Realty Income Corp (O) 2022 Q4 法說會逐字稿

Good day, and welcome to the Realty Income Fourth quarter 2022 Operating Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Julie Hasselwander, Senior Manager of Investor Relations at Realty Income. Please go ahead.

美好的一天，歡迎參加房地產收入 2022 年第四季度經營業績電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想把會議轉交給 Realty Income 投資者關係高級經理 Julie Hasselwander。請繼續。

Thank you all for joining us today for Realty Income's Fourth 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.

感謝大家今天參加 Realty Income 第四季度經營業績電話會議。討論我們的結果的將是總裁兼首席執行官 Sumit Roy； Christie Kelly，執行副總裁、首席財務官兼財務主管；高級副總裁兼企業融資主管 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.

在本次電話會議期間，我們將做出某些根據聯邦證券法可能被視為前瞻性陳述的陳述。公司未來的實際結果可能與任何前瞻性陳述中討論的事項存在重大差異。

We will disclose in greater detail the factors that may cause such differences in the company's Form 10-K. (Operator Instructions)

我們將在公司的 10-K 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, Julie. Welcome, everyone. 2022 was a year of significant growth for our company. I would like to express my gratitude and appreciation to the Realty Income team, who have worked tirelessly to execute on our strategic objectives and all of our investors for their support. The result of our team's collective efforts was reflected in our 2022 results, highlighted by AFFO per share growth of 9.2%, the highest annual growth rate for our company since 2013.

謝謝你，朱莉。歡迎大家。 2022 年是我們公司顯著增長的一年。我要對 Realty Income 團隊表示感謝和讚賞，他們孜孜不倦地執行我們的戰略目標，並感謝所有投資者的支持。我們團隊集體努力的結果體現在我們 2022 年的業績中，突出體現在 AFFO 每股增長 9.2%，這是我們公司自 2013 年以來的最高年增長率。

Additionally, we closed on approximately $9 billion of high-quality investments in 2022, including $3.9 billion in the fourth quarter, both the annual and fourth quarter investment volume set record highs for the company. Underpinning investment activity, transaction flow remains robust. We sourced $17 billion in the fourth quarter, bringing 2022 sourcing volume to $95 billion. Finally, we ended the year with occupancy of 99%, our highest occupancy rate at the end of a reporting period in over 20 years.

此外，我們在 2022 年完成了約 90 億美元的優質投資，其中第四季度為 39 億美元，全年和第四季度的投資額均創下公司歷史新高。支撐投資活動的交易流量依然強勁。我們在第四季度採購了 170 億美元，使 2022 年的採購量達到 950 億美元。最後，我們以 99% 的入住率結束了這一年，這是 20 多年來報告期末的最高入住率。

At Realty Income, we strive to provide stability and sustainable growth on behalf of our investors. And during periods of economic uncertainty like we find ourselves in today, the resilience demonstrated by our business model is important to highlight. During our 28-year history as a public company, our combined total return consisting of AFFO per share growth and dividend payments generated by our operations has not experienced a single year of downside volatility in the form of negative total returns.

在 Realty Income，我們努力代表我們的投資者提供穩定和可持續的增長。在我們今天所處的經濟不確定時期，我們的商業模式所展示的彈性非常重要。在我們作為一家上市公司的 28 年曆史中，我們的總回報包括 AFFO 每股增長和我們的運營產生的股息支付，沒有經歷過任何一年以總回報為負的形式出現的下行波動。

We believe we are in a very limited company among companies in the S&P 500 who can make that claim. This is a testament to the durability of our underlying cash flows, which is supported by a diversified portfolio of properties under long-term leases with clients that are leaders in their respective industries. We are constantly working to incubate new swim lanes for growth that offer attractive risk-adjusted returns.

我們相信，在標準普爾 500 指數成份股公司中，我們是一家非常有限的公司，能夠做出這樣的聲明。這證明了我們基礎現金流的持久性，這得到了與各自行業領先客戶長期租賃的多元化物業組合的支持。我們不斷努力孵化新的泳道以實現增長，提供有吸引力的風險調整後回報。

Since the start of 2022, we have expanded our (technical difficulty) New verticals to our platform. In October, we completed our debut transaction in Italy, acquiring 7 wholesale clubs operated by Metro AG, an investment-grade pan-European leader in the wholesale club industry. As we discussed in 2019, when we purchased our first property internationally, we are intentional about consolidating the fragmented commercial real estate market in Europe and Italy represents the third country abroad in which we now have a presence.

自 2022 年初以來，我們已將（技術難度）新垂直領域擴展到我們的平台。 10 月，我們完成了在意大利的首次交易，收購了 Metro AG 運營的 7 家批發俱樂部，Metro AG 是投資級泛歐俱樂部批發行業的領導者。正如我們在 2019 年討論的那樣，當我們在國際上購買第一處房產時，我們有意整合歐洲分散的商業房地產市場，而意大利是我們現在開展業務的第三個海外國家。

In December, we closed our $1.7 billion acquisition of Encore Boston Harbor Resort and Casino from Wynn Resorts, which represent our first transaction in the gaming industry. The property is a good example of our strategy to partner with best-in-class operators to acquire high-quality real estate. It was purchased at a discount to estimated replacement cost, is subject to a long triple net lease of 30 years with attractive annual rent escalators and is located on prime real estate with structural barriers to competition.

12 月，我們完成了以 17 億美元從 Wynn Resorts 手中收購 Encore Boston Harbor Resort and Casino 的交易，這是我們在博彩行業的第一筆交易。該物業是我們與一流運營商合作以獲得優質房地產戰略的一個很好的例子。它是以低於估計重置成本的折扣價購買的，有 30 年的長期三重淨租約，年租金自動扶梯很有吸引力，並且位於具有結構性競爭壁壘的優質房地產上。

As anticipated in August 2022, Massachusetts partially legalized professional and collegiate sports wagering for the state, unlocking an estimated $850 million of gross annual gaming revenue and further supporting the strategic importance of this asset.

正如 2022 年 8 月預期的那樣，馬薩諸塞州使該州的職業和大學體育博彩部分合法化，釋放了估計 8.5 億美元的年度博彩總收入，並進一步支持了該資產的戰略重要性。

In addition, we are pleased to announce a significant investment in what we are calling the consumer (inaudible) through the acquisition of a 224 property portfolio of dental practices during the fourth quarter. We expect this $520 million transaction to be just the start of additional investments we hope to make in a sector that we estimate has a total addressable market in the U.S. of nearly $1.8 trillion in real estate.

此外，我們很高興地宣布，通過在第四季度收購 224 家牙科診所的資產組合，我們對我們所謂的消費者（聽不清）進行了重大投資。我們預計這筆 5.2 億美元的交易只是我們希望在一個我們估計在美國擁有近 1.8 萬億美元房地產市場的行業進行額外投資的開始。

We believe the consumer-centric medical industry shares many of the same attributes of the nondiscretionary service-based uses that make up much of our portfolio, and that have proven resilient throughout our company's long history. These locations offer essential goods and services in and around the major thoroughfares in which our assets are (technical difficulty) For properties leased appliance in the consumer-centric medical industry is extremely fragmented, which creates consolidation opportunities, we believe, we are well suited to address.

我們相信，以消費者為中心的醫療行業與構成我們大部分產品組合的基於非自由裁量服務的用途具有許多相同的屬性，並且在我們公司的悠久歷史中已證明具有彈性。這些地點在我們資產所在的主要道路及其周圍提供基本商品和服務（技術難度）對於以消費者為中心的醫療行業中的物業租賃設備極為分散，我們相信這創造了整合機會，我們非常適合地址。

We believe this industry will continue to move towards a patient-centric model. The trend towards the outpatient model has been ongoing for decades, but we expect this shift to occur in an accelerated fashion post pandemic and will manifest in several ways that support our investment in the industry.

我們相信這個行業將繼續朝著以患者為中心的模式發展。門診模式的趨勢已經持續了幾十年，但我們預計這種轉變將在大流行後以加速的方式發生，並將以多種方式體現出來，以支持我們對該行業的投資。

First, the convenience of having care delivered closer to the patient will increase accessibility to the patient and reduce costs for all, including patients, payers and providers; second, existing clients of ours like Walgreens and CVS will continue to disrupt the status quo as they gain an increasing share of primary care over time. And third, we believe these industry dynamics will help lower the per capita spend on health care in the U.S. and help improve the quality of outcomes.

首先，在離患者更近的地方提供醫療服務的便利性將增加患者的可及性並降低包括患者、付款人和提供者在內的所有人的成本；其次，隨著時間的推移，我們的現有客戶（如 Walgreens 和 CVS）將繼續破壞現狀，因為他們在初級保健中的份額越來越大。第三，我們相信這些行業動態將有助於降低美國的人均醫療保健支出，並有助於提高結果質量。

It is also important to note that the adjacency and fungibility of these assets are a strong fit with our existing footprint from a real estate standpoint. As we underwrote this industry, we conducted a study analyzing over 30,000 variables and found that our portfolio had a 90% similarity with a data set of assets in this industry, and we look forward to increasing our exposure over time. Moving on. As we announced earlier this week, actually yesterday, we have entered into a strategic alliance with Plenty, an emerging leader in vertical farms operations to support the development of Plenty's indoor vertical farms.

同樣重要的是要注意，從房地產的角度來看，這些資產的相鄰性和可替代性非常適合我們現有的足跡。當我們承保這個行業時，我們進行了一項研究，分析了 30,000 多個變量，發現我們的投資組合與該行業的資產數據集有 90% 的相似性，我們期待隨著時間的推移增加我們的風險敞口。繼續。正如我們本週早些時候宣布的那樣，實際上是昨天，我們已經與垂直農場運營的新興領導者 Plenty 建立了戰略聯盟，以支持 Plenty 室內垂直農場的發展。

As the initial transaction of the alliance, we will fund the development of an indoor vertical farm asset near Richmond, Virginia, located adjacent to an Amazon distribution facility. Plenty's highly automated farming architecture efficiently harnesses scarce natural resources to generate production yields that it believes are up to 350x greater per acre than conventional farming.

作為聯盟的初始交易，我們將資助弗吉尼亞州里士滿附近的室內垂直農場資產的開發，該農場毗鄰亞馬遜配送設施。 Plenty 的高度自動化農業架構有效地利用稀缺的自然資源來產生產量，它認為每英畝的產量比傳統農業高出 350 倍。

We regard Plenty at the forefront of a structural evolution in crop production and growth plans. In summary, these distinct new verticals are representative of the growth opportunities we expect to unlock over time to create value for our shareholders.

我們認為 Plenty 處於作物生產和增長計劃結構演變的最前沿。總之，這些截然不同的新垂直領域代表了我們期望隨著時間的推移釋放的增長機會，從而為我們的股東創造價值。

Moving on to our portfolio. In addition to our record occupancy at year-end, we are proud to have delivered a rent recapture rate of 103.8% during the fourth quarter on properties renewed or re-leased, bringing our full year recapture rate to 105.9%.

繼續我們的投資組合。除了年末入住率創歷史新高外，我們很自豪在第四季度續租或轉租物業的租金回收率達到 103.8%，使我們全年的租金回收率達到 105.9%。

We attribute these results to our proactive asset management efforts, the underlying quality of our real estate and our rent levels in the portfolio relative to market. Despite our recent accomplishments, we are still working through the impact of the pending bankruptcy on our Cineworld exposure, which is 1.4% of our total portfolio annualized base rent. As a reminder, we own 41 assets, 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.

我們將這些結果歸因於我們積極的資產管理工作、我們房地產的潛在質量以及我們在投資組合中相對於市場的租金水平。儘管我們最近取得了成就，但我們仍在努力解決即將破產對我們 Cineworld 敞口的影響，這占我們投資組合年化基本租金總額的 1.4%。提醒一下，我們擁有 41 項資產，其中 17 項受單一主租賃協議的約束，其中 22 項自 2020 年第三季度以來一直採用收付實現制會計核算。

Following the announcement of the Cineworld bankruptcy in September 2022, we have collected 100% of contractual rent in each month from October 2022 through February 2023. As resolution on the bankruptcy has not yet materialized, we deemed it appropriate to revisit (technical difficulty) as we've had on our Cineworld receivables balance as we continue to evaluate the collectability of these amounts. As a result of this analysis and an abundance of caution, in the fourth quarter, we recorded $13.7 million of additional reserves associated with 9 Cineworld properties previously on accrual accounting.

在 Cineworld 於 2022 年 9 月宣布破產後，我們從 2022 年 10 月到 2023 年 2 月每月收取 100% 的合同租金。由於破產決議尚未具體化，我們認為重新審視（技術困難）是適當的，因為在我們繼續評估這些金額的可收回性時，我們的 Cineworld 應收賬款餘額已經增加。由於這一分析和高度謹慎，我們在第四季度記錄了與之前採用權責發生製會計的 9 個 Cineworld 物業相關的 1370 萬美元的額外儲備金。

In total, we now have $35.6 million of cumulative reserves on 31 properties that are on cash basis accounting, representing approximately 70% of our outstanding receivables from Cineworld. As a result of these changes, our unreserved receivable outstanding from Cineworld was $15.6 million at year-end, excluding straight-line rent receivables and including both deferred contractual rent and deferred expense recoveries.

總的來說，我們現在在 31 個採用收付實現制會計的物業上累積了 3560 萬美元的儲備金，約占我們來自 Cineworld 的未償應收賬款的 70%。由於這些變化，我們從 Cineworld 未保留的應收賬款在年底為 1560 萬美元，不包括直線應收租金，包括遞延合同租金和遞延費用回收。

The 31 properties on cash basis accounting currently account for approximately $2.6 million of monthly contractual base rent. Based on public information and our proprietary analysis, we continue to believe our portfolio of Cineworld assets is generally comprised of the stronger performance in the operators portfolio and we will provide an update on the outcome of our negotiations when appropriate.

目前，這 31 處以收付實現制計算的房產約佔每月合同基本租金的 260 萬美元。根據公開信息和我們的專有分析，我們仍然認為我們的 Cineworld 資產組合通常由運營商組合的更強勁表現組成，我們將在適當的時候提供談判結果的最新信息。

Finally, in January, we were pleased to welcome Greg Whyte as chief operating officer. The COO role has be vacant since 2018 when I assumed the role of CEO. And having known Greg for many years, I believe he has the experience, leadership qualities and business acumen to add immediate value to the management team. Most recently, Greg served as a senior adviser in the Real Estate and Lodging Investment Banking group at UBS Securities. I admire Greg's extensive knowledge of the commercial estate space and his thoughtfulness and integrity will mesh well with our culture at Realty Income.

最後，在一月份，我們很高興地歡迎 Greg Whyte 擔任首席運營官。自 2018 年我擔任 CEO 以來，COO 職位一直空缺。認識 Greg 多年，我相信他具備為管理團隊增加直接價值的經驗、領導才能和商業頭腦。最近，Greg 擔任瑞銀證券房地產和住宿投資銀行部的高級顧問。我欽佩 Greg 對商業地產領域的廣泛了解，他的體貼和正直將與我們在 Realty Income 的文化很好地融合。

I will now pass the call over to Christie, who will further discuss results from the quarter.

我現在將電話轉給科視，他將進一步討論本季度的結果。

Thank you, Sumit. Moving on to the balance sheet. As publicly disclosed, we've been quite active on the capital markets front. During the fourth quarter, we raised approximately (inaudible) billion of equity proceeds primarily through our ATM program and when including equity sold in the first quarter of 2023, and we currently have approximately $850 million of unsettled forward equity available for future issuance.

謝謝你，蘇米特。轉到資產負債表。正如公開披露的那樣，我們在資本市場方面一直非常活躍。在第四季度，我們主要通過我們的 ATM 計劃籌集了大約（聽不清）十億美元的股權收益，當包括 2023 年第一季度出售的股權時，我們目前有大約 8.5 億美元的未結算遠期股權可用於未來發行。

Throughout 2022, a we raised over $4.6 billion of gross equity proceeds at a weighted average price of $67.04, almost entirely through our ATM program. We ended the year with net debt to annualized adjusted EBITDAre in our targeted range at 5.5x or 5.3x giving effect to the annualization. (technical difficulty) Please note that these ratios do not reflect the outstanding equity forwards I referenced previously.

在整個 2022 年，我們以 67.04 美元的加權平均價格籌集了超過 46 億美元的總股本收益，幾乎全部通過我們的 ATM 計劃。年底時，我們的淨債務與年化調整後 EBITDAre 的比率在我們的目標範圍內，為 5.5 倍或 5.3 倍，從而實現了年化。 （技術難度）請注意，這些比率並未反映我之前提到的未償股權遠期。

Our capital market activities in the fourth quarter and in January were aimed at striking the right balance between terming out our short-term borrowings while providing us the flexibility to participate and a lower rate environment over the next 3 years. In addition to the 10-year $750 million senior unsecured bond issuance we priced in October at an effective yield of 3.93%.

我們在第四季度和 1 月份的資本市場活動旨在在終止短期借款、為我們提供參與靈活性和未來 3 年較低利率環境之間取得適當的平衡。除了 10 年期 7.5 億美元的高級無擔保債券發行，我們在 10 月份定價的有效收益率為 3.93%。

In January, we executed a dual tranche $1.1 billion senior unsecured bond offering. The offering consisted of $500 million 3-year notes callable after 1 year and $600 million of 7-year notes. In conjunction with the 3-year note, we capitalized on an attractive window to swap our interest payments from a fixed to variable rate structure, which we expect will replace a portion of our existing variable rate exposure in the capital stack.

1 月，我們進行了兩筆 11 億美元的高級無擔保債券發行。此次發行包括 5 億美元的 3 年期可在 1 年後贖回的票據和 6 億美元的 7 年期票據。結合 3 年期票據，我們利用一個有吸引力的窗口將我們的利息支付從固定利率結構轉換為可變利率結構，我們預計這將取代我們資本堆棧中現有的部分可變利率敞口。

After giving effect to the interest rate swap, we effectively locked in a variable rate spread of negative [3.5] basis points to SOFR, which represents estimated savings compared to our credit facility of over 85 basis points. It is important to note that the $500 million of variable rate exposure is expected to be in lieu of variable rate borrowings we would otherwise have outstanding on our revolver or on our commercial paper program.

在利率掉期生效後，我們有效地鎖定了 SOFR 負 [3.5] 個基點的可變利率利差，與我們超過 85 個基點的信貸安排相比，這代表了估計的節省。重要的是要注意，預計 5 億美元的可變利率風險敞口將代替我們在循環貸款或商業票據計劃中未償還的可變利率借款。

Lastly, in January, we closed on a new $1 billion multicurrency unsecured term loan with an initial tenor of 1 year and with 2 12-month extension options. In conjunction with closing of the term loan, we entered into a variable to fixed-rate swap resulting in an all-in effective yield of 5%. I would like to take a moment to say thank you to each of our lenders that participated. (technical difficulty) I would also like to make special mention of Jonathan Pong and Steve Bakke for their tireless efforts in leadership in delivering upon our capital market strategies.

最後，在 1 月份，我們完成了一項新的 10 億美元多幣種無擔保定期貸款，初始期限為 1 年，並有 2 個 12 個月的延期選擇權。結合定期貸款的結束，我們進行了可變利率到固定利率的掉期交易，最終實現了 5% 的有效收益率。我想花點時間對參與的每一位貸方表示感謝。 （技術難度）我還想特別提到 Jonathan Pong 和 Steve Bakke，他們在領導方面為實現我們的資本市場戰略做出了不懈努力。

Moving on to guidance for 2023. We are initiating AFFO per share guidance of $3.93 to $4.03, representing 1.5% growth at the midpoint of the earnings range and including our current dividend yield, a total operating return profile of circa 6%. So the annualization of higher interest rates has moderated our expected growth rate for 2023, there is much to be optimistic about. The investment pipeline remains active. We continue to source investment opportunities across our target markets at accretive cap rates in the mid-6 to mid-7 range.

轉向 2023 年的指導。我們正在啟動 AFFO 每股 3.93 美元至 4.03 美元的指導，代表收益範圍中點增長 1.5%，包括我們當前的股息收益率，總運營回報率約為 6%。因此，較高利率的年化已經緩和了我們對 2023 年的預期增長率，有很多值得樂觀的地方。投資渠道仍然活躍。我們繼續在我們的目標市場中以 6 至 7 中間範圍內的增值資本化率尋找投資機會。

As a result, we are introducing 2023 investment guidance of greater than $5 billion, and we will, of course, revisit this guidance each quarter as we gain incremental visibility to our transaction pipeline.

因此，我們將推出超過 50 億美元的 2023 年投資指導，當然，隨著我們對交易渠道的可見性不斷提高，我們每個季度都會重新審視該指導。

Finally, as the monthly dividend company, an increasing monthly dividend remains central to our business model. We were pleased to have announced a dividend increase of 2.4% last week which represents a 3.2% growth rate over the year ago period. We remain proud to be 1 of only 3 REITs in the S&P 500 Dividend Aristocrats Index for having a dividend every year for over 25 consecutive years.

最後，作為每月分紅的公司，增加每月分紅仍然是我們商業模式的核心。我們很高興上周宣布股息增加 2.4%，比去年同期增長 3.2%。我們仍然自豪地成為標準普爾 500 股息貴族指數中僅有的 3 家房地產投資信託基金之一，連續 25 年每年都派發股息。

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. In summary, our 2022 results demonstrated the capabilities of our platform and the competitive advantages afforded to us given our size, scale and access to capital. Over the long term, we believe stockholders will continue to benefit from the stability of our cash flows as we have proven with our track record of consistently positive total returns.

謝謝你，克里斯蒂。總而言之，我們 2022 年的業績證明了我們平台的能力以及我們的規模、規模和獲得資本的機會所帶來的競爭優勢。從長遠來看，我們相信股東將繼續受益於我們現金流的穩定性，正如我們一直保持正總回報的記錄所證明的那樣。

Finally, we believe there is significant runway for further growth in untapped industries, geographies (technical difficulty). We look forward to unlocking these opportunities over time. At this time, we can open it up for questions. Operator?

最後，我們相信在未開發的行業、地域（技術難度）方面有進一步增長的重要跑道。我們期待隨著時間的推移釋放這些機會。這個時候我們就可以打開提問了。操作員？

(Operator Instructions) The first question comes from Josh Dennerlein with Bank of America.

（操作員說明）第一個問題來自美國銀行的 Josh Dennerlein。

I wanted to ask about the Plenty indoor farm deal. I guess this is a new industry for you guys as well as it seems like a relatively new industry in general. I guess how did you guys get comfortable with underwriting the risk and outlook for indoor farming?

我想問一下關於 Plenty 室內農場的交易。我想這對你們來說是一個新行業，而且總體上看起來是一個相對較新的行業。我想你們是如何接受承保室內農業的風險和前景的？

So thanks for the question, Josh. Indoor farming, as part of the revolution that we are seeing in ag tech is something that we've been looking at for the better part of a year now. And specifically working with Plenty to try to understand their technology and how they're going to play in the ecosystem in terms of delivering crops in a much, much more efficient manner than traditional farming. If you look at ag tech and you look at vertical farming within this space, this is estimated to be a $50 billion industry over the next few years.

喬希，謝謝你的提問。室內農業，作為我們在農業技術中看到的革命的一部分，是我們一年中大部分時間一直在關注的事情。特別是與 Plenty 合作，試圖了解他們的技術，以及他們將如何在生態系統中發揮作用，以比傳統農業更有效的方式運送農作物。如果你看看農業科技，看看這個領域的垂直農業，估計在未來幾年內，這個產業將達到 500 億美元。

And Plenty has a very established position within this particular vertical. If you look at some of the sponsorship that they have, it's with companies like Walgreens, Albertsons, and Driscoll's. These are some of the largest grocers and providers of end product to grocery stores.

Plenty 在這個特定的垂直領域擁有非常穩固的地位。如果你看一下他們的一些贊助，就會發現是與 Walgreens、Albertsons 和 Driscoll's 等公司的合作。這些是一些最大的雜貨商和雜貨店最終產品供應商。

And Walmart has also invested directly in this company, along with (technical difficulty) from which they're going to be served the end product. So they have a lot of institutional sponsorship. We've gotten to know the company very well. And at the end of the day, it's a $42 million investment, very well-located industrial location happens to be very adjacent to an Amazon box. And we felt very comfortable based on the risk-adjusted return profile across various different scenarios that this was going to be a solid real estate investment.

沃爾瑪也直接投資了這家公司，以及（技術困難）他們將從中獲得最終產品。所以他們有很多機構贊助。我們已經非常了解這家公司。歸根結底，這是一項 4200 萬美元的投資，地理位置優越的工業區恰好與亞馬遜盒子非常相鄰。根據各種不同情況下風險調整後的回報情況，我們感到非常放心，這將是一項可靠的房地產投資。

Having said all of that, one of the phrase that was used internally, the cherry on the top was the fact that this aligns with our value system as well, the value of giving more than we take. We genuinely believe that ag tech and vertical farming, specifically is going to have a big role to play in a world that continues to be resource constrained, yield constrained, water constrained and continued deficiency of arable land going forward.

綜上所述，內部使用的短語之一，最重要的是，這也符合我們的價值體系，即付出多於索取的價值。我們真誠地相信，農業技術和垂直農業將在未來繼續受到資源限制、產量限制、水資源限制和耕地持續短缺的世界中發揮重要作用。

So for all of those reasons, we got very comfortable with Plenty as an operator, and more importantly, this particular vertical within ag tech as an industry to pursue.

因此，出於所有這些原因，我們對作為運營商的 Plenty 感到非常滿意，更重要的是，將農業技術中的這個特殊垂直行業作為一個行業來追求。

And then could you maybe elaborate a little bit on like the returns and the outlays, I know it's a $1 billion pipeline. Like is that something you expect to kind of put out the door all this year over the next 2, 3 -- and are you guys financing the equipment inside the warehouse? Just trying to get more color on the deal.

然後你能否詳細說明一下回報和支出，我知道這是一條 10 億美元的管道。就像你希望今年在接下來的 2、3 年推出的東西一樣 - 你們是否為倉庫內的設備提供資金？只是想在交易中獲得更多色彩。

Sure. So we are a real estate company, Josh, first and foremost. So that's all we are going to be investing in. Any equipment, all of the technology, et cetera, that is Plenty's responsibility. And so none of the $42 million will go towards that. The $1 billion is a number that we hope to be able to invest with this name, which if we do would mean that this technology has become a success, and more importantly, this its (technical difficulty) is positioned as one of the leaders vertical farming.

當然。因此，喬希，我們首先是一家房地產公司。所以這就是我們要投資的全部。任何設備，所有技術等等，都是 Plenty 的責任。因此，4200 萬美元都不會用於此。 10億美元是一個數字，我們希望能夠以這個名字進行投資，如果我們這樣做就意味著這項技術已經成功，更重要的是，它的（技術難度）被定位為垂直領域的領導者之一農業。

The investment itself has a much longer horizon, I would say, potentially the next 5 years. But keep in mind that any subsequent investment beyond the $42 million is on -- is at our option. And so obviously, we are going to approach this partnership from a purely real estate perspective.

投資本身的期限要長得多，我想說，可能是未來 5 年。但請記住，任何超過 4200 萬美元的後續投資都在我們的選擇範圍內。很明顯，我們將從純粹的房地產角度來處理這種夥伴關係。

But a perspective that we do believe needs to partner with these types of technologies in order for these technologies to be successful. But ultimately, the real estate needs to work for us on a risk-adjusted return basis. And if that does, we are happy to help a company like Plenty continue to establish itself as a front runner in this space.

但我們確實認為需要與這些類型的技術合作才能使這些技術取得成功。但最終，房地產需要在風險調整後的回報基礎上為我們服務。如果確實如此，我們很樂意幫助像 Plenty 這樣的公司繼續確立自己在該領域的領跑者地位。

Our next question comes from Anthony Paolone with JPMorgan.

我們的下一個問題來自摩根大通的 Anthony Paolone。

Great. Sumit, can you expand a bit on the consumer medical vertical that you talked about in terms of what are the types of service offerings that are most interesting to you right now? What do those boxes look like types of operators, so forth, yields, maybe?

偉大的。 Sumit，您能否就您目前最感興趣的服務產品類型對您談到的消費者醫療垂直領域進行一些擴展？這些盒子看起來像什麼類型的運算符，等等，也許是？

Yes. So when we're talking about consumer-centric medical, we're talking about stuff that we are already currently exposed to and adding a few more areas around the edges. So what are those areas? Like we are already exposed to drug stores, but drugstores of yesterday is not the drug store of tomorrow.

是的。因此，當我們談論以消費者為中心的醫療時，我們談論的是我們目前已經接觸到的東西，並在邊緣增加了一些領域。那麼這些領域是什麼？就像我們已經接觸過藥店，但昨天的藥店不是明天的藥店。

What you've probably heard in the press both Walgreens and CVS are investing very heavily to continue to take share of the physician -- the general physician services. And this is an incredibly fragmented area of the business, and they are investing multibillion dollars in their HealthHUB, MinuteClinic, et cetera, to -- be able to provide those services. And so that will continue to be an area, infusion centers, dialysis, eye care, dental care, pediatric care, behavioral facilities, urgent care, those are all concepts that have gained tremendous momentum, especially post pandemic, and we'll continue to gain momentum as a method of delivering health care to the end consumer.

你可能從媒體上聽說過，Walgreens 和 CVS 都在大力投資以繼續分享醫生——全科醫生服務。這是一個非常分散的業務領域，他們正在向他們的 HealthHUB、MinuteClinic 等投資數十億美元，以便能夠提供這些服務。因此，這將繼續成為一個領域，輸液中心、透析、眼科護理、牙科護理、兒科護理、行為設施、緊急護理，這些都是獲得巨大動力的概念，尤其是在大流行之後，我們將繼續作為向最終消費者提供醫療保健的一種方式獲得動力。

And the belief here is that the per capita health care cost that we in this country experience is essentially 2x the average of what an OECD company -- country experiences. And how do we continue to bring that down? And factors like convenience, being closer to the consumer, making sure that there is a relationship that can be established. So issues can be addressed on the front end rather than when it becomes an issue later on in life.

這裡的信念是，我們在這個國家經歷的人均醫療保健成本基本上是經合組織國家平均水平的 2 倍。我們如何繼續降低它？以及便利性、更貼近消費者、確保可以建立關係等因素。因此，可以在前端解決問題，而不是在以後的生活中成為問題。

I mean, today, if you look at the U.S. healthcare, only 30% of the population actually has a general physician that they can identify as their own. 70% don't have one, and this goes back to preventative care as being a precursor to reducing the cost of health care. And that is the business model that we have embraced that we believe will be -- in addition to the traditional ways of delivering health care will be a very important step in helping reduce cost.

我的意思是，今天，如果你看看美國的醫療保健，只有 30% 的人實際上擁有他們可以認定為自己的全科醫生。 70% 的人沒有，這可以追溯到預防保健，它是降低醫療保健成本的先決條件。這就是我們所接受的商業模式，我們相信，除了提供醫療保健的傳統方式之外，這將是幫助降低成本的非常重要的一步。

And so anything that sort of lends, any concept that lends itself to this will be open season for us. And what we have then looked at it is to try to analyze the actual boxes that these types of facilities are housed in. And what we found was that there is a 90% -- and I mentioned this in my prepared remarks, there's a 90% overlap with locations and boxes that we have in terms of size, in terms (technical difficulty) of et cetera. And there are a whole slew of variables that we looked at. And these assets that lend themselves to consumer-centric medical.

因此，任何借出的東西，任何適用於此的概念對我們來說都是開放的季節。然後我們看到的是嘗試分析這些類型的設施所在的實際盒子。我們發現有 90%——我在準備好的發言中提到了這一點，有 90與我們在大小、（技術難度）等方面的位置和框重疊的百分比。我們研究了一大堆變量。這些資產適用於以消費者為中心的醫療。

And so there are a lot of synergies. It is incredibly fragmented. It's a $1.8 trillion market today, expected to grow to $2 trillion by 2027. And it's all about increasing our total addressable market, using our core strength that we bring to the table to help consolidate the market and continue to sort of redefine what net lease investing is. And this is a perfect example...

因此有很多協同作用。它非常分散。今天這是一個 1.8 萬億美元的市場，預計到 2027 年將增長到 2 萬億美元。這一切都是為了增加我們的總潛在市場，利用我們帶來的核心力量來幫助鞏固市場並繼續重新定義淨租賃投資群島這是一個完美的例子......

Okay, am I still here, did I cut out?

好的，我還在這裡嗎，我剪了嗎？

You had -- if you were saying something post the end of my answer, we missed all of that. So you're back on.

你有 - 如果你在我的回答結束後說些什麼，我們錯過了所有這些。所以你回來了。

Okay. Sorry about that. And then my second question relates to yields and thinking about just near term, like the first and second quarter, I think you mentioned mid 6s to mid-7s. You did 6.1 in the fourth quarter, but just -- does it -- should we expect that it moves into that range here in the near term? Or is that a number that you might get to over the course of the year? Just trying to think through what you're seeing on the ground today?

好的。對於那個很抱歉。然後我的第二個問題與收益率和近期的思考有關，比如第一季度和第二季度，我想你提到了 6s 到 7s 中期。你在第四季度做了 6.1，但是——是嗎——我們應該期望它在短期內進入這個範圍嗎？還是您在一年中可能會達到這個數字？只是想想想你今天在實地看到的東西？

Yes, Tony. We actually put out some numbers on January 9, we put out, I think, a pro sup when we were offering the unsecured bonds, where we shared the pipeline with you, and then the pipeline included transactions under contract and accepted LOIs. And that was circa $1.3 billion worth of transactions, a 7.1% cash cap rate.

是的，托尼。實際上，我們在 1 月 9 日發布了一些數字，我認為，我們在提供無擔保債券時發布了一個專業支持，我們與您共享管道，然後管道包括合同下的交易和已接受的 LOI。那是價值約 13 億美元的交易，現金上限率為 7.1%。

So clearly, what we are talking about in terms of finally the cap rates moving is now manifesting itself in the pipeline that we have created or we had created until that point. And now more -- stepping back and more generally speaking, we have seen about 100 basis points plus/minus movement in cap rates, which we expected given that if you look at even 14 of the top 20 clients that we have, who have bonds that are trading, you look at what their spreads have done over the last, call it, 8 months, 9 months, those have gapped out about 100 basis points.

很明顯，我們所談論的最終上限利率的變化現在正在我們已經創建或我們已經創建到那時的管道中體現出來。現在更多——退一步說，更一般地說，我們已經看到上限利率上下波動了大約 100 個基點，這是我們預期的，因為如果你看一下我們擁有的前 20 大客戶中有 14 家持有債券那些正在交易的人，你看看他們的價差在過去 8 個月、9 個月裡的表現，它們已經跳空了大約 100 個基點。

So not that -- that symmetry is perfectly congruous, but it seems to have been at least in terms of how cap rates have played out. So you should be expecting to see those numbers being realized starting in the first quarter of 2023.

所以不是那樣——這種對稱性是完全一致的，但它似乎至少在資本化率如何發揮作用方面是一致的。因此，您應該期待看到這些數字從 2023 年第一季度開始實現。

Our next question comes from Greg McGinniss with Scotiabank.

我們的下一個問題來自豐業銀行的 Greg McGinniss。

Sumit, regarding M&A, is that more or less likely in this environment with these opportunities you're finding in other verticals and portfolio discounts like we saw in CIM [7.1%] cap? Or I mean, this paying a premium for public peer makes sense at this time?

Sumit，關於併購，在這種環境下，您在其他垂直行業和投資組合折扣中發現的這些機會，就像我們在 CIM [7.1%] 上限中看到的那樣，是否或多或少有可能？或者我的意思是，此時為公共同行支付溢價是否有意義？

Greg, that's a great question. Look, the -- if you look at the organic market and you've mentioned CIM and some of the other transactions that we've talked about already, there are very good transactions to be had at incredibly good risk-adjusted returns. Having said that, if there's an opportunity on the M&A front where you're able to realize similar economics, I don't see that as being mutually exclusive to be able to pursue both avenues of ultimately what we are charter to do, which is grow the business.

格雷格，這是一個很好的問題。看，如果你看有機市場並且你提到了 CIM 和我們已經討論過的其他一些交易，那麼有非常好的交易可以在令人難以置信的良好風險調整後回報中進行。話雖如此，如果在併購方面有機會實現類似的經濟效益，我認為這並不是相互排斥的，能夠追求我們最終要做的事情的兩條途徑，這是發展業務。

But it does have that backdrop to compete against as an opportunity cost when we are looking at M&A. But I don't see there being less M&A because of the environment we find ourselves in. It's just the question of are we going to have partners who are willing to see the big picture, we're willing to see that being part of a particular pro forma company is better for the outlook than not.

但當我們考慮併購時，它確實有這種背景可以作為機會成本進行競爭。但我不認為併購會因為我們所處的環境而減少。問題只是我們是否會有願意看到大局的合作夥伴，我們願意看到成為特定備考公司的前景總比沒有好。

I think those are the elements that need to sort of play out on the sellers' behalf, in order to perpetuate M&A transactions. But look, we are very happy going down the path that we have -- that we are going down. We did $9 billion of acquisitions last year. I would say that, that's probably -- if you look at companies in our sector that takes care of 80%, 90% of what companies are in terms of their total size. So we don't have to do M&A in order to continue to grow our business. (technical difficulty) self, and it makes sense for us to pursue that. We are not going to shy away from that either.

我認為這些是需要代表賣方發揮作用的要素，以便使併購交易永久化。但是看，我們很高興沿著我們的道路走下去——我們正在走下坡路。去年我們進行了 90 億美元的收購。我想說的是，這可能是——如果你看看我們這個行業的公司，就其總規模而言，它們負責 80%、90% 的公司。所以我們不必為了繼續發展我們的業務而進行併購。 （技術難度）自我，我們追求那個是有道理的。我們也不會迴避這一點。

Okay. That's reasonable. And just for a second question here. Have the higher cap rates started to bring some of the private and private equity buyers off the sidelines? Or is competition for assets still limited?

好的。這是合理的。這裡只是第二個問題。更高的資本化率是否開始讓一些私人和私募股權買家退出市場？還是資產競爭仍然有限？

They're certainly out there. The debt capital markets continues to be a constraint for them and their ability to react quickly in this market. I think certainty of close over the last 6 months has taken on a very different focus for potential buyers who, for a variety of reasons want to monetize their real estate. And somebody like us, especially when it comes to bigger deals that can have that certainty of close that does not rely on the debt capital markets to finance their deals, I think, has a distinct advantage which truth be told has played out in our favor over the last few months.

他們肯定在那裡。債務資本市場繼續限制他們以及他們在這個市場上快速反應的能力。我認為在過去的 6 個月中，對於出於各種原因想要通過其房地產獲利的潛在買家而言，確定性已經採取了截然不同的關注點。我認為，像我們這樣的人，尤其是當涉及到可以確定不依賴債務資本市場為其交易融資的更大交易時，具有明顯的優勢，說實話這對我們有利在過去的幾個月裡。

And so yes, private equity will obviously start to snip around given the higher cap rate environment. But I still don't think that their cost of capital is as competitive as ours and our ability to close still, I believe, stands out when potential sellers have to evaluate who to partner with.

所以是的，鑑於更高的資本化率環境，私人股本顯然會開始削減。但我仍然認為他們的資本成本不如我們的有競爭力，而且我相信，當潛在賣家必須評估與誰合作時，我們的關閉能力仍然很突出。

Our next question comes from Spenser Allaway with Green Street Advisors.

我們的下一個問題來自 Spenser Allaway 和 Green Street Advisors。

As it relates to cap rates, we've heard that the bid-ask spread has compressed faster in the U.S. versus Europe. Is that consistent with what you've seen? And do you think that will dictate how you deploy capital in '23 as you look across those geographies?

由於與資本化率相關，我們聽說美國與歐洲的買賣價差壓縮得更快。這和你看到的一致嗎？你認為這會決定你在 23 世紀如何在這些地區部署資本嗎？

Yes, that's a great question, Spenser. It doesn't have a perfect answer. If you look at the fourth quarter, we didn't do a lot of volume in Europe, circa $350 million, but they had a substantially higher cap rate. And the dynamic that played out there was essentially redemption issues that a lot of funds started to face towards the end of the year. And that sort of precipitated monetizing their real estate portfolios to help meet those redemption issues, which obviously created an opportunity for somebody like us who, again, does not rely on the debt capital markets, is able to do transactions fairly quickly.

是的，這是一個很好的問題，斯賓塞。它沒有一個完美的答案。如果你看一下第四季度，我們在歐洲的交易量並不大，大約 3.5 億美元，但他們的資本化率要高得多。那裡發生的動態基本上是許多基金在年底開始面臨的贖回問題。那種急於將他們的房地產投資組合貨幣化以幫助解決這些贖回問題，這顯然為像我們這樣的人創造了機會，他們再次不依賴債務資本市場，能夠相當快地進行交易。

And that's what resulted in that much higher cap rate. Because for the longest time in Europe, things were not moving. And that's the reason why the volume was only (technical difficulty) , essentially happened towards the later part of the year, happened very quickly because of the specific dynamics.

這就是導致更高資本化率的原因。因為在歐洲最長的時間裡，事情沒有發生變化。這就是為什麼交易量只是（技術難度）的原因，基本上是在今年下半年發生的，由於特定的動態而發生得非常快。

In the U.S., the trend has been slowly moving in this direction. And again, I think I mentioned this during our third quarter call, much faster than it had traditionally moved when you have a rising interest rate environment. And that's just because so much of the capital was pulled out of the market that it pushed, specially sellers who are inclined to monetize their real estate, continuing going down that path has allowed for the cap rates to move. Having said all of that, I do believe that where we find ourselves today is more of a bottoming out of that continued movement of expanding cap rates.

在美國，趨勢一直在朝著這個方向緩慢發展。再一次，我想我在我們第三季度的電話會議上提到了這一點，這比在利率上升環境下的傳統移動速度要快得多。這只是因為太多的資本被撤出市場，特別是那些傾向於將其房地產貨幣化的賣家，繼續沿著這條路走下去，使得資本化率發生了變化。說了這麼多，我確實相信我們今天所處的位置更多是在不斷擴大上限利率的過程中觸底反彈。

And it's settling in the 6.5%, 7% for some of the products. Of course, there are still products that's trading in the high 5s. There's still some one-off assets that's trading in the low 5s, maybe even in the high 4s. We, in fact, sold 1 of our QSR assets with a 4% in front of it in terms of cap rates. So those markets, we will ignore because those are the tail areas of the cap rate environment. But by and large, we have seen this movement in cap rates play out and it's now starting to (technical difficulty) mentioned.

對於某些產品，它穩定在 6.5%，7%。當然，仍有一些產品的交易價格處於前 5 位。仍有一些一次性資產的交易價格低於 5 美元，甚至可能高於 4 美元。事實上，就資本化率而言，我們以 4% 的比例出售了我們的 1 個 QSR 資產。因此，我們將忽略這些市場，因為它們是資本化率環境的尾部區域。但總的來說，我們已經看到資本化率的這種變化正在發揮作用，現在開始提到（技術困難）。

Okay. That was extremely helpful. And there have been headlines regarding a EUR 600 million to EUR 700 million portfolio being marketed for which O has been cited as a bidder. Is there anything you can share on the portfolio in terms of the general makeup or geography of those properties?

好的。這非常有幫助。並且有關於 6 億至 7 億歐元投資組合的頭條新聞，O 已被列為投標人。就這些物業的一般構成或地理位置而言，您可以在投資組合中分享什麼嗎？

Yes. I wonder what your sources are, Spencer. We really don't want to talk about transactions that we don't have under contract. So we may or may not be involved in the transaction that you've mentioned. We can't speak to anything, which is a hypothesis or just a rumor in the industry. Sorry about that.

是的。斯賓塞，我想知道你的消息來源是什麼。我們真的不想談論我們沒有根據合同進行的交易。因此，我們可能會或可能不會參與您提到的交易。我們無話可說，這是一種假設，或者只是業內的謠言。對於那個很抱歉。

Our next questioner is Haendel St. Juste with Mizuho.

我們的下一位提問者是瑞穗的 Haendel St. Juste。

Just curious on an updated perspective on your high grade philosophy here. I noticed again in the fourth quarter. The share was below your portfolio average even when you back out the Encore. In the past, I know you mentioned -- you have experience in acquiring higher-yielding assets and you're focused on the best risk-adjusted returns. But yet again, it's another quarter, your share of high-grade is far below the portfolio average. So maybe can you kind of give us some updated thinking on how we should think about that dynamic maybe going forward?

只是對這里關於您的高級哲學的最新觀點感到好奇。我在第四節再次注意到。即使您退出 Encore，該份額也低於您的投資組合平均水平。過去，我知道你提到過——你有收購高收益資產的經驗，而且你專注於最佳的風險調整後回報。但又是一個季度，您在高檔次中的份額遠低於投資組合的平均水平。那麼也許你能給我們一些關於我們應該如何考慮這種動態的最新想法嗎？

I think you've sort of answered the question that you asked, Haendel. Ultimately, this is a game of finding the best risk-adjusted returns, just like you said, and the fact that something tends to be investment grade is an output of that underwriting. It's not something that we seek out. And the counter to what you're seeing in the fourth quarter is a CIM transaction, for instance. Here, we have an $894 million transaction with 48% of the rent coming from investment grade.

我認為您已經回答了您提出的問題，Haendel。最終，就像你說的那樣，這是一個尋找最佳風險調整後回報的遊戲，而某些東西往往是投資級的事實是承銷的結果。這不是我們尋求的東西。例如，與您在第四季度看到的情況相反的是 CIM 交易。在這裡，我們有一筆 8.94 億美元的交易，其中 48% 的租金來自投資級別。

And we were able to get a healthy cap rate. So -- that number is going to continue to move. In fact, if you were to just look at the $3.9 billion we did in the fourth quarter and like you did exclude the Wynn transaction, -- and one of -- a couple of the larger portfolio transactions that we did, that particular investment-grade number would be right up in the high 40s. So that's going to fluctuate quarter-by-quarter. And what we need to get comfortable with is based on the risk that we are assuming and part of which is the credit risk are we being appropriately compensated. And if the answer comes back, yes, based on expected outcomes, then we are very comfortable continuing to pursue those transactions.

而且我們能夠獲得健康的資本化率。所以 - 這個數字將繼續移動。事實上，如果你只看我們在第四季度所做的 39 億美元，就像你確實排除了 Wynn 交易一樣， - 以及我們所做的幾筆較大的投資組合交易之一，即特定投資 -年級數將在 40 多歲左右。所以這將逐季度波動。我們需要適應的是基於我們承擔的風險，其中一部分是我們是否得到適當補償的信用風險。如果答案是肯定的，基於預期結果，那麼我們很樂意繼續進行這些交易。

That's helpful. I wanted to ask about Italy for a moment. Was the investing in the quarter basically the $350 million in Europe that you mentioned in one of your earlier remarks. And then maybe can you talk a bit about the relative risk profile, how you're underwriting there versus perhaps the rest of the group or the United States? And what's the, I guess, investment appetite for Italy?

這很有幫助。我想問一下意大利的情況。本季度的投資基本上是您在之前的評論中提到的歐洲 3.5 億美元嗎？然後也許你能談談相對風險狀況，你在那裡承保的方式與集團其他地區或美國相比如何？我想，意大利的投資胃口是什麼？

Look, Italy, as a country, definitely has more risk. But again, just like when we invested in the grocery business during the midst of Brexit, and we were very particular about the industry and more importantly, the operator within that industry that we were partnering with. If you look at Metro AG, it's an investment grade, very profitable, very well-established business, which is pan-European, I believe it's headquartered in Germany, and it controls 26% of the wholesale business in Italy.

看，意大利作為一個國家，肯定有更大的風險。但同樣，就像我們在英國退歐期間投資雜貨業務時一樣，我們非常關注這個行業，更重要的是，我們正在與之合作的行業內的運營商。如果你看看 Metro AG，它是一個投資級、非常有利可圖、非常成熟的業務，它是泛歐洲的，我相信它的總部位於德國，它控制著意大利 26% 的批發業務。

They have been established since the early 1970s in some of our locations. And so this is a business that we feel very comfortable with. Think of Metro as a combination of Costco and Cisco. Costco is very much retail-oriented and Cisco is much more professionally oriented. Both those businesses types of businesses is served out of Metro, and that's not going anywhere despite some of the additional country-specific risk that might exist in Italy. There are structural advantages as well that I'm not going to bore you with, which makes Italy a very interesting place to invest.

自 1970 年代初以來，它們就在我們的一些地點建立起來。因此，這是一項我們感到非常滿意的業務。將 Metro 視為 Costco 和 Cisco 的組合。 Costco 非常以零售為導向，而 Cisco 則更以專業為導向。這兩種業務類型的業務都在 Metro 之外提供服務，儘管意大利可能存在一些額外的特定於國家/地區的風險，但這種情況不會發生。還有結構性優勢，我不會讓你厭煩，這使意大利成為一個非常有趣的投資地。

But we are going to be very particular, just like we were in the U.K. and we were in Spain as to who we partner with, what are the concepts that we are going to be exposing ourselves to. And at the end of the day, what is the risk-adjusted return profile, look, taking into account some of these risks in some cases, additional risk that one takes going into these new countries. But we feel very good about the investment that we've made with Metro in Italy.

但是我們會非常特別，就像我們在英國和西班牙一樣，我們與誰合作，我們將要接觸的概念是什麼。歸根結底，風險調整後的回報情況是什麼，在某些情況下考慮其中一些風險，以及進入這些新國家所承擔的額外風險。但我們對在意大利對 Metro 進行的投資感到非常滿意。

And just if I may, the follow-up is, did you -- is it $350 million in the quarter and ballpark, what are the going in cap rates or (inaudible) of returns?

如果我可以的話，後續行動是，你 - 本季度和球場是否有 3.5 億美元，資本化率或（聽不清）回報率是多少？

No, it wasn't all of $350 million. $350 million was the total investment that we made in Europe. I believe the Metro was EUR 165 million of -- EUR 165 million was the Metro investment. Most of the other investments were in the U.K.

不，這不全是 3.5 億美元。 3.5 億美元是我們在歐洲的總投資。我相信地鐵是 1.65 億歐元——1.65 億歐元是地鐵投資。其他大部分投資都在英國。

Cap rate?

封頂率？

You've got the blended cap rate, I believe, in the supplemental. It was 100 basis points north of what we did in the U.S., 7.1% cap rate.

我相信，你在補充中有混合上限率。這比我們在美國所做的高出 100 個基點，上限率為 7.1%。

Our next question comes from Ronald Kamdem with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Ronald Kamdem。

Just -- can we just touch on tenant health really quickly. Obviously, occupancy is 99%. I see that the EBITDAre coverage is up slightly quarter-over-quarter. In the past, you sort of talked about sort of stress testing the tenant and feeling pretty good. Just outside of the movie theaters, just where is your head at in terms of potential recession and tenant health.

只是——我們能否真正快速地談談租戶的健康狀況。顯然，入住率是99%。我看到 EBITDAre 的覆蓋率環比略有上升。過去，您談到過對租戶進行壓力測試並且感覺很好。就在電影院之外，就潛在的經濟衰退和租戶健康而言，您的頭腦在哪裡。

That's a great question, Ron, especially entering into 2023 with so much uncertainty. Look, our biggest focus right now is on Cineworld and how that's going to -- what that resolution is going to look like. I do believe that whatever that outcome is, it's going to play out within the next few months. It's been in bankruptcy now for the better part of 4 months, and we have been in negotiations with them, and we'll leave it at that. Outside of that, if you look at our overall -- and again, this is something we share in the supplemental, our cash flow coverages, 4-Wall cash flow coverages, those have continued to trend up, largely a function of some of our existing clients continuing to outperform.

這是一個很好的問題，羅恩，尤其是在充滿不確定性的情況下進入 2023 年。看，我們現在最大的關注點是 Cineworld 以及它將如何發展——該決議將是什麼樣子。我確實相信，無論結果如何，它都會在接下來的幾個月內發揮作用。它現在已經破產了 4 個月的大部分時間，我們一直在與他們談判，我們將就此結束。除此之外，如果你看看我們的整體——再一次，這是我們在補充、我們的現金流覆蓋範圍、4-Wall 現金流覆蓋範圍中分享的東西，這些覆蓋範圍繼續呈上升趨勢，這主要是我們的一些功能現有客戶繼續跑贏大市。

Companies like Albertsons, et cetera, have continued to generate EBITDA growth on a 4-Wall basis, and therefore, those coverages have continued to improve. Some of the new transactions that we have entered into have very healthy 4-Wall coverage ratios. And this is, again, it very much ties in with the comment that I think it might have been handled was talking about why are we doing so many noninvestment-grade. If you look at it from a real estate perspective and you suddenly have coverages north of 4x, 5x in sound businesses, but they don't have an investment-grade rating given their size.

Albertsons 等公司繼續在 4-Wall 的基礎上產生 EBITDA 增長，因此，這些覆蓋範圍繼續提高。我們進行的一些新交易具有非常健康的 4-Wall 覆蓋率。再次，這與我認為可能已經處理的評論非常相關，談論的是為什麼我們要做這麼多非投資級。如果你從房地產的角度來看，你突然發現健全企業的覆蓋率超過 4 倍、5 倍，但考慮到它們的規模，它們沒有投資級評級。

Those are businesses that we will pursue. And so that's the reason why our 4-Wall coverage ratio is now close to 2.9x and it was in the 2.5s about a year ago. So the health continues to be fairly good. If you look at what is there on our watch list, it's about 4% of our rent is on the tenant watch list. And as you can imagine, a lot of it is driven by the theater business. A lot of the theater assets are on our watch list. And in some cases, we also have assets that may not have a credit issue, but there is a location risk associated with what will happen at the end of the lease term, given the changing demographics, changing competitive landscape, et cetera, et cetera. So that constitutes our 4%, which is slightly higher than what it was a few quarters ago. And it's largely a function of what's happening in the theater space and what we expect will happen in a continued high interest rate environment.

這些是我們將追求的業務。這就是為什麼我們的 4 牆覆蓋率現在接近 2.9 倍而大約一年前是 2.5 倍的原因。因此，健康狀況仍然相當不錯。如果你看看我們的觀察名單上有什麼，我們大約有 4% 的租金在租戶觀察名單上。正如您所想像的，其中很多是由劇院業務推動的。許多劇院資產都在我們的觀察名單上。在某些情況下，我們也有可能沒有信用問題的資產，但考慮到不斷變化的人口統計數據、不斷變化的競爭格局等，存在與租賃期結束時將發生的事情相關的位置風險.所以這構成了我們的 4%，略高於幾個季度前的水平。這在很大程度上取決於劇院空間中正在發生的事情以及我們預期在持續的高利率環境中會發生什麼。

Great. And then my second question, just touching on gaming. Obviously, the Encore deal closed. How is that going out as you have the assets and more importantly, what's the pipeline look like? How are you guys thinking about more -- doing more acquisitions in the gaming space.

偉大的。然後是我的第二個問題，只是關於遊戲。顯然，Encore 交易結束了。當您擁有資產時，情況如何，更重要的是，管道是什麼樣的？你們如何考慮更多 - 在遊戲領域進行更多收購。

Yes. So we are very proud to own this beautiful asset in Boston. We just had a demonstration internally about our presence on LinkedIn and Twitter. And when we posted the news release around closing on this asset, we had a huge jump in following. So clearly, it was appreciated by the audience following Realty Income, and we are very proud to have this partnership with Wynn. They are great operators. They are very good to sort of continue to understand and learn about this particular industry, and we hope to grow this industry.

是的。因此，我們非常自豪能夠在波士頓擁有這一美麗的資產。我們剛剛在內部演示了我們在 LinkedIn 和 Twitter 上的存在。當我們發布有關關閉此資產的新聞稿時，我們的關注者有了巨大的飛躍。很明顯，它受到了 Realty Income 之後的觀眾的讚賞，我們為與 Wynn 建立這種合作關係感到非常自豪。他們是偉大的經營者。他們很好地繼續了解和了解這個特定行業，我們希望發展這個行業。

We didn't do this as a one-off opportunistic transaction. And -- it's very much in line with looking for the best operators and trying to get assets that are going to be icons for the given operator, but even outside of that. And I think we have checked all of those boxes on the Boston asset. But finding those types of assets will continue to be (technical difficulty) we are focused on.

我們這樣做並不是一次性的機會主義交易。並且 - 這非常符合尋找最佳運營商並試圖獲得將成為給定運營商圖標的資產，但甚至超出了這一範圍。而且我認為我們已經檢查了波士頓資產的所有這些框。但尋找這些類型的資產將繼續是我們關注的（技術困難）。

And as you can imagine, we have received several inbounds. But for a variety of reasons, we haven't chosen to pursue them because they don't meet all of the attributes that we are looking for. So we will be selective in this industry, but we would absolutely love to grow it over time.

正如您可以想像的那樣，我們已經收到了幾次入境。但出於各種原因，我們沒有選擇追求它們，因為它們不符合我們正在尋找的所有屬性。所以我們會在這個行業中有所選擇，但我們絕對願意隨著時間的推移發展它。

Our next question comes from Wes Golladay with Baird.

我們的下一個問題來自 Wes Golladay 和 Baird。

There's been a lot of M&A activity in the value-based care. So I was wondering if this is the industry you're referring to, where you see all the opportunity? And if so, would you get the parent's credit on some of these deals?

在基於價值的護理領域有很多併購活動。所以我想知道這是否是您所指的行業，您在哪裡看到了所有機會？如果是這樣，你會在其中一些交易中得到父母的信任嗎？

(technical difficulty) end up looking at Oak Street Health, for instance, that CVS ended up buying and they want to monetize some of those real estate, then yes, by default, we are going to ask for CVS' credit on this $10 billion transaction that they just consummated. Walgreens has done a similar transaction. Amazon just announced that they did a similar transaction. Yes, it is precisely what we are talking about. We are calling it consumer-centric because we are approaching it from a pure state perspective and trying to find what are the alternatives of the locations that we have already -- and how does -- what are the synergies with this new vertical that we're pursuing.

（技術困難）最終會看看 Oak Street Health，例如，CVS 最終購買了它們，他們想將其中一些房地產貨幣化，那麼是的，默認情況下，我們將要求 CVS 在這 100 億美元中獲得信貸他們剛剛完成的交易。 Walgreens 也做過類似的交易。亞馬遜剛剛宣布他們進行了類似的交易。是的，這正是我們正在談論的。我們之所以稱之為以消費者為中心，是因為我們從純粹的國家角度來處理它，並試圖找到我們已經擁有的地點的替代方案——以及如何——與我們這個新的垂直領域的協同作用是什麼？重新追求。

It's certainly not looking at what traditional health care companies are focused on. That's not our forte. That's not our strength. And that has really no interest to us today. But it is the value-based healthcare that a lot of forward thinking health care companies, operators, health care operators are pursuing. And the derivative of that will be the real estate.

它肯定不是在看傳統醫療保健公司關注的是什麼。那不是我們的強項。那不是我們的強項。今天我們真的不感興趣。但許多具有前瞻性思維的醫療保健公司、運營商、醫療保健運營商所追求的是基於價值的醫療保健。而其衍生品將是房地產。

It could be our existing pharmacies that are going to be repositioned to HealthHUBs and MinuteClinics that's already happening. There's continued enhancement, there's continued higher impediments to switching costs that are getting created. Those are all perfect for us.

可能是我們現有的藥店將重新定位到已經發生的 HealthHUB 和 MinuteClinics。不斷增強，不斷增加轉換成本的障礙。這些對我們來說都是完美的。

That's embedded value that doesn't get realized day 1, but we love to see that happen. And we also want to be intentional about growing the portfolio by doing the types of transactions that we did in the fourth quarter in this particular area because we do believe in it.

這是無法在第一天實現的內在價值，但我們樂於看到這種情況發生。我們還希望通過進行我們在第四季度在這一特定領域所做的交易類型來有意識地增加投資組合，因為我們確實相信這一點。

Got it. And then would you have, I guess, a lot of ground-up development opportunities? And then also, it sounds like you would have some redevelopment opportunities. Have you ever done redevelopment funding before? Or is that a big part of the business now?

知道了。然後你會有很多基礎發展機會嗎？然後，聽起來你會有一些重建的機會。你以前做過重建基金嗎？或者這是現在業務的重要組成部分？

We've certainly done redevelopment funding, Wes. If you look at our pipeline (technical difficulty) dollars today. And some of that is repositioning of our existing assets. And we've done some in-house. We've done a lot of it with partners, national partners that we have. And those have been some of the best recapture rates that we have achieved in our portfolio.

我們當然已經完成了重建資金，韋斯。如果你看看我們今天的管道（技術難度）美元。其中一些是對我們現有資產的重新定位。我們已經在內部做了一些。我們與合作夥伴，我們擁有的國家合作夥伴一起做了很多事情。這些是我們在我們的投資組合中實現的最佳回收率。

So when we talk about this 90% overlap in terms of real estate characteristics, of the locations that we currently own and some of these consumer-centric medical concepts, that certainly lends itself to repositioning some of our assets for highest and best use. And we define highest and best use in terms of rent per square foot that we could recapture for a given location that we already own. And so yes, I'd hope to be able to partner with these operators, show some of our existing vacancies, potential vacancies that are going to come down the pike. And reposition these locations to help provide these types of services. So yes, that is out of a value-enhancing proposition that we're going to explore.

因此，當我們談論房地產特徵、我們目前擁有的地點以及一些以消費者為中心的醫療概念方面的這 90% 的重疊時，這肯定有助於重新定位我們的一些資產以實現最高和最佳用途。我們根據每平方英尺的租金來定義最高和最佳使用，我們可以為我們已經擁有的給定位置重新獲得。所以，是的，我希望能夠與這些運營商合作，展示我們現有的一些職位空缺，以及即將出現的潛在職位空缺。並重新定位這些位置以幫助提供這些類型的服務。所以是的，這不屬於我們將要探索的增值提議。

Our next question comes from Michael Goldsmith with UBS.

我們的下一個問題來自瑞銀的 Michael Goldsmith。

Can you talk about your view on interest rates in the capital markets based on your recent capital raising activities. It seems that Jonathan and Steve were busy with several less traditional items with the term loan with multiple extensions and the callable unsecured? Just trying to get a sense of what you're trying to achieve based on the laddering with these instruments.

您能否根據您最近的融資活動談談您對資本市場利率的看法。喬納森和史蒂夫似乎正忙於一些不太傳統的項目，包括多次延期貸款和可贖回無抵押貸款？只是想根據這些工具的階梯了解您要實現的目標。

Michael, it's Jonathan. I would say the activities that we did in January, early January, it's all about financial flexibility. We -- if you noticed, did a 3-year non-call 1, giving us that flexibility after 1 year to call at par. We also did a 1-year term loan, but [what] 2 1-year extension option (technical difficulty) And so what we're trying to avoid, especially since we went long on the curve earlier in 2022 with our debt capital raising efforts. What was the lock in rates that these levels are very attractive to us.

邁克爾，是喬納森。我想說的是，我們在 1 月、1 月初所做的活動都是關於財務靈活性的。我們——如果你注意到了，做了一個 3 年的非呼叫 1，給了我們在 1 年後以平價呼叫的靈活性。我們還提供了 1 年期定期貸款，但是 [what] 2 1 年期延期選項（技術困難）所以我們試圖避免什麼，特別是因為我們在 2022 年早些時候通過債務融資在曲線上做多努力。這些水平對我們非常有吸引力的利率鎖定是什麼。

We would like to think that over the next 3 years, there will be a more advantageous window for us to tap into the debt capital markets to term these amounts out. And so it's really about maybe a little bit of a barbell given the activity we did earlier in the year, much lower long-term rates, but also terming out the revolver to an extent and creating that flexibility for us to participate at lower rates if they come.

我們認為，在接下來的 3 年裡，我們將有一個更有利的窗口進入債務資本市場，以期償還這些金額。因此，考慮到我們今年早些時候所做的活動，長期利率要低得多，但它確實可能有點像槓鈴，但也在一定程度上終止了左輪手槍，並為我們創造了靈活性，以便我們以較低的利率參與，如果他們來。

And my second question, we've talked about each of the new verticals in depth, but just wanted to talk about the big picture associated with this. Does this -- is this a function of something has fundamentally changed with kind of the traditional core retail assets or industrial assets that you are known for. And I guess, does this -- these new opportunities provide more confidence in your ability to consistently hit or exceed the $5 billion of acquisitions that you've guided to the last couple of years?

我的第二個問題，我們已經深入討論了每個新的垂直領域，但只想談談與此相關的大局。這樣做 - 這是一種功能，它已經從根本上改變了你所熟知的傳統核心零售資產或工業資產的種類。而且我想，這是否 - 這些新機會讓您更有信心持續達到或超過您在過去幾年指導的 50 億美元收購的能力？

That's a very good question, Michael. It's a question that we've asked ourselves. There is a traditional definition of what a net lease company does. And yes, we can certainly be mandated and dictated by that or there was a way for us to step back and say, look, if we look at Realty Income, what is our core strength today? Our size and scale, which people have continued to point to as impediments to growth.

這是一個很好的問題，邁克爾。這是我們問過自己的問題。對於淨租賃公司的工作有一個傳統的定義。是的，我們當然可以被它強制和支配，或者我們有辦法退後一步說，看，如果我們看看房地產收入，我們今天的核心優勢是什麼？我們的規模和規模，人們一直指出這是增長的障礙。

If you look at the last 4 years, we've grown our business at 5% CAGR annually. And if you look at the business -- this question has been asked for the last 10 years (technical difficulty) we are going to take what has been used by the Street as an impediment and see if we can garner value for us shareholders, and let's just ask the question, what is it that we can do with the core strength of size, scale, cost of capital, that will be difficult for other companies to follow. And if the answer was, sorry, you're constrained by your business model and this is all you should do, and this is all you can do, that would have been the answer.

回顧過去 4 年，我們的業務每年以 5% 的複合年增長率增長。如果你看一下業務——這個問題在過去 10 年裡一直被問到（技術難度），我們將把華爾街所使用的東西作為障礙，看看我們是否能為我們的股東創造價值，並且讓我們問一個問題，我們可以用規模、規模、資本成本等核心優勢做什麼，這將是其他公司難以效仿的。如果答案是，對不起，你受到商業模式的限制，這就是你應該做的，這就是你所能做的，那將是答案。

But what we found once we started to ask the question around redefining this particular space, is that there's plenty for us to do. And we are only constrained by our ability to be creative. And ultimately, if we continue to underwrite these verticals and look at it from the perspective of real estate and look at it from the perspective of a net lease suddenly, the answers that start to pop up are very different. And it allows you to do things and allows you to be very creative and create outsized returns for our shareholders.

但是，一旦我們開始圍繞重新定義這個特定空間提出問題，我們發現我們有很多事情要做。我們只受限於我們的創造力。最終，如果我們繼續承保這些垂直行業，從房地產的角度來看，突然從淨租賃的角度來看，答案就會大不相同。它可以讓你做事，讓你非常有創造力，為我們的股東創造超額回報。

That with due respect, a lot of our peers are going to struggle trying to mimic. They just don't have the scale. And so if we can help consolidate real estate, through a net lease structure. That is really the only governing principle that should be constraining us. And ultimately be able to show to the shareholders that on a risk-adjusted return, these are as safe, if not in some cases, safer than investing in traditional retail net lease businesses, then it's a win-win.

恕我直言，我們的許多同行都將努力模仿。他們只是沒有規模。因此，如果我們可以通過淨租賃結構幫助整合房地產。這確實是應該約束我們的唯一管理原則。並最終能夠向股東表明，在風險調整後的回報中，這些與投資傳統零售淨租賃業務一樣安全，如果不是在某些情況下更安全，那麼這是雙贏的。

So that's how we are thinking about the business, Michael. And you will continue to see us be very creative. But like I've always done, and like this team here has always done, we will engage with you to share our thesis. And by the way, I do highly encourage everyone to go to the new deck, the investor deck, where we've laid out our thesis in more detail, and you'll see some numbers around (technical difficulty).

這就是我們對業務的看法，邁克爾。你會繼續看到我們非常有創意。但就像我一直做的那樣，就像這裡的這個團隊一直做的那樣，我們將與您一起分享我們的論文。順便說一句，我非常鼓勵大家去新的平台，投資者平台，我們已經在其中更詳細地闡述了我們的論文，你會看到一些數字（技術難度）。

And you'll find that this is what I think people invest in Realty Income for, and we are just delivering on that promise.

你會發現這就是我認為人們投資房地產收入的目的，而我們只是在兌現這一承諾。

Our next question comes from John Massocca with Landenberg Thalmann.

我們的下一個問題來自 John Massocca 和 Landenberg Thalmann。

So we're reaching about the hour mark here, so I'll take us back to the beginning a little bit. As we think about the delta in the Plenty transaction between the $42 million committed for the Virginia projects, and the $1 billion headline opportunity? Do you have some kind of like right of first refusal or purchase option to kind of get to that higher number? Just trying to kind of figure out what's in the remaining amount beyond the $42 million for the actual project that's underway?

現在我們已經到了大約一個小時，所以我會稍微回到開頭。當我們考慮弗吉尼亞項目承諾的 4200 萬美元與 10 億美元的主要機會之間的 Plenty 交易中的增量時？您是否有某種類似的優先購買權或購買選擇權來獲得更高的數量？只是想弄清楚正在進行的實際項目的 4200 萬美元之外的剩餘金額是多少？

So John, the best way to answer that is any real estate development outside of a carve-out for 1 particular client that I mentioned already, which is a user of their end product, we basically get to take a look at the opportunity. And then if we wish not to pursue it, we don't have to. But we, as their real estate partner, will be given an opportunity to look at any real estate development that they enter into over the next 5 or 6 years.

所以約翰，回答這個問題的最好方法是在我已經提到的一個特定客戶的分拆之外的任何房地產開發，這是他們最終產品的用戶，我們基本上可以看看這個機會。然後，如果我們不想追求它，我們就不必這樣做。但我們作為他們的房地產合作夥伴，將有機會了解他們在未來 5 或 6 年內進入的任何房地產開發項目。

There's a time frame associated with that. But ultimately, the goal here is to continue to invest because that would mean that they are becoming a more and more successful operator within vertical farming, and we are their real estate partner going forward. But yes, so it is a concept of the optionality lies with us in terms of how much more we invest.

有一個與之相關的時間框架。但最終，這裡的目標是繼續投資，因為這意味著他們將成為垂直農業領域越來越成功的運營商，而我們是他們未來的房地產合作夥伴。但是，是的，就我們投資多少而言，這是一個可選性的概念。

Okay. Understood. And then can you provide a little more color on the dental portfolio acquired in 4Q? What made that specific portfolio attractive? And can you provide some color on the credit behind of those assets?

好的。明白了。然後你能提供更多關於第四季度收購的牙科投資組合的顏色嗎？是什麼讓這個特定的投資組合具有吸引力？你能提供一些關於這些資產背後的信用的顏色嗎？

So it's not rated. It was a situation where you had the operator own both the operations as well as the real estate. And this was a mechanism for them to monetize their real estate and continue to invest in the operations of the business. I think we are very constrained by what it is that we can share. This was a highly negotiated transaction but it is one that we are very excited about.

所以不予評價。在這種情況下，運營商同時擁有運營和不動產。這是他們將房地產貨幣化並繼續投資於業務運營的一種機制。我認為我們可以分享的內容非常受限。這是一項經過高度協商的交易，但我們對此感到非常興奮。

And this is, again, an advent into this consumer-centric medical real estate in a big way, and we felt like it was large enough for us to sort of engage in and talk about, but we can't be more specific than that. You know what our overall cap rate was for the quarter, and this was a very small component of it, given that it was a $4 million quarter, but that's the extent of what we can do about it.

這又是一次大規模進入以消費者為中心的醫療房地產，我們覺得它足夠大，我們可以參與和討論，但我們不能比這更具體.你知道我們本季度的總體資本化率是多少，鑑於這是一個 400 萬美元的季度，這只是其中很小的一部分，但這就是我們能做的事情的程度。

Our next question comes from Linda Tsai with Jefferies.

我們的下一個問題來自 Jefferies 的 Linda Tsai。

What are some of the benefits you hope to achieve by filling in the vacant role of the COO?

您希望通過填補 COO 的空缺職位獲得哪些好處？

Greg is sitting right here, and he's already -- he's been with us about 1.5 months, and he's already added so much value to all of our discussions. He's very bright mind, and now he's going to start blushing. But he's somebody that I've respected. I've known Greg for the last -- I guess now it's almost 15 years. And he has a perspective that he brings to the table that is very unique and is going to be incredibly additive to all of us. Look, our business is becoming more and more complicated. We are becoming a bigger and bigger organization. We need talented people to continue to (technical difficulty) that.

格雷格就坐在這裡，他已經——他已經和我們在一起大約 1.5 個月了，他已經為我們所有的討論增添了很多價值。他的頭腦非常聰明，現在他要開始臉紅了。但他是我尊敬的人。我認識格雷格是最後一次——我想現在快 15 年了。他有一個非常獨特的觀點，他將其帶到桌面上，並將對我們所有人產生不可思議的補充。看，我們的業務越來越複雜了。我們正在成為一個越來越大的組織。我們需要有才華的人繼續（技術難度）那個。

But the most important thing about Greg, in my mind is his integrity and his ability to -- and his leadership qualities and his ability to mentor. Those are all qualities that will be put to good use, especially with the next batch of leaders that we are cultivating internally and he will be a massive help in accelerating them to very senior leadership positions within the company, which, by the way, this company will need in order to continue to execute its strategy and plan.

但在我看來，關於格雷格最重要的事情是他的正直和他的能力——以及他的領導才能和指導能力。所有這些品質都將得到很好的利用，尤其是我們正在內部培養的下一批領導者，他將極大地幫助他們加速到公司內非常高級的領導職位，順便說一句，這公司將需要以繼續執行其戰略和計劃。

And then just in terms of recurring CapEx being less than 1% of Realty Income's NOI, does this vary whether the properties are domestic or international? And are your new verticals consistent with this threshold too?

然後就經常性資本支出低於 Realty Income 的 NOI 的 1% 而言，無論房產是國內的還是國際的，這是否會有所不同？你的新垂直行業是否也符合這個門檻？

It depends on the type of leases that we have. I will tell you that, for example, an industrial lease tends to have structural and roof responsibilities that's on the landlord. And so obviously, CapEx there, not maintenance CapEx necessarily, but just CapEx in general -- is going to be higher. Now some of it will be viewed as maintenance. Some of it will be viewed as improving the life of the real estate. So the categorization of that CapEx may be different, but it is very much a function of the lease.

這取決於我們擁有的租約類型。我會告訴你，例如，工業租賃往往有房東的結構和屋頂責任。很明顯，那裡的資本支出，不一定是維護資本支出，而是一般的資本支出——將會更高。現在其中一些將被視為維護。其中一些將被視為改善房地產的壽命。所以資本支出的分類可能不同，但它在很大程度上是租賃的一個功能。

I would say that in the U.K., there is even on the retail side, there is not perfectly what we call [quad nets] assets. So we do have a lot more leakage. But lot more leakage is a relative term to very little leakage here in the U.S. And so all said and done, it's not a big part of our business. It's something that we share. It's part of the AFFO. And again, all of that is underwritten when we are thinking about the long-term return profile of investments that we make, (technical difficulty) obviously take into consideration on the front end before moving forward on transactions.

我想說的是，在英國，甚至在零售方面，也沒有我們所謂的 [quad nets] 資產。所以我們確實有更多的洩漏。但是更多的洩漏是相對於美國這裡很少洩漏的相對術語。所以總而言之，這不是我們業務的重要組成部分。這是我們分享的東西。它是 AFFO 的一部分。再一次，當我們考慮我們所做投資的長期回報情況時，所有這些都得到了承保，（技術難度）顯然在推進交易之前在前端考慮到了。

Our next question comes from Tayo Okusanya with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Tayo Okusanya。

Just a quick follow-up on Haendel's question. So again, doing a little bit more in the non-IG space, your watch list is a little bit bigger. On the flip side, your rent coverages are getting stronger and stronger. How do we think about just kind of credit provisioning on a going-forward basis with all these kind of moving factors and what you kind of look at as kind of adequate provisioning relative to historical levels, just kind of given the business backdrop.

只是對亨德爾問題的快速跟進。因此，再次在非 IG 空間中多做一點，您的觀察列表會更大一點。另一方面，您的租金保障範圍越來越大。我們如何考慮在所有這些移動因素的基礎上進行的信貸供應，以及您認為相對於歷史水平的充足供應，只是考慮到業務背景。

Yes. Tayo, it's not a perfect science. You've put forth 2 data points that we've shared with you that are polar opposites. How in this backdrop of uncertainty do we have 4-Wall coverages that continue to improve, yet we are doing less and less of investment grade. But that goes back to the underwriting. And I already mentioned to you that there are a couple of retail names that are not investment-grade but to have coverages north of 5x.

是的。 Tayo，這不是一門完美的科學。您提出了我們與您分享的兩個截然相反的數據點。在這種不確定的背景下，我們如何擁有持續改善的 4-Wall 覆蓋範圍，但我們在投資級別上做得越來越少。但這可以追溯到承保。我已經向你提到過，有幾個零售名稱不是投資級，但覆蓋率超過 5 倍。

And again, it's a question of are these businesses that we are comfortable with. With the backdrop of this high interest rate environment, we are not going to be doing transactions where you're going to have an operator that doesn't have a business model that can sustain what we are going to experience, especially in the near term because that would not be good.

再一次，這是一個我們對這些業務感到滿意的問題。在這種高利率環境的背景下，我們不會進行這樣的交易，即您將擁有一家沒有能夠維持我們將要經歷的商業模式的運營商，尤其是在短期內因為那樣不好。

So I don't think we should over-index to investment grade. I know it makes the conversation so much easier with the outside world. But what we have to rely upon is where can we get return profile (technical difficulty) is superior to alternatives. And I think that's how we are thinking about our business. We clearly have provisioned because of this uncertainty, we clearly have provisioned in our guidance, a higher bad debt expense. But last year was a phenomenal year for us. We had a similar provisioning that we kept adjusting throughout the year and ended up actually having bad debt expense below what we have traditionally experienced in the business.

所以我認為我們不應該過度指數化投資級別。我知道這讓與外界的對話變得更加容易。但我們必須依賴的是我們從哪裡獲得的回報率（技術難度）優於替代品。我認為這就是我們思考業務的方式。由於這種不確定性，我們顯然已經撥備，我們在我們的指導中明確撥備了更高的壞賬費用。但去年對我們來說是非凡的一年。我們有一個類似的準備金，我們在全年不斷調整，最終實際壞賬費用低於我們在業務中的傳統經歷。

So again, we expect the worst. We underwrite to what we expect and allow for the better outcomes to play out. And that's really how we think about our business, Tayo.

因此，我們再次期待最壞的情況。我們承保我們的期望，並允許更好的結果發揮出來。這就是我們對我們的業務的看法，Tayo。

Okay. Could you share any specific numbers about the provisioning of like 60 basis points or 75 basis points is the (inaudible)?

好的。您能否分享有關提供 60 個基點或 75 個基點的任何具體數字是（聽不清）？

You mean in terms of what we have in the earnings guidance?

你的意思是我們在收益指導中有什麼？

In the guidance, yes, in the guidance.

在指導中，是的，在指導中。

Yes. I don't think we're going to give that level of guidance because I guess what's going to happen, Tayo. Every year subsequent to this, people are going to want to know that. Just take a look at our history. You've got bad debt expense. It's an income statement line item. You can take a look at the history, and you can see that historically speaking, we've been in this 20 to (technical difficulty) Code and last year was better than that. So you can now take that information, overlay what we expect to happen over the next 12 months, and that's how you should create your models.

是的。我認為我們不會提供那種程度的指導，因為我猜會發生什麼，Tayo。此後的每一年，人們都會想知道這一點。看看我們的歷史就知道了。你有壞賬費用。這是損益表的一個項目。你可以看看歷史，你可以看到從歷史上看，我們一直在這個 20 到（技術難度）代碼中，去年比這更好。所以你現在可以獲取這些信息，疊加我們預期在未來 12 個月內發生的事情，這就是你應該如何創建你的模型。

Our next question comes from Josh Dennerlein with Bank of America.

我們的下一個問題來自美國銀行的 Josh Dennerlein。

Just 1 more, just on the tenant front, I don't think we touched the watch list, saw some news on kind of -- or the Red Lobster has been in the news, I guess, they closed a few stores. Any kind of updates on the watch list and maybe just Red Lobster in general?

還有 1 個，就在租戶方面，我認為我們沒有觸及觀察名單，看到了一些新聞——或者 Red Lobster 一直在新聞中，我猜，他們關閉了一些商店。觀察名單上有任何更新，也許只是一般的紅龍蝦？

You missed it. Somebody else asked us about the watch list. It's right around 4%. You brought up Red Lobster, there were rumors around that Red Lobster was trying to negotiate rents with landlords, I can unequivocally tell you that, that is not the case, at least they haven't reached approached us.

你錯過了。其他人向我們詢問了監視列表。正好在 4% 左右。你提到紅龍蝦，有傳言說紅龍蝦要和房東談租金，我可以明確告訴你，不是這樣的，至少他們沒有主動聯繫我們。

There certainly was assets that they have closed again, none of which impacted our portfolio. And there are some challenges with that operation. It represents about 1% of our rent. But again, I do think that some of the missteps that they had made in the third, fourth quarter of last year have essentially been reversed. They were slow to make pricing adjustments. They have rectified that. And they are managing their inventory much better and all of those should result in better performance. But I just wanted to make sure that we were talking about facts and not rumors that have percolated in the rumor mill.

肯定有他們再次關閉的資產，這些都沒有影響我們的投資組合。該操作存在一些挑戰。它約占我們租金的 1%。但同樣，我確實認為他們在去年第三、第四季度犯下的一些失誤基本上已經得到扭轉。他們調整價格的速度很慢。他們已經糾正了這一點。他們更好地管理庫存，所有這些都應該帶來更好的業績。但我只是想確保我們談論的是事實，而不是流傳在謠言工廠中的謠言。

This concludes our question-and-answer session. I would like to turn the conference over to Sumit Roy for any closing remarks.

我們的問答環節到此結束。我想將會議轉交給 Sumit Roy 作閉幕詞。

Well, thank you, Dave, for hosting us, and thank you, everyone, for joining in. I look forward to seeing you guys in the upcoming conferences. Take care.

好吧，謝謝 Dave 接待我們，也謝謝大家的加入。我期待在即將舉行的會議上見到你們。小心。

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。