Realty Income Corp (O) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Realty Income Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Steve Bakke, Vice President of Capital Markets and Investor Relations. Please go ahead.

下午好，歡迎參加房地產收入 2023 年第二季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。現在我想將會議交給資本市場和投資者關係副總裁 Steve Bakke。請繼續。

Thank you all for joining us today for Realty Income's Second 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 第二季度經營業績電話會議。總裁兼首席執行官 Sumit Roy 將討論我們的結果；克里斯蒂·凱利 (Christie Kelly)，執行副總裁、首席財務官兼財務主管； Jonathan Pong，高級副總裁兼企業財務主管。

During this conference call, we will make statements that may be considered forward-looking statements under federal securities laws. 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. We'll be observing a 2-question limit during the Q&A portion of the call in order to give everyone the opportunity to participate. If you would like to ask additional questions, you may reenter the queue. I will now turn the call over to our CEO, Sumit Roy.

在本次電話會議期間，我們將做出根據聯邦證券法可能被視為前瞻性聲明的聲明。公司未來的實際業績可能與任何前瞻性陳述中討論的事項存在重大差異。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。在電話問答部分，我們將遵守 2 個問題的限制，以便讓每個人都有機會參與。如果您想提出其他問題，可以重新進入隊列。我現在將把電話轉給我們的首席執行官 Sumit Roy。

Thank you, Steve. Welcome, everyone. We successfully executed on our strategy in the second quarter and continue to see momentum across the business. I would like to sincerely thank our one team whose focus and commitment continue to propel our business forward, serving all our clients and stakeholders. We believe the strength of our platform and quality of our real estate portfolio were evident in the quarter's results.

謝謝你，史蒂夫。歡迎大家。我們在第二季度成功執行了我們的戰略，並繼續看到整個業務的增長勢頭。我衷心感謝我們的團隊，他們的專注和承諾繼續推動我們的業務向前發展，為我們所有的客戶和利益相關者提供服務。我們相信我們平台的實力和房地產投資組合的質量在本季度的業績中顯而易見。

Despite a challenging interest rate environment, AFFO per share grew 3.1% from last year to $1 per share. Combined with our dividend, we are pleased to have delivered a total operational return of over 8% on a trailing 12-month basis. Delivering stable and consistent growth is foundational to our mission at Realty Income. Underlying this growth, our team continues to source and invest in high-quality properties at accretive spreads to our cost of capital while partnering with our clients who are leaders in nondiscretionary low price point and service-oriented industries. Partnering with industry leaders across over 13,000 properties in a diversified real estate portfolio offers us durability of cash flows that results in the predictable nature of our revenues, earnings and dividend payments.

儘管利率環境充滿挑戰，AFFO 每股仍比去年增長 3.1%，達到每股 1 美元。結合我們的股息，我們很高興在過去 12 個月的基礎上實現了超過 8% 的總運營回報。實現穩定和持續的增長是我們 Realty Income 使命的基礎。在這種增長的基礎上，我們的團隊繼續以增加資本成本的價差尋找和投資高質量的房產，同時與我們的客戶合作，這些客戶是非全權低價點和服務導向型行業的領導者。與多元化房地產投資組合中 13,000 多處房產的行業領導者合作，為我們提供了現金流的持久性，從而使我們的收入、盈利和股息支付具有可預測性。

Our investment activities remain robust as we continue to demonstrate that size and scale are unique advantages in the sale leaseback and portfolio transaction markets. In the second quarter, we closed on approximately $3.1 billion of high-quality real estate investments, which brings our year-to-date investment activity to over $4.7 billion. Cap rates in our acquisitions appear to have stabilized after a meaningful adjustment period to a higher interest rate environment. Though in select situations, we continue to find unique opportunities to source and close on larger transactions where our relationships, platform and access to capital allows us to take advantage of more favorable terms.

我們的投資活動依然強勁，因為我們不斷證明規模和規模是售後回租和投資組合交易市場的獨特優勢。第二季度，我們完成了約 31 億美元的優質房地產投資，這使我們今年迄今的投資活動超過 47 億美元。經過一段針對較高利率環境的有意義的調整期後，我們收購的資本化率似乎已經穩定下來。儘管在某些情況下，我們仍然會繼續尋找獨特的機會來尋找和完成更大的交易，在這些交易中，我們的關係、平台和資本渠道使我們能夠利用更優惠的條款。

Our second quarter initial cash lease yield of 6.9% represents a 120 basis point increase compared to the second quarter of 2022 and resulted in a realized investment spread of approximately 133 basis points when calculating our WACC on a leverage-neutral basis using the cost of equity and debt raised in the quarter. In addition to closing our $1.5 billion U.S. convenience store acquisition from the EG Group, we remained active internationally during the second quarter, closing on $416 million of investments at an initial cash lease yield of 7.1%.

我們第二季度的初始現金租賃收益率為6.9%，與2022 年第二季度相比增加了120 個基點，在使用股權成本在槓桿中性的基礎上計算WACC 時，實現的投資利差約為133 個基點以及本季度籌集的債務。除了完成以 15 億美元從 EG 集團收購美國便利店之外，我們在第二季度仍保持活躍的國際業務，以 7.1% 的初始現金租賃收益率完成了 4.16 億美元的投資。

This international activity includes the addition of a new geographic vertical in Ireland where we acquired 2 properties for $54 million at healthy cash yields. Given the transaction velocity, we have achieved in the first half of the year, we are increasing our outlook for investments to over $7 billion for 2023. Year-to-date, we have acquired 15% of source investment volume compared to an average of 7% over the last 5 years. In today's more constrained environment for capital, we have found the size and scale of our platform have become increasingly meaningful differentiators as we seek accretive growth opportunities.

這項國際活動包括在愛爾蘭增加一個新的地理垂直領域，我們以 5,400 萬美元的價格以健康的現金收益收購了 2 處房產。鑑於我們在今年上半年實現的交易速度，我們將 2023 年的投資前景提高到超過 70 億美元。今年迄今為止，我們已獲得了 15% 的來源投資額，而平均水平為過去5 年增長了7 %。在當今資本更加受限的環境中，我們發現，隨著我們尋求增值增長機會，我們平台的規模和規模已成為越來越有意義的差異化因素。

Shifting to operations, our portfolio continues to perform, and we ended the quarter with occupancy of 99%, the third consecutive quarter at that level. This matches our highest occupancy at the end of a reporting period in over 20 years. Additionally, our rent recapture rates increased from last quarter to 103.4% across 201 new and renewed leases, bringing the year-to-date recapture rate to 102.7% across 377 new or renewed leases executed in the period.

轉向運營，我們的投資組合繼續表現出色，本季度末入住率達到 99%，這是連續第三個季度保持這一水平。這符合我們 20 多年來報告期末的最高入住率。此外，我們的 201 個新租約和續租租約的租金回收率較上季度上升至 103.4%，使該期間執行的 377 個新租約或續租租約的年初至今的租金回收率達到 102.7%。

As further testament to the stability of our portfolio and the leading clients with whom we partner, our client watch list declined from last quarter and now represent less than 4% of our annualized rental revenue. This is the lowest level in the last 5 years. Finally, our same-store rental revenue increased 2.0% in the quarter, a tangible result of our purposeful decision to seek investment opportunities with higher internal growth characteristics as well as the benefit of uncapped CPI-based rent escalators, present in nearly 30% of the leases in our growing international portfolio.

我們的客戶觀察名單較上季度有所下降，目前占我們年化租金收入的不到 4%，這進一步證明了我們的投資組合以及與我們合作的主要客戶的穩定性。這是近5年來的最低水平。最後，我們的同店租金收入在本季度增長了2.0%，這是我們有目的地決定尋求具有更高內部增長特徵的投資機會以及基於CPI 的無上限租金自動扶梯（存在於近30% 的租金自動扶梯中）的實際結果。我們不斷增長的國際投資組合中的租賃。

Our efforts to increasingly pursue leases with meaningful contractual rent escalators has helped contribute to a portfolio with contractual rent growth at approximately 1.5% per annum as of the second quarter, or 2% annual growth on a levered basis. Before turning it over to Christie, I would like to recognize the tremendous value she has brought to Realty Income, first as a Board member, and then as Chief Financial Officer. Her leadership and counsel through a very active period for our company has left a lasting positive mark as well. I would also like to congratulate Jonathan on his upcoming promotion to CFO. Christie?

我們努力越來越多地尋求具有有意義的合同租金自動扶梯的租賃，這有助於我們的投資組合截至第二季度合同租金年增長率約為1.5%，或者在槓桿基礎上年增長率為2%。在將其交給克里斯蒂之前，我想承認她為 Realty Income 帶來的巨大價值，首先是作為董事會成員，然後是作為首席財務官。她在一段非常活躍的時期為我們公司提供的領導和建議也留下了持久的積極印記。我還要祝賀喬納森即將晉升為首席財務官。克里斯蒂？

Thank you, Sumit. It's an honor to serve our colleagues, Board and stakeholders during this exciting time at Realty Income. As we previously announced at the end of this year, I will be retiring as CFO and passing our CFO baton to Jonathan Pong, who is our current Senior Vice President, Head of Corporate Finance. Jonathan has been with the company for the last 9 years and brings significant experience to the role, having overseen our capital markets, investor relations, FP&A and derivatives functions during his time here.

謝謝你，蘇米特。在 Realty Income 的這個激動人心的時刻，我很榮幸為我們的同事、董事會和利益相關者提供服務。正如我們之前在今年年底宣布的那樣，我將辭去首席財務官的職務，並將首席財務官的接力棒交給喬納森·龐（Jonathan Pong），他是我們現任高級副總裁兼企業財務主管。喬納森 (Jonathan) 已在公司工作了 9 年，為該職位帶來了豐富的經驗，在此期間負責監督我們的資本市場、投資者關係、財務規劃與分析 (FP&A) 和衍生品職能。

Over the last 2.5 years, since joining the management team, we have worked closely together as part of a planned succession and Jonathan is well positioned to carry the torch moving forward. With that, I would like to hand the call over to Jonathan to go over the financial results from our quarter.

在過去的 2.5 年裡，自從加入管理團隊以來，我們一直密切合作，作為繼任計劃的一部分，喬納森完全有能力繼承火炬前進。至此，我想將電話轉交給喬納森，以審查我們季度的財務業績。

Thank you, Christie. I would be remiss without acknowledging your many contributions to the company and its stakeholders during your tenure. I'm grateful for your guidance, support and leadership all of which has laid the foundation for excellence as our business continues to evolve. Over my 9-year tenure at Realty Income, we have experienced significant growth in new industry verticals, geographies and property types. However, we've continued to view a reliable growing dividend and a well-capitalized balance sheet as critical components of our business.

謝謝你，克里斯蒂。如果我不承認您在任職期間對公司及其利益相關者做出的許多貢獻，那就是我的失職。我感謝您的指導、支持和領導，所有這些都為我們業務的不斷發展奠定了卓越的基礎。在我在 Realty Income 的 9 年任期中，我們在新的垂直行業、地域和房地產類型方面經歷了顯著增長。然而，我們仍然將可靠的增長股息和資本充足的資產負債表視為我們業務的關鍵組成部分。

To that end, we finished the second quarter with healthy leverage as measured by net debt to annualized pro forma adjusted EBITDA of 5.3x and our fixed charge coverage ratio remains solid at 4.6x. We are once again active issuers of equity capital via the ATM, raising approximately $2.2 billion in the aggregate in the second quarter, $651 million of unsettled forward equity remains outstanding as of today.

為此，我們以淨債務與年化預估調整後 EBITDA 的 5.3 倍衡量，以健康的槓桿率結束了第二季度，而我們的固定費用覆蓋率仍穩定在 4.6 倍。我們再次通過 ATM 積極發行股本，第二季度總計籌集了約 22 億美元，截至目前仍有 6.51 億美元未結算的遠期股本未償還。

As our platform has advanced and grown over time, our investment spread business has been supported by access to a wide range of products in the capital markets. Last month, we added another capital source to our inventory, raising EUR 1.1 billion through our debut public offering of euro-denominated unsecured bonds. This dual tranche offering resulted in a weighted average tenure of 9 years. And a weighted average annual yield to maturity of 5.08%.

隨著我們的平台隨著時間的推移不斷發展和壯大，我們的投資利差業務得到了資本市場上廣泛產品的支持。上個月，我們為庫存增加了另一個資金來源，通過首次公開發行歐元計價無擔保債券籌集了 11 億歐元。此次雙檔發行的加權平均期限為 9 年。加權平均到期年收益率為5.08%。

Establishing a presence in the euro unsecured bond market allowed us to diversify our fixed income investor base, and generate a natural hedge for yield denominated earnings and access of source of debt capital that was priced approximately 60 basis points inside of indicative U.S. dollar bond pricing at the time of execution. Proceeds from the offering effectively repaid short-term bonds on a multicurrency revolver and commercial paper programs, which had a combined balance of $990 million at quarter end. Combined with $254 million of cash on hand at quarter end and the $650 million of forward equity previously mentioned, we believe we are well capitalized with significant liquidity heading into the third quarter.

在歐元無擔保債券市場建立業務使我們能夠實現固定收益投資者基礎的多元化，並為以收益率計價的收益和獲得債務資本來源提供自然對沖，債務資本的定價比美元債券指示性定價高約60 個基點。執行時間。此次發行的收益有效地償還了多幣種左輪手槍和商業票據計劃的短期債券，截至季度末，這些計劃的總餘額為 9.9 億美元。加上季度末手頭 2.54 億美元的現金以及前面提到的 6.5 億美元的遠期股本，我們相信我們資本充足，在進入第三季度時擁有大量流動性。

Finally, from an earnings outlook perspective, the midpoint of our 2023 AFO per share guidance is unchanged, though we have narrowed the guidance range of $3.96 to $4.01, representing approximately 1.8% growth at the midpoint. With that, I would like to turn the call back over to Sumit.

最後，從盈利前景的角度來看，我們 2023 年 AFO 每股指導的中值保持不變，儘管我們已將指導範圍縮小到 3.96 美元至 4.01 美元，即中值增長約 1.8%。說到這裡，我想把電話轉回蘇米特。

Thank you, Jonathan. As our second quarter results illustrate, our company is well positioned to provide consistent results in a variety of economic environments and to grow through a variety of different acquisition channels. The optionality we have to toggle between different sources of capital is also a competitive advantage as it broadens our reach of investors and oftentimes provides a lower cost of capital alternative to the public U.S. dollar market.

謝謝你，喬納森。正如我們第二季度的業績所表明的那樣，我們公司處於有利位置，可以在各種經濟環境中提供一致的業績，並通過各種不同的收購渠道實現增長。我們必須在不同資本來源之間切換的選擇權也是一種競爭優勢，因為它擴大了我們的投資者範圍，並且通常提供比公共美元市場更低的資本成本替代方案。

Looking at the S&P 500 constituents within our addressable market, we count approximately 300 firms with $1.6 trillion of owned real estate. To quantify the near-term opportunity, which is available to us as sale-leaseback capital providers, this group has approximately $1.2 trillion of debt representing 34% of the group's outstanding debt capital maturing between 2024 and 2027. Meanwhile, corporate bond deals have risen anywhere between 240 and 400 basis points from the 2021 average to today. This compares to a 140 basis point increase in initial cash lease yield for Realty Income's investments over the same timeframe, making our capital solutions even more competitively priced on a relative basis than in the past.

縱觀我們目標市場中的標準普爾 500 指數成分股，我們統計了大約 300 家公司，擁有價值 1.6 萬億美元的自有房地產。為了量化我們作為售後回租資本提供者可以獲得的近期機會，該集團擁有約1.2 萬億美元的債務，佔該集團2024 年至2027 年間到期的未償債務資本的34%。同時，公司債券交易有所增加與 2021 年平均水平相比，目前的利率在 240 至 400 個基點之間。相比之下，同期 Realty Income 投資的初始現金租賃收益率增加了 140 個基點，這使得我們的資本解決方案的定價相對於過去更具競爭力。

Because of this cost of capital convergence, and because of the many benefits sale-leaseback financing provides, including the elimination of maturity risk, we believe there is a more compelling case to be made than ever for corporates to look to sale leaseback financing to replace maturing debt. As the attractiveness of sale-leaseback financing accelerates for corporates with looming debt maturities and elevated debt costs, we believe our growth opportunities will continue to expand on a sustainable basis. At this time, we can open it up for questions. Operator?

由於這種資本趨同成本，並且由於售後租回融資提供了許多好處，包括消除到期風險，我們認為，對於企業來說，比以往任何時候都更有說服力的理由尋求售後租回融資來取代到期債務。隨著售後回租融資對於債務到期日臨近和債務成本上升的企業的吸引力不斷增強，我們相信我們的增長機會將在可持續的基礎上繼續擴大。這個時候我們就可以打開提問了。操作員？

(Operator Instructions). And our first question will come from Nathan Crossett of BNP Paribas.

（操作員說明）。我們的第一個問題將來自法國巴黎銀行的內森·克羅塞特。

Maybe just a question on guidance. Maybe you could just unpack -- you guys increased acquisition and volume guidance at the midpoint on AFFO remaining the same. Maybe you can just kind of go over the puts and takes there. And then also, what are you guys assuming for kind of cap rates in your guidance? I think we're down 10 basis points in the quarter. What's kind of the outlook of the pipeline right now?

也許只是一個關於指導的問題。也許你可以打開包裝——你們在 AFFO 的中點增加了收購量和數量指導，保持不變。也許你可以回顧一下看跌期權和看跌期權。另外，你們對指導中的資本化率有何假設？我認為本季度我們下降了 10 個基點。目前該管道的前景如何？

So Nate, I'll take your second question first, and then I'll hand it off to Jonathan to talk about puts and takes with regards to the earnings guidance. With regards to the cap rate, we are assuming the cap rate to be within the ZIP code that we've announced in the second quarter and in the first quarter. That's where we believe where the cap rates have settled down. Opportunistically, there are situations that we could enter into where we could drive those cap rates higher. But for modeling purposes, I would request that you keep it within these ZIP codes that we've announced in the first and second quarter. Jonathan?

內特，我首先回答你的第二個問題，然後我將把它交給喬納森，讓他談談與盈利指引有關的看跌期權和拿取期權。關於上限利率，我們假設上限利率在我們在第二季度和第一季度宣布的郵政編碼範圍內。這就是我們認為資本化率已經穩定下來的地方。機會主義地講，在某些情況下，我們可以提高資本化率。但出於建模目的，我要求您將其保留在我們在第一季度和第二季度宣布的這些郵政編碼內。喬納森？

Nate, on the guidance question, I would, first of all, say the midpoint of our guide is the same as the one at the start of the year. And so when you think about how we put guidance together, there's a lot of puts and takes that we look at, at the beginning of the year, reasons at every quarter. We know that on a probability-weighted basis, not all of the takes are going to happen or puts that going to happen, and so when you think about acquisition guidance increasing 2 quarters now, that was a scenario that we had expected at the start of the year, but there was always going to be puts and takes that could offset that a bit. I think the biggest one for us has been short-term interest rates.

內特，關於指導問題，首先，我想說我們指南的中點與年初的中點相同。因此，當你考慮我們如何將指導意見放在一起時，我們會在年初、每個季度都會考慮很多看跌和看跌的理由。我們知道，在概率​​加權的基礎上，並非所有的買入或賣出都會發生，因此，當您考慮收購指導現在增加兩個季度時，這是我們一開始就預期的情況年度最佳，但總有一些看跌期權可以抵消一點。我認為對我們來說最大的問題是短期利率。

When you look at what was implied back in January and February on the SOFR forward curve, you compare that to what it is implying today about a 40 basis point increase. And so that alone is $0.01 per share for our business in the back half of the year. So I would say that, and there's also some other things that we always look at that, maybe we're taking a slightly more conservative view on over the second half of the year appropriately, but we feel very good about being more or less accurate from what we came out at the start of the year.

當您查看 1 月和 2 月 SOFR 遠期曲線所暗示的內容時，您可以將其與今天暗示的約 40 個基點的增長進行比較。因此，今年下半年我們的業務每股收益為 0.01 美元。所以我想說的是，還有一些我們一直在關注的其他事情，也許我們對今年下半年的看法稍微保守一些，但我們對或多或少準確感到非常高興從我們年初發布的情況來看。

Okay. That's helpful. Maybe just one on the debt rates are much lower in Europe. You did that recent bond deal. Can you just like talk about how much you could kind of theoretically raise over there to kind of take advantage of the better cost of capital? Are there any like hindrances like in terms of size?

好的。這很有幫助。也許只是歐洲的債務利率要低得多。你最近完成了債券交易。您能否談談理論上您可以在那裡籌集多少資金以利用更好的資本成本？是否存在類似尺寸方面的障礙？

Yes, Nate. We're not going to go crazy and have significantly more liabilities denominated in one currency relative to the assets we have denominated in that same currency, especially when it's four denominated. And so for us, when we're going out and issuing in various currencies, we're thinking about the income statement, FX risk that we might have, and we're using the natural interest expense in that currency to serve as a hedge. If we don't have that, there's not a lot of reason for us to go out and do that type of issuance. We also know that we have a very active acquisition pipeline across all currencies. We know that we're going to need the capital at some point. really denominated in dollars, sterling or euro.

是的，內特。我們不會發瘋，以一種貨幣計價的負債相對於以某種貨幣計價的資產要多得多，尤其是當它以四種貨幣計價時。因此，對我們來說，當我們以各種貨幣發行時，我們會考慮損益表、我們可能面臨的外匯風險，並且我們會利用該貨幣的自然利息支出來作為對沖。如果我們沒有這些，我們就沒有太多理由出去進行此類發行。我們還知道，我們在所有貨幣上都有非常活躍的收購渠道。我們知道我們在某個時候會需要資金。實際上以美元、英鎊或歐元計價。

So that's how we think about it. It was a 60 basis point pickup relative to comparable U.S. dollar, but for us, it's really about diversification. And so you can expect us to utilize everything in our toolkit going forward. But I think we are all set on the euro side, at least for the near term.

這就是我們的想法。相對於可比美元而言，這是 60 個基點的回升，但對我們來說，這實際上與多元化有關。因此，您可以期望我們今後將利用我們工具包中的所有內容。但我認為我們都站在歐元一邊，至少在短期內是這樣。

The next question comes from Greg McGinniss of Scotiabank.

下一個問題來自豐業銀行的格雷格·麥金尼斯。

So as always, I am interested in any larger portfolio deals. And we appreciate your opening remarks regarding the size of the potentially addressable S&P 500 market. But have you noticed any material uptick in sale leaseback interest from those companies at this point? Or is that still developing potential?

一如既往，我對任何更大的投資組合交易都感興趣。我們感謝您關於潛在的標準普爾 500 指數市場規模的開場白。但您是否注意到此時這些公司的售後回租興趣有任何實質性上升？或者說它仍然具有開發潛力嗎？

I guess we have to post one of these large transactions per quarter. And I think we've done that. If you look at what we've done in the fourth quarter of last year, that's when we closed on the gaming asset, which was $1.7 billion. You look at the large portfolio deal we did in the first quarter, it was a CIM transaction. That was circa $900 million. And in the second quarter, we've announced the $1.5 billion and closed the $1.5 billion EG Group transaction.

我想我們每個季度都必鬚髮布其中一筆大型交易。我認為我們已經做到了。如果你看看我們去年第四季度所做的事情，就會發現當時我們關閉了 17 億美元的遊戲資產。你看一下我們在第一季度進行的大型投資組合交易，這是一項 CIM 交易。那大約是9億美元。在第二季度，我們宣布了 15 億美元的交易，並完成了 15 億美元的 EG Group 交易。

And look, the reason why we are sharing all of this data is to help support what we are seeing develop in our pipeline and the conversations that we are having currently. Now how much of that gets translated to close transactions, time will tell. But clearly, we are very optimistic. And that is one of the main drivers of why we have increased our guidance by another $1 billion in terms of acquisitions. So we just feel like I wish our cost of capital was slightly better. But in terms of actual transactions, we feel like the pipeline is robust and it's largely a function of what is happening in the debt capital market.

看，我們共享所有這些數據的原因是為了幫助支持我們在管道中看到的發展以及我們當前正在進行的對話。現在有多少資金被轉化為完成交易，時間會告訴我們答案。但顯然，我們非常樂觀。這就是我們在收購方面將指導意見再增加 10 億美元的主要驅動力之一。所以我們只是覺得我希望我們的資本成本稍微好一些。但就實際交易而言，我們認為渠道很強勁，這在很大程度上取決於債務資本市場發生的情況。

Okay. What are your thoughts on increasing maybe the level of tenant debt investments to push earnings growth higher and offset some of that cost of capital? It's not exactly where you want it.

好的。您對增加租戶債務投資水平以推動盈利增長並抵消部分資本成本有何看法？這並不完全是你想要的地方。

Well, we think of ourselves as an investment company, Greg. So where we invest on the capital stack is always available for debate within the 4 walls of Realty Income. And wherever we feel like we can quantify the risk and underwrite the benefits of doing a sale leaseback versus doing a direct loan to one of our clients. We are going to go down the path of whichever yields the best risk-adjusted return. So yes, we haven't done one of those, but it is certainly up for discussion, and it's one that we have been discussing with my colleagues here at Realty Income.

嗯，我們認為自己是一家投資公司，格雷格。因此，我們在資本堆棧上的投資始終可以在房地產收入的 4 堵牆內進行爭論。只要我們覺得我們可以量化風險並承保進行售後回租與向我們的客戶之一直接貸款相比的好處。我們將選擇能產生最佳風險調整回報的路徑。所以，是的，我們還沒有做過其中一項，但它肯定值得討論，而且我們一直在與 Realty Income 的同事討論這一問題。

The next question comes from Brad Heffern of RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的布拉德·赫芬。

Sumit, can you give your updated thoughts on how you feel about the theater business broadly right now? Obviously, AMC recently reported its best week, but then you have the strikes, which will theoretically start affecting things at some point and the release schedule is it back to normal. So are you feeling worse at this point or better given the recent strength?

Sumit，您能談談您目前對劇院業務的最新看法嗎？顯然，AMC 最近報告了其最好的一周，但隨後出現了罷工，理論上這將在某個時候開始影響事情，而發行時間表將恢復正常。那麼考慮到最近的強勢，你此時感覺更糟還是更好？

Yes. So Brad, I've always stated this about the theater business that it is largely a function of content. And as long as the content continues to develop and it goes back to levels that it was pre-pandemic, which was circa 70, 75 big tent type releases. We're going to get back to levels pretty close to the revenue levels that we had in 2019. And anytime you have situations like the one that you've just described, where you have a strike, it does obviously put a little bit of a breaker in terms of the ability of studios to continue to release those big tent movies.

是的。布拉德，關於劇院業務，我總是這麼說，它很大程度上是內容的函數。只要內容繼續發展，它就會回到大流行前的水平，即大約 70、75 個大帳篷類型的發布。我們將恢復到非常接近 2019 年收入水平的水平。無論何時，只要遇到像您剛才描述的那樣的情況，即發生罷工，顯然都會造成一些損失。就電影公司繼續發行這些大電影的能力而言，這是一個破壞者。

The good news in today's environment versus the last time there was a strike, which lasted if I remember correctly from -- for about 4 months. The good news today is, we've got a lot more studios beyond the big 4 that are releasing big budget movies and I'd put Amazon and Netflix in the mix there. But yes, all else being equal, a strike is not a good thing. We see this having a near-term impact, I don't think so because a lot of these movies have already been completed, and it's just a question of staging the release. But longer term, it could have a disruption on how many of these movies get released. And so we are watching this closely. I believe there's a meeting on Friday, where the studios are getting together with the riders and the actors and all of that. And my hope is that there's a resolution soon. And -- but yes, it is a situation that we are monitoring closely. But my expectation, if it is anything like what it was last time, this should resolve itself in the next couple of months.

與上次罷工相比，今天的環境是個好消息，如果我沒記錯的話，這次罷工持續了大約 4 個月。今天的好消息是，除了四大之外，我們還有更多的電影公司正在發行大製作的電影，我會把亞馬遜和 Netflix 也加入其中。但是，是的，在其他條件相同的情況下，罷工並不是一件好事。我們認為這會產生短期影響，但我不這麼認為，因為其中很多電影已經完成，這只是分階段發行的問題。但從長遠來看，這可能會影響這些電影的上映數量。所以我們正在密切關注此事。我相信週五會有一個會議，工作室將與騎手和演員以及所有這些人聚集在一起。我希望盡快有解決方案。而且——但是，是的，我們正在密切監視這種情況。但我預計，如果情況與上次類似，這應該會在接下來的幾個月內得到解決。

Okay. I appreciate that. And then can you give your expectations for the Cineworld sites that were rejected and maybe talk through some of the opportunities with those, whether it's just typical releasing or if there's a development opportunity for any of them?

好的。我很感激。然後您能否談談您對被拒絕的 Cineworld 網站的期望，並談談與這些網站的一些機會，無論是典型的發布還是其中任何一個網站是否有發展機會？

Yes. So Brad, I'm not going to give -- go into the details of the Cineworld situation just because we haven't quite penned the contract yet. What I will say is that any of the potential economic outcomes have been completely reflected in our updated earnings guidance. So that's how I'm going to leave it with the Cineworld situation. And I'll just add something to stuff that I've already talked about in the past, there will be a few assets that we expect to get back. And we have already started to look at what are the alternatives at those particular sites.

是的。所以布拉德，我不會僅僅因為我們還沒有完全簽署合同就透露 Cineworld 情況的細節。我要說的是，任何潛在的經濟結果都已完全反映在我們更新的盈利指引中。這就是我對 Cineworld 的情況的看法。我將在我過去已經討論過的內容中添加一些內容，我們希望收回一些資產。我們已經開始研究這些特定地點的替代方案。

And the gamut runs from a complete redevelopment of the site to an alternative use, i.e., industrial to situations where we have a retailer coming in and talking about potentially just taking the asset as is even though they're not movie theater operators to potentially re-entitling the asset for an alternative use and selling it, i.e., creating more value for ourselves. And the last bucket, we'll be just selling the asset as is. So all of those various permutations are being considered on a handful of assets that we expect will get rejected through this process, but I'm not going to go into any more detail than that.

範圍從場地的完全重新開發到替代用途，即工業，再到我們有一家零售商進來並談論可能只是按原樣使用資產的情況，即使他們不是電影院運營商，也可能會重新使用該資產。 -賦予資產另類用途並出售，即為我們自己創造更多價值。最後一桶，我們將按原樣出售資產。因此，所有這些不同的排列都在少數資產上考慮，我們預計這些資產將通過此過程被拒絕，但我不會再詳細介紹。

The next question comes from Haendel St. Juste of Mizuho.

下一個問題來自Mizuho 的Haendel St. Juste。

Sumit, I'd like to go back to a conversation we've had in the past on high-grade. You continue to source deals here with a lower share of high-grade than historically. And I know in the past, you've talked about that your experience in acquiring higher-yielding assets and you're focused on generating the best risk-adjusted returns. But this quarter, particularly, we had a big drop, but it continues the trend of having below average high grade. So I guess, is this a dynamic that we should just expect to continue going forward? Is this a new norm? How should we think about the share of high grade going forward?

蘇米特，我想回顧一下我們過去關於高等級的對話。您在這裡繼續尋找優質交易的比例低於歷史水平。我知道，您過去曾談到過您在收購高收益資產方面的經驗，並且您專注於產生最佳的風險調整回報。但特別是在本季度，我們的成績出現了大幅下降，但仍延續了低於平均高等級的趨勢。所以我想，我們應該期待這種動力繼續向前發展嗎？這是新常態嗎？我們應該如何看待未來高品位的份額？

Sure. Thank you for that question, Haendel. So just to continue to reiterate the point, we are not targeting investment grade. What we are targeting are opportunities that yield the best risk-adjusted return. If it so happens that it is an investment-grade client then so be it. But ultimately, it's the economic profile of that investment that's going to dictate as to whether or not we are going to invest.

當然。謝謝你提出這個問題，亨德爾。因此，繼續重申這一點，我們的目標不是投資級別。我們的目標是能產生最佳風險調整回報的機會。如果碰巧它是投資級客戶，那就這樣吧。但最終，投資的經濟狀況將決定我們是否要投資。

Today, truth be told, we are looking at some of these investment grade opportunities and cannot pencil the risk-adjusted returns. We are finding far more value in areas where we're looking at sub investment-grade tenants who are willing to give us a return profile that is commensurate with the inherent risk in that particular opportunity. And that's what's driving the approximately 26% year-to-date investment-grade closings that we've done and is closer to 18%, I think, for the second quarter. But that's how we think about the world.

今天，說實話，我們正在尋找其中一些投資級機會，但無法預測風險調整後的回報。我們在尋找低於投資級租戶的領域發現了更大的價值，他們願意為我們提供與特定機會的固有風險相稱的回報。這就是我們今年迄今完成的投資級交割率約為 26% 的原因，我認為第二季度的交割率接近 18%。但這就是我們思考世界的方式。

And the other thing I'd just point out is just to make it equivalent because I have seen some of these cap rates being reported and there's a bit of a mixed match. When we're talking about a 6.9% cash lease yield. If you layer in the straight line, we're talking about an additional 100 basis points. And I've seen certain reports that are sort of conflating these 2 numbers. So just to make it apples-to-apples, our straight line yields are closer to 7.9% on $3.1 billion worth of acquisitions. That's where we are seeing the value. with, I would argue, much better growth profile. And clearly, that's represented in the 100 basis points of increase when compared to cash yields.

我剛剛指出的另一件事是為了使其等效，因為我已經看到了其中一些上限利率的報告，並且存在一些混合匹配。當我們談論 6.9% 的現金租賃收益率時。如果按直線分層，我們討論的是額外 100 個基點。我看到某些報告將這兩個數字混為一談。因此，為了進行比較，我們價值 31 億美元的收購的直線收益率接近 7.9%。這就是我們看到價值的地方。我認為，增長狀況要好得多。顯然，與現金收益率相比，這體現在 100 個基點的增長上。

So that's how you should think about us, Haendel. And if it just so happens that this dynamic were to shift and suddenly investment grade was to go back to our 40%, 45% that we have in our portfolio then that will be it. But it's not something that we target, and you shouldn't expect us to be targeting that number going forward.

所以這就是你應該如何看待我們，亨德爾。如果碰巧這種動態發生變化，投資等級突然回到我們投資組合中的 40%、45%，那麼就這樣了。但這不是我們的目標，而且你不應該指望我們未來會瞄準這個數字。

That's really helpful. I appreciate the color there. And one more. I guess I wanted to get your updated thoughts on investing in gaming assets today. I know in the past, you've talked about having an interest. I'm curious if you're seeing anything out there today, that would interest you? What type of returns or incremental spreads you require there? And specifically, your potential or your level of interest in a potential Bellagio trade.

這真的很有幫助。我很欣賞那裡的顏色。還有一個。我想我今天想了解您對投資遊戲資產的最新想法。我知道你過去曾談到過有興趣。我很好奇你今天看到的東西是否會讓你感興趣？您需要什麼類型的回報或增量利差？具體來說，您對潛在的貝拉吉奧交易的潛力或興趣程度。

Sure. So again, I'm not going to talk about specifics, but I'll repeat what I've said in the past about our desire to grow our gaming vertical. We are obviously looking at many opportunities. And thankfully, it's a fairly robust environment today for gaming. And yes, in terms of how we're going to view these opportunities, it's along the lines of how I answered the previous question. So that's what you should expect from us for this particular vertical.

當然。再說一遍，我不會談論具體細節，但我會重複我過去所說的關於我們發展遊戲垂直領域的願望。顯然我們正在尋找很多機會。值得慶幸的是，如今的遊戲環境相當強大。是的，就我們如何看待這些機會而言，這與我回答上一個問題的方式一致。這就是您對我們在這個特定垂直領域的期望。

The next question comes from Joshua Dennerlein of Bank of America.

下一個問題來自美國銀行的 Joshua Dennerlein。

I just I saw your cap rates on looks like domestic acquisitions -- about [6.8.] And then for developments, it was like a [6.9.] 10 basis point spread seems kind of small. So just -- is that a function of kind of when deals were struck or just the risk profile the tenants or just something that you're seeing broadly in the market?

我只是看到你們的上限利率看起來像國內收購——大約是[6.8.]然後對於開發來說，[6.9.]10個基點的利差似乎有點小。那麼，這是否是交易達成時間的函數，或者只是租戶的風險狀況，或者只是您在市場上廣泛看到的東西？

Yes. Very good question, Joshua. As you know, when you enter into transactions that have a long duration associated with it, which is what development by its very definition, is going to have. It does become a function of when were those transactions entered into and what's the duration of that build-out period. And so what you might have noticed is, if you're tracking our development yields over the last few quarters, you've noticed a marked increase in those cash yields on developments. It's largely a function of when did we strike those.

是的。很好的問題，約書亞。如您所知，當您進行與之相關的長期交易時，這就是發展的定義。它確實成為這些交易何時進入以及構建期持續時間的函數。因此，您可能已經註意到，如果您在過去幾個季度跟踪我們的開發收益率，您會發現開發項目的現金收益率顯著增加。這很大程度上取決於我們何時進行這些攻擊。

So things that you're starting to see filter through in the second quarter, which has a similar yield to what you saw on the domestic side, it's largely a function of us having entered into those transactions over the last 2 to 3 quarters when we were anticipating a much higher interest rate environment and therefore, being able to work with our clients to get that yield reflected in the development cycle. And you should continue to see that. Trends slightly higher looking into the next few quarters as some of the older generation development opportunities start to sort of get fully developed and become cash paying opportunities. So I think just keep a close eye on that and that's the trend you should see manifest itself over the next few quarters.

因此，您在第二季度開始看到的情況，其收益率與您在國內看到的收益率相似，這在很大程度上是我們在過去 2 到 3 個季度進行這些交易的結果，當時我們我們預計利率環境會更高，因此能夠與我們的客戶合作，使該收益反映在開發週期中。你應該繼續看到這一點。隨著一些老一代的發展機會開始得到充分開發並成為現金支付機會，未來幾個季度的趨勢將略有上升。因此，我認為請密切關注這一點，這就是您應該在接下來的幾個季度中看到的趨勢。

Okay. All right. That makes sense. And then I think Jonathan might have answered this, but I just wanted to clarify, the top end of guidance, it looks like you took down $0.02. Was it just the interest rate environment that's pushing down -- put downward pressure on that top range or anything else in there? Just curious, given acquisition guidance a bit so.

好的。好的。這就說得通了。然後我認為喬納森可能已經回答了這個問題，但我只是想澄清一下，指導的最高端，看起來你拿下了 0.02 美元。僅僅是利率環境在推動下行——對最高區間或其他任何區間施加下行壓力嗎？只是好奇，給出的收購指導有點如此。

Josh, to address that, Sumit brought it up earlier, the impact of what we felt was the greatest uncertainty out there, the Cineworld resolution that impact is now that are known to us. And going into the quarter, it was something where there was a range of possibilities that we built into the high end and the low end. And so with a greater sense of confidence now where that's trending, we felt that it was appropriate to take the high end down by $0.02 in addition to bringing the low end up by 2.

喬什，為了解決這個問題，蘇米特早些時候提出了這一點，我們認為最大的不確定性的影響，我們現在知道的電影世界決議的影響。進入本季度，我們在高端和低端市場中建立了一系列可能性。因此，隨著現在趨勢的增強，我們認為除了將低端提高 2 美元之外，將高端降低 0.02 美元是合適的。

The next question comes from Michael Goldsmith of UBS.

下一個問題來自瑞銀集團的邁克爾·戈德史密斯。

Jonathan, you've been with Realty Income for a while, and I think you're developing a reputation for a creative solution from a financing perspective. But as you move into the CFO seat, is there anything different that you would think about doing in their new position or different approaches to what Realty is doing overall?

喬納森，您在 Realty Income 工作了一段時間，我認為您正在因從融資角度提供創造性解決方案而贏得聲譽。但是，當您擔任首席財務官時，您會考慮在新職位上做哪些不同的事情，或者對 Realty 的整體工作採取不同的方法嗎？

Michael, I appreciate the question. I would say, look, what's made Realty Income so successful over the years, regardless of what we've done, what verticals we've established. It's commitment to a fortress balance sheet. And that's the one thing that is going to be sacrosanct to us for as long as we're in existence in these seats. And so we're not going to sacrifice things like the A3 minus credit rating that we worked very hard to get. We're not going to sacrifice the trust of the fixed income community that now spans across 3 of the currencies. And so you're going to see us continue to focus on low leverage, plenty of liquidity and we're going to be very predictable from that standpoint.

邁克爾，我很欣賞這個問題。我想說，看看，是什麼讓房地產收入多年來如此成功，無論我們做了什麼，我們建立了哪些垂直領域。這是對堡壘資產負債表的承諾。只要我們還坐在這些席位上，這就是對我們來說神聖不可侵犯的一件事。因此，我們不會犧牲諸如 A3 減信用評級之類的東西，而這些都是我們辛辛苦苦獲得的。我們不會犧牲目前涵蓋 3 種貨幣的固定收益社區的信任。因此，你會看到我們繼續關注低杠桿、充足的流動性，從這個角度來看，我們的表現將是非常可預測的。

I think going forward, given the added complexity of the business, the volume, the transaction volume that we see, the different countries that we're in, and we'll continue to be in, I think it's really more of a focus on more of the internal operations though. The external side of things, I think we're pretty well established. We're going to continue to be creative. But I think it's about building and continuing this momentum on the internal platform that we've created, which we think is a differentiator in the net lease industry and frankly, in the real estate industry.

我認為展望未來，考慮到業務的複雜性、交易量、我們所看到的交易量、我們所處的不同國家以及我們將繼續所處的國家，我認為這實際上更多地關注但更多的是內部操作。從外部來看，我認為我們已經很成熟了。我們將繼續發揮創造力。但我認為這是在我們創建的內部平台上建立並延續這種勢頭，我們認為這是淨租賃行業的差異化因素，坦率地說，也是房地產行業的差異化因素。

And Sumit, you mentioned your size and scale as a competitive advantage, at least twice, if not 3x on the call. Do you feel like your competitive advantage is growing? Are you seeing fewer bidders on some of the larger deals out there? Is that gap and the strength of the size and scale, is that improving and widening versus peers?

Sumit，你在電話會議上提到你的規模和規模是一種競爭優勢，至少是兩倍，甚至三倍。您覺得您的競爭優勢正在增強嗎？您是否發現一些較大交易的競標者減少了？與同行相比，這種差距以及規模和規模的優勢是否有所改善和擴大？

Thanks for the question, Michael. I might have actually said it 4 times. I'm not sure. I just believe in it so much. And it's really not something that we believe. It's what we are hearing. When we are engaging in these conversations with clients who are big clients who have big questions that they're trying to answer. It's the fact that who gets invited to the table. And when we see that we are the only REIT in the net lease space at the table competing against private sources of capital, that in itself gives us continued confidence that we are playing a game that is very different from some of our smaller peers.

謝謝你的提問，邁克爾。我實際上可能已經說了四次了。我不知道。我只是非常相信它。這確實不是我們所相信的。這就是我們所聽到的。當我們與大客戶進行這些對話時，他們有一些重大問題需要回答。事實是誰被邀請到餐桌上。當我們看到我們是淨租賃領域中唯一一家與私人資本來源競爭的房地產投資信託基金時，這本身就讓我們持續相信，我們正在玩的遊戲與一些規模較小的同行非常不同。

And we want to be that. We want to be the real estate partners of choice for the S&P 500 names. We want to be the first name that is considered when we -- when folks think about -- they have the ability to write big checks. They have the ability to stand by what it is they say. Their reputation speaks for itself and their ability to close is -- are none. And when we hear those comments from clients who work with us and more recently with some of our new clients who have been added to our registry, it gives us continued confidence to say that our scale and size is being appreciated within this space.

我們希望成為那樣。我們希望成為標準普爾 500 強企業首選的房地產合作夥伴。當人們想到我們有能力寫大額支票時，我們希望成為第一個被考慮的名字。他們有能力堅持自己所說的。他們的聲譽不言而喻，而他們的關閉能力卻是——沒有。當我們聽到與我們合作的客戶以及最近添加到我們註冊表中的一些新客戶的評論時，我們繼續有信心說我們的規模和規模在這個領域受到讚賞。

The next question comes from Eric Wolfe of Citi.

下一個問題來自花旗銀行的埃里克·沃爾夫。

Just wanted to follow up on Greg's question. When you look at your S&P peers, just curious what percentage would you say are receptive to the sale-leaseback conversation? And how has that changed versus a couple of years ago? Just trying to understand how your addressable market has changed. And for those that perhaps aren't as receptive, what's the typical pushback?

只是想跟進格雷格的問題。當您觀察標普同行時，您只是好奇您認為接受售後回租對話的百分比是多少？與幾年前相比，情況有何變化？只是想了解您的目標市場發生了怎樣的變化。對於那些可能不那麼容易接受的人來說，典型的阻力是什麼？

I can't give you percentages, Eric. But what I can point to is just look at some of the larger transactions we've done and who have we done it with. And they're all first time sale leaseback candidates, right? Think about [Wynd.] They were -- they've never done a sale leaseback before, and they chose to do it with us. Think about EG Group, they've never done a sale leaseback before. Their best chance of doing a sale leaseback was when they actually ended up being the winners in the Cumberland Farms portfolio. This was 3, 4 years ago. And they chose not to do it at that time.

我無法給你百分比，埃里克。但我可以指出的是，看看我們已經完成的一些較大的交易以及我們與誰進行的交易。他們都是首次售後回租候選人，對吧？想想[Wynd]。他們以前從未做過售後回租，但他們選擇與我們一起做。想想 EG 集團，他們以前從未做過售後回租。他們進行售後回租的最佳機會是當他們最終成為坎伯蘭農場投資組合的贏家時。這是三四年前的事了。他們當時選擇不這樣做。

And so part of the reason why I believe that sale leaseback as a product is maturing, is certainly driven by the capital markets environment that we find ourselves in and suddenly finding that sale leaseback as an alternative to raise capital is quite beneficial vis-a-vis as we were traditionally being compared to the debt capital markets, especially for names that are lower investment grade or sub-investment-grade candidates. And so I believe that, that will continue. And there will be other transactions that we hope to get over the finish line that we can speak to. That will again be first-time candidates. And yes, we feel like that, that will continue to grow.

因此，我相信售後回租作為一種產品正在成熟的部分原因肯定是受到我們所處的資本市場環境的推動，並且突然發現售後回租作為籌集資金的替代方案是非常有利的。相對於我們傳統上與債務資本市場進行比較，特別是對於投資級別較低或低於投資級別的候選人。所以我相信，這種情況將會持續下去。我們還希望能夠完成其他一些可以討論的交易。這又將是首次候選人。是的，我們有這樣的感覺，這種情況將會繼續增長。

That's helpful. And then you look at the 10-year or whatever interest rate you want to look at and it's up pretty meaningfully over the last couple of weeks. When you see moves like this and how quickly will you adjust your pricing on future acquisitions or potentially even [retrade] some deals, just trying to understand how sort of real-time capital market volatility changes return all those?

這很有幫助。然後你看看 10 年期利率或任何你想看的利率，你會發現它在過去幾週內大幅上漲。當您看到這樣的走勢時，您會以多快的速度調整未來收購的定價，甚至可能[重新交易]一些交易，只是想了解實時資本市場波動性變化如何返回所有這些？

Yes. So Eric, I'm going to have Jonathan talk a little bit about things that we try to do to anticipate what I'll call unanticipated movements in 10 years, okay? We've talked about a hedging strategy that we have in place. But I just want to make one point very clear. Our cost of capital gets mark-to-market pretty much by the second. That's not how cap rates move. There is absolutely a lag time, how sticky these movements, these upward movements and the cost of capital. People have a different opinion about how sticky that is and that drives their view around what cap rates should be. And it does take time for people to adjust to a higher cost of capital environment. And if there's a lot of volatility that makes that adjustment period that much more difficult.

是的。埃里克，我會讓喬納森談談我們試圖做的一些事情，以預測我所說的 10 年後意外的變化，好嗎？我們已經討論了我們現有的對沖策略。但我只想明確一點。我們的資本成本幾乎是按市值計算的。上限利率並不是這樣變化的。這些運動、這些向上運動和資本成本的粘性是絕對存在滯後時間的。人們對於其粘性有不同的看法，這促使他們對資本化率應該是多少持有不同的看法。人們確實需要時間來適應更高的資本成本環境。如果波動很大，調整期就會變得更加困難。

So yes, we've seen movements on the 10-year from [386 to 417, 418] today within a matter of days, you're not going to see a 30 basis point movement in cap rates to reflect this movement in 10 years, unless we see that this 4.7, I mean, 4.17, 4.2 become a more sustainable rate. But then what do we do balance sheet perspective to sort of anticipate those situations? I'll have Jonathan speak to that.

所以，是的，我們今天在幾天之內就看到了10 年期利率從[386 到417, 418] 的變動，你不會看到資本化率發生30 個基點的變動來反映10 年內的這一變動，除非我們看到這個 4.7，我的意思是，4.17，4.2 成為一個更可持續的利率。但是，我們如何從資產負債表的角度來預測這些情況呢？我會讓喬納森談談這個問題。

Thanks, Sumit. We've been very active on the hedging front, both for FX, which I alluded to earlier, but also on the interest rate front. If you look at the 10-Q from the first quarter, you'll see that we actually purchase swaptions, which really go out until January of next year that protects us against rising rates on the tender. The reason why we chose a billion, the reason why we went out to January is because we do have some debt maturities coming up of around $1 billion, $1.1 billion in the first quarter of next year. We put those hedges in place in late March, early April and as far as you might imagine, it's pretty healthily in the money right now. So from that standpoint, we've taken out the primary balance sheet risk or refi risk that we have coming up over the 6 to 9 months, but we're always going to look for opportunities where we see a risk, we want to be proactive. We can't time the market, but what we can do is mitigate the exposure that we have on potential risk.

謝謝，蘇米特。我們在對沖方面一直非常活躍，無論是對於我之前提到的外匯，還是利率方面。如果您查看第一季度的 10-Q，您會發現我們實際上購買了掉期期權，這些掉期期權實際上會持續到明年 1 月，以保護我們免受投標利率上升的影響。我們之所以選擇 10 億美元，之所以選擇 1 月份，是因為我們確實有一些債務到期日約為 10 億美元，明年第一季度將達到 11 億美元。我們在三月下旬、四月初實施了這些對沖，正如你所想像的那樣，目前的資金狀況相當健康。因此，從這個角度來看，我們已經排除了 6 到 9 個月內出現的主要資產負債表風險或再融資風險，但我們始終會在看到風險的地方尋找機會，我們希望積極主動的。我們無法把握市場時機，但我們可以做的是減輕潛在風險的敞口。

And so -- that's something that we've done now twice, and the first time we did it was the middle of pandemic, and we were able to monetize that (inaudible) swap at a $72 million gain. We're not always going to be so fortunate, but that's how we're thinking about managing risk.

因此，我們現在已經做過兩次這樣的事情，第一次是在大流行中期，我們能夠以 7200 萬美元的收益將這次（聽不清）互換貨幣化。我們並不總是那麼幸運，但這就是我們管理風險的方式。

The next question comes from Wes Golladay of Baird.

下一個問題來自貝爾德 (Baird) 的韋斯·戈拉迪 (Wes Golladay)。

Can you talk about what's going on in the U.K., it looks like volume was low. I'm just curious if this is a function of just low deal volume? Or is it just pricing just lagging still over there?

你能談談英國的情況嗎？看起來成交量很低。我只是好奇這是否只是交易量低的原因？或者只是那裡的定價仍然滯後？

Yes. Neil needs to work a little bit harder, I think. It really is a timing issue as we had some great momentum towards the end of last year driven by pressures that funds were experiencing on the redemption side and it created some amazing opportunities for us. That momentum continued into the first quarter. Second quarter was still very healthy. We did about $420 million which is a big number, but it's just -- it got dominated by what we did on the U.S. side, largely driven by the $1.5 billion.

是的。我認為尼爾需要更加努力。這確實是一個時機問題，因為在去年底基金面臨贖回壓力的推動下，我們取得了一些巨大的動力，這為我們創造了一些驚人的機會。這種勢頭持續到第一季度。第二季度仍然非常健康。我們做了大約 4.2 億美元，這是一個很大的數字，但它只是被我們在美國方面所做的事情所主導，主要是由 15 億美元推動的。

If you take that $1.5 billion away, and you look at what we've done, we were at $1.6 billion, of which the European -- the international business represented, I would say, trying to do a quick math right around 30%. So -- and that's generally been where the international business has contributed. But look, I'm very excited about that business, and there's more to come.

如果你去掉這 15 億美元，看看我們所做的事情，我們的收入是 16 億美元，其中歐洲——國際業務代表，我想說，快速算一下，大約佔 30%。所以——這通常是國際業務做出貢獻的地方。但是你看，我對這項業務感到非常興奮，而且還會有更多業務。

Okay. It sounds good. And yes, good job, Neil. That's actually good volume was adjusted. I guess next question is more bigger picture. I'm kind of curious what your opinion would be, what is the bigger risk to net lease? Would it be inflation and potentially having this price escalators or to be tenant credit at this point of the cycle?

好的。這聽起來不錯。是的，幹得好，尼爾。這實際上是很好的音量調整。我想下一個問題是更大的圖景。我很好奇你的意見是什麼，淨租賃的更大風險是什麼？是通貨膨脹並可能導致價格自動上升，還是在周期的這個階段成為租戶信貸？

I would think it's tenant credit. You'll have to look at all of the various different net lease businesses and take a view on where do you see the credit risk largely driven by these inflationary pressures, the persistence of those inflationary pressures which then obviously is resulting in this higher interest rate environment. I think that's going to sort of filter through and it will impact net lease businesses, net lease companies differently depending on the makeup of where their exposure lies.

我認為這是租戶信用。您必須查看所有各種不同的淨租賃業務，並了解您在哪裡看到主要由這些通脹壓力驅動的信貸風險，這些通脹壓力的持續存在顯然導致了更高的利率環境。我認為這將會滲透進來，它將對淨租賃業務、淨租賃公司產生不同的影響，具體取決於其風險敞口的構成。

For me, one of the advantages that we have is, do we -- can we perfectly match inflation with -- of the inherent growth rates that we have, we can't. So there's always going to be a bit of a mismatch. But have we, and now I'm talking about Realty Income done a much better job of growing the inherent growth profile of our leases, the answer is a categorical yes. Today, when I think it was part of my prepared remarks, our overall portfolio, if you were to do nothing, we'll grow by 1.5% and on a levered basis closer to 2%. Some of it is actually benefited from non-capped CPIs that we've been able to get on 1/3 of the assets that have CPI growth rates built into them in the international markets. And those have contributed greatly to increasing our inherent growth rate.

對我來說，我們擁有的優勢之一是，我們能否——我們能否與通脹完美匹配——我們擁有的固有增長率，但我們不能。所以總會有一些不匹配的地方。但是，我們（現在我正在談論房地產收入）是否在提高租賃的固有增長狀況方面做得更好，答案是肯定的。今天，當我認為這是我準備好的講話的一部分時，我們的整體投資組合，如果你什麼都不做，我們將增長 1.5%，在槓桿基礎上接近 2%。其中一些實際上受益於無上限的CPI，我們已經能夠在國際市場上納入CPI增長率的資產的1/3中獲得這些資產。這些都為提高我們的內在增長率做出了巨大貢獻。

So it's never going to be perfectly matched, but the risk of not having a perfectly matched growth rate inherent in your leases is somewhat muted versus credit risks that could translate into much bigger impact on your overall business.

因此，它永遠不會完美匹配，但與可能對您的整體業務產生更大影響的信用風險相比，租賃中固有的增長率不完美匹配的風險在某種程度上是較小的。

The next question comes from Ronald Kamdem of Morgan Stanley.

下一個問題來自摩根士丹利的羅納德·卡姆德姆。

Just two quick ones. Staying on the tenant credit risk. So I see occupancy 99, median EBITDA, it looks like it ticked up 2.8% versus 2.7% last quarter. And I know that's reported with a lag, but still pretty interesting. And I think in your opening comments, you mentioned that basically the watchlist was the lowest sort of ever. So things are certainly feeling pretty good. But as you sort of look forward, when you hear stuff like student loans starting again for property insurance in Florida. Just sort of curious, how does your team sort of stress test that or think about that, what the potential impact did have on the tenant side?

就兩個快的。繼續關注租戶信用風險。因此，我看到入住率為 99，EBITDA 中位數看起來上漲了 2.8%，而上季度為 2.7%。我知道報導有滯後，但仍然很有趣。我認為在您的開場評論中，您提到基本上觀察列表是有史以來最低的。所以事情肯定感覺很好。但當你展望未來時，當你聽到佛羅里達州的財產保險重新開始學生貸款之類的事情時。只是有點好奇，您的團隊如何進行壓力測試或思考這一點，這對租戶方面有什麼潛在影響？

Yes. Good question, Ronald. And just to clarify, it was in the last 5 years that I said that our credit watchlist is in the 3s. It's the lowest been in the last 5 years. Those are very good questions. What is it when student loans get instituted back again and discretionary income falls? What are the first things to go? It's going to be discretionary spend, right? And if you look at the portfolio that we've created that largely consists of nondiscretionary low price point service-oriented businesses, these are things that will be the last to go. Could they be impacted? Of course, they can.

是的。好問題，羅納德。澄清一下，我是在過去 5 年裡才說過我們的信用觀察名單處於 3 級的。這是過去 5 年來的最低水平。這些都是非常好的問題。當學生貸款再次收回並且可自由支配收入下降時，會發生什麼？首先要做的事情是什麼？這將是可自由支配的支出，對吧？如果你看看我們創建的投資組合，其中主要由非全權委託的低價點服務導向型業務組成，那麼這些將是最後消失的東西。他們會受到影響嗎？當然，他們可以。

But when you have discretionary income that is getting compressed, those are not going to be the types of businesses that will get impacted first. And that's how we've constituted our portfolio of assets is being very much focused on what are the industries that are going to be a lot more resilient under economic conditions like the one that we are facing today. So it is not by luck that we find ourselves with a credit watch list that is circa 3.7%. It is by design. And that's how we run our business, Ronald.

但是，當您的可自由支配收入受到壓縮時，這些企業就不會首先受到影響。這就是我們構建資產組合的方式，我們非常關注哪些行業在我們今天面臨的經濟條件下將更具彈性。因此，我們發現自己的信用觀察名單約為 3.7%，這絕非偶然。這是設計使然。這就是我們經營業務的方式，羅納德。

Great. And then my second one was just -- so going back to guidance a little bit and taking a step back thinking about this year, just can you -- what are the sort of big two or three sort of comp issues that the guidance was facing this year. I think you hit on one, which is the interest cost sort of headwind, right, for this year? But presumably, that's not going to be an issue for '24 because the comp just is not as tough. But was there anything else sort of onetime or unique to this year, it could be property tax, it could be whatever that we should be mindful of -- for '23 that maybe does not sort of happen again in '24?

偉大的。然後我的第二個問題是 - 所以稍微回到指導意見並退後一步思考今年，你可以 - 指導意見面臨的兩大或三類補償問題是什麼今年。我想你想到了一個，那就是今年利息成本的逆風，對嗎？但想必這對於 24 賽季來說不會成為問題，因為比賽並不那麼艱難。但是今年是否還有其他一次性或獨特的事情，可能是財產稅，也可能是我們應該注意的任何事情——對於 23 年來說，也許不會在 24 年再次發生？

Ron, it's Jonathan. I'll say -- I'll expand on what I said earlier regarding short-term rates. We talked about the impact to the back half of this year. But when you really zoom out and you look at year-over-year versus all of 2022 versus 2023, it's even a greater impact. It's closer to $0.07 or $0.08, which based off the midpoint of our guide is about 2%. And so you take that out on a normalized basis, the volume that we're doing, everything that we're doing from a portfolio and asset management standpoint, we're trending closer to a 5% number year-over-year if you were at 3.1% this quarter.

羅恩，我是喬納森。我會說——我將擴展我之前所說的有關短期利率的內容。我們談到了對今年下半年的影響。但當你真正縮小範圍，對比 2022 年和 2023 年的全年情況時，你會發現影響更大。它接近 0.07 美元或 0.08 美元，基於我們指南的中點約為 2%。因此，如果你將其標準化，我們正在做的交易量，以及我們從投資組合和資產管理的角度所做的一切，我們的趨勢將逐年接近 5%，如果你本季度為 3.1%。

The first quarter did have a little bit of a tougher comp, if you recall the first quarter of 2022. We did have a significant reserve reversal in the theater industry. So that's why the first quarter was a little bit flat. Second quarter outside of rates is getting back more towards a normalized level. So back half of the year, I think you'll continue to see some difficult comps on the SOFR front. And given that we do have even an 8%, 10% exposure to variable rates, just given the magnitude of the move, that's going to be the biggest difference.

如果你還記得 2022 年第一季度的話，第一季度的競爭確實有點艱難。戲劇行業確實發生了重大的儲備逆轉。這就是為什麼第一季度有點平淡的原因。第二季度，除了利率之外，其他因素都回到了正常化水平。因此，今年下半年，我認為您將繼續在 SOFR 方面看到一些困難的比賽。考慮到我們確實有 8%、10% 的浮動利率風險，僅考慮到變動的幅度，這將是最大的差異。

The next question comes from Linda Tsai of Jefferies.

下一個問題來自 Jefferies 的 Linda Tsai。

Just going back to your comment regarding the stickiness of cap rates, the investment spread of 133 basis points. How does that vary between international and domestic investments? And where would you see investment spreads in those two categories trending?

回到你關於上限利率粘性的評論，投資利差為 133 個基點。國際和國內投資有何不同？您認為這兩個類別的投資利差趨勢如何？

Yes. If you actually follow the headline cap rates that we are registering, I think the international business was 20 basis points higher. So that should answer your question, Linda. But again, this is going to be very much a product-by-product opportunity-by-opportunity discussion in terms of what is the actual spread that we are going to realize, and is there an advantage between the domestic markets and the international markets. I think the advantages are very different. Here in the U.S. market, there's clearly more competition, there are more players. In the international markets, we don't experience that.

是的。如果你真的關注我們登記的總體上限利率，我認為國際業務高出 20 個基點。所以這應該回答你的問題了，琳達。但同樣，這將是一個逐個產品的逐個機會的討論，討論我們將實現的實際價差是多少，以及國內市場和國際市場之間是否有優勢。我認為優點是非常不同的。在美國市場，顯然競爭更加激烈，參與者也更多。在國際市場上，我們沒有經歷過這種情況。

The U.S. market, however, is a much more mature sale-leaseback market. And so there are more opportunities that one can participate in. Whereas I would say the international market is still in the nascent stages of sale leaseback as a viable product. It is maturing, but it is behind the curve.

然而，美國市場是一個成熟得多的售後回租市場。因此，人們可以參與的機會更多。而我想說的是，國際市場仍處於售後回租作為一種可行產品的初級階段。它正在成熟，但落後於潮流。

And for us, what we want to try to do is position ourselves in both these markets and work from our points of strength that allows us to then win transactions. Our average has been 150 basis points of spread from the time we've been tracking spreads. And first quarter, it was 200 basis points based on realized capital that we raised to actually help finance our business. This quarter, based on, again, the same method, it's 133 basis points. So if you average out year-to-date, it's still north of what our 150 basis points historical average has been. But it's very difficult, Linda to tell you, going forward, you're going to have one geography that is going to dominate the spread versus another. It's very much opportunity-driven.

對於我們來說，我們想要嘗試做的就是在這兩個市場中定位自己，並利用我們的優勢開展工作，從而使我們能夠贏得交易。自我們追踪利差以來，我們的平均利差為 150 個基點。第一季度，我們籌集的實際資本為我們的業務融資提供了 200 個基點。本季度，同樣採用同樣的方法，為 133 個基點。因此，如果計算今年迄今為止的平均水平，它仍然高於我們 150 個基點的歷史平均水平。但這是非常困難的，琳達告訴你，展望未來，你將有一個地理區域將主導傳播而不是另一個地理區域。這很大程度上是機會驅動的。

Got it. And then I think you said 30% of your international leases have uncapped CPI. What is the nature of those tenants that are open to that versus the other 70% of leases that don't have uncapped?

知道了。然後我想您說過 30% 的國際租賃沒有 CPI 上限。與其他 70% 沒有上限的租約相比，那些願意這樣做的租戶的性質是什麼？

Yes, Linda, let me be a bit more precise, of the international leases that have CPI as the driver of internal growth, 1/3 or 30% of them are uncapped. So not all of our leases in the international markets have CPI drivers of internal growth. So I just want to make that clarification. And again, it is very much a function of the market. A market that is used to seeing CPI growth as the metric for -- in their leases, they're far more receptive to continuing to see that. Now there has been some pushback given just the sheer magnitude of inflation that's being experienced in some of these markets, and we are trying to be commercial about that.

是的，琳達，讓我更準確地說，在以 CPI 作為內部增長驅動力的國際租賃中，有 1/3 或 30% 是沒有上限的。因此，並非我們在國際市場上的所有租賃都有 CPI 內部增長驅動因素。所以我只想澄清一下。再說一遍，這在很大程度上是市場的功能。一個習慣於將消費物價指數增長視為租賃衡量標準的市場，他們更願意繼續看到這一點。現在，鑑於其中一些市場正在經歷的嚴重通脹，出現了一些阻力，我們正在努力將其商業化。

But it's very difficult, suddenly to go to a client here who happens to be an investment-grade client and say, "Sorry, we want CPI growth", you're not going to get that. So yes, we see -- we tend to see more uncapped CPI growth in the international markets than we do here. And yes, but that too is evolving.

但這是非常困難的，突然對一位恰好是投資級客戶的客戶說：“對不起，我們希望 CPI 增長”，你不會得到這一點。所以，是的，我們看到——我們往往會看到國際市場上的 CPI 增長不受限制，而不是在這裡。是的，但這也在不斷發展。

The next question comes from Harsh Hemnani of Green Street.

下一個問題來自 Green Street 的 Harsh Hemnani。

Sumit, you mentioned that in the past, sourcing, what you close is roughly 7% of what you've sourced. And this quarter, it was closer to 15%. Do you worry at all if the net lease transaction market sort of continues to remain in liquid and at Realty Income, you're closing $5 billion to $7 billion annually, that you might not have the luxury to be as selective as you were in the past and maybe you have to execute on your second or third best idea. How are you thinking about that looking over the next 12 months?

Sumit，您提到過去在採購方面，您關閉的產品大約是您採購的產品的 7%。而本季度，這一數字接近 15%。您是否擔心，如果淨租賃交易市場繼續保持流動性，並且在 Realty Income 中，您每年將關閉 50 億至 70 億美元，那麼您可能無法像在 Realty Income 那樣有選擇性地進行選擇。過去，也許你必須執行你的第二個或第三個最佳想法。您如何看待未來 12 個月的情況？

Well, the good news, Harsh, is that we haven't gone to executing on our second or third best ideas yet. We're very fortunate. Let me shed some light on this 15% closing rather than what we've traditionally done, which is the 7% to 10%. What is skewing this is clearly the $1.5 billion transaction that we closed on in the second quarter, but it's not reflected in the denominator in the sourcing volume of $15 billion. We had sourced that asset, I would say, probably in the fourth quarter of last year. So that's where the mismatch occurs. In some ways the sourcing volume is much more real time, what did we see? And there is generally a lag between when we engage in a conversation, i.e., when it is sourced versus when does that particular transaction get over the finish line or closes. And I think that lag sometimes does create this mismatch.

好吧，哈什，好消息是我們還沒有去執行我們的第二個或第三個最好的想法。我們非常幸運。讓我來解釋一下這個 15% 的收盤價，而不是我們傳統上所做的 7% 到 10%。顯然，造成這種情況的原因是我們在第二季度完成的 15 億美元交易，但這並沒有反映在 150 億美元採購量的分母中。我想說，我們可能是在去年第四季度採購了該資產。這就是不匹配發生的地方。在某些方面，採購量更加實時，我們看到了什麼？而且，我們進行對話的時間（即對話的發起時間與特定交易的完成時間或結束時間）之間通常存在滯後。我認為滯後有時確實會造成這種不匹配。

So if we were to sort of take away the $1.5 billion and then look at the $1.6 billion that we ended up closing in a year that -- in a quarter where we source $15 billion, $16 billion, that's still 10%. So I think that's probably the way to think about this mismatch that we saw in the second quarter.

因此，如果我們去掉 15 億美元，然後看看我們最終在一年內完成的 16 億美元——在我們採購 150 億美元、160 億美元的季度中，這仍然是 10%。所以我認為這可能是思考我們在第二季度看到的這種不匹配的方式。

Okay. That's helpful. And then the $1.6 trillion that you provided that there's $1.6 trillion of commercial real estate on S&P 500 company balance sheet. How much of that is real estate that you would actually want to have in your portfolio. So I imagine you're not actively acquiring office assets. Could you share how much of that is maybe retail gaming, et cetera, that you might go after?

好的。這很有幫助。然後，您提供的 1.6 萬億美元表明，標準普爾 500 指數公司資產負債表上有 1.6 萬億美元的商業房地產。其中有多少是您真正希望在投資組合中擁有的房地產。所以我想你並沒有積極收購辦公資產。您能否分享一下，其中有多少可能是您可能追求的零售遊戲等？

Yes, that's a great question, Harsh, and we did that when we talk about $4 trillion here in the U.S. and $8 trillion in Europe. And just to be also super clear about this particular statistics that we shared in the prepared remarks. It does not include other real estate companies. It does not include certain sectors like finance companies, banks, energy companies, et cetera, et cetera. These are operating businesses that have assets.

是的，這是一個很好的問題，哈什，當我們談論美國的 4 萬億美元和歐洲的 8 萬億美元時，我們就這樣做了。我也想非常清楚地了解我們在準備好的評論中分享的這一特定統計數據。不包括其他房地產公司。它不包括某些行業，如金融公司、銀行、能源公司等。這些是擁有資產的經營企業。

And an easy way to think about it is, let's assume that half of it is office. Let's assume that another 20% of it is something that we wouldn't want. Even if it is 20% or 30% of this $1.6 trillion, that is a massive number. And the point is that these are companies that are going to have to refinance their debt, this $1.2 trillion of debt over the next 3 years. It's maturing over the next 3 years. And sale leaseback should be a conversation that is appealing to them, especially given the cost of doing a sale leaseback today in this environment versus the cost of refinancing that a lot of these companies are going to experience. That's really the point.

一個簡單的思考方法是，我們假設其中一半是辦公室。假設另外 20% 是我們不想要的。即使是這1.6萬億美元的20%或30%，這也是一個龐大的數字。關鍵是，這些公司將不得不在未來 3 年內為其債務進行再融資，即 1.2 萬億美元的債務。未來3年將趨於成熟。售後回租應該是一個對他們有吸引力的話題，特別是考慮到當今在這種環境下進行售後回租的成本與許多此類公司將要經歷的再融資成本。這才是重點。

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

我們的問答環節到此結束。我想將會議轉回給蘇米特·羅伊 (Sumit Roy) 發表閉幕詞。

Thank you all for joining us today. We're looking forward to seeing many of you at the various conferences this fall. Have a good rest of your summer. Bye-bye.

感謝大家今天加入我們。我們期待在今年秋天的各種會議上見到你們中的許多人。祝你夏天好好休息。再見。

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

會議現已結束。感謝您參加今天的演示，您現在可以斷開連接了。