Four Corners Property Trust Inc (FCPT) 2023 Q4 法說會逐字稿

Hello, and welcome to the FCPT fourth-quarter 2023 financial results conference call. My name is Elliott, and I'll be coordinating your call today. (Operator Instructions)

您好，歡迎參加 FCPT 2023 年第四季財務業績電話會議。我叫艾利歐特，今天我將協調您的電話。（操作員說明）

I'd now like to hand over to Gerry Morgan. The floor is yours. Please go ahead.

現在我想將工作交給格里摩根 (Gerry Morgan)。地板是你的。請繼續。

Thank you, Elliott. During the course of this call, we will make forward-looking statements, which are based on our beliefs and assumptions. Actual results will be affected by factors that are beyond our control or ability to predict. Our assumptions are not a guarantee of future performance and some will prove to be incorrect. For a more detailed description of potential risks, please refer to our SEC filings, which can be found on our website.

謝謝你，艾利奧特。在本次電話會議期間，我們將根據我們的信念和假設做出前瞻性陳述。實際結果將受到我們無法控製或無法預測的因素的影響。我們的假設並不能保證未來的表現，有些假設會被證明是錯的。有關潛在風險的更詳細描述，請參閱我們的 SEC 文件，該文件可以在我們的網站上找到。

All of the information presented on this call is current as of today, February 15, 2024. In addition, reconciliation to non-GAAP financial measures presented on this call such as FFO and AFFO can be found in the company's supplemental report.

本次電話會議中提供的所有資訊均為截至今天（2024 年 2 月 15 日）的最新資訊。此外，本次電話會議上提出的非公認會計準則財務指標（例如 FFO 和 AFFO）的調節表可以在公司的補充報告中找到。

And with that, I'll turn the call over to Bill.

然後，我會將電話轉給比爾。

Thank you, Gerry. Good morning. Thank you for joining us to discuss our fourth-quarter results. I will make introductory remarks, Patrick and Josh will comment further on the acquisition market, and Gerry will conclude with the discussion of our financial results and capital position.

謝謝你，格里。早安.感謝您加入我們討論我們的第四季業績。我將做介紹性發言，派崔克和喬許將進一步評論收購市場，格里將討論我們的財務表現和資本狀況。

We reported fourth quarter AFFO of $0.43 per share, which is up $0.02 or 4.9% from Q4 last year. Our existing portfolio is performing exceptionally well with 99.8% rent collections for the quarter and 99.8% occupancy at quarter end.

我們報告第四季度 AFFO 為每股 0.43 美元，比去年第四季度增長 0.02 美元，即 4.9%。我們現有的投資組合表現非常出色，本季租金回收率為 99.8%，季末入住率為 99.8%。

FCPT had a record acquisition year with $333 million of capital deployed in 2023. That was up 16% from our full-year 2022, which was also a previous record acquisition year. We are benefiting from establishing verticals in medical retail, auto services, and other retail in addition to restaurants, our historical core area of focus.

FCPT 的收購創歷史新高，2023 年部署資本達 3.33 億美元。這比 2022 年全年成長了 16%，2022 年也是收購量創紀錄的一年。除了我們歷史上關注的核心領域——餐廳之外，我們還受益於在醫療零售、汽車服務和其他零售領域建立垂直行業。

These transactions were primarily funded with equity raised in late 2022 and early '23 at an average price of about $27 per share and with our June debt offering where we benefited from hedge gains to lock in a 5.4% yield to maturity. After utilizing these funds, we slowed down acquisition activity in the second half of the year to reflect the impact of higher interest rates on equity and debt sources of capital.

這些交易的資金主要來自 2022 年末和 23 年初籌集的股權，平均價格約為每股 27 美元，以及我們 6 月的債券發行，我們從對沖收益中受益，鎖定了 5.4% 的到期收益率。在利用這些資金後，我們在下半年放慢了收購活動，以反映利率上升對股權和債務資金來源的影響。

I would also highlight that an impact of purposely slowing down acquisition activities in 2023 was an elevated level of broken deal costs, which increased property expenses by approximately $250,000 versus the 2022 level. While these impacted 2023 AFFO, it was the right decision to terminate transactions if they were no longer accretive.

我還想強調的是，2023 年故意放緩收購活動的影響是破壞交易成本水準升高，與 2022 年水準相比，物業費用增加了約 25 萬美元。雖然這些影響了 2023 年 AFFO，但如果交易不再增值，則終止交易是正確的決定。

Year over year for the restaurant sector as a whole remained positive in the fourth quarter in the 4% range according to Baird research, although the casual dining sector is seeing small declines off strong levels in the prior-year period. Darden was a standout from that trend, reporting same-store sales growth of 4.1% and 4.9% for Olive Garden and LongHorn, respectively for their quarters ending November 26. And Chili's saw same-store sales rise 5% for the most recent quarter ended December 27. All three brands saw margins expand as well as commodity and labor inflation easing.

根據貝爾德 (Baird) 的研究，儘管休閒餐飲業較上年同期的強勁水平略有下降，但第四季度整個餐飲業的同比增長率仍保持在 4% 的範圍內。Darden 在這一趨勢中脫穎而出，報告稱 Olive Garden 和 LongHorn 在截至 11 月 26 日的季度中同店銷售額分別增長了 4.1% 和 4.9%。截至 12 月 27 日的最近一個季度，Chili's 的同店銷售額成長了 5%。所有三個品牌的利潤率均有所擴大，商品和勞動力通膨也有所緩解。

Our EBITDAR to rent coverage in the fourth quarter was 4.9 times for the significant majority of our portfolio that reports this figure. This remains amongst the strongest coverage within the net lease industry.

對於我們報告這一數字的投資組合中的絕大多數來說，我們第四季度的 EBITDAR 與租金覆蓋率是 4.9 倍。這仍然是淨租賃行業內最強大的覆蓋範圍之一。

Turning to capital sources. We issued $25.4 million of equity in the fourth quarter at an average price of $25.34. We started the first quarter of 2024 with $234 million of available capacity on our revolving credit facility, very minimal near-term debt maturities, and highly attractive properties to sell to 1031 buyers if we choose to access that source of liquidity.

轉向資金來源。我們在第四季發行了 2540 萬美元的股票，平均價格為 25.34 美元。從2024 年第一季開始，我們的循環信貸額度有2.34 億美元的可用容量、極低的近期債務到期日，以及如果我們選擇獲得流動性來源的話，可以向1031 名買家出售極具吸引力的房產。

As we look ahead, the current capital market environment is making it challenging to deploy capital accretively. I want to restate something I said last quarter. In this environment, we remain disciplined allocators of capital.

展望未來，目前的資本市場環境使得資本增值配置面臨挑戰。我想重申我上季度說過的話。在這種環境下，我們仍然是有紀律的資本配置者。

Since our inception in 2015, we have established mental models and structured our team incentives to discourage deploying capital just to grow the company's overall size without also increasing per share metrics of earnings or intrinsic value. Our investment team does not work on commission, and their goal is not tied to acquisition volumes as we have never given acquisition or earnings guidance.

自 2015 年成立以來，我們建立了心理模型並制定了團隊激勵措施，以阻止僅僅為了擴大公司整體規模而部署資本，而不增加每股收益或內在價值指標。我們的投資團隊不收取佣金，他們的目標與收購量無關，因為我們從未給予收購或獲利指導。

Finally, we benefit from low absolute and relative overhead and can be nimble and modulate our investment activities up and down without negatively impacting the organization or employee morale. All that said, the team is laser-focused on building an accretive pipeline while minimizing risk.

最後，我們受益於較低的絕對和相對管理費用，並且可以靈活地上下調整我們的投資活動，而不會對組織或員工士氣產生負面影響。儘管如此，團隊仍專注於建立一條增值管道，同時最大限度地降低風險。

Cap rates have widened, and we have found interesting investment opportunities that Pat will elaborate on. We believe that we are prepared to operate successfully in today's environment and expect to ratchet up activity when we believe it is accretive to do so.

資本化率已經擴大，我們發現了有趣的投資機會，帕特將詳細闡述。我們相信，我們已做好在當今環境下成功運作的準備，並期望在我們認為這樣做能帶來增值時加大活動力度。

With that, I'll turn it over to Patrick to further discuss the investment environment.

接下來，我將把它交給派崔克進一步討論投資環境。

Thanks, Bill. As Bill mentioned, our cost of capital rose in 2023. And while market cap rates did improve, the shift was not commensurate with the movement in interest rates. As such, we moderated our acquisitions volume down in Q4 despite the last few months historically being our busiest time of the year. In total, we closed on $12.8 million across six properties for the quarter.

謝謝，比爾。正如比爾所提到的，我們的資本成本在 2023 年上升。儘管市值確實有所改善，但這種變化與利率的變動並不相稱。因此，儘管過去幾個月是我們一年中最繁忙的時期，但我們在第四季度減少了收購量。本季我們六處房產的總收入為 1,280 萬美元。

We spent years building out our platform and team. And our continued progress in outpacing prior year's volume reflects our growing capacity. Additionally, while it's not reflected directly in the numbers, the quality of these properties was also particularly strong in 2023 versus prior years, given the reduced number of active net lease buyers in the market, which allowed FCPT to be very selective.

我們花了數年時間建立我們的平台和團隊。我們在超過去年銷售方面的持續進步反映了我們不斷增長的能力。此外，雖然沒有直接反映在數字中，但考慮到市場上活躍的淨租賃買家數量減少，FCPT 能夠非常挑剔，因此 2023 年這些房產的品質也比前幾年特別好。

Our overall cap rate for the year was 20 bps higher than our previous year's acquisitions despite a large long-term, investment-grade transaction with Darden as the tenant. We'd also like to note that our average initial lease term for the acquired properties this year was four years longer at 12 years compared to eight years last year.

儘管以達頓商學院為租戶進行了一項大型長期投資等級交易，但我們今年的整體資本化率仍比去年的收購高出 20 個基點。我們還想指出，今年收購的房產的平均初始租賃期限為 12 年，比去年的 8 年長了 4 年。

It's worth pointing out that the cap rates for Q4 were higher than our full-year figure. And today, we're pricing acquisitions above a 7% cap rate. Most of 2023's volume was closed in Q2 and early Q3 of this year and priced two to three months prior to that.

值得指出的是，第四季的資本化率高於我們全年的數據。今天，我們的收購定價高於 7% 的上限。2023 年的大部分成交量在今年第二季和第三季初結束，並在此之前兩到三個月定價。

For the year, our acquisitions have been roughly split between restaurant at 39%, medical retail at 36%, and auto service at 23%. We continue to monitor the market and expect to have more favorable opportunities and more attractive pricing in 2024 compared to 2023. However, we note that the bid-ask spread between buyers and sellers, while converging, still exists.

今年，我們的收購大致分為餐廳（39%）、醫療零售（36%）和汽車服務（23%）。我們將繼續關注市場，預計與 2023 年相比，2024 年將有更多有利的機會和更具吸引力的價格。然而，我們注意到買家和賣家之間的買賣價差雖然趨同，但仍然存在。

As mentioned earlier though, we believe that our team is entirely equipped to transact where it meets our underwriting criteria and is still accretive. The macro backdrop continues to be uncertain. We've focused on what we know: purchasing accretive and high-quality real estate leased to creditworthy tenants operating service-based retail businesses.

但正如前面提到的，我們相信我們的團隊完全有能力在符合我們承保標準的情況下進行交易，並且仍然具有增值性。宏觀背景仍存在不確定性。我們專注於我們所知道的：購買增值且高品質的房地產，並將其租賃給經營服務型零售企業的信譽良好的租戶。

Josh, I'll turn it over to you to discuss dispositions, re-leasing, and our portfolio.

喬什，我會把它交給你來討論處置、重新租賃和我們的投資組合。

Thanks, Patrick. We sold one Red Lobster property in October in Q4 last year that was underperforming versus brand average for $3.8 million, representing a small gain. Over the course of the past 14 months, we have sold six of our weakest Red Lobster properties at a weighted average cap rate of 6.5% and have reduced our exposure from 2.9% of annual base rent last year down to less than 1.7% today.

謝謝，派崔克。去年第四季度，我們於 10 月出售了 Red Lobster 的房產，該房產的表現低於品牌平均水平，售價為 380 萬美元，略有收益。在過去14 個月中，我們以6.5% 的加權平均上限出售了六處表現最差的Red Lobster 房產，並將我們的風險敞口從去年基本年租金的2.9% 降至目前的不到1.7% 。

Currently, most of our Red Lobsters are master leased. And the ones that are not in the master lease are reporting rent coverage in line or better than the rest of our portfolio. We are fortunate that even our weakest performing stores are able to be sold at attractive cap rates and recycled into our investments accretively. It reminds us that even if the capital markets continue to be challenging, our portfolio has immense value that can be unlocked through selective dispositions.

目前，我們的紅龍蝦大多是主租的。那些不在主租約中的公司報告的租金覆蓋率與我們投資組合的其他產品一致或更好。我們很幸運，即使是業績最差的商店也能夠以有吸引力的資本化率出售，並不斷地回收到我們的投資中。它提醒我們，即使資本市場繼續充滿挑戰，我們的投資組合仍具有巨大的價值，可以透過選擇性配置來釋放。

Turning to leasing. We had five leases that expired in Q4 with all five renewing above their current rent levels. This reinforces our confidence that rents are set at attractive levels for the tenants in our portfolio. Our portfolio today stands at 99.8% occupancy and remains well positioned with only 1.3% and 2.2% of annual base rent maturing in 2024 and 2025, respectively.

轉向租賃。我們有五份租約已於第四季到期，所有五份租約的續約均高於目前租金水準。這增強了我們的信心，即租金設定在對我們投資組合中的租戶有吸引力的水平。目前，我們的投資組合入住率為 99.8%，且仍處於有利位置，年基本租金的到期時間分別為 1.3% 和 2.2%，分別為 2024 年和 2025 年。

And with that, Gerry, I'll turn it back over to you.

格里，我會把它交還給你。

Thanks, Josh. For the fourth quarter, our cash rental revenues grew 15.8% on a year-over-year basis, including the benefit of rental increases and the $333 million of acquisitions that were closed in the last 12 months. We reported $57 million of cash rental income for the fourth quarter after excluding $0.6 million of straight-line and other noncash rental adjustments. And on a run rate basis, our current annual cash base rent for leases in place as of December 31 is $218.2 million. And our weighted average five-year annual cash rent escalator remains at 1.4%.

謝謝，喬許。第四季度，我們的現金租賃收入年增 15.8%，其中包括租金上漲和過去 12 個月完成的 3.33 億美元收購帶來的好處。我們報告第四季現金租金收入為 5700 萬美元，扣除 60 萬美元的直線租金調整和其他非現金租金調整後。以運行費率計算，截至 12 月 31 日，我們目前的年度現金基本租金為 2.182 億美元。我們的加權平均五年現金租金階梯仍維持在 1.4%。

As Bill mentioned, we collected 99.8% of base rent in the fourth quarter. And there were no material changes to our collectibility or credit reserves or any balance sheet impairments.

正如比爾所提到的，我們在第四季收取了 99.8% 的基本租金。我們的可收回性或信貸儲備或任何資產負債表減損沒有發生重大變化。

Cash G&A expense excluding stock-based compensation was $4.1 million, representing 7.1% of cash rental income for the quarter, down and -- compared to 8% for Q4 2022. For your modeling purposes, we expect cash G&A will be approximately $17 million for 2024. As a reminder, we take a conservative approach to G&A and expense 100% of costs associated with our internal investment team.

不包括股票薪酬的現金管理及行政費用為 410 萬美元，佔本季現金租金收入的 7.1%，較 2022 年第四季的 8% 下降。出於建模目的，我們預計 2024 年的現金管理費用約為 1700 萬美元。謹此提醒，我們對 G&A 採取保守態度，並 100% 支出與內部投資團隊相關的成本。

With respect to the balance sheet, at quarter end, we had $259 million of liquidity, comprised of $60 million of unrestricted cash, $8 million of 1031 proceeds available to redeploy and $236 million of undrawn revolver capacity.

就資產負債表而言，截至季末，我們擁有2.59 億美元的流動資金，其中包括6,000 萬美元的非限制性現金、800 萬美元的1031 收益可用於重新部署以及2.36 億美元的未提取循環能力。

With respect to overall leverage, our net debt to adjusted EBITDA in the fourth quarter was 5.5 times, and our fixed charge coverage ratio was a healthy 4.4 times. Our only near-term debt maturity is a $50 million private note due in June of 2024. Otherwise, our next debt obligation is $150 million of bank term debt due in November of 2025.

就整體槓桿率而言，第四季我們的淨債務與調整後 EBITDA 比率為 5.5 倍，固定費用覆蓋率為健康的 4.4 倍。我們唯一的近期到期債務是 2024 年 6 月到期的 5,000 萬美元私人票據。否則，我們的下一筆債務是 2025 年 11 月到期的 1.5 億美元銀行定期債務。

While we won't comment on specific timing or strategy, we expect to address this small maturity well prior to its expiration in June. And based on our strong credit profile and recent conversations with multiple banks in our lender group, we expect that the bank market remains open to us at an attractive cost of capital amongst the many options we have available when thinking about this maturity. We remain committed to layering and using conservatism in our debt maturity stacking.

雖然我們不會評論具體的時間或策略，但我們預計在 6 月到期之前解決這個小期限問題。基於我們強大的信用狀況以及最近與貸方集團中多家銀行的對話，我們預計，在考慮這一期限時，在我們可用的眾多選擇中，銀行市場仍然以有吸引力的資本成本向我們開放。我們仍然致力於在債務期限疊加中分層和使用保守主義。

And with that, I'll turn it back over to Elliott for investor Q&A.

接下來，我將把它轉回埃利奧特以供投資者問答。

(Operator Instructions) Anthony Paolone, JPMorgan.

（操作員指令）Anthony Paolone，摩根大通。

Just wondering if you could talk, Bill, about just like what you think is a good deal today, whether it's just a higher yield or what's maybe the lease length or real estate basis, like how you're sizing up the things that you like versus not doing anything.

只是想知道，比爾，你是否可以談談你今天認為的一筆好交易，無論是更高的收益率，還是租賃期限或房地產基礎，例如你如何評估你喜歡的東西與不做任何事情。

I'd invert the question. I look at net lease more of having selection bias-excluding attributes. So we're now being very focused on having truly triple-net leases even in industries where it's not always the case like medical and auto service. It's being focused on having longer lease term, higher credit tenants, and we're still getting pricing in -- north of a 7% cap.

我會顛倒這個問題。我更關注淨租賃具有排除選擇偏差的屬性。因此，我們現在非常專注於擁有真正的三重淨租賃，即使在醫療和汽車服務等並不總是如此的行業也是如此。它的重點是擁有更長的租賃期限、更高的信用租戶，而且我們仍在定價——超過 7% 的上限。

So we've always been quite selective. As Pat mentioned, the more recent environment allows us to be even more so. So it really is being able to very quickly ignore properties that we still see every once in a while that are priced very aggressively or have very high rents or have small, unproven tenants. That's the way I would look at it. You're seeing more investment-grade, triple-net, new construction medical retail in our pipeline would be one example.

所以我們一直都是非常有選擇性的。正如帕特所提到的，最近的環境讓我們更是如此。因此，它確實能夠很快地忽略那些我們偶爾會看到的、定價非常激進、租金非常高、或者租戶規模較小、未經證實的房產。我就是這麼看的。您會在我們的管道中看到更多投資等級、三網、新醫療零售就是一個例子。

And you mentioned in the 7s, like is that -- I think the couple of deals you've done so far this year, I think, were like a 6%, 9%, and you talked to 7s. Do you think that's good enough versus like where you think your capital costs are right now? Or do you think there should be some more movement upwards or how should we think about that?

你在 7 年代提到過，我認為今年到目前為止你已經完成的幾筆交易，我想，就像 6%、9% 一樣，你和 7 年代談過。與您認為目前的資本成本相比，您認為這夠好嗎？或者您認為應該有更多的向上運動，或者我們應該如何考慮這一點？

I think the trend seems to be in our direction. Obviously, the recent Fed commentary has sent the market up and down seemingly on a daily basis. But I would say that the cap rates, we're seeing good stuff to do in the low 7s. And that works with our current cost of capital. It certainly would be a lot more obvious if we had a couple more bucks on our stock price.

我認為趨勢似乎朝著我們的方向發展。顯然，最近聯準會的評論似乎每天都在讓市場上下波動。但我想說的是，就資本化率而言，我們在低 7 的水平上看到了一些好事情。這符合我們目前的資本成本。如果我們的股價能多漲幾美元，情況肯定會更加明顯。

Connor Siversky, Wells Fargo.

康納‧西弗斯基，富國銀行。

In the opening remarks, you mentioned the elevated level of broker deal costs that impacted acquisition volumes. I'm just curious maybe if you could extrapolate on that point a little bit. Is that just due to pricing dislocations between FCPT and the seller? Or are there any other factors to consider in those broken deals?

在開場白中，您提到經紀商交易成本的增加影響了收購量。我只是好奇你是否可以稍微推斷一下這一點。這只是由於 FCPT 和賣方之間的定價錯位嗎？或者在那些破裂的交易中還有其他需要考慮的因素嗎？

Yeah. I would just -- I mean maybe to get one level more detail, it's not that we're walking away from deposits. We haven't been doing that. It's that when you're working on an LOI, you have legal costs, perhaps you've even gave some third-party experts to look in environmental or to analyze a structural issue with the building.

是的。我只是——我的意思是也許要了解更多細節，這並不是說我們要放棄存款。我們還沒有這樣做過。問題在於，當您制定意向書時，您需要承擔法律費用，也許您甚至聘請了一些第三方專家來查看環境或分析建築物的結構問題。

And historically, that's part of our business. If we're going to buy north of 100 buildings a year, there are times when you get down the road with the building and then you find something that dissuades you from buying it.

從歷史上看，這是我們業務的一部分。如果我們每年要購買 100 棟以上的建築物，有時當您帶著建築物沿著路走時，您會發現一些東西阻止您購買它。

But just in this environment, we're making sure that we don't get wed to a property and make bad long-term decisions to avoid the deal costs. So it was notable in '23, wasn't really notable in the years past. I thought it was worth mentioning.

但正是在這種環境下，我們要確保我們不會為了避免交易成本而與一處房產結婚，並做出糟糕的長期決定。所以它在 23 年很引人注目，但在過去的幾年裡並沒有真正引人注目。我認為值得一提。

Okay. That's good color. I appreciate the context there. And then just quickly on the watch list. I mean I appreciate the work in getting out of some of those Red Lobster assets. Is there anything else in the portfolio that you have eyes on right now? Or maybe in the context of the choppy macro environment, are you considering changing any of the criteria to put something on a watch list?

好的。這顏色真好啊我很欣賞那裡的背景。然後很快就進入觀察名單。我的意思是，我很欣賞為擺脫其中一些紅龍蝦資產所做的工作。您現在關注的投資組合還有其他什麼嗎？或者也許在動盪的宏觀環境下，您是否正在考慮更改任何標準以將某些內容列入觀察名單？

No. I think that's a definitive no. Maybe to add to my comments and segueway this to Anthony's previous question, we are very happy that we didn't do novel net lease in the last handful of years. And what I mean by novel net lease, (inaudible) is $9 million car washes, bowling alleys, things like that, that you could get higher yields, and we could certainly be doing those right now with an eight handle on it. But the credit is much more tenuous than what we've been doing.

不。我認為這是明確的否定。也許要添加我的評論並將其與安東尼之前的問題分開，我們很高興我們在過去幾年中沒有進行新穎的網路租賃。我所說的新穎的淨租賃（聽不清楚）是指 900 萬美元的洗車、保齡球館等類似的東西，你可以獲得更高的收益，我們現在肯定可以用八個手柄來做這些事情。但這種信用比我們一直在做的要脆弱得多。

So one of the important factors of having a consistent model that errs on being conservative is, when you have choppy macro, your portfolio hangs in there better than your peers.

因此，擁有一個犯了保守錯誤的一致模型的重要因素之一是，當宏觀經濟波動時，你的投資組合比同業更能保持穩定。

(Operator Instructions) Now turn to Alex [Fagan] with Baird.

（操作員指示）現在轉向 Alex [Fagan] 和 Baird。

First one is, what is the investment pipeline looking like? How likely will we see an even higher percentage of medical and auto service assets as part of that investment total in 2024?

第一個是，投資管道是什麼樣的？到 2024 年，我們看到醫療和汽車服務資產佔投資總額的比例是否會更高？

Hard to predict full-year volumes because you'll still be sourcing deals for seven, eight more months before you know exactly what's going to happen in '24. I would imagine that the percentages, absent a chunky portfolio, will remain relatively consistent with what we've done in the past.

很難預測全年銷量，因為在您確切知道 24 年會發生什麼之前，您仍然需要七到八個月的時間來尋找交易。我認為，如果沒有龐大的投資組合，這些百分比將與我們過去所做的相對一致。

The pipeline is quite decent. I would say that we look at the pipeline in a green, yellow, orange, red color-coded way. Green being deals that we intend to close in the near term, yellow that we're negotiating LOIs, orange being on the radar, red being out there in the ether. We don't know whether they're going to happen, but they're certainly not close.

管道相當不錯。我想說的是，我們以綠色、黃色、橙色、紅色顏色編碼的方式查看管道。綠色是我們打算在短期內完成的交易，黃色是我們正在談判意向書，橙色是在雷達上，紅色是在以太坊。我們不知道它們是否會發生，但肯定不會發生。

I would say we've got a lot of things in the orange pipeline right now that if we had a little bit of better cost of capital and could lean into, we think would have actually pretty sensible ROAs associated with them or unlevered IRRs, however you want to look at it. It's just funding with the current equity and debt capital markets make it a little bit harder. So it's really as much a function of sources of capital as it is what we could deploy that capital for.

我想說的是，我們現在有很多橙色管道中的東西，如果我們有一點更好的資本成本並且可以傾斜，我們認為實際上會有相當合理的 ROA 與它們或無槓桿 IRR 相關，但是你想看看它。只是當前股權和債務資本市場的融資讓它變得有點困難。因此，它實際上既是資本來源的函數，也是我們可以部署資本的目的。

Got it. And actually, on the potential for any big portfolio deals, are there any ones that are interesting that Four Corners is currently looking at?

知道了。事實上，就任何大型投資組合交易的潛力而言，四角目前正在考慮哪些有趣的交易？

We're always looking at deals of various sizes. And you've seen throughout our history, there has been, I don't know, a half dozen deals, whether it's the original Chili's portfolio or Pat's Cheddar's deal last summer or large outparcel transactions, we're always working on something.

我們一直在尋找各種規模的交易。縱觀我們的歷史，你已經看到，我不知道有六筆交易，無論是原來的Chili 的投資組合，還是去年夏天帕特的切達乾酪的交易，還是大型的超包裹交易，我們總是在做一些事情。

But this is -- as we mentioned in the remarks, this is a market where buyers and sellers are 30, 40 basis points apart on where they're willing to transact. And so we're seeing more deals where the seller pulls their assets from the market than we have in the past.

但正如我們在評論中提到的，在這個市場上，買家和賣家在交易意願上有 30、40 個基點的差距。因此，與過去相比，我們看到更多的賣方將其資產從市場上撤出的交易。

This concludes our Q&A. I'll now hand back to Bill Lenehan for final remarks.

我們的問答到此結束。現在我將把最後的發言交還給比爾·萊內漢。

Thank you, Elliott. Well, pleased to have the call conclude in about the 20-minute mark as we were able to accomplish in our early days. Hopefully, we can get back to that. Thank you, everyone. And if you have questions, please don't hesitate to reach out. Thank you.

謝謝你，艾利奧特。嗯，很高興電話會議能在大約 20 分鐘內結束，就像我們早期能夠完成的那樣。希望我們能回到那個話題。謝謝大家。如果您有疑問，請隨時與我們聯繫。謝謝。

Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們衷心感謝您的參與。現在您可以斷開線路。