Realty Income Corp (O) 2022 Q3 法說會逐字稿

Good day and welcome to Realty Income Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Ms. Andrea Behr, Corporate Communications Manager. Please go ahead.

美好的一天，歡迎參加 Realty Income 2022 年第三季度收益電話會議。 （操作員說明）請注意，此事件正在記錄中。我現在想將會議轉交給企業傳播經理 Andrea Behr 女士。請繼續。

Thank you all for joining us today for Realty Income's third quarter operating results conference call. Discussing our results will be Sumit Roy, President and Chief Executive Officer; Christie Kelly, Executive Vice President, Chief Financial Officer and Treasurer; and Jonathan Pong, Senior Vice President, Head of Corporate Finance.

感謝大家今天加入我們參加 Realty Income 第三季度運營業績電話會議。總裁兼首席執行官 Sumit Roy 將討論我們的結果； Christie Kelly，執行副總裁、首席財務官兼財務主管；以及高級副總裁兼企業財務主管 Jonathan Pong。

During this conference call, we will make certain statements that may be considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in any forward-looking statements. We will disclose in greater detail the factors that may cause such differences in the company's Form 10-Q. (Operator Instructions)

在本次電話會議期間，我們將做出某些陳述，根據聯邦證券法可能被視為前瞻性陳述。公司的實際未來結果可能與任何前瞻性陳述中討論的事項有很大差異。我們將在公司的 10-Q 表格中更詳細地披露可能導致此類差異的因素。 （操作員說明）

I will now turn the call over to our CEO, Sumit Roy.

我現在將把電話轉給我們的首席執行官 Sumit Roy。

Thank you, Andrea. Welcome, everyone. At Realty Income, we pride ourselves in having a consistent and dependable business model. For 53 years as an operating company, we have persevered through a variety of macroeconomic climates, and our track record of stability, notably during periods of volatility, is particularly relevant during current times.

謝謝你，安德里亞。歡迎大家。在 Realty Income，我們以擁有一致且可靠的商業模式而自豪。 53 年來，作為一家運營公司，我們在各種宏觀經濟氣候中堅持不懈，我們的穩定性記錄，尤其是在波動時期，在當前時期尤為重要。

We sit here today well positioned and operating very well across all areas of our business. We are grateful for all of our team members who make the success possible.

我們今天坐在這裡，位置優越，在我們業務的所有領域都運作良好。我們感謝所有使成功成為可能的團隊成員。

To start off, we capitalized on opportunities to bolster our balance sheet in the third quarter, including raising over $2 billion of equity on the ATM, with approximately $700 million of proceeds received during the third quarter as well as over $1.3 billion remaining, subject to our settlement on a forward basis in alignment with our capital strategy. In addition, we issued $750 million of 10-year senior unsecured notes in October to further increase our liquidity.

首先，我們利用機會在第三季度加強我們的資產負債表，包括在 ATM 上籌集超過 20 億美元的股權，第三季度收到的收益約為 7 億美元，剩餘的收益超過 13 億美元，具體取決於我們根據我們的資本戰略在遠期結算。此外，我們在 10 月份發行了 7.5 億美元的 10 年期高級無抵押票據，以進一步增加我們的流動性。

Between cash and cash equivalents, our availability under our credit facility, our liquidity as of the end of the third quarter was over $2.5 billion, which, when combined with the $1.3 billion of our unsettled forward equity and approximately $744 million in net bond proceeds, equates to liquidity of approximately $4.6 billion had the forwards and net bond proceeds being received at quarter end.

在現金和現金等價物之間，我們在信貸額度下的可用性，截至第三季度末我們的流動性超過 25 億美元，再加上我們未結算的 13 億美元遠期股權和約 7.44 億美元的債券淨收益，如果在季度末收到遠期債券收益和淨債券收益，則相當於約 46 億美元的流動性。

Moving on to acquisitions. During the quarter, we acquired approximately $1.9 billion in high-quality real estate, bringing us to approximately $5.1 billion in acquisitions year-to-date. A significant portion of the properties purchased in Q3 were part of portfolio deals or large transactions. We believe these deals were accessible to us because of our size, scale, relationships, ability to close access to and cost of capital, together with our research and technology-driven analytics capabilities.

繼續收購。在本季度，我們收購了約 19 億美元的優質房地產，使我們今年迄今的收購額達到約 51 億美元。第三季度購買的大部分房產是投資組合交易或大宗交易的一部分。我們相信，由於我們的規模、規模、關係、接近獲取資金的能力和資本成本，以及我們的研究和技術驅動的分析能力，我們可以獲得這些交易。

For Realty Income, our competitive advantages allow us to design and execute on strategies that benefit all those we serve, including our clients. The pending $1.7 billion Encore Boston Harbor transaction, which we continue to expect to close this year, remains an example of this dynamic. Based on our current total portfolio annualized base rent, the transaction would comprise approximately 3% of our total portfolio annualized contractual rent once closed.

對於 Realty Income，我們的競爭優勢使我們能夠設計和執行有利於我們所服務的所有人（包括我們的客戶）的戰略。我們預計今年將完成的 17 億美元的 Encore Boston Harbor 交易仍然是這種動態的一個例子。根據我們目前的總投資組合年化基本租金，一旦完成，該交易將占我們總投資組合年化合同租金的約 3%。

Further leveraging our international capabilities, we made our advent into Italy last week, investing approximately EUR 165 million in 7 high-performing wholesale clubs operated by Metro AG in major Italian cities like Rome and Florence. Metro is a pan-European leader in the wholesale club industry and operates almost 700 stores across Europe. Metro is publicly listed and investment-grade rated and has continued to perform well during and since the pandemic. We are delighted to add them as a client and hope we will be able to add to this initial portfolio over time.

進一步利用我們的國際能力，我們上週進軍意大利，投資約 1.65 億歐元在 Metro AG 在羅馬和佛羅倫薩等意大利主要城市運營的 7 家高績效批發俱樂部。 Metro 是批發俱樂部行業的泛歐領導者，在歐洲經營著近 700 家門店。 Metro 已公開上市並獲得投資級評級，並且在大流行期間和之後繼續表現良好。我們很高興將他們添加為客戶，並希望隨著時間的推移我們能夠添加到這個初始投資組合中。

During the third quarter, we did experience cap rate expansion, registering a 6.1% cash cap rate on investments, which compares favorably to the 5.7% cap rate we realized our investments in the second quarter. This resulted in a third quarter investment spread of 165 basis points based on actual capital raised, which is higher than our year-to-date total of 161 basis points and above our historical average. As we move towards year-end, we continue to see cap rates push higher as capital costs increase. This is consistent with the historical correlation we've come to expect, which has tended to preserve investment spreads as the market adjusts.

在第三季度，我們確實經歷了上限利率擴張，投資的現金上限率為 6.1%，與我們在第二季度實現投資的 5.7% 的上限率相比是有利的。這導致基於實際籌集資金的第三季度投資利差為 165 個基點，高於我們年初至今的 161 個基點，也高於我們的歷史平均水平。隨著我們走向年底，隨著資本成本的增加，我們繼續看到上限利率推高。這與我們預期的歷史相關性一致，隨著市場的調整，這往往會保持投資利差。

Transaction flow remains strong, with sourcing volume totaling approximately $18 billion this quarter, bringing year-to-date sourcing volume approximately $78 billion. We remain selective as we have acquired approximately 6.5% of sourced volume year-to-date.

交易流依然強勁，本季度採購總額約為 180 億美元，今年迄今的採購總額約為 780 億美元。我們保持選擇性，因為我們今年迄今已獲得約 6.5% 的採購量。

The international market continues to be an important part of our strategy, and it remains an active component of our volume, representing approximately 33% of investment volume in the third quarter.

國際市場仍然是我們戰略的重要組成部分，它仍然是我們交易量的一個積極組成部分，約佔第三季度投資量的 33%。

Capital recycling continues to be a strong component of our funding strategy, which also has the dual purpose of culling noncore properties from the portfolio. During the third quarter, we sold 34 properties, generating net sale proceeds of $142 million at an unlevered IRR of 12.8%, illustrating the full cycle attractiveness of owning net lease real estate under long-term leases. We intend to continue to act opportunistically to dispose of assets at moments in time when we can obtain attractive risk-adjusted returns.

資本回收仍然是我們融資戰略的重要組成部分，該戰略還具有從投資組合中剔除非核心資產的雙重目的。在第三季度，我們出售了 34 處房產，產生了 1.42 億美元的淨銷售收益，無槓桿內部收益率為 12.8%，說明了在長期租賃下擁有淨租賃房地產的全週期吸引力。我們打算繼續採取機會主義行動，在我們能夠獲得具有吸引力的風險調整回報的時候處置資產。

In addition to the disposition of properties on our balance sheet, we also sold our interest in 7 properties owned in an industrial JV that we assumed as part of our VEREIT merger. The gross purchase price totaled $905 million at a low 4% cap rate. Our share of net sale proceeds was approximately $113.5 million.

除了在我們的資產負債表上處置房產外，我們還出售了我們在一家工業合資企業中擁有的 7 處房產的權益，我們假設這是我們 VEREIT 合併的一部分。總購買價格總計 9.05 億美元，上限為 4%。我們在淨銷售收益中的份額約為 1.135 億美元。

Our core portfolio continues to perform, and by and large, our clients have generally continued to perform very well despite the cyclical market changes and shifts in consumer behavior. A point to note, as previously publicly announced, one of our clients, Cineworld, commenced Chapter 11 bankruptcy in September. Despite being one of its largest landlords, Cineworld represented only 1.5% of our total portfolio annualized base rent as of Q3. We'll continue working closely with Cineworld as this process continues towards resolution.

我們的核心投資組合繼續表現出色，總的來說，儘管市場週期性變化和消費者行為發生變化，我們的客戶總體上仍然表現良好。需要注意的是，正如之前公開宣布的那樣，我們的客戶之一 Cineworld 於 9 月開始第 11 章破產保護。儘管 Cineworld 是其最大的房東之一，但截至第三季度，Cineworld 僅占我們總投資組合年化基本租金的 1.5%。隨著這一進程的不斷解決，我們將繼續與 Cineworld 密切合作。

For some color regarding theaters, for the third quarter 2022, we collected approximately 85% of the contractual rent across our theater portfolio as Cineworld Group plc was not yet required to pay rent for the month of September. For the month of October 2022, we have collected 100% of the contractual rent across our theater clients, including Cineworld.

對於某些與劇院有關的顏色，在 2022 年第三季度，我們在整個劇院組合中收取了約 85% 的合同租金，因為 Cineworld Group plc 尚未被要求支付 9 月份的租金。 2022 年 10 月，我們已向包括 Cineworld 在內的影院客戶收取了 100% 的合同租金。

For some specifics, our Cineworld portfolio consists of 41 properties, 17 of which are subject to a single master lease agreement, and 22 of which have been accounted for under cash basis accounting since the third quarter of 2020. Through September, we have recognized $23.5 million of cumulative reserves on these properties, representing primarily contractual rent and expense recoveries that have not been collected dating back to the beginning of the COVID-19 pandemic in 2020. These 22 properties on cash basis accounting currently account for approximately $1.6 million of monthly contractual base rent or 40% of our total exposure to Cineworld. Based on current public information and our internal analysis, we continue to believe our portfolio of Cineworld assets are generally comprised of the stronger performance in the operator's portfolio.

具體而言，我們的 Cineworld 投資組合包括 41 處房產，其中 17 處受單一主租賃協議的約束，其中 22 處自 2020 年第三季度以來已採用現金制會計核算。截至 9 月，我們已確認 23.5 美元百萬美元的這些房產的累積儲備金，主要代表可追溯到 2020 年 COVID-19 大流行開始時尚未收取的合同租金和費用回收。這 22 處現金基礎資產目前約佔每月合同的 160 萬美元基本租金或我們對 Cineworld 的總敞口的 40%。根據目前的公開信息和我們的內部分析，我們仍然認為我們的 Cineworld 資產組合通常由運營商組合中表現較好的公司組成。

Our locations are freestanding single-tenant assets typically with large land areas and close proximity to population centers, supporting potential conversion to residential, industrial or life science uses. We have received reverse inquiries from multifamily and industrial developers exploring opportunities on these sites. We believe there is alternative and adaptive reuse potential if Regal were to vacate any locations as part of bankruptcy.

我們的地點是獨立的單租戶資產，通常擁有大片土地並靠近人口中心，支持潛在的住宅、工業或生命科學用途轉換。我們收到了來自多戶和工業開發商的反向詢問，他們在這些網站上探索機會。我們認為，如果 Regal 作為破產的一部分騰出任何地點，則存在替代和適應性再利用的潛力。

Moving on to some of the most important key operational metrics delivering value that continue to demonstrate a consistent well-positioned real estate portfolio. At the end of the third quarter, our occupancy was 98.9%. In Q3, we re-leased 169 leases and achieved a rent recapture rate of 108.5%, bringing our year-to-date recapture rate to 106.7%. As we look forward, less than 4% of our contractual base rent comes due through the end of 2023, providing strong visibility into our near-term portfolio performance. At quarter end, approximately 43% of our portfolio's total annualized contractual rent was generated from investment-grade rated clients. Our properties leased to clients in our portfolio watch list represented less than 4% of our portfolio's annualized contractual rent.

繼續討論一些最重要的關鍵運營指標，這些指標可提供價值，這些指標繼續展示出始終如一的定位良好的房地產投資組合。在第三季度末，我們的入住率為 98.9%。在第三季度，我們重新出租了 169 份租約，實現了 108.5% 的租金回收率，使我們的年初至今回收率達到 106.7%。正如我們所期待的那樣，到 2023 年底到期的合同基本租金不到 4%，這為我們的近期投資組合表現提供了強大的可見性。在季度末，我們投資組合的年化合同租金總額中約有 43% 來自投資級客戶。我們向投資組合觀察名單中的客戶出租的物業僅占我們投資組合年度合同租金的不到 4%。

Lastly, our same-store rental revenue increased 1% during the quarter and 2.4% year-to-date, and we continue to expect full year same-store growth to be approximately 2%.

最後，本季度同店租金收入增長 1%，今年迄今增長 2.4%，我們繼續預計全年同店增長約為 2%。

At this time, I'll pass it over to Christie, who will further discuss results from the quarter.

在這個時候，我會把它交給克里斯蒂，他將進一步討論本季度的結果。

Thank you, Sumit. Put simply, it was another productive quarter for us. In the third quarter, our business generated $0.98 per share of AFFO, representing 7.7% year-over-year growth. Our net debt to annualized adjusted EBITDAre was 5.3x or 5.2x, giving effect to the annualization of net investment activity during the quarter. These ratios do not reflect the $1.3 billion in outstanding equity forwards we had at quarter end.

謝謝你，蘇米特。簡而言之，這對我們來說是另一個富有成效的季度。第三季度，我們的業務產生了每股 0.98 美元的 AFFO，同比增長 7.7%。我們的年化調整後 EBITDA 的淨債務為 5.3 倍或 5.2 倍，影響了本季度淨投資活動的年化。這些比率並未反映我們在季度末擁有的 13 億美元的未償股權遠期。

As Sumit previously mentioned, we were both active and prudent in our capital-raising efforts since the end of the second quarter.

正如 Sumit 之前提到的，自第二季度末以來，我們在籌資工作中既積極又謹慎。

In addition to raising over $2 billion during the quarter at an initial weighted average price of approximately $68 per share, subsequent to quarter end, we completed a $750 million bond transaction, the majority of which served as a synthetic euro offering to take advantage of favorable foreign exchange dynamics while also allowing us to return to the U.S. dollar public fixed income market, which we last accessed in 2020.

除了在本季度以每股約 68 美元的初始加權平均價格籌集超過 20 億美元外，在季度末之後，我們還完成了 7.5 億美元的債券交易，其中大部分作為合成歐元發行，以利用有利的外匯動態，同時也讓我們能夠重返美元公共固定收益市場，我們最後一次進入該市場是在 2020 年。

In conjunction with this offering, we executed a USD 600 million to euro 10-year cross-currency swap, resulting in the receipt of approximately $612 million in euro proceeds, an effective fixed rate euro-denominated semiannual yield to maturity of 4.7%. Additionally, giving effect to $500 million of interest rate hedges, which were terminated with the off-rating, we generated a $72 million cash settlement gain at pricing, which, when amortized over the 10-year tenure of the note, is expected to result in an effective semiannual yield to maturity of 3.93%.

在此次發行的同時，我們執行了 6 億美元兌歐元 10 年期交叉貨幣掉期，從而獲得了約 6.12 億美元的歐元收益，以歐元計價的有效固定利率半年到期收益率為 4.7%。此外，由於 5 億美元的利率對沖因評級下調而終止，我們在定價時產生了 7200 萬美元的現金結算收益，當在票據的 10 年期限內攤銷時，預計將導致有效半年到期收益率為 3.93%。

Financial flexibility has long been a hallmark of our strategy, and our ability to move between various financing markets given our international capital needs is a competitive advantage.

長期以來，財務靈活性一直是我們戰略的標誌，鑑於我們的國際資本需求，我們在各種融資市場之間移動的能力是一項競爭優勢。

As previously reported in the third quarter, we upsized our U.S. commercial paper program from $1 billion to $1.5 billion and established a euro commercial paper program with a capacity of $1.5 billion. The combined $3 billion commercial paper program, which is backstopped by our multicurrency $4.25 billion revolving credit facility, gives us the flexibility to efficiently match fund our short-term funding needs in various currencies at much lower rates than comparable U.S. facility borrowings.

正如之前在第三季度報告的那樣，我們將美國商業票據計劃從 10 億美元擴大到 15 億美元，並建立了一個容量為 15 億美元的歐元商業票據計劃。合併後的 30 億美元商業票據計劃得到了我們 42.5 億美元的多幣種循環信貸額度的支持，使我們能夠靈活地以遠低於美國同類貸款的利率有效地滿足各種貨幣的短期融資需求。

As we look forward, we have limited near-term refinancing risk as only $23 million of mortgage debt comes due through the end of 2023 and our next unsecured debt maturity is not until 2024. With continued stable and consistent results in the quarter, we tightened our AFFO guidance range by $0.06 to $3.87 to $3.94, maintaining the midpoint at a 9% year-over-year growth rate, consistent with what we initially provided a year ago.

展望未來，我們的近期再融資風險有限，因為到 2023 年底只有 2300 萬美元的抵押債務到期，而我們的下一個無抵押債務到期時間要到 2024 年。由於本季度業績持續穩定和一致，我們收緊了我們的 AFFO 指導範圍為 0.06 美元至 3.87 美元至 3.94 美元，將中點維持在 9% 的同比增長率，與我們一年前最初提供的一致。

As the monthly dividend company, Realty Income's dividend will remain sacrosanct to our mission. This is a testament to our confidence in the time-tested consistency of our business model supported by a conservative balance sheet and diverse real estate portfolio leased to clients that are leaders in their respective industries.

作為每月派息的公司，Realty Income 的派息對我們的使命來說是神聖不可侵犯的。這證明了我們對保守的資產負債表和租賃給各自行業領導者的客戶的多樣化房地產投資組合支持的業務模式經過時間考驗的一致性充滿信心。

In September, we increased the dividend for the 117th time and for the 100th consecutive quarter, representing a 5.1% increase compared to the dividend declared 1 year ago. We are proud of these accomplishments and the work our talented colleagues perform every day to help drive this consistent track record.

9 月，我們第 117 次和連續第 100 個季度增加了股息，與 1 年前宣布的股息相比增加了 5.1%。我們為這些成就以及我們才華橫溢的同事每天為幫助推動這一一致記錄所做的工作而感到自豪。

Earlier this week, we celebrated the 1-year anniversary of our VEREIT merger. We've grown together as one team over the last year, and I'm pleased that we remained on track to realize over $50 million in run rate annual cost synergies that we estimated when we announced the merger.

本週早些時候，我們慶祝了 VEREIT 合併一周年。去年，我們作為一個團隊共同成長，我很高興我們繼續按計劃實現超過 5000 萬美元的年度成本協同效應，這是我們在宣布合併時估計的。

And with that, I would like to pass the call back to Sumit.

有了這個，我想把電話轉回給 Sumit。

Thank you, Christie. Our strengths have been accentuated in this quarter's result. While we cannot control the macroeconomic forces that periodically introduce volatility in the capital markets, I am regularly reminded that the resiliency of this team and the inherent stability of our business model allows us to look to the future with confidence. I'm pleased that we are able to lean in to market conditions when it's advantageous to serve our shareholders, and I believe that the best is still ahead of us.

謝謝你，克里斯蒂。本季度的業績突出了我們的優勢。雖然我們無法控制週期性地引入資本市場波動的宏觀經濟力量，但我經常被提醒，這個團隊的彈性和我們商業模式的固有穩定性使我們能夠充滿信心地展望未來。我很高興我們能夠在有利於為股東服務的情況下順應市場狀況，我相信最好的情況還在前面。

At this time, we can open it up for questions. Operator?

這個時候，我們可以打開它來提問。操作員？

(Operator Instructions) First question comes from Brad Heffern, RBC Capital Markets.

（操作員說明）第一個問題來自 RBC 資本市場的 Brad Heffern。

Cap rates on acquisitions were up 50 basis points quarter-over-quarter. Looks like some of that's related to the mix of industrial and investment grade, but can you talk about how much of that was underlying market cap rates moving? And was there a particular goal to pursue higher cap rates to preserve accretion?

收購的上限利率環比上升 50 個基點。看起來其中一些與工業級和投資級的混合有關，但你能談談其中有多少是基礎市值的變動嗎？是否有一個特定的目標來追求更高的上限利率以保持增長？

It's more the former than the latter. We are definitely seeing movement in cap rates. If we were to compare it to what -- where the environment was at the beginning of the year, which is what I would say we saw over the last couple of years, and compare it to cap rates that we are seeing today and what we experienced in the third quarter, I would say retail cap rates have moved circa 100 basis points. And it's a story of basically 2 ends of the credit spectrum.

前者多於後者。我們肯定會看到上限利率的變化。如果我們將其與年初的環境進行比較，這就是我想說我們在過去幾年看到的情況，並將其與我們今天看到的上限利率以及我們看到的情況進行比較在第三季度的經歷中，我想說零售上限利率已經移動了大約 100 個基點。這基本上是一個信用範圍兩端的故事。

If you think about the high investment-grade grocery assets, those at the beginning of the year were trading in the low 4 cap rate range, and those have moved the most. I would say today, they are in the 5.5%, maybe even in the 5.6% ZIP code. So that's about 150 basis points. And then on the other end of the spectrum, it was the higher yielding cap rates that had compressed quite a bit over the last few years that also saw similar movement. But the stuff that was in between has seen movements circa of 100 basis points, and that's really what is starting to translate into actual realized cap rates that you noticed for the third quarter.

如果您考慮高投資級雜貨資產，那麼年初的交易價格處於低 4 上限利率範圍內，而這些資產的變動幅度最大。我今天要說的是，它們在 5.5%，甚至可能在 5.6% 的郵政編碼中。所以這大約是150個基點。然後在頻譜的另一端，在過去幾年中壓縮了相當多的較高收益率的上限利率也出現了類似的變化。但是介於兩者之間的東西已經看到了大約 100 個基點的變動，這確實開始轉化為您在第三季度注意到的實際實現的上限利率。

Having said all of that, things don't happen at the spur of the moment. I mean a lot of these transactions -- we started to have discussions with our potential clients about the movement that we were seeing in our cost of capital, which was quite brutal and quite immediate. And thanks to the relationships, thanks to our ability to close all of the things that I enumerated in my prepared remarks, some of the more institutional type clients were also experiencing similar dynamics, and were more than willing to adjust cap rates to continue to do business and continue to fund their respective businesses. And I think that's what you sort of saw translating to the 40 basis points of increased cap rate that we were able to realize in the third quarter. But it is a timing thing.

說了這麼多，事情不是一時興起的。我的意思是很多這樣的交易——我們開始與我們的潛在客戶討論我們在資本成本中看到的變化，這是非常殘酷和非常直接的。多虧了這種關係，多虧了我們能夠結束我在準備好的評論中列舉的所有事情，一些更多機構類型的客戶也經歷了類似的動態，並且非常願意調整上限利率以繼續做業務並繼續為各自的業務提供資金。我認為這就是你所看到的轉化為我們在第三季度能夠實現的 40 個基點的上限利率增加。但這是一個時間問題。

I just want to be very careful that depending on -- if, for instance, if the gaming asset in Boston, if that were to have closed in the third quarter, that's already been sort of -- it's a transaction that's going to have a 5.9% cap rate, that's going to sway the overall cap rate. So it really is a question of when did those transactions get under contract and what is the timing of close that's going to dictate what the quarter results are. But having said all of that, I think we are definitely seeing movement, and it is in the quantum that I described earlier.

我只是想非常小心，這取決於——例如，如果波士頓的遊戲資產，如果它在第三季度關閉，那已經是——這是一筆交易，將會有5.9% 的上限率，這將影響整體上限率。因此，真正的問題是這些交易何時簽訂合同以及何時結束，這將決定季度業績。但是說了這麼多，我認為我們肯定會看到運動，而且它是在我之前描述的量子中。

It's a similar story on the industrial side. I would say that industrial cap rates have also moved considerably, and this is something that we started seeing even in the early part of the year. I think in my first quarter comments, I had talked about maybe seeing a 25 to 50 basis point movement. This was on the heels of Amazon announcing that they are no longer going to be big takers of industrial assets. They accounted for about 20% of the volume over the last few years. That started to see some movement -- that resulted in some movement on the industrial side. And then that movement continued through the second quarter.

工業方面的情況也類似。我想說的是，工業上限率也發生了很大變化，這是我們甚至在今年年初就開始看到的情況。我認為在我的第一季度評論中，我曾談到可能會看到 25 到 50 個基點的變動。這是在亞馬遜宣布他們不再是工業資產的大獲取者之後。在過去的幾年裡，它們約佔總量的 20%。這開始出現一些變化——這導致了工業方面的一些變化。然後這種運動一直持續到第二季度。

And I'll say today, despite what we quoted in our joint venture that we sold in the low 4s, I would say similar assets that we were pursuing are in the 5.5 ZIP code today. So there's clearly movement. And the hope is that the movement will continue in the right direction over the next coming months. And our portfolio is a testament -- our portfolio as well as our pipeline is a testament to that.

今天我要說的是，儘管我們在合資企業中引用了我們以低 4s 出售的報價，但我想說我們今天追求的類似資產在 5.5 郵政編碼中。所以很明顯有動靜。希望在接下來的幾個月裡，這項運動將繼續朝著正確的方向發展。我們的投資組合就是證明——我們的投資組合以及我們的管道就是證明。

Okay. Appreciate the detailed answer. Christie, I was hoping you could walk through the puts and takes on the new guide. Obviously, you had headwinds from FX and from higher rates. I'm curious what the offsetting factors were they kept the midpoint the same.

好的。感謝詳細的回答。克里斯蒂，我希望你能完成新指南。顯然，您遇到了來自外彙和更高利率的不利因素。我很好奇他們保持中點不變的抵消因素是什麼。

I think, Brad, you captured the headwinds together with the strengthening U.S. dollar. I think in terms of where we see opportunity is, first, as it relates to the determination on our AFFO per share is the overall developments and as it relates to our clients that are on cash accounting. I just want to note that for Regal, we have no change associated with the status of Regal and in the midpoint of our guidance are expecting full collection.

我認為，布拉德，你在美元走強的同時抓住了逆風。我認為就我們看到的機會而言，首先，因為它與我們每股 AFFO 的決定有關，是整體發展，因為它與我們的現金會計客戶有關。我只想指出，對於 Regal，我們沒有與 Regal 的狀態相關的任何變化，並且在我們的指導中，我們期待完全收集。

A couple of other things is also just our access to the international borrowings, which are a nice tailwind, and you can see that demonstrated in what we were able to do with the euro commercial paper program. And as Sumit articulated, our relationships with clients, our ability to pivot in the marketplace, together with our strong pipeline and the timing of the Encore transaction, which could be a positive or a negative. Hope that helps, Brad.

其他幾件事也只是我們獲得國際借款，這是一個很好的順風，你可以看到我們能夠用歐元商業票據計劃做的事情。正如 Sumit 所闡述的，我們與客戶的關係、我們在市場中的主導能力，以及我們強大的管道和 Encore 交易的時機，這可能是積極的，也可能是消極的。希望有幫助，布拉德。

Next question will be from R.J. Milligan of Raymond James.

下一個問題將來自 R.J.雷蒙德·詹姆斯的米利根。

I'll start with my boiler plate question for the quarter and certainly appreciate the attractively priced capital you guys were able to source in 3Q, but I'm curious how you view your current weighted average cost of capital and what kind of spreads you've been able to achieve here quarter-to-date.

我將從本季度的樣板問題開始，當然感謝你們能夠在第三季度獲得的價格誘人的資本，但我很好奇你如何看待你當前的加權平均資本成本以及你的利差類型到目前為止，我們已經能夠在這裡實現。

Yes. So the spread we were able to achieve third quarter year-to-date was right around 161 basis points, and this is based on actual capital raised throughout the year. And for the quarter, it was closer to 165 basis points.

是的。因此，今年第三季度我們能夠實現的利差約為 161 個基點，這是基於全年籌集的實際資金。本季度接近 165 個基點。

And one of the things I'll point to is that in our investor deck, I believe it's Page 26, we do lay out precisely how we calculate our cost of capital. And there are basically 3 components to it, one of which is the free cash flow that we are generating as well as the cost of equity, loaded for the cost of raising that equity and our bond prices.

我要指出的一件事是，在我們的投資者手冊中，我相信這是第 26 頁，我們確實準確地列出了我們如何計算我們的資本成本。它基本上有 3 個組成部分，其中之一是我們產生的自由現金流以及股權成本，為提高股權和債券價格的成本而加載。

But there was a strange thing that played out in the third quarter, and I don't know if I've got this fact 100% right. But we reached our 52-week high as well as our 52-week low during the third quarter. That was the level of volatility that we experienced. And we will call it luck, call it Jonathan Pong doing his thing. We were able to raise a lot of our equity capital on a forward basis with an average price of $68 and that's $2 billion worth of equity, $700 million of which we obviously was able to -- we were able to close and settle at the end of the third quarter, and $1.3 billion of which we will settle at the end of the fourth quarter. And so that's the reason why I want to be very precise around the actual realized spread versus what traditionally has been a calculation of average WACC over a given period.

但是在第三節發生了一件奇怪的事情，我不知道我是否 100% 正確地理解了這個事實。但我們在第三季度達到了 52 周高點和 52 週低點。這就是我們所經歷的波動程度。我們稱其為運氣，稱其為 Jonathan Pong 做他的事。我們能夠以 68 美元的平均價格在遠期基礎上籌集大量股本，這是價值 20 億美元的股本，其中 7 億美元我們顯然能夠做到——我們最終能夠關閉並結算第三季度，其中 13 億美元我們將在第四季度末結算。這就是為什麼我想要非常精確地圍繞實際實現的點差而不是傳統上計算給定時期內的平均 WACC 的原因。

This is the first quarter where we felt like there was a massive diversion precisely driven by the volatility that I just spoke about. But yes, that's how we calculate our WACC.

這是第一季度，我們覺得發生了巨大的轉移，正是由我剛才談到的波動性驅動的。但是，是的，這就是我們計算 WACC 的方式。

That's helpful. And so given the fact that cap rates in general are starting to move higher, but probably not as quickly as the cost of debt, how are you thinking about acquisition volume as we move into 2023? Is it time to maybe tap the brakes, sort of keep the pace? Or do you think there's going to be more opportunities to potentially even accelerate the pace?

這很有幫助。因此，鑑於上限利率總體上開始走高，但可能沒有債務成本那麼快，隨著我們進入 2023 年，您如何看待收購量？是時候踩剎車，跟上節奏了嗎？還是您認為會有更多機會甚至可能加快步伐？

Yes. R.J., it's going to be a function of how quickly the cap rates adjust. Clearly, there are mechanisms available to us on the capital side and on the financing side that we are going to avail of, but that's limited in terms of what is the ultimate spread that we can realize. And we are being incredibly disciplined around making sure that the team is pivoting to hurdle rates that we need to achieve on the cap rate side in order to continue to maintain spreads that we feel like represents the right spread for the kind of risk that we are taking based on the acquisitions that we are pursuing.

是的。 RJ，這將取決於上限利率調整的速度。顯然，我們將利用資本方面和融資方面的機制，但就我們可以實現的最終價差而言，這是有限的。我們在確保團隊正在轉向我們需要在上限利率方面實現的障礙率方面非常自律，以繼續維持我們認為代表我們所面臨風險的正確價差的價差基於我們正在追求的收購。

And I think I mentioned this in the second quarter, but I'll say it again: I have been pleasantly surprised with how quickly cap rates have moved. And again, based on some of the transactions that we are seeing in our pipeline, we are very optimistic that we'll be able to continue to maintain the spreads that we have historically maintained. And we see that over the continuing next few quarters.

我想我在第二季度提到過這一點，但我會再說一遍：我對上限利率的變化速度感到驚喜。同樣，根據我們在管道中看到的一些交易，我們非常樂觀地認為我們將能夠繼續維持我們歷史上維持的價差。我們在接下來的幾個季度中看到了這一點。

But timing will be of the essence. Like I said, if there are certain transactions that we entered into, especially on the development side, that was -- that's 12 months ago, those are going to not be quite as accretive transactions that we are entering into today, which will potentially close in the fourth quarter, and some of which will close in the first quarter, that have spreads that are more in line with what our historical spreads have been. So timing is going to be of the essence in terms of what we report at the end of a given quarter.

但時機至關重要。就像我說的那樣，如果我們進行了某些交易，尤其是在開發方面，那就是 - 那是 12 個月前，那些將不會像我們今天進行的增值交易那樣，這可能會結束在第四季度，其中一些將在第一季度結束，其價差更符合我們的歷史價差。因此，就我們在特定季度末報告的內容而言，時間安排至關重要。

Next question will be from Greg McGinniss, Scotiabank.

下一個問題將來自 Scotiabank 的 Greg McGinniss。

Sumit, sourcing is still significant, but it's also slowed each quarter in 2022, even while potentially casting a wider net internationally. What are the drivers of that trend? And do you expect it to continue that way into Q4 in 2023? And how might that declining investment opportunities impact acquisition levels and cap rates?

蘇米特，採購仍然很重要，但在 2022 年每個季度都在放緩，即使可能在國際上撒下更廣泛的網絡。這種趨勢的驅動因素是什麼？您是否預計這種情況會持續到 2023 年第四季度？投資機會的減少會如何影響收購水平和上限利率？

Yes. It's a good question, Greg. And it goes back to having sticky sellers, sellers who haven't quite embraced the changing cost of capital environment who are hoping for this to have a shorter duration disruption and starting to recognize that given what the Fed is doing, given what they're seeing on the inflation side, that this may be a longer process than what they had anticipated. I think that is part of the reason why you saw a tailing off on the sourcing side.

是的。這是個好問題，格雷格。這可以追溯到有粘性的賣家，那些還沒有完全接受不斷變化的資本環境成本的賣家，他們希望這種中斷的持續時間更短，並開始認識到，鑑於美聯儲正在做的事情，考慮到他們正在做的事情從通脹方面來看，這可能是一個比他們預期的更長的過程。我認為這就是您看到採購方面出現下滑的部分原因。

We were averaging around $30 billion per quarter. Third quarter, I would still claim, was quite robust with $18 billion worth of sourcing, 1/3 of which was from the international market. And so on a relative basis, yes, there was a bit of a slowing down, and it's largely being driven by the time it takes for sellers to adjust to the new environment. And there, too, it really is a story of those that are institutional sellers, they are able to adjust to it a lot quicker than some of the noninstitutional, more private owners of real estate for whom it has taken and will take a little bit more time to adjust.

我們平均每季度約 300 億美元。我仍然認為，第三季度相當強勁，採購價值 180 億美元，其中 1/3 來自國際市場。所以在相對的基礎上，是的，有一點放緩，這在很大程度上是由賣家適應新環境所需的時間驅動的。而且，這確實是一個關於機構賣家的故事，他們能夠比一些非機構的、更私人的房地產所有者更快地適應它更多的時間來調整。

Great. That's fair. Then just going back to the portfolio deals or transactions that you mentioned in your opening remarks. Can you provide a little more detail on the size of some of those deals, asset types, and whether that's maybe trend that you expect us to move into, maybe that seller is just more willing to accept the current financing environment for what it is?

偉大的。這還算公平。然後回到你在開場白中提到的投資組合交易或交易。您能否提供更多關於其中一些交易的規模、資產類型的詳細信息，以及這是否可能是您希望我們進入的趨勢，也許賣方更願意接受當前的融資環境？

Yes. I think the way I'll answer that question is to say, in large portfolio deals, which tend to be owned by institutional owners, they're far more receptive to the changing cap rate environment and far more accepting of the changing cap rate environment. And so it will come as no surprise to you that over 70% of what we did were portfolio deals in the third quarter. It should also come as no surprise to you that some of the institutional owners of real estate were far more willing to enter into sale leaseback as an alternative source of raising capital, especially given their traditional sources of capital, which may have been the leverage finance market or the high-yield market and the disruption that they saw there. And so about 50% of what we did in the third quarter were largely -- were sale-leaseback transactions. And so I think that will give you a flavor for some of the transactions that we did.

是的。我想我回答這個問題的方式是說，在往往由機構所有者擁有的大型投資組合交易中，他們更容易接受不斷變化的上限利率環境，也更能接受不斷變化的上限利率環境.因此，我們所做的 70% 以上是第三季度的投資組合交易，這對您來說並不奇怪。一些房地產機構所有者更願意將售後回租作為籌集資金的替代來源，這也不足為奇，特別是考慮到他們的傳統資金來源，這可能是槓桿融資市場或高收益市場以及他們在那裡看到的破壞。因此，我們在第三季度所做的大約 50% 主要是售後租回交易。所以我認為這會讓你對我們所做的一些交易有所了解。

It was still mostly, I want to say, 94% was retail, and there was about 4%, 4.5% of industrial assets that we did, but largely driven by what we are seeing on the retail side.

我想說的是，94% 仍然是零售業，而我們所做的工業資產中大約有 4% 到 4.5%，但很大程度上是由我們在零售方面看到的情況驅動的。

Next question will be from Michael Goldsmith, UBS.

下一個問題將來自瑞銀的邁克爾戈德史密斯。

International acquisitions represent about 33%, maybe lighter than what we've been seeing. The opportunity set just larger in the U.S. now relative to Europe. Or are you seeing anything in Europe that you want to highlight in terms of pricing or sentiment and recognize that also comes at the time when you moved into Italy?

國際收購約佔 33%，可能比我們所看到的要少。與歐洲相比，現在美國的機會更大。或者您是否在歐洲看到了任何您想在定價或情緒方面強調的東西，並認識到這也發生在您搬到意大利的時候？

I'll tell you, Michael, I mean, we were doing north of 50% in the international markets in the first quarter. We did north of 50% in the second quarter. We are at 1/3 of the total volume in the third quarter. Again, it really is a function of the timing of close, et cetera.

我會告訴你，邁克爾，我的意思是，第一季度我們在國際市場上的表現超過了 50%。我們在第二季度的表現超過了 50%。我們在第三季度佔總量的 1/3。同樣，它確實是關閉時間等的函數。

Having said that, I will say that the sellers in the U.S. are far more accepting of the changing financing environment than perhaps in Europe. And Europe is -- by country, it's a smaller market. And so it does take a little bit longer for things to adjust.

話雖如此，我要說的是，美國的賣家比歐洲的賣家更能接受不斷變化的融資環境。歐洲是 - 按國家/地區劃分，它是一個較小的市場。因此，事情的調整確實需要更長的時間。

Having said all of that, we are finding very good opportunities in the U.K. And now with the advent into Italy, I believe that momentum will continue. Because for precisely some of the reasons that I think we touched on during the second quarter, the debt markets are very unsettled. It has a very high cost associated with it. And that's driving some of the transactions actually on both sides of the pond. But one of the additional dynamics that we are seeing play out in Europe is some of the pressures that some of the funds are feeling. And in order for them to raise the appropriate level of capital, monetizing real estate is creating opportunities for us.

說了這麼多，我們在英國找到了很好的機會。現在隨著意大利的出現，我相信這種勢頭將繼續下去。因為正是由於我認為我們在第二季度談到的一些原因，債務市場非常不穩定。與之相關的成本非常高。這實際上推動了池塘兩邊的一些交易。但我們在歐洲看到的其他動態之一是一些基金感受到的一些壓力。為了讓他們提高適當的資本水平，將房地產貨幣化正在為我們創造機會。

And so I wouldn't read too much into it. There is still a very, very healthy pipeline that we have within Realty Income. And the sourcing volumes continue to be, yes, lower than what we saw in the first half, but still very healthy.

所以我不會讀太多。我們在 Realty Income 中仍然有一個非常非常健康的管道。是的，採購量繼續低於我們在上半年看到的水平，但仍然非常健康。

And as a follow-up, grocery is in your top 10 industries. Kroger is one of your top 10 clients. Does consolidation in the grocery industry give you any pause or change your opinion about kind of the future of this sector and as a product type within your portfolio?

作為後續行動，雜貨是您的前 10 大行業。克羅格是您的十大客戶之一。雜貨行業的整合是否會讓您暫停或改變您對該行業未來的看法以及作為您投資組合中的一種產品類型？

Sure, Michael. Look, I mean, anytime you have consolidation, the question needs to be asked, who is doing the consolidation? If Kroger is going out there, and this is a publicly announced transaction with regards to Albertsons, Kroger is still BBB rated. S&P reaffirmed the rating, although they did put it on a negative outlook. And they're acquiring Albertsons, which is a BB-rated credit, still solid rated. But I don't necessarily see that as a bad thing. Now there are obviously a lot of other social issues that we have to also address and take into consideration. But from a pure credit standpoint, it's actually -- it's a stronger outcome for us that suddenly 30 basis points that we have of Albertsons that has a BB credit associated with it is now going to get enhanced to a BBB rating.

當然，邁克爾。聽著，我的意思是，只要你有整合，就需要問一個問題，誰在做整合？如果克羅格要走出去，這是一項關於艾伯森的公開宣布的交易，克羅格的評級仍為 BBB。標準普爾重申了評級，儘管他們確實將其展望為負面。他們正在收購艾伯森，這是一個 BB 級信用，仍然是可靠的評級。但我不一定認為這是一件壞事。現在顯然還有很多其他的社會問題我們也必須解決和考慮。但從純粹的信用角度來看，實際上——這對我們來說是一個更強大的結果，我們擁有的 30 個基點，與它相關的 BB 信用現在將被提高到 BBB 評級。

So from a purely credit perspective, that's not necessarily a bad outcome for us, but that obviously doesn't address a lot of other issues that should be addressed and, I think, is percolating through the markets today around the viability of this combination. But by and large, there isn't a standard answer that all consolidation is good. It really does depend on the specific situations.

因此，從純粹的信用角度來看，這對我們來說不一定是一個壞結果，但這顯然沒有解決許多其他應該解決的問題，而且我認為，今天的市場正在圍繞這種組合的可行性滲透。但總的來說，沒有一個標準的答案是所有的整合都是好的。這確實取決於具體情況。

Next, we have a question from Wes Golladay of Baird.

接下來，我們有一個來自 Baird 的 Wes Golladay 的問題。

Just a question on the hedging. A lot of the ForEx volatility and interest rate volatility, is that making it easier or harder for you to hedge cost effectively?

只是一個關於對沖的問題。很多外匯波動和利率波動，是讓您更容易還是更難有效地對沖成本？

Wes, it's Jonathan. Look, it's been a very volatile FX environment as we certainly saw in the third quarter. I wouldn't necessarily say that's been harder to hedge. I mean these are all very liquid currencies that we're looking to hedge going out very short term. And so from that dynamic, yes, it's difficult to understand where these rates might be going, but the mechanism itself, nothing has really changed.

韋斯，是喬納森。看，正如我們在第三季度看到的那樣，這是一個非常不穩定的外匯環境。我不一定會說這更難對沖。我的意思是這些都是流動性很強的貨幣，我們希望在短期內對沖它們。因此，從這種動態來看，是的，很難理解這些利率可能會走向何方，但機製本身並沒有真正改變。

On the hedging front, I would say that when you look out the next 12 months, we are around 50% hedged at this point on earnings. And we aspire to get to our hedging program where, hopefully, going forward, rates aren't the story -- FX rates aren't the story of any quarterly earnings. So rest assured, we're very mindful of that.

在對沖方面，我想說的是，當你展望未來 12 個月時，我們目前對收益進行了大約 50% 的對沖。我們渴望進入我們的對沖計劃，希望在未來，利率不再是故事——外匯匯率不是任何季度收益的故事。所以請放心，我們非常注意這一點。

Got it. And I want to touch upon Regal. It sounds like you're pretty optimistic under an adverse scenario for the cash basis tenants. So I guess question number one, do you overall expect a positive outcome here? And then question -- part 2 of the question was for the master lease asset. That's -- and all I have known typically is how we view it. In your history, is that typically the case where do these ever get negotiated for a modest haircut? I guess what should we brace for based on historical precedent?

知道了。我想談談富豪。聽起來您在現金基礎租戶的不利情況下相當樂觀。所以我想第一個問題，你總體上期望這裡有一個積極的結果嗎？然後是問題——問題的第 2 部分是針對主租賃資產的。那是——我所知道的通常是我們如何看待它。在你的歷史中，通常情況下，這些都是為了適度的理髮而談判的嗎？我想根據歷史先例，我們應該準備什麼？

So Wes, there isn't one single answer that can address the master lease question. It is very much jurisdictionally dependent depending on where the bankruptcy is playing out. And in this case, I think I believe it's in Texas. It's a function of how they're going to interpret the strength of the master lease. But yes, having a master lease certainly does accrue certain benefits to us, and it should be viewed as an all or nothing situation. But we can't guarantee that going forward. We'll see how it all plays out.

所以韋斯，沒有一個單一的答案可以解決主租賃問題。它在很大程度上取決於破產在哪裡進行。在這種情況下，我認為我相信它在德克薩斯州。這是他們如何解釋主租約強度的函數。但是，是的，擁有主租約確實會給我們帶來一定的好處，它應該被視為一個全有或全無的情況。但我們不能保證會繼續下去。我們將看看這一切如何發展。

With regards to Regal and the ultimate outcome, you read a fair amount of optimism into some of our prepared remarks and when we have answered questions directly. That is a true read. I'm not saying that Regal will continue to run 41 assets when they emerge from Chapter 11, but what I am telling you is the ultimate economic outcome on this portfolio, we feel very comfortable about. And a lot of it has largely been driven by unsolicited inbounds that we have been receiving, even on some of the assets that we recognized to be not very good performers and recognizing that the best use for these assets perhaps may not be a theater asset going forward, but something totally different. And when you start to look at where these are located, the amount of land, in some cases, north of 10 acres, creating a mixed use or a multifamily makes it tremendous amount of sense. And the value creation opportunities for us to partner with some of these developers can create a lot of value for us.

關於 Regal 和最終結果，當我們直接回答問題時，您從我們準備好的一些評論中讀到了相當多的樂觀情緒。那是真正的閱讀。我並不是說 Regal 在第 11 章中出現時將繼續經營 41 項資產，但我要告訴你的是這個投資組合的最終經濟結果，我們對此感到非常滿意。其中很多很大程度上是由我們收到的不請自來的入境推動的，即使是在我們認為表現不佳的一些資產上，並且認識到這些資產的最佳用途可能不是劇院資產前進，但完全不同。當您開始查看它們的位置時，土地的數量，在某些情況下，在 10 英畝以北，創建混合用途或多戶住宅非常有意義。我們與其中一些開發商合作的價值創造機會可以為我們創造很多價值。

Yes, it's going to take time, but we feel fairly optimistic that the ultimate economic outcome on this portfolio will be one that we will be very comfortable with.

是的，這需要時間，但我們相當樂觀地認為，這個投資組合的最終經濟結果將是我們非常滿意的結果。

Next question will be from Ronald Kamdem, Morgan Stanley.

下一個問題將來自摩根士丹利的 Ronald Kamdem。

Just a couple of quick ones. Just back to sort of the tenant health. You sort of talked about Regal, which was really good disclosure. But any sort of other tenants that are of material size, whether it's 50 basis points, 100 basis points, on the watch list that we should be thinking about? And how are you guys look and can you just update us on what the reserve for bad debt is looking like so far year-to-date?

只是幾個快速的。回到租戶的健康狀況。你談到了 Regal，這是非常好的披露。但是任何其他實質性的租戶，無論是 50 個基點還是 100 個基點，都在我們應該考慮的觀察名單上？你們看起來怎麼樣，能否向我們介紹一下年初至今的壞賬準備金情況？

Yes. I'll take the question around do we have more than 50 basis points or 60 basis points for any other clients outside of Regal, and the answer is no, we don't. Our total watch list is less than 4%. It's actually 3.9%. And we don't have any large clients on this watch list outside of Regal. Regal is the largest one. We do have some other clients on this, in the health and fitness industry, et cetera. But again, from an overall perspective, we feel pretty good about it.

是的。我會回答這個問題，我們是否為 Regal 以外的任何其他客戶提供超過 50 個基點或 60 個基點，答案是否定的，我們沒有。我們的總觀察名單不到 4%。實際上是3.9%。除了 Regal 之外，我們在這個觀察名單上沒有任何大客戶。富豪是最大的。我們在這方面確實有其他一些客戶，比如健康和健身行業等等。但同樣，從整體角度來看，我們對此感覺很好。

In terms of -- I'll have Christie answer the other part of your question.

就-- 我會讓克里斯蒂回答你問題的另一部分。

In terms of reserves, Ron, total reserves are $33 million. And just dovetailing with what Sumit said in regards to the watch list and what we've already made publicly available, it's really primarily a story around Regal and the reserves that we have on the books associated with Regal.

就儲備金而言，羅恩，總儲備金為 3300 萬美元。只是與 Sumit 關於觀察名單的說法以及我們已經公開提供的內容相吻合，這實際上主要是關於 Regal 的故事以及我們在與 Regal 相關的書籍中擁有的儲備。

Great. And if I could sneak in -- my second one was just, look, if you take a step back and you think about sort of the company, the balance sheet, when the rest of the capital markets are sort of challenged, it seems like this should be the environment where you guys can thrive, and I think you sort of mentioned some of that in your opening comments. But I guess my question is just going back to sort of the acquisition volumes and the cap rate, just trying to get a sense of how much sort of pricing power, how much can you guys actually ask for higher cap rates, right, thinking could this be 25, 50, 75 basis points cap rate higher given that you do have such sort of advantaged cost of capital when others are looking for it?

偉大的。如果我可以潛入——我的第二個只是，看，如果你退後一步，想想公司，資產負債表，當其他資本市場受到挑戰時，似乎這應該是你們可以茁壯成長的環境，我想你們在開場評論中提到了一些。但我想我的問題只是回到收購量和上限率，只是想了解有多少定價能力，你們實際上可以要求更高的上限率，對，思考可以考慮到當其他人正在尋找這樣的優勢資本成本時，這會高出 25、50、75 個基點的上限利率嗎？

Ron, I don't want to overstate the environment. You just need one other competitor to come in and undercut what the normal situation would dictate in terms of cap rates to continue to keep a lid on cap rates. Having said all of that, if you look at the trend lines, there is no doubt that cap rates are moving, and they're moving much faster than -- and I've said this before -- than what I expected.

羅恩，我不想誇大環境。你只需要另一個競爭對手進來並削弱正常情況在上限利率方面的要求，以繼續限制上限利率。說了這麼多，如果你看一下趨勢線，毫無疑問，上限利率正在移動，而且它們的移動速度比 - 我之前說過 - 比我預期的要快得多。

It is also true that clients with whom we have relationships, we've been able to enter into contracts with them where we've asked even from where we first started and didn't have a contract to when they came back and reengaged with us and said, look, the cost of capital environment has changed for us. This is what we'll be able to do. They're still chosen to work with us exclusively, and these tend to be larger transactions. So there is no doubt that having fewer competitors out there who have the cost of capital, to be able to transact that spreads that would be acceptable to their investors, creates an opportunity for us. And this is a relative gain.

確實，與我們有關係的客戶，我們已經能夠與他們簽訂合同，即使是從我們最初開始的地方並且沒有合同到他們回來並與我們重新接觸時我們詢問過並說，看，我們的資本環境成本已經發生了變化。這就是我們能夠做到的。他們仍然被選擇專門與我們合作，而且這些往往是更大的交易。因此，毫無疑問，擁有更少有資本成本的競爭對手，能夠交易投資者可以接受的價差，這為我們創造了機會。這是一個相對的收益。

We have been able to move cap rates, but I think it would be overstating if I were to tell you that everything that happens going forward, we are going to be the beneficiary of. That's not the case. But we will do better than our share. I think that, Ron, you can take away from what I'm saying.

我們已經能夠移動上限利率，但我認為如果我告訴你未來發生的一切，我們將成為受益者，那就太誇張了。事實並非如此。但我們會做得比我們的份額更好。我認為，羅恩，你可以忽略我所說的。

Next question will be from Harsh Hemnani of Green Street.

下一個問題將來自 Green Street 的 Harsh Hemnani。

Going back to the portfolio transactions piece, your peers have pointed out that there's a trade-off between acquisition volume in cap rates. You can always drive higher volume on cap rates and the [size]. But it seems like because of the ability to drive larger portfolio deals, you can drive both higher volumes than them at higher pricing. So I guess could you point out how much of -- how many basis points of pickup you can get on a portfolio transaction versus maybe a one-off single transaction deal? And how long you think it will take for these higher cap rates to show up in the single transaction market?

回到投資組合交易部分，您的同行指出，在上限利率的收購量之間存在權衡。您始終可以在上限率和 [大小] 上提高音量。但似乎由於能夠推動更大的投資組合交易，您可以以更高的價格推動比它們更高的交易量。所以我想你能指出在投資組合交易中可以獲得多少——與一次性單一交易交易相比，你可以獲得多少基點？您認為這些更高的上限利率需要多長時間才能出現在單一交易市場中？

Yes. Harsh, that's a very difficult question. But if you are forcing me to answer that question, I would say anywhere in the region of 20 to 30 basis points, 35 basis points. And if that -- if the transaction size continues to be bigger and bigger, you're going to start going beyond that is how you should think about it.

是的。苛刻，這是一個非常困難的問題。但如果你強迫我回答這個問題，我會說在 20 到 30 個基點、35 個基點之間的任何地方。如果那樣的話 - 如果交易規模繼續變得越來越大，那麼您將開始超越您應該考慮的方式。

There is a dearth in this particular environment of potential buyers being able to write large checks, and that is our single biggest advantage today, along with the fact that, obviously, on a relative basis, our cost of capital has held up. But it is going to be very much an asset-by-asset, portfolio-by-portfolio discussion in terms of what is that delta between the one-off market and the portfolio market.

在這種特殊的環境下，潛在買家缺乏能夠開出大額支票的能力，這是我們今天最大的優勢，而且很明顯，相對而言，我們的資本成本一直保持不變。但就一次性市場和投資組合市場之間的差異而言，這將是一個逐個資產、逐個投資組合的討論。

In terms of how long is it going to take, I'll tell you that a Chick-fil-A -- 15-year Chick-fil-A will still trade in the [4s] today. There is enough buyers -- private buyers who can write a check for $5 million or $4 million who don't necessarily need to rely on the debt markets in order to do so. And so it's a tough question to answer in terms of how quickly the one-off market is going to adjust.

至於需要多長時間，我會告訴你，福樂雞——15 年的福樂雞今天仍將在 [4s] 中交易。有足夠多的買家——可以開出 500 萬美元或 400 萬美元支票的私人買家，他們不一定需要依賴債務市場來做到這一點。因此，就一次性市場的調整速度而言，這是一個很難回答的問題。

There will be an adjustment, there's no doubt, because even a lot of the private buyers would lean on the debt markets to finance some of their asset purchase. But it's tough for me to -- I mean I saw this Chick-fil-A example literally a week ago, and I asked the team what is the ask and what do you think it's going to trade at. And the answer was [mid-4s].

毫無疑問，會有調整，因為即使是很多私人買家也會依靠債務市場為其購買部分資產提供資金。但對我來說很難——我的意思是我一周前看到了這個 Chick-fil-A 的例子，我問團隊有什麼要求，你認為它會以什麼交易。答案是 [mid-4s]。

And so how long will it take for that to adjust? Who knows? The good news here is it helps us on the disposition side. And if we have one-off assets that we feel like we can take advantage of this market, we'll certainly do so. It's not a big part of our business. But like I said, more than 70% of what we buy are portfolio deals. And so there, I think we are getting the kind of differential that it warrants. And so we continue to focus on that side of the business.

那麼調整需要多長時間？誰知道？這裡的好消息是它在處置方面對我們有幫助。如果我們擁有我們認為可以利用這個市場的一次性資產，我們肯定會這樣做。這不是我們業務的重要組成部分。但就像我說的，我們購買的 70% 以上是投資組合交易。所以在那裡，我認為我們正在得到它所保證的那種差異。因此，我們繼續專注於業務的這一方面。

And then just considering the timing of moving into Italy, you mentioned that cap rates in Europe haven't reacted as much as those in the U.S., and it feels like the economic outlook do might be slightly worse for Europe than it is in the U.S. Given that backdrop, what caused you to enter Italy today? And I guess, more importantly, what prompted the debt swap that was swapped into euros, which suggests that maybe you're expanding more into Europe?

然後只是考慮到進入意大利的時機，你提到歐洲的上限利率沒有美國的反應那麼大，感覺歐洲的經濟前景確實可能比美國略差。在這樣的背景下，是什麼讓你今天進入意大利？而且我想，更重要的是，是什麼促使了將債務互換轉換為歐元，這表明您可能正在更多地向歐洲擴張？

Well, certainly, a part of that swap was to help finance the transactions that we have in Europe, including the one that we did with Metro. Look, that's a fantastic transaction. We started having conversations around this transaction if I want to -- maybe at the beginning of this year, perhaps even late last year. And it's a very interesting geography, Italy is. It's the fourth largest GDP in Europe. It is one that we feel like we can find these types of transactions with investment-grade rated or highly rated operators executing very good businesses who are looking for real estate partners. And that's the reason why we find Italy to be very fascinating. The -- and we haven't disclosed the cap rates. But suffice it to say, it was a very healthy cap rate. And even in this environment, is allowing us to capture spreads that are very acceptable to us.

嗯，當然，這種互換的一部分是為了幫助我們在歐洲進行的交易，包括我們與 Metro 進行的交易。看，這是一筆了不起的交易。如果我願意，我們開始圍繞這筆交易進行對話——也許是在今年年初，甚至可能是去年年底。這是一個非常有趣的地理環境，意大利就是。它是歐洲第四大GDP。我們覺得我們可以找到這些類型的交易，與投資級或高評級的運營商執行非常好的業務，他們正在尋找房地產合作夥伴。這就是為什麼我們覺得意大利非常迷人的原因。 - 我們還沒有披露上限利率。但可以說，這是一個非常健康的上限率。即使在這種環境下，我們也能捕捉到我們可以接受的價差。

The point about Europe that I want you to take away is not so much that cap rates taking longer to adjust. It is adjusting. It will take longer. But to your point, I think the pain in Europe is going to be a lot longer than the pain that we are planning on experiencing here in the U.S. And therefore, it will create opportunities. And we want to be front in line to take advantage of those opportunities.

我希望你帶走的關於歐洲的一點並不是上限利率需要更長的時間來調整。它正在調整。這將需要更長的時間。但就你的觀點而言，我認為歐洲的痛苦將比我們計劃在美國經歷的痛苦要長得多。因此，它將創造機會。我們希望站在前列以利用這些機會。

And I think under Neil's tutelage, the team is very comfortable, continuing to cultivate the relationships that they have established and in some of the areas that we would like to grow our business. That work is already being -- is already underway. And so this is going to continue to be a very important area of growth for our business.

而且我認為在尼爾的指導下，團隊非常自在，繼續培養他們已經建立的關係以及我們希望發展業務的一些領域。這項工作已經在進行中。因此，這將繼續成為我們業務增長的一個非常重要的領域。

And I want to remind you, Harsh, when you think about when we first went into the U.K., this was in 2019, retail was not in favor. Brexit has dominated the conversation, and we were able to do deals that subsequent to us having done those deals, cap rates compressed to the tune of 70 basis points, 80 basis points, perhaps even more. And so we are going to be opportunistic. We are going to position ourselves and use our inherent competitive advantages to execute transactions where it makes sense. But yes, we will be very diligent and very selective. But we didn't enter into Europe to shy away when things got rough. We believe the exact opposite that it's going to be at times like this and what we believe will happen in Europe over the next 12 months that will create opportunities for us.

我想提醒你，Harsh，當你想到我們第一次進入英國時，那是在 2019 年，零售業並不受歡迎。英國退歐主導了談話，我們能夠在我們完成這些交易之後進行交易，上限利率壓縮到 70 個基點、80 個基點，甚至更多。所以我們會投機取巧。我們將定位自己並利用我們固有的競爭優勢在有意義的地方執行交易。但是，是的，我們會非常勤奮，非常有選擇性。但是當事情變得艱難時，我們進入歐洲並不是為了迴避。我們相信情況正好相反，它會在這樣的時候發生，我們相信未來 12 個月將在歐洲發生的事情將為我們創造機會。

Next question will be from Linda Tsai of Jefferies.

下一個問題將來自 Jefferies 的 Linda Tsai。

Just a point of clarification. So in terms of the $31 million and outstanding receivables from Regal, is that all factored into your reserve of $33 million?

只是澄清一點。那麼，就 Regal 的 3100 萬美元和未償應收賬款而言，這是否都計入了您的 3300 萬美元儲備金？

It's -- from the perspective of the reserves, Linda, we took reserves on Regal as we had communicated of $23 million. And there, another $30 million of outstanding receivables associated with Regal to clarify.

這是 - 從儲備金的角度來看，Linda，我們在 Regal 上獲得了 2300 萬美元的儲備金。此外，還有 3000 萬美元與 Regal 相關的未清應收賬款需要澄清。

Okay. But then your -- the reserves you have right now for just tenants on your watch list are $33 million?

好的。但是，您現在為觀察名單上的租戶提供的儲備金是 3300 萬美元？

In terms of the total, we have for the watch list is $33 million, of which $23 million is Regal. And the remainder, as you would understand, is primarily health and fitness.

就總數而言，我們的觀察名單是 3300 萬美元，其中 2300 萬美元是富豪。其餘的，如您所見，主要是健康和健身。

Okay. And then just in terms of the recapture rate that was very strong, the 108%, could you just talk about what's driving this overall? It's been strong pretty much all year.

好的。然後就非常高的重新捕獲率（108%）而言，您能談談總體上是什麼推動了這一點嗎？一年四季都很強勁。

Yes. Linda, I think it's a testament to the team. It's a testament to us controlling more assets for given operators. There is certainly a backdrop of -- switching costs have gotten much higher for a lot of our clients. One of the things that we would compete with is the ability for our clients to basically say I'm going to go and build a new asset down the road. And that's going to be a better outcome. But now given the inflationary environment, given the construction costs, the switching cost hurdles have certainly crept up. And the fact that we do have 11,700 assets, we tend to control a lot more of the assets for a given client. And so not talking about leverage, but we can have a much more holistic conversation with clients that not only take into account near-term resolutions, but midterm resolutions as well and come up with a win-win situation, and therefore, be able to get the kind of re-leasing spreads that we have.

是的。琳達，我認為這是對團隊的證明。這證明了我們為給定的運營商控制了更多的資產。肯定有一個背景——對於我們的許多客戶來說，轉換成本已經變得更高了。我們將與之競爭的一件事是，我們的客戶基本上可以說我將去建立一個新的資產。這將是一個更好的結果。但現在考慮到通脹環境，考慮到建設成本，轉換成本的障礙肯定已經爬升了。事實上，我們確實擁有 11,700 項資產，我們傾向於為給定客戶控制更多的資產。所以不談論槓桿，但我們可以與客戶進行更全面的對話，不僅考慮近期解決方案，還考慮中期解決方案，並提出雙贏局面，因此，能夠獲得我們擁有的那種再租賃價差。

Having said all of that, it is quite -- I'm very happy that we were able to do a 108%, but it is -- I want to view it as an outlier. But if you look at the history of the company, since we've been reporting this, we've basically been right around 100%, 101% net of re-leasing spreads. So this, on a proportion basis, is certainly higher, and I think it's a testament to the environment we find ourselves.

說了這麼多，這是相當 - 我很高興我們能夠做到 108%，但它是 - 我想將其視為一個異常值。但是，如果您查看公司的歷史，自從我們一直在報告這一點以來，我們基本上一直在 100% 左右，101% 的轉租利差淨值是正確的。因此，按比例計算，這肯定更高，我認為這證明了我們所處的環境。

Do you think this continues for next year?

你認為這種情況會持續到明年嗎？

I think near term, you can expect us to continue to be in this particular ZIP code. The one thing that I will say that we are looking into is especially in an environment like this, we will be a little bit more receptive to looking at clients. And look, this is an analysis that we do across the portfolio, what is the best economic outcome. Renewing with an existing client based on the 5% increase, engaging with an existing client that is asking for a 10% reduction from where it's closing and then looking at the alternative of selling the assets and putting the proceeds to use in the current cap rate environment. Once we go through that decision tree, and let's also throw in repositioning of the asset as a fourth variable, we decide what is the most favorable outcome.

我認為短期內，您可以期望我們繼續使用這個特定的郵政編碼。我要說的是，我們正在研究的一件事是，尤其是在這樣的環境中，我們會更容易接受觀察客戶。看，這是我們對投資組合所做的分析，最好的經濟結果是什麼。根據 5% 的增長與現有客戶續約，與要求從關閉時減少 10% 的現有客戶進行接觸，然後考慮出售資產並將所得款項用於當前上限利率的替代方案環境。一旦我們通過了那個決策樹，並且讓我們也將資產重新定位作為第四個變量，我們決定什麼是最有利的結果。

And so far, the outcome that -- for the last few years has been resulting in north of 103%, 104%, 105% of re-leasing spreads, but it is possible that it might revert back to 100% or 101% because it is more favorable for us to keep an existing client while taking a bit of a haircut. But over the next 6 to 8 months, I still believe that we'll be north of 100% in terms of recapture rate.

到目前為止，過去幾年的結果是導致再租賃價差超過 103%、104%、105%，但有可能恢復到 100% 或 101%，因為留住現有客戶的同時進行一些理髮對我們更有利。但在接下來的 6 到 8 個月內，我仍然相信我們的回收率將超過 100%。

Next question will be from Nick Joseph from Citi.

下一個問題將來自花旗的尼克約瑟夫。

Sumit, you talked about the volatility, obviously, in your shares, but also really across the space. And so at this point, there's some diverging multiples in cost of capital. So hoping to get your thoughts on M&A broadly within the sector and then your appetite for it.

Sumit，您顯然談到了股票的波動性，但也確實跨越了整個空間。所以在這一點上，資本成本有一些不同的倍數。因此，希望能在行業內廣泛地了解您對併購的想法，然後了解您對它的興趣。

Yes. Nick, if you can point to candidates who'd be willing to engage in conversations around M&A today, this can be a very interesting time to discuss that. But I suspect that a lot of the management team, Nick, would be very focused on trying to run their business, trying to make sure that they emerge from this particular economic environment stronger so that they can engage in M&A transactions.

是的。尼克，如果你能指出今天願意圍繞併購進行對話的候選人，那麼這可能是一個非常有趣的時間來討論這個問題。但我懷疑很多管理團隊，尼克，會非常專注於嘗試經營他們的業務，努力確保他們從這個特定的經濟環境中變得更強大，以便他們能夠參與併購交易。

But theoretically speaking, M&A is something that one should absolutely consider, especially if it's a 100% stock deal and you don't have an overreliance on the public markets on the debt side to help finance. And if your relative cost of capital is stronger, which, in our case, under most circumstances, it is, and that is something that would be very attractive to us. It's just -- it'll be difficult, and I'm just -- it's a hypothetical comment I'm making. It'd be difficult to see management teams of potential companies wanting to engage in that sort of discussion in this environment.

但從理論上講，併購是絕對應該考慮的事情，特別是如果這是一項 100% 的股票交易，並且您在債務方面沒有過度依賴公開市場來幫助融資。如果你的相對資本成本更高，在我們的情況下，在大多數情況下，它是，這對我們來說非常有吸引力。這只是 - 這會很困難，而且我只是 - 這是我正在做的假設性評論。在這種環境下，很難看到潛在公司的管理團隊願意參與這種討論。

Completely understand that it takes [2] there, but that's helpful. And then just -- I know we've talked a lot on cap rates. You called out the casino deal that is still expected to close later this year. I think you mentioned a 5.9 cap rate that was struck earlier. Where would that be struck today, do you think? How much cap rate expansion would you expect kind of on the casino cycle?

完全理解它需要 [2] 那裡，但這很有幫助。然後只是 - 我知道我們已經就上限利率進行了很多討論。您提出了仍有望在今年晚些時候完成的賭場交易。我想你提到了早些時候達成的 5.9 上限利率。你認為今天會發生在哪裡？您預計賭場週期會有多少上限利率擴張？

Yes. You tell me, Nick. You cover all the gaming companies. And what I'm seeing is that they've all gotten repriced. And I don't know if we did them the favor or what, but they're trading at levels that I don't know if there'll be a lot of movement from where we entered into the win -- the Encore Boston Harbor asset. But look, I still think that, that is a wonderful asset.

是的。你告訴我，尼克。你涵蓋了所有的遊戲公司。我所看到的是它們都被重新定價了。而且我不知道我們是否幫了他們的忙或什麼，但他們的交易水平我不知道是否會有很多運動從我們進入勝利的地方 - 安可波士頓港資產。但是，看，我仍然認為，這是一項了不起的資產。

We underwrote it about a year ago now -- well, not quite, almost a year ago, with a profile of about $210 million in EBITDA, and it is already performing at a $250 million EBITDA, and I still don't believe that it has fully stabilized, especially with gaming -- sports betting, sorry, being legalized.

我們大約在一年前就承保了它——嗯，不完全是，差不多一年前，EBITDA 約為 2.1 億美元，它的 EBITDA 已經達到 2.5 億美元，我仍然不相信它已經完全穩定下來，尤其是在遊戲方面——體育博彩，抱歉，正在合法化。

So I don't know if I would say to you, Nick, that 5.9 would be dramatically different today, but we haven't seen an asset like that yet. So difficult for me to opine on that.

所以我不知道我是否會對你說，尼克，今天的 5.9 將會有很大的不同，但我們還沒有看到這樣的資產。我很難對此發表意見。

And where do you think it closes?

你認為它在哪里關閉？

We are hopeful, and that's one of the things that we talked about on the earnings guidance. We are expecting to close in the fourth quarter. That remains our conviction. But really as to when in the fourth quarter remains a bit of a question mark, but we still believe that it will close in the fourth quarter. And I have a very high conviction on that front.

我們充滿希望，這是我們在收益指引中談到的事情之一。我們預計將在第四季度結束。這仍然是我們的信念。但真正到第四季度何時結束還有一個問號，但我們仍然相信它會在第四季度結束。我在這方面有很高的信念。

Next question will be from (inaudible).

下一個問題將來自（聽不清）。

So just a quick one for me. It sounds like you were surprised by how kind of receptive cap rate environment has been to interest rate changes. Have you seen that kind of same receptiveness to maybe higher escalators, particularly on retail transactions?

所以對我來說只是一個快速的。聽起來您對利率變化的接受上限利率環境如何感到驚訝。您是否看到過對可能更高的自動扶梯的同樣接受，尤其是在零售交易方面？

Yes, we have. It's still difficult here in the U.S. to get untethered or uncapped CPIs, especially given the environment that we are in, and retail tends to be a low-margin business, but there is far more receptivity to getting higher interest rate -- higher -- what...

是的我們有。在美國，要獲得不受限製或沒有上限的 CPI 仍然很困難，尤其是考慮到我們所處的環境，零售往往是一個低利潤的行業，但人們更容易接受更高的利率——更高——什麼...

Escalators.

自動扶梯。

Escalators, thank you -- higher escalators in our leases today than it was perhaps 12 months ago. The same discussion on escalators in Europe. It is a lot more easier for us to engage and get CPI-type adjustments. And in fact, the Metro transaction that we talked about has CPI escalators built into the lease. And so I think those are easier in Europe than it is here, but we are starting to see the seller being more willing to give us higher escalators than what we have traditionally seen in this space.

自動扶梯，謝謝——今天我們租用的自動扶梯比 12 個月前更高。歐洲的自動扶梯也有同樣的討論。我們更容易參與並獲得 CPI 類型的調整。事實上，我們談到的 Metro 交易在租約中內置了 CPI 自動扶梯。所以我認為這些在歐洲比在這裡更容易，但我們開始看到賣家更願意給我們提供比我們在這個領域傳統上看到的更高的自動扶梯。

In terms of the fixed escalators on kind of U.S. investments, particularly retail, any kind of brackets on how much they've increased maybe versus last year or even prepandemic?

就美國投資的固定自動扶梯，尤其是零售業而言，與去年甚至大流行前相比，它們增加了多少？

Yes. John again, it's going to be a function of the type of retail. The higher-yielding stuff is going to tend to have higher elevation, higher escalators. The investment-grade guys -- it's still going to be tough. Maybe they'll be willing to give you fixed bumps every 5 years, which perhaps they wouldn't have 12 months ago. But I mean it's difficult for me to quantify the exact amount of increase in this environment. What I can tell you is we are seeing increases.

是的。約翰再次，它將成為零售類型的函數。高產的東西往往會有更高的海拔，更高的自動扶梯。投資級的傢伙——這仍然會很艱難。也許他們願意每 5 年給你一次固定的顛簸，也許他們在 12 個月前不會有。但我的意思是我很難量化這種環境下的確切增長量。我可以告訴你的是，我們看到了增長。

(Operator Instructions) Next question will be from Chris Lucas, Capital One Securities.

（操作員說明）下一個問題將來自 Capital One Securities 的 Chris Lucas。

Sorry for the long call. Just 2 quick ones for me, Sumit, and you sort of talked a little bit about or actually frequently about the Encore transaction. The question I have is just are you just waiting for regulatory approval? And once that occurs, you can close immediately? Or is there some other timing issue related to the close?

很抱歉打了這麼長的電話。對我來說只有兩個快速的，Sumit，你有點談論或實際上經常談論 Encore 交易。我的問題是您只是在等待監管部門的批准嗎？而一旦發生這種情況，您可以立即關閉嗎？或者是否存在與收盤相關的其他時間問題？

That is it, Chris. It really is waiting on the regulators to give us a thumbs up. And once we have that, then we'll be in a position to close.

就是這樣，克里斯。它真的在等待監管機構給我們豎起大拇指。一旦我們有了這個，那麼我們就可以關閉了。

Okay. And then, Christie, just a quick one from me. The -- I guess the other adjustments was about $0.04 a share, which is huge. Not a lot of detail there. Can you sort of give me some color as to what that breakdown was? I know foreign exchange is a big one. I just don't know how much of it is.

好的。然後，克里斯蒂，只是我的一個簡短的。 - 我猜其他調整約為每股 0.04 美元，這是巨大的。那裡沒有太多細節。你能給我一些關於故障是什麼的顏色嗎？我知道外匯是一個大的。我只是不知道有多少。

Yes. The other adjustments was really related on the income statement to noncash-oriented translation loss of about $20 million.

是的。其他調整實際上與損益表有關，與約 2000 萬美元的非現金轉換損失有關。

Thank you. That concludes our question-and-answer session. Now I'd like to turn the call back over to Mr. Sumit Roy for closing remarks. Please go ahead.

謝謝你。我們的問答環節到此結束。現在，我想將電話轉回給 Sumit Roy 先生，以作閉幕詞。請繼續。

Thanks, Nick. Thank you all for joining us today. We're looking forward to ending 2022 strong and in seeing many of you at the NAREIT conference in 2 weeks. Good evening.

謝謝，尼克。感謝大家今天加入我們。我們期待著在 2022 年強勢結束，並期待在兩週後的 NAREIT 會議上見到你們中的許多人。晚上好。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。