance sheets are going to be able to have choices and alternatives, but in terms of passing through incremental costs and inflationary cost to consumers due to tariffs or to eat margin or better negotiating leverage with their ultimate suppliers.

因此，最終，資產負債表規模更大的大型零售商，與經濟衰退類型的環境並無不同，預測經濟衰退，但並非不同，資產負債表規模更大的大型零售商將能夠有選擇和替代方案，但就關稅導致的增量成本和通脹成本轉嫁給消費者或吞噬利潤或與最終供應商進行更好的談判而言。

And that is just that's a fact. This bill and the tariffs hurt main street, right? They help large retailers such as Walmart and Kroger and the biggest and best operators in the country.

這只是事實。這項法案和關稅損害了主要街道，對嗎？他們為沃爾瑪和克羅格等大型零售商以及國內最大、最好的營運商提供幫助。

Appreciate the color thank you, Joey.

欣賞顏色謝謝你，喬伊。

Ki Bin Kim from Truist Securities.

Truist Securities 的 Ki Bin Kim。

Good morning. So looking out at the investment landscape, Joey, can you just talk about some of the opportunities that you see maybe in particular, the DFP business for developments? And maybe you could just touch on volume, quality and pricing, things like that thank you.

早安.那麼，喬伊，縱觀投資形勢，您能否談談您看到的一些機會，特別是 DFP 業務的發展機會？也許您可以談談數量、品質和價格等問題，謝謝。

So the opportunities, as I mentioned in the prepared remarks, this is the most excited that I've personally been since COVID. It's the culmination of 15 years of a vision in the net lease space, everyone loves to focus only on acquisition volumes.

正如我在準備好的發言中提到的那樣，這是我個人自新冠疫情以來最興奮的機會。這是 15 年來淨租賃領域願景的頂峰，每個人都喜歡只專注於收購量。

Our acquisition volume will be strong. Our third quarter pipeline is very significant. But in terms of development in our DFP business, we're going to break ground on a minimum of $100 million in projects before year-end. It's over 10 projects that's geographically diversified with some of the country's largest retailers coming behind that is a significant shadow pipeline.

我們的收購量將會很大。我們第三季的管道非常重要。但就我們的DFP業務發展而言，我們將在年底前啟動至少1億美元的專案。它有超過 10 個項目，分佈在不同的地域，其中包括一些該國最大的零售商，這是一個重要的影子管道。

And I'll say this was the vision that we laid out 15 years ago prior to the inception of the acquisition platform when we were still a micro cap. And it was become it was to be a real estate company in the net lease space and not what everyone in the space refers to a simple spread investor.

我想說，這是我們 15 年前在收購平台成立之前提出的願景，當時我們還是一家小型股公司。它將成為一家淨租賃領域的房地產公司，而不是該領域中每個人所說的簡單的利差投資者。

Anybody can do that to different degrees of success ultimately. frankly, I'm not interested in being part of that crew. I grew up on a real estate site. This company is a real estate company. And what you're going to see is all three external growth platforms pipeline scale. The results of those pipelines being scaled and the culmination of that vision to be a full-service real estate company, the biggest retailers in the country.

任何人都可以做到這一點，並最終獲得不同程度的成功。坦白說，我對成為該團隊的一員不感興趣。我在房地產網站上長大。該公司是一家房地產公司。您將看到的是所有三個外部成長平台管道規模。這些管道不斷擴大，最終實現了成為一家提供全方位服務的房地產公司和全國最大的零售商的願景。

And can you remind us what is the type of margin or spread that you're earning on the development versus an equivalent acquisition yield?

您能否提醒我們，您在開發過程中獲得的利潤或利差與同等收購收益相比是什麼樣的？

Sure. All subject to duration and scope of the project. And so we benchmark those yields against where we can buy a like-kind asset at pricing today, not where comps are, but where we could purchase it. If we're going to take an existing building and retrofit it for a tenant, and they're going to commence paying rent in 120 days from rent commencement, that could be 50 basis points wide of where we'll acquire such an asset.

當然。一切都取決於專案的持續時間和範圍。因此，我們將這些殖利率與我們今天可以以何種價格購買同類資產進行對比，不是與同類資產的價格對比，而是與我們可以購買到同類資產的價格對比。如果我們要對現有建築進行改造以供租戶使用，並且他們將在租金開始後的 120 天內開始支付租金，那麼我們收購此類資產的幅度可能會有 50 個基點。

If it's an 18-month entitlement process and there's significant obstacles and hurdles that we're going to overcome or true organic development, that can be as wide as 150 basis points. So again, duration and scope internal allocation of time and overhead are critical there. So we're doing all different types of projects. You will see in the second half of this year, round up projects, retrofit projects. Many of them are $10 million plus, and we are very close to commencement or have commenced post June 30.

如果這是一個 18 個月的授權過程，並且存在需要我們克服的重大障礙和困難，或者實現真正的有機發展，那麼幅度可能高達 150 個基點。因此，再次強調，時間和開銷的持續時間和範圍內部分配至關重要。我們正在做各種不同類型的專案。您將在今年下半年看到匯總項目和改造項目。其中許多項目的投資金額都在 1000 萬美元以上，我們已接近開始或已於 6 月 30 日之後開始。

Okay, thank you.

好的，謝謝。

Smedes Rose from Citigroup.

花旗集團的 Smedes Rose。

Hi, thanks. On the development platform, I wanted to ask you kind of what do you think is kind of the or is there sort of an upper limit of where the investment there could go? And I guess just bigger picture. I think when people one of the reasons you traded at a pretty premium multiple is the sense that you can grow AFFO by at least kind of 4% plus a year.

你好，謝謝。關於開發平台，我想問您一下，您認為那裡的投資上限是多少？我想這只是一個更大的圖景。我認為，當人們以相當高的溢價倍數進行交易時，原因之一是感覺你可以將 AFFO 每年增長至少 4% 以上。

And that's driven by external acquisition opportunities and your spread to the cost of capital. And I'm just wondering, are you sort of suggesting that you'll be shifting more into this development platform over time because you think the spreads are better and you can grow AFFO faster that way? Or is it is just a growing kind of platform concurrent with your, call it, $1.5 billion of acquisition activity? Does that make sense. I'm just trying to figure out like the.

這是由外部收購機會和資本成本利差所驅動的。我只是想知道，您是否暗示您會隨著時間的推移將更多精力轉向這個開發平台，因為您認為這樣傳播效果更好，而且您可以通過這種方式更快地發展 AFFO？或者它只是一種與您所說的 15 億美元收購活動同時進行的不斷發展的平台？這樣有道理嗎？我只是想弄清楚。

Yes. Yes. No. Many parts. Let's first break it down. First, this is not a capital these are not capital allocation. We have a war chest of a balance sheet with $2.3 billion in liquidity and $1.3 billion of forward equity that we built for a reason. Now we will do every deal that hurdles across our investment guidance and internal underwriting standards across all three platforms.

是的。是的。不。很多部分。我們先來分解一下。首先，這不是資本，這不是資本配置。我們擁有資產負債表上的應急基金，其中包括 23 億美元的流動資金和 13 億美元的遠期股本，我們建立這些基金是有原因的。現在，我們將在三個平台上完成每筆違反我們的投資指導和內部核保標準的交易。

So again, our Q3 acquisition pipeline, we just started building Q4 is quite significant. There's no material sale leasebacks and they are a regular way. Q4, we'll see, right? But that's grows every day now. We're off to a good start since Monday. Ultimately, we achieved better returns and yields through development and our DFP program. but that will not dissuade us or not deter us from investing in acquisitions. So that is not a capital allocation decision.

因此，我們剛開始建立的 Q3 收購管道，Q4 非常重要。沒有實質的售後回租，這是一種常規方式。Q4，我們會看到，對吧？但現在這數字每天都在增加。從週一開始，我們有了一個很好的開始。最終，我們透過開發和 DFP 計劃獲得了更好的回報和收益。但這不會阻止我們或阻止我們投資收購。所以這不是一個資本配置決策。

These are the same tenants that we are targeting and working with our retail partners in the same sandbox. If you look at our earnings algorithm, which I mentioned in the prepared remarks, if you look at our five year historical AFFO growth trend, I think that's a good place to start. I'm not sure that all investors realize we're coming off a 2024 investment volume, which was the lowest level since 2019, just over $900 million due to the nature of the capital markets and our stock being in the 50s for approximately, I can't recall the first six months of last year.

這些都是我們所瞄準的租戶，並且我們在同一個沙盒中與零售合作夥伴合作。如果您看一下我在準備好的發言中提到的收益演算法，如果您看一下我們五年的歷史 AFFO 成長趨勢，我認為這是一個很好的起點。我不確定所有投資者是否都意識到，我們即將達到 2024 年的投資額，這是自 2019 年以來的最低水平，略高於 9 億美元，這是由於資本市場的性質以及我們的股票價格大約在 50 美元左右，我不記得去年前六個月的情況。

That obviously, that earns through to the following year, this year's earnings where we're at a midpoint of now of over 4%. We made a conscious decision last year to remain disciplined. We started with effectively to do nothing scenario, if people recall, we weren't going to invest inside a 75 basis point margins. We were going to go up the risk curve and invest in real estate or credit that didn't meet our historic underwriting standards.

顯然，這筆收益會持續到下一年，今年的收益目前處於中點，超過 4%。去年，我們做出了一個有意識的決定，要保持紀律。如果大家還記得的話，我們一開始就採取了實際上不採取任何行動的策略，我們不會在 75 個基點的利潤率內進行投資。我們將提高風險曲線並投資不符合我們歷史承保標準的房地產或信貸。

And then additionally, this year, we had to restart with the big last vacancies after the first exit from Chapter 11 failed with Nexus One purchasing the company. So we paused those leasing efforts in anticipation of all of the big lots being affirmed. That deal fell apart that week it was supposed to close. It decreased occupancy during the first half of this year by 40 basis points. You've seen that rebound now to our re-leasing efforts of 99.6% occupancy today at June 30.

此外，今年，由於 Nexus One 收購了該公司，我們第一次退出《破產法》第 11 章的計劃失敗了，因此我們不得不重新開始填補最後的空缺職位。因此，我們暫停了這些租賃工作，以期所有大宗土地都得到確認。這筆交易原本應該在那個星期完成，但卻失敗了。今年上半年入住率下降了40個基點。您已經看到，我們的重新出租努力已經取得了反彈，截至 6 月 30 日，入住率已達到 99.6%。

So I would look at our five year earnings algorithm. I think that's a good place to start. It is higher our historic five year earnings algorithm, excuse me. I think it is a good place to start this is a down year for us to be frank, in terms of AFFO growth. All three platforms will contribute to AFFO growth in the future. Obviously, development, if it's one of those longer duration projects takes longer to contribute.

所以我會研究我們的五年收益演算法。我認為這是一個很好的起點。對不起，這比我們歷史上五年的收益演算法還要高。我認為這是一個很好的起點，坦白說，就 AFFO 成長而言，今年對我們來說是低迷的一年。這三個平台都將為 AFFO 未來的發展做出貢獻。顯然，如果開發是一個持續時間較長的項目，那麼需要更長的時間來做出貢獻。

But again, this is not capital allocation decisions. This is not taking away from acquisitions. This is the envisioned future of having all three platforms firing on all cylinders being here and now.

但同樣，這不是資本配置決策。這並不會阻礙收購。這是對三個平台現在全速運轉的美好未來的設想。

Okay, thank you. I'll leave it. I will leave it there, but thanks for the incremental.

好的，謝謝。我就把它留下來。我會把它留在那裡，但還是感謝你的進步。

Did I miss anything there or it was a multi-part question? I know.

我是否遺漏了什麼，或者這是一個由多部分組成的問題？我知道。

No, I think it's good. I mean, I guess just on the development platform, I mean, do you see sort of an upper limit of how much you have invested there at what time? $1 billion, $500 million.

不，我認為這很好。我的意思是，我想僅在開發平台上，您是否看到您在什麼時候在那裡投資的上限？10億美元，5億美元。

What we foreshadowed and set out about six months ago was our intermediate. We called it a three year goal of putting $250 million in the ground per year. We have obviously made significant strides towards that goal. I will tell you our shadow of the shadow pipeline, we are working with new retailers that could come to fruition and have geographic territories assigned to us.

大約六個月前，我們預示並開始實施我們的中期計劃。我們將其定為三年目標，每年投入 2.5 億美元。我們顯然已朝著這一目標邁出了重大步伐。我會告訴你我們的影子管道的影子，我們正在與新的零售商合作，這些零售商可能會取得成果並為我們分配地理區域。

In fact you come to fruition. So I can't tell you about an upper limit. Every time I give a number of the size of the company or what we're able to achieve, frankly, we achieve it. So I don't want to put that out there. My goal when we launched the acquisition platform was to be $1 billion diversified net lease company. So I don't want to put that number out there.

事實上你已經實現了。所以我無法告訴你上限。每當我給出公司規模或我們能夠實現的目標的數字時，坦白說，我們做到了。所以我不想把這個說出來。當我們推出收購平台時，我的目標是成為價值 10 億美元的多元化淨租賃公司。所以我不想把這個數字公佈出來。

I think there is we've made considerable investments and we'll open to making more investments in people and processes and systems to continue to expand that. And again, I want to remind everybody, this is not speculative development, right? We are not speculating on land.

我認為我們已經進行了大量投資，我們將在人員、流程和系統方面進行更多投資，以繼續擴大投資。我再次提醒大家，這不是推測性的發展，對嗎？我們不是在炒作土地。

We're not speculating on vacant space. These are turnkey or ground lease projects that have guaranteed maximum price bids prior to us closing and returns that are effectively fixed. That is our business. It is nonspeculative in nature, and it is a margin of cushion above where we can acquire a like-kind asset.

我們不會對閒置空間進行推測。這些是交鑰匙或土地租賃項目，在我們完成交易之前保證最高價格投標，並且回報是有效固定的。這就是我們的業務。它的本質是非投機性的，並且是我們能夠獲得同類資產的緩衝邊際。

Michael Goldsmith from UBS.

瑞銀的麥可‧戈德史密斯。

Good morning. Thanks a lot for taking my question. Just to follow up on the development on the DFP as it relates to the earnings algorithm, is the point that the when you add in the development and DFP to kind of regulate acquisitions, it provides more consistency, both from like from a magnitude perspective and then also from a stability of that earnings algorithm with trying to get just trying to understand like a point with the diversification of the different of the three pronged approach here.

早安.非常感謝您回答我的問題。只是為了跟進與收益演算法相關的 DFP 的發展，重點是當您添加開發和 DFP 來規範收購時，它提供了更多的一致性，無論是從幅度角度還是從收益演算法的穩定性來看，都試圖理解這裡的三管齊下方法的不同之處的多樣化。

I would think of it quite simply. We have one business that everyone focuses on net lease, one line of business, external growth, acquisitions. And that's what everyone wants to focus on in net lease acquisition volume. Our acquisition volume will be very strong. At the same time, we have been working for years now to build and scale development and then our development funding platform. These are just additives. That's all they are.

我會把這想得很簡單。我們只有一項業務，每個人都專注於淨租賃、一條業務線、外部成長和收購。這也是每個人都希望關注的淨租賃收購量。我們的收購量將會非常強勁。同時，我們多年來一直致力於建構和擴大開發以及開發融資平台。這些只是添加劑。他們就是這樣的。

They are additive, both qualitative, excuse me, and quantitative and they ultimately build out a holistic relationship with retailers that we are a critical real estate partner that we are working along multiple different fronts with them, and we are a differentiated real estate company. That has never been done in the net lease space. again, the spread investors, anyone can do it.

它們是附加的，既是定性的，對不起，也是定量的，它們最終與零售商建立了一種整體關係，我們是他們在多個不同方面合作的重要房地產合作夥伴，我們是一家差異化的房地產公司。這在淨租賃領域從未發生過。再說一次，對於利差投資者來說，任何人都可以做到。

We have no interest in being part of that. Our goal, when we created our one-page operating strategy in 2009 over 15 years ago, was to be a differentiated real estate company in the net lease space. I am more than proud to say that this team has now achieved that goal.

我們對此不感興趣。15 年前，當我們在 2009 年制定一頁紙的營運策略時，我們的目標是成為淨租賃領域的差異化房地產公司。我非常自豪地說，這個團隊現在已經實現了這個目標。

We are going to see in the coming months the fruition of the results of all those efforts.

我們將在未來幾個月看到所有這些努力的成果。

And just as a follow-up, you've talked a lot in the past about the importance of scale and grocery. Last quarter, you did a sale leaseback of an Albertson's backed by Albertsons and now you're taking on more Albertsons with this portfolio deal. So does that kind of put like does that reflect a view that Albertsons kind of fits into that the scale that you're looking for in the stability within grocery that you're interested in? Thanks.

作為後續問題，您過去曾多次談論規模和雜貨的重要性。上個季度，你們完成了由 Albertsons 支持的 Albertson's 的售後回租交易，現在你們又透過這筆投資組合交易接手更多的 Albertsons。那麼，這是否反映了這樣一種觀點：Albertsons 符合您在雜貨店內尋找的穩定性標準？謝謝。

Just one correction. This was our first material. We did not do a sale leaseback. We've never done a sale leaseback with Albertsons. This was our first we've one Albertsons, I believe, in the portfolio prior. This was our first transaction with on Albertsons leases. It was from a third-party elderly women in her 80s, out of California, whose family was historically in multifamily development and then 1031 into a net lease assets.

僅一處更正。這是我們的第一份資料。我們沒有進行售後回租。我們從未與 Albertsons 進行過售後回租交易。我相信，這是我們之前投資組合中第一次有一家 Albertsons。這是我們第一次與 Albertsons 租賃進行交易。這是來自加州的一位 80 多歲的第三方老年婦女打來的，她的家族歷史上一直從事多戶住宅開發，後來又透過 1031 變成了淨租賃資產。

The $75 million diversified portfolio had, I believe it was 5 Albertsons, Peter, 5 Albertsons in it. It is aligned with our thesis of investing in the biggest and best grocers in the country. Albertsons is still sub-1% of total rents here, total ABR. Obviously, Albertsons is a BB+ company, the third largest grocer in the country with approximately almost 2,300 stores.

我相信，這個價值 7500 萬美元的多元化投資組合中有 5 家 Albertsons，Peter，還有 5 家 Albertsons。這與我們投資國內最大、最好的雜貨店的論點一致。Albertsons 的租金總額 (ABR) 仍佔這裡總租金的 1% 以下。顯然，Albertsons 是一家 BB+ 公司，是美國第三大雜貨店，擁有約 2,300 家門市。

As an aside, our peers are investing in small regional and local operators and quoting $1 billion in revenue for a grocer in a 2% business, which has obviously challenges right now because of just consumer sentiment like we've talked about, we're going in the opposite direction once again.

順便說一句，我們的同行正在投資小型區域和本地運營商，並為 2% 業務的雜貨商提供 10 億美元的收入，這顯然目前面臨著挑戰，因為正如我們所討論的，消費者情緒不佳，我們再次朝著相反的方向發展。

We are building what we think is we have built what we think is the best grocery portfolio in the country. Albertsons is a minority piece of that. The stores we acquired had average sales of $740 approximately per square foot, rent to sales below 2%. They are very strong performers. Weighted average lease term of approximately 14 years, and they're paying below $14 per square foot on average. Geographically diversified, Texas, Illinois and Colorado.

我們正在建立我們認為的國內最好的食品雜貨組合。Albertsons 只是其中的少數股份。我們收購的商店平均銷售額約為每平方英尺 740 美元，租金與銷售額比低於 2%。他們的表現非常出色。加權平均租賃期限約為 14 年，平均每平方英尺支付低於 14 美元。地域分佈多樣化，包括德州、伊利諾州和科羅拉多州。

This is wholly consistent with our white paper on grocery that we're going to invest in the country's largest grocers, again in a 2% business, at the 2% margin business, have the scale and the balance sheet to win on price. Otherwise, we think there's going to be significant fallout in the grocery space from those local operators with only $1 billion in revenue. And look do the math, $1 billion in revenue at a 2% business is $20 million in EBITDA.

這與我們的食品雜貨白皮書完全一致，我們將投資全國最大的食品雜貨商，同樣投資於 2% 的業務，以 2% 的利潤率，擁有規模和資產負債表以在價格上取勝。否則，我們認為，那些收入僅有 10 億美元的本地業者將對食品雜貨領域造成嚴重影響。算一下，2% 的業務收入為 10 億美元，EBITDA 為 2,000 萬美元。

Start doing sale leasebacks and guess what, your lease adjusted leverage in your cash flow starts to deteriorate pretty quickly. And then I mentioned in the prepared remarks, this number the depression of IG and then investment grade during the quarter and the yield in the quarter due to the sourcing of the soft market portfolio will ultimately be enhanced through the sale of the Dutch Brothers coffee shops at five caps that we'll dispose of that were included in the portfolio, the corporate Jiffy Lube's that were included in the portfolio that are noncore and 1031-like assets that we will dispose. And ultimately, our returns for the quarter and investment grade will be more aligned with this historic standards.

開始進行售後回租，你猜怎麼著，你的現金流中的租賃調整槓桿開始迅速惡化。然後我在準備好的評論中提到，這個數字是本季度 IG 和投資級的下滑，而由於軟市場投資組合的採購，本季度的收益率最終將通過出售荷蘭兄弟咖啡店（我們將處置投資組合中的五家公司）而得到提高，投資組合中的 Jiffy Lube 公司是非核心資產和類似 1031 的資產，我們將處置這些資產。最終，我們本季的回報和投資等級將更符合這項歷史標準。

Thanks for that. Good luck in the back.

謝謝。祝你後面好運。

Appreciate it, thank you.

非常感謝，謝謝。

Your next question comes from the line of Jana Galan with Bank of America. Please go ahead.

您的下一個問題來自美國銀行的 Jana Galan。請繼續。

Thank you. Good morning maybe a question for Peter. On the bad debt in the guidance of 25 to 50 bps, is there anything identified? Or does that just give you some room on the potential that the 0.4 of expirations doesn't renew?

謝謝。早安，我想問彼得一個問題。關於壞帳率在25至50個基點的指導意見中，有什麼確定的嗎？或者這只是給你提供了 0.4 到期日不會續簽的可能性？

Thanks for the question, Jana. I'd say, through the first half of the year, the credit loss and again, in my prepared remarks, I mentioned that this is a fully loaded credit loss for us, inclusive of not just credit events and lost rental revenue but any other OpEx or expenses that we're responsible for during the downtime of an asset that's vacant for any reason related to credit or otherwise. And in the first half of the year, we realized credit loss relatively in line with the lower end of that 25 to 50 basis point range, so closer to the 25 basis point range.

謝謝你的提問，Jana。我想說，在整個上半年，信貸損失，以及在我準備好的發言中，我再次提到，這對我們來說是一筆滿負荷的信貸損失，不僅包括信貸事件和租金收入損失，還包括我們在因信貸或其他原因而空置的資產停工期間負責的任何其他運營支出或費用。今年上半年，我們實現的信用損失相對符合25至50個基點範圍的下限，因此更接近25個基點的範圍。

As we look to the back half of this year, I would say that based on known credit issues in the portfolio, we would anticipate operating closer to that 25 basis points or experiencing credit loss closer to that 25 basis points. So at the lower end or the higher end of the range at 50 basis points, that includes unknown credit events or cushion of approximately 20 to 25 basis points.

展望今年下半年，我想說，根據投資組合中已知的信用問題，我們預計營運將接近 25 個基點，或信用損失將接近 25 個基點。因此，在 50 個基點的範圍的低端或高端，包括未知的信用事件或大約 20 到 25 個基點的緩衝。

And as Peter let me just chime in. As Peter articulated in the prepared remarks, our definition of credit loss is fully loaded. So credit losses any and all events where a tenant does not pay rent, plus all of the nets being reimbursed not reading reimbursed, excuse me, expense coming out from Agree Realty, right, and then maintaining the building itself during that period of vacancy. So when this building is vacant, you have to temper it, heat and cool it.

正如彼得要我插嘴的。正如彼得在準備好的發言中闡明的那樣，我們對信用損失的定義是完全錯誤的。因此，在租戶不支付租金的所有事件中都會產生信用損失，再加上所有補償的網絡（不是讀作補償），對不起，這些費用來自 Agree Realty，對吧，然後在空置期間維護建築物本身。因此，當這棟建築空置時，你必須對其進行調節、加熱和冷卻。

We don't want mold. We don't want frozen pipes. You got to arm it. You have fire suppression, you have maintenance of that building in order to release it. So it is fully loaded. And so once again, net lease companies have been very creative in their definition of credit loss. Now credit loss is due specifically to a credit event, and then it's pro forma for the lease-up with the footnote one and footnote two.

我們不要黴菌。我們不希望管道凍結。你必須武裝它。你必須採取滅火措施，你必須對建築物進行維護，以便釋放火災。因此它是滿載的。因此，淨租賃公司對信用損失的定義再次顯得非常有創意。現在，信用損失是具體由於信用事件造成的，然後它是租賃的形式，帶有腳註一和腳註二。

We are not going to go down that road. We are going to give, as Peter said, the true economic impact, 25 basis points to our total revenues for the year. And that is outflows as well as the lack of inflows to make this is real estate economic underwriting. This is not putting things into position for investors to have to parse through words and guests in fancy decks.

我們不會走那條路。正如彼得所說，我們將把真正的經濟影響力計入我們今年的總收入的 25 個基點。這就是資金流出以及資金流入不足所造成的房地產經濟承保。這並不是說投資人必須仔細分析華麗的講台上的文字和嘉賓。

John Kilichowski with Wells Fargo.

富國銀行的 John Kilichowski。

Hi, This is Sheryl on for John. Could you provide us an update on your watch list? And what is baked in your guide in terms of going in yields?

大家好，我是 Sheryl，代表 John。您能否向我們提供您的關註名單的最新情況？您的指南中對收益有何規定？

Our watch list is very de minimis. At Home was clearly on our watch list. I suggested during the prepared remarks, I fully anticipate the two step into bankruptcy like we've seen Chapter 11, the unsecured creditors have no recoveries they emerge like Party City, JOANN, Rite Aid and then there's no ongoing business. And so the unsecured creditors who take equity move their nonrecoveries, then liquidate the company. That's under contract for a seven flat.

我們的監視名單非常少。At Home 顯然在我們的關註名單上。我在準備好的發言中表示，我完全預料到這兩家公司會像第 11 章那樣進入破產程序，無擔保債權人無法獲得追償，他們就像 Party City、JOANN、Rite Aid 那樣出現，然後就沒有持續的業務了。因此，獲得股權的無擔保債權人會轉移未收回的債權，然後清算公司。這是七套公寓的合約。

We could have worked through that, redeveloped it, frankly, a better use of our time given the aggressive offer we took there. So outside of that, our watch list is very immaterial frankly, at this point. We continue to monitor the couple of movie theaters we have in the portfolio. That's really that's it. I mean, we pared that back to 25 basis points, and that was really comprised of big loss this year, right, during the first half of the year.

坦白說，我們本可以解決這個問題，重新開發它，考慮到我們在那裡接受的積極報價，這樣可以更好地利用我們的時間。因此，除此之外，坦白說，目前我們的觀察名單並不重要。我們將繼續關注我們投資組合中的幾家電影院。確實就是這樣。我的意思是，我們將其削減至 25 個基點，這確實造成了今年上半年的巨大損失。

Yes. I think the watch list to Joey's point, historically, the two biggest components there were At Home at Big Lots. And with those now resolved, the remaining credit issues in the portfolio are fairly de minimis one-offs, and there's nothing on the horizon of any material size that we see as imminent in the portfolio continues to perform very well.

是的。我認為，從歷史上看，喬伊所提到的觀察名單中最大的兩個組成部分是 At Home at Big Lots。現在這些問題已經解決，投資組合中剩餘的信貸問題都只是相當小的一次性問題，而且我們認為投資組合中不會出現任何即將發生的重大問題，因此投資組合將繼續表現良好。

That's helpful. And then one quick one on big lots. Can you remind us how many assets were sold or released? And what was the final outcome

這很有幫助。然後對大批量進行快速檢查。您能提醒我們有多少資產被出售或釋放嗎？最終結果如何

Yes, we have one or two left. One has been approved by we will disclose next quarter by a national retailer, you're all familiar with, that we will release to. Cedar Park, Texas was re-leased to Aldi, as we mentioned in the prepared remarks with a significant lift in net effective rent on a brand-new term.

是的，我們還剩下一兩個。其中一個已經獲得批准，我們將在下個季度由一家全國性零售商披露，你們都熟悉，我們將發布。正如我們在準備好的評論中提到的那樣，德克薩斯州雪松公園被重新租給了 Aldi，全新租期的淨有效租金大幅上漲。

Manassas, Virginia was released with a significant rent increase on a net effective basis. We disclosed that, obviously, in the prepared remarks. We have one or two. We're continuing again to work through, but we will work through those very quickly here.

維吉尼亞州馬納薩斯的租金在淨有效基礎上大幅上漲。顯然，我們在準備好的發言稿中披露了這一點。我們有一兩個。我們將繼續進行工作，但我們很快就會在這裡完成它們。

Brad Heffern with RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的布拉德‧赫弗恩 (Brad Heffern)。

Yeah, hi, thanks everybody. Joey, in the prepared comments, you talked about the highest level of demand for brick-and-mortar locations since the GFC. Obviously, we're still in a pretty uncertain environment, the potential tariff headwinds for retailers. I'm curious why you think that demand is so strong?

是的，嗨，謝謝大家。喬伊，在準備好的評論中，你談到了自全球金融危機以來對實體店的需求達到最高水平。顯然，我們仍然處於一個相當不確定的環境中，零售商面臨潛在的關稅阻力。我很好奇您認為需求為何如此強勁？

Brad, we haven't seen any retailer pull back, and it's not that they won't potentially do so due to the tariff noise, headwinds and the 85 different dates that have been handed out by the White House. We just haven't seen the biggest retailers in this country, and it's aligned with our thesis going back a decade in our white papers. I encourage everyone to look at them. There's two drivers here. One is the bigger operators are taking share.

布拉德，我們還沒有看到任何零售商撤退，而且，由於關稅噪音、逆風以及白宮公佈的 85 個不同日期，他們也有可能撤退。我們只是還沒有看到這個國家最大的零售商，這與我們十年前在白皮書中提出的論點一致。我鼓勵每個人都去看看它們。這裡有兩名司機。一是大型業者正在搶佔市場份額。

Two, the bigger operators now all realized, and you've probably heard me say before that the store is not a spoke, it's the hub, right? free delivery and free returns same day don't work from an EBITDA perspective. Not unless you got EWS backing it up in cloud computing and advertising revenue and ancillary sources of revenue. But from a selling goods perspective, that doesn't work.

二，現在較大的業者都意識到了，而且你可能以前聽我說過，商店不是輻條，而是中心，對嗎？從 EBITDA 角度來看，當天免費送貨和免費退貨是行不通的。除非您獲得 EWS 在雲端運算、廣告收入和輔助收入來源的支援。但從銷售商品的角度來看，這是行不通的。

And so retailers have all realized that. We have never seen Walmart, Home Depot, Target, Lowe's, all growing their store count. It's all public information out there plus, plus, plus since prior to the great financial crisis. Sam's Club, Costco, you can keep going. All of these retailers invested for, let's call it, a seven year period in distribution in fulfillment and logistics. And then they realized the investments are great. They make us more efficient, but guess what, we still lose money.

所以零售商都意識到了這一點。我們從未見過沃爾瑪、家得寶、塔吉特、勞氏等公司增加其門市數量。這些都是公開的訊息，而且是在金融危機爆發之前就已經有的。山姆會員店，好市多，可以繼續去。所有這些零售商都在配送和物流方面進行了為期七年的投資。然後他們意識到這些投資是偉大的。它們使我們更有效率，但你猜怎麼著，我們仍然虧損。

We need the customer to get their but in the car and try to get them to pick up those goods from the store rather than delivering them to their house or free because they're accustomed to it now. And if we can get them to the store to pick up those goods or return those goods, which is an absolute disaster, right? I mean those get palleted and sold by the pound of returned goods, we've actually done it as an exercise here from Amazon.

我們需要顧客把他們的商品放在車上，並嘗試讓他們從商店取貨，而不是送貨上門或免費送貨，因為他們現在已經習慣了。如果我們讓他們到商店取貨或退貨，那絕對是一場災難，對吧？我的意思是，這些退貨會被裝上托盤，並按磅數出售，我們實際上已經在亞馬遜上進行了這樣的練習。

Those returned goods return them in store and maybe repurchase something else. So we've had a number of retailers speak to the team here. We have more retailers, national retailers, had the real estate departments coming in and speaking to the team here that we're partners with and articulating how those impacts on the business. The other piece to it is, specifically in some in some sectors, let's use auto parts. Auto parts, we have seen the rise of the hub store.

那些退回的商品可以退回商店並可能重新購買其他商品。因此，我們讓許多零售商與這裡的團隊進行了交談。我們有更多的零售商、全國零售商，以及房地產部門的人員來到這裡與我們合作的團隊交談，並闡明這些部門對業務的影響。另一點是，具體在某些領域，我們會使用汽車零件。汽車零件方面，我們看到了輪圈店的崛起。

We have a white paper on this, I believe as well, Peter, right? The rise of the hub store. The rise of the hub store is to fulfill commercial tired auto service, collisions and dealerships demand for a part within 30 minutes. That is impossible from a central distribution facility. So auto parts retailers realize that the standard stores of 7,000 feet can't carry enough SKUs. So they need hub stores of 20 and Mega Hub stores up to 50,000 feet, which are effectively storefronts with warehouses in the back to carry all of the different SKUs and to get that car off of the lift and get that part there within 30 minutes. That's the business.

我相信我們也有關於此的白皮書，彼得，對吧？樞紐商店的崛起。中心店的興起是為了在 30 分鐘內滿足商業輪胎汽車服務、碰撞和經銷商對零件的需求。對於中央配送設施來說這是不可能的。因此，汽車零件零售商意識到 7,000 英尺的標準商店無法容納足夠的 SKU。因此，他們需要 20 家樞紐店和麵積達 50,000 英尺的大型樞紐店，這些店實際上是店面，後面設有倉庫，用於存放所有不同的 SKU，並將汽車從升降機上卸下，並在 30 分鐘內將零件送到那裡。這就是生意。

So we see all of these different areas convenience stores, let's take that. The rise of the large-format convenience stores, which we're obviously very active in. The convenience stores are taking share, not because there's more fuel being pumped in this country, not more cars on the road. Convenience stores are taking share from fast food restaurants.

因此，我們看到了所有這些不同區域的便利商店，讓我們來看看。大型便利商店的興起，我們顯然對此非常活躍。便利商店正在佔領市場份額，這並不是因為這個國家的燃料消耗量增加了，也不是因為路上的汽車數量增加了。便利商店正在搶佔快餐店的市場份額。

They're taking share from the front end of pharmacies. They're taking share from convenience items. You run in grad milk, you'll overpay instead of go into Walmart, Kroger or Albertsons and navigate 100,000 or 200,000 square foot store. And they're taking share due to their service and offerings, food and beverage for off-premises consumption, primarily breakfast and lunch.

他們正在搶佔藥局前端的市場份額。他們正從便利品中分得一杯羹。如果您經營畢業牛奶，您會多付錢，而不是去沃爾瑪、克羅格或艾伯森，並瀏覽 100,000 或 200,000 平方英尺的商店。他們透過提供服務和產品、供店外消費的食品和飲料（主要是早餐和午餐）佔據了市場份額。

And so there's different drivers here, but it's about convenience, time and EBITDA at the end of the day.

這裡有不同的驅動因素，但最終還是與便利性、時間和 EBITDA 有關。

Okay. Maybe one for Peter on the guidance. The implication is a decent sized ramp in AFFO per share in the second half of the year. Is there anything lumpy on the expense side that maybe is driving some of that? Or is that purely just the ramp in acquisition volumes?

好的。也許可以為彼得提供指導。這意味著下半年每股 AFFO 將大幅增加。費用方面是否存在一些不穩定因素，可能是造成這種現象的原因之一嗎？或者這只是收購量的成長？

No. I think that's largely driven by the ramp in acquisition volume. I also mentioned in my prepared remarks, the treasury stock method dilution and our assumption for roughly $0.01 of impact there for full year 2025. And versus $0.02 last quarter, but there's nothing lumpy from an expense perspective anticipated in the back half of the year.

不。我認為這主要是由於收購量的成長所致。我在準備好的發言中也提到了庫存股法稀釋以及我們對 2025 年全年影響約為 0.01 美元的假設。雖然上一季為 0.02 美元，但從預計下半年的支出角度來看，並沒有太大的變化。

Wes Golladay with Baird.

韋斯·戈拉迪 (Wes Golladay) 和貝爾德 (Baird) 在一起。

Hey, good morning, guys. I just want to go back to the comment of $100 million in starts and getting $200 million into the ground. Can you clarify if that was for development or development and funding? And then for these assets you're going to develop, would you plan on owning them afterwards?

嘿，大家早安。我只是想回到那個花費 1 億美元啟動並最終投入 2 億美元的評論。您能否澄清一下這是為了開發還是開發和資助？那麼對於您要開發的這些資產，您打算之後擁有它們嗎？

We do plan it over them, everything all pieces of real data for sale ultimately we have no intention of selling. We're not doing them, we're not doing these projects in a TRS or off balance sheet in any manner. We anticipate again starting over $100 million in projects between June 30 and the end of the year.

我們確實對它們進行了計劃，所有出售的真實數據最終我們無意出售。我們不會做這些項目，我們不會以任何方式在 TRS 或表格外做這些項目。我們預計在 6 月 30 日至年底期間將再次啟動超過 1 億美元的計畫。

Okay. And then you did mention some.

好的。然後你確實提到了一些。

At minimum.

至少。

Okay. And you also mentioned another version of ARC coming out next year. Can you elaborate on what's going to be in the latest addition.

好的。您還提到了明年將推出另一個版本的 ARC。能詳細說明一下最新新增的內容嗎？

Yeah, Peter understands technology way more than I do. I drew it on a piece of paper originally. Peter has handled this from there, but I will mention we have now fully built out our IT team here. and we're thrilled with that team and the partners we're working with. Peter, you're way smarter here than I'm.

是的，彼得比我更了解科技。我原本把它畫在一張紙上。彼得從那時起就處理了這個問題，但我要說的是，我們現在已經在這裡完全建立了我們的 IT 團隊。我們對這個團隊和我們正在合作的合作夥伴感到非常興奮。彼得，你比我聰明多了。

Sure. Specific to ARC, I think the primary goal of that project is to build ARC on effectively a new backbone or system that will allow for more self-service and more dynamic reporting that can be used across the organization. and will drive efficiencies in that we can manipulate the data more and drive to the decisions that we're trying to make across the organization.

當然。具體到 ARC，我認為該專案的主要目標是有效地在新的主幹或系統上建立 ARC，以允許在整個組織內使用更多的自助服務和更動態的報告。並將提高效率，因為我們可以更多地處理數據並推動我們試圖在整個組織內做出的決策。

I think in addition to ARC, Joe mentioned some of the industry-leading efficiencies that we've gained through the implementation of AI. We implemented AI for lease abstraction about three years ago now. And we've been using that tool to abstract hundreds of leases that we onboard each year with a high degree of accuracy that has increased over time. the accuracy and the tool has resulted in significant time savings for the team.

我認為除了 ARC 之外，Joe 還提到了我們透過實施 AI 獲得的一些領先業界的效率。大約三年前，我們實施了租賃抽象的人工智慧。我們一直在使用該工具來抽象化每年我們承接的數百份租約，其準確性隨著時間的推移而不斷提高。這種準確性和工具為團隊節省了大量時間。

More recently, we've launched an AI tool to complete what we call our lease underwriting checklist which compares our initial underwriting to the lease and confirms there are no significant issues. With that tool, it used to take an attorney roughly 4 hours to complete each one of those, and that's now a matter of seconds.

最近，我們推出了一款人工智慧工具來完成所謂的租賃核保清單，該清單將我們的初步核保與租賃進行比較，並確認沒有重大問題。使用該工具，律師過去需要大約 4 個小時才能完成每項工作，而現在只需幾秒鐘。

So we've seen hundreds of hours of time savings there, 400-plus hours from that on an annual basis, hundreds of thousands of dollars of savings just from the implementation of that tool. And then looking forward, I think we'll look to combine AI and incorporate more of that into or from a decision-making process moving forward.

因此，我們已經節省了數百小時的時間，每年節省了 400 多個小時，僅透過實施該工具就節省了數十萬美元。展望未來，我認為我們將尋求結合人工智慧，並將其更多地融入未來的決策過程中。

So Wes, we ran a test. Our IT team here ran a test looking backwards into deals that were approved in investment committee, and this is far out this component. But I think it should demonstrate the future of what AI is capable of. Our team ran a test the deals that were brought into Investment Committee and what they would be approved with the percentage of approval using AI.

所以韋斯，我們進行了測試。我們這裡的 IT 團隊進行了一項測試，回顧了投資委員會批准的交易，而這遠遠超出了這一部分。但我認為它應該展示人工智慧的未來能力。我們的團隊使用人工智慧對提交給投資委員會的交易及其批准率進行了測試。

They were 90% accurate, and there was just a test. It was a game to see they could replicate investment committee's approval. We're using AI today, as Peter mentioned, for functional tasks and driving efficiencies. I want to take legal costs and cut them in half.

他們的準確率高達 90%，而且只是進行了一次測試。這是一場遊戲，看看他們能否複製投資委員會的批准。正如彼得所提到的，我們今天正在使用人工智慧來完成功能性任務並提高效率。我想將法律費用削減一半。

That's my goal here. We have a great team and a great external team, but we don't need warriors extracting leases, summarizing leases. We can now do them in 15 seconds using artificial intelligence. That is generative AI learning. And so the new arc, which will be unveiled next year, 3.0, and I look forward to unveiling it will enable our full data warehouse and multiple tools to be layered on in the future.

這就是我的目標。我們擁有一支優秀的團隊和一支優秀的外部團隊，但我們不需要戰士提取租約、總結租約。現在我們可以利用人工智慧在 15 秒內完成這些任務。這就是生成式人工智慧學習。因此，新的 Arc 3.0 將於明年發布，我期待它的發布將使我們的完整資料倉儲和多種工具能夠在未來分層。

Alright thanks a lot for that.

好的，非常感謝。

Rich Hightower with Barclays.

巴克萊銀行的 Rich Hightower。

Hey, good morning, guys. Thanks for taking the question here. Maybe just to shift gears a little bit on the asset management side of things, I guess, traditionally speaking, one of the trade-offs with very high credit quality in the tenant and low escalators would be well, one would be low escalators and two would be relatively short Walt.

嘿，大家早安。感謝您在這裡提出這個問題。也許只是為了在資產管理方面稍微轉變一下思路，我想，從傳統上來說，租戶信用質量非常高和自動扶梯較低的權衡之一就是，一是自動扶梯較低，二是沃爾特相對較短。

And so just as you renewing leases and just tell us about any changing parts of the lease structure that might be interesting, especially given just the shortage of good retail space in this country at this point.

因此，就像您續簽租約並告訴我們租賃結構的任何變化部分可能很有趣一樣，特別是考慮到目前這個國家優質零售空間的短缺。

Well, the shortage of space due to construction costs in this country, we see and I think the shopping center reporters have demonstrated this, and we've demonstrated with our releasing efforts is the second-generation space that is A, B space is in high demand. That said, C space functional obsolescence is a challenge, single-purpose boxes will always be challenges.

嗯，我們看到了這個國家由於建築成本而導致的空間短缺，我認為購物中心的記者已經證明了這一點，而且我們通過發布努力已經證明了第二代空間 A、B 空間的需求量很大。話雖如此，C 空間功能過時是一個挑戰，單一用途的盒子永遠是一個挑戰。

I'll take issue with the first statement investment the portrayal that investment grade has shorter weighted average lease terms and or less escalators. We have effectively net of credit loss, approximately 100 basis points of internal growth.

我對第一份投資聲明提出異議，該聲明稱投資等級債券的加權平均租賃期限較短，且自動扶梯較少。我們實際上已經扣除了信貸損失，內部成長了約 100 個基點。

When you look at the totality of those circumstances, I don't think that is frankly economically true. So anyone can sign a sale leaseback if you're a private operator or a public operator for 30 years, 50 years. Remember, Nick scores had Red Lobster signed 25-year sale leasebacks. Anybody can sign.

當你全面審視這些情況時，我認為坦白說，這在經濟上並不正確。因此，無論您是私人業者還是公共營運商，任何人都可以簽署為期 30 年或 50 年的售後回租協議。請記住，尼克斯曾與紅龍蝦公司簽署了 25 年的售後回租協議。任何人都可以簽名。

Blast from the past.

來自過去的衝擊。

Blast from the past, I guess what, a lot of this stuff is coming back now into net lease with a lot of the private credit and the private capital that's flowing in. you can sign a sale leaseback on your house. You can have escalators. You can sign a sale-leaseback at anything escalators. You can do it for 50 years. The piece of paper isn't worth what it's printed on though.

我想，隨著大量私人信貸和私人資本的流入，現在很多東西又回到了淨租賃的形式。你可以簽署一份關於你房子的售後回租協議。你可以安裝自動扶梯。您可以在任何自動扶梯上簽署售後回租協議。你可以堅持 50 年。但這張紙並不值錢。

Ultimately, this is real estate and can the tenant ultimately afford the compounding impacts of those annual escalators that you're going to write into that lease. Sale leasebacks with noncredit tenants are simply financial structures that are akin to a lender is all it is. It is not our business.

歸根結底，這是房地產，租戶最終能否承受您在租約中寫入的那些年度自動升降機的複合影響。與無信用租戶的售後回租只是類似貸款人的金融結構。這不關我們的事。

And when we talk about sale leasebacks being an alternative form of financing for these noncredit small, middle market, private equity sponsored operators or small private operators. It is not an alternative form of financing. There is no other place where you can pull out 100% of the proceeds from the building. If private equity sponsored car wash operator, and I go to a conventional lender.

當我們談論售後回租時，它成為這些非信貸小型、中型市場、私募股權贊助的營運商或小型私人營運商的一種替代融資形式。它不是一種替代的融資形式。沒有其他地方可以讓你從建築中提取 100% 的收益。如果私募股權贊助洗車經營者，我會去找傳統貸款人。

And I say I want a first mortgage. Maybe they give me 50%, maybe they give me 60%. Then I go and I try to get mezz on that real estate. Maybe if I'm really lucky, I can ramp that to those two combined to 75%. Good luck on that, it can be expensive.

我說我想要第一筆抵押貸款。也許他們會給我 50%，也許他們會給我 60%。然後我去嘗試在那處房地產上獲得收益。也許如果我真的很幸運的話，我可以將這兩者加起來提高到 75%。祝你好運，這可能會很昂貴。

Who's filling the last 25% in that primary method of financing this real estate? A hard money lender, a bookie. Nobody, right? And so what we see is alternative markets are in alternative markets to finance these assets. And look, what we've seen in spaces like the car wash space, the experiential space, they are primary assets that don't provide for risk-adjusted returns that are ultimately appropriate.

誰來填補該房地產主要融資方式的最後 25%？硬通貨放貸者，莊家。沒人吧？因此，我們看到的是替代市場在替代市場中為這些資產提供融資。看看我們在洗車空間、體驗空間等領域看到的，它們都是無法提供最終適當的風險調整報酬的主要資產。

If I'm going to finance a full capital stack for any of those types of uses, I want a 14 cap but I want my money out in 6.5 years. And I wouldn't even do it there. I don't think I'd rather just run the business myself but on the equity.

如果我要為任何一種用途籌集全部資本，我想要 14 個上限，但我希望在 6.5 年內取出我的錢。我什至不會在那裡做這件事。我認為我寧願不自己經營企業，而是靠股權。

Helpful comments. It'd be fun to get you on another panel with your peers and kind of go at it from multiple directions.

有用的評論。讓你和你的同行一起參加另一個小組討論並從多個方向進行討論會很有趣。

Happy to do it. By the way, happy to do so. I think it would be educational for investors. I think comparing and contrasting rather than isolation in earnings calls and in meetings, debating these things is healthy for investors. The siloed nature of what has transpired in our subsector as well as read them generally does not give investors a full picture of and transparency.

很開心能做到。順便說一句，我很高興這樣做。我認為這對投資者來說很有教育意義。我認為，在收益電話會議和會議上進行比較和對比而不是孤立地討論這些事情對投資者來說是有益的。我們的子行業所發生的事情的孤立性質以及閱讀它們通常無法為投資者提供完整的畫面和透明度。

You combine that with reporting, as I mentioned prior, that has all types of discrepancies and footnotes and pro forma. This is a simple business. The second slide of our deck is consistency. We've done the same thing since we started this acquisition platform in 2010, and I took over operating this company, and we're going to continue to do it, making nuanced arguments.

正如我之前提到的，將其與報告結合起來，就會發現其中存在各種類型的差異、腳註和形式發票。這是一件簡單的事。我們的簡報的第二張投影片是一致性。自 2010 年啟動這個收購平台以來，我們一直在做同樣的事情，自從我接手經營這家公司以來，我們將繼續這樣做，提出細緻的論點。

Let's do them on merit let's debate the merits and considerations and ultimately let investors decide for themselves. But I will stand here and I will say buying those types of uses as a primary source of real estate financing with a seven handle in front of it, I do not believe is risk-adjusted appropriate and I'm happy to articulate that further in any form.

讓我們根據優點來做這些事情，讓我們討論優點和考慮因素，最終讓投資者自己決定。但我會站在這裡說，購買這些類型的用途作為房地產融資的主要來源，前面有七個句柄，我不認為風險調整是合適的，我很樂意以任何形式進一步闡明這一點。

James Kammert with Evercore ISI.

Evercore ISI 的 James Kammert。

Hi, good morning thank you, Joey, just revisiting one more time to ramp in development activity. Would you say you're more likely just planting developer relationships that the retailers had or more strategically are you used to planting more of the in-house development capability at those retailers?

嗨，早安，謝謝你，喬伊，我只是再來一次，以加強開發活動。您是否認為您更有可能只是建立零售商已有的開發人員關係，或者從策略角度而言，您是否習慣於在這些零售商中建立更多的內部開發能力？

That's an interesting question, Jim. We are definitely supplanting developers that can no longer perform due to capital constraints and volatility. There are also new relationships that we formed. I'm trying to some retailers have internal capabilities.

這是一個有趣的問題，吉姆。我們肯定會取代那些由於資金限制和波動而無法繼續經營的開發商。我們也建立了新的關係。我正在嘗試讓一些零售商具備內部能力。

We have not seen them give up those internal capabilities, frankly, retailers are trying to scale their internal capabilities to be able to execute on their store growth plans to the Street generally. So it's not supplanting retailer self-development, it is taking share.

我們並沒有看到他們放棄這些內部能力，坦白說，零售商正在試圖擴大他們的內部能力，以便能夠向華爾街執行他們的商店成長計畫。因此，它不會取代零售商的自我發展，而是搶佔市場份額。

That's interesting. And then what would you say have you canvassed. All of your retailers said, "Hey, we can do this for you." Or have you still have new tenants that haven't really an approach and really explain to them (inaudible) full capabilities? Just meaning how far this could expand for you?

那很有意思。那麼，您會說什麼呢？所有零售商都說：“嘿，我們可以為您做到這一點。”或者您仍有新租戶尚未真正採取方法並真正向他們解釋（聽不清楚）全部功能？這只是意味著這對你來說能擴展多遠？

I'd say we have a scorecard and a scoreboard. It is in ARC. I would tell you there are very few. We have there better not be more in a few, but there are not many that we haven't talked to. Time and place, economics has to be correct. We have new relationships that will pull through in '27 and then existing relationships always.

我想說我們有記分卡和記分板。它在 ARC 中。我會告訴你，這樣的人非常少。我們最好不要再多說了，但我們還沒談過的事情不多。時間和地點，經濟學必須正確。我們建立了新的關係，這些關係將在 27 年得以鞏固，而現有的關係也將持續下去。

A lot of it again is time in place, right? We need to we're ramping, we need help. You can be a critical partner for us. Our other partners are failing, right? They're not executing on their promises. When you have $2.3 billion in liquidity and you pair that with expertise of a private real estate developer, you have a very unique combination that no one else can offer in terms of value proposition.

很多事情都是時間到位的，對吧？我們需要加大力度，我們需要幫助。您可以成為我們的重要合作夥伴。我們的其他合作夥伴都失敗了，對嗎？他們沒有履行自己的承諾。當你擁有 23 億美元的流動資金，並將其與私人房地產開發商的專業知識相結合時，你就擁有了在價值主張方面其他人無法提供的非常獨特的組合。

Upal Rana with KeyBank Capital Markets.

KeyBank Capital Markets 的 Upal Rana。

Great just a quick one for me. With the development in DAP pipeline ramping, how are you thinking about construction cost today? And you mentioned building 50 basis points wide where you can acquire. So just wondering if construction costs continue to rise, could that potentially eat into your 50 basis points?

太棒了，對我來說只是快速的。隨著 DAP 管道建設的推進，您目前如何考慮建造成本？您提到了建造 50 個基點的寬度，以便您可以獲得。所以我想知道，如果建築成本繼續上漲，是否可能會侵蝕你的 50 個基點？

I appreciate the question. We've done a full internal comprehensive study of the implications of all of these different types of tariffs led by Jeff Cagle here, our Head of Construction. And then we're very fortunate to have John Rakolta the Chairman of Walbridge, one of the biggest contractors in the country and our Board and his team ran also a study of the implications of tariffs in the construction area.

我很感謝你提出這個問題。我們在建築主管 Jeff Cagle 的帶領下，對所有這些不同類型關稅的影響進行了全面的內部綜合研究。我們非常幸運地邀請到了 Walbridge 的董事長 John Rakolta，該公司是美國最大的承包商之一，我們的董事會和他的團隊也對關稅對建築領域的影響進行了研究。

We estimate that tariffs and if you look at project cost, generally vertical costs, right, moving dirt doesn't cost, buying, acquiring land, obviously, not yet, isn't tariffed. We're talking about vertical costs, which are approximately 25% to 35% of entire projects. We think the implication in the current tariff environment is maybe 1.5% of total cost.

我們估計關稅，如果你看一下專案成本，一般是垂直成本，對吧，移動泥土不需要花費，購買、取得土地，顯然，目前還沒有徵稅。我們討論的是垂直成本，約佔整個專案的 25% 到 35%。我們認為，在當前關稅環境下，這可能佔總成本的 1.5%。

We generally have a contingency of 7% to 10% in projects. So we're not concerned about the is tariff environment right now in projects, but it's certainly something that we'll pay attention to, maybe not daily because we can't monitor and true social daily. But it's certainly something that we'll monitor but no material impact in overall construction costs.

我們的專案一般都會有7%到10%的應急準備金。因此，我們目前並不關心專案中的關稅環境，但這肯定是我們會關注的事情，也許不是每天都關注，因為我們無法每天監控真正的社會狀況。但我們肯定會對其進行監控，但這不會對整體建築成本產生實質影響。

Now if you look, there's different sourcing that we will sourcing methodologies that will change, we'll buy domestic products. Retailers are also who designate different specifications for building components. HVAC units, things like that, while they may have components that are tariff, shift building architectural features and engineering features, structural engineering features even potentially to make it most efficient and continue to drive efficiencies to even bring that 1.5% down.

現在，如果你看一下，你會發現我們的採購方法會發生變化，我們會購買國內產品。零售商也為建築部件指定不同的規格。HVAC 裝置等，雖然它們可能具有關稅組件，但會改變建築建築特徵和工程特徵，結構工程特徵甚至可能使其最高效，並繼續提高效率，甚至將 1.5% 降低。

Okay, great that was helpful thank you so much.

好的，非常好，非常有幫助，非常感謝。

[Omotayo Okusanya] with Deutsche Bank.

[Omotayo Okusanya] 與德意志銀行。

Hey guys, This is Sam on for Tayo. I hope I didn't miss this, but what gave you guys the confidence around increasing your investment outlook given the uncertainty presented by the macro backdrop as well as potential credit risk setting some tariffs

嘿，大家好，我是 Sam，代表 Tayo。我希望我沒有錯過這一點，但是考慮到宏觀背景帶來的不確定性以及潛在的信用風險，是什麼讓你們有信心提高投資前景，從而設定一些關稅

Outside of sourcing acquisitions for Q4 between now and the, call it, the middle of October, we already know it's there.

除了從現在到十月中旬的第四季度採購收購之外，我們已經知道它的存在。

Got it. Alright, that's all I have on my end. I appreciate the time.

知道了。好的，我這邊就說這麼多了。我很感激你抽出時間。

Ronald Kamdem with Morgan Stanley.

摩根士丹利的 Ronald Kamdem。

Hey, two quick ones just on ramping on the developments. Maybe you talk a little more about are the lease structures any different from the acquisitions in terms of duration, yield, contracts, just curious there.

嘿，簡單說兩句，以加快發展速度。也許您可以多談談租賃結構在期限、收益、合約方面與收購有何不同，我只是好奇而已。

Yeah, but generally, obviously they're new.

是的，但總的來說，它們顯然是新的。

Yes, Ron, generally, obviously, they are new leases. So these are 10-, 15-, 20-year leases, generally, the fresh-faced terms that are starting standard lease structures, nothing different, either ground leases or generally turnkey leases.

是的，羅恩，一般來說，顯然它們都是新租約。因此，這些是 10 年、15 年或 20 年的租約，一般來說，這些是開始標準租賃結構的新條款，沒有什麼不同，無論是土地租賃還是一般的交鑰匙租賃。

The economics, again, will subject to project duration and scope will be 50 to 150 basis points wide of where we could acquire and do acquire the like-kind assets, really no difference there, except the methodology of sourcing, obviously, and then the duration and the return requirements internally here.

再次強調，經濟效益將取決於專案持續時間和範圍，範圍將是我們可以收購和確實收購同類資產的 50 到 150 個基點，實際上沒有什麼區別，除了採購方法，顯然，然後是持續時間和內部的回報要求。

Great. And then my second one, Genuine Parts Company adds the top tenant list. Just any color there on maybe the opportunity with them to continue to grow and.

偉大的。然後我的第二個，Genuine Parts Company 添加了頂級租戶名單。任何顏色都可能有機會與它們一起繼續成長。

Look, that's NAPA. Obviously, is an investment-grade auto parts retailer, they have made it to the top tenant list. Know we're very fond of auto parts, as we discussed and wrote in the white paper, fungible boxes, great business, cars every day, setting a new record on the road. I'm not sure if anyone can be able to afford a car after all these tariffs actually hit. We continue to like the space. We like NAPA, but no plans to materially increase exposure from here.

看，這就是 NAPA。顯然，作為一家投資等級的汽車零件零售商，他們已經進入了頂級租戶名單。知道我們非常喜歡汽車零件，正如我們在白皮書中討論和寫的那樣，可替代的盒子，偉大的生意，汽車每天都在路上創下新的紀錄。我不確定在所有這些關稅真正實施之後，是否還有人能負擔得起汽車。我們仍然喜歡這個空間。我們喜歡 NAPA，但沒有計劃從這裡大幅增加曝光率。

Thanks so much.

非常感謝。

That concludes our question-and-answer session, and I will now turn the conference back over to Joey for closing comments.

我們的問答環節到此結束，現在我將把會議交還給喬伊進行總結發言。

I appreciate everybody's time today. Thank you for joining us. We look forward to seeing you in the near future. And good luck to the rest of verdict season. Thank you.

我感謝大家今天抽出時間。感謝您加入我們。我們期待在不久的將來能見到您。祝剩餘的審判季一切順利。謝謝。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。