Modiv Industrial Inc (MDV) 2024 Q2 法說會逐字稿

Good day and welcome to Modiv Industrial Inc Q2 24 conference call.(Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to John Raney, Chief Operating Officer and General Counsel. Please go ahead.

美好的一天，歡迎來到 Modiv Industrial Inc 第 2 季 24 日電話會議。請注意此事件正在被記錄。我現在想將會議交給營運長兼總法律顧問約翰·雷尼 (John Raney)。請繼續。

Thank you, operator, and thank you, everyone, for joining us for Modiv Industrial's second quarter 2024 earnings call. We issued our earnings release before market opened this morning, and it's available on our website at modiv.com.

感謝業者和大家參加我們的 Modiv Industrial 2024 年第二季財報電話會議。我們在今天早上開盤前發布了收益報告，可在我們的網站 modiv.com 上取得。

I'm here today with Aaron Halfacre, Chief Executive Officer; and Ray Pacini, Chief Financial Officer. On today's call, management will provide prepared remarks, and then we'll open up the call for your questions.

今天我和執行長 Aaron Halfacre 一起來到這裡。和財務長雷·帕西尼。在今天的電話會議上，管理層將提供準備好的發言，然後我們將開始電話會議詢問您的問題。

Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts such as statements about our expected acquisitions or dispositions, joint ventures and strategic partner discussions are also forward-looking statements.

在開始之前，我想提醒您，今天的評論將包括聯邦證券法規定的前瞻性陳述。前瞻性陳述透過諸如將、是、打算、相信、期望、預期或其他類似的詞語和短語來識別。非歷史事實的陳述，例如有關我們預期收購或處置、合資企業和策略夥伴討論的陳述，也屬於前瞻性陳述。

Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from these forward-looking statements is contained in our SEC filings, including our reports on Form 10-K and 10-Q.

我們的實際財務狀況和經營業績可能與此類前瞻性聲明中預期的存在重大差異。我們向 SEC 提交的文件（包括我們的 10-K 和 10-Q 表格報告）中包含了對可能導致我們的結果與這些前瞻性陳述存在重大差異的因素的討論。

With that said, I would like to turn the call over to Aaron Halfacre. Aaron?

話雖如此，我想把電話轉給 Aaron Halfacre。亞倫？

Thanks, John. Hello, everybody. Thanks for joining our second quarter conference call. Most of you would rather be tracking the stocks on your watch list in this volatile market. So our goal is to try to make this a snappy one. I said all my prepared remarks and I normally do in our earnings release. So let's just jump straight to Ray, and then we'll go to Q&A. Ray?

謝謝，約翰。大家好。感謝您參加我們的第二季電話會議。你們中的大多數人寧願在這個動蕩的市場中追蹤觀察名單上的股票。所以我們的目標是努力讓它變得活潑。我說了我準備好的所有言論，而且我通常在財報發布中都會這樣做。因此，讓我們直接跳到雷，然後我們將進行問答。射線？

Thank you, Aaron. I'll begin with an overview of our second quarter operating results. Rental income for the second quarter was $11.3 million compared with $11.8 million in the prior year period. This 4% decrease primarily reflects a decrease in tenant reimbursements related to 13 properties sold to GIPR in August 2023, which included properties with modified gross leases and double net leases.

謝謝你，亞倫。我將首先概述我們第二季的營運表現。第二季的租金收入為 1,130 萬美元，而上年同期為 1,180 萬美元。這 4% 的下降主要反映了與 2023 年 8 月出售給 GIPR 的 13 處房產相關的租戶報銷減少，其中包括修改總租賃和雙淨租賃的房產。

Rental income for the quarter also reflects the impact of 12 industrial manufacturing property acquisitions during 2023, partially offset by 16 dispositions of non-core properties from August 1, 2023 to February 28, 2024.

該季度的租金收入也反映了2023年期間收購12項工業製造物業的影響，部分抵銷了2023年8月1日至2024年2月28日期間16項非核心物業處置的影響。

Second quarter adjusted funds from operations or AFFO was $3.9 million, up 17% when compared to the $3.3 million in the year ago quarter. The increase in AFFO primarily reflects an $834,000 decrease in property expenses with $179,000 decrease in G&A, which were partially offset by the $493,000 income. The increase in AFFO was impacted on a per share basis by $781,000 increase in diluted shares outstanding, resulting in AFFO per share of $0.34 compared with $0.31 in the prior year period.

第二季調整後的營運資金或 AFFO 為 390 萬美元，比去年同期的 330 萬美元成長 17%。AFFO 的增加主要反映了物業費用減少了 834,000 美元，一般管理費用減少了 179,000 美元，部分被 493,000 美元的收入所抵消。每股 AFFO 的成長受到稀釋後流通股增加 781,000 美元的影響，導致每股 AFFO 為 0.34 美元，而去年同期為 0.31 美元。

The current period AFFO includes non-recurring state and property tax refunds of $138,000 or $0.01 per share and a decrease in G&A expenses of approximately $179,000 or $0.02 per share due to timing of expenses that will be reflected in the third quarter.

本期 AFFO 包括 138,000 美元或每股 0.01 美元的非經常性州稅和財產稅退稅，以及由於第三季度反映的費用時間安排而導致的 G&A 費用減少約 179,000 美元或每股 0.02 美元。

If our repurchase of 780,000 shares from First City Investment Group, on August 1, that occurred at the beginning of the quarter, pro forma AFFO would have been $0.37 per fully diluted share.

如果我們在 8 月 1 日（即本季初）從 First City Investment Group 回購 780,000 股股票，預計 AFFO 將為每股完全稀釋股票 0.37 美元。

Cash interest expense for the quarter was approximately $25,000 greater than the comparable period of 2023 when we drew the final $80 million of our term loan in mid-April 2023. The current period expense included $550,000 of unrealized non-cash net losses on swap valuations, which increased interest expense, while the prior year period included $3.7 million of unrealized gains on swap valuations, which decreased interest expense.

本季的現金利息支出比 2023 年同期高出約 25,000 美元，當時我們於 2023 年 4 月中旬提取了最後 8,000 萬美元的定期貸款。本期費用包括 55 萬美元的掉期估值未實現非現金淨損失，這增加了利息支出，而去年同期包括 370 萬美元的掉期估值未實現收益，這減少了利息支出。

Now turning to our portfolio. Following the July 2024 acquisition, of photonics [reinvestment] property located in the Tampa-MSA, our 43 property portfolio has an attractive weighted average lease term of 13.6 years. Though the majority of our tenant credits are private, approximately 34% of our tenants or their parent companies have an investment-grade rating from a formally recognized credit agency of BBB- or better.

現在轉向我們的投資組合。繼 2024 年 7 月收購位於 Tampa-MSA 的光子學 [再投資] 地產後，我們的 43 個房地產投資組合的加權平均租賃期為 13.6 年，極具吸引力。儘管我們的租戶信貸大多是私人的，但我們約 34% 的租戶或其母公司擁有正式認可的信貸機構頒發的 BBB- 或更高的投資等級。

Annualized base rent for our 43 properties totaled $40.5 million on a pro forma basis as of June 30, 2024, with 39 industrial properties representing 76% of ABR and 4 non-core properties representing 24% of ABR. With respect to our balance sheet and liquidity, as of June 30, 2024, total cash and cash equivalents were $18.9 million, and we had $280 million of debt outstanding. Our Tampa property acquisition and a repurchase of 780,000 shares from First City, reduced our cash position of $3.2 million following quarter end. Our debt consists of $31 million of mortgages on 2 consolidated properties and $250 million of outstanding borrowings on our $400 million credit facility, and we do not have any debt maturities until January 2027.

截至 2024 年 6 月 30 日，我們 43 個物業的年化基本租金總計 4,050 萬美元，其中 39 個工業物業佔 ABR 的 76%，4 個非核心物業佔 ABR 的 24%。就我們的資產負債表和流動性而言，截至 2024 年 6 月 30 日，現金和現金等價物總額為 1,890 萬美元，未償債務為 2.8 億美元。我們收購坦帕房產並從 First City 回購 78 萬股股票，使我們在季度末的現金部位減少了 320 萬美元。我們的債務包括 2 處合併房產的 3,100 萬美元抵押貸款和 4 億美元信貸額度中的 2.5 億美元未償還借款，且我們在 2027 年 1 月之前沒有任何債務到期。

Based on interest rate swap agreements we entered into during 2022, 100% of our indebtedness as of June 30, 2024, held a fixed interest rate, with a weighted average interest rate of 4.52% based on our leverage ratio of 47% at quarter end. We are actively evaluating the changing interest rate environment and presently intend to enter into new swap agreements on or before December 31, 2024 to continue our full cash hedge position.

根據我們在2022年簽訂的利率掉期協議，截至2024年6月30日，我們的債務100%持有固定利率，基於季末47%的槓桿率，加權平均利率為4.52% 。我們正在積極評估不斷變化的利率環境，目前打算在 2024 年 12 月 31 日或之前簽訂新的掉期協議，以繼續我們的全面現金對沖頭寸。

As previously announced, our board of directors declared a cash dividend per common share of approximately $0.095 for the month of July, August, and September 2024, representing an annualized dividend rate of $1.15 per share of common stock. This represents a yield of [7.79%] and based on the [1476] closing price of our common stock as of yesterday.

如同先前所宣布的，我們的董事會宣布 2024 年 7 月、8 月和 9 月每股普通股現金股利約為 0.095 美元，相當於每股普通股的年化股息率為 1.15 美元。這表示收益率為 [7.79%]，基於我們普通股截至昨天的收盤價 [1476]。

I'll now turn the call back over to Aaron.

我現在將把電話轉回亞倫。

Thanks, Ray. Okay. And the fun part begins here where you guys get to ask your questions and I tend to talk too much. But before we do, jump to Q&A, I want to address two things. Mr. Maher, I know my missives tend to be dramatic, but they're not meant to be. They're meant to be cryptic though. And the reason is, is that there are a lot of constituents out there. And so there may be some messaging in those.

謝謝，雷。好的。有趣的部分從這裡開始，你們可以提出問題，而我往往會說太多。但在我們開始之前，先進行問答，我想先解決兩件事。馬赫先生，我知道我的信件往往很戲劇化，但事實並非如此。但它們本來就是神秘的。原因是，有很多選民。所以其中可能有一些資訊。

They're so cryptic though that sometimes they can be confusing. So to that end, Mr. Stevenson, I want to point out that the portfolio in the JV is not focused on the city of Miami. Just to be clear, it is diversified in its geography. So with that, operator, let's go to Q&A.

它們是如此神秘，但有時可能會令人困惑。為此，史蒂文森先生，我想指出，合資企業的投資組合並不集中在邁阿密市。需要明確的是，它的地理位置是多樣化的。那麼，操作員，讓我們進入問答環節。

Thank you. [Operator Instructions] Gaurav Mehta with Alliance Global Partners.

謝謝。[操作員說明] Gaurav Mehta 與 Alliance Global Partners。

Yeah. Thank you and good morning. I wanted to ask you on the JV. Wondering if you are willing to disclose any more details on what's the size of the JV? And do you expect to derive any management fee, property management fees once you get into the JV?

是的。謝謝你，早安。我想問你關於合資企業的問題。想知道您是否願意透露更多有關合資企業規模的細節？進入合資公司後，您是否希望獲得任何管理費、物業管理費？

So appreciate the question, figure you get it. You should generally assume that I will try to tell you everything I can. So I will not tell you statistics on that portfolio at this stage. And I have my reasons, so you trust me on that. As it relates to the JV fee though, we're not doing this as sort of a fee generation thing. So this is a participation. So we will ratably be participating in the income and expenses, and we are not looking to make any fees on it at all.

所以感謝這個問題，我相信你明白了。你通常應該假設我會盡力告訴你我能告訴你的一切。所以現階段我不會告訴你該投資組合的統計。我有我的理由，所以你相信我。不過，由於它與合資企業費用有關，因此我們這樣做並不是為了產生費用。所以這是一種參與。因此，我們將按比例參與收入和支出，並且我們根本不打算從中收取任何費用。

Okay. Second question, maybe big picture. Any color on what you guys have seen in the transaction market for industrial manufacturing?

好的。第二個問題，也許是大局。大家在工業製造交易市場看到了什麼顏色嗎？

Yeah. I mean you're seeing one-off continue this whole year, it's been one-offs, you'll get something comes up. And sometimes the cap rates look attractive, but there's a reason they look attractive, but they're not really attractive. If the credit is pretty thin or they're desperate for cash or something like that.

是的。我的意思是，你會看到一次性的事情持續了一整年，這是一次性的，你會得到一些東西。有時資本化率看起來很有吸引力，但它們看起來有吸引力是有原因的，但它們並不是真正有吸引力。如果信用非常薄弱或他們急需現金或類似的東西。

Other times, on the more solid ones, and they're not in a rush to sell and the cap rates are too tight. So it hasn't been -- not unlike our stock. It's been a really choppy market for industrial manufacturing. Remember, we're pretty picky. I don't look and team sort of light assembly is manufacturing. I don't look at flex spaces as manufacturing. We're looking for things that are really durable in terms of their products in terms of where they are in their market segment.

其他時候，對於更穩健的股票，他們並不急於出售，而且上限利率太緊。所以它與我們的股票沒有什麼不同。對於工業製造來說，這是一個非常動盪的市場。請記住，我們非常挑剔。我不看團隊的燈光組裝正在製造。我不將彈性空間視為製造業。我們正在尋找在其產品和細分市場中真正耐用的產品。

So that narrows the universe. But it's been pretty choppy, as you can expect. I mean, it's just -- I mean, if you -- like, for instance, on the Tampa-based deal we did, the reason why we are comfortable doing that one, and obviously, it had a good client list that we're buying their products. They're making something that was sort of very durable and in needed for infrastructure-based needs.

這樣宇宙就縮減了。但正如你所預料的那樣，它非常不穩定。我的意思是，這只是 - 我的意思是，如果你 - 就像我們在坦帕所做的交易一樣，我們之所以願意這樣做，顯然，它有一個很好的客戶名單，我們'重新購買他們的產品。他們正在製造非常耐用且滿足基礎設施需求的東西。

But more importantly, the money from the sale leaseback went and we tied it to this to make an acquisition overseas that did the same thing. So by doing this acquisition, they were more than doubling their top line and really getting synergies. So to us, that was a smart use of capital versus if it had been a PE shop who was just stripping out cash. And so there's so many different motivations into why we chose or why we think is -- there's a good market or a bad market for assets.

但更重要的是，售後回租的資金流向了我們，我們將其與此掛鉤，在海外進行了同樣的收購。因此，透過這項收購，他們的收入增加了一倍以上，並真正獲得了協同效應。因此，對我們來說，這是對資本的明智利用，而不是一家私募股權公司只是在剝奪現金。因此，我們選擇或認為的原因有很多不同的動機——資產市場有好有壞。

And right now, it's just been -- it's been hit or miss. So we look, but there's not a lot of volume. It's not like you're buying Walgreens.

現在，它只是——要么碰運氣，要么錯過。所以我們看了一下，但數量不多。這不像你買沃爾格林。

Okay. Thank you. That's all I had.

好的。謝謝。這就是我所擁有的一切。

Thanks.

謝謝。

Rob Stephenson with Janney Montgomery Scott.

羅布·史蒂芬森和珍妮·蒙哥馬利·斯科特。

Good morning. Aaron, can you talk about the expected timing on the non-Miami-centric Battleship deal? Is this likely a third quarter event, if it happens?

早安.亞倫，您能談談非邁阿密中心戰艦交易的預計時間嗎？如果發生的話，這可能是第三季的事件嗎？

Yes. I think if it pulls together on the pace we're working on, it will happen before the Q3.

是的。我認為，如果它能跟上我們正在努力的步伐，這將在第三季之前發生。

Okay. Perfect. And then can you talk about what is your role? Are you going to be in charge of managing these assets? Is it essentially a passive sort of ownership interest like how should we be thinking about these in your involvement?

好的。完美的。然後你能談談你的角色是什麼嗎？您將負責管理這些資產嗎？它本質上是一種被動的所有權權益，就像我們在您的參與中應該如何考慮這些？

Yeah, we'll plug them into our ecosystem. We'll manage them the PE sponsor, will actually be stepping into the position of a prior joint venture partner that had or has a much smaller percentage than right now than what we are anticipating acquiring. So it will be a more equitable partner relationship, but we will do the management on a day-to-day basis, including property management, accounting, all those aspects and the private equity sponsor will continue in what I would characterize as more of the passive role.

是的，我們會將它們插入我們的生態系統。我們將管理他們作為私募股權贊助商，實際上將取代先前的合資夥伴的位置，該合作夥伴的比例比現在要小得多，比我們預期收購的比例要小得多。因此，這將是一種更公平的合作夥伴關係，但我們將進行日常管理，包括財產管理、會計等所有這些方面，而私募股權發起人將繼續以我所描述的更多方式進行管理。角色。

Okay. And the materiality of the deal isn't such that given your current size that you'd need to get any type of approvals other than from the board for the share issuance?

好的。鑑於您目前的規模，這筆交易的重要性並不意味著您需要獲得董事會以外的任何類型的批准才能發行股票？

That is correct.

這是正確的。

Okay. And then sort of switching gears here a bit. How should we be thinking about First City going forward? Is this just a staggered sort of deal or they want to sell out of their remaining shares and units? And going forward now, do they own primarily shares or units at this point?

好的。然後在這裡稍微切換一下。我們該如何思考 First City 的未來？這只是一種交錯交易還是他們想出售剩餘的股份和單位？展望未來，他們目前主要擁有股票還是單位？

Great questions. First City is a wonderful investor, we think highly of them. And have had a dialogue with them for the last two years or two-plus years. They're very smart investors. So even though on the surface, this was smart for motive. They have a history of making money in the space that they deal with, which tends to be in the automotive dealership space.

很好的問題。First City 是一位出色的投資者，我們對他們評價很高。並在過去兩年或兩年多的時間裡與他們進行了對話。他們是非常聰明的投資者。因此，儘管從表面上看，此舉的動機很聰明。他們有著在自己經營的領域賺錢的歷史，通常是在汽車經銷領域。

So they now have only common shares. They are still a significant shareholder. So they have a meaningful size. They have had those shares that were not -- they were converted from OP units to shares back, I want to say, in January. So they've had those at the possession. So those are freely tradable. They're allowed to do what they want. Obviously, I don't ask them about their business. But they -- if they are going to stay longer term, I don't know. We hope they do. We think the world of them. And this was just a transaction that met the needs of both parties.

所以他們現在只有普通股。他們仍然是重要股東。所以它們有一個有意義的大小。他們擁有那些原本沒有的股票——我想說，在一月份，它們從 OP 單位轉換回了股票。所以他們已經擁有這些了。所以這些都是可以自由交易的。他們被允許做他們想做的事。顯然，我不會問他們的事。但他們——我不知道他們是否會長期停留。我們希望他們這樣做。我們認為他們的世界。而這只是一場滿足雙方需求的交易。

So they have no more OP units, though, and this ended the OP units, which was the original cycle of the 721 transaction.

所以他們沒有更多的 OP 單位了，這結束了 OP 單位，這是 721 交易的原始週期。

Okay. That's helpful. And then how are you thinking about the most appropriate time to monetize the KIA asset. Is that a '24 event at some point in time? Is that a wait for rates to come down and probably more likely a '25 event? How should we be thinking about that in the current market environment?

好的。這很有幫助。然後您如何考慮將起亞資產貨幣化的最合適時機。這是 24 年某個時間點發生的事件嗎？這是等待利率下降並且更有可能發生在 25 年的事件嗎？在當前的市場環境下我們該如何思考？

Yeah. I think that is a great property with a great lease with a great tenant. And in my view, in this rate environment, you would only get punished. You wouldn't get the credit that you do. I think it's a natural candidate along with our Costco and OES as recycling because they are non-core. Costco, as we know, just previously disclosed is underway. The other tenant OES has indicated that they are, as I mentioned before, interested in exercising their option purchase option. It's an arduous process for them as a government entity. So we don't know until we know. But those are probably the natural first candidates.

是的。我認為這是一處很棒的房產，擁有很棒的租約和很棒的租戶。在我看來，在這種利率環境下，你只會受到懲罰。你不會得到你所做的功勞。我認為它與我們的 Costco 和 OES 一起作為回收的自然候選者，因為它們不是核心。據我們所知，Costco 先前剛剛披露的消息正在進行中。另一個租戶 OES 已表示，正如我之前提到的，他們有興趣行使他們的選擇權購買選擇權。對他們作為政府實體來說，這是一個艱難的過程。所以我們不知道，直到我們知道為止。但這些可能是自然的第一候選人。

And then at the right time, we would execute on KIA. And I think because there's a substantial embedded gain in that, we'd have to be tied very much to a 1031 exchange. And so that could be new assets out there, another portfolio, it could be the second half of this aforementioned JV. I think there's a lot of opportunities to naturally sequence that but I don't -- I have zero expectations that it's in the near term.

然後在正確的時間，我們將執行起亞。我認為，因為其中存在巨大的內在利益，所以我們必須與 1031 交換密切相關。因此，這可能是新資產，另一個投資組合，它可能是上述合資企業的下半年。我認為有很多機會可以自然地對其進行排序，但我沒有——我對它在短期內的期望為零。

Okay. And then speaking of Costco, at this point, given the way that KB is moving, what's the sense is the earliest that, that deal closes for you guys?

好的。然後說到 Costco，在這一點上，考慮到 KB 的發展方式，這筆交易最早結束對你們來說有什麼意義？

It's really up to the zoning and the final permits. But like we're earmarking sort of mid next year? And right now, we don't see any reason why that would be earlier, there is provisions for it to be earlier. I don't think it will be earlier in February of next year, so it's definitely a '25 event.

這實際上取決於分區和最終許可。但就像我們指定明年中期？現在，我們看不出有任何理由可以提前，但有規定可以提前。我認為不會是在明年二月早些時候，所以這絕對是 25 年的活動。

All right. And then the last one for me. You mentioned in your comments that Adam and Curtis are leaving the board. So you're losing your Chairman and your Lead Director, how are you thinking and the Board thinking about that going forward? Will the board shrink? Is there anyone on the board currently going to step up and take on those roles and how committed are you in the company, keeping the CEO and Chairman roles separate at this point?

好的。然後是我的最後一個。您在評論中提到亞當和柯蒂斯將離開董事會。因此，您將失去董事長和首席董事，您和董事會對此有何看法？板子會縮水嗎？目前董事會中是否有人願意挺身而出並承擔這些角色？

CEO and Chairman role will be separate. That's best practice. There's nothing there. We will -- by the time we file a proxy, have all those items addressed in a thorough manner. And so we have put thought towards it. And I'd say we're not ready to get our proxy out yet. That will be soon. We wanted to get this JV due diligence underway.

執行長和董事長的角色將分開。這是最佳實踐。那裡什麼也沒有。當我們提交委託書時，我們將徹底解決所有這些問題。所以我們已經對此進行了思考。我想說我們還沒準備好讓我們的代理商出去。那很快就會了。我們希望對該合資企業進行盡職調查。

And so by the time we do that, it will be fully vetted and out with it. But we'll maintain the same sort of professional integrity that we've always done with our board. And it's disappointing to have rotation, but it's been five years. It's been a long time, and they've got other things to do. So I'm very grateful for their service. And when whoever comes on next, they will have a high bar to measure to.

因此，當我們這樣做時，它將經過全面審查並淘汰。但我們將保持我們一直對董事會所做的同樣的職業誠信。而且輪換很令人失望，但已經五年了。已經過去很久了，他們還有其他事情要做。所以我非常感謝他們的服務。無論接下來誰上場，他們都會有一個很高的衡量標準。

Thanks. Thank you for the time this time.

謝謝。這次謝謝你的時間。

Bryan Maher with B. Riley Securities.

B. Riley 證券公司的 Bryan Maher。

Hi. This is Brandon on for Brian, but I will certainly pass along the message. Most of our questions have been answered, but two quick ones from us. So first one was just the probability on kind of the current strategic partnership going forward versus kind of the probability of the other strategic partnership option if you can delve into that.

你好。這是布蘭登為布萊恩代言的，但我一定會傳達這個訊息。我們的大部分問題都已得到解答，但我們很快就提出了兩個問題。因此，第一個問題只是當前策略夥伴關係向前發展的機率與其他策略夥伴關係選項的機率（如果你可以深入研究的話）。

Yeah. So I think there's some logic to sequencing them. And this one is one that we could fast track a little bit better. Look, during the course of the summer, I mean, our share price was at $15.75. It was at $13.95. We had so much market and rate volatility that it makes it hard to negotiate if you're trying to engineer a certain outcome. And so patience is key, and that's kind of what I talked about.

是的。所以我認為對它們進行排序是有一定邏輯的。這是我們可以更好地快速跟踪的一個。我的意思是，整個夏天我們的股價為 15.75 美元。售價為 13.95 美元。我們的市場和利率波動如此之大，如果你試圖設計某個結果，那麼談判就變得困難。所以耐心是關鍵，這就是我所說的。

This one though is of the two and they're both great opportunities and they're both very strategic, but they're different in terms of the composition. And so this one is one that we can execute faster. And I think it also only dovetails. And so I think if anything, doing this one first helps strengthen the opportunity for the second one. And so that's how I would describe it. It wasn't an either/or decision. In my ideal world, it will be the combination of three battleships.

這雖然是兩者中的一個，它們都是很好的機會，而且都非常具有戰略意義，但它們的組成不同。因此，這是我們可以更快執行的一項。我認為這也只是吻合。所以我認為，如果有的話，先做這件事有助於增加第二件事的機會。這就是我的描述方式。這不是一個非此即彼的決定。在我的理想世界中，這將是三艘戰艦的組合。

Got it. And you talked about your kind of acquisitions, but I was just curious on the disposition pipeline, whether you're receiving offers on existing properties or underperforming properties? Any color there? And that's all for me.

知道了。您談到了您的收購類型，但我只是對處置管道感到好奇，您是否收到了現有房產或表現不佳房產的報價？那裡有什麼顏色嗎？這就是我的全部。

Thanks, Brandon. There are no properties held for sale right now. Look, we've clearly signaled that non-core assets, particularly the office assets are natural recycling candidate. We have some industrial assets that are less manufacturing and more distribution that could be candidates down the road. But right now, nothing is for sale. We did a big transaction last year with the 13 property portfolio, we obviously sold two earlier this year.

謝謝，布蘭登。目前沒有待售房產。看，我們已經明確表示，非核心資產，特別是辦公資產是自然回收的候選者。我們擁有一些製造業較少、分銷較多的工業資產，這些資產可能是未來的候選資產。但現在，沒有任何東西可以出售。去年我們對 13 個房產組合進行了一筆大交易，今年早些時候我們顯然賣掉了兩個。

So I think we're always able to sell. And if we can find the right opportunity, we will execute. That said, if you've got a good property with good operations and you don't want to necessarily sell into this market because you're just going to get cut off at the knees unless you have to. And so we don't feel any urgency to have to do anything, and so we'll continue to be smart. Thanks.

所以我認為我們總是能夠銷售。如果我們能找到合適的機會，我們就會執行。也就是說，如果您擁有一處運作良好的優質房產，並且您不一定想在這個市場上出售，因為除非迫不得已，否則您只會被砍掉膝蓋。因此，我們並不覺得有必要採取任何行動，因此我們將繼續保持明智。謝謝。

Sean Hostert with Net Lease Observer.

肖恩·霍斯特 (Sean Hostert) 與 Net Lease 觀察員。

Hey, Aaron. Good morning. Curious if there's any specific watch list changes for you guys from a tenant credit exposure perspective? And then secondarily, I'm hearing a lot of talk in the market about pricing between investment grade and non-investment grade assets. Just would love to hear how you and your team think about pricing assets depending on credit profile.

嘿，亞倫。早安.好奇從租戶信用風險的角度來看，你們的觀察名單是否有任何具體的變化？其次，我在市場上聽到很多關於投資等級和非投資等級資產之間定價的討論。只是很想聽聽您和您的團隊如何考慮根據信用狀況對資產進行定價。

Sure. I think the credit profile, IG, non-IG frame of mind is highly conducive to sort of traditional net lease? And what I think by traditional net lease. And what I think by traditional net lease is I think of NNN or O or agri or they're buying a lot of retail and there's a wide spectrum of credit quality. And that way of thinking about it is built into a lot of other net lease product types, and I think for good reason, right? Because these are not unlike bonds and so the credit matters.

當然。我認為信用狀況、IG、非IG心態非常有利於傳統網租的排序？以及我對傳統網租的看法。我對傳統淨租賃的看法是 NNN、O 或 agri，或者他們購買了大量零售業，而且信用品質多種多樣。這種思考方式已融入許多其他淨租賃產品類型中，我認為有充分的理由，對嗎？因為這些與債券沒有什麼不同，所以信用很重要。

I think when it pertains to industrial manufacturing, it's hard to fit that square peg into a round hole. And what I mean by that is you have a lot of private middle-market credits typically. We're not buying Intel manufacturing fabs that would be like 4 times our market cap just to buy one of those. And so we're buying really durable infrastructure-based manufacturers that have typically been around for a long time.

我認為當涉及到工業製造時，很難將方釘裝入圓孔中。我的意思是，你通常擁有很多私人中間市場信用。我們不會僅僅為了購買其中之一而購買市值是我們四倍的英特爾製造工廠。因此，我們正在購買真正耐用的基於基礎設施的製造商，這些製造商通常已經存在很長時間了。

They could either be individually owned. Some of them are public, I think our look-through basis on rated credits that are investment grade is 34% of the portfolio. I think [O's] is like 37%. But it's completely apples and oranges, right? There's no real comparison. So for us, if we can find someone that's investment grade and it makes sense, and that's the actual guarantor of the lease, that's fantastic.

它們可以是個人所有。其中一些是公開的，我認為我們對投資等級信用評級的審查基礎是投資組合的 34%。我認為 [O's] 大約是 37%。但這完全是蘋果和橙子，對吧？沒有真正的比較。因此，對我們來說，如果我們能找到一個具有投資等級且有意義的人，並且他是租賃的實際擔保人，那就太棒了。

Will we buy a crappy manufacturing location just because it's investment grade? No. We have to make sure that it's a durable tenant in terms of it's been around for a long time, what they're making is essential that they have a good market share of what they do make hopefully, all or at least the majority of their manufacturing is in our facility.

我們會僅僅因為它是投資等級的而購買一個蹩腳的生產基地嗎？不。我們必須確保它是一個持久的租戶，因為它已經存在了很長一段時間，他們所做的事情至關重要，他們希望他們的產品擁有良好的市場份額，全部或至少大部分製造是在我們的工廠進行的。

So it breaks it very, very low likelihood of rejection, right? Because rejection in our case is a real dire outcome. It's not like a lenient thing where I can just go rebox it. And so we think about it differently. It's certainly important. We run internal and external credit every time we do a deal. But the IG thing doesn't always necessarily fit.

所以它打破了拒絕的可能性非常非常低，對嗎？因為在我們的案例中，拒絕是一個真正可怕的結果。這不像是一件寬大的事情，我可以把它重新裝箱。所以我們對此有不同的看法。這當然很重要。每次達成交易時，我們都會運行內部和外部信貸。但IG的東西並不總是合適。

In terms of pricing, kind of what I alluded to go off, we're not seeing a ton out there. The pricing is either wide and because they're desperate and they're trying to debate someone in the taking it. So they'll say, hey, it's an 8 gap or 8.5 gap but it's really probably a 10 gap. If you looked at the true risk or it's a really good portfolio and they know it and say market is prevailing market, it might be 7.5 and they want 6.5.

在定價方面，就像我提到的那樣，我們沒有看到太多。定價要么很寬，要么是因為他們絕望了，他們試圖與某人爭論接受它。所以他們會說，嘿，這是一個 8 差距或 8.5 差距，但實際上可能是 10 差距。如果您查看了真正的風險，或者這是一個非常好的投資組合，並且他們知道這一點並說市場是主導市場，那麼它可能是 7.5，而他們想要 6.5。

And you're like, well, that was two years ago. And so it's kind of choppy. There's not a whole lot. Ours is really a case-by-case thing. There's not a lot of observations to draw a trend line from. So I can't answer that better.

你會想，好吧，那是兩年前的事了。所以這有點不穩定。沒有很多。我們的事情確實是具體情況具體分析。沒有太多的觀察可以用來繪製趨勢線。所以我無法更好地回答這個問題。

Great. Helpful color. Appreciate it.

偉大的。有用的顏色。欣賞它。

Thanks everyone for call. We appreciate the time, and, until we speak again.

謝謝大家的來電。我們感謝您的寶貴時間，直到我們再次發言。

Ladies and gentlemen, this concludes today's conference. You may now disconnect your lines at this time. Enjoy the rest of your day.

女士們、先生們，今天的會議到此結束。此時您可以斷開線路。享受你一天剩下的時間。