Four Corners Property Trust Inc (FCPT) 2024 Q2 法說會逐字稿

Good morning, all and thank you for joining us for the FCPT second quarter 2024 financial results conference call. My name is Carly, and I'll be the call coordinator for today.

大家早安，感謝您參加 FCPT 2024 年第二季財務業績電話會議。我叫卡莉，我將擔任今天的通話協調員。

(Operator Instructions)

（操作員說明）

I'll now hand over to Patrick Wernig to begin. Please go ahead.

現在我將由派崔克·韋尼格開始。請繼續。

Thank you, Carly.

謝謝你，卡莉。

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 known and unknown 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 some potential risks, please refer to our SEC filings, which can be found at fcpt.com. All the information presented on this call is current as of today, August 1, 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.

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。實際結果將受到已知和未知因素的影響，這些因素超出了我們的控製或預測能力。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。有關一些潛在風險的更詳細描述，請參閱我們向 SEC 提交的文件，該文件可在 fcpt.com 上找到。本次電話會議中提供的所有資訊均為截至今天（2024 年 8 月 1 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。

With that, I will turn the call over to Bill.

這樣，我就把電話轉給比爾。

Good morning. Thank you for joining us to discuss our second quarter results. I will make introductory remarks. Josh will comment further on the investment market, and Patrick will discuss our financial results and capital position.

早安.感謝您加入我們討論我們的第二季業績。我將做介紹性發言。喬許將進一步評論投資市場，派崔克將討論我們的財務表現和資本狀況。

We reported second quarter AFFO of $0.43 per share, which is up $0.01 or 2.4% from Q2 last year. Our existing portfolio continues to perform very well with higher rent collections and occupancy. Our EBITDAR-to-rent coverage in the second quarter was 4.9 times with the majority of our portfolio that reports this figure. This remains amongst the strongest coverage within the industry.

我們報告第二季度 AFFO 為每股 0.43 美元，比去年第二季度增長 0.01 美元，即 2.4%。我們現有的投資組合持續表現良好，租金收入和入住率更高。我們第二季的 EBITDAR 與租金的覆蓋率為 4.9 倍，我們的大多數投資組合都報告了這一數字。這仍然是業內最強大的覆蓋範圍之一。

As an update on the restaurant industry performance, we are seeing overall positive performance. According to Baird Research, year-over-year sales for the restaurant sector as a whole improved in the second quarter in the 5% range after 2% results in the first quarter. Similar to last quarter, casual dining saw small but improving declines of strong levels from the prior year. We note this broad view on the industry includes local restaurants and small regional chains. FCPT's casual dining operators are national brands and sector leaders that generally outperform the industry.

作為餐飲業表現的最新動態，我們看到整體表現積極。根據 Baird Research 的數據，餐飲業整體銷售額在第一季成長 2% 後，第二季年增 5%。與上季類似，休閒餐飲與去年相比出現小幅下降，但有所改善。我們注意到對該行業的廣泛看法包括當地餐廳和小型區域連鎖店。FCPT的休閒餐飲業者都是國家品牌和產業領導者，整​​體表現優於產業。

For example, Darden reported a 4% increase for LongHorn and a modest 1.5% decline in same-store sales for Olive Garden for the quarter ending May 26, with an overall increase of 1.6% for fiscal year 2024. Overall, for Darden operated brands, restaurant level EBITDA margins improved 20 basis points to 20.9%, reflecting commodity pricing and productivity improvements.

例如，Darden 報告稱，截至 5 月 26 日的季度，LongHorn 增長了 4%，Olive Garden 同店銷售額小幅下降 1.5%，而 2024 財年總體增長 1.6%。總體而言，對於達頓營運的品牌來說，餐廳層級的 EBITDA 利潤率提高了 20 個基點，達到 20.9%，反映出商品定價和生產力的提高。

Our second largest tenant, Brinker, reported Chili's same-store growth of 3.5%, and their restaurant level EBITDA margin improved 90 basis points to 14.1% for their latest quarter ended March 27. We also note Darden continues to see external growth opportunities. The company recently announced the acquisition of casual dining Tex-Mex brand, Chuy's. Chuy's has 101 locations and will be the 10th brand under the Darden umbrella. I would imagine the key intent would be to grow this brand store count in the near term.

我們的第二大租戶 Brinker 報告稱，截至 3 月 27 日的最新季度，Chili 的同店成長率為 3.5%，餐廳層級 EBITDA 利潤率提高了 90 個基點，達到 14.1%。我們也注意到達頓繼續看到外部成長機會。該公司最近宣布收購休閒餐飲 Tex-Mex 品牌 Chuy's。Chuy's 擁有 101 家門市，將成為 Darden 旗下的第十個品牌。我想主要目的是在短期內增加該品牌商店的數量。

Importantly, we remain disciplined allocators of capital. As we've stated in the past several quarters, we have established mental models and structured our team incentives to discourage deploying capital just to grow the company's size without also increasing per share metrics of earnings or intrinsic value. Our investment team compensation goals are not tied to acquisition volumes and we've never given acquisitions or earnings guidance. These mental models and team structure have allowed us to remain nimble, and we believe that we have operated successfully through today's environment.

重要的是，我們仍然是遵守紀律的資本配置者。正如我們在過去幾個季度所說的那樣，我們建立了心理模型並製定了團隊激勵措施，以阻止僅僅為了擴大公司規模而部署資本，而不增加每股收益或內在價值指標。我們的投資團隊薪酬目標與收購量無關，我們從未給予收購或獲利指引。這些思維模式和團隊結構使我們能夠保持靈活性，我們相信我們在今天的環境中已經成功運作。

As such, we are seeing a lot of interesting opportunities that fit both our quality guidelines and are priced in a manner that makes sense for FCPT, by which I mean accretive. We will continue to look to add to the pipeline in a meaningful way in the second half of the year while maintaining our quality standards.

因此，我們看到了許多有趣的機會，它們既符合我們的品質準則，又以對 FCPT 有意義的方式定價，我的意思是增值。我們將繼續尋求在下半年以有意義的方式增加管道，同時保持我們的品質標準。

Regarding Red Lobster, we have been in communication with the management, fortress and external advisers since they entered into bankruptcy. As we stated last quarter, our 18 stores are well covered and profitable. And after reviewing the store's latest updated financials as of May, they continue to be. Importantly, our conversations with Red Lobster have also confirmed our belief that our stores are performing well and in strong locations.

關於紅龍蝦，自其破產以來，我們一直在與管理層、堡壘和外部顧問溝通。正如我們上季度所說，我們的 18 家門市覆蓋良好且盈利。在查看了該商店截至 5 月的最新財務數據後，情況仍然如此。重要的是，我們與紅龍蝦的對話也證實了我們的信念，即我們的商店業績良好且地理位置優越。

While negotiations and proceedings are ongoing, we expect all of our Red Lobster locations to remain open for there to be very minimal or no disruption from a rent perspective. We think this speaks to the quality of FCPT's underwriting and asset selection process. That said, we note that the bankruptcy process is still ongoing. And we, along with our other landlords, are awaiting official confirmation. We expect them to exit the restructuring process before the end of Q3.

雖然談判和訴訟正在進行中，但我們預計所有紅龍蝦店都將保持開放，從租金角度來看，幹擾非常小或不會受到干擾。我們認為這說明了 FCPT 承保和資產選擇流程的品質。也就是說，我們注意到破產程序仍在進行中。我們和其他房東正在等待官方確認。我們預計他們將在第三季末之前退出重組流程。

On the issue of potential credit issues, we wanted to remind investors that FCPT's medical retail portfolio specifically avoids all pharmacy and medical office buildings. We have a great advantage in that our portfolio was formed after the advent of the cell phone, online shopping, and other new trends. We take a cautious approach to general retail merchandise, dollar stores, car wash, and large box retail, including theater and gyms. While a potential softening in consumer spending through the entire economy, we believe our portfolio is very well positioned.

關於潛在的信用問題，我們想提醒投資者，FCPT的醫療零售投資組合特別避開了所有藥局和醫療辦公大樓。我們有一個很大的優勢，因為我們的產品組合是在手機、線上購物和其他新趨勢出現之後形成的。我們對一般零售商品、一元商店、洗車店和大型零售店（包括劇院和健身房）採取謹慎態度。儘管整個經濟中的消費者支出可能會疲軟，但我們相信我們的投資組合處於非常有利的位置。

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

這樣，我將把它交給喬許進一步討論投資環境。

Thank you, Bill.

謝謝你，比爾。

During the quarter, FCPT acquired 17 properties for $45.5 million at a 7.2% cap rate, roughly 30-basis-point improvement from last quarter. The acquisitions this quarter were roughly split between auto service and medical retail properties at 49% and 47% of our volume, respectively, the balance being a single casual dining restaurant.

本季度，FCPT 以 4,550 萬美元的價格收購了 17 處房產，上限率為 7.2%，比上季度提高了約 30 個基點。本季的收購大致分為汽車服務和醫療零售物業，分別占我們交易量的 49% 和 47%，其餘為休閒餐廳。

For the year, we've been more weighted to medical retail with 61% of our volume coming in that category. As we stated before, these sectors all have similar pricing and quality, but the opportunities we close can vary from quarter to quarter. We still expect that we will be roughly even between these categories over the long term.

今年，我們更加重視醫療零售，61% 的銷售量來自該類別。正如我們之前所說，這些行業都有相似的定價和質量，但我們關閉的機會可能因季度而異。我們仍然預計，從長遠來看，這些類別之間將大致持平。

Our largest single transaction this quarter was a $20 million sale leaseback of eight properties with Mavis Tire. Mavis is a large consolidator in the auto service space with over 1,800 locations nationally. We had acquired some properties of Mavis from other landlords in the past, but this was our first direct sale leaseback with them. This is a case where we have been interested in this brand for some time, and has to wait for pricing to meet our return thresholds. Mavis has a long running program of selling sites one at a time at tighter cap rates, but there's a niche for FCPT to provide optionality to tenants like Mavis to also utilize midsized portfolio sales.

本季我們最大的單筆交易是與 Mavis Tire 一起以 2000 萬美元出售八處房產的回租。Mavis 是汽車服務領域的大型整合商，在全國擁有 1,800 多個分店。我們過去從其他房東那裡收購了 Mavis 的一些房產，但這是我們第一次與他們直接出售後回租。在這種情況下，我們對該品牌感興趣已有一段時間了，並且必須等待定價以滿足我們的退貨門檻。Mavis 有一項長期運作的計劃，即以更嚴格的上限利率一次出售一個網站，但 FCPT 可以為像 Mavis 這樣的租戶提供選擇權，讓他們也利用中型投資組合銷售。

As Bill mentioned, we are remaining disciplined on pricing and consistent with our established quality thresholds for new acquisitions. As a higher for longer rate dynamic continues, we are seeing the bid-ask spread between buyers and sellers narrow. The supply of net lease inventory continues to build up, and our team is well positioned to take advantage of these opportunities. Increasingly, we are finding attractive opportunities over a 7% cap rate with quality tenants and real estate. We also note that all acquisitions this quarter were with investment grade or large corporate tenants and a weighted average lease term of 13 years. We have momentum in the pipeline building today, and we expect that will continue into Q3.

正如比爾所提到的，我們在定價方面保持嚴格，並符合我們為新收購設立的品質門檻。隨著長期利率上漲的動態持續，我們看到買家和賣家之間的買賣價差縮小。淨租賃庫存的供應持續增加，我們的團隊已做好充分利用這些機會的準備。我們越來越發現上限利率超過 7% 的優質租戶和房地產的有吸引力的機會。我們也注意到，本季的所有收購都是投資等級或大型企業租戶，加權平均租賃期限為 13 年。我們今天的管道建設勢​​頭強勁，我們預計這種勢頭將持續到第三季。

Overall, our portfolio now stands at 1,154 leases in Darden now at 51% of our annual base rent and restaurants at 79%. Non-restaurants is now 21% of our portfolio, with automotive as our largest non-restaurant sector at 10%, followed by medical retail at 8%. On the disposition front, we did not sell any properties in Q2 of this year. However, we frequently receive reverse inquiries on our properties and continue to consider strategic dispositions, both as a potential alternative to issue new capital and as part of our active portfolio management strategy. We are fortunate that our portfolio continues to attract buyers and we can utilize dispositions for accretive capital recycling when needed or when capital markets are less attractive.

整體而言，我們在達頓的投資組合目前有 1,154 個租賃項目，占我們年基本租金的 51%，餐廳占我們年基本租金的 79%。非餐廳目前占我們投資組合的 21%，其中汽車是我們最大的非餐廳產業，佔 10%，其次是醫療零售，佔 8%。在處置方面，我們今年第二季沒有出售任何房產。然而，我們經常收到有關我們財產的反向詢問，並繼續考慮策略處置，既作為發行新資本的潛在替代方案，又作為我們積極的投資組合管理策略的一部分。我們很幸運，我們的投資組合繼續吸引買家，並且在需要時或當資本市場吸引力較低時，我們可以利用處置來增加資本回收。

Turning to leasing. We had 45 leases come due between January and December 2024. Almost all of these are now resulted with a very strong result of 95% being renewed or swapped for new brands. These results reinforce our underwriting confidence that we are partnering with the right tenants, and that rents are set at appropriate levels for the tenants in our portfolio.

轉向租賃。2024 年 1 月至 12 月期間，我們有 45 份租約到期。幾乎所有這些現在都取得了非常好的結果，95% 被更新或更換為新品牌。這些結果增強了我們的承保信心，即我們正在與合適的租戶合作，並且我們的投資組合中的租戶的租金設定在適當的水平。

Patrick, I'll turn it back over to you.

派崔克，我會把它還給你。

Thanks, Josh.

謝謝，喬許。

For Q2, our cash rental revenues grew 11.4% on a year-over-year basis, including the benefit of rental increases and $204 million of acquisitions in the last 12 months. We reported $57.9 million of cash rental income in the second quarter after excluding $0.6 million of straight-line and other non-cash rental adjustments.

第二季度，我們的現金租賃收入年增 11.4%，其中包括租金上漲和過去 12 個月 2.04 億美元的收購帶來的收益。扣除 60 萬美元的直線租金調整和其他非現金租金調整後，我們第二季的現金租金收入為 5,790 萬美元。

On a run rate basis, current annual cash base rent for the leases in place as of June 30, 2024, is $223.6 million, and our weighted average five-year annual cash rent escalator remains at 1.4%. Portfolio occupancy stands today at 99.6%, and remains well positioned with only 0.7% and 2% to annual base rent maturing in 2024 and 2025, respectively. As mentioned earlier, most of these 2024 lease maturities have already confirmed their extension. We collected 99.8% of base rent for the second quarter, and there were no material changes to our collectability or credit reserves nor any balance sheet impairments.

以運行率計算，截至 2024 年 6 月 30 日，現有租賃的當前年度現金基本租金為 2.236 億美元，我們的加權平均五年現金租金階梯仍維持在 1.4%。目前，投資組合的入住率為 99.6%，並且仍處於有利位置，到 2024 年和 2025 年到期的年基本租金分別僅為 0.7% 和 2%。如前所述，大部分 2024 年到期的租賃合約已確認延期。我們第二季收取了 99.8% 的基本租金，我們的可收回性或信貸儲備沒有重大變化，也沒有任何資產負債表減損。

Our high occupancy and collection is directly tied to the efforts of our asset management and accounting teams. In particular, FCPT has dedicated resources so that we can remain in tight communication with our tenants and be proactive on upcoming lease maturities. Cash G&A expense, excluding stock-based compensation, was $4.3 million, representing 7.4% of cash rental income for the quarter and compares to 7.8% for Q2 2023. We continue to expect cash G&A will be approximately $17 million for 2024. As a reminder, we take a conservative approach and do not capitalize any of the compensation costs related to our investment team.

我們的高入住率和收款率與我們的資產管理和會計團隊的努力直接相關。特別是，FCPT 擁有專用資源，以便我們能夠與租戶保持密切溝通，並積極應對即將到來的租賃到期。現金管理及行政費用（不含股票薪酬）為 430 萬美元，佔本季現金租金收入的 7.4%，而 2023 年第二季為 7.8%。我們仍預計 2024 年現金管理費用將約為 1,700 萬美元。提醒一下，我們採取保守的方法，不會將與我們的投資團隊相關的任何補償成本資本化。

Turning to capital sources. We issued $2.4 million of equity in the second quarter at an average offering price of $25.14. As a reminder, in March, we issued $85 million of term loans under our existing credit facility to refinance a June 2024 debt maturity.

轉向資金來源。我們在第二季發行了 240 萬美元的股票，平均發行價為 25.14 美元。提醒一下，3 月份，我們根據現有信貸安排發放了 8,500 萬美元的定期貸款，為 2024 年 6 月到期的債務進行再融資。

With respect to overall leverage, our net debt to adjusted EBITDAre in the second quarter was 5.7 times and our fixed charge coverage ratio was a healthy 4.3 times. We have $240 million of liquidity, comprised of $17 million of cash and $223 million of undrawn revolver capacity. We are committed to maintaining a conservative balance sheet and laddering our debt maturity profile. Our balance sheet remains in great shape today with our next debt maturity not scheduled until November 2025.

就整體槓桿率而言，第二季我們的淨負債與調整後 EBITDA 的比值為 5.7 倍，固定費用覆蓋率為健康的 4.3 倍。我們擁有 2.4 億美元的流動資金，其中包括 1,700 萬美元的現金和 2.23 億美元的未動用左輪手槍容量。我們致力於維持保守的資產負債表並逐步提高我們的債務到期狀況。目前，我們的資產負債表仍保持良好狀態，下一次債務到期日要到 2025 年 11 月。

Taking a step back to think about our overall cost of capital, we've been pleased to see sector equity multiples improve, including FCPTs. We've also seen some relief in treasury yields and the all-in rates for new debt issuance. Today, our cost of capital is looking much more attractive than last quarter, which gives us some good optionality for match funding new acquisitions. That said, we have liquidity and revolver capacity to meet our needs without new external capital.

退一步思考我們的整體資本成本，我們很高興看到包括 FCPT 在內的行業股本倍數的提高。我們也看到國債殖利率和新債發行的總利率有所下降。如今，我們的資本成本看起來比上季更具吸引力，這為我們為新收購的配對融資提供了一些良好的選擇。也就是說，我們有流動性和循環能力來滿足我們的需求，而無需新的外部資本。

With that, I'll turn it back over to Carly for investor Q&A.

接下來，我會將其轉回給卡莉，以供投資者問答。

(Operator Instructions)

（操作員說明）

Anthony Paolone.

安東尼保隆.

So I guess just first one, just wanted to confirm on the Red Lobster point. I guess they had just put out a bunch of new closures. And I guess you guys didn't have anything on that list either.

所以我想只是第一個，只是想確認紅龍蝦的觀點。我猜他們剛剛推出了一系列新的關閉方案。我猜你們的名單上也沒有任何東西。

Yeah, we're not aware of any of our stores are going to close. And our conversations with them have been very productive. The stores are doing well.

是的，我們不知道我們的任何商店將關閉。我們與他們的對話非常有成效。商店生意很好。

Okay. Thanks.

好的。謝謝。

And then the other credit that has come up is, I guess, one of the larger Pizza Hut franchisees went bankrupt, EYM, I think. And do you all have any exposure there that we should be thinking about?

然後出現的另一個信用是，我想，較大的必勝客特許經營商之一破產了，我想是 EYM。你們是否有任何我們應該考慮的曝光？

Yeah. We have a couple of stores. That's my knowledge, they're paying, and we have a personal guarantee from the founder of the company.

是的。我們有幾家商店。據我所知，他們正在付款，而且我們有公司創始人的個人擔保。

Okay. Thanks. And then just last one for me.

好的。謝謝。然後是我的最後一個。

In terms of the cap rates have been pretty steady here in the low 7s and it seems like, if anything, interest rates are stabilizing and there's some expectations of rates starting to come down. Do you think we've seen the end of cap rates backing up? Or how should we think about where the pipeline looks like today?

就資本化率而言，一直相當穩定在 7 左右，如果有什麼不同的話，那就是利率正在趨於穩定，並且人們對利率開始下降的預期。您認為我們已經看到資本化率回升的終結了嗎？或者我們應該如何思考今天的管道狀況？

Hard to tell. There was obviously a substantial six- to nine-month delay in cap rates going up. Hard to know what will happen going forward. Our focus has really been high grading our pipeline to make sure we have very high quality properties that we're closing on.

很難說。資本化率的上升顯然延遲了六到九個月。很難知道接下來會發生什麼事。我們的重點實際上是對我們的管道進行高評級，以確保我們擁有非常高品質的房產。

John Kilichowski, Wells Fargo.

約翰‧基利霍夫斯基，富國銀行。

I guess first, could you talk about what drove the increased acquisitions quarter over quarter. Was that a result of an improving cost of capital or just greater seller willingness?

我想首先，您能否談談推動收購逐季增加的原因。這是資本成本提高的結果，還是賣家意願增強的結果？

Yeah. I think really for the second half of the year, it will be a combination of both. Our equity cost of capital has improved, rates have come down, credit spreads have narrowed. So our sources of funds are much more attractive, and there is still a buildup in supply in the market, which we can take advantage of. And so we have been thoughtfully conservative when our cost of capital wasn't there. And now we are very much in the green zone and looking to grow.

是的。我認為下半年，這將是兩者的結合。我們的股權資本成本有所改善，利率下降，信貸利差有所縮小。因此，我們的資金來源更具吸引力，而且市場上的供應仍在增加，我們可以利用這一點。因此，當我們不存在資本成本時，我們一直保持深思熟慮的保守態度。現在我們正處於綠色區域並尋求成長。

Got it.

知道了。

And then an interesting question here. Just looking forward, as I look at your lease maturity schedule, obviously, it inflects from '27 through '33. Is there any desire on your part to have conversations with those tenants about amending those leases and maybe flattening that role or do you see that as an opportunity to re-price?

然後這裡有一個有趣的問題。展望未來，當我查看你們的租賃到期時間表時，顯然，它從 27 年到 33 年發生變化。您是否希望與這些租戶討論修改租約並可能扁平化該角色，或者您認為這是重新定價的機會？

I would expect the vast, vast majority of those leases, which are predominantly the Darden leases from spin that are 5.5, 6 times covered that those will be extended according to their contractual terms. So, very, very well covered, not something that's a big concern for us at all.

我預計這些租賃中的絕大多數，主要是來自旋轉的達頓租賃，覆蓋率是這些租賃的 5.5、6 倍，這些租賃將根據合約條款延期。所以，覆蓋得非常非常好，這對我們來說根本不是一個大問題。

Mitch Germain, Citizens JMP.

米奇·傑曼 (Mitch Germain)，公民 JMP。

(technical difficulty)--

（技術難度）——

Sorry, Mitch, your line is not very clear.

抱歉，米奇，你的台詞不太清楚。

Hey, Carly. Why don't (multiple speakers)--

嘿，卡莉。為什麼不（多位發言者）——

Yes, maybe on Mitch's line. Mitch, if I could ask you to raise a question again to see if that improves the line, that would be great.

是的，也許是米奇的電話。米奇，如果我可以請您再次提出問題，看看是否可以改善線路，那就太好了。

Alec Feygin, Baird.

亞歷克費金，貝爾德。

So to go back on the franchises with some large franchises going bankrupt, maybe provide some details about the health of franchises in the Four Corners portfolio as well as the percentage of the restaurant exposure is from franchises versus corporates.

因此，回顧一些即將破產的大型特許經營店的特許經營權，也許可以提供一些有關“四角”投資組合中特許經營店健康狀況的詳細信息，以及來自特許經營店與企業的餐廳風險百分比。

Yeah. We have very little franchise exposure overall, and that portfolio is 99.8% occupied. So we are in terrific shape there. And again, we are talking about a couple of properties on 1,150 property portfolio.

是的。總體而言，我們的特許經營權很少，但該投資組合已佔據 99.8%。所以我們在那裡的狀態非常好。我們再次討論的是 1,150 個房產組合中的幾處房產。

Got it.

知道了。

And overall, how is the watch list looking like? You talked about Red Lobster, anything else that we should -- that you are aware of, any changes?

整體而言，觀察名單是什麼樣的？你談到了紅龍蝦，還有你知道的我們應該做的其他事情，有什麼改變嗎？

No.

不。

Got it.

知道了。

And last one for me is, have you looked at Chuy's and/or talked with Darden about potentially targeting up for a sale leaseback or a different way to grow their store count?

我的最後一個問題是，您是否看過 Chuy's 和/或與 Darden 討論過可能以售後回租或以其他方式增加商店數量的可能性？

Yeah. They don't have a lot of owned real estate on their books. But we are in constant conversation with Darden and a number of other tenants all the time about supporting their growth. But I think that brand has a really strong brand proposition and a lot of white space to grow. If you think about Darden's other brands that are several hundred properties that would be a multiple of the 100 or so properties in the Chuy's brand today.

是的。他們的帳簿上沒有太多自有房地產。但我們一直在與達頓和其他一些租戶進行持續對話，並支持他們的發展。但我認為該品牌擁有非常強大的品牌主張和大量的發展空間。如果您考慮一下 Darden 的其他品牌，它們擁有數百個屬性，這將是 Chuy 品牌今天大約 100 個屬性的倍數。

Jim Kammert, Evercore.

吉姆·卡默特，Evercore。

Both Josh and Patrick touched on the strong re-leasing or addressing all the lease exposure for 2024. I am curious, can you share anything about the economics? Let's say, I am sure a fair bit were maybe fixed option exercise and whatnot. But what sort of recapture rates, I guess did you get on more rents that move to market, if you will?

喬許和派崔克都談到了 2024 年的強勁再租賃或解決所有租賃風險。我很好奇，你能分享一些關於經濟學的事情嗎？比方說，我確信相當一部分可能是固定選擇權行使之類的。但是，如果您願意的話，我猜您是否獲得了更多進入市場的租金？

Yeah, it was positive, but I would really caution that it's a very small sample size because the vast majority took down their contractual options, which is typically 1.5% per year. Occasionally, it's a 10% every 5 years, but economically think about as 1.5% per year, but the vast majority were the contractual extensions, due to very small sale size, but a positive number if you were to look at that very small sample size.

是的，這是積極的，但我真的要提醒一下，這是一個非常小的樣本量，因為絕大多數人都取消了他們的合約選擇，通常是每年 1.5%。有時，每 5 年 10%，但從經濟角度考慮，每年 1.5%，但絕大多數是合約延期，因為銷售規模非常小，但如果你看一下那個非常小的樣本，這是一個正數尺寸。

Okay. But then thinking about -- obviously, it builds as we talked about most of its Darden in the out years, but is that pretty representative and build, most of your deals have that fixed 1.5% type increment in the new lease rent from the prior expiring rent (multiple speakers)--

好的。但然後想想——顯然，它的建立就像我們在過去幾年中談論的大部分達頓一樣，但這是相當有代表性和建立的，你的大多數交易都有固定的1.5% 的新租賃租金增量。（多位發言者）——

Yes. There is (multiple speakers)--

是的。有（多位發言者）——

(Operator Instructions)

（操作員說明）

RJ Milligan, Raymond James.

RJ 米利根，雷蒙德詹姆斯。

Bill, you gave some restaurant same-store sales numbers at the beginning of the call. And I am just curious if we do see or start to see a downtrend in those numbers, does that create more buying opportunity? Does that reduce the buyer pool for those types of assets?

比爾，您在通話開始時提供了一些餐廳同店銷售數據。我只是好奇，如果我們確實看到或開始看到這些數字的下降趨勢，這是否會創造更多的購買機會？這是否會減少這些類型資產的買家池？

I don't think that, that will happen, would be my guess. The performance of restaurant net lease at a high level has been very strong, especially the brands that we focus on, the large public companies. Hopefully, it will provide an opportunity, but I don't think I would count on that.

我認為這不會發生，這是我的猜測。高水準的餐廳淨租賃表現非常強勁，尤其是我們重點關注的品牌，即大型上市公司。希望它能提供一個機會，但我認為我不會指望它。

Mitch Germain, Citizens JMP.

米奇·傑曼 (Mitch Germain)，公民 JMP。

I will try this again.

我會再試一次。

How does the math of a one-off Mavis look versus the portfolio? I know that Josh indicated pricing was a little bit tighter.

與投資組合相比，一次性 Mavis 的數學效果如何？我知道喬許表示定價有點緊張。

Josh?

喬許？

Yeah. Well, this is Patrick. I would say that there might be a 75-basis-point portfolio discount. The cap rates throughout net lease have moved significantly in the last 12 months, but you are seeing the return of a portfolio discount for buyers like ourselves that can take down more than one at a time.

是的。嗯，這是派崔克。我想說的是，投資組合可能會有 75 個基點的折扣。在過去 12 個月裡，整個淨租賃的資本化率發生了顯著變化，但對於像我們這樣的買家來說，您會看到投資組合折扣的回歸，一次可以購買多個房產。

Yeah. Mitch, just to elaborate.

是的。米奇，我想詳細說明一下。

For a number of years, there wasn't a -- there wasn't a ton of value in providing certainty of being a professional buyer of assets. Folks understood that if a 1031 exchange fell out, they would be able to put it back under contract in no time potentially at a tighter cap rate. Now because of the capital markets uncertainty, like the trend that we are seeing is perhaps people trying to get deals closed before the election, a little bit more value in being a large established professional buyer of buildings.

多年來，提供成為專業資產買家的確定性並沒有太多價值。人們明白，如果 1031 交易所失敗，他們將能夠立即以更嚴格的上限利率將其重新納入合約。現在，由於資本市場的不確定性，就像我們看到的趨勢可能是人們試圖在選舉前完成交易，成為大型成熟的專業建築買家更有價值。

That's super helpful.

這非常有幫助。

But to that point though, you are not seeing any buyers -- sorry, sellers pulled back to wait for the potential rate cut to see if that changes the pricing dynamic?

但到目前為止，你還沒有看到任何買家——抱歉，賣家撤退等待潛在的降息，看看這是否會改變定價動態？

We had seen some portfolios that have been on the market, call it, late last year, early this year, not transact. And so always hard to read the minds of sellers, but I think that, that was a dynamic. But as the forward SOFR curve would be a place that I would look for data indicates rates will be relatively elevated for the next 12, 18 months, that's the borrowing reference rate that a lot of sellers have a floating rate debt that's more flexible for prepayment.

去年年底、今年年初，我們看到市場上有一些投資組合，稱之為交易，而不是交易。所以總是很難讀懂賣家的想法，但我認為，這是一種動態。但由於遠期 SOFR 曲線是我尋找數據表明未來 12、18 個月利率將相對升高的地方，因此這是藉款參考利率，許多賣家擁有浮動利率債務，提前還款更加靈活。

That's super helpful. Last one for me.

這非常有幫助。最後一張給我。

Obviously, deal flow was centered away from the restaurant sector this quarter, was that by choice, or was that just a function of the assets that were available that met your underwriting criteria?

顯然，本季的交易流集中於餐飲業，這是出於選擇，還是只是符合您承保標準的可用資產的函數？

The latter for sure. The latter, 13 weeks is too short of a time to draw any conclusions other than we are excited to be buying assets in the auto service and medical sector. But we are always looking at restaurants. There is plenty in our pipeline. You will see that percentage go up and down by quarter.

肯定是後者。對於後者，13 週的時間太短，無法得出任何結論，但我們很高興能夠購買汽車服務和醫療行業的資產。但我們總是在尋找餐廳。我們的管道中有很多。您會看到該百分比按季度上下波動。

Thank you. We currently have no further questions. So I will hand back to Bill Lenehan.

謝謝。目前我們沒有進一步的問題。所以我將把問題交還給比爾·萊內漢 (Bill Lenehan)。

Terrific. Well, exciting quarter. We are very excited for the second half of the year. Again, the combination of lower borrowing costs, a higher stock price, and a attractive acquisition market bodes well for the next six months.

了不起。嗯，令人興奮的季度。我們對下半年感到非常興奮。同樣，較低的借貸成本、較高的股價和有吸引力的收購市場的結合預示著未來六個月的良好前景。

Thanks, everyone.

謝謝大家。

This concludes today's call. Thank you to everyone for joining. You may disconnect your lines.

今天的電話會議到此結束。感謝大家的加入。您可以斷開線路。