Netstreit Corp (NTST) 2023 Q3 法說會逐字稿

Greetings and welcome to the NETSTREIT third quarter 2023 earnings call. (Operator Instructions)

您好，歡迎參加 NETSTREIT 2023 年第三季財報電話會議。 （操作員說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Amy An, Director of Investor Relations. Thank you. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係總監 Amy An。謝謝。你可以開始了。

We thank you for joining us for NETSTREIT's third quarter 2023 earnings conference call. In addition to the press release distributed yesterday after market close, we posted a supplemental package and an updated investor presentation. Both can be found in the investor relations section of the company's website at www.netstreit.com.

我們感謝您參加 NETSTREIT 2023 年第三季財報電話會議。除了昨天收盤後發布的新聞稿外，我們還發布了補充資料和更新的投資者介紹。兩者均可在公司網站 www.netstreit.com 的投資者關係部分找到。

On today's call, management's remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today.

在今天的電話會議上，管理階層的言論和對您問題的回答可能包含1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。前瞻性陳述涉及受風險和不確定性影響的事項，這些風險和不確定性可能導致實際結果與實際結果有所不同。今天討論的那些。

For more information about these risk factors, we encourage you to review our Form 10-K for the year ended December 31, 2022, and our other SEC filings. All forward-looking statements are made as of the date hereof, and NETSTREIT assumes no obligation to update any forward looking statements in the future.

有關這些風險因素的更多信息，我們鼓勵您查看我們截至 2022 年 12 月 31 日的年度 10-K 表格以及我們向 SEC 提交的其他文件。所有前瞻性陳述均截至本協議發布之日作出，NETSTREIT 不承擔將來更新任何前瞻性陳述的義務。

In addition, certain financial information presented on this call includes non-GAAP financial measures. Please refer to our earnings release and supplemental package for definitions of our non-GAAP measures, reconciliations to the most comparable GAAP measure, and an explanation of why we believe such non-GAAP financial measures are useful to investors.

此外，本次電話會議中提供的某些財務資訊包括非公認會計準則財務指標。請參閱我們的收益發布和補充資料，以了解我們的非公認會計準則衡量標準的定義、與最具可比性的公認會計準則衡量標準的調節，以及為什麼我們認為此類非公認會計準則財務衡量標準對投資者有用的解釋。

Today's conference call is hosted by NETSTREIT's Chief Executive Officer, Mark Manheimer, and Chief Financial Officer, Dan Donlan. They will make some prepared remarks, and then we will open the call for your questions. Now I'll turn the call over to Mark. Mark?

今天的電話會議由 NETSTREIT 執行長 Mark Manheimer 和財務長 Dan Donlan 主持。他們將發表一些準備好的言論，然後我們將開始電話詢問您的問題。現在我將把電話轉給馬克。標記？

Morning, everyone, and thank you for joining us today for our third quarter conference call. With the recent changes in the capital markets and subsequently the property markets, I want to begin with how NETSTREIT is positioned for what we foresee as an increasingly challenging landscape for the consumer, and by extension, certain retailers.

大家早安，感謝您今天參加我們的第三季電話會議。隨著資本市場以及隨後的房地產市場最近的變化，我想先談談 NETSTREIT 如何定位，以應對我們預計消費者以及某些零售商面臨的日益嚴峻的挑戰。

We will also discuss where we see opportunities and how we plan to operate in this environment. The challenges we expect to occur for many retailers center around a consumer that is unlikely to spend at the same level that they have in years past, especially when it comes to purchases by lower income consumers on more discretionary type items. While a small handful of our tenants have a diversified product mix that includes some exposure to discretionary items that may come under some pressure, the portfolio is built around necessity retailers, off-price value merchants, and resilient service providers.

我們還將討論我們在哪裡看到機會以及我們計劃如何在這種環境下運作。我們預計許多零售商將面臨的挑戰集中在消費者不太可能以過去幾年的水平消費時，特別是當低收入消費者購買更多可自由支配的商品時。雖然我們的一小部分租戶擁有多元化的產品組合，其中包括一些可能面臨一定壓力的非必需品，但我們的產品組合是圍繞必需品零售商、超值商家和彈性服務提供者所建構的。

We believe this defensive industry focus, coupled with our tenant's strong balance sheets, and ready access to capital, position our portfolio to deliver predictable cash flow generation over the long term. While there may be some headline risk associated with top line performance and gross margin pressures for some of our investment grade tenants, we do not see these pressures threatening their ability to meet their financial obligations, including paying rent.

我們相信，這種防禦性產業的重點，加上我們租戶強大的資產負債表和隨時獲得資本的能力，使我們的投資組合能夠長期產生可預測的現金流。雖然我們的一些投資等級租戶可能會面臨一些與頂線業績和毛利率壓力相關的整體風險，但我們認為這些壓力不會威脅到他們履行財務義務（包括支付租金）的能力。

We continue to be vigilant in monitoring our portfolio and where we have seen risk, we have actively recycled and redeployed capital into less-challenged assets at generally higher going-in cash yields.

我們繼續保持警惕，監控我們的投資組合，在發現風險的地方，我們積極地將資本回收並重新部署到挑戰較小的資產中，現金收益率普遍較高。

Turning to credit, our watchlist consists of just one tenant, Big Lots, which now represents 1.9% of ABR versus 2.4% last quarter. While we may look to further decrease this exposure over the coming quarters, we do want to highlight the that the nine infill assets that we now own have solid demographics below market rents and excellent foot traffic.

談到信貸，我們的觀察名單中只有一個租戶 Big Lot，目前佔 ABR 的 1.9%，而上季為 2.4%。雖然我們可能希望在未來幾季進一步減少這種風險，但我們確實想強調，我們現在擁有的九項填充資產擁有低於市場租金的可靠人口統計和出色的人流。

More specifically, our remaining locations have an average five-mile population density of over 100,000 people and an average household income of approximately $80,000, which is attractive for most retailers when looking for expansion markets. Additionally, we believe our average rent per square foot of $6.90 is well below market.

更具體地說，我們其餘地點的平均五英里人口密度超過 100,000 人，平均家庭收入約為 80,000 美元，這對大多數尋求擴張市場的零售商來說很有吸引力。此外，我們認為每平方英尺的平均租金為 6.90 美元，遠低於市場水平。

Lastly, when using Placer.ai to track store-level foot traffic, our Big Lots rank in the top 75 percentile of the entire chain on average. Again, while we may continue decreasing our exposure to Big Lots, we do not believe that there is long-term economic risk to these assets, given the positive underlying fundamentals of the real estate, which is a testament to how we have underwritten our portfolio since inception.

最後，當使用 Placer.ai 追蹤商店級客流量時，我們的 Big Lot 平均排名在整個連鎖店的前 75%。同樣，雖然我們可能會繼續減少對 Big Lot 的投資，但考慮到房地產的積極基本面，我們認為這些資產不存在長期經濟風險，這證明了我們如何承保我們的投資組合自成立以來。

The other area of risk that we see developing across the retail space resides in tenants that have a high exposure to floating rate debt, and our low cost debt that is maturing soon. Given the financial transparency we receive from our tenants each quarter, we are able to quantify our tenant exposure to the aforementioned.

我們看到整個零售領域發展的另一個風險領域在於浮動利率債務風險較高的租戶，以及即將到期的低成本債務。鑑於我們每季從租戶收到的財務透明度，我們能夠量化租戶對上述因素的曝險。

Specifically, less than 9% of our tenancy, as measured by ABR, has debt coming due between now and year end 2025. And the majority of this concentration -- or 7.5% -- is with Walgreens who has exceptional access to capital.

具體來說，根據ABR 的衡量，我們的租賃中只有不到9% 的債務從現在到2025 年底到期。其中大部分（即7.5%）集中在沃爾格林(Walgreens) 手中，他們擁有特殊的融資管道。

With that in mind, based on our limited exposure to retailers that are reliant on discretionary spend from low income consumers, our tenant base, having little to no refinance risk over the next few years, and only 2.3% of our ABR expiring expiring through 2025 year end, we continue to expect our portfolio to generate consistent cash flow as we navigate a potentially choppy macro environment.

考慮到這一點，基於我們對依賴低收入消費者可自由支配支出的零售商的有限敞口，我們的租戶群在未來幾年幾乎沒有再融資風險，並且只有2.3% 的ABR 會在2025 年到在年底，我們繼續預期我們的投資組合將在我們應對潛在動盪的宏觀環境時產生持續的現金流。

Turning to the portfolio, as of September 30, we had 547 investments that were leased to 85 tenants that operate within 26 retail and industries across 45 states. The annualized base rent for our portfolio was $124.3 million, 83.3% of which is leased to tenants with investment-grade ratings or investment-grade profiles. Our occupancy remains at 100%, and our weighted average remaining lease term was 9.3 years.

談到投資組合，截至 9 月 30 日，我們擁有 547 項投資，已出租給 85 個租戶，這些租戶在 45 個州的 26 個零售和工業領域開展業務。我們投資組合的年化基本租金為 1.243 億美元，其中 83.3% 出租給具有投資等級評級或投資等級概況的租戶。我們的入住率維持在 100%，加權平均剩餘租賃期為 9.3 年。

Moving on to external growth, we closed on $117.5 million of investments this quarter at a blended cash yield of 7%. The weighted average lease term remaining on these investments was 10 years, and 97.2% of these investments were leased to investment-grade, or investment-grade profile tenants.

轉向外部成長，本季我們完成了 1.175 億美元的投資，綜合現金收益率為 7%。這些投資的剩餘加權平均租賃期間為10年，其中97.2%的投資出租給投資等級或投資等級概況租戶。

Turning to quarterly disposition activity and loan payoffs, we divested of six properties for gross proceeds of $13.5 million at a blended cash yield of 6.9%, continuing to demonstrate our ability to accretively recycle capital while improving the quality and risk profile of our portfolio. All told, we completed $103.9 million of net investment activity in the third quarter, which brings our year to date net investment activity to $327.9 million.

談到季度處置活動和貸款償還，我們剝離了六處房產，總收益為 1,350 萬美元，混合現金收益率為 6.9%，繼續證明我們有能力加速回收資本，同時改善投資組合的品質和風險狀況。總而言之，我們在第三季完成了 1.039 億美元的淨投資活動，這使我們今年迄今為止的淨投資活動達到 3.279 億美元。

While we are seeing significantly more opportunity for acquisitions in the fourth quarter at higher cap rates than what we have seen in 2023, we are also seeing plenty of opportunities to sell assets at stubbornly low cap rates to trade buyers and thus plan to ramp up our selling efforts to take advantage of this spread.

雖然我們看到第四季以比2023 年更高的資本化率進行收購的機會明顯增多，但我們也看到大量機會以極低的資本化率向貿易買家出售資產，因此計劃提高我們的資本化率。利用這種價差進行拋售。

Before I hand the call off to Dan, I want to provide additional commentary on our strategy and expectations as we finish 2023 and head into 2024. Since our inception and IPO several years ago, we have exercised diligence in creating one of the highest credit quality net lease portfolios in the freestanding retail space by partnering with the strongest retailers in the country. We have had no rent interruptions to date, even through a global pandemic, and have experienced zero vacancies.

在將電話交給Dan 之前，我想對我們2023 年結束並進入2024 年的策略和期望提供更多評論。自幾年前成立和首次公開募股以來，我們一直在努力創造最高信用品質的公司之一透過與國內最強大的零售商合作，在獨立零售領域淨租賃投資組合。迄今為止，即使在全球大流行期間，我們的租金也沒有中斷，並且空置率為零。

With the current narrative being dominated by headlines discussing looming recessionary concerns, higher for longer interest rates, and rising delinquencies in consumer credit, we believe the underwriting discipline we have exercised since inception have positioned our portfolio to outperform during a time of heightened macro uncertainty.

由於當前的敘事主要是討論迫在眉睫的衰退擔憂、長期利率上升以及消費者信貸拖欠率上升等頭條新聞，我們相信，我們自成立以來所遵循的承保紀律使我們的投資組合在宏觀不確定性加劇的時期表現優於大盤。

With that, I'll let Dan go over our third quarter financial results, balance sheet, and 2023 guidance update.

接下來，我將讓 Dan 回顧我們的第三季財務表現、資產負債表和 2023 年指導更新。

Thank you, Mark, and thank you, everyone, for joining our call today. Turning to our third quarter earnings release yesterday after the market close, we reported net income of $4.2 million or $0.06 per diluted share.

謝謝馬克，也謝謝大家今天加入我們的電話會議。談到昨天收盤後我們發布的第三季財報，我們報告淨利潤為 420 萬美元，即稀釋後每股收益 0.06 美元。

Core FFO totaled $21.2 million for the quarter, or $0.31 per diluted share. AFFO totaled $21.4 million for the quarter, $0.31 per diluted share -- a 3% increase from the prior year period.

本季核心 FFO 總額為 2,120 萬美元，或稀釋後每股 0.31 美元。本季 AFFO 總計 2,140 萬美元，稀釋後每股 0.31 美元，比去年同期成長 3%。

Total G&A expense, excluding one-time items, was $5.1 million, which represented 14.9% of total revenues. This compares favorably to last quarter and the prior year quarter, when G&A as percentage of revenues was 16% and 18.2%, respectively. As we look out to next year, our G&A should continue to rationalize relative to our asset base and total revenues, as the company has reached the proper scale to effectively operate our business on a go forward basis.

總管理及行政費用（不包括一次性項目）為 510 萬美元，佔總收入的 14.9%。與上季和去年同期相比，這一數字相當不錯，當時 G&A 佔營收的百分比分別為 16% 和 18.2%。展望明年，我們的一般管理費用應相對於我們的資產基礎和總收入繼續合理化，因為公司已達到適當的規模，可以在未來的基礎上有效地運營我們的業務。

Moving onto the balance sheet, total net debt was $567.5 million at quarter end, and our weighted average interest rate was 3.57%. In addition, when including the impact of extension options, which are solely at our discretion, we have no debt maturing until January 2027.

從資產負債表來看，季末淨負債總額為 5.675 億美元，加權平均利率為 3.57%。此外，如果考慮到延期選項的影響（完全由我們自行決定），我們在 2027 年 1 月之前沒有到期債務。

Turning to capital markets activities, we raised $126 million of equity through our ATM during the quarter, which was primarily completed on a forward basis. As of quarter end, we had $98.7 million of ATM equity that remained unsettled.

談到資本市場活動，本季我們透過 ATM 籌集了 1.26 億美元的股本，這主要是在遠期基礎上完成的。截至季末，我們還有 9,870 萬美元的 ATM 資產尚未結算。

As previously announced on July 3, we closed a new $200 million senior unsecured term loan with delayed draw option, which has a fully extended maturity date of January 2029. The term loan includes an accordion feature that allows the company to increase the total loan amount to $400 million. At closing, we drew $150 million and plan to draw the remaining $100 million in the first quarter of 2024.

正如之前於7 月3 日宣布的那樣，我們完成了一項新的2 億美元高級無擔保定期貸款，並具有延遲提款選項，其到期日完全延長至2029 年1 月。該定期貸款包括手風琴功能，允許公司增加貸款總額至 4 億美元。交易結束時，我們提取了 1.5 億美元，並計劃在 2024 年第一季提取剩餘的 1 億美元。

Before we [accessed] $250 million term loan at an all-in fixed rate of 4.99% through January 2029. At quarter end, our liquidity was $564.6 million -- which is comprised of $7.9 million of cash on hand, $358 million available on our revolving credit facility, $98.7 million of available forward equity, and $100 million remaining available principal on our 2029 term loan.

在我們獲得2.5 億美元的定期貸款之前，截至2029 年1 月，總固定利率為4.99%。截至季度末，我們的流動資金為5.646 億美元，其中包括790 萬美元的手頭現金、3.58 億美元的可用現金。循環信貸額度、9,870 萬美元的可用遠期股本以及 2029 年定期貸款的 1 億美元剩餘可用本金。

From a leverage perspective and adjusting for the foreign equity, our net debt to annualized adjusted EBITDAre was 4.2 times at quarter end, which remains company below along on the low end of our targeted leverage range of 4.5 times to 5.5 times.

從槓桿角度來看，並根據外國股權進行調整，截至季度末，我們的淨債務與年化調整後 EBITDA 之比為 4.2 倍，仍低於我們目標槓桿範圍 4.5 倍至 5.5 倍的下限。

Moving to guidance, we are updating our AFFO per share guidance range to $1.21 to $1.23, from $1.20 to $1.23, which includes year over year growth of 5% at the midpoint. On the external growth fund, we now expect to close around $450 million of net investment activity.

在指導方面，我們將 AFFO 每股指引範圍從 1.20 美元更新為 1.21 美元至 1.23 美元，其中中點同比增長 5%。在外部成長基金方面，我們目前預計將完成約 4.5 億美元的淨投資活動。

Lastly, turning to our dividend, on October 24, the Board declared a quarterly cash dividend of $0.205 per share. The dividend will be payable on December 15 to shareholders of record as of December 1. Based on the dividend amount, our AFFO payout ratio for the third quarter was 66%.

最後，談到我們的股息，10 月 24 日，董事會宣布季度現金股息為每股 0.205 美元。股利將於 12 月 15 日支付給截至 12 月 1 日登記在冊的股東。根據股利金額，我們第三季的 AFFO 股利支付率為 66%。

With that, operator, we will now open the line for questions.

接線員，現在我們將開通提問熱線。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Todd Thomas, KeyBanc Capital Markets.

托馬斯 (Todd Thomas)，KeyBanc 資本市場。

Hi, thanks. Good morning. Mark, first question -- you mentioned that you're seeing attractive capital still available as you look at recycling capital. What's the spread look like today between disposition and acquisition cap rates that you're seeing?

你好謝謝。早安.馬克，第一個問題——你提到，當你考慮回收資本時，你發現有吸引力的資本仍然可用。您現在看到的處置上限率和收購上限率之間的差距是多少？

Yes, sure. So I mean, we're focused on really trying to find a trade buyer in 1031 exchanges. So in kind of one-off type situations, we're selling assets anywhere from, call it a five cap to seven cap depending on lease term and where we think we can redeploy that capital.

是的，當然。所以我的意思是，我們的重點是真正嘗試在 1031 交易所中尋找貿易買家。因此，在一次性類型的情況下，我們會在任何地方出售資產，將其稱為五上限到七上限，具體取決於租賃期限以及我們認為可以重新部署該資本的地方。

I'm always hesitant to give a real concrete number on where we're going to go with dispositions just because we're relying on other parties to complete the transaction, and that's out of our control. So the mix could really swing that one way or the other, but for like kind -- types of assets, we think we're picking up anywhere from typically 50 basis points to 100 basis points.

我總是猶豫是否要給出一個真正具體的數字來說明我們將在哪裡進行處置，只是因為我們依賴其他方來完成交易，而這是我們無法控制的。因此，這種組合確實可能會以一種或另一種方式波動，但對於類似類型的資產，我們認為我們的漲幅通常在 50 個基點到 100 個基點之間。

Okay. And then it sounds like you're starting to see investment yields improve a little bit on on new deals that you're looking at. Can you just describe a little bit more about what you're seeing there in terms of price trends? You know, I guess sort of vis-a-vis you know that the sort of 2023, you know, cash yields that you've achieved and sort of the 7% in the third quarter?

好的。然後，聽起來您開始看到您正在考慮的新交易的投資收益率有所提高。您能否詳細描述您所看到的價格趨勢？你知道，我想你知道 2023 年你所實現的現金收益率是多少，第三季達到 7%？

Yes, sure. No, absolutely. We are seeing cap rates move up, and so we, at one point, were acquiring assets at kind of the low-sixes, and that kind of trended up to mid-sixes year end of the year last year, and early this year up into the high sixes, and now a seven cap in the most recent quarter.

是的，當然。不，絕對是。我們看到資本化率上升，因此我們一度以六分之一左右的價格收購資產，這種趨勢在去年年底上升到六分之一左右，今年年初又上升進入前六名，現在在最近一個季度達到了七名。

We would expect the fourth quarter to be even higher than that. We're certainly not looking to transact really anything in the sixes. So I would expect to see 20 plus basis points in the fourth quarter. Some of that's really just going to be dragged down by some developments that we had signed up in the past that were already already funding. I think on new transactions that are likely to close more inin the first quarter are likely to pick up even another 20 basis points, 30 basis points beyond that.

我們預計第四季會比這個數字更高。我們當然不希望在六點內進行任何交易。因此，我預計第四季將出現 20 個以上基點。其中一些確實會被我們過去簽署的一些已經融資的開發項目所拖累。我認為，第一季可能完成的新交易可能會再上漲 20 個基點，甚至超過 30 個基點。

Okay. And then just last question, I guess. I realize conditions are sort of fluid here, but I was just wondering if you can maybe provide a little bit of insight around how you're thinking about investments and maybe dispositions as well? So net investments, you know, really heading into 2024 just given the current environment today?

好的。我想，還有最後一個問題。我意識到這裡的情況有點不穩定，但我只是想知道您是否可以提供一些有關您如何看待投資和處置的見解？那麼考慮到目前的環境，淨投資真的會進入 2024 年嗎？

Yes, sure. I mean, I think with where we're seeing the acquisition market, while it's getting better, it's really I don't think we're getting enough spread to go out and raise equity and deploy capital where we see it today. We do see opportunities like we mentioned on the disposition, and then redeploying through capital recycling, and see some pretty attractive opportunities there.

是的，當然。我的意思是，我認為就我們所看到的收購市場而言，雖然它正在變得更好，但我確實認為我們沒有足夠的傳播來籌集股本並在我們今天看到的情況下部署資本。我們確實看到了我們在處置中提到的機會，然後透過資本回收重新部署，並​​在那裡看到了一些相當有吸引力的機會。

But we'd really need to see a material improvement in our stock price, or see cap rates really move into the eights, for us to consider turning on the spigot of acquiring assets and raising equity.

但我們確實需要看到我們的股價出現實質改善，或是看到資本化率真正上升到八成，我們才會考慮打開收購資產和籌集股本的龍頭。

Okay. All right. Thank you.

好的。好的。謝謝。

Joshua Dennerlein, Bank of America.

約書亞·登納林，美國銀行。

Hi. This is [Farrell Grant] on behalf of Josh. Just a quick question about as you had mentioned, the headlines -- pharmacy specifically -- I was curious about with your current acquisition, are you seeing a change in competition for the assets that you're going after? Kind of like the higher credit quality assets?

你好。我是代表喬許的[法雷爾·格蘭特]。只是一個簡單的問題，正如您所提到的，頭條新聞 - 特別是製藥業 - 我對您當前的收購感到好奇，您是否看到您所追求的資產的競爭發生了變化？有點像是更高信用品質的資產？

Yes,I mean, I think we've really kind of seen this most of the year and probably even more so today where the private buyer is more or less gone. The opportunity standpoint has really never been better in my entire career.

是的，我的意思是，我認為我們今年大部分時間都看到了這種情況，今天可能更是如此，私人買家或多或少已經消失了。在我的整個職業生涯中，機會的立場確實從未如此好過。

That being said, the cost of capital is also a challenge, so we need to kind of balance that, but really developers and tenants trying to grow, even sale-leasebacks, certainly seeing a lot of opportunity there. It's really gone from a full-blown seller market to a full-blown buyer market -- with no bids really in the private market other than the occasional 1031 buyer -- which we're trying to take advantage of the disposition market. And so it's really looking at the overall trends of our transaction market is likely down 70%-80%, but competition is down really 90%-95%.

話雖這麼說，資本成本也是一個挑戰，所以我們需要平衡這一點，但開發商和租戶確實在努力成長，甚至是售後回租，肯定會看到很多機會。它確實從一個成熟的賣方市場轉變為一個成熟的買方市場——除了偶爾的 1031 買家之外，私人市場上沒有真正的出價——我們正試圖利用處置市場。因此，從我們交易市場的整體趨勢來看，它可能會下降 70%-80%，但競爭實際上會下降 90%-95%。

Great.

偉大的。

Thank you.

謝謝。

Eric Wolfe, Citi.

埃里克·沃爾夫，花旗銀行。

It's actually Nick Joseph here with Eric. Just back to sourcing of investments, just kind of curious your thoughts and kind of the rationale of issuing equity in the mid-$16s given the NAV, at least street NAV, in the nineteens, where you've talked about investment spreads and transaction cap rates historically. So just trying to understand the thought process there and kind of a value creation calculation.

實際上是尼克約瑟夫和艾瑞克在一起。回到投資來源，只是有點好奇你的想法和在 16 美元中期發行股票的理由，考慮到 19 世紀的資產淨值，至少是街頭資產淨值，你在其中談到了投資利差和交易歷史上限利率。所以只是想了解那裡的思考過程和某種價值創造計算。

Yes. Hey Nick, it's Dan Donlan. When you think about that price and you include the de minimis net price of that, and you think about where we raised the recent term loan, and then the impact to free cash flow, we got to have basically a 100 basis point spread relative to where we saw our pipeline shaping up into the fourth quarter.

是的。嘿尼克，我是丹唐蘭。當你考慮這個價格並考慮其中的最低淨價，考慮我們在哪裡籌集了最近的定期貸款，然後考慮對自由現金流的影響時，我們基本上必須有 100 個基點的利差我們看到我們的管道正在形成到第四季。

So, that's really kind of -- we focus on earnings growth. We obviously look at implied cap rate as well. And it was probably, marginally dilutive to implied cap rate by 10 basis points or so. So that's the way we looked at it, and it certainly was accretive to our AFFO per share.

所以，這確實是——我們專注於獲利成長。顯然，我們也會考慮隱含上限利率。它可能會略微稀釋隱含資本化率 10 個基點左右。這就是我們看待它的方式，它確實增加了我們每股 AFFO 的收益。

Yes. I guess one of the advantages that you have is that you're smaller and so you can kind of grow off of that base. And so how do you think about the 100 basis points investment spread off of that and kind of taking away some of that advantage versus putting pencils down and waiting for better opportunity?

是的。我想你所擁有的優勢之一就是你的規模較小，所以你可以在這個基礎上成長。那麼，您如何看待由此產生的 100 個基點的投資利差，以及是否會剝奪一些優勢，而不是放下鉛筆等待更好的機會？

Yes, sure. I mean we'd like to get back to more normalized spreads, which I think we've said before, is kind of in the 150 basis point to a 175 basis point spread. But yes, we feel like 100 basis points is adequate and provide some growth in there. Scaling into the G&A is also something that is we view it as helpful.

是的，當然。我的意思是，我們希望回到更正常化的利差，我想我們之前已經說過，利差在 150 個基點到 175 個基點之間。但是，是的，我們認為 100 個基點就足夠了，並且可以提供一些增長。我們認為擴大一般行政費用也很有幫助。

Thanks. And maybe just finally, if you if you did put pencils down, and did no deals going forward or beyond what's in the pipeline today, what would that imply for growth in 2024?

謝謝。也許最後，如果你確實放下了鉛筆，並且沒有進行任何交易或超出今天的計劃，這對 2024 年的增長意味著什麼？

Yes. Hey, Nick. It would basically imply kind of low single digit year-over-year AFFO growth. The building blocks of that is internal rent growth of about 1%. Credit loss is around 30 basis points. Reinvestment of our free cash flow after dividends, let's call it, $32 million of free cash flow after dividends. Obviously the full year impact to 2023's investments and leverage in at around the midpoint of our range.

是的。嘿，尼克。這基本上意味著 AFFO 年成長率較低。其中的基礎是約 1% 的內部租金成長。信用損失約為30個基點。股利後自由現金流的再投資，我們稱之為股息後自由現金流 3,200 萬美元。顯然，全年對 20​​23 年投資和槓桿率的影響約為我們範圍的中點。

What I'd say is if we fixed our $175 million 2024 term loan to -- we push it out to 2027, had we not done that, we probably would be looking at more mid single-digit AFFO growth year over year, but we thought it was prudent given the environment we were in May and June to push off that term loan and swap it to a fixed rate. So we're glad we did it.

我想說的是，如果我們將2024 年1.75 億美元的定期貸款固定為——我們將其推遲到2027 年，如果我們不這樣做，我們可能會看到AFFO 同比增長更多中個位數，但我們考慮到我們五月和六月所處的環境，我們認為推遲定期貸款並將其轉換為固定利率是謹慎的做法。所以我們很高興我們做到了。

Thanks. That's very helpful.

謝謝。這非常有幫助。

Greg McGinniss, Scotiabank.

格雷格·麥金尼斯，豐業銀行。

Well, everyone, thanks for taking the question. So obviously, it takes time for sellers to recognize reality, and for cap rates to increase. So how are you weighing deploying capital today at these seven, low seven cap rates, versus holding back, potentially collecting some cash interest income, and investing in a few quarters once cap rates move higher? Based on our math, long run IRR tends to really appreciate another 25 to 50 basis points of investment yield.

好的，大家，感謝您提出問題。顯然，賣家需要時間來認識現實，提高資本化率也需要時間。那麼，您如何權衡今天以這七個較低的上限利率部署資本，還是保留資金，可能會收取一些現金利息收入，並在上限利率上升後進行幾季的投資？根據我們的計算，長期 IRR 往往會真正使投資收益率再升值 25 至 50 個基點。

Yes, sure. That's a good question. We're, really for the fourth quarter, largely done with the acquisitions. Yes, we -- the guidance, I think -- the slight tweak there really relates to we've got some properties that we're looking at selling and we're relying on other buyers to come through.

是的，當然。這是個好問題。事實上，我們第四季的收購工作已經基本完成。是的，我們——我認為指導——那裡的細微調整確實與我們正在考慮出售的一些房產有關，並且我們依賴其他買家來完成。

So if they don't come through, then that number might be a little bit higher than $450 million. If they all come through, that might be a little bit less, but that's somewhat out of our control. But yes, we have some time to deploy the capital from the most recent equity raise.

因此，如果他們沒有成功，那麼這個數字可能會略高於 4.5 億美元。如果他們都通過了，那可能會少一點，但這在某種程度上是我們無法控制的。但是，是的，我們有一些時間來部署最近股權融資的資金。

And we do feel like cap rates are likely to be higher early 2024 than where they are today. How much higher they go -- a little bit difficult to say -- but we certainly want to reserve some dry powder for early next year.

我們確實認為 2024 年初的資本化率可能會比現在更高。它們會上漲多少——有點難以說——但我們當然想為明年初儲備一些乾粉。

Fair enough. And then year to date, you've had $189,000 of earned development interest, which has been offset by the near $700,000 of capitalized interest expense through AFFO.

很公平。今年迄今為止，您已賺取 189,000 美元的開發利息，該利息已被透過 AFFO 支付的近 70 萬美元的資本化利息支出所抵消。

Is it possible for that to current AFFO headwind to turn into a positive, or a tailwind, into 2024?

目前的 AFFO 逆風是否有可能在 2024 年轉變為利好或順風？

Yes. I mean, it should continue to grow. That's really the interest we receive from developers as we're funding their development. You should see it start to tick up some over time. I don't think it's ever going to eclipse the capitalized interest.

是的。我的意思是，它應該繼續增長。這確實是我們在資助開發商開發時從開發商那裡得到的興趣。隨著時間的推移，您應該會看到它開始上升。我認為它永遠不會超過資本化利息。

Is that part of maybe some of the headwinds on a deal that you agreed to perhaps before cost of capital increased this much?

這是否是您在資本成本增加這麼多之前同意的交易中可能遇到的一些阻力的一部分？

Yes, look, I mean, some of the developments that we entered into were in the first and second quarter, and the yields on those on were low sevens, high sixes. I would note that they had much longer lease terms than what has historically been achieved with those retailers, as well as annual bumps, which you know has not also been historically recognized as well.

是的，我的意思是，我們參與的一些開發項目是在第一季和第二季進行的，這些項目的收益率低七高六。我要指出的是，他們的租賃期限比這些零售商歷史上實現的租賃期限要長得多，而且每年的漲幅也很大，你知道，歷史上也沒有得到認可。

And so sorry, last follow-up here.

非常抱歉，這是最後的跟進。

Go ahead.

前進。

Yes, I can appreciate how you guys were able to change some of those lease terms that we hadn't seen in the past, which definitely is a positive for those.

是的，我很欣賞你們如何能夠改變一些我們過去沒有見過的租賃條款，這對那些人來說絕對是積極的。

In thinking about here going forward, have those same retailers been open to further increasing potential yields on those investments?

考慮到未來，這些零售商是否願意進一步提高這些投資的潛在利益？

I mean, I think some of the retailers are really pressed to grow their store count. They really need institutional capital to come in. They can't rely on the 1031 market like they had in the past through their developer network. So hard to say exactly where all those negotiations go as they're ongoing, but I think if you need institutional capital, most institutions like us like to have annual increases in the leases. So I would expect that to continue on the margin.

我的意思是，我認為一些零售商確實面臨著增加商店數量的壓力。他們確實需要機構資本的介入。他們不能像過去那樣透過開發者網路依賴1031市場。很難確切地說所有這些談判正在進行中，但我認為如果你需要機構資本，像我們這樣的大多數機構都希望每年增加租賃量。所以我預計這種情況會持續下去。

Great. Thank you.

偉大的。謝謝。

Haendel St. Juste, Mizuho.

亨德爾‧聖朱斯特，瑞穗。

Hi Good morning. This is Ravi Vaidya on the phone for Haendel. Hope you guys are doing well. During the quarter, you issued equity when the stock was at $16.50. Can we consider this a watermark as to when you'd consider issuing equity again?

早安.我是 Ravi Vaidya，正在打電話給 Haendel。希望你們一切順利。在本季度，您在股價為 16.50 美元時發行了股票。我們是否可以將其視為您何時考慮再次發行股票的浮水印？

Yes, hey, Ravi. Look, where you raise equity is highly dependent upon the opportunities that you see. Right now, the opportunities that we see relative to our cost of equity as it is, there's not adequate spread there. So we're not going to ever put a number on where we would raise capital or not raise capital. It's ultimately going to depend upon the opportunity set where that's priced, and where are we trade relative to that opportunity set.

是的，嘿，拉維。看，你在哪裡籌集股權很大程度上取決於你看到的機會。目前，我們看到的機會相對於我們的股本成本而言，還沒有足夠的分佈。因此，我們不會給出一個數字來說明我們將在哪裡籌集資金或不籌集資金。它最終將取決於定價的機會集，以及我們相對於該機會集的交易位置。

Got it. And you ended the quarter with leverage at 4.2, and inclusive of the forward. What are you willing to let leverage tick up to in order to execute on your capital deployment goals?

知道了。本季結束時，槓桿率為 4.2，其中包括遠期槓桿。為了執行您的資本部署目標，您願意將槓桿提高到多少？

So our stated leverage range is 4.5 times to 5.5 times, and I think you should expect us to operate within that range in 2024 and beyond. Obviously that we're mindful of the range, and I think you're probably likely see us shake closer to the midpoint of that range over time.

因此，我們規定的槓桿範圍是 4.5 倍到 5.5 倍，我認為您應該期望我們在 2024 年及以後在這個範圍內運作。顯然，我們很注意這個範圍，而且我認為隨著時間的推移，您可能會看到我們越來越接近該範圍的中點。

Got it. Thanks, guys.

知道了。多謝你們。

Thanks.

謝謝。

(Operator Instructions)

（操作員說明）

Alec Feygin, Baird.

亞歷克費金，貝爾德。

Yes, thank you, guys for taking my question. Quick question, just on dispositions, solid slight uptick in that. Do you guys plan on continuing to dispose of some properties in the portfolio and what's the opportunities up there?

是的，謝謝你們回答我的問題。簡單的問題，只是關於處置，這方面略有上升。你們是否計劃繼續處置投資組合中的一些房產？其中有哪些機會？

Yes, we do. I would expect the dispositions to ramp up a little bit here in the fourth quarter, and potentially beyond the fourth quarter. We do see a pretty attractive opportunity to not only accretively recycle capital, but also extend out lease terms by replacing those assets with longer lease term assets with better rental increases and potentially better properties, and we believe we can do that accretively.

是的，我們願意。我預計第四季的處置會有所增加，並可能持續到第四季之後。我們確實看到了一個非常有吸引力的機會，不僅可以增加回收資本，還可以透過用具有更好的租金增長和潛在更好的房產的較長租賃期限資產替換這些資產來延長租賃期限，並且我們相信我們可以逐步做到這一點。

Got it. Thank you. That's it for me.

知道了。謝謝。對我來說就是這樣。

Thanks.

謝謝。

Linda Tsai, Jefferies.

琳達·蔡，杰弗里斯。

Hi. Last quarter, you didn't have any shares outstanding under your forward equity program, but then this quarter you have about 6 million shares?

你好。上個季度，您的遠期股權計畫下沒有任何已發行股票，但本季您有約 600 萬股？

Yes, yes, that's correct.

是的，是的，沒錯。

Oh. Just wondering what happened during the quarter.

哦。只是想知道本季發生了什麼。

Yes, we um, we sold those shares during the quarter through a forward block.

是的，我們在本季透過遠期區塊出售了這些股票。

Okay, got it. And then just on Big Lots. Are there any updates there on -- you know, I know they are on your watchlist but is there any overall view on what's happening with them?

好，知道了。然後就在 Big Lot 上。有沒有任何更新——你知道，我知道它們在你的觀察清單上，但是對它們發生的事情有什麼總體看法嗎？

Yes, sure. I mean, obviously, they've had a less-than-great run over the past several quarters, but they are making some efforts to try to improve their free cash flow, which was neutral last quarter. But that was really driven by cuts to their working capital and you really can't do that for several quarters in a row.

是的，當然。我的意思是，顯然，他們在過去幾個季度的表現不太好，但他們正在努力改善自由現金流，上個季度自由現金流是中性的。但這實際上是由營運資金削減造成的，你真的不能連續幾個季度這樣做。

So we're really kind of trying to look to see them improve their operations and get the positive EBITDA after CapEx to start to feel better about their tenant health, but we are expecting to see some improvement in their gross margin here in a month when they announce earnings. So we'll be looking forward to that.

因此，我們確實希望看到他們改善營運並在資本支出後獲得正的 EBITDA，以開始對他們的租戶健康狀況感覺更好，但我們預計一個月後他們的毛利率會有所改善他們宣布收益。所以我們會期待這一點。

Thanks.

謝謝。

Ki Bin Kim, Truist Securities.

Ki Bin Kim，Truist 證券公司。

Thanks. Good morning. If you had to go raise new debt in the bank markets today, what are you getting quoted?

謝謝。早安.如果您今天必須在銀行市場籌集新債，您會得到什麼報價？

Yes, hey Ki Bin, we're getting quoted in the mid-fives, but to be frank, already we have, you know, $100 million basically of unsettled equity. We have $100 million that we have yet to draw down on the existing term loan. There really isn't any need right now to pull down any type of -- to do any incremental long-term debt issuance if you can call term-loan debt, long-term debt.

是的，嘿，Ki Bin，我們的報價是五點左右，但坦白說，我們已經擁有 1 億美元的未結算股本。我們還有 1 億美元尚未從現有定期貸款中提取。如果你可以將定期貸款債務稱為長期債務，現在確實沒有必要減少任何類型的增量長期債務發行。

Okay. And in terms of drug stores, if you look at the closure plans that have come out recently, any kind of broader common themes that you're seeing? Or is it just four-wall coverage? And when you overlay that with your tenant exposures, any kind of impact that you might see longer-term?

好的。就藥局而言，如果你看看最近出台的關閉計劃，你會看到任何更廣泛的共同主題嗎？或只是四牆覆蓋？當您將其與租戶風險疊加時，您可能會看到任何長期影響？

Yes. I mean, we don't think we're going to have any impact with the locations that we have. We've got a very good, really good relationship, both with CVS and Walgreens. We do not have any rated exposure. And so we talk to them before we're acquiring assets, and really get updates as we see news like this, and call them up. And fortunately, they've been very open with us, and telling us that the stores that we have are not on any closure list.

是的。我的意思是，我們認為我們不會對我們現有的地點產生任何影響。我們與 CVS 和 Walgreens 都保持著非常非常好的關係。我們沒有任何額定暴露。因此，我們在收購資產之前與他們交談，並在看到此類新聞時真正獲得更新，並打電話給他們。幸運的是，他們對我們非常開放，並告訴我們我們擁有的商店不在任何關閉名單上。

But yes, as it relates to the ones that they are closing, some of those are leases that are rolling over where they already have a presence in some of those markets. You know, they've grown through some mergers over the years, and really have multiple stores in the same markets. And they feel like they don't really need that number of stores in those markets. And then there are obviously some locations that just don't generate positive cash flow, so those are the ones that they look to close.

但是，是的，因為這與他們即將關閉的項目有關，其中一些是在他們已經在某些市場上佔有一席之地的租賃中滾動的。你知道，多年來他們透過一些合併不斷發展壯大，並且在同一市場擁有多家商店。他們覺得他們並不真正需要在這些市場上開設那麼多商店。顯然，有些地點無法產生正現金流，因此他們希望關閉這些地點。

Okay. Thank you.

好的。謝謝。

We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Mark Manheimer for closing comments.

我們的問答環節已經結束。我現在想把發言權交還給馬克·曼海默以徵求結束意見。

Thanks, everybody, for joining us today. We look forward to seeing you in the next few weeks at the conferences and appreciate everybody's time. Thanks.

謝謝大家今天加入我們。我們期待在接下來的幾週內在會議上見到您，並感謝大家的寶貴時間。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。