Netstreit Corp (NTST) 2025 Q2 法說會逐字稿

Greetings and welcome to the NETSTREIT Corp second quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Amy An, Investor Relations. Thank you. You may begin.

問候並歡迎參加 NETSTREIT Corp 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興向大家介紹主持人、投資者關係部門 Amy An。謝謝。你可以開始了。

We thank you for joining us for NETSTREIT's second quarter 2025 earnings conference call. In addition to the press release distributed yesterday after the market closed, 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.

感謝您參加 NETSTREIT 2025 年第二季財報電話會議。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。這兩份文件均可在公司網站 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 1,995. Forward-looking statements address matters that are subject to risk and uncertainties that may cause actual results to differ from those discussed today. For more information about these risk factors, we encourage you to review our Form 10-K for the year end of December 31, 2024, and our other SEC filings.

在今天的電話會議上，管理層的評論和對您的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因素影響的事項，這些風險和不確定因素可能導致實際結果與今天討論的結果不同。有關這些風險因素的更多信息，我們建議您查看我們截至 2024 年 12 月 31 日的 10-K 表格以及我們向 SEC 提交的其他文件。

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. 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, reconciliation to the most comparable GAAP measure, and an explanation of why we believe such non-GAAP financial measures are useful to investors.

所有前瞻性陳述均截至本聲明之日作出，NETSTREIT 不承擔未來更新任何前瞻性陳述的義務。此外，本次電話會議上提供的某些財務資訊包括非公認會計準則財務指標。請參閱我們的收益報告和補充資料，以了解非公認會計準則 (non-GAAP) 指標的定義、與最可比較的公認會計準則 (GAAP) 指標的調節，以及我們認為此類非公認會計準則 (non-GAAP) 財務指標對投資者有用的原因。

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。他們會發表一些準備好的講話，然後我們會開始回答你們的問題。現在，我將把電話轉給馬克。標記？

Thank you, Amy, and thank you all for joining us this morning to discuss our second quarter 2025 results. Similar to past quarters, we continued to improve our tenant diversification by a thoughtful and accretive dispositions, and we are now slightly ahead of pace as it relates to our year-end goals.

謝謝你，艾米，也謝謝大家今天早上加入我們討論我們的 2025 年第二季業績。與前幾季類似，我們繼續透過深思熟慮和增值的配置來改善我們的租戶多樣化，現在我們在實現年終目標方面略有領先。

On the external growth front, our team is actively sourcing attractive investments across a broad spectrum of tenants and industries, and we remain confident in our ability to find off the run opportunities that fit our underwriting standards.

在外部成長方面，我們的團隊正在積極地從廣泛的租戶和行業中尋找有吸引力的投資，並且我們仍然有信心找到符合我們承保標準的現有機會。

From a portfolio perspective, our tenants remain incredibly healthy, and our heavy concentration within the necessity, discount and service industries adds further stability to our cash flows. In addition, we provided new disclosure during the second quarter to illustrate our de minimis credit losses, since inception and better demonstrate the overall strength of our portfolio, which I will discuss later.

從投資組合的角度來看，我們的租戶仍然非常健康，我們在必需品、折扣和服務業的高度集中進一步增強了我們的現金流穩定性。此外，我們在第二季度提供了新的披露，以說明我們自成立以來的最低限度信貸損失，並更好地展示我們投資組合的整體實力，我將在稍後討論。

We believe this enhanced disclosure, continued diversification efforts, and disciplined approach to capital deployment have all contributed to the improvement in our cost of capital. While there is still plenty of room for improvement on this front, we did take advantage of our favourable investment spreads to raise over $46 million via the ATM this quarter.

我們相信，加強資訊揭露、持續的多元化努力以及嚴謹的資本配置方式都有助於改善我們的資本成本。雖然在這方面仍有很大的改進空間，但我們確實利用了有利的投資利差，本季透過 ATM 籌集了超過 4,600 萬美元。

With all these positives in mind, we are increasing our AFFO per share guidance midpoint by a penny to a new range of $1.29 to $1.31, and we are increasing our net investment guidance by $50 million at the midpoint to a new range of $125 million to $175 million.

考慮到所有這些積極因素，我們將每股 AFFO 指導中點提高一美分，達到新的 1.29 美元至 1.31 美元範圍，並將淨投資指導中點提高 5000 萬美元，達到新的 1.25 億美元至 1.75 億美元範圍。

Turning back to external growth, we completed $117.1 million of gross investments at a blended cash yield of 7.8% during the quarter. Well, we're thrilled to achieve our highest quarterly cash yield on record in the second quarter. We do not expect this to repeat in the back half of the year, as the opportunities that have the best risk adjuster returns are currently blending to a 7.4% to a 7.5% cash yield.

回到外部成長，本季我們完成了 1.171 億美元的總投資，混合現金收益率為 7.8%。嗯，我們很高興在第二季度實現了有史以來最高的季度現金收益率。我們預計這種情況不會在今年下半年重演，因為目前風險調整回報最佳的機會的現金收益率為 7.4% 至 7.5%。

The weighted average lease term for our second quarter investments was 15.7 years with investment grade and investment grade profile tenants representing more than more than a quarter of these acquisitions. Additionally, more than half of our investment activity this quarter was accretively funded with the disposition proceeds which totalled $60.4 million across 20 properties at a 6.5% blended cash yield.

我們第二季投資的加權平均租賃期限為 15.7 年，其中投資等級和投資等級概況租戶佔這些收購的四分之一以上。此外，本季我們超過一半的投資活動都由處置收益提供資金，共 6,040 萬美元，涉及 20 處房產，混合現金收益率為 6.5%。

As we look out to the third quarter and beyond, we're currently seeing great investment opportunities across a variety of tenants and industries, including farm supplies, grocery, quick service restaurants, auto service, and convenience stores, to name a few.

展望第三季及以後，我們目前看到各種租戶和行業都有巨大的投資機會，包括農場用品、雜貨店、快餐店、汽車服務和便利商店等等。

Turning to the portfolio, we ended the quarter with investments in 705 properties, that were leased to 106 tenants operating in 27 industries across 45 states. From a credit perspective, 68.7% of our total ABR is leased to investment grade or investment grade profile tenants. Our weighted average lease term remaining for the portfolio was 9.8 years, with just 1.2% of ABR expiring through 2026.

談到投資組合，截至本季末，我們投資了 705 處房產，這些房產出租給了 45 個州 27 個行業的 106 個租戶。從信用角度來看，我們總 ABR 的 68.7% 租給了投資等級或投資等級租戶。我們的投資組合剩餘加權平均租賃期限為 9.8 年，其中只有 1.2% 的 ABR 將在 2026 年到期。

As mentioned earlier, we have updated our disclosure to better demonstrate the individual property risk within our portfolio, as well as providing more details around our best in class track record as it relates to credit loss. Moreover, we believe this disclosure serves to better illustrate the underwriting discipline that we have maintained since inception. Which, as we've said before, goes well beyond just understanding the corporate credit.

如前所述，我們已更新我們的揭露，以更好地展示我們投資組合中的個別財產風險，並提供與信用損失相關的最佳業績記錄的更多詳細資訊。此外，我們相信，此揭露有助於更好地說明我們自成立以來一直保持的承保紀律。正如我們之前所說，這遠遠超出了僅僅了解公司信用的範圍。

We also emphasize unit level performance in locations, where we believe the rent is replaceable, which helps us to carefully manage lease expirations. We also focus on larger and more established operators that we believe are more capable of adapting to market changes.

我們也強調在我們認為租金可替代的地區單位層級的表現，這有助於我們謹慎管理租賃到期。我們也關注規模更大、更成熟的營運商，我們認為這些營運商更有能力適應市場變化。

As you can see from our investor presentation, our portfolio-wide unit level rent coverage ticked up to 3.9 times from 3.8 times, when we initially provided the disclosure less than two months ago. To reiterate, we believe this disclosure provides excellent visibility into our best in class default and credit loss statistics while providing the necessary context around future risks within our portfolio.

從我們的投資者介紹中可以看出，我們整個投資組合的單位級租金覆蓋率從不到兩個月前我們首次披露時的 3.8 倍上升至 3.9 倍。重申一下，我們相信，這項揭露為我們提供了一流的違約和信用損失統計數據，同時也為我們投資組合中未來風險提供了必要的背景資訊。

We believe this insight, which is not uniformly disclosed across the net lease industry, should provide investors with greater comfort in the future cash flow production of our portfolio both on an absolute basis and relative to our net lease peers.

我們相信，這項見解（在淨租賃產業中並未統一揭露）應該能讓投資人對我們投資組合的未來現金流產生更有信心，無論是在絕對基礎上還是相對於我們的淨租賃同業而言。

Before handing the call over to Dan, I wanted to reiterate a message that we have consistently provided in the past. We will not sacrifice our balance sheet for growth, nor will we grow for the sake of asset growth without an appropriate level of per share earnings growth.

在將電話交給丹之前，我想重申我們過去一直傳達的訊息。我們不會為了成長而犧牲資產負債表，也不會在沒有適當每股收益成長水準的情況下為了資產成長而成長。

However, with our cost of capital having meaningfully improved throughout the year, we can now afford to be more acquisitive, which is a welcome development for the NETSTREIT team. We very much appreciate the support of our shareholders, and we remain confident that our growth from a small-based narrative can gain additional traction, as we execute our strategy. With that, I'll hand the call to Dan to go over second quarter financials and then open up the call for your questions.

然而，由於我們的資本成本在全年都有了顯著改善，我們現在可以進行更多的收購，這對 NETSTREIT 團隊來說是一個可喜的發展。我們非常感謝股東的支持，我們仍然相信，隨著我們實施策略，我們從小規模發展中獲得的成長可以獲得額外的動力。說完這些，我會把電話交給丹，讓他介紹第二季的財務狀況，然後開始回答大家的問題。

Thank you, Mark. Looking at our second quarter earnings, we reported net income of $3.3 million or $0.04 per diluted share. Core FFO for the quarter was $25.6 million or $0.31 per diluted share, and AFFFO was $27.5 million or $0.33 per diluted share, which is a 3.1% increase over last year.

謝謝你，馬克。縱觀我們的第二季收益，我們報告的淨收入為 330 萬美元，即每股 0.04 美元。本季核心 FFO 為 2,560 萬美元，即每股攤薄收益 0.31 美元，AFFFO 為 2,750 萬美元，即每股攤薄收益 0.33 美元，較去年同期成長 3.1%。

Turning to the expense front, our total recurring G&A in the quarter increased year over year to $5.4 million, which was mostly a result of our staffing levels normalizing after we restructured various roles last year. That said, with our total recurring G&A representing 11% of total revenues this quarter versus 12% in the prior quarter, our G&A continues to rationalize relative to our revenue base.

談到費用方面，本季我們的經常性 G&A 總額年增至 540 萬美元，這主要是因為我們去年重組了各個職位後人員配置水準恢復正常。也就是說，本季我們的經常性 G&A 總額佔總營收的 11%，而上一季為 12%，相對於我們的營收基礎，我們的 G&A 繼續合理化。

Turning to capital markets activity in the second quarter, we sold $2.8 million shares via our ATM program generating over $46.1 million of net proceeds. Additionally, we settled 1.1 million shares during the quarter. Turning to the balance sheet, our adjusted net debt, which includes the impact of all foreign equity, was $713.8 million.

談到第二季的資本市場活動，我們透過 ATM 計畫出售了價值 280 萬美元的股票，產生了超過 4,610 萬美元的淨收益。此外，我們在本季結算了 110 萬股股票。轉向資產負債表，我們的調整後淨債務（包括所有外國股權的影響）為 7.138 億美元。

Our weighted average debt maturity was 3.8 years, and our weighted average interest rate was 4.58%. Including extension options which can be exercised at our discretion, we have no material debt maturing until February 2028. In addition, our total liquidity was $594 million at quarter end, which consisted of $20 million of cash on hand, $373 million available on a revolving credit facility, and $202 million of unsettled forward equity.

我們的加權平均負債期間為 3.8 年，加權平均利率為 4.58%。包括我們可自行決定行使的延期選擇權在內，我們沒有在 2028 年 2 月之前到期的重大債務。此外，本季末我們的總流動資金為 5.94 億美元，其中包括 2,000 萬美元的現金、3.73 億美元的循環信貸額度以及 2.02 億美元的未結算遠期股權。

From a leveraged perspective, our adjusted net debt to annualized adjusted EBITDAre was 4.6 times at quarter end, which was down from 4.7 times last quarter and remains well within our targeted leverage range of 4.5 times to 5.5 times.

從槓桿角度來看，本季末我們的調整後淨負債與年度調整後 EBITDAre 比率為 4.6 倍，低於上一季的 4.7 倍，並且仍然遠低於我們 4.5 倍至 5.5 倍的目標槓桿範圍。

Moving on to guidance for 2025. We are increasing our AFFO per share guidance range to $1.29 to $1.31 from the prior range of $1.28 to $1.30, and we are increasing our net investment activity guidance range to $125 million to $175 million from the prior range of $75 to $125 million. Additionally, we now see recurring cash G&A ranging between $15 million to $15.5 million for 2025. From a rent loss perspective, our guidance now assumes roughly 25 basis points of unknown rent loss at the midpoint of our range.

繼續制定 2025 年的指導方針。我們將每股 AFFO 指引範圍從先前的 1.28 美元至 1.30 美元提高至 1.29 美元至 1.31 美元，並將淨投資活動指引範圍從先前的 7,500 萬美元至 1.25 億美元提高至 1.25 億美元至 1.75 億美元。此外，我們現在預計 2025 年經常性現金 G&A 將在 1,500 萬美元至 1,550 萬美元之間。從租金損失的角度來看，我們的指導現在假設我們範圍中點的未知租金損失約為 25 個基點。

Lastly, due to the due to our outstanding for equity, our midpoint assumes slightly less than a penny of dilution resulting from the treasury stock method. Lastly, on July 21, the board declared a quarterly cash dividend of $0.215 per share, which represents a 2.4% increase over the prior quarter dividend. The dividend will be payable on September 15 to shareholders of record as of September 2.

最後，由於我們未償還的股權，我們的中點假設庫存股法導致的稀釋略低於一美分。最後，7 月 21 日，董事會宣布季度現金股利為每股 0.215 美元，比上一季股利增加 2.4%。股利將於 9 月 15 日支付給 9 月 2 日登記在冊的股東。

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

有了這位接線員，我們現在就可以開通問答熱線了。

(Operator Instructions) Haendel St. Juste, Mizuho Securities.

(操作員指示)Haendel St. Juste、瑞穗證券。

Hey guys, good morning, great quarter. Wanted to ask you a question. I guess, Mark, a big picture one, and it kind of dovetails on your prepared remarks. The stock is up, 30%. Your WACC and investment spreads have improved, pretty dramatically. So I guess can you talk a bit more about how this improved WACC impacts a range of capital deployment alternatives available to you now and.

嘿，大家早上好，這是一個很棒的季度。想問你一個問題。我想，馬克，這是一個宏觀的視角，它與你準備好的發言很吻合。股票上漲了30%。您的加權平均資本成本 (WACC) 和投資利差已顯著改善。所以我想您能否再多談談這種改進的 WACC 如何影響您現在可用的一系列資本部署替代方案。

How much and where you can deploy capital, your initial guide obviously was pretty conservative, and even the updated acquisition guide sits, below where you've been in some other quarters recently. So I was just curious on some thoughts on that front. Thanks.

您可以部署多少資本以及在何處部署資本，您最初的指南顯然是相當保守的，甚至更新後的收購指南也低於您最近在其他一些季度的水平。所以我只是對這方面的一些想法感到好奇。謝謝。

Yeah, sure, so thanks Haendel. Yeah, it's going to be -- it's going to continue to be pretty fluid, as we continue to monitor our cost of capital. I think as it relates to our ability to deploy capital in and around the cap rates, we've been maybe not this quarter, which I think was maybe a little bit of an outlier at [7.8], I think kind of more normal for us in this environment probably [7.4, 7.5] something like that. But for us to be able to deploy net $150 million to $200 million would be pretty easy. It's just going to come down to, our cost of capital and hopefully we can continue to see improvement there.

是的，當然，謝謝 Haendel。是的，它會——它會繼續非常不穩定，因為我們會繼續監控我們的資本成本。我認為，由於這與我們在資本化率內外部署資本的能力有關，本季度我們可能沒有達到這個水平，我認為 [7.8] 可能有點異常，我認為在這種環境下對我們來說更正常，可能是 [7.4, 7.5] 之類的。但對我們來說，能夠部署淨 1.5 億至 2 億美元是相當容易的。最終還是要歸結為我們的資本成本，希望我們能繼續看到這方面的改善。

Got it. It sounds like, a bit more, IG will be part of the mix and part of why we expect the yields to come down in in the next couple of quarters.

知道了。聽起來，投資等級債券 (IG) 將成為其中的一部分，這也是我們預計未來幾季殖利率將下降的原因之一。

Yeah, I think this quarter, we had a couple of unique opportunities with some [CSO] operators, where we have relationships, where they're doing some add-on acquisitions of some from some smaller operators. We were able to get attractive leases, add these properties into existing master leases, extend the term out. At 4 times rent coverage, so, at pretty attractive cap rate.

是的，我認為本季度，我們與一些 [CSO] 運營商有一些獨特的機會，我們與他們建立了關係，他們正在從一些較小的運營商那裡進行一些附加收購。我們能夠獲得有吸引力的租約，將這些房產添加到現有的主租約中，並延長租約。租金覆蓋率為 4 倍，因此資本化率相當有吸引力。

So anytime we get, we see those types of opportunities, we're going to jump all over them. We just don't expect to see that, every quarter, we just, really felt like this was a great opportunity for us this quarter, which is why you see that [7.8], it's a larger operator doesn't quite qualify for an investment grade profile doesn't have a credit rating, but has no debt for all of those operators. So an operator we're very comfortable with and of course at 4 times rent coverage and a master lease, you're pretty well protected.

所以，無論何時，只要我們看到這樣的機會，我們就會抓住它們。我們只是沒想到每個季度都會看到這種情況，我們真的覺得這對我們來說是本季度的絕佳機會，這就是為什麼你看到 [7.8]，它是一個較大的運營商，不太符合投資級概況，沒有信用評級，但對所有這些運營商來說都沒有債務。因此，我們對營運商非常放心，當然，透過 4 倍租金覆蓋和主租賃，您可以得到很好的保護。

Great. And the second question is on the Walgreens, the Dollar store, disposition things seem to be proceeding, pretty well. There may be some color on if you could compare contrast the demand for the assets and the cap rate you're getting the private market on those fronts. And then maybe some color on where we'd expect you to maybe add more exposure or deploy some of that capital. Thanks.

偉大的。第二個問題是關於 Walgreens（一元商店）的處置事宜，目前進展順利。如果您可以比較資產需求和私人市場資本化率，可能會有一些了解。然後我們可能會對您可能增加更多曝光或部署部分資本的地方進行一些說明。謝謝。

Yeah, sure. So, yeah, and I'd say as it relates to dispositions, kind of similar to our acquisitions this quarter, the cap rate was a little bit better, than what we've seen in the past. We did execute a number of pretty attractive dispositions, sold off some advanced autos kind of in a low 6% cap rate range, got that concentration really where we're more comfortable.

是的，當然。是的，我想說，就處置而言，這有點類似於我們本季的收購，資本化率比我們過去看到的要好一點。我們確實執行了一些相當有吸引力的處置，以 6% 的較低資本化率範圍出售了一些先進的汽車，真正將注意力集中在我們更舒適的地方。

Sold to CBS, outside of Nashville at a 5.5% cap. So really had a couple of cap rates to kind of drug that down a little bit, and we're about done with what we need to sell with Walgreens. We may need to sell another one or maybe two, for the rest of the year to kind of get us below that 3% concentration, that we outlined a couple of quarters ago. So I feel pretty good about that.

以 5.5% 的上限出售給納許維爾以外的 CBS。因此，我們確實採取了一些措施來降低資本化率，而我們與 Walgreens 的銷售工作也基本上完成了。我們可能需要在今年剩餘時間內再出售一兩輛，以使我們的濃度低於我們幾個季度前概述的 3%。所以我對此感覺很好。

But the demand for dollar stores, which I think that's really, we still have a little bit of wood chop. There's just a ton of demand from both [1,031] buyers as well as institutional investors at pretty attractive cap rates. So every quarter since inception we've been able to accretively recycle capital, and I don't think that's going to be any different in the third and fourth quarter. I just don't think it's going to be quite as dramatic as it was quarter.

但對於一元商店的需求，我認為確實如此，我們仍然需要一點木材。來自 [1,031] 買家和機構投資者的需求都非常大，而且資本化率也相當有吸引力。因此，自成立以來，每個季度我們都能夠增加資本回收，我認為第三季和第四季的情況也不會有什麼不同。我只是不認為它會像上一季那樣戲劇化。

Great, thank you and best of luck.

太好了，謝謝你，祝你好運。

John Kilichowski, Wells Fargo.

約翰‧基利霍夫斯基，富國銀行。

Thank you, good morning. Just kind of a follow up to the first question, Mark, you answered this a little bit, and I'm not sure if you can give any more color here, but just as we think about, in the second half of the year you said IG percentage is going to increase and cap rates are going to tighten a little bit and your increased investment guidance.

謝謝，早安。馬克，這只是對第一個問題的後續回答，我不確定你是否可以在這裡提供更多信息，但正如我們所想，在下半年，你說投資回報率百分比將會增加，資本化率將稍微收緊，並且你增加了投資指導。

How much of your new investment guide has some sort of conservatism for the uncertainty about your access to equity capital, and maybe if the opportunity arises here in the near future for you to lock in more equity capital, where do you think that investment guide could go to? Or what do you think the opportunity that is for you all?

您的新投資指南中有多少內容對您獲取股權資本的不確定性持保守態度，如果在不久的將來您有機會鎖定更多的股權資本，您認為該投資指南將會如何運用？還是您認為這對大家來說是個什麼樣的機會？

Yeah, I mean, I think the opportunity set is pretty massive right now, we're the team is very excited to be able to start to -- really access the acquisitions market a little bit more than we have more recently. And yeah, I mean, I think right now with the team we have in place, the market as it sits today deploying $150 million to $200 million net acquisitions each quarter in and around the cap rates, that we've been at with a similar mix of product is certainly doable, but we're going to continue to be mindful about where our equity's trading and our cost of capital.

是的，我的意思是，我認為現在的機會非常巨大，我們團隊非常高興能夠開始 - 比最近更多地進入收購市場。是的，我的意思是，我認為現在憑藉我們現有的團隊，在目前的市場條件下，每季在資本化率上下部署 1.5 億至 2 億美元的淨收購，我們採用類似的產品組合當然是可行的，但我們將繼續關注我們的股權交易和資本成本。

(technical difficulty) Got it. And then maybe just on the equation, I know we discussed the potential for a ratings upgrade. Curious if you've had any conversations with the rating agencies and what do you think the impact, would be on your WACC and if that's considered at all in your guide.

（技術難題）明白了。然後也許只是在等式上，我知道我們討論了評級升級的可能性。好奇您是否與評級機構進行任何對話，您認為這會對您的 WACC 產生什麼影響，以及您的指南中是否考慮到了這一點。

Yeah, hey John, it's Dan, we don't have anything pencilled into our guidance, for this year if we were to receive a rating, we don't have a current rating, so there's nothing to upgrade, but certainly if we were to get an investment grade credit rating, that would allow us to then, utilize a leverage toggle which would then, look to reduce, would bring down our term loan debt by 20 basis points, and then we'd also get the credit service adjustment, that's another 10 basis points. So basically, all of our debt would come down by about 30 basis points.

是的，嘿，約翰，我是丹，我們的指導中沒有任何內容，今年如果我們要獲得評級，我們沒有當前評級，所以沒有什麼可以升級的，但如果我們要獲得投資級信用評級，那將使我們能夠利用槓桿切換，然後尋求減少，將我們的定期貸款債務降低 20 個基點，然後我們還會獲得信用服務調整，這是另外 10 個基點。所以基本上，我們所有的債務都會下降約 30 個基點。

As far as our conversations that we're -- we're going to start having those, come later in the third quarter and you know we're optimistic, that we can reach a favourable outcome but, you know that's just where we are today.

就我們的談話而言——我們將在第三季晚些時候開始進行這些談話，你知道我們很樂觀，我們可以達成一個有利的結果，但你知道這就是我們今天的狀況。

Yeah, very helpful. Thank you.

是的，非常有幫助。謝謝。

West Golladay, Baird.

西戈拉迪，貝爾德。

Hey, good morning, guys. I'm just looking at the balance sheet. You have about $58 million held for sale. Will this be all done disposed of this year, and will this be the last of the heavy dispositions?

嘿，大家早安。我只是在看資產負債表。您持有約 5,800 萬美元待售。這一切會在今年得到處理嗎？這會是最後一次沉重的處置嗎？

Yeah, I mean, I think we have a decent amount that you know, that we're still doing so I mean the last few quarters have been pretty heavy. I think the third quarter will be pretty heavy again. We'll start to moderate a little bit in the fourth quarter. We can never guarantee that anybody that we're trying to sell a property to is actually going to close, so can't make any guarantees that that'll all be gone.

是的，我的意思是，我認為我們有相當多的，你知道，我們仍然在做，所以我的意思是過去幾個季度相當繁忙。我認為第三季將會再次變得相當沉重。我們將在第四季開始稍微放緩。我們永遠無法保證我們試圖向其出售房產的任何人實際上都會成交，因此無法保證所有房產都會售罄。

But I'd say the lion's share of that of that should be gone and then when you look towards next year, I would expect our disposition pace to moderate, more closely to what it was maybe two, three years ago.

但我想說，其中的大部分應該已經消失了，然後當你展望明年時，我預計我們的處置速度將會放緩，更接近兩三年前的水平。

Okay, when you look at the investment pipeline, is there a lot of loans in that?

好的，當您查看投資管道時，其中是否有很多貸款？

There are some, but it's really, bad enough to replace what's getting paid off, so it's not a massive amount.

有一些，但實際上，這足以彌補所欠的金額，所以金額並不是很大。

Okay, and then just one more Big Lots question. I know you love these; do you have an update on the vacant lease?

好的，然後我再問 Big Lots 一個問題。我知道你喜歡這些；你有空置租約的最新消息嗎？

Yeah, I mean, we've progressed pretty far along. We're negotiating, really with two, but there are three LOIs where we're still kind of going back and forth with, the two of the two more likely operators are national tenants' investment grade tenants. They're both willing to pay more rent than what Big Lots was, so they need to get through their investment committee, and kind of get through their process of what they need to actually do to the to the box to make it ready for them to move in.

是的，我的意思是我們已經取得了很大的進步。我們正在與兩家公司進行談判，但還有三家意向書我們仍在反覆商討，兩家最有可能的業者是國家租戶的投資級租戶。他們都願意支付比 Big Lots 更高的租金，所以他們需要通過投資委員會，並完成他們需要對箱子進行的實際操作以使其準備好入住的過程。

So I do, I would expect us to have an LOIs signed this quarter, before the next earnings call, but then, by the time that they come in and start paying rent will likely be early next year.

所以我希望我們能在本季度，也就是下次收益電話會議之前簽署一份意向書，但是到那時，他們開始支付租金的時間可能已經是明年年初了。

Greg McGinniss, Scotiabank

加拿大豐業銀行格雷格麥金尼斯

Hi, this is Elmer Chang. I'm with Greg. You mentioned seeing. (technical difficulty) Made 7% cap rate for investments with the best risk adjusted returns. Are you just facing pricing power challenges given investment grade sellers may have been aware, that your high cost of equity at the start of the year was restricting, any healthier investment spreads, or are there any other trends, driving path rates for investment rates and all that and 70% level.

你好，我是 Elmer Chang。我和格雷格在一起。您提到看見。（技術難度）對風險調整後收益最佳的投資實現 7% 的資本化率。您是否只是面臨定價能力挑戰，因為投資等級賣家可能已經意識到，年初的高股權成本正在限制任何更健康的投資利差，或者是否存在其他趨勢，推動投資利率的路徑利率以及所有這些以及 70% 的水平。

Yeah, Elmer, I mean, I would say unfortunately we don't control what the market bears and what we can really buy properties for. We can negotiate our end, but we need to have a willing seller and really what we've seen on the investment grade side is unless you're willing to take on, co-tenancy and other types of risks that we're not willing to really put into the portfolio.

是的，埃爾默，我的意思是，不幸的是，我們無法控制市場承受的價格以及我們真正能買到什麼樣的房產。我們可以協商，但我們需要有一個願意的賣家，而我們在投資等級方面看到的是，除非你願意承擔共同租賃和其他類型的風險，否則我們不願意真正將其納入投資組合。

The cap rates just haven't moved up enough, for us to really feel like we're getting paid a strong enough risk adjusted return on most investment grade opportunities, which is why you've seen other opportunities get through our filter, where we've got, larger operators. Very good credits and very strong unit level coverage, whereas the investment rate side, we're just not going to go out and pay, like I mentioned, we sold the CVS at a 5.5% cap, we're not going to go buy, CVS is anywhere around that type of a cap rate nor are we buying pharmacies. But yeah, I mean I think it's really been the market has bared.

資本化率還沒有上升到足夠的水平，讓我們真正感覺到我們在大多數投資級機會中獲得了足夠強勁的風險調整回報，這就是為什麼你會看到其他機會通過我們的篩選，而我們擁有更大的運營商。非常好的信用和非常強大的單位級覆蓋，而在投資利率方面，我們不會出去支付，就像我提到的，我們以 5.5% 的上限出售了 CVS，我們不會去購買，CVS 的上限利率在任何地方都處於這種水平，我們也不會購買藥店。但是是的，我的意思是我認為這確實是市場所暴露出來的。

Higher cap rates for non-investment grade tenants and getting better risk adjusted returns than you are for the -- for the investment grade tenants in most cases you are seeing a number of opportunities still get, that we're able to source and I think they're maybe not marketed quite as quite as effectively. And so we get pretty good pricing on a handful of those deals, but to really be able to scale investment grade acquisitions at cap rates, that makes sense right now I don't think is really achievable.

非投資等級租戶的資本化率更高，獲得的風險調整回報也比投資級租戶更好——在大多數情況下，您會看到仍然有很多機會，我們能夠找到這些機會，但我認為它們的營銷效果可能沒有那麼好。因此，我們在少數交易中獲得了相當不錯的定價，但要真正以資本化率擴大投資等級收購的規模，我認為目前是無法實現的。

(technical difficulty) Okay, thanks for that. And given you've had no major events to date, what are you now assuming for bad debt expense for the rest of the year since, while you're the investment guidance and the AFO range, but you expect less [credit]. Based combats for cap rates for the rest of the year.

（技術難題）好的，謝謝。鑑於您迄今為止沒有發生重大事件，您現在對今年剩餘時間的壞帳費用有何假設？雖然您有投資指導和 AFO 範圍，但您預計會減少[信用]。為今年剩餘時間的資本化率而戰。

Hey Elmer, it's Daniel. I think I caught most of your, question. You're breaking up a little bit, but as we stated in the prepared remarks, we're assuming about 25 basis points of credit loss between here and your end, at the midpoint of the range.

嘿，艾爾默，我是丹尼爾。我想我回答了你的大部分問題。您的說法有點混亂，但正如我們在準備好的評論中所述，我們假設從這裡到您的最終結果之間（範圍的中點）的信用損失約為 25 個基點。

Michael Goldsmith, UBS.

瑞銀集團的麥可‧戈德史密斯。

Good morning. Thanks a lot for taking my question. It's clear you're feeling more comfortable with issuing equity at the ATM. Is that contingent of you buying at the cap, these elevated cap rates in the last couple of quarters in the [77, 78] range, and, as you move into more [ID] stuff like, presumably the cap rates will come down, on a blended basis. So just trying to understand, what spread you're comfortable issuing and acquiring.

早安.非常感謝您回答我的問題。很明顯，你對在 ATM 機上發行股票感到更舒服。這是取決於你以上限購買，過去幾季中這些上限利率在 [77, 78] 範圍內上升，而且，隨著你進入更多 [ID] 之類的市場，大概上限利率會在混合基礎上下降。所以只是想了解一下，您願意發行和獲得什麼樣的利差。

Yeah, Michael, we’ve always said, that we would be comfortable issuing equity if we were north of 100 basis points of spread relative to our WACC. As we sit here today and you think about a 7.5% cap rate in the back half of the year, maybe 7.4%. When you think about our AFFO yield using our run rate AFFO coming out of the second quarter and then looking at 5.5 years to 7-year term loans as the debt source there, we can source transactions about 150 basis points to 160 basis points wide of what we think our WACC is the current moment.

是的，邁克爾，我們一直說，如果我們的加權平均資本成本利差超過 100 個基點，我們就會放心發行股票。今天我們坐在這裡，你會想到今年下半年的資本化率是 7.5%，也許是 7.4%。當您考慮我們的 AFFO 收益率時，請使用第二季度的運行率 AFFO，然後將 5.5 年到 7 年期貸款作為債務來源，我們可以從我們認為的當前 WACC 範圍中獲取約 150 個基點到 160 個基點的交易。

Got it. Thanks for that, Dan. And my follow-up question is, based on the guidance, obviously, you’ve been able to acquire more on a net basis. But are there any mitigating factors that is contemplated within the guidance? Are you taking into account the treasury stock dilution just given some of these issuances and trying to get understand kind of, like, the moving pieces within the within the outlook? thanks.

知道了。謝謝你，丹。我的後續問題是，根據指導，顯然您能夠在淨基礎上獲得更多。但指南中是否考慮了任何緩解因素？您是否考慮到庫存股的稀釋，並試圖了解前景中的變動因素？謝謝。

Yeah, at the midpoint, I mean, that’s the mitigating item that we mentioned. At the midpoint, we’re assuming a little bit less than [1p] of dilution from the treasury stock method. Obviously, we have no idea where the stock’s going to go, but we assumed a pretty healthy movement even from current levels to justify our guidance range. So we feel eminently comfortable we’ve been conservative on that front.

是的，在中間點，我的意思是，這就是我們提到的緩解因素。在中間點，我們假設庫存股方法的稀釋度略低於 [1p]。顯然，我們不知道股票的走向，但我們認為即使從當前水平來看，其走勢也相當健康，以證明我們的指導範圍是合理的。因此，我們非常放心，我們在這方面一直採取保守態度。

Michael Gorman, BTIG.

邁克爾·戈爾曼（Michael Gorman），BTIG。

Thanks. Good morning. I was wondering if you could just talk a little bit more about competition in the deal market. We’ve seen some new entrants, I would say, from nontraditional net lease investors. And I understand it’s a deep liquid market, but I’m just curious if you started to bump into any of these new buyers in the marketplace or kind of where you’re seeing them show up as you look at the deal pipeline and future transactions?

謝謝。早安.我想知道您是否可以再多談談交易市場的競爭。我想說，我們已經看到了一些來自非傳統淨租賃投資者的新進業者。我知道這是一個流動性很強的市場，但我只是好奇，您是否開始在市場上遇到這些新買家，或者當您查看交易管道和未來交易時，您看到他們出現在哪裡？

Thanks, Michael. Yeah, I mean, good question. We’ve certainly heard a lot about some new entrants are aware of some capital that has been deployed by a number of them, but we just really have not run into them at all on the acquisition side. And so I think most of the deals that we’re looking at are pretty small, bite sized deals or their relationship deals, where really the only negotiating, that we’re doing is with the tenant and them or the tenant and the seller trying to figure out where they’re willing part with properties.

謝謝，麥可。是的，我的意思是，這是個好問題。我們確實聽說過很多關於一些新進入者的消息，他們知道其中一些已經部署了一些資本，但我們在收購方面真的還沒有遇到他們。因此，我認為我們正在考慮的大多數交易都是非常小的、一口氣完成的交易或他們的關係交易，實際上我們所做的唯一談判是與租戶和他們或租戶和賣方進行談判，試圖弄清楚他們願意在哪裡出售房產。

And less so getting ourselves in bidding wars anytime we see those opportunities, we’ll come in and we’ll bid, but we’re not really interested in paying the top price for our deals. We want to get the best risk adjusted returns. And from our perspective, the largely marketed deals typically don’t really yield those opportunities too well.

每當我們看到這些機會時，我們就會參與競價，但我們並不是真的有興趣為交易支付最高價格。我們希望獲得最佳的風險調整報酬。從我們的角度來看，大量行銷的交易通常並不能很好地帶來這些機會。

And so I’m pretty aware of a number of the new entrants and I think their strategies don’t really line up too much with ours. So I’d be surprised if we run into them very frequently. I’m sure there will be a situation here or there where we see them, but I don’t think it’s going have much impact on our capital deployment.

因此，我非常了解一些新進入者，我認為他們的策略與我們的策略並不太一致。所以如果我們經常遇到它們我會感到驚訝。我確信我們會在這裡或那裡看到它們的情況，但我認為這不會對我們的資本配置產生太大影響。

That that's helpful thanks and maybe just one more on the competition side and maybe a little off the wall here, but given the supply demand dynamics in retail kind of broadly, are you starting -- are you coming across more user, bidders or owner occupants in the marketplace either looking at properties previously sold or is it more competition in terms of looking at the sale lease backs, that they want more control over their properties or to keep control of their properties in a supply constrained environment.

這很有幫助，謝謝。也許我只想再問一個關於競爭方面的問題，這個問題可能有點離題萬裡，但考慮到零售業的供需動態，您是否開始——您是否在市場上遇到更多的用戶、競標者或業主，他們要么在看以前售出的房產，要么在看售後回租方面競爭更激烈，他們想要對自己的房產有更多的控制權，或者在供應受限的環境中保持對自己的房產有更多的控制權，或者在供應有限的環境中保持對房產權。

Yeah, we have not really seen that, quite yet, but you know I think that's something to potentially keep an eye on.

是的，我們還沒有真正看到這一點，但你知道我認為這是值得關注的事情。

Linda Tsai, Jeffries.

琳達·蔡，杰弗里斯。

Hi. With your cost of capital having improved, what verticals or investments are you considering now that you couldn’t have before? And then how would investment spreads trend as a result?

你好。隨著資本成本的改善，您現在正在考慮哪些以前無法考慮的垂直產業或投資？那麼投資利差最終會呈現怎樣的趨勢呢？

Yeah, hi Linda. I don’t think really much is going to change at all in terms of what we’re looking at. I think if we were to deploy a lot more capital than we are right now, which isn’t necessarily the plan in the near term. I think that maybe the filter kind of opens up a little bit more, where we’re going to actuate a little bit more in pricing, which is why I think our [7.8] could come down to a [7.4], [7.5] if we want to deploy more capital. But I would expect for us to continue to buy similar types of products that we have over the past five years.

是的，你好，琳達。我認為就我們所看到的情況而言，實際上不會發生太大的改變。我認為，如果我們部署比現在更多的資本，這不一定是短期計畫。我認為過濾器可能會更加開放一些，我們會在定價方面採取更多行動，這就是為什麼我認為如果我們想要部署更多資本，我們的 [7.8] 可能會降至 [7.4]、[7.5]。但我希望我們能繼續購買過去五年來購買的類似類型的產品。

And then can you give us some general color on dynamics in the C store space? And does your pipeline have more of these?

那麼，您能否為我們介紹一下 C 儲存空間的動態呢？您的管道中還有更多這樣的管道嗎？

Yeah, I mean the C store space is an attractive industry for us. Obviously, you’ve got two large profit drivers coming from the guest pumps as well as the inside sales of the store. And we’ve got really good relationships in that space. I mean I know I’ve been doing convenience store deals for I guess going on 20 years.

是的，我的意思是 C 店空間對我們來說是一個很有吸引力的行業。顯然，您的兩大利潤驅動力來自客流泵以及商店內部銷售。我們在該領域建立了非常好的關係。我的意思是，我知道我已經做便利商店交易有 20 年了。

So pretty aware of who’s in the space and who the operators are as well as our team has done a great job of going out and finding some of these opportunities and building relationships with some operators. We’ll continue to look for those. We did a few of them this quarter. We may do one this quarter. But I think it’s less likely that we’re going do as many as we did in the second quarter as in the third.

因此，我們非常清楚誰在這個領域，誰是運營商，我們的團隊在尋找這些機會和與一些運營商建立關係方面做得很好。我們會繼續尋找這些。本季我們做了一些這樣的事。我們可能本季會做一次。但我認為，我們不太可能在第三季實現與第二季一樣多的舉措。

Just one last one for Dan. What do you expect G&A as a percentage of revenues to be at the end of next year similar to this year?

對丹來說這只是最後一個問題。您預計明年年底的一般及行政費用佔收入的百分比將與今年相似嗎？

No. I think it should continue to trend down, and I don’t have the model pulled up. I definitely think when you think about the year over year growth, it should slow dramatically next year versus this year, just given that we had a lot of hiring to do, this year and into the back half of last year. And that hiring pace should moderate considerably as we look out to 2026.

不。我認為它應該繼續呈下降趨勢，而且我還沒有拉出模型。我確實認為，當你考慮同比增長時，明年的成長速度應該會比今年大幅放緩，因為今年和去年下半年我們有大量招聘工作要做。展望 2026 年，招募速度應該會大幅放緩。

So I don’t know what that would impute necessarily on percentage basis, but it’s certainly going to be lower as a percentage of revenues next year. And again, the year over year growth rate should be down considerably versus what it was this year.

所以我不知道這在百分比基礎上必然會造成什麼影響，但作為明年收入的百分比，它肯定會更低。而且，與今年相比，年成長率應該會大幅下降。

Smedes Rose, Citi.

花旗銀行的斯梅德斯‧羅斯 (Smedes Rose)。

Hi, thanks, I just wanted to ask a quick question. You talked about 25 bps of rent loss embedded through the back half of the year. And so what is it now for the full year, I guess? I think you said last quarter was 75 bps baked into full year or?

嗨，謝謝，我只是想問一個簡單的問題。您談到了下半年 25 個基點的租金損失。那我猜現在全年的情況如何？我認為您說的是上個季度的 75 個基點已計入全年，是嗎？

Yeah. So last quarter, we said our guidance is based on 75 basis points of credit loss, I guess, for the full year. I mean, this 25 basis points of credit losses for the full year as well. It’s just that half a year is over. So

是的。因此，上個季度，我們表示，我們的指導是基於全年 75 個基點的信用損失。我的意思是，全年的信貸損失也達到了 25 個基點。轉眼間，半年就過去了。所以

Sorry. Okay. And then I just wanted to ask you, in your would it be your expectations to settle the much of this forward equity by year end? Or are you in a position now where you can start to kind of, get -- I guess, get ready with dry powder for next year as well?

對不起。好的。然後我只想問您，您是否期望在年底前結清大部分遠期股權？或者您現在可以開始為明年做好準備？

Yeah, I mean, we think about our leverage, always incorporate the forward. And so at 4.6 times today, we feel good about our leverage. We don’t really have to do anything to hit the high end of guidance at 1.75 times. It’s still end the year about 4.9 times. Obviously, we’ve shown a propensity to raise ATM equity in and around current levels.

是的，我的意思是，我們考慮我們的槓桿作用，始終將前瞻性納入其中。因此，今天的槓桿率為 4.6 倍，我們對我們的槓桿率感到滿意。我們實際上不需要做任何事情就可以達到 1.75 倍的指導上限。到年底仍約 4.9 倍。顯然，我們已經表現出在當前水準及其附近提高 ATM 權益的傾向。

But as far as settling the forward, it just really depends on if we raise additional capital. But the governor for us is kind of we need to maintain our debt to gross assets below 35%, to get the most attractive pricing off of our term loans and credit facility. So that’s really what governs our decision to pull down the equity. So I think you’ll probably see a little bit in the third and you should see a healthy chunk into the fourth quarter as well.

但就遠期結算而言，這實際上取決於我們是否籌集到額外的資金。但對我們來說，關鍵在於我們需要將債務與總資產的比率維持在 35% 以下，以便從定期貸款和信貸額度中獲得最具吸引力的定價。所以這才是我們決定降低股權的真正原因。所以我認為你可能會在第三季看到一些進展，在第四季也應該會看到很大的進展。

Daniel Guglielmo, Capital One Securities.

丹尼爾·古列爾莫（Daniel Guglielmo），Capital One Securities。

Hi, everyone. Thank you for taking my questions. I think it was in the 4Q call where we had talked about increased population growth in the Sunbelt and elevated opportunities there, but that you all don’t have a specific regional focus. Has there been any changes to that view or population trends you’re watching? And then are their regions that are more attractive in the second half?

大家好。感謝您回答我的問題。我認為在第四季度電話會議上我們討論了陽光地帶人口增長和那裡機會的增加，但你們並沒有關注特定的區域。您所關注的觀點或人口趨勢有什麼改變嗎？那麼下半年他們的地區會更有吸引力嗎？

Yeah, I would say it really hasn’t changed very much at all. You’re still kind of seeing population growth in the same areas, which is where retailers are going to continue to try to grow. So you’re going to see more opportunities there on the development side as well as the sale leaseback side. So I don’t think that has really changed much since fourth quarter last year.

是的，我想說它確實沒有太大變化。你仍然會看到相同地區的人口成長，而零售商將繼續嘗試在這些地區擴張。因此，您將在開發方面以及售後回租方面看到更多機會。所以我認為自去年第四季以來情況並沒有太大變化。

Okay. Thank you. Appreciate that. And then year over year average earnings has continued to increase across the country. When you talk with tenants and then think about your investments, has the spending and revenue been able to keep pace with some of, like, the labor and technology cost? or has it become an increased kind of topic of conversation when you’re talking with them and thinking to the investment?

好的。謝謝。非常感謝。全國範圍內的平均收入逐年持續成長。當您與租戶交談並考慮您的投資時，支出和收入是否能夠跟上勞動力和技術成本等方面的步伐？或者當您與他們交談並考慮投資時，它是否已成為一個重要的話題？

Yeah. No. I don’t know if it’s really been an increased topic of conversation with people. I mean, I there are challenges in some industries as it relates to labor costs. Yeah, more specifically, restaurants and some others where, just the labor line item has become more expensive, and it squeezed profitability a little bit. And then you’ve of course seen inflation last year kind of squeeze margins a little bit for some operators, but that’s really moderated quite a bit.

是的。不。我不知道這是否真的成為人們熱議的話題。我的意思是，某些行業面臨著與勞動成本相關的挑戰。是的，更具體地說，餐廳和其他一些地方，僅勞動力項目就變得更加昂貴，並且稍微擠壓了盈利能力。當然，您也看到去年的通貨膨脹對一些運營商的利潤率造成了一定程度的擠壓，但這種情況確實已經有所緩和。

And most of the retailers that we’re feeling and talking to maybe are kind of curious to see what happens with tariffs, but there really hasn’t been much of an impact from that yet. So most retailers that we’ve spoken to are feeling pretty bullish and are really more in growth mode than they were maybe this time last quarter.

我們所接觸和交談的大多數零售商可能都很好奇關稅會帶來什麼影響，但目前為止還沒有太大的影響。因此，我們採訪過的大多數零售商都感到十分樂觀，而且與上個季度相比，他們的成長模式確實更加積極。

Upal Rana, Key Bank Capital Markets.

Upal Rana，主要銀行資本市場。

Great. Thanks for taking my question. With the net investment activity accelerating and that you expect cap rates to trend lower to the mid 7% range, are there any changes you would point out on lease economics in terms of wall escalators or rents that we should expect?

偉大的。感謝您回答我的問題。隨著淨投資活動的加速，以及您預計資本化率將下降至 7% 左右，您是否會指出租賃經濟學在牆壁升降機或租金方面應該出現哪些變化？

No. I mean we had pretty attractive terms this quarter.

不。我的意思是我們本季的條款非常有吸引力。

Longer lease terms I think you can expect something similar to that maybe not quite as long in the third quarter. A lot of what we’re looking to do in the third quarter is going to be on the sale leaseback side. And even with the on the non-sale leaseback side, still pretty long lease terms with attractive rent escalators.

更長的租賃期限我認為你可以期待類似的情況，但第三季可能不會那麼長。我們希望在第三季進行的許多工作都將與售後回租有關。即使採用非售後回租方式，租賃期限仍相當長，且租金上漲幅度頗具吸引力。

It’s been a focus of ours over the past, call it, year, year and a half to really improve the internal growth in the portfolio and that continues to be the case. And I don’t think you’ll see much change as we kind of moderate closer to what we were doing previous to the second quarter [74], [75] But I think it’s feel pretty good about the opportunity set and what we’re looking at right now.

在過去的一年半裡，我們一直致力於真正提高投資組合的內部成長，而這種情況將會持續下去。而且我認為你不會看到太大的變化，因為我們的舉措已經比較接近第二季度之前的水平了[74], [75] 但我認為，我們對目前面臨的機會和所看到的情況感覺相當不錯。

Okay, great. That was helpful. And then I want to get your sense on what the appetite is from buyers for Walgreens today. You mentioned you wanted to sell maybe one or two by year end to reach that 3% ABR, but has demand for pharmacy changed in any way in recent months? I know you did sell that one CVS for 5.5% cap.

好的，太好了。這很有幫助。然後我想了解目前買家對 Walgreens 的興趣如何。您提到您希望在年底前銷售一兩件以達到 3% 的 ABR，但最近幾個月對藥品的需求有任何變化嗎？我知道你確實以 5.5% 的上限賣掉了那家 CVS。

Yeah, sure. I mean, I think CVS and Walgreens may be a little bit different. Walgreens, there just isn’t a lot of clarity to the buyer environment, as to what the balance sheet is going to look like with Walgreens. I think we’ve got some insight there that it’s not going to be a very leveraged balance sheet.

是的，當然。我的意思是，我認為 CVS 和 Walgreens 可能有點不同。對沃爾格林來說，買家環境以及沃爾格林的資產負債表將會是什麼樣子，目前還不太清楚。我認為我們已經了解到這不會是一份高槓桿的資產負債表。

So I think once that information comes out, which presumably the transaction should close in December, at least that’s the schedule today. In the leases, it does provide for financial reporting. So people will start to see that they didn’t lever up the balance sheet. And so I think that’s going to be a big positive come early next year when people start to see that.

所以我認為，一旦資訊公佈，交易大概會在 12 月完成，至少這是今天的安排。在租賃中，它確實規定了財務報告。因此人們會開始意識到他們並沒有提高資產負債表的槓桿率。所以我認為，當人們在明年年初開始看到這一點時，這將是一個巨大的積極因素。

So I think until that happens, it’s a little bit more challenging to sell those assets, which is why we’re pretty happy that we got out ahead of a lot of that, and really sold that exposure down to 3.5% as it sits today and only needing to sell 1% maybe 2% to get to below that 3%.

所以我認為，在此之前，出售這些資產會更具挑戰性，這就是為什麼我們很高興能夠提前出售這些資產，並將敞口降至目前的 3.5%，只需要出售 1% 或 2% 就可以降至 3% 以下。

And I think we should be able to have a little trouble finding a [1,031] buyer for one or two of the assets if that will get comfortable that they’re not closing the store and that it’s a good location. Fortunately, our rent at $19 a foot, well inside the average of what you see with Walgreens and CVS for that matter. So that allows other people to get comfortable that even if they ever do have to take the box back that they can replace the rents and there are other things that they can do with the assets.

我認為，如果買家確信他們不會關閉商店並且商店位置優越，那麼我們應該能夠為其中一兩項資產找到 [1,031] 個買家。幸運的是，我們的租金為每平方英尺 19 美元，遠低於 Walgreens 和 CVS 的平均水平。這樣，其他人就可以放心了，即使他們必須收回箱子，他們也可以補償租金，而且他們還可以用這些資產做其他事情。

There has been we’ve had a lot of inbound demand from retailers and developers interested in our sites. But the problem is we can’t get Walgreens out. So I guess maybe a good problem to have, but I think our downside protection on the Walgreens is actually pretty good with cheaper rents, and really good real estate. And so whether that be a convenience store operator or kind of the auto services sub stores or there’s just a lot of different operators that are interested in those stores at or above the rents that we currently have.

我們收到了大量來自零售商和開發商的來電，他們對我們的網站很感興趣。但問題是我們不能把沃爾格林趕出去。所以我想這可能是一個好問題，但我認為，由於租金更便宜，而且房地產確實很好，我們對沃​​爾格林的下行保護實際上相當不錯。因此，無論是便利商店經營者還是汽車服務分店，還是有許多不同的經營者對以我們目前的租金或更高的租金開設商店感興趣。

But I think we’re just likely going to only sell one or two more and likely just continue collecting rent from Walgreens over the next ten plus years. Okay, great. That was helpful.

但我認為我們很可能只會再賣出一兩家，並且很可能在未來十多年繼續從沃爾格林收取租金。好的，太好了。這很有幫助。

Jana Galan, Bank of America.

美國銀行的 Jana Galan。

Thank you. Good morning and congrats on a great quarter. Just a quick one. I’m looking at the 1.2% of ABR expiring in 2026, and granted it’s very small. But can you remind us of how early renewal discussions start and when do you typically get notice of a tenant’s decision?

謝謝。早安，恭喜您本季取得優異成績。只是快速的一次。我正在考慮 2026 年到期的 1.2% 的 ABR，並且認為它非常小。但是您能否提醒我們提前續約討論是如何開始的，以及您通常何時會收到租戶決定的通知？

Yeah. I mean, each lease is a little bit different, but, typically, it’s about six months at a time that you’ll have you’ll they’ll have to tell you whether they’re leaving or or staying. But, you know, we’re somewhat proactive, especially if we already have a reason to be talking to a tenant about other locations. We try to loop those conversations in. Typically, not a great idea to reach out to tenants a year or two out without having another reason to talk to them.

是的。我的意思是，每個租約都有點不同，但通常來說，每次租約大約為六個月，他們必須告訴你他們是離開還是留下來。但是，你知道，我們在某種程度上是積極主動的，特別是當我們已經有理由與租戶談論其他地點時。我們嘗試將這些對話循環。通常來說，如果沒有其他理由，在一兩年後才聯絡租戶並不是一個好主意。

Otherwise, you start to lose some leverage in that negotiation if there is one. But yeah, mean, we feel very comfortable with what’s expiring in 2026. We think we’ll have very close to, if not all of those renew at their option rent.

否則，如果有談判籌碼的話，你就會開始失去一些籌碼。但是，是的，我們對 2026 年到期的東西感到非常滿意。我們認為，即使不是全部，我們也將有非常接近的租戶選擇續租。

There are no further questions at this time. I would like to turn the floor back over to Mark Manheimer for closing comments.

目前沒有其他問題。我想把發言權交還給馬克曼海默 (Mark Manheimer) 來做最後評論。

Well thanks everybody for your interest, on the call today and in the company and we look forward to continuing the dialogue here in the in the near future.

好的，感謝大家對今天的電話會議和公司的關注，我們期待在不久的將來繼續對話。

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

今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。