Essential Properties Realty Trust Inc (EPRT) 2025 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Essential Properties Realty Trust third quarter 2025 earnings conference call. (Operator Instructions)

女士們、先生們，早上好，歡迎參加 Essential Properties Realty Trust 2025 年第三季財報電話會議。（操作說明）

This conference call is being recorded, and a replay of the call will be available three hours after the completion of the call for the next two weeks. The dial-in details for the replay can be found in yesterday's press release. Additionally, there will be an audio webcast available on Essential Properties' website at www.essentialproperties.com, an archive of which will be available for 90 days.

本次電話會議正在錄音，會議結束後三小時即可收聽錄音，錄音有效期限為兩週。重播的撥入詳情可在昨天的新聞稿中找到。此外，Essential Properties 的網站 www.essentialproperties.com 上將提供音訊網路直播，該直播的檔案將保留 90 天。

On the call this morning are Pete Mavoides, President and Chief Executive Officer; Mark Patten, Chief Financial Officer; Max Jenkins, Chief Operating Officer; A.J. Peil, Chief Investment Officer; and Rob Salisbury, Head of Corporate Finance and Strategy. It is now my pleasure to turn the call over to Rob Salisbury.

今天早上參加電話會議的有：總裁兼執行長 Pete Mavoides；財務長 Mark Patten；營運長 Max Jenkins；投資長 A.J. Peil；以及企業財務與策略主管 Rob Salisbury。現在我很高興將電話轉交給羅布·索爾茲伯里。

Thank you, operator. Good morning, everyone, and thank you for joining us today for Essential Properties' third quarter 2025 earnings conference call. During this conference call, we will make certain statements that may be considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to those forward-looking statements to reflect changes after the statements were made.

謝謝接線生。各位早安，感謝各位今天參加 Essential Properties 2025 年第三季財報電話會議。在本次電話會議中，我們將發表一些可能被視為聯邦證券法意義上的前瞻性聲明的陳述。本公司未來的實際業績可能與這些前瞻性聲明中所討論的事項有重大差異，而且我們可能不會對這些前瞻性聲明進行修訂以反映聲明發布後的變化。

Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's filings with the SEC and in yesterday's earnings press release.

可能導致實際結果與預期結果有重大差異的因素和風險，公司會不時在提交給美國證券交易委員會的文件以及昨天的盈利新聞稿中進行更詳細的披露。

With that, I'll turn the call over to Pete.

這樣，我就把電話交給皮特了。

Thanks, Rob, and thank you to everyone joining us today for your interest in Essential Properties. In the third quarter, we continued to execute on our focused investment strategy as our team sourced attractive opportunities to deploy capital accretively into middle-market sale-leasebacks with growing operators. During the quarter, we added new operators in our portfolio while continuing to support our existing relationships, which contributed 70% of our $370 million of investments, highlighting a healthy balance within our investment sourcing.

謝謝羅布，也感謝今天所有關注Essential Properties的朋友。第三季度，我們繼續執行重點投資策略，我們的團隊尋找有吸引力的機會，將資本增值地投入到與不斷發展的運營商合作的中端市場售後回租項目中。本季度，我們在投資組合中新增了營運商，同時繼續支持我們現有的合作關係，這貢獻了我們 3.7 億美元投資中的 70%，凸顯了我們投資來源的健康平衡。

Pricing was very favorable again this quarter with a weighted average initial cash yield of 8% and a strong average GAAP yield of 10%, which represents the highest level for us and an approximately 450 basis points spread to our estimated weighted average cost of capital.

本季定價再次非常有利，加權平均初始現金收益率為 8%，平均 GAAP 收益率高達 10%，這是我們迄今為止的最高水平，比我們估計的加權平均資本成本高出約 450 個基點。

Our portfolio performance was another highlight this quarter with same-store rent growth of 1.6%, an increase in overall rent coverage to 3.6 times, a 120 basis point decline in the percentage of ABR under 1 times the rent coverage and a decline in the tenant credit watch list, all of which is better than our budgeted expectations.

本季我們的投資組合表現是另一個亮點，同店租金成長1.6%，整體租金覆蓋率提高至3.6倍，年租金覆蓋率低於1倍的物業百分比下降120個基點，租戶信用觀察名單也有所下降，所有這些都好於我們的預算預期。

Our capital position remains healthy with pro forma leverage of 3.8 times and $1.4 billion of liquidity, which was supported by our unsecured bond issuance during the quarter. This positions us well to continue to invest, support our relationships and grow our portfolio, all to generate sustainable earnings growth for our shareholders.

我們的資本狀況依然健康，按備考槓桿率為 3.8 倍，流動資金達 14 億美元，這得益於我們本季發行的無擔保債券。這使我們能夠繼續投資、維護客戶關係並擴大投資組合，從而為股東創造可持續的獲利成長。

With operating and financial trends coming in ahead of budgeted expectations, we are again increasing our 2025 AFFO per share guidance to a range of $1.87 to $1.89, and our investment volume guidance to a range of $1.2 billion to $1.4 billion. Additionally, we are establishing our initial 2026 AFFO per share guidance range of $1.98 to $2.04, which implies a growth rate of 6% to 8%.

由於營運和財務趨勢都超出預算預期，我們再次將 2025 年調整後營運資金 (AFFO) 每股預期提高至 1.87 美元至 1.89 美元，並將投資額預期提高至 12 億美元至 14 億美元。此外，我們初步確定了 2026 年每股調整後營運資金 (AFFO) 指引範圍為 1.98 美元至 2.04 美元，這意味著成長率為 6% 至 8%。

Our guidance for 2026 reflects continued strong portfolio performance and a pace of investments generally consistent with our trailing eight-quarter average. Cap rates are expected to compress modestly over the coming quarters, reflecting a lower and stable interest rate environment. Specifically, we expect to invest between $1 billion and $1.4 billion in 2026. Additionally, we expect cash G&A expense to be between $31 million and $35 million resulting in continued efficiency gains.

我們對 2026 年的展望反映了投資組合持續強勁的表現，以及與過去八個季度平均水準基本一致的投資步伐。預計未來幾季資本化率將小幅收窄，反映出利率環境趨於穩定且較低。具體而言，我們預計在 2026 年投資 10 億美元至 14 億美元。此外，我們預期現金一般及行政費用將在 3,100 萬美元至 3,500 萬美元之間，持續提高效率。

Turning to the portfolio. We ended the quarter with investments in 2,266 properties that were leased to over 400 tenants. Our weighted average lease terms continue to be approximately 14 years for the 18th consecutive quarter, which is 4.5% of our annual base rent expiring over the next five years.

接下來來看一下投資組合。本季末，我們投資了 2,266 處房產，並將其出租給了 400 多名租戶。我們的加權平均租賃期限連續第 18 個季度保持在 14 年左右，這意味著未來五年內將有 4.5% 的年度基本租金到期。

With that, I'll turn the call over to A.J. Peil, our Chief Investment Officer, who will provide an update on our portfolio and asset management activities.

接下來，我將把電話交給我們的首席投資長 A.J. Peil，他將介紹我們投資組合和資產管理活動的最新情況。

Thanks, Pete. As Pete mentioned, at a high level, our portfolio credit trends remain very healthy with same-store rent growth in the third quarter of 1.6%, up from 1.4% last quarter and occupancy of 99.8% with only five vacant properties. Overall portfolio rent coverage increased to 3.6 times from 3.4 times last quarter, and the percentage of ABR under 1 time rent coverage declined by 120 basis points. .

謝謝你，皮特。正如皮特所提到的，從整體來看，我們的投資組合信貸趨勢仍然非常健康，第三季同店租金成長1.6%，高於上一季的1.4%，入住率達到99.8%，只有5處空置物業。整體投資組合租金覆蓋率從上季的 3.4 倍增至 3.6 倍，而年租金覆蓋率低於 1 倍的 ABR 百分比下降了 120 個基點。。

There were no noteworthy credit events during the third quarter, and overall tenant credit trends have performed better than our budgeted expectations and our historical credit loss levels of 30 basis points.

第三季沒有發生任何值得注意的信貸事件，租戶整體信貸趨勢表現優於我們的預算預期和歷史信貸損失水準 30 個基點。

From a portfolio diversification perspective, our top tenant concentration continues to decline. With our largest tenant equipment share representing just 3.5% of ABR at quarter end, our top 10 tenants overall accounting for just 16.9% of ABR and our top 20 accounting for only 27.6% of ABR. Tenant diversity is an important risk mitigation tool and it is a direct benefit of our focus on middle market operators.

從投資組合多元化的角度來看，我們主要租戶的集中度持續下降。截至季末，我們最大的租戶設備份額僅佔 ABR 的 3.5%，我們前 10 個租戶的總份額僅佔 ABR 的 16.9%，前 20 個租戶的總份額僅佔 ABR 的 27.6%。租戶多元化是重要的風險緩解工具，也是我們專注於中階市場營運商的直接好處。

On the disposition front, during the third quarter, we sold seven properties for $11.5 million in net proceeds. This represents an average of $1.6 million per property, highlighting the importance of owning fungible liquid properties, allowing us to proactively manage portfolio risk. The dispositions this quarter were executed at a 6.6% weighted average cash yield. Over the near term, we expect our disposition activity to be consistent with our trailing eight-quarter average driven by opportunistic asset sales and ongoing portfolio management activity.

在資產處置方面，第三季我們出售了七處房產，淨收益為 1,150 萬美元。這意味著每個房產平均價值 160 萬美元，凸顯了擁有可互換的流動性資產的重要性，使我們能夠主動管理投資組合風險。本季資產處分的加權平均現金收益率為 6.6%。短期內，我們預期資產處置活動將與過去八個季度的平均水準保持一致，主要受機會性資產出售和持續的投資組合管理活動所驅動。

With that, I'll turn the call over to Max Jenkins, our Chief Operating Officer, who will provide an update on our investment activities and the current market dynamics.

接下來，我將把電話交給我們的營運長馬克斯·詹金斯，他將介紹我們的投資活動和當前市場動態的最新情況。

Thanks, A.J. On the investment side, during the third quarter, we invested $370 million at a weighted average cash yield of 8%. Our capital deployment was broad-based across most of our top industries with no notable departures from our investment strategy.

謝謝，A.J.。在投資方面，第三季我們投資了3.7億美元，加權平均現金收益率為8%。我們的資本部署涵蓋了大多數重點產業，並未對我們的投資策略做出任何明顯的偏離。

During the third quarter, our investments had a weighted average initial lease term of 18.6 years and a weighted average annual rent escalation of 2.3%, generating a strong average GAAP yield of 10%. During the quarter, we closed 35 transactions comprising 87 properties, of which 97% were sale-leasebacks. Investment per property was $3.8 million this quarter as our deal activity was characterized by granular freestanding properties, which is one of our core elements of our investment strategy.

第三季度，我們的投資項目加權平均初始租賃期限為 18.6 年，加權平均年租金遞增率為 2.3%，產生了 10% 的強勁平均 GAAP 收益率。本季度，我們完成了 35 筆交易，涉及 87 處房產，其中 97% 為售後回租交易。本季每處房產的投資額為 380 萬美元，因為我們的交易活動以零散的獨立房產為特點，這是我們投資策略的核心要素之一。

Looking ahead, our investment pipeline remains strong. Pricing in our pipeline has cap rates in the mid- to high-7% range, which represents a healthy spread to our cost of capital with elevated contractual escalations supporting our long-term growth trajectory. Combined with our investments of $1 billion year-to-date, we have again increased our full-year investment guidance to a new range of $1.2 billion to $1.4 billion.

展望未來，我們的投資項目儲備依然強勁。我們產品線中的定價資本化率在 7% 到 7% 之間，這與我們的資本成本之間存在健康的價差，並且合約中較高的遞增條款支持我們的長期成長軌跡。加上我們今年迄今的 10 億美元投資，我們再次將全年投資預期提高到 12 億美元至 14 億美元的新區間。

With that, I'd like to turn the call over to Mark Patten, our Chief Financial Officer, who will take you through the financials for the third quarter.

接下來，我想把電話交給我們的財務長馬克‧帕滕，他將為大家介紹第三季的財務狀況。

Thanks, Max. Overall, we were very pleased with our third-quarter results, highlighted by the record level of investments and our AFFO per share, which totaled $0.48, representing an increase of 12% versus Q3 of 2024. On a nominal basis, our AFFO totaled $96.2 million for the quarter, which is up 24% from the same period in 2024. This AFFO performance was consistent with our expectations as reflected in our guidance range.

謝謝你，馬克斯。總體而言，我們對第三季的業績非常滿意，其中投資額創歷史新高，每股調整後營運資金 (AFFO) 達到 0.48 美元，比 2024 年第三季成長了 12%。以名目金額計算，本季我們的調整後營運資金 (AFFO) 總計 9,620 萬美元，比 2024 年同期成長 24%。此次調整後營運資金（AFFO）業績與我們的預期一致，正如我們的業績指引範圍所示。

Total G&A in Q3 2025 was $10.2 million versus $8.6 million for the same period in 2024, which is consistent with our budgeted expectations. The majority of the year-over-year increase is related to increased compensation expense, including stock compensation as we continue to invest in our team in support of driving our growth ambitions.

2025 年第三季總一般及行政費用為 1,020 萬美元，而 2024 年同期為 860 萬美元，這與我們的預算預期一致。年比增幅主要與薪酬支出增加有關，包括股票薪酬，因為我們將繼續投資於我們的團隊，以支持我們實現成長目標。

Our cash G&A was approximately $6.7 million this quarter, which is consistent with our guidance range of $28 million to $31 million for the full year, and represents just 4.6% of total revenue, down from 5.1% from the same period a year ago. We declared a cash dividend of $0.30 in the quarter which represents an AFFO payout ratio of 63%.

本季我們的現金一般及行政費用約為 670 萬美元，與我們全年 2,800 萬美元至 3,100 萬美元的預期範圍一致，僅佔總收入的 4.6%，低於去年同期的 5.1%。本季我們宣布派發現金股息 0.30 美元，AFFO 股息率為 63%。

Our retained free cash flow after dividends continues to build, reaching $36.4 million in the third quarter, equating to over $140 million per annum on a run rate basis or approximately 10% of the top end of our 2026 investment guidance.

扣除股利後，我們的留存自由現金流持續成長，第三季達到 3,640 萬美元，以年率計算，相當於每年超過 1.4 億美元，約占我們 2026 年投資指引上限的 10%。

Turning to our balance sheet with the net investment activity in Q3 2025, our income-producing gross assets reached nearly $7 billion at quarter end. The increasing scale and diversity of our income-producing portfolio continues to build improving our credit profile. On the capital markets front, we successfully executed a $400 million 10-year unsecured bond offering in August with a 5.4% coupon.

從我們的資產負債表來看，截至 2025 年第三季末，淨投資活動顯示，我們的創收總資產已接近 70 億美元。我們收益型投資組合的規模和多樣性不斷擴大，持續提升我們的信用狀況。在資本市場方面，我們在 8 月成功發行了 4 億美元的 10 年期無擔保債券，票面利率為 5.4%。

This achieved an important advancement in a strategic objective of our capital markets program as we continue to build a more liquid bond complex and work to more closely align the weighted average duration on our liabilities with our long-dated assets.

隨著我們繼續建立更具流動性的債券組合，並努力使我們負債的加權平均久期與長期資產更加緊密地保持一致，這標誌著我們在資本市場計劃的戰略目標方面取得了重要進展。

Our weighted average debt maturity improved by approximately 18% to 4.5 years, owing in large part to this issuance. With the liquidity from the bond offering, we were able to be more selective on the equity side this quarter, raising approximately $14 million through our ATM program. We did not settle any forward equity during the quarter, leaving us with a balance of unsettled forward equity totaling $521 million at quarter end.

由於此次發行，我們的加權平均債務到期期限縮短了約 18%，達到 4.5 年。憑藉債券發行帶來的流動性，我們本季能夠在股權方面更加挑剔，透過我們的 ATM 計畫籌集了約 1,400 萬美元。本季我們沒有結算任何遠選擇權益，導致季末未結算遠期權益餘額總計達 5.21 億美元。

We expect to utilize these funds in the near term to support our investment activities and preserve our balance sheet flexibility by repaying our revolving credit facility balance. Similar to last quarter, our share price remained above the weighted average price of our unsettled forwards of $30.71 at quarter end.

我們預計將在近期利用這些資金來支持我們的投資活動，並透過償還循環信貸額度餘額來維持我們的資產負債表靈活性。與上個季度類似，截至季末，我們的股價仍高於未結算遠期合約的加權平均價格 30.71 美元。

As a result, under the treasury stock method, the potential dilution from these forward shares is included in our diluted share count. For the third quarter, our diluted share count of 199.9 million shares, including an adjustment for 0.2 million shares from our unsettled forward equity related to this treasury stock calculation.

因此，根據庫存股法，這些遠期股份可能造成的稀釋效應計入我們的稀釋股份數量。第三季度，我們的稀釋後股份數量為 1.999 億股，其中包括因本次庫存股計算而從未結算遠期權益中調整的 20 萬股。

This represented a modest headwind to our AFFO per share for the quarter, which was consistent with our budgeted expectations. Based on our current share price, we expect a very modest headwind from the impact of the treasury stock method in the fourth quarter.

這給我們的季度調整後每股營運資金帶來了一定的不利影響，但這與我們的預算預期一致。根據我們目前的股價，我們預期第四季庫存股計價法的影響只會帶來非常輕微的不利影響。

Our pro forma net debt to annualized adjusted EBITDAre as adjusted for unsettled forward equity remained low at 3.8 times as of quarter end. We remain committed to maintaining a well-capitalized and conservative balance sheet with low leverage and significant liquidity to continue to fuel our external growth and allow us to service our tenant relationships in this dynamic environment.

截至季末，經未結算遠選擇權益調整後的備考淨負債與年化調整後 EBITDA 的比率仍維持在較低水平，為 3.8 倍。我們將繼續致力於維持資本充足、穩健的資產負債表，保持低槓桿率和充足的流動性，以繼續推動外部成長，並使我們能夠在這個充滿活力的環境中服務好我們的租戶關係。

Lastly, as we noted in the earnings press release, we have increased our 2025 AFFO per share guidance to a new range of $1.87 to $1.89. Importantly, this guidance range requires no incremental equity issuance to achieve, and we anticipate ending the year at pro forma leverage of approximately 4 times, leaving us ample runway to fund our growth ambition in 2026.

最後，如我們在獲利新聞稿中所述，我們將2025年調整後營運資金（AFFO）每股預期上調至1.87美元至1.89美元的新區間。重要的是，實現這一預期區間無需新增股權發行，我們預計年底的備考槓桿率約為4倍，這將為我們2026年的成長目標提供充足的資金支持。

Turning to 2026. As Pete noted, we have established an initial AFFO per share guidance range for 2026 of $1.98 to $2.04, reflecting a growth rate of approximately 6% to 8%.

展望2026年。正如皮特所指出的，我們已確定 2026 年每股調整後營運資金 (AFFO) 的初步指引範圍為 1.98 美元至 2.04 美元，反映出約 6% 至 8% 的成長率。

With that, I'll turn the call back over to Pete.

這樣，我就把電話轉回皮特了。

Thanks, Mark. We are happy with our third-quarter results. The portfolio is performing well. The investment market is exceptional, and the capital markets are supportive.

謝謝你，馬克。我們對第三季的業績感到滿意。該投資組合表現良好。投資市場情勢極佳，資本市場也給予了大力支持。

Operator, please open the call for questions.

接線員，請開啟提問環節。

(Operator Instructions) Haendel St. Juste, Mizuho.

（操作說明）Haendel St. Juste，瑞穗。

First, congrats another strong quarter. I wanted to ask, I was intrigued Pete, by your comments about expecting lower cap rates going forward. I understand a lot of that is from lower cost of debt here. But I'm also curious if any of that is from the increased competition we're hearing about? And if you expect any of this new competition to impact your ability to source sale-leasebacks going forward? Thanks.

首先，恭喜又一個季度業績出色。皮特，我對你關於未來資本化率可能下降的評論很感興趣，我想問一下。我知道這很大程度是因為這裡的債務成本較低。但我還想知道，這其中是否也包括我們聽說的日益激烈的競爭？如果您預期這些新的競爭會影響您未來取得售後回租項目的能力，您會怎麼做？謝謝。

Sure. Thanks, Haendel, and thanks for the compliment on the quarter. It was a great quarter, and we feel pretty good about it. Listen, the 10-year is down materially and the interest rate environment is more stable than it has been, which all contributes to a lower cap rate environment.

當然。謝謝亨德爾，也謝謝你對這枚硬幣的讚美。這是一個非常棒的季度，我們對此感到非常滿意。聽著，10 年期公債殖利率大幅下降，利率環境也比以往更加穩定，所有這些因素都導致了資本化率的下降。

We continue to source a strong pipeline of sale-leaseback opportunities as evidenced by the fourth quarter, as evidenced by our increase in investment guidance for the fourth quarter. And we can compete with any competition in the market. And so there's always competition. I think the cap rates are going to be driven down more by the stability in the interest rate environment, and we have an ample opportunity set.

正如第四季所證明的那樣，我們持續獲得大量售後回租機會，這也體現在我們提高了第四季的投資預期。我們有能力與市場上的任何競爭對手一較高下。所以競爭總是存在的。我認為利率環境的穩定將進一步拉低資本化率，我們有很多機會。

Appreciate that. One more I wanted to ask about the new industrial assets you acquired. I know you have a little bit exposure there already, but they were really high rent coverage. And I'm curious if there's an expectation perhaps to do more of that asset type going forward? Thanks.

謝謝。我也想問一下關於您新收購的工業資產的問題。我知道你在那邊已經有一些投資了，但是他們的租金覆蓋率真的很高。我很好奇，未來是否會有更多這類資產投資？謝謝。

Yeah, sure. We've been investing in industrial outdoor storage sites with service-based companies for quite some time now. Our investment in the industrial space really focuses on granular, fungible assets. And so one of the important considerations when we're doing those deals is making sure that we're having a very fungible piece of real estate. And we like it. We like the sale leaseback where we can structure master leases on our lease, and that's been a part of our business and will continue to be a part of our business going forward. I wouldn't expect it to be disproportional. I would expect it to grow ratably.

當然可以。我們與服務型公司合作，投資工業戶外儲存場地已經有一段時間了。我們在工業領域的投資真正專注於可替代的細粒度資產。因此，當我們進行這些交易時，一個重要的考慮因素是確保我們擁有一塊非常容易互換的房地產。我們很喜歡。我們喜歡售後回租模式，這種模式允許我們根據租賃合約制定主租賃協議，這一直是我們的業務一部分，未來也將繼續是我們業務的一部分。我不認為會存在不成比例的情況。我預計它會穩步增長。

Thank you. Appreciate the color.

謝謝。欣賞這種顏色。

And I appreciate the questions.

感謝大家的提問。

Michael Goldsmith, UBS.

瑞銀集團的麥可‧戈德史密斯。

Good morning. Thanks for taking my question. Maybe to follow up on Haendel's first question on the expectation for cap rates to come down. When you marry that with your initial 2026 outlook, are you contemplating compressing spreads in that? I'm just trying to understand the flow through -- just trying to understand the flow-through of cap rates going down.

早安.謝謝您回答我的問題。或許可以接著 Haendel 的第一個問題，即預期資本化率會下降。當你把這一點與你最初的 2026 年展望結合起來時，你是否考慮過壓縮價差？我只是想了解影響機制——只是想了解一下資本化率下降的影響機制。

Yeah, I mean, I've been saying this consistently for the past two years that we expect cap rates to come down. Certainly, as we look at the business, we did in the third quarter, initial cap rate of 8%, with a 10% GAAP yield. As I've said in past calls, that's pretty much as good as it gets. As I said earlier, 10-year going from 4.5 to 4 certainly contributes to downward pressure on cap rates. And if you think about the lag in the business, there's generally going to be a 60- to 90-day lag between movements in underlying interest rates and movements in cap rates.

是的，我的意思是，過去兩年我一直在說，我們預期資本化率將會下降。當然，當我們審視這項業務時，我們在第三季度實現了 8% 的初始資本化率和 10% 的 GAAP 收益率。正如我之前在電話裡說過的那樣，這已經是最好的結果了。正如我之前所說，10 年期公債殖利率從 4.5 年降至 4 年，肯定會對資本化率造成下行壓力。如果你考慮到商業中的滯後性，通常情況下，基礎利率的變動與資本化率的變動之間會有 60 到 90 天的延遲。

Similar to last year as we look out here very early, 15 months in advance, we anticipate some downward pressure on cap rates. And overall, and as we think about the forward yield curve, I think it really results in the static spread, if anything, maybe some compression in spread, I certainly feel like there's some room for that with our historically wide spreads.

與去年類似，我們提早15個月進行展望，預期資本化率將面臨一定的下行壓力。總的來說，當我們考慮遠期殖利率曲線時，我認為這實際上會導致靜態利差，如果說有什麼變化的話，那就是利差可能會有所收窄，考慮到我們歷史上較大的利差，我當然覺得這方面還有一些空間。

But there's certainly -- as there always is a certain amount of conservatism baked into our forward assumptions because it is pretty early.

但可以肯定的是——就像我們未來的假設中總是包含一定程度的保守主義一樣，因為現在還處於相當早期的階段。

And as a follow-up, the percentage of ABR was less than 1% -- or net rent coverage came down. It looks like you sold some stuff there. So can you provide a little bit of color about what you sold there? What you still have left in the portfolio in that last a 1 time coverage? And if you have plans for further disposals of that type of product?

隨後，ABR 的百分比低於 1%——或者說淨租金覆蓋率下降了。看來你在那裡賣了一些東西。可以詳細介紹一下你在那裡賣的是什麼嗎？你投資組合裡還剩下多少資金可以用在最後一次一次性投保？如果您有進一步處置此類產品的計劃？

Yeah, selling seven assets at $11 million really isn't going to drive a material movement in that. It's at the margin. As we generally say, we take a very close look at those assets. And if they're permanently impaired, we come up with a strategy whether disposal, restructuring or whatever to fix that.

是的，以 1100 萬美元的價格出售七項資產，真的不會對市場產生實質的影響。它處於邊緣位置。正如我們常說的，我們會非常仔細地審視這些資產。如果它們受到永久性損害，我們會制定策略，無論是處置、重組或其他任何方式來解決這個問題。

Many of the assets in those buckets are assets that are transitional, and we expect to come out of that bucket over time. And so we've taken asset-by-asset look, and if we see permanently impaired assets, we'll move them out of the portfolio. I think what you see in the quarter is a decrease in that bucket is just general improvement in some of the underlying operating conditions.

這些類別中的許多資產都是過渡性資產，我們預計隨著時間的推移，我們將從這些類別中剝離出來。因此，我們對每項資產都進行了逐一審查，如果我們發現永久性減損資產，我們將把它們從投資組合中移除。我認為本季該類別的下降只是某些基本營運狀況的整體改善。

Thank you very much. Good luck in the fourth quarter.

非常感謝。祝你第四節比賽好運。

Thank you very much.

非常感謝。

John Kilichowski, Wells Fargo.

約翰‧基利霍夫斯基，富國銀行。

Maybe Pete, just to go back into the guide here and talk about the drivers, I think it would be really helpful to talk about your assumptions this year versus last year. I understand for the past two years, you've been assuming some cap rate compression. I don't know if on the low and the high end, if you could talk to maybe the sizing of that and how that looks on this guide versus the last guide?

或許皮特，我們可以回到指南中討論車手，我認為談談你今年的假設與去年的假設會很有幫助。據我了解，在過去兩年裡，你們一直假設資本化率有所壓縮。我不知道低端和高端的尺寸是多少，您能否談談尺寸方面的問題，以及這本指南與上一本指南相比有何不同？

And then maybe also on credit loss, maybe if there's more conservatism there? And if that's just general conservatism given weakness in some of the private credit markets or if there's specific tenants that are on your watch list today that weren't last year, that would be really helpful.

然後，或許在信貸損失方面，如果那裡的保單更加保守一些呢？如果這是由於某些私人信貸市場疲軟而採取的普遍保守策略，或者如果今天您關注的租戶是去年不在名單上的特定租戶，那將非常有幫助。

Yeah, I would say -- I would start by saying we build up our guide really targeting an AFFO per share range and looking at what we need to do to achieve that. As we said on the call, [six, eight] is implied in our guide and the investment volumes are there to support it. As we think about cap rates, ironically, the cap rate assumptions are pretty similar to what we're looking at this time last year, which assumes a modest downtick in cap rates.

是的，我會說——我會先說，當我們制定指導方針時，真正的目標是設定一個每股調整後營運資金 (AFFO) 範圍，並研究我們需要做些什麼才能實現這一目標。正如我們在電話會議中所說，[六，八] 是我們指導方針中隱含的數字，而且投資量也支持這一觀點。諷刺的是，當我們考慮資本化率時，目前的資本化率假設與去年這個時候的情況非常相似，當時的假設是資本化率小幅下降。

As we saw when interest rates were rising and cap rates were rising, cap rates were sticky on the way up, and we anticipate cap rates to be a little sticky on the way down. And just to frame that, I wouldn't expect something in the, I don't know, mid- to low-7s maybe at the end of the year. And obviously, there's a range of assumptions built into guidance.

正如我們在利率上升和資本化率上升時所看到的，資本化率在上升過程中具有黏性，我們預期資本化率在下降過程中也會有些黏著度。簡單來說，我預計到年底價格不會達到，嗯，大概在7分中段到低點吧。顯然，指導意見中存在一系列假設。

As it pertains to credit loss assumptions, we take a very deep dive into our portfolio, look at specific assets and specific tenants and try to create scenarios around where we might potentially take losses. And then we build on top of that an unknown credit loss assumption to make sure we're covered for the unknown events.

關於信用損失假設，我們會深入研究我們的投資組合，查看具體資產和具體租戶，並嘗試建立可能出現損失的情境。然後，我們在此基礎上建立未知信用損失假設，以確保我們能夠應對未知事件。

I think as we look at the credit loss scenarios built into this year's guidance set, again, it's very similar to what we were looking at and thinking about this time last year. And we would be hopeful that as the year progresses, the credit loss experience turns out to be favorable to our underlying assumption.

我認為，當我們審視今年指導方針中包含的信貸損失情景時，會發現它與我們去年這個時候所關注和思考的情況非常相似。我們希望隨著時間的推移，信貸損失情況能夠符合我們的基本假設。

I don't know Rob -- Mark, you add anything to that?

我不認識羅布──馬克，你還有什麼要補充的嗎？

Yeah. Hey John, it's Rob. As you think about the low end and the high end of the range, one of the biggest drivers is actually just timing of when we close investments and close on capital markets activities. Cap rates and credit losses, of course, will move it a little bit, but it's really when you're going to close deals throughout that's the main flux in the bottom versus the high end.

是的。嘿，約翰，我是羅伯。當你考慮範圍的低端和高端時，最大的驅動因素之一實際上就是我們完成投資和完成資本市場活動的時機。當然，資本化率和信貸損失會對其產生一些影響，但真正決定價格底部與頂部之間波動的主要因素是交易完成的時間。

Okay. That's very helpful. And then maybe just on the credit side given the issues we've seen with BDCs and private credit this year. Can you talk about how you've been able to outperform on the credit side as it relates to the migration out of that sub 1x coverage bucket and just your overall coverage?

好的。那很有幫助。然後，考慮到我們今年在商業發展公司和私人信貸方面看到的問題，或許也應該關註一下信貸方面的問題。您能否談談您是如何在信貸方面取得優異成績的，尤其是在擺脫低於 1 倍覆蓋率的困境以及提高整體覆蓋率方面？

Yeah, and I would really look at the outperformance in our same-store rent growth right, which at 1.6 reflects a pretty strong pass-through of our contractual rent escalations. And I think our outperformance is really due to our focused and disciplined investment strategy by focusing on service and experience-based industries that are a little less volatile than general retailing focusing on owning assets at a conservative basis and owning granular fungible assets that give us the ability to manage risk and ultimately being the most secured creditor as a landlord in these businesses puts us first in line for the cash flows. So I think it's really attribute to the team and the discipline in the underwriting and attribute to the assets that we own.

是的，我確實會關注我們同店租金成長的優異表現，1.6 的成長率反映出我們合約規定的租金上漲已相當有效地傳導至消費者。我認為我們取得優異業績的真正原因在於我們專注且自律的投資策略，即專注於服務和體驗型行業，這些行業的波動性比一般零售業要小一些；專注於以保守的方式持有資產；持有可互換的細分資產，這使我們能夠管理風險；最終，作為這些企業的房東，我們是最有保障的債權人，這使我們能夠獲得現金流。所以我認為這真的要歸功於團隊和核保方面的嚴謹態度，以及我們擁有的資產。

Got it thanks Pete. Congrats on a great quarter.

明白了，謝謝皮特。恭喜你本季表現出色。

Thank you very much. I appreciate the questions.

非常感謝。感謝大家的提問。

Smedes Rose, Citi.

Smedes Rose，花旗銀行。

I just wanted to ask a little bit about maybe if you could just repeat what you're seeing in the fourth quarter in terms of activity. It looks like historically, the fourth quarter has picked up seasonally, I guess, people kind of rushing into year-end. Are you seeing that? And can you maybe provide what you've closed on so far and what the -- maybe the LOI pipeline looks like?

我只是想問一下，您是否可以把第四季的活動情況再延續下去。從歷史數據來看，第四季似乎會迎來季節性的銷售旺季，我猜是因為大家都在趕著進入年底。你看到了嗎？您能否提供一下您目前已完成的交易以及－比如說，意向書（LOI）的進展？

Sure, Smedes. And listen, I think with our revised guidance, we provided a pretty good landing zone of what the fourth quarter might look like. And it's early in the fourth quarter and the year-end rush has yet to start. We didn't disclose subsequent activities because they just weren't material. But generally, I would expect the fourth quarter to look pretty similar to our eight-quarter trailing average, and that kind of $300 million range. And there's events that could be a lot bigger. It could be a little smaller, but it's kind of where we're guiding at this point.

當然可以，斯梅德斯。而且，我認為，透過我們修訂後的指導意見，我們已經為第四季度的走勢提供了一個相當不錯的預期。現在才第四季初，年底的銷售旺季還沒開始。我們沒有披露後續活動，因為它們並不重要。但總的來說，我預計第四季的情況會與我們過去八個季度的平均值非常相似，大約在 3 億美元左右。還有一些事件的規模可能會更大。它可能還可以再小一點，但目前我們正朝著這個方向努力。

Okay, thank you. And then I just wanted to -- did you -- you say you would expect to settle the forward equity? And I just -- is that reflected in your 2026 guidance in terms of just the share count we should be thinking about?

好的，謝謝。然後我只是想問──你──你說過你會預期結算遠期權益嗎？我只是想知道——你們2026年的業績指引是否反映了這一點，特別是我們應該考慮的股份數量？

Yeah, actually, thanks, Smedes. So that actually is reflected still in our 2025 guide as well. So that's -- that would be reflective there. And it would also be reflective of how we see the capital markets activity playing out for 2026 and the way we've utilized the -- and then utilize forward to wipe that off the balance sheet.

是的，其實應該謝謝你，斯梅德斯。所以，這一點其實也體現在我們的 2025 年指南中。所以，那——那會反映出這一點。這也反映了我們對 2026 年資本市場活動的看法，以及我們如何利用——然後利用未來來消除資產負債表上的問題。

Okay, thank you.

好的，謝謝。

Jana Galan, Bank of America.

Jana Galan，美國銀行。

Thank you. Good morning. Sorry, one more on cap rate expectations in the prepared remarks -- there was a comment of kind of the mid- to high 7% range. And I'm just curious if that's the current pipeline or if that's kind of the range embedded in the '26 guide?

謝謝。早安.抱歉，關於準備好的發言稿中對資本化率的預期，還有一點需要補充——有人提到資本化率預計在 7% 到 7% 之間。我只是好奇這是否是目前的生產流程，還是只是 2026 年指引中預估的範圍？

Yeah, I think it's really both, right? We have visibility on part of our fourth-quarter pipeline and that's in the mid- to high-7s. And as we look out, as I said, we don't anticipate cap rates falling off a cliff. We anticipate it going to be sticky, but it's really going to be driven by the capital markets. And -- but overall, we would expect to maintain our spread. As I always say, we really don't have visibility past 90 days, but that's kind of what our expectations would be.

是的，我覺得兩者都是，對吧？我們對第四季的部分專案儲備有了一定的了解，預計產量在7個中後期到7個後期之間。正如我所說，展望未來，我們預期資本化率不會斷崖式下跌。我們預期市場會比較黏滯，但最終將由資本市場驅動。但總的來說，我們預計會保持目前的傳播速度。正如我常說的，我們真的無法預測90天以後的情況，但這大概就是我們的預期。

Thank you. And then back to kind of the -- I think that Mark had mentioned the historical credit loss has been 30 basis points. If you can just kind of help kind of frame the scenarios you've considered for 2026?

謝謝。然後回到之前提到的——我想馬克曾經提到過，歷史信用損失為 30 個基點。如果您能幫忙大致描述一下您對 2026 年的各種設想，那就太好了？

Rob, Mark?

羅布，馬克？

Yeah. I mean, Jana, as you might have suspected, range in our guidance, and I'll let Rob dig into it. But the range of our guidance incorporates a wide range of assumptions around credit. Certainly, we orient the first aspect of it to be our historical experience at that 30 basis points. But as Pete said, we do a deep dive on the portfolio and just look at both just a general assumption.

是的。我的意思是，Jana，正如你可能已經猜到的那樣，我們的指導範圍很廣，我會讓Rob深入研究一下。但我們的指導方針涵蓋了圍繞信貸的廣泛假設。當然，我們首先要考慮的是我們在30個基點上的歷史經驗。但正如皮特所說，我們會深入研究投資組合，並考慮一些普遍的假設。

And some risk mitigation or otherwise orientation around be appropriate. And that tends to be for us as we move through the year, as Pete, I think if our experience is better than we expected so far this year, that would be a scenario like that, that gives us an opportunity to tighten the range on our target.

採取一些風險緩解措施或其他方面的指導是適當的。隨著賽季的推進，這種情況往往會發生。皮特，我認為如果我們今年的經驗比預期要好，那就會出現這樣的情況，讓我們有機會縮小目標範圍。

I'm sorry -- I don't know if the line was cut off.

抱歉，我不知道線路是否被切斷了。

No, we're here.

不，我們在這裡。

We're here. So we don't guide specific credit loss assumptions and there's a wide range in there, Jana.

我們到了。所以，我們不對具體的信用損失假設進行指導，而且其中存在很大的差異，Jana。

And Jana, as we mentioned earlier in the call, our credit loss experience has come in much better than we had anticipated, which has been part of the driver for our guidance increases over the --

正如我們之前在電話會議中提到的，Jana，我們的信貸損失情況遠好於預期，這也是我們上調業績指引的部分原因。--

Thank you. Appreciate it.

謝謝。謝謝。

Caitlin Burrows, Goldman Sachs.

Caitlin Burrows，高盛集團。

Hi, good morning, everyone. Pete, in the press release, you mentioned the expanding platform that EPRT has. You also mentioned G&A efficiencies in the prepared remarks. So I was wondering if you could talk more about the potential of the platform and maybe why the '26 midpoint volume guidance isn't necessarily a continuation of growth from '25?

大家早安。皮特，你在新聞稿中提到了EPRT不斷擴展的平台。您在準備好的發言稿中也提到了行政管理效率。所以我想知道您能否更詳細地談談該平台的潛力，以及為什麼 2026 年的銷售中點預期不一定是 2025 年增長的延續？

Yeah, I think as I said a little earlier, it's -- we targeted an AFFO per share growth and try to present a business plan that is derisked from an execution perspective. And so while we continue to scale the platform, we continue to source more opportunities and have the ability to close more opportunities, we're fighting the desire to just do more and to get bigger.

是的，我想正如我之前所說，我們的目標是實現每股調整後營運資金 (AFFO) 的成長，並努力提出一個從執行角度來看風險較低的商業計劃。因此，儘管我們不斷擴大平台規模，不斷尋找更多機會，並且有能力促成更多交易，但我們卻在努力克制自己想要做得更多、規模更大的慾望。

So we're more trying to execute a business plan that gives us outsized sustainable growth for a long period of time. So the platform is growing. Our relationship base is growing. Our ability to close transactions is improving, but we certainly feel 6% to 8% guide to our AFFO per share growth is ample and adequate and derisked from an execution perspective.

因此，我們更傾向於執行一項能夠讓我們在較長時間內實現超額永續成長的商業計劃。所以這個平台正在發展壯大。我們的客戶關係網絡正在不斷擴大。我們完成交易的能力正在提高，但我們仍然認為，每股調整後營運資金成長 6% 至 8% 的預期是充足且足夠的，並且從執行角度來看風險已經降低。

Got it. Okay. That makes sense. And then as you guys think about funding, obviously, you did use debt during the quarter, a small amount of dispositions. Could you go through like to what extent did share price moves in the quarter impact your equity issuance activity and maybe even bigger picture, not just 3Q, but how you think of it over time?

知道了。好的。這很有道理。然後，當你們考慮融資問題時，顯然，你們在本季使用了債務融資，以及少量資產處置。您能否詳細說明一下，本季股價波動在多大程度上影響了您的股權發行活動？或許還可以從更長遠的角度來看，不只是第三季度，您是如何看待這個問題的？

Yeah. I guess what I'd say is I'd flip that around. We were -- I'd say, in any given year, if you think about our equity and debt issuance, capital raising, it might be anywhere from 50 and 40 because as I mentioned in my remarks, we're over 10% of our capital needs in any given year is now available through free cash flows, an important source for us. But if you -- we are looking at where to access the bond market because I think we've -- our ambition is to be in that bond market, build the bond complex and really align our debt ladder, our maturity ladder with our long-dated leases.

是的。我想說的是，我會反過來想。我想說，在任何一年，如果你考慮我們的股權和債務發行、資本籌集，這個數字可能在 50 到 40 之間，因為正如我在演講中提到的，我們每年超過 10% 的資本需求現在可以透過自由現金流獲得，這對我們來說是一個重要的資金來源。但是，我們正在考慮如何進入債券市場，因為我認為我們——我們的目標是進入債券市場，建立債券體系，真正使我們的債務階梯、到期階梯與我們的長期租賃保持一致。

So we were looking at the bond market. And so what I'd say instead is being able to do that bond execution really put us in a position to be selective on the equity front. And we already had over $500 million of unsettled forward equity. So we didn't really need to lean in too hard in the quarter. And with the bond deal that made it even more so.

所以當時我們在關注債券市場。因此，我認為，能夠進行債券發行確實使我們在股票投資方面更具選擇性。而我們已經有超過 5 億美元的未結算遠期權益。所以，我們這季其實不需要投入太多精力。而債券交易更加劇了這種情況。

And then I guess what I'd say in 2026, as you think about it, we remain very low levered. And so I think depending on the pricing of both our debt and our equity, that's where we would orient our decisions around equity access to equity and then otherwise utilizing the bond market on the debt side.

然後我想說的是，到了 2026 年，仔細想想，我們的槓桿率仍然非常低。因此，我認為，根據我們債務和股權的定價，我們將圍繞股權融資和債務融資（例如透過債券市場）來製定決策。

Okay, got it. Thanks.

好的，明白了。謝謝。

Jay Kornreich, Cantor Fitzgerald.

傑伊·科恩雷希，坎托·菲茨杰拉德。

Hey, thanks very much. Just curious, you added a new top 10 tenant this quarter with Primrose schools. And as the majority -- the majority of your deal flow comes from repeat business, I'm just curious, how do you think about prioritizing obtaining new tenants that can really set the stage for continued business going forward? And can we expect more additions to that top 10 quadrant as the next 12 months come on?

嘿，非常感謝。我只是好奇，你們本季新增了一家排名前十的租戶——Primrose 學校。鑑於你們的大部分交易都來自回頭客，我很好奇，你們是如何考慮優先吸引能夠真正為未來持續業務發展奠定基礎的新租戶的？在接下來的 12 個月裡，我們是否可以期待前 10 名中會有更多新成員加入？

Yeah, Max, why don't you tackle that?

是啊，麥克斯，為什麼不去處理這件事？

Sure. Thanks, Pete. Primrose is a premium concept with over 500 locations across the country, and we've been partnering with their largest franchisee over the last couple of years, and so a subsequent transaction put them in the top 10. But on the sourcing front, we're constantly adding new tenants and relationships to the portfolio.

當然。謝謝你，皮特。Primrose 是一個高端概念品牌，在全國擁有 500 多家分店。在過去的幾年裡，我們一直與他們最大的加盟商合作，因此，隨後的一筆交易使他們躋身前 10 名。但在房源方面，我們持續為房源組合增加新的租戶和合作關係。

And frankly, it's been pretty consistent over the years of every quarter we're adding anywhere between 5 and 10 new tenants and -- but then we're obviously focused on repeat business and growing ratably with those operators throughout our industries. And so it's always going to be a two-pronged approach.

坦白說，多年來，我們每季都會新增 5 到 10 個租戶，情況一直相當穩定——但我們顯然更注重回頭客，並與我們所在行業的營運商保持穩步增長。因此，這始終會是雙管齊下的方法。

Okay. And then just as a follow-up, in addition to sticky cap rates lately, you also take up the lease escalations to 2.3%. And so I'm curious what's driving that lease negotiation leverage? And is that something on the lease escalations that you feel like you can continue to increase even in an environment where lowering interest rates could lower cap rates?

好的。然後，作為後續措施，除了最近的黏性資本化率之外，你們還將租金遞增幅度提高到 2.3%。所以我很好奇是什麼因素促成了這種租賃談判優勢？即使在利率下降可能導致資本化率降低的環境下，您是否認為租賃價格上漲幅度可以繼續提高？

Yeah, listen, I think that's a key economic term of the sale-leasebacks we're negotiating. And ultimately, in any deal, we're negotiating the best terms we can. And whether or not we win a deal is really a factor of competition and having an ample opportunity set to focus on the deals with the least amount of competition. I would not anticipate that going higher.

是的，聽著，我認為這是我們正在談判的售後回租協議中的關鍵經濟條款。最終，在任何交易中，我們都會盡力爭取最好的條款。我們能否贏得交易，實際上取決於競爭情況，以及我們是否有充足的機會專注於競爭最小的交易。我預計不會再上漲了。

And as I said in our prepared remarks, a 10% average cap rate over the life of these leases is as high as we've seen and pretty aren't compelling. If you look back to 2020, 2021, where interest rates were low and competition was very very high level, our escalators were down around 1.4, 1.5. And so over a longer period of time, I would expect downward pressure on that key economic term.

正如我在事先準備好的發言稿中所說，這些租賃合約期間的平均資本化率達到 10%，這是我們見過的最高值，而且並不具有吸引力。回顧 2020 年和 2021 年，當時利率很低，競爭非常激烈，我們的利率上升幅度約為 1.4% 或 1.5%。因此，從長遠來看，我預計這項關鍵經濟指標將面臨下行壓力。

Rich Hightower, Barclays.

Rich Hightower，巴克萊銀行。

Hi, good morning guys, and thanks for taking the question. I guess just to maybe follow up on the same theme. I mean, obviously, one of the big, I guess, headlines and net lease this year has been that added private market competition. And so we probably asked this question last quarter as well, but just tell us about what you're seeing in the marketplace and how the different features of deal negotiation are impacted as more capital flows into the space? And does that affect the way you underwrite you think about guidance, et cetera?

大家好，早安，謝謝你們回答這個問題。我想大概是想繼續探討這個話題吧。我的意思是，很顯然，今年最大的新聞之一，也是淨租賃的一大趨勢，就是私人市場競爭的加劇。所以，我們上個季度可能也問過這個問題，但請您談談您在市場上的觀察，以及隨著更多資本流入該領域，交易談判的不同方面會受到怎樣的影響？這是否會影響你對承保、指導等方面的看法？

Yeah, I mean it's always a competitive market. It's always competitive forces, competitive sources of capital, competitive alternatives for our tenants. And ultimately, we compete on our reliability and our ability to execute and deliver capital into capital needs. And I think when you have a lot of new entrants, there's a lot of footfalls and a lot of misstarts.

是的，我的意思是，市場競爭一直都很激烈。始終是競爭的力量，競爭的資金來源，以及為我們的租戶提供的競爭性選擇。最終，我們的競爭力體現在可靠性以及將資金投入資金需求的能力。我認為，當有很多新進入者時，就會有很多人來來往往，但也會出現很多失誤。

And I think the priority on reliability and certainty and relationships and the ability to service and those relationships reliably gets rewarded. And that's been our operating thesis since starting this company and will continue to be the way we go to market. And so I'm confident that we'll be able to offer more compelling and certain capital to our counterparties than new market participants.

我認為，重視可靠性、確定性、人際關係以及可靠地提供服務的能力，並以此維繫這些關係，最終會得到回報。自公司成立以來，這一直是我們的經營理念，並將繼續是我們進入市場的方式。因此，我相信我們能夠為交易對手提供比新市場參與者更具吸引力和確定性的資金。

I appreciate it, Peter. Maybe just a follow-up or put a finer point on it. If you are losing out on a transaction, where are you typically losing and on what terms and that thing?

謝謝你，彼得。或許只是後續補充或更詳細說明。如果你在一筆交易中蒙受損失，你通常是在哪裡蒙受損失的？損失的條件是什麼？

Yeah, we're going to lose on price. We're going to lose on -- I think the initial cap rate is ultimately the highest point of sensitivity. And I view it as if we lose a deal, it's because we're choosing not to do it, and we're choosing not to chase the price, and we see a different risk-adjusted return dynamic and up to deploy our capital somewhere else. So it's not necessarily losing a deal, it's just deciding to invest somewhere else.

是的，我們在價格上會吃虧。我們將會虧損——我認為初始資本化率最終是敏感度最高的點。我認為，如果我們失去了一筆交易，那是因為我們選擇不做，選擇不追逐價格，我們看到了不同的風險調整後收益動態，並將我們的資金部署到其他地方。所以這不一定是失去一筆交易，只是決定把投資轉移到其他地方。

Eric Borden, BMO Capital Markets.

Eric Borden，BMO資本市場。

Hey, good morning, everyone. Just a quick question on the bad debt watch list. I understand that it's coming in above your underwriting. Just curious if you could provide an update on the watch list and where it sits today? I believe last quarter, you said it was approximately 160 basis points.

嘿，大家早安。關於不良債觀察名單，我有個小問題。我知道這筆費用超過了你們的保障。請問您能否提供一下觀察名單的最新情況以及它目前的排名？我記得上個季度您說過大約是 160 個基點。

A.J., that's something your --

A.J.，那是你的事。--

Buddy. Yeah, so our watch list and again just to refresh, is the intersection of minus and less than 1.5 times coverage today that's it's at 1.2 times and there's a variety of tenants on the list that we keep a close eye on, but it is down 40 basis points quarter over quarter.

夥伴。是的，我們的觀察名單，再次提醒一下，是覆蓋率低於 1.5 倍的交集，今天的覆蓋率為 1.2 倍，名單上有很多租戶，我們密切關注著它們，但與上一季相比下降了 40 個基點。

Thank you very much. That's all I had.

非常感謝。這就是我全部的家當。

Dan Guglielmo, Capital One Securities.

丹古列爾莫，第一資本證券公司。

Hi everyone, thank you for taking my questions. There were some changes to the ABR by state, but nothing that jumps off the page. When looking at the existing pipeline, are there states or regions where you see better investment opportunities over the next year or so?

大家好，感謝各位回答我的問題。各州的 ABR 有一些變化，但沒有特別突出的變化。從現有管道建設的角度來看，您認為未來一年左右有哪些州或地區會有更好的投資機會？

Yeah, as we think about it, geography is always an output, not an input, and we go where our tenant relationships bring us in the United States. And so there's certainly good opportunities across all states, and we just prioritize the best opportunities with the best operators. And so I wouldn't expect any material deviation in our geographies as we think about 2026.

是的，仔細想想，地理位置始終是輸出，而不是輸入，我們在美國各地的租戶關係決定了我們的發展方向。因此，各州都存在著很好的機會，我們只是優先考慮與最好的營運商合作的最佳機會。因此，我認為在展望 2026 年時，我們的地理格局不會出現任何實質的偏差。

Okay. I appreciate that. And then as a follow-up to the question on the elevated lease escalation number, are there any additional risks you think through for the higher annual rent bumps on some of the newer tenant leases? Anything kind of incremental?

好的。我很感激。那麼，針對租金漲幅較高的問題，您是否考慮到一些新租戶租賃合約中較高的年度租金漲幅會帶來其他風險？任何漸進式的改變嗎？

Yeah, listen, rent escalations are a key economic term. One of the benefits of lower escalations is a more compelling rent basis for the counterparty, right? And the inverse of that is the higher the rent escalations, the more inherent credit risk as you get in the out years to your assets. Certainly, we feel comfortable at the level we're at, kind of roughly CPI-ish. But to the extent that your lease rates are growing faster than CPI, the tenant's underlying ability to generate profit may not keep up with rent.

是的，聽著，租金上漲是一個重要的經濟術語。租金漲幅降低的好處之一是能為交易對手提供更具吸引力的租金基礎，對嗎？反之亦然，租金上漲幅度越大，隨著時間的推移，你的資產所面臨的固有信用風險就越大。當然，我們對目前的水平感到滿意，大致相當於 CPI 水平。但是，如果你的租金成長速度超過消費者物價指數 (CPI)，那麼租戶的獲利能力可能跟不上租金的成長速度。

And so that's an important consideration as we structure these leases is really making sure there's a healthy rent payment and healthy coverage as we think about the out years in 10 through 20. So it's a balance. And certainly, more is better, but making sure you're getting the right level and having tenants that can service those obligations throughout the life of the lease.

因此，在製定這些租賃協議時，一個重要的考慮因素是確保在未來 10 到 20 年內，租金支付和保障都能得到保障。所以這是一種平衡。當然，越多越好，但要確保租金水平合適，並且租戶能夠在整個租賃期內履行這些義務。

Thank you. That's really helpful.

謝謝。這真的很有幫助。

James Kammert, Evercore.

James Kammert，Evercore。

Hi, good morning. Thank you. You've covered a lot. Just to go back on the credit loss assumptions for '26. Would you just say as a platform, you're adopting more conservative expectation for credit loss for '26 given the economy or the portfolio or read too much into this? Or is very similar to what you've kind of started to 2025 outlook for when in late '24?

您好，早安。謝謝。你涵蓋的內容很廣泛。再回顧 2026 年的信貸損失假設。您能否簡單地說，作為一家投資平台，鑑於當前的經濟形勢或投資組合狀況，您對 2026 年的信貸損失採取了更為保守的預期，還是您對此解讀過度度了？或者說，這和你從 2024 年末開始對 2025 年的展望非常相似？

Yeah, I would say we're looking at it through the same lens. We have the same guys doing the same work, taking the same assumptions with the same base of experience, and our assumptions are based on the most current data that we have in the shop. Ultimately, the result of that process is very consistent to what we're looking at last year at this time.

是的，我想我們看待這個問題的角度是一樣的。我們讓同樣的人做同樣的工作，基於同樣的經驗和假設，而我們的假設是基於我們店裡最新的數據。最終，這個過程的結果與去年同期我們看到的情況非常一致。

But the risks in the portfolio tend to be very idiosyncratic and not really driven by macro trends. It's more just specific operators who are not operating the way we would expect. So it's a consistent process. The result just happens to be very consistent to last year as we sit today, but nothing out of norm.

但投資組合中的風險往往具有強烈的特異性，並非真正受宏觀趨勢驅動。更確切地說，只是某些特定業者的運作方式不符合我們的預期。所以這是一個持續的過程。目前來看，結果剛好與去年非常一致，但並無異常之處。

Okay great that's very helpful thank you.

好的，太好了，這很有幫助，謝謝。

(Operator Instructions) Omotayo Okusanya, Deutsche Bank.

（操作員指示）Omotayo Okusanya，德意志銀行。

Yes, good morning. The group of tenants where the rent coverage is less than 1x, could you just kind of a high level, let us tell us like who that is, whether you can't mention the specific client or tenant kind of what sector or what industry it is?

是的，早安。租金覆蓋率低於 1 倍的租戶群體，您能否大致介紹一下，例如這部分租戶是誰？如果您無法透露具體的客戶或租戶，能否告訴我們他們屬於哪個產業或領域？

Yes. It's a group of assets, first and foremost, is focused on the real estate properties that we own. And there's really not a consistent theme. It's very much specific idiosyncratic risk to those assets and the lease obligations that the tenants have at those assets. It's going to be across all our industries. It's going to be across all our geographies.

是的。它首先是一組資產，主要集中在我們擁有的房地產。而且，它並沒有一個連貫的主題。這是針對這些資產以及租戶對這些資產所承擔的租賃義務的特定風險。這將影響到我們所有的產業。它將覆蓋我們所有地區。

And it's just specific sites that aren't working. And it could be very idiosyncratic is a child care center lost an operator or a manager and -- or it could be a restaurant where there's a road widening and the access is off-line or it can be a car wash just opened and really ramping into its membership base. So very idiosyncratic stuff, not terribly material. Certainly, we're happy that it's come down, but nothing thematic that I would point out.

只有特定的幾個網站無法存取。情況可能非常特殊，例如一家托兒中心失去了一位經營者或經理；又或者是一家餐廳，因為道路拓寬而無法營業；再或者是一家洗車店，剛開業，會員數量正在迅速增長。所以都是些非常另類的東西，沒什麼實質內容。當然，我們很高興它被拆除了，但沒有什麼特別值得一提的主題。

Greg McGinniss, Scotiabank.

格雷格·麥金尼斯，加拿大豐業銀行。

Hey, good morning. It's never particularly low, but acquisitions through existing relationships hit 70% this quarter, which maybe one could argue is relatively lower than usual. I'm curious if this is an indicator for the growth of EPRTs name as a source of capital? Or how do those nonrelationship deals come about? Is it market deals, the seller approaching you? I'm just trying to understand if you start having more investment opportunities as you grow.

嘿，早安。雖然收購率從未特別低，但本季透過現有關係進行的收購佔比達到 70%，這或許可以說比平常相對低。我很好奇這是否預示著EPRT作為資本來源的聲譽正在提升？或者說，這些非關係型交易是如何達成的？這是市場交易，是賣家主動聯絡你嗎？我只是想了解，隨著公司的發展，投資機會是否會越來越多。

Yeah, I think you see that we're having more investment opportunities, our underwritten pipeline has grown consistently over the years. I think the opportunity set that we've written offers on this year is approaching $7 billion versus $5 billion last year. And we're doing the hard work and attending conferences, sending out mailers, dialing the phone to find new relationships in our industries and find new partners.

是的，我想您也看到了，我們擁有了更多的投資機會，我們的承銷項目儲備這些年來一直在持續成長。我認為我們今年提出的投資機會總額接近 70 億美元，而去年為 50 億美元。我們正在努力工作，參加會議，發送郵件，打電話，以在我們的行業中建立新的關係並尋找新的合作夥伴。

And I think our execution and our reliability has given us a good reputation as a capital provider and that continues to drive incremental opportunities. So having that number at 70% is great. I wouldn't concern me if that was 50% because certainly, relationships outgrow us from a concentration perspective, and it's important that we're finding new people to bring deals in the coming years.

我認為，我們的執行力和可靠性為我們作為資金提供者贏得了良好的聲譽，而這將繼續推動新的機會。所以能達到70%這個數字已經很不錯了。如果這個比例是 50%，我不會擔心，因為從集中程度來看，人際關係肯定會發展到超出我們的能力範圍，而且在未來幾年裡，找到新的合作夥伴來促成交易也很重要。

Okay, thank you. And then I just wanted to confirm whether or not you start seeing any indications of increased competition today? Or if this is and similar to last year at this time, when you expected greater competition to materialize given historically wide spreads and the success that you've been having?

好的，謝謝。然後我想確認一下，您今天是否開始看到競爭加劇的跡象？或者，如果這種情況與去年同期類似，鑑於歷史上較大的價差以及你們取得的成功，你們預期會出現更激烈的競爭？

Yeah. There's other buyers out there. We're seeing a bid on deals. We continue to be successful where we choose and where we see appropriate risk-adjusted returns. So there's platforms out there, there's people investing and there's competition, but we're continuing to execute well and have a good reputation and are able to pick and choose the deals that we do.

是的。還有其他買家。我們看到有人在競購交易。我們繼續在我們選擇投資領域以及我們認為風險調整後收益合適的領域中取得成功。所以現在有很多平台，也有很多投資者，競爭也很激烈，但我們仍然能夠很好地執行策略，保持良好的聲譽，並且能夠挑選我們想要進行的交易。

Ryan Caviola, Green Street.

Ryan Caviola，格林街。

Hello, good morning. Is there any color you could share on the differences in yield between your traditional retail portfolio versus the industrial properties that you mentioned earlier in this call? And is that expectation of cap rate compression? Does that apply to these industrial properties as well? Or is that mostly in the retail space?

你好早安。您能否就您先前在電話會議中提到的傳統零售物業組合與工業地產組合之間的收益率差異，分享一些細節資訊？這是預期資本化率會下降嗎？這是否也適用於這些工業地產？或者說，這種情況主要發生在零售領域？

Yeah, I would say it's -- there's really no differentiation. The biggest driver of differences in cap rates is going to be the counterparty, the credit and the real estate pricing, not necessarily whether it's retail service or industrial. So there's really not a differentiation, and we would expect cap rate compression across our entire opportunity set, driven by the -- as I said on the call, lower interest rates and more stable capital markets.

是的，我覺得──真的沒有什麼差別。影響資本化率差異的最大因素是交易對手、信用狀況和房地產定價，而不一定是零售服務業還是工業地產。所以實際上並沒有什麼區別，我們預計在我們所有的投資機會中，資本化率都會下降，正如我在電話會議上所說，這是由於利率下降和資本市場更加穩定所致。

Great, thank you. And then I know you've mentioned a few times that credit losses have been better than expected throughout this year. The only notable story across retail that comes to mind for this quarter is some distress in autos. Has any of that flowed into the portfolio? Or how are you viewing that space for the rest of the year and going into '26?

太好了，謝謝。而且我知道您曾多次提到，今年的信用損失情況比預期好。本季零售業唯一值得關注的事件是汽車產業遭遇了一些困境。這些資金中有一部分流入了投資組合嗎？或者，您如何看待今年剩餘時間以及進入 2026 年的這一領域？

Yeah, we haven't seen it. Our auto exposure is largely focused on automotive service. And so the noise around automotive retailing and dealerships isn't in our portfolio. noise around auto parts suppliers isn't in our portfolio. So we still think automotive service is a good industry for us, and we like the real estate in that industry, which is granular bite-size, well-located boxes. And so we'll most likely continue to invest ratably across that industry as we think about 2026.

是的，我們還沒看到。我們的汽車業務主要集中在汽車服務領域。因此，圍繞汽車零售和經銷商的噪音不在我們的投資組合中。圍繞汽車零件供應商的噪音也不在我們的投資組合中。所以我們仍然認為汽車服務業對我們來說是一個不錯的行業，我們也喜歡這個行業的房地產，它是由一個小、位置優越的店鋪組成。因此，展望 2026 年，我們很可能會繼續在該產業進行均衡投資。

Thanks, appreciate the call.

謝謝，謝謝您的來電。

Thank you.

謝謝。

John Massocca, B. Riley.

約翰·馬索卡，B·萊利。

Good morning. Sticking with the industrial assets, and sorry if I missed this earlier in the call, do those properties house consumer facing businesses or are they part of a tenant's internal supply chain? And if it's the later, how are you calculating rent coverage?

早安.繼續討論工業資產，如果我之前在電話會議中漏掉了這個問題，請見諒，這些物業是面向消費者的企業，還是租戶內部供應鏈的一部分？如果是後者，你是如何計算租金覆蓋率的？

Yeah, they're not -- I mean, they're industrial properties, industrial outdoor storage yards where service-based operators are running their business. And the coverage is based upon the revenue generated at that site and the profitability from that site. I would acknowledge that, that revenue and that profitability is less tethered to that piece of real estate than a traditional retail box like a restaurant but those sites are still essential to that operator's business and switching costs are very high, such that we would expect durable tenancy in those assets.

是的，它們不是——我的意思是，它們是工業用地，是服務型運營商開展業務的工業露天倉庫。而報道範圍則取決於該網站所產生的收入和獲利能力。我承認，與餐廳等傳統零售店面相比，該物業的收入和盈利能力與房地產的關聯性較低，但這些場所對運營商的業務仍然至關重要，而且轉換成本非常高，因此我們預計這些資產的租約會很穩定。

But are they selling goods made there like directly to other businesses? Or is it kind of an internal thing within a tenant that you're kind of just getting whatever their estimate is of the kind of revenue contribution from that particular manufacturing facility or storage facility or whatever it may be?

但他們是否像直接向其他企業銷售那樣，將那裡生產的商品賣給其他企業？或者這只是租戶內部的做法，你只能得到他們對特定製造工廠、倉儲設施或其他類似設施的收入貢獻的估計？

It's a wide range of businesses and operations. So I would say there's probably a little of both of that.

它涵蓋了廣泛的業務和營運領域。所以我覺得可能兩者都有一些。

Okay. And then as you do your credit underwriting for potential investments with private equity-backed tenants, does the size of the private equity sponsor matter to you at all? I mean, especially in the current environment where private equity capital raising and liquidity events are a little bit more uncertain versus in years past?

好的。那麼，在對有私募股權支持的租戶進行潛在投資的信用承銷時，私募股權發起人的規模對你來說重要嗎？我的意思是，尤其是在當前環境下，私募股權融資和流動性事件的不確定性比往年大得多？

Yeah, we start underwriting real estate and underwriting the unit level profitability and the economics of the site and then take a look at the corporate credit. And I tend to be agnostic to the equity source. It could be private. It could be large private equity and credit, credit, and we ultimately hang our hat on owning a good piece of real estate at the appropriate basis with the good lease structure supported -- with rents supported by the operating business.

是的，我們首先會對房地產進行承銷，評估單元層面的獲利能力和專案的經濟效益，然後再考察公司的信用狀況。我對股權來源通常持中立態度。可能是私人資訊。可能是大型私募股權和信貸，我們最終依靠的是以適當的價格擁有一塊優質房地產，並輔以良好的租賃結構——租金由營運業務支撐。

Is there any difference versus maybe a smaller regional private equity operator versus a bigger brand name one? Or would there be a trend do you think in the current credit environment to move one way or another between the two in terms of how you're thinking about valuing potential transactions with those tenants and their sponsors?

與規模較小的區域性私募股權業者和知名大品牌私募股權業者相比，它們之間有什麼區別嗎？或者，您認為在當前的信貸環境下，對於與這些租戶及其贊助商進行潛在交易的估值，是否存在一種趨勢，即在兩者之間朝某個方向發展？

No. There's good big operators and bad big operators, and there's good small operators and bad small operators, and we really focus on our history and our relationships and -- the bigger the operator, the -- we find the more use of leverage. And so we certainly take that into consideration. But it's underwriting credit.

不。大型業者有好的也有壞的，小型業者也有好的也有壞的，我們非常注重我們的歷史和關係，而且——運營商規模越大，——我們發現利用槓桿作用的機會就越多。因此，我們當然會將這一點考慮在內。但這屬於信貸承銷。

Okay, I appreciate the color. That's it for me. Thank you.

好的，我很喜歡這個顏色。就這些了。謝謝。

You got it, John. Thank you.

明白了，約翰。謝謝。

And it appears we have no further questions at this time. I'll turn the program back to the speakers for any additional or closing remarks.

目前看來我們沒有其他問題了。我將把發言權交還給發言者，讓他們補充或作總結發言。

Super. Well, thank you all for your questions today, and thank you for your time, and we look forward to seeing everyone in the conferences in the upcoming months. Have a great day.

極好的。非常感謝大家今天提出的問題，也感謝大家抽出時間，我們期待在接下來的幾個月與大家在會議上見面。祝你有美好的一天。

This concludes today's program. Thank you for your participation, and you may disconnect at any time.

今天的節目到此結束。感謝您的參與，您可以隨時斷開連線。