Four Corners Property Trust Inc (FCPT) 2024 Q3 法說會逐字稿

Good morning all and thank you for joining us for the FCPT third-quarter 2024 financial results conference call. My name is Carly, and I'll be coordinating your call today. (Operator Instructions)

大家早安，感謝您參加 FCPT 2024 年第三季財務業績電話會議。我叫卡莉，今天我將協調您的電話。（操作員說明）

I'd now like to hand over to your host, Patrick Wernig, to begin. The floor is yours.

現在我想請主持人派崔克‧韋尼格 (Patrick Wernig) 開始發言。地板是你的。

Thank you, Carly. 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.

謝謝你，卡莉。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。

All the information presented on this call is current as of today, October 31, 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 10 月 31 日）的最新資訊。此外，本次電話會議中提出的非公認會計原則財務指標（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 third 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三季業績。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。

I'd like to start today's call on a theme which we've spent a lot of time internally over the past year: investment discipline. When the net lease industry saw its cost of capital rise in 2023, we paused external growth. We focused on accretion and declined to go out on the risk spectrum to make the math pencil at the cost of diluting our portfolio quality. We were patient. We didn't cut team resources, and we were confident when the market shifted back, we'd be ready to return to growth.

我想以過去一年我們在內部花費了大量時間的主題開始今天的電話會議：投資紀律。當2023年淨租賃業的資本成本上升時，我們暫停了外部成長。我們專注於增值，拒絕以降低我們的投資組合品質為代價來製作數學鉛筆的風險範圍。我們很有耐心。我們沒有削減團隊資源，而且我們有信心當市場回升時，我們將準備好恢復成長。

This past quarter saw our cost of capital on both the debt and equity side drop. And so we turned the acquisition machine back on with as much vigor as we turned it off. We raised over $224 million in equity. And today, we have $100 million in equity forwards, full capacity on the revolver and the lowest leverage we've had in nearly five years. We are excited about the outlook for Q4 and next year.

上個季度我們的債務和股權資本成本均有所下降。因此，我們以與關閉採集機器一樣的力度重新打開它。我們籌集了超過 2.24 億美元的股本。如今，我們擁有 1 億美元的股票遠期合約、左輪手槍的全部產能以及近五年來的最低槓桿率。我們對第四季和明年的前景感到興奮。

Now shifting to our in-place portfolio. We continue to perform very well with high rent collections and occupancy. Our rent coverage in the third quarter was 5x for the majority of our portfolio that reports this figure. This remains amongst the strongest coverage in the industry.

現在轉向我們的就地投資組合。我們繼續以高租金收入和入住率表現良好。對於報告這一數字的大多數投資組合，我們第三季的租金覆蓋率為 5 倍。這仍然是業內最強大的覆蓋範圍之一。

As a reminder, FCPT's casual dining operators are national brands and sector leaders, and they generally outperform the industry. For example, Brinker recently reported Chili's same-store sales growth at plus 14% for the quarter ended in September. Similarly, Olive Garden and LongHorn reported same-store sales growth of plus 1.6% and plus 4.7% for the full year ended May 2024. In the most recent quarter ended August 2024, those figures moderated slightly to a plus 3.7% increase for Longhorn and a 2.9% decline for Olive Garden.

需要提醒的是，FCPT的休閒餐飲業者都是國家品牌和產業領導者，他們的表現普遍優於業界。例如，Brinker 最近報告稱，截至 9 月的季度，Chili 的同店銷售額增長了 14% 以上。同樣，Olive Garden 和 LongHorn 報告截至 2024 年 5 月的全年同店銷售額分別成長 1.6% 和 4.7%。在截至 2024 年 8 月的最近一個季度，這些數字略有放緩，Longhorn 成長了 3.7%，Olive Garden 下降了 2.9%。

As we look forward towards the rest of the year, we note that Q4 is typically our busiest quarter for acquisitions, and we believe that trend will continue in 2024. It will be a busy quarter. The team is seeing real success in sourcing high-quality deals consistent with our quality thresholds. We do not give guidance on the pipeline and our -- or our acquisition volume, but we do expect the coming months to be very active. So please watch out for press releases as we will be following our typical cadence of announcing each deal the day they close.

在展望今年剩餘時間時，我們注意到第四季度通常是我們收購最繁忙的季度，我們相信這一趨勢將在 2024 年持續下去。這將是一個繁忙的季度。該團隊在尋找符合我們品質閾值的高品質交易方面取得了真正的成功。我們不會就管道和我們的收購量提供指導，但我們確實預計未來幾個月將非常活躍。因此，請留意新聞稿，因為我們將遵循每筆交易結束當天宣布的典型節奏。

As for portfolio management, we want to remind investors that our portfolio has near-zero exposure to problem subsectors, such as theaters, pharmacies, big box retail, gyms, dollar stores, car wash or general merchandise. So while a potential softening in consumer spending may ripple through our retail operators, we believe our portfolio is very well positioned.

至於投資組合管理，我們想提醒投資者，我們的投資組合對問題子產業的曝險幾乎為零，例如劇院、藥局、大型零售店、健身房、一元商店、洗車或日用百貨。因此，儘管消費者支出的潛在疲軟可能會波及我們的零售營運商，但我們相信我們的投資組合定位非常有利。

We'd like to provide a final update on Red Lobster. The company exited bankruptcy in early September. All 18 of our stores were affirmed and remain open without any rent cut or disruption of payment. In fact, most of our stores had rent increases over the past few months, and others continue to pay percentage rent.

我們想提供有關紅龍蝦的最終更新。該公司於九月初退出破產程序。我們所有 18 家商店均已確認並保持營業，沒有任何租金削減或付款中斷。事實上，我們的大多數商店在過去幾個月裡租金都上漲了，而其他商店則繼續支付百分比租金。

On a final note, while we continue to recognize that Darden is a strong foundation to our portfolio, we have reached a new milestone in our diversification efforts. We now have 156 brands in the portfolio, with Darden now making up slightly less than half of our portfolio.

最後一點，雖然我們繼續認識到到達頓是我們投資組合的堅實基礎，但我們在多元化努力方面已經達到了一個新的里程碑。目前，我們的產品組合中有 156 個品牌，其中達登 (Darden) 品牌所佔比例略低於我們產品組合的一半。

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

有了這個，我將把它交給喬許——進一步討論投資環境。

Thank you, Bill. During the quarter, we acquired 21 properties for $71 million at a 7.2% cap rate, in line with last quarter. The acquisitions this quarter were 100% restaurant, with the majority coming from the Bloomin' transaction and the remainder from one-off acquisitions, a Buffalo Wild Wings and a Taco Bell.

謝謝你，比爾。本季度，我們以 7.2% 的上限利率以 7,100 萬美元的價格收購了 21 處房產，與上季持平。本季收購的 100% 都是餐廳，其中大部分來自 Bloomin' 交易，其餘則來自一次性收購，即 Buffalo Wild Wings 和 Taco Bell。

For the year, our acquisitions have been pretty evenly split between restaurant, auto service and medical retail. As we stated before, restaurants, auto service and medical retail are all sectors that are attractive to us, but the actual opportunities we see may vary from quarter-to-quarter. We still expect that new acquisitions will be roughly evenly split between these categories over the long term.

今年，我們的收購在餐廳、汽車服務和醫療零售領域相當均衡。正如我們之前所說，餐飲、汽車服務和醫療零售都是對我們有吸引力的行業，但我們看到的實際機會可能會因季度而異。我們仍然預計，從長遠來看，新收購將在這些類別之間大致平均分配。

As mentioned, the largest single transaction this quarter was a $66 million portfolio of 20 Bloomin' Brands restaurants comprised of 10 Outback Steakhouses and 10 Carrabba's Italian Grills. Bloomin' Brands is a strong public operator with over 1,400 restaurants and $4.5 billion in sales. They are now our third largest tenant at 3.3%, behind only Darden and Brinker. The acquired properties scored very high on our scorecard, are under 2 long-term master leases and leased to corporate Bloomin' Brands entities. The rent coverage is similar to our original spin portfolio and fits in well with our approach to seeking high-quality net lease.

如前所述，本季最大的單筆交易是 20 家 Bloomin' Brands 餐廳的 6,600 萬美元投資組合，其中包括 10 家 Outback Steakhouses 和 10 家 Carrabba's Italian Grills。Bloomin' Brands 是一家實力雄厚的公共營運商，擁有 1,400 多家餐廳，銷售額達 45 億美元。他們現在是我們的第三大租戶，佔 3.3%，僅次於 Darden 和 Brinker。所收購的房產在我們的記分卡上得分非常高，屬於 2 個長期主租賃合同，並出租給 Bloomin' Brands 實體。租金覆蓋範圍與我們原來的旋轉投資組合相似，非常適合我們尋求高品質淨租賃的方法。

As Bill mentioned, we have turned our acquisition machine back on and have been very active pursuing new opportunities, remaining disciplined on our pricing and quality thresholds for new acquisitions. One point I'd emphasize is that we did not spend the first half of the year, when deal volume was muted, being idle. Our team has built an extensive network of internal systems to track opportunities, leverage data and analytics for adaptive underwriting and process transactions in an efficient and organized manner. These systems have, in turn, augmented our sourcing capabilities. Coupled with our established reputation as an attentive and credible buyer, we have signed up several deals in just the past month as we continue to take full advantage of our improved cost of capital.

正如比爾所提到的，我們已經重新啟動了收購機器，並一直非常積極地尋求新的機會，對新收購的定價和品質門檻保持嚴格的要求。我要強調的一點是，我們並沒有在上半年交易量低迷的時候無所事事。我們的團隊建立了廣泛的內部系統網絡，以追蹤機會、利用數據和分析進行自適應承保，並以高效和有組織的方式處理交易。這些系統反過來又增強了我們的採購能力。加上我們作為細心和可靠買家的聲譽，我們在過去一個月內簽署了幾筆交易，因為我們繼續充分利用我們改善的資本成本。

Our outlook on future additional opportunities also remain positive. Per The Boulder Group's net lease market report, the supply of single-tenant retail properties actively on the market increased to 3,975 overall in Q3, an 8.1% increase over the prior quarter. As transaction volume is still rebounding across the industry, we expect our opportunity set to continue to grow in the near term. We are getting traction on very attractive deals that were outside of our price range for the past several years but now, in this landscape, can be purchased accretively.

我們對未來更多機會的展望也仍然樂觀。根據 Boulder Group 的淨租賃市場報告，第三季市場上活躍的單一租戶零售物業供應量整體增加至 3,975 套，較上一季成長 8.1%。由於整個行業的交易量仍在反彈，我們預計我們的機會在短期內將繼續成長。我們正在吸引非常有吸引力的交易，這些交易在過去幾年中超出了我們的價格範圍，但現在，在這種情況下，可以增量購買。

Overall, our portfolio now stands at 1,176 leases, with restaurants at 79%. Automotive is our largest nonrestaurant sector at 10%, followed by medical retail at 8%. We will continue our steady approach to diversifying over time.

整體而言，我們的投資組合目前共有 1,176 個租賃項目，其中餐廳佔 79%。汽車是我們最大的非餐飲業，佔 10%，其次是醫療零售，佔 8%。隨著時間的推移，我們將繼續採取穩健的多元化策略。

On the disposition front, we did not sell any properties in Q3 of this year. However, we are still frequently receiving reverse inquiries on our properties and continue to consider strategic dispositions, both as an attractive alternative to issuing new capital and as a part of our active portfolio management strategy.

在處置方面，我們今年第三季沒有出售任何房產。然而，我們仍然經常收到對我們的房產的反向詢問，並繼續考慮戰略配置，這既是發行新資本的有吸引力的替代方案，也是我們積極的投資組合管理策略的一部分。

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

派崔克，我會把它還給你。

Thanks, Josh. Let me start by going through some of our financial highlights for the quarter. We reported Q3 AFFO per share of $0.43, which is up 2.4% from last year. Q3 cash rental income was $58.7 million, representing growth of 4.8% for the quarter compared to last year. This figure benefited from both in-place rental growth and $145 million of acquisitions in the last 12 months.

謝謝，喬許。首先讓我回顧一下本季的一些財務亮點。我們報告第三季 AFFO 每股 0.43 美元，比去年增長 2.4%。第三季現金租金收入為 5,870 萬美元，較去年同期成長 4.8%。這一數字得益於過去 12 個月內租金成長和 1.45 億美元的收購。

On a run rate basis, current annual cash base rent for leases in place as of quarter end is $229 million, and our weighted average 5-year annual cash rent escalator remains at 1.4%.

以運行率計算，截至季末現有租賃的年度現金基本租金為 2.29 億美元，我們的加權平均 5 年現金租金階梯仍維持在 1.4%。

Cash G&A expense, excluding stock-based compensation, was $4 million, representing 6.9% of cash rental income for the quarter and compares to 7.2% for the same period last year. 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.

現金管理及行政費用（不含股票薪酬）為 400 萬美元，佔本季現金租金收入的 6.9%，去年同期為 7.2%。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。

Portfolio occupancy today is 99.6%, and we have just 0.1% and 1.6% of annual base rent maturing in 2024 and 2025, respectively. We've already made great progress on 2025 lease extensions. We collected 99.8% of base rent for the third quarter, and there were no material changes to our collectibility or credit reserves nor were there any balance sheet impairments.

目前，投資組合的入住率為 99.6%，而我們的年基本租金分別只有 0.1% 和 1.6% 將於 2024 年和 2025 年到期。我們已經在 2025 年續租方面取得了巨大進展。第三季我們收取了 99.8% 的基本租金，我們的可收款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 collections is directly tied to the efforts of our asset management and accounting teams. In particular, our company has dedicated resources so that we can remain in tight communications with our tenants and be proactive on future lease maturities.

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，我們公司擁有專用資源，以便我們能夠與租戶保持密切溝通，並在未來的租賃到期時積極主動。

Now I'd like to spend a few minutes on cost of capital and state of balance sheet. We've been pleased to see the sector equity multiples improve significantly, including ours. We've also seen some relief in the all-in rates from new debt issuance. So today, our cost of capital is looking much more attractive than last quarter, which supports our new efforts to build out our acquisitions pipeline.

現在我想花幾分鐘談談資本成本和資產負債表狀況。我們很高興看到包括我們在內的行業股本倍數顯著提高。我們也看到新債發行的總利率有所下降。因此，今天我們的資本成本看起來比上季更具吸引力，這支持了我們建立收購管道的新努力。

We've been very busy in that area and had great success in raising equity via our at-the-market program this quarter. Since July, we raised over $224 million of equity at a weighted average gross price of $27.38. Today, we have $100 million of equity forwards outstanding at a price of $28.23. This capital, which equates to roughly 8% of our market cap, was raised in just a few months and demonstrates how the ATM is not only efficient from a fee perspective but also increasingly viable for raising significant proceeds.

我們在該領域一直非常忙碌，並在本季度透過我們的市場計劃籌集股本方面取得了巨大成功。自 7 月以來，我們以 27.38 美元的加權平均總價籌集了超過 2.24 億美元的股權。今天，我們有 1 億美元的未償股票遠期，價格為 28.23 美元。這筆資金約占我們市值的 8%，在短短幾個月內就籌集到了，這表明 ATM 不僅從費用角度來看是高效的，而且在籌集大量收益方面也越來越可行。

Regarding our outstanding debt, we have a weighted average maturity of four years. We have $150 million term loan, and our undrawn $250 million revolver, both coming due in November 2025. We won't comment on specific timing or strategy. We are committed to maintaining a conservative balance sheet and laddering our debt maturity profile. The lending market has seen sentiment improve a great deal versus last year, and we are already in communication with our lenders on those Q4 2025 maturities. We expect to address those in time and well in advance of expiration.

關於我們的未償債務，我們的加權平均期限為四年。我們有 1.5 億美元的定期貸款和未提取的 2.5 億美元的循環貸款，均將於 2025 年 11 月到期。我們不會評論具體時間或策略。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。與去年相比，貸款市場的情緒有了很大改善，我們已經就 2025 年第四季的到期日與貸方進行了溝通。我們希望在到期前及時解決這些問題。

With respect to overall leverage, our net debt to adjusted EBITDA in Q3 ticked down to 4.9x, inclusive of outstanding net equity forwards as of September 30. This is the lowest our leverage has been since 2019 and compares to 5.7x at the end of Q2. Our fixed charge coverage ratio is a healthy 4.4x. We have $393 million of liquidity comprised of $44 million of cash as of 9/30, our fully undrawn revolver as well as unsettled equity forwards as of October 30.

就整體槓桿率而言，第三季我們的淨債務與調整後 EBITDA 比率下降至 4.9 倍，其中包括截至 9 月 30 日的未償淨股權遠期。這是我們自 2019 年以來的最低槓桿率，而第二季末的槓桿率為 5.7 倍。我們的固定費用覆蓋率為健康的 4.4 倍。截至 9 月 30 日，我們擁有 3.93 億美元的流動資金，其中包括 4,400 萬美元的現金、截至 10 月 30 日尚未提取的左輪手槍以及未結算的股票遠期。

With that, we will turn it back over to Carly for investor Q&A.

至此，我們將把它轉回卡莉進行投資者問答。

(Operator Instructions)

（操作員說明）

Anthony Paolone, JPMorgan.

安東尼保隆，摩根大通。

Great, thanks. Good morning. I guess first question is, you talked about just your cost of capital being key to just getting back into the acquisition business and more vigor. But what about just in terms of are you seeing more things come to market as well? Or is this just purely you all engaging more because of your capital costs?

太好了，謝謝。早安.我想第一個問題是，您談到資本成本是重新進入收購業務和更具活力的關鍵。但是，您是否也看到更多產品進入市場？或者這純粹是你們因為資本成本而更參與？

I think it's both. We had a number of transactions that we've worked on for quite some time where we just couldn't bridge that last 10, 15 basis points of acquisition cap rate that we were able to move into the pipeline in the last couple of months. So we're also seeing more liquidity in the market generally.

我認為兩者都是。我們已經進行了相當長一段時間的一些交易，但我們無法彌合過去幾個月我們能夠進入管道的收購上限率的最後 10、15 個基點。因此，我們總體上也看到市場上的流動性增加。

Is the pipeline and what sounds like it's going to keep you busy the next few months just typical one-off transactions? Or are there some larger portfolios in the mix? Or how do we think about that?

管道以及聽起來會讓您在接下來的幾個月裡忙碌的事情是否只是典型的一次性交易？或者其中是否有一些更大的投資組合？或者我們如何看待這個問題？

It's a mix. Yes, I don't think it's much different than what you've seen over the last number of years, individual property small portfolios, the gamut.

這是一個混合。是的，我認為這與您過去幾年所看到的個人財產小型投資組合並沒有太大不同。

Okay. And then just last one. Just can you talk about, as you think about the restaurant space, just broadly where you're seeing growth or where you're seeing contraction or credit risk, either in concepts or size of tenants or whatnot?

好的。然後就是最後一張。當您考慮餐廳空間時，您能否大致談談您在哪裡看到了增長，或者在哪裡看到了收縮或信用風險，無論是概念還是租戶規模等等？

Well, I think our strategy of focusing on large public companies, very creditworthy entities has really paid off. We're seeing some credit issues in the sort of bottom end of the range. And then I would say, high level, the brands that have been able to provide value to the consumer because their 4-wall economics are very strong have really been successful. Chili's is a great example of that. Darden is a great example of that.

嗯，我認為我們專注於大型上市公司和信譽良好的實體的策略確實得到了回報。我們看到一些信用問題處於該範圍的底部。然後我想說，高水準的，那些能夠為消費者提供價值的品牌，因為他們的四牆經濟非常強大，他們確實取得了成功。辣椒就是一個很好的例子。達頓就是一個很好的例子。

Our tenants are large, proven 4-wall economics, and they haven't had to raise prices as much as overall inflation. So they provide a great value to the consumer.

我們的租戶規模龐大，經過驗證的四牆經濟學，他們不必像整體通膨那樣提高價格。因此它們為消費者提供了巨大的價值。

Okay. Thank you.

好的。謝謝。

Thank you, Anthony.

謝謝你，安東尼。

John Kowski, Wells Fargo.

約翰‧科斯基，富國銀行。

Thank you. Maybe just, Bill, on the comment you made last quarter, you had made mention that there was a premium that the market was putting on certainty of close given the capital markets uncertainty and kind of people trying to push deals to get done before the election. How much do you see the election continuing to be sort of a catalyst for cap rate volatility? And then maybe does that kind of persist into us waiting to see how the candidates' policies actually in fact -- or excuse me, impact inflation, therefore, rates?

謝謝。也許只是，比爾，在你上個季度發表的評論中，你提到，考慮到資本市場的不確定性以及試圖在大選前推動交易完成的人們，市場對成交的確定性給予了溢價。您認為選舉在多大程度上繼續成為上限利率波動的催化劑？那麼，也許我們會繼續等待，看看候選人的政策實際上如何影響通貨膨脹，進而影響利率？

There's a lot in that question. I would say we saw a concerted period where we were signing up new deals where they wanted to get under purchase and sale agreement prior to the current period. And we took advantage of that.

這個問題有很多內容。我想說，我們看到了一個協調時期，我們正在簽署新交易，他們希望在當前時期之前達成購買和銷售協議。我們利用了這一點。

What happens for the remainder of the year, frankly, remains to be seen. I think that that's too difficult to call. Obviously, the election is a very close race. We watch with interest. But honestly, I'd say we have very little competitive advantage in assessing the probability of different outcomes and then, obviously, very little competitive advantage in assessing the second-order effects.

坦白說，今年剩餘時間會發生什麼事還有待觀察。我認為這太難稱呼了。顯然，這次選舉是一場非常勢均力敵的競選。我們饒有興趣地觀看。但老實說，我想說我們在評估不同結果的機率方面幾乎沒有競爭優勢，而且顯然在評估二階效應方面也幾乎沒有競爭優勢。

Okay. And then maybe just jumping to kind of the consumer. I think last quarter, a lot of the focus is on the lower-end consumer and then some data on QSRs coming in mix. That doesn't seem to be very much in the conversation today. I mean what has changed on the ground level in terms of consumer behavior that you've noticed?

好的。然後也許只是跳到消費者的類型。我認為上個季度，很多關注點都集中在低端消費者上，然後還有一些關於快餐的數據。這在今天的談話中似乎不多。我的意思是，您注意到消費者行為方面發生了哪些根本變化？

I would say that the brands that we have as tenants are performing well, I think, at the very high end of luxury, which we have very little exposure to the inflation in pricing of consumer goods, is finding a consumer that's inelastic, which shouldn't be a surprise as luxury good pricing, in many cases, has gone up 50% in the last 5 years.

我想說的是，我們作為租戶的品牌表現良好，我認為，在奢侈品的高端領域，我們很少受到消費品定價通膨的影響，正在尋找缺乏彈性的消費者，這應該這並不奇怪，因為在許多情況下，奢侈品的定價在過去5 年裡上漲了50%。

But in the more normal way segment of the economy that we play in, Olive Garden, Chili's, medical retail, car washes, tire stores, that's much more necessity based, it's part of every American's everyday life, we're seeing pretty decent stability. I will say that the election seems to be distracting consumers over the last couple of weeks. But I think that that's a temporary effect.

但在我們所處的更正常的經濟領域，橄欖園、辣椒、醫療零售、洗車店、輪胎店，這些都是以必需品為基礎的，它是每個美國人日常生活的一部分，我們看到了相當不錯的穩定性。我想說的是，過去幾週的選舉似乎分散了消費者的注意力。但我認為這只是暫時的影響。

Mitch Germain, Citizens JMP.

米奇·傑曼 (Mitch Germain)，公民 JMP。

Thank you. Fairly active in the capital raising front through August, obviously, funding the Bloomin' Brands deal. I'm just curious, obviously, the capital raising continued. Since then, what happened to the pipeline over the course of that time? Did you see like a real sharp acceleration in deal volumes coming to you?

謝謝。顯然，整個八月的融資活動相當活躍，為 Bloomin' Brands 交易提供了資金。我只是好奇，顯然，融資仍在繼續。從那時起，管道在這段時間裡發生了什麼事？您是否看到交易量真正急劇加速？

So Mitch, I think the answer is in your question, right? We match fund, and we were opportunistic to raise equity. And at the same time, we found a lot of really interesting acquisitions that were high scoring that were priced accretively. So we didn't sit on our hands.

所以米奇，我想答案就在你的問題中，對嗎？我們匹配基金，並且我們機會主義地籌集股本。同時，我們發現了許多非常有趣的收購，這些收購得分很高，定價也不斷上漲。所以我們沒有坐視不管。

Got you. You mentioned investing with the large public companies. Does that kind of take some of the franchise deals out of your pipeline at this point?

明白你了。您提到投資大型上市公司。此時此刻，這是否會導致您的某些特許經營交易被取消？

We don't overemphasize public versus franchisee. We focus on whether the tenant has strong credit. So there are some small public companies that we've avoided. There are some very large franchisees that we would welcome in the portfolio. So we really look to what's the underlying credit of the tenant.

我們並不過度強調公眾與特許經營商。我們專注於租戶的信用是否良好。因此，我們避開了一些小型上市公司。我們歡迎一些非常大的特許經營商加入我們的投資組合。因此，我們真正關注租戶的基本信用是什麼。

And we found, in the last few months, that not only have we been able to get pricing that works well for us, but we've been able to buy some very high-scoring assets.

我們發現，在過去的幾個月裡，我們不僅能夠獲得適合我們的定價，而且還能夠購買一些得分非常高的資產。

Got you. And then more liquidity in the acquisition markets, does that equate to more competition as well?

明白你了。那麼收購市場的流動性增加，是否也意味著競爭更加激烈？

It's always competitive, Mitch, unfortunately. But I would say that as Josh very accurately stated, we stayed really busy in working on deals, cultivating these relationships, being active. And when our cost of capital changed, we changed with it.

不幸的是，米奇，競爭總是很激烈。但我想說，正如喬許非常準確地指出的那樣，我們一直忙於處理交易、培養這些關係、保持活躍。當我們的資本成本改變時，我們也會隨之改變。

And a number of the transactions that you'll see close over the next few months were things that we started working on very early in the year. We just couldn't get to agree to pricing. And in the September, October time frame, we were able to.

您將在接下來的幾個月中看到的許多交易都是我們在今年早些時候開始處理的事情。我們只是無法就定價達成一致。在九月、十月的時間範圍內，我們做到了。

Thank you. Good quarter.

謝謝。好季度。

Great. Thanks, Mitch.

偉大的。謝謝，米奇。

(Operator Instructions)

（操作員說明）

Wes Golladay, Baird.

韋斯·戈拉戴，貝爾德。

Hey, good morning, everyone. Just looking at a potential debt raise with the long end running a bit, would you prefer a term loan at the moment over an unsecured note or a private placement?

嘿，大家早安。僅考慮長期運行的潛在債務增加，您目前是否更喜歡定期貸款而不是無擔保票據或私募？

Yes, I think we are assessing term loans, private notes, public bonds and overequitizing the balance sheet on a daily basis.

是的，我認為我們每天都在評估定期貸款、私人票據、公共債券和資產負債表的過度公平化。

And maybe a quick follow-up on that. The capital markets have been volatile, and you've got a good cost of equity now. And so I guess does the historical volatility, I guess, change your view on maybe just taking advantage of this window right now and just kind of building up for a little bit longer runway?

也許會對此進行快速跟進。資本市場一直不穩定，現在的股本成本很高。所以我想，我想，歷史波動是否會改變你對現在可能只是利用這個窗口並為更長一點的跑道做準備的看法？

I think you've seen us sort of what we've done as leverage has gone below 5, and we're really active in raising equity when our price of our stock was attractive to do so. So I think we've been definitive in how we've acted and market dependent.

我想你已經看到了我們在槓桿率低於 5 時所做的事情，而且當我們的股票價格具有吸引力時，我們非常積極地籌集股本。因此，我認為我們的行動方式和市場依賴程度都是明確的。

Okay. And then looking at that Bloomin' Brands acquisition, I know you said they had really strong coverage. How was the quality of the assets? Is it like they're upper quartile or just good performers?

好的。然後看看 Bloomin' Brands 的收購，我知道您說過他們的覆蓋範圍非常廣。資產品質如何？他們是上四分位數還是只是表現良好？

They would be in the very tippy top of scores of all the acquisitions we've done to date.

在我們迄今為止所做的所有收購中，它們將名列前茅。

Fantastic. One last one. Looking at your top 20 tenants, there was a little bit of a shuffling where WellNow is now going from 10 to 19. Did anything change there?

極好的。最後一張。看看前 20 位租戶，WellNow 現在從 10 位變為 19 位，發生了一些變化。那裡有什麼變化嗎？

No, the way we define tenant is sort of consumer facing and what would the consumer view as that tenant. And some of their -- I think, eight of their properties in Ohio and Indiana and one in Illinois were rebranded from WellNow to another medical retail tenant. We still have WellNow as the guarantor on those leases. So in many ways, that's almost how you define what a tenant is as anything else, but nothing's changed.

不，我們定義租戶的方式是面向消費者以及消費者如何看待該租戶。他們中的一些人——我想，他們在俄亥俄州和印第安納州的八處房產以及伊利諾伊州的一處房產已從 WellNow 更名為另一個醫療零售租戶。我們仍然有 WellNow 作為這些租賃的擔保人。因此，在很多方面，這幾乎就是您定義租戶和其他事物的方式，但沒有改變。

Fantastic. Thanks for the time.

極好的。謝謝你的時間。

Yeah, of course. Thank you.

是的，當然。謝謝。

(Operator Instructions)

（操作員說明）

James Kammert, Evercore.

詹姆斯·卡默特，Evercore。

Good morning. Thank you. Bill, you sound obviously more optimistic and -- about acquisitions, and you've got the cost of capital to do it. I'm just curious in your negotiations. Are you -- how much do sort of annual escalators come into the negotiation and your ambitions? You said, the cap rate's 15-basis-point improvement, just enough to get over the line, but curious how much you think about escalators and the overall kind of IRR when you're looking at the transactions. Thank you.

早安.謝謝。比爾，你聽起來顯然對收購更加樂觀，而且你有資本成本來做到這一點。我只是對你們的談判感到好奇。您在談判中投入了多少年度自動扶梯以及您的雄心壯志？您說過，資本化率提高了 15 個基點，足以跨越界限，但很好奇您在查看交易時對自動扶梯和整體內部收益率 (IRR) 的看法有多少。謝謝。

Jim, I'm an optimistic guy. So I would say that the escalators both the way it's structured, which is, as a reminder, almost always 1.5% per year, very occasionally 10% every five years. Very, very few examples other than those two. And also very often three to five, five-year extensions at the end of the lease. So those terms of net lease have remained very, very consistent.

吉姆，我是一個樂觀的人。所以我想說的是，手扶梯的結構方式都是如此，提醒一下，幾乎總是每年 1.5%，偶爾每五年 10%。除了這兩個之外，很少有例子。而且通常在租約結束時會延長三到五年，五年。因此，這些淨租賃條款仍然非常非常一致。

I would say the combination of those two terms exists in well more than 90% of what we look at, maybe 95%-plus of what we look at, with probably the only exception being Walgreens, which we don't buy, which had more tenant-favorable terms of flat rent and sometimes 50 one-year extensions, but we've avoided that in its entirety.

我想說，這兩個術語的組合存在於我們所看到的 90% 以上，甚至 95% 以上，唯一的例外可能是沃爾格林，我們不買它，它有對租戶更有利的平租條款，有時還有50 次一年期延期，但我們完全避免了這種情況。

So it's interesting. It's a great question. It's something that we were wondering whether would come into the negotiation, and it really hasn't, to be honest.

所以這很有趣。這是一個很好的問題。我們想知道是否會參與談判，但說實話，確實沒有。

Okay. That's very helpful. I just didn't know if, again, the incremental leverage, if there was any, to particularly with some of the privately sponsored or private tenants. But I understand.

好的。這非常有幫助。我只是不知道增量槓桿是否存在，特別是對於一些私人贊助或私人租戶。但我明白。

Yes. Just one final point. Where we see more landlord-favorable terms, very often, it's matched with credit that we don't want to touch.

是的。最後一點。當我們看到更多對房東有利的條款時，很多時候，它與我們不想觸及的信貸相符。

Sean Hostert, Net Lease Observer.

Sean Hostert，淨租賃觀察員。

Hey, thanks for taking my call. Bill, you guys have always been very long-term thinking when it comes to investing both on the capital side, raising money but also where you deploy it. Curious as you think about the Darden net lease, master leases over time and sort of the 2026, I think it is there or '27 as those start to roll. Are those all-or-nothing renewals? Is there anything you can talk about which relate to those leases and how you think about the performance? Obviously, the company is doing well, but just how that plays out over the next 5 to 10 years now that those leases are starting to enter potentially extension periods.

嘿，謝謝你接我的電話。比爾，在資本方面的投資、籌集資金以及如何部署資金方面，你們一直有著非常長遠的思考。當你對達頓淨租賃、隨時間推移的主租賃以及 2026 年的租賃感到好奇時，我認為它就在那裡或 27 年開始滾動。這些是全有或全無的續訂嗎？您有什麼可以談談與這些租賃相關的事情以及您對績效的看法嗎？顯然，該公司表現良好，但由於這些租約開始進入可能的延長期，因此未來 5 到 10 年的表現如何。

Those are individual leases. The lease form, you can find. It's public. It's in our original spin documents. But those are individual leases. They cover 6x at this point. Olive Gardens, LongHorns are almost all profitable, robust sales.

這些是個人租賃。租賃表格，你可以找到。這是公開的。它在我們原始的旋轉文檔中。但這些都是個人租賃。此時他們覆蓋了 6x。Olive Gardens、LongHorns 幾乎都獲利，銷售強勁。

They do 50% higher AUVs than the average casual dining restaurants. So individual leases, subject to multiple five-year extensions, I would anticipate a very, very high renewal rate. But it's not all or nothing, and they're not master leases. They're individual leases.

他們的 AUV 比一般休閒餐廳高 50%。因此，個人租約可以多次延期五年，我預計續約率會非常非常高。但這並不是全有或全無的情況，而且它們也不是主租約。它們是個人租賃。

Thank you very much. We currently have no further questions. So I'd like to hand back to Bill Lenehan for any closing remarks.

非常感謝。目前我們沒有進一步的問題。因此，我想請比爾·萊內漢 (Bill Lenehan) 發表結束語。

Great. Thank you, everybody, and we look forward to talking to investors over the next few weeks at Nareit. And we anticipate, again, a very, very busy end of this year. Thanks, everyone.

偉大的。謝謝大家，我們期待在接下來的幾週內在 Nareit 與投資者交談。我們再次預計今年底將會非常非常繁忙。謝謝大家。

As we conclude today's call, we'd like to thank everyone for joining us. You may not disconnect your lines.

在我們結束今天的電話會議時，我們要感謝大家加入我們。您不得斷開線路。