Realty Income Corp (O) 2023 Q3 法說會逐字稿

Good day, and welcome to the Realty Income Third Quarter 2023 Earnings Conference Call.

美好的一天，歡迎參加房地產收入 2023 年第三季財報電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Tyler Grant, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係部門的泰勒·格蘭特。請繼續。

Thank you all for joining us today for Realty Income's Third Quarter Operating Results Conference Call. Discussing our results will be Sumit Roy, President and Chief Executive Officer; and Jonathan Pong, Senior Vice President, Head of Corporate Finance.

感謝大家今天參加 Realty Income 第三季經營業績電話會議。總裁兼執行長 Sumit Roy 將討論我們的結果； Jonathan Pong，資深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 law. The company's actual future results may differ significantly from the matters discussed in any forward-looking statements. We will disclose in greater detail the factors that may cause such differences in the company's Form 10-Q.

在本次電話會議期間，我們將發表根據聯邦證券法可能被視為前瞻性聲明的聲明。本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有重大差異。我們將在公司的 10-Q 表格中更詳細地揭露可能導致此類差異的因素。

We will 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.

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。如果您想詢問其他問題，可以重新進入佇列。

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

我現在將把電話轉給我們的執行長 Sumit Roy。

Thank you, Tyler. Welcome, everyone. We are proud of the solid execution we've delivered on our strategy in the third quarter and maintain a favorable outlook for our business.

謝謝你，泰勒。歡迎大家。我們對第三季策略的紮實執行感到自豪，並保持良好的業務前景。

Our One Team at Realty Income continues to work diligently toward delivering strong results to our clients and stakeholders. The resilience, tenacity and range of our One Team has been impressive, culminating in the signing of the merger agreement with Spirit Realty, which we announced last week. This followed a quarter in which we invested $2 billion in high-quality acquisitions, raised over $2 billion in long-term and permanent capital, re-leased 284 properties at a 106.9% recapture rate, supporting an increase to our 2023 AFFO per share guidance range, which now stands at $3.98 to $4.01. I would like to thank our One Team for their leadership, efforts and dedication on behalf of all of whom we serve.

我們 Realty Income 的一支團隊繼續努力工作，為我們的客戶和利害關係人提供強勁的成果。我們的 One Team 的韌性、韌性和範圍令人印象深刻，最終我們上週宣布與 Spirit Realty 簽署了合併協議。在此之後的一個季度中，我們投資了20 億美元進行高品質收購，籌集了超過20 億美元的長期和永久資本，以106.9% 的回收率重新出租了284 處房產，支持我們提高2023 年AFFO每股指引範圍，目前為 3.98 美元至 4.01 美元。我要代表我們所服務的所有人感謝我們的 One Team 的領導、努力和奉獻。

Our third quarter results demonstrate the consistency of our earnings profile through varying economic environments and the attractive internal growth of our high-quality real estate portfolio while highlighting the capabilities of our One Team and platform. Notwithstanding the challenging capital markets backdrop, AFFO per share grew 4.1% from last year to $1.02 per share. Combined with our dividend, we are pleased to have delivered an annualized total operational return up approximately 9%.

我們第三季的業績證明了我們在不同的經濟環境下獲利狀況的一致性以及我們優質房地產投資組合有吸引力的內部成長，同時凸顯了我們 One Team 和平台的能力。儘管資本市場背景充滿挑戰，AFFO 每股仍比去年增長 4.1%，達到每股 1.02 美元。結合我們的股息，我們很高興實現年化總營運回報率成長約 9%。

As announced last week, we entered into a definitive merger agreement with Spirit Realty in an all-stock transaction valued at $9.3 billion. The deal is expected to be immediately accretive to AFFO per share on a leverage-neutral basis with -- without requiring any external capital to fund the merger. The accretion from the transaction, once completed, creates the foundation for AFFO per share growth in the coming year and puts us in a unique situation where we've had good visibility to an attractive forward earnings growth rate potential 2 months prior to the start of the new year.

正如上周宣布的那樣，我們與 Spirit Realty 達成了最終合併協議，全股票交易價值 93 億美元。該交易預計將在槓桿中性的基礎上立即增加 AFFO 每股收益，且無需任何外部資本為合併提供資金。一旦交易完成，將為 AFFO 每股成長奠定基礎，並使我們處於獨特的境地，在交易開始前 2 個月，我們就可以很好地看到有吸引力的預期盈利增長潛力。新的一年。

Given that, that, of course, remains a fair amount of uncertainty in the capital markets environment, the accretion from the Spirit transaction is made more compelling given the lack of capital markets risk we are absorbing to effectuate this outcome.

當然，考慮到資本市場環境仍然存在相當大的不確定性，鑑於我們為實現這一結果而吸收的資本市場風險不足，精神交易的增值就變得更加引人注目。

In fact, we believe our conservative underwriting of the portfolio provides for meaningful upside potential to our headline accretion expectations. We believe Spirit's portfolio is complementary to ours and we help to further diversify our industry, client and property concentrations. We expect our increased size, diversification, trading liquidity and overall presence in the market will enable us to access the capital markets even more efficiently, while also improving our ability to digest larger deals without creating concentration issues within our portfolio.

事實上，我們相信，我們對投資組合的保守承銷為我們的整體成長預期提供了有意義的上行潛力。我們相信 Spirit 的產品組合與我們的產品組合是互補的，我們有助於進一步實現我們的行業、客戶和財產集中度的多元化。我們預計，我們的規模、多元化、交易流動性和市場整體影響力的擴大將使我們能夠更有效地進入資本市場，同時也提高我們消化更大交易的能力，而不會在我們的投資組合中造成集中度問題。

We are excited about the attractive cost basis, earnings accretion and enhanced ability to buy in bulk that will be effectuated through this transaction. I would like to express great appreciation for the Spirit and Realty Income teams given their hard work and collaboration, which enabled us to successfully progress the transaction.

我們對透過此交易實現的有吸引力的成本基礎、收益成長和增強的批量購買能力感到興奮。我謹向 Spirit 和 Realty Income 團隊表示衷心感謝，感謝他們的辛勤工作和協作，使我們能夠成功推進交易。

In the third quarter, we invested approximately $2 billion in high-quality real estate investments leased to a diversified group of clients at a 6.9% initial cash yield. $1.4 billion of this total was derived from the international business at a 6.9% yield. Investments in the quarter were made across 132 discrete transactions.

第三季度，我們投資了約 20 億美元的優質房地產投資，以 6.9% 的初始現金收益率出租給多元化的客戶群。其中 14 億美元來自國際業務，收益率為 6.9%。本季的投資涉及 132 筆離散交易。

I would highlight that our volume include 34 sale-leaseback transactions for $1.3 billion of volume and 6 deals that were greater than $50 million in size. This demonstrates that both the corporate sale leaseback and larger transaction initiatives remained advantageous for us during the quarter. A testament to our ability to source, negotiate and close on transactions that are less trafficked amongst other net lease companies, both public and private.

我要強調的是，我們的交易量包括 34 筆售後回租交易，交易額為 13 億美元，還有 6 筆交易規模超過 5,000 萬美元。這表明，公司售後回租和更大的交易措施在本季仍然對我們有利。這證明了我們有能力尋找、談判和完成其他淨租賃公司（無論是公共還是私人）中交易量較少的交易。

Our investment activity year-to-date is $6.8 billion, with investments in international markets representing approximately 1/3 of this total. Investment spreads realized during the quarter were over 100 basis points when calculating our WACC on a leverage-neutral basis and using the cost of equity and debt actually executed during the quarter. This is a decline of 30 basis points from last quarter, which is a result of the significant increase in the cost of capital felt across the capital markets in a short amount of time.

我們今年迄今的投資活動為 68 億美元，其中國際市場投資約佔總額的 1/3。在槓桿中性的基礎上並使用本季實際執行的股權和債務成本計算 WACC 時，本季實現的投資利差超過 100 個基點。較上季下降30個基點，是資本市場短期內資金成本大幅上升的結果。

To put it into context, the average 10-year yield increased by approximately 55 basis points from Q2 to Q3. Following the sharp changes in the public debt and equity markets during the quarter, the private market cap rates have not adequately adjusted. Accordingly, we believe that it is particularly important to be disciplined and patient allocators of capital and ensuring that we are appropriately compensated for the capital we provide. We are confident in our ability to source and allocate capital in scale and with efficiency, and we are deeply focused on delivering attractive risk-adjusted returns to our shareholders.

綜合來看，10 年期公債平均殖利率從第二季到第三季增加了約 55 個基點。隨著本季公共債務和股票市場的急劇變化，私募市場資本化率尚未充分調整。因此，我們認為，成為紀律嚴明、耐心的資本配置者並確保我們提供的資本得到適當的補償尤為重要。我們對大規模、有效率地獲取和分配資本的能力充滿信心，並且我們專注於為股東提供有吸引力的風險調整回報。

Given the level of transactions completed in the first three quarters of the year, combined with an outlook for narrowed investment spreads, we are modestly increasing our investment guidance to approximately $9 billion for 2023, which excludes the Spirit transaction that is anticipated to close in 2024. This increased target reflects deals that we already had in the closing pipeline prior to the recent surge in our cost of capital.

鑑於今年前三個季度完成的交易水平，再加上投資利差收窄的前景，我們將 2023 年的投資指導適度提高至約 90 億美元，其中不包括預計將於 2024 年完成的 Spirit 交易這一增加的目標反映了我們在最近資本成本飆升之前已經在關閉管道中的交易。

With the sharp recent changes in cost of capital, we remain highly selective in pursuing new investment opportunities and will assertively hold the line on entering into any new transactions unless we can be assured of generating ample spreads to our cost of capital.

隨著近期資本成本的急劇變化，我們在尋求新的投資機會時仍會保持高度選擇性，並將堅定地堅持進行任何新交易，除非我們能確保產生足夠的資本成本利差。

From an operating perspective, our portfolio continues to be healthy and performed well. At the end of the quarter, occupancy was 98.8%. This is down slightly from last quarter's historically high occupancy level of 99%, and it is a result of expected client move-outs. Rent recapture rates across 284 new and renewed leases was 106.9%. This outcome is better than our historical average of 102.3% and results in year-to-date rent recapture of 104.3% on 661 new and renewed leases.

從營運角度來看，我們的投資組合持續健康且表現良好。截至本季末，入住率為98.8%。這比上季 99% 的歷史最高入住率略有下降，這是預期客戶遷出的結果。 284 個新租約和續約租約的租金收回率為 106.9%。這一結果優於我們 102.3% 的歷史平均水平，並導致年初至今 661 個新租約和續租租約的租金回收率為 104.3%。

I would highlight that since 1996, we have managed over 5,300 lease expirations. And the improving recapture rates in recent years is a testament to our asset management expertise and the unparalleled historical data we have at our disposal. This competitive advantage enhances the quality of our asset management decisions through unique insights gleaned from our proprietary data analytics platform.

我要強調的是，自 1996 年以來，我們已經管理了 5,300 多個租約到期事件。近年來回收率的提高證明了我們的資產管理專業知識和我們擁有的無與倫比的歷史數據。這種競爭優勢透過從我們專有的數據分析平台收集的獨特見解提高了我們資產管理決策的品質。

Our credit watch list represents 2.5% of our annualized base rent as of the end of the quarter. This is a decline of 120 basis points from the second quarter and is primarily the result of removing Cineworld from the watch list following our amendment, which became effective on October 1.

截至本季末，我們的信用觀察名單佔年化基本租金的 2.5%。這比第二季度下降了 120 個基點，主要是由於我們的修正案於 10 月 1 日生效後將 Cineworld 從觀察名單中刪除。

We recovered 60% of prior base rent on our 41 locations without any capital contributions. Importantly, we also negotiated the ability to recover rent through percentage rent agreements, which could give us the ability to recapture a total of 70% of prior rent based on our internal estimates of performance.

我們在 41 個地點收回了之前基本租金的 60%，無需任何出資。重要的是，我們還協商了透過百分比租金協議收回租金的能力，這使我們能夠根據我們內部的業績估計收回先前租金的 70%。

Finally, with the reinvestment of certain asset sales, we expect to recapture a total of approximately 85% of prior rent. Same-store rent grew at an elevated rate of 2.2%. We continue to generate increasing higher average rent escalators within the portfolio due to our commitment to investing in leases with stronger rent escalators particularly in international markets where we have a relatively outsized number of leases with uncapped inflation escalators. The better-than-expected same-store rent growth in the quarter has enabled us to raise our full year guidance to approximately 1.5%.

最後，隨著某些資產出售的再投資，我們預計將總共收回約 85% 的先前租金。同店租金增幅高達 2.2%。由於我們致力於投資具有更強租金自動扶梯的租賃，特別是在國際市場上，我們在投資組合中繼續產生越來越高的平均租金自動扶梯，在國際市場上，我們擁有相對大量的無上限通貨膨脹自動扶梯的租賃。本季同店租金成長優於預期，使我們能夠將全年指引提高至約 1.5%。

With that, I would like to turn the call over to Jonathan.

說到這裡，我想把電話轉給喬納森。

Thank you, Sumit. Discipline and a commitment to our A3/A- credit ratings continue to be our priorities from a balance sheet management perspective.

謝謝你，蘇米特。從資產負債表管理的角度來看，紀律和對 A3/A- 信用評級的承諾仍然是我們的首要任務。

During the third quarter, our net debt to annualized pro forma adjusted EBITDA and fixed charge coverage ratios, each fell by 1/10 of a turn to 5.2x and 4.5x, respectively. In the third quarter, we issued $886 million of equity primarily through our ATM program, while ending the quarter with $749 million of unsettled forward equity outstanding. Combined with cash on hand with $344 million and net availability on our credit facility of $3.4 billion, we ended the quarter with $4.5 billion of liquidity.

在第三季度，我們的淨債務與年化預估調整後 EBITDA 和固定費用覆蓋率分別下降了 1/10，分別為 5.2 倍和 4.5 倍。第三季度，我們主要透過 ATM 計畫發行了 8.86 億美元的股本，而本季結束時，未結算的遠期股本為 7.49 億美元。加上 3.44 億美元的手頭現金和 34 億美元的可用信貸額度，本季末我們的流動資金為 45 億美元。

As we look forward to future capital raising needs, we continue to have rate protection on $1 billion of notional value to hedge against a rising 10-year yield. We purchased this protection in the form of a derivative instrument called a swaption corridor, which effectively limits our rate exposure on a future note issuance at an option premium below the cost of a regular way vanilla option. We purchased this option in late March when a 10-year yield was in the 3.5% area. And as of quarter end, the net value of the swaptions had a mark-to-market value of approximately $25 million.

當我們期待未來的融資需求時，我們繼續對 10 億美元的名目價值提供利率保護，以對沖 10 年期殖利率上升的風險。我們以一種稱為互換期權走廊的衍生工具的形式購買了這種保護，它有效地限制了我們未來票據發行的利率風險，期權溢價低於常規方式普通期權的成本。我們在 3 月下旬購買了該選擇權，當時 10 年期公債殖利率在 3.5% 左右。截至季末，掉期選擇權的淨值以市值計算約為 2,500 萬美元。

As Sumit mentioned previously, the Spirit transaction provides us with the opportunity for meaningful earnings accretion in the coming years. From a balance sheet perspective, the Spirit team has done a great job in curating a well-laddered debt maturity schedule, which limits our future refinancing risk in any given year.

正如 Sumit 之前提到的，Spirit 交易為我們提供了在未來幾年實現有意義的獲利成長的機會。從資產負債表的角度來看，Spirit 團隊在製定完善的債務到期時間表方面做得很好，這限制了我們未來任何一年的再融資風險。

As we have experienced throughout the company's history, the global rate environment provides both headwinds and tailwinds in any given year, which is why the assumption of balance fixed rate debt stack that is spread fairly ratably from 2025 through 2032, provides us with extended financial benefits with manageable refinancing risk.

正如我們在公司歷史上所經歷的那樣，全球利率環境在任何一年都會帶來逆風和順風，這就是為什麼假設平衡固定利率債務堆疊在2025 年至2032 年期間相當比例地分佈，為我們提供了擴展的財務收益再融資風險可控。

When giving effect to the combined debt maturity stack, we estimate that there will not be a year when more than 12% of our total fixed rate debt comes due. Similar to the Complementary real estate portfolio, Spirits debt stack is also a good fit with our existing maturity schedule, and we expect the continued debt stack or the combined debt stack to remain well laddered, giving us numerous opportunities to engage in opportunistic liability management exercises when prudent and economically advantageous to do so.

在實施合併債務到期堆疊時，我們估計不會有一年超過固定利率債務總額的 12% 到期。與補充房地產投資組合類似，烈酒債務堆疊也非常適合我們現有的到期時間表，我們預計持續債務堆疊或合併債務堆疊將保持良好的階梯狀，為我們提供大量機會參與機會主義負債管理活動在謹慎且經濟上有利的情況下這樣做。

When I -- finally, I would like to thank all of our team members who have worked so incredibly hard in helping to support this transaction, and we will continue to be integral as we move towards close an integration.

最後，我要感謝我們所有的團隊成員，他們為支持這項交易付出了巨大的努力，在我們走向緊密整合的過程中，我們將繼續成為不可或缺的一部分。

With that, I would like to turn it back to Sumit.

說到這裡，我想把它轉回蘇米特。

Thank you, Jonathan. In conclusion, as further demonstrated in the quarter, Realty Income has a well-established growth-focused business model that provides stable and predictable cash flows to fund the payout of our monthly dividend. We believe the platform we have created, evolved and refined is not easily replicable.

謝謝你，喬納森。總而言之，正如本季進一步證明的那樣，房地產收入擁有完善的以成長為中心的業務模式，可以提供穩定且可預測的現金流來為我們每月股息的支付提供資金。我們相信我們創建、發展和完善的平台不容易複製。

We have a long history of prudently allocating capital that is complemented by our industry-leading capital leasing abilities that we used to invest across properties that fall within our well-defined investment criteria. The results of our efforts have produced our net lease portfolio that consists of more than 13,200 properties diversified across property types, industries, geographies and clients.

我們擁有審慎分配資本的悠久歷史，並輔以我們行業領先的資本租賃能力，我們利用這些能力對符合我們明確投資標準的房產進行投資。我們的努力成果造就了我們的淨租賃投資組合，其中包括 13,200 多個物業，涵蓋不同的物業類型、產業、地區和客戶。

We're excited for the future of our business. Our anticipated acquisition of Spirit provides a solid building block for growth as we head into 2024 and our existing portfolio continues to perform well. As such, we find ourselves in a favorable position to produce high single or low double-digit operational returns while offering the same stability that has defined this platform for decades.

我們對我們業務的未來感到興奮。我們預計對 Spirit 的收購將為我們邁入 2024 年的成長奠定堅實的基礎，並且我們現有的投資組合將繼續表現良好。因此，我們發現自己處於有利地位，可以產生高個位數或低兩位數的營運回報，同時提供數十年來定義平台的相同穩定性。

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

這時候我們就可以打開提問了。操作員？

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

（操作員說明）今天的第一個問題來自美國銀行的 Joshua Dennerlein。

Maybe just going back to some of the opening remarks on the re-leasing the spreads. Just curious what drove that historically better than -- or the releasing spread is better than the historical run rate? And then just how should we think about that going forward?

也許只是回到關於重新出租利差的一些開場白。只是好奇是什麼推動了歷史上比歷史運行率更好的——或者釋放利差比歷史運行率更好？那我們該如何思考未來呢？

Yes. Great question, Josh. A lot of this was driven by our non-retail re-leasings. And you can see the breakout, I think we provide that in the supplemental, it was closer to 140% in terms of re-leasing spreads. It was also largely driven by this one very large industrial distribution center that we released to a new client. If you looked at just the retail side of the equation, that was closer to 104%, which is still slightly better than average. And I think a lot of this is really what I said in my opening remarks, the more assets we control, the kind of conversations that we can enter into with our clients is a different one.

是的。好問題，喬許。這很大程度上是由我們的非零售轉租所推動的。你可以看到突破，我認為我們在補充中提供，就再租賃利差而言，它接近 140%。這在很大程度上也是由我們向新客戶發布的一個非常大的工業配送中心所推動的。如果您僅查看等式的零售方面，則接近 104%，仍然略高於平均水平。我認為其中很多內容確實是我在開場白中所說的，我們控制的資產越多，我們與客戶的對話就越不同。

One of the largest renewals was Circle K and where we looked at 100 of their assets, and we're able to enter into long-term lease discussions at very favorable rates. And that is what makes this platform so unique. The fact that we do control so many assets for some of these clients, the discussion we can have where if there is an asset that's not performing well, we are more than willing to give them a rent haircut but make that more than up across the portfolio and come up with a win-win situation for both parties.

最大的續約之一是 Circle K，我們檢視了他們的 100 項資產，並且能夠以非常優惠的價格進行長期租賃討論。這就是這個平台如此獨特的原因。事實上，我們確實為其中一些客戶控制著如此多的資產，我們可以進行討論，如果有一項資產表現不佳，我們非常願意給他們租金折扣，但在整個範圍內都可以做到這一點。組合，為雙方創造雙贏的局面。

And again, it's all about size and scale but I'd be remiss if I don't compliment the asset management team, the predictive analytics team that continues to refine the models and give scores on each asset, which gives the asset management team the confidence to then go in and negotiate knowing that these are assets that are performing well and therefore, warrant an increase. So I think it's a combination of all of those factors, Joshua, that we were able to realize 106.9% re-leasing spreads.

再說一次，這一切都與規模和規模有關，但如果我不讚揚資產管理團隊，即預測分析團隊，他們不斷完善模型並為每項資產評分，這為資產管理團隊提供了然後充滿信心地進行談判，因為知道這些資產表現良好，因此值得增加。 Joshua，我認為這是所有這些因素的結合，我們才能夠實現 106.9% 的再租賃利差。

Appreciate that color. Maybe just stepping back, how do you think about -- like your strategy? Is it something you want to lean into or you can try to get assets that get better internal growth going forward? Just curious.

欣賞那個顏色。也許退一步，您如何看待您的策略？這是你想要投入的東西還是你可以嘗試獲得能夠在未來獲得更好的內部成長的資產？只是好奇。

Yes. Obviously, what this is implying, Josh, is that if there are assets that we believe based on some of the things that I just shared with you, that we can do better than the current in-place rent. We are going to take a bit of a different stance and try to take control of those assets, especially if the existing client is looking for a rent haircut, et cetera. Which obviously, we may have a bit of a negative drag on occupancy levels because we want to take control and despite our best efforts, sometimes when you take control, there's a bit of a lag time between getting this new client into this building at that elevated rents.

是的。顯然，喬什，這意味著，如果我們根據我剛剛與您分享的一些事情相信有資產，那麼我們可以做得比當前的就地租金更好。我們將採取一些不同的立場，並嘗試控制這些資產，特別是如果現有客戶正在尋求租金折扣等。顯然，我們可能會對入住率產生一些負面影響，因為我們想要控制，儘管我們盡了最大努力，但有時當你控制住時，在讓這個新客戶進入這座大樓之間會有一點滯後時間租金上漲。

But for us, the bottom line is going to be about creating better economics on rent recapture and at a small expense on the occupancy side, if that's what's going to be needed to do that. So going forward, you will see us continue to push this strategy and continue to show to the market that we do have a differentiated asset management platform.

但對我們來說，底線是在租金收回方面創造更好的經濟效益，並在入住方面付出少量費用，如果這是需要做到這一點的話。因此，展望未來，您將看到我們繼續推動這項策略，並繼續向市場展示我們確實擁有差異化的資產管理平台。

The next question comes from Nate Crossett with BNP.

下一個問題來自法國巴黎銀行 (BNP) 的內特·克羅塞特 (Nate Crossett)。

Maybe you could just talk about the current pipeline. What do the yields look like right now? And then also, how big is the Spirit pipeline? What are those yields look like?

也許你可以只談談目前的管道。現在的收益率怎麼樣？還有，精神管道有多大？這些收益率是什麼樣的呢？

Yes. I'm not going to speak to Spirit because it's not a transaction that we've closed on yet. So I'll speak very much to the pipeline that we have, Nate. And as you can tell, we obviously have a very healthy pipeline. We just increased the acquisitions to approximately $9 billion, which is an increase from where we were at the end of the third quarter.

是的。我不會與 Spirit 交談，因為這不是我們尚未完成的交易。因此，內特，我將詳細介紹我們現有的頻道。如您所知，我們顯然擁有非常健康的管道。我們剛剛將收購金額增加到約 90 億美元，這比第三季末有所增加。

And again, these are very similar to what we showed you in the third quarter. If you look at some of the largest transactions we did, they were -- with grocery operators in the U.K., it was Asda and Morrisons, both names that we like and we're able to get these very large transactions, Asda I believe was close to a $900 million transaction. Morrisons slightly smaller, closer to $170 million sale-leaseback. Both of these were sale-leasebacks and done purely on a negotiated basis. That type of transaction is what you're going to see when we get those over the finish line in the fourth quarter. Those are the types of transactions that we have in our pipeline today.

同樣，這些與我們在第三季向您展示的非常相似。如果你看我們做過的一些最大的交易，它們是——與英國的雜貨經營商，是阿斯達和莫里森，這兩個名字都是我們喜歡的，我們能夠獲得這些非常大的交易，我相信阿斯達是交易金額接近 9 億美元。莫里森規模稍小，售後回租接近 1.7 億美元。這兩項都是售後回租，純粹是在協商的基礎上完成的。當我們在第四季度完成這些交易時，您將看到這種類型的交易。這些就是我們今天正在處理的交易類型。

Some of the comments I've made around cap rates moving but not moving commensurate with our cost of capital movement remains true. The other piece that I will overlay is the fact that some of these transactions that we have in our pipeline were created 6 to 9 months ago. And so people may have questions, "Oh, how come you were only able to get a 6.9% cash cap rate?" which, by the way, if you look at it on a straight-line basis, it's almost 8.1% and just given the inherent growth in these leases and to make it equivalent to some of the other data that is shown by some of our peers.

我對資本化率變動但與我們的資本成本變動不相稱的一些評論仍然是正確的。我要強調的另一件事是，我們管道中的一些交易是在 6 到 9 個月前創建的。所以人們可能會有疑問，“哦，為什麼你們只能獲得 6.9% 的現金上限？”順便說一句，如果你以直線法來看，它幾乎是 8.1%，而且考慮到這些租賃的固有增長，並使其與我們的一些同行顯示的其他一些數據相當。

Has the growth profile that we are targeting, but potentially is not reflective, which was obviously shown in the spreads that we were able to recapture 105 basis points, which is about 30 basis points inside of what we did in the second quarter. And that goes to the point I'm making is that cap rates, though adjusting, are adjusting much, much more slowly than our cost of capital.

具有我們目標的成長狀況，但可能不具有反映性，這一點在我們能夠重新奪回 105 個基點的利差中得到了明顯體現，這比我們在第二季度所做的大約 30 個基點。我要說的一點是，資本化率雖然在調整，但調整速度比我們的資本成本慢很多。

And so this is a time where going forward, we are going to be hyper selective. But the makeup of the fourth quarter will be very similar. You should see a movement in cap rates in the right direction, i.e. higher cap rates and more reflective of when these transactions were essentially came on to the pipeline, which started to reflect the more rapid movement in our cost of capital. So that's what you should see. It's obviously fairly healthy. But thankfully, we've raised a fair amount of capital through the ATM, et cetera, already.

因此，在這個時代，我們將變得高度選擇性。但第四季的妝容將會非常相似。你應該看到資本化率朝著正確的方向變化，即資本化率更高，更能反映這些交易實質上何時進入管道，這開始反映出我們資本成本的更快變化。這就是你應該看到的。這顯然是相當健康的。但值得慶幸的是，我們已經透過 ATM 等籌集了相當多的資金。

Just one on the Bellagio, I just wanted to ask like what is your appetite to do investments where you don't own the asset 100%, whether it's a JV or a loan? And is there anything in the pipeline that is a JV?

就 Bellagio 而言，我只是想問一下，如果您沒有 100% 擁有該資產，您對進行投資的興趣是什麼，無論是合資企業還是貸款？是否有合資企業正在醞釀中？

Off the top of my head, outside of the Bellagio transaction, I don't believe we have a JV structure in the pipeline. Similar to the way we structured the Bellagio transaction. We do tend to have JVs with developers where they hold on to a small stake in the development while developing the assets, et cetera, but we generally tend to be the takeout on the back end. But I don't think, Nate, and correct me if I'm wrong, that you meant those types of JVs. You were talking about more permanent JV structures like the one that we've entered into with Bellagio. I don't believe we have one like that.

在我的腦海中，除了貝拉吉歐交易之外，我不相信我們正在醞釀合資企業結構。與我們建立 Bellagio 交易的方式類似。我們確實傾向於與開發商建立合資企業，他們在開發資產等時持有開發項目的少量股份，但我們通常傾向於成為後端的外賣者。但我不認為，內特，如果我錯了，請糾正我，你指的是那些類型的合資企業。您剛才談論的是更永久的合資企業結構，例如我們與貝拉吉奧 (Bellagio) 簽訂的合資企業結構。我不相信我們有這樣的人。

There is one -- there are products out there, by the way, that do lend themselves to this JV structure. There are asset classes that require a tremendous amount of capital where we will be more than forthcoming about entering into a JV, just given the sheer amount of capital required. But those are going to be very specific to a very specific asset type, and I would put casinos in that bucket and perhaps some other asset types that lends itself to this. But as of right now, we don't have other JVs that we've entered into.

順便說一下，有一些產品確實適合這種合資結構。有些資產類別需要大量資本，考慮到所需的資本金額，我們非常願意建立合資企業。但這些將是針對特定資產類型的，我會將賭場和其他一些適合於此的資產類型放在這個桶中。但截至目前，我們還沒有建立其他合資企業。

Okay. So like what are the other asset types like? Would data centers be on that list? I'm just curious.

好的。那麼其他資產類型是什麼樣的呢？資料中心會在該清單中嗎？我只是好奇。

Yes. Data centers is certainly an asset type that will require, based on this influx of AI, et cetera. It's an asset type that will have a massive requirement in terms of capital. I could see if we choose to go into that area, that's an area that JV-ing with an operator would make perfect sense.

是的。基於人工智慧等的湧入，資料中心無疑是一種需要的資產類型。這是一種對資本有大量需求的資產類型。我可以看到，如果我們選擇進入該領域，那麼與營運商合資是非常有意義的。

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

下一個問題來自 Mizuho 的 Haendel St. Juste。

So Sumit, I guess first question for you is on the composition of the transaction in the third quarter. The share of Europe was historically high. The high-grade share and cap rates seemed low. Understanding there is a little bit of a lag at least on the cap rate. But I guess I'm curious if you can help us square some of that and maybe perhaps offer any commentary or facts and figures that would help ease any concern regarding the quality of the assets you're buying? And if we should expect Europe to continue playing a greater role near term?

所以 Sumit，我想你的第一個問題是關於第三季交易的組成。歐洲的份額處於歷史最高水準。高等級股票和資本化率似乎很低。了解至少在資本化率方面存在一點滯後。但我想我很好奇您是否可以幫助我們解決其中的一些問題，也許可以提供任何評論或事實和數據，以幫助減輕對您所購買資產品質的擔憂？我們是否應該期望歐洲在短期內繼續發揮更大的作用？

Sure. So you tell me, if buying Asda and Morrisons is diluting the quality of the asset pool at realty income handle. I think we've tried to answer this question before that we do not target investment grade. What we are looking for are assets that we believe are priced and have a profile of generating a return that is on a risk-adjusted basis, the right return profile. That is how we think about the world.

當然。所以你告訴我，購買阿斯達和莫里森是否會稀釋房地產收入控制下的資產池品質。我認為我們之前已經嘗試過回答這個問題，但我們並不以投資等級為目標。我們正在尋找的是我們認為已定價的資產，並且能夠在風險調整的基礎上產生正確的回報。這就是我們看待世界的方式。

And the fact that we are able to enter into these negotiated transactions with some of the best operators in the -- in U.K., I think is something we are very comfortable doing. And the fact that they don't have an investment-grade rating is not an issue for us given how we were able to price it, the fact that these are top quartile assets that we were able to get and have inherent growth profiles that will continue to pay dividend in years to come.

事實上，我們能夠與英國一些最好的運營商進行這些談判交易，我認為這是我們非常樂意做的事情。事實上，考慮到我們如何定價，它們沒有投資等級對我們來說不是問題，事實上，這些資產是我們能夠獲得的前四分之一資產，並且具有固有的成長特徵，未來幾年繼續派發股息。

So for us, it's looking at the entire investment in totality. To determine how much risk are we really taking on? What is the operator? Where are they in terms of positioning? How are they positioned within that particular sector? What is the actual real estate that we are getting? What is the performance of the 4 wall? I think those are the things that we focus on. And the fact that they turn out to be investment grade or not, is almost a byproduct of that analysis rather than something that we target.

所以對我們來說，它著眼於整體投資。確定我們真正承擔了多少風險？運營商是什麼？他們的定位在哪裡？他們在該特定領域的定位如何？我們得到的實際房地產是什麼？ 4牆的性能如何？我認為這些是我們關注的重點。事實上，它們是否是投資等級，幾乎是分析的副產品，而不是我們的目標。

And I think I've said this before but thank you for asking the question. I'll keep repeating this. I believe we had about 20% of our investments this quarter that was investment grade. But again, that could be in some quarters 40%, in some quarters it could even be less than that. And we will, of course, continue to share that information with you, but a portfolio that on a straight-line basis, generates 8 -- north of 8% yield. I think is something that we are very proud of, Haendel.

我想我之前已經說過這​​一點，但謝謝你提出這個問題。我會繼續重複這一點。我相信本季我們大約 20% 的投資是投資等級的。但同樣，在某些季度，這個比例可能是 40%，在某些季度，甚至可能低於這個數字。當然，我們將繼續與您分享這些信息，但以直線計算的投資組合會產生 8% 的收益率。我認為這是我們非常自豪的事情，亨德爾。

Okay. I certainly appreciate that, Sumit. And maybe one follow-up perhaps for Jon, a question on the reserves. I think there's been about $11 million of reserve reversal year-to-date. Can you clarify what's assumed in the 4Q guide, which includes the Cineworld restructuring and if we should expect any reversals in 2024?

好的。我當然很感激，蘇米特。也許喬恩還有一個後續行動，一個關於儲備的問題。我認為今年迄今已有約 1,100 萬美元的儲備金逆轉。您能否澄清第四季度指南中的假設，其中包括 Cineworld 重組以及我們是否應該預期 2024 年會出現任何逆轉？

Haendel, no -- nothing that you should expect for the fourth quarter, pretty much all of the reserve reversals that were significant have been taken as of the third quarter. You may have seen in our same-store rent growth slide in the supplement that we saw a bit of a bump in health and fitness and that was really related to one more regional client that we reserved -- or reverse to reserve off of.

亨德爾，不——第四季沒有什麼值得期待的，幾乎所有重大的準備金逆轉都已在第三季度進行。您可能已經在我們的補充品中看到了同店租金增長下滑，我們看到健康和健身方面出現了一些上升，這確實與我們預訂的另一個區域客戶有關，或者相反，要預訂掉。

As we look forward into 2024, nothing lumpy from that standpoint that would be on the radar. As we think about just bad debt expense in general, modeling out the following year, we always have some semblance of an unidentified reserve that we put in there just given our history. And we're obviously very conservative on that front. And I think we've said this before, but we've historically realized about a 25-basis point credit loss in the portfolio at any given year.

當我們展望 2024 年時，從這個角度來看，不會有任何不穩定的情況。當我們考慮一般的壞帳費用時，在下一年建模時，我們總是有一些類似的未確定的準備金，我們只是根據我們的歷史存入其中。我們在這方面顯然非常保守。我想我們之前已經說過這​​一點，但從歷史上看，我們已經意識到投資組合在任何一年都會出現 25 個基點的信用損失。

The next question comes from Michael Goldsmith with UBS.

下一個問題來自瑞銀集團的麥可‧戈德史密斯。

Sumit, you used the term hyper selective in your opportunity -- you used the terms hyper selective in term how you're going to approach the next year, can you kind of define what hyper selective means? And does that mean that you would only look at for opportunities greater than the 100-basis point of investment trends that you saw this quarter?

蘇米特，你在機會中使用了「超選擇性」這個詞——你在明年將如何對待這個術語中使用了「超選擇性」這個術語，你能定義一下「超選擇性」的含義嗎？這是否意味著您只會尋找大於本季投資趨勢 100 個基點的機會？

That's a great question, Michael. Look, I think, if you look at where we are today and you look a year ahead in 2024, we believe that without having to rely on the equity capital markets, we'll be able to deliver approximately 4% to 5% AFFO per share growth. And that is a pretty powerful statement to make, and that obviously assumes that the Spirit transaction closes either in the first month, either in January or in February. And with just the free cash flow that we are going to generate pro forma, which is going to be right around $800 million, some of the headwinds that we are going to experience in the refinancing, absorbing all of that to be able to sit here today and say that we could deliver that growth without having to raise $1 of equity, I think it's a very good place to be.

這是一個很好的問題，邁克爾。我認為，如果你看看我們今天的處境，並展望 2024 年的未來，我們相信，在不必依賴股權資本市場的情況下，我們將能夠為每人提供大約 4% 至 5% 的 AFFO分享成長。這是一個非常有力的聲明，而且顯然假設 Spirit 交易在第一個月（一月或二月）結束。僅憑我們預計將產生的自由現金流約為 8 億美元，我們將在再融資中遇到一些阻力，吸收所有這些阻力才能坐在這裡今天，我們可以實現這種增長，而無需籌集1 美元的股本，我認為這是一個非常好的地方。

And so when I said about being hyper selective, what has happened more recently is that the cost of capital has moved so dramatically, so quickly that the cap rates haven't had a chance to sort of adjust. And so we find ourselves in this -- like I said, in the second quarter, we had about 135 basis points of spread. And then in this quarter, we have 105 basis points of spread. It's a tough environment to be in when we are entering into transactions 6 months, 7 months in advance of closing a transaction and the cap rate environment -- I mean, the cost of capital environment changes and when you are permanently financing it, it sort of eats into what you had originally underwritten. That is what I meant when I said we want to be hyper selective because we want to help drive the cap rates out to help accommodate for these unforeseen movements in the cost of capital.

因此，當我談到過度選擇性時，最近發生的情況是，資本成本變化如此之大、如此之快，以至於上限利率沒有機會進行調整。所以我們發現自己陷入了這樣的境地——就像我說的，在第二季度，我們的利差約為 135 個基點。然後在本季度，我們有 105 個基點的利差。當我們在完成交易前6 個月、7 個月進行交易以及上限利率環境時，這是一個艱難的環境- 我的意思是，資本成本環境發生變化，當你永久為其融資時，它會發生變更會佔用您最初承保的費用。這就是我所說的，我們要高度選擇性，因為我們希望幫助降低資本化率，以適應這些不可預見的資本成本變動。

And so clearly, the cap rates haven't adjusted as much and that's what I said -- that's what I mean when I say we want to be hyper selective. We want to wait for the cap rates to adjust to make sure that we can get the spreads that we have historically achieved. That was really the color behind that comment.

很明顯，資本化率沒有調整那麼多，這就是我所說的——這就是我說我們想要高度選擇性的意思。我們希望等待上限利率調整，以確保我們能夠獲得歷史上實現的利差。這確實是該評論背後的色彩。

That's really helpful. And then as I follow up, occupancy took a slight step back but still well above your guidance range. So can you just talk about what you're seeing in the market in terms of pushing rents versus occupancy? And how that -- how's that drive -- or how you use that to drive maximize revenue overall?

這真的很有幫助。然後，當我跟進時，入住率略有下降，但仍遠高於您的指導範圍。那麼您能否談談您在市場上看到的租金與入住率的成長？以及如何——這種驅動力如何——或者你如何利用它來推動整體收入最大化？

Sure. That's a great follow-on question, Michael. So for us, we are looking at a particular real estate through the lens of maximizing revenue. And the revenue maximization strategy by its very definition, will mean that we are more than comfortable holding on to certain assets that are vacant for longer.

當然。這是一個很好的後續問題，邁克爾。因此，對我們來說，我們正在透過收入最大化的角度來看待特定的房地產。就其定義而言，收入最大化策略意味著我們更願意持有某些長期閒置的資產。

If we have concluded that there is a use for that particular location, and that it's not the very first client that comes in and gives us a rent proposal, but the kind of client that we are targeting and the client -- and a profile of rent that we are targeting, that takes time. And so we are more than comfortable taking a little bit of a hit on the occupancy side to make sure that we get the best revenue optimization for that given location.

如果我們得出結論，該特定位置有用途，並且不是第一個進來並向我們提供租金建議的客戶，而是我們的目標客戶類型以及客戶的個人資料我們的目標租金，這需要時間。因此，我們非常願意在入住率方面受到一點影響，以確保我們在該特定地點獲得最佳的收入優化。

And that's what you're going to see. That's the reason why even though we've been running the portfolio at 99% for the last 3 quarters, we have always maintained that our occupancy is going to be up slightly above 98%. Because that, we believe, is a natural state of occupancy for the business model that we are trying to run here.

這就是你將會看到的。這就是為什麼儘管過去 3 個季度我們的投資組合利用率一直保持在 99%，但我們始終堅持入住率將略高於 98%。因為我們相信，這是我們試圖在這裡運作的商業模式的自然佔用狀態。

And look, where it makes sense, we will continue to sell assets vacant if we believe that, that is the most economically desirable outcome, that holding on to those assets does have a cost, and that just continues to drag into the return profile. So selling assets vacant is also a strategy that we will continue to implement. So I just don't want you to start thinking now in terms of, hey, there will be no more vacant asset sales. All of those options are available to us, and we will pursue the one that generates the best revenue outcome.

看，在有意義的情況下，如果我們相信這是經濟上最理想的結果，那麼我們將繼續出售空置資產，持有這些資產確實會產生成本，而這只會繼續拖累回報率。所以出售空置資產也是我們會繼續實施的策略。所以我只是不想讓你現在開始思考，嘿，不會再有空置資產出售。所有這些選擇都可供我們選擇，我們將追求能夠產生最佳收入結果的選擇。

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

下一個問題來自加拿大皇家銀行資本市場的 Brad Heffern。

Sumit, European deal volume was a record this quarter after a period of time where it seemed like the region was maybe a bit slower to reflect the new reality. I'm wondering if Europe is back to competing for capital on sort of a heads-up basis with the U.S. or if this was just a one-off where you happen to have 2 large deals get over the finish line at the same time?

Sumit 表示，在該地區反映新現實的速度似乎有點慢之後，本季歐洲交易量創歷史新高。我想知道歐洲是否會重新與美國以單挑的方式爭奪資本，或者這只是一次性的，碰巧有兩筆大交易同時完成？

It's -- we've been talking about this -- these 2 transactions for a while now, Brad. So some of it's just taken a little bit longer to get this over the finish line. And some of it has been that cap rates do take a little bit longer to adjust in the international markets than they do here just because of the depth of the market here.

布拉德，我們已經討論這兩筆交易有一段時間了。所以有些事情只是需要更長的時間才能到達終點。其中一些原因是，由於這裡的市場深度，國際市場的資本化率確實比這裡需要更長的時間來調整。

You should continue to see a fair amount of product coming in from the international markets and that's reflected in our pipeline. But I always go back to when somebody asks at the beginning of the year, where do you think you're going to end up? We always say that it's right around that 30% to 40% will be the international investments. And 60% to 70% will be the U.S. And I think that is probably where we'll end up at the end of the year as well.

您應該繼續看到相當數量的產品來自國際市場，這反映在我們的管道中。但我總是會回想起年初有人問你，你認為自己最後會走向何方？我們總是說30%到40%左右是國際投資。 60% 到 70% 將來自美國，我認為這也可能是我們在今年年底的最終結果。

Okay. Got it. And then can you talk broadly about the attractiveness of the different capital sources. The $750 million in unsettled equity isn't quite as much as I would have thought, given you have the $3-plus billion to close by the end of the year. But I'm wondering if you're shifting to maybe a greater debt balance given where the relative costs of capital are.

好的。知道了。然後您可以廣泛地談論不同資本來源的吸引力嗎？ 7.5 億美元的未結算資產並沒有我想像的那麼多，因為到年底你還有超過 3 億美元的資金需要結清。但我想知道考慮到資本的相對成本，您是否會轉向更大的債務餘額。

Brad, it's Jonathan. So all options are available to us. Obviously, each one of them on a nominal or absolute basis isn't where we would want it to be. But I think the one thing to consider is we're always going to prioritize that 5.5x leverage, first and foremost. And so when you look at our equity costs, you compare it to our indicative cost of 10-year unsecured debt across all three currencies that we can operate in. There is a difference that isn't necessarily wider than usual but there is a bit of a gap, but we aren't going to sacrifice the balance sheet, we are going to lever up just to eke out a couple of extra tenth of a basis point of growth for next year.

布拉德，這是喬納森。所以我們可以選擇所有的選擇。顯然，從名義上或絕對的角度來看，它們中的每一個都不是我們希望的那樣。但我認為需要考慮的一件事是，我們始終會先優先考慮 5.5 倍槓桿。因此，當您查看我們的股權成本時，您可以將其與我們可以運營的所有三種貨幣的 10 年期無擔保債務的指示性成本進行比較。差異不一定比平常更大，但有一點差距，但我們不會犧牲資產負債表，我們將提高槓桿率，只是為了為明年爭取額外十分之幾個基點的成長。

So you could expect us to be very predictable from that standpoint and by predictable, it's carrying a reasonable balance on the line in our CP program having 10% or so of variable rate debt outstanding at any point in time and being very prudent with laddering out our maturities on a go-forward basis.

因此，從這個角度來看，您可以期望我們非常可預測，並且可預測的是，我們的CP 計劃中保持著合理的平衡，在任何時間點都有10% 左右的未償還可變利率債務，並且在逐步退出時非常謹慎我們的到期日是在未來的基礎上。

The next question comes from Eric Wolfe with Citi.

下一個問題來自花旗銀行的埃里克·沃爾夫。

With regard to the Cineworld agreement, can you talk about whether that helped your guidance relative to what you were forecasting before and remind us how much income you booked on Cineworld prior to October 1, just so we can understand the incremental impact for next year?

關於 Cineworld 協議，您能否談談這是否對您先前的預測有所幫助，並提醒我們您在 10 月 1 日之前在 Cineworld 上預訂了多少收入，以便我們了解明年的增量影響？

Yes. Everything that we've shared with you on Cineworld is obviously in the form of an agreement. So any impact that it's going to have is reflected in the comments that we've made about next year and the fourth quarter of this year.

是的。我們在 Cineworld 上與您分享的所有內容顯然都是以協議的形式進行的。因此，它將產生的任何影響都反映在我們對明年和今年第四季的評論中。

Eric, I don't know if you're looking for anything more that we are not expecting to give you a surprise that because of the Cineworld transaction there's going to be a drag on anything that we've shared with you. That's already been absorbed and shared. It's reflected in the updated guidance that we have for 2023 and in the comments that I've made about what we expect to see happen in 2024.

Eric，我不知道您是否正在尋找更多我們不希望給您帶來驚喜的東西，因為 Cineworld 交易將會拖累我們與您分享的任何內容。這已經被吸收和分享了。這反映在我們為 2023 年制定的更新指南以及我對 2024 年預期情況所做的評論中。

And then in the second quarter, so I guess not the third quarter but the second quarter, you saw around $0.5 billion increase in financing receivables within other assets. Is that more a reflection of the type of deals that were done in that quarter or rents were on those deals relative to the market? Just wondering whether we should expect a similar jump in the third quarter and sort of the quarters going forward?

然後在第二季度，所以我猜不是第三季度，而是第二季度，您看到其他資產中的融資應收帳款增加了約 5 億美元。這是否更反映了該季度完成的交易類型或這些交易相對於市場的租金？只是想知道我們是否應該預期第三季和未來幾季會出現類似的跳躍？

Eric, that's really driven by the accounting guidance where when you have sale-leaseback transactions and you look at the rent relative to market, the classification of that revenue goes into a different bucket, it goes into other revenues and also the corresponding balance sheet impact also will show up there. So it's no different than any other regular way transaction we do, it's just given the nature of it being a sale-leaseback deal with the purchase price accounting that's dictating some of the valuation associated with the real estate versus the cash flow, and that's why you see that bump.

艾瑞克，這實際上是由會計指南驅動的，當你進行售後回租交易並查看相對於市場的租金時，該收入的分類會進入不同的類別，它會進入其他收入以及相應的資產負債表影響也會出現在那裡。因此，這與我們進行的任何其他常規方式交易沒有什麼不同，只是考慮到它是售後回租交易的性質，並且購買價格會計決定了與房地產與現金流相關的一些估值，這就是為什麼你看到那個腫塊了。

Okay. Right. So any type of sale leaseback would create sort of more outsized impact on financing receivables versus another type of deal. I'm just understanding that correctly?

好的。正確的。因此，與其他類型的交易相比，任何類型的售後回租都會對應收帳款融資產生更大的影響。我只是理解正確嗎？

Yes.

是的。

The next question comes from Wes Golladay with Baird.

下一個問題來自韋斯·戈拉迪和貝爾德。

I'm just curious what are the clients saying right now? I assume you're still the cheapest form of capital for them. Are they just looking to pause and to see where rates settle?

我只是好奇客戶現在在說什麼？我認為你仍然是他們最便宜的資本形式。他們只是想停下來看看利率如何決定嗎？

Yes, this is an ongoing debate. The clients tend to think about the world 12 months ago and we are trying to get them to understand the world has changed dramatically. It is that stickiness that causes the cap rate movements to drag, and that's no different today, Wes. What we are seeing, however, is that when there is pressure on the client, i.e., there's a maturity that they have to deal with on the debt side, or they have a pipeline that is helping drive their growth, and they have to build out assets or operate assets. That's where we see a willingness to transact and accommodate the new cost of capital environment.

是的，這是一個持續的爭論。客戶傾向於思考 12 個月前的世界，我們正在努力讓他們了解世界已經發生了巨大的變化。正是這種黏性導致上限利率變動緩慢，今天也不例外，韋斯。然而，我們看到的是，當客戶面臨壓力時，即他們必須在債務方面處理成熟的問題，或者他們有一個有助於推動其成長的管道，並且他們必須建立出資或經營資產。這就是我們看到交易和適應新的資本環境成本的意願的地方。

But it depends on the client, it depends on the sophistication of the client, it depends on the need, and the urgency that the client is experiencing at that point in time where these conversations are either fairly straightforward and easy or there's a bit of a delta between what they're expecting and hoping versus what we can deliver.

但這取決於客戶，取決於客戶的複雜程度，取決於需求以及客戶當時所經歷的緊迫性，在這些對話要么相當簡單明了，要么有一點困難他們的期望和希望與我們所能提供的之間的差異。

The next question comes from Ron Kamdem with Morgan Stanley.

下一個問題來自摩根士丹利的 Ron Kamdem。

The first couple of quick ones. Just back on tenant health, I'm looking at the supplement in this, I see rent coverage is [2.8%]. Just wondering, does the Cineworld transaction sort of -- is that going to hit that number next quarter? Number one. And then if you could just broadly talk about just what are you seeing in terms of tenant health? Any sort of sectors or areas where you're starting to see some softness or any areas that are outperforming?

前幾個快速的。回到租戶健康方面，我正在查看其中的補充，我看到租金覆蓋率為[2.8%]。只是想知道，Cineworld 的交易是否會在下個季度達到這個數字？第一。然後，您是否可以廣泛地談論您對租戶健康狀況的看法？您開始看到哪些產業或領域表現疲軟或表現優於大盤？

Ron, so the Cineworld will not have an impact on the 4-wall coverage because we don't get store-specific on a quarter-by-quarter basis. That number that we share with you, our own assets where we do have a fair amount of visibility with regards to 4-wall coverage. So when we have assets that have a point in time disclosure, we generally don't try to include that. So no, it won't have an impact.

Ron，所以 Cineworld 不會對 4 牆覆蓋範圍產生影響，因為我們不會按季度獲取特定於商店的資訊。我們與您分享的這個數字是我們自己的資產，我們在 4 牆覆蓋方面確實有相當多的可見性。因此，當我們擁有具有時間點揭露的資產時，我們通常不會嘗試將其納入。所以不，不會有影響。

With regards to what we are seeing, that [2.8%] to [2.9%] has been a fairly consistent number over the last, call it, 3 quarters. And it was a bit surprising all of last year because the cost of capital has started moving, and we were expecting there to be a little bit more noise and what we ended up learning through the processes, even the reserves that we had created, we had to sort of unwind to reflect that the clients were doing better than what we had expected. And that theme has sort of played out.

就我們所看到的情況而言，[2.8%] 至 [2.9%] 是過去三個季度中相當穩定的數字。去年全年這有點令人驚訝，因為資本成本已經開始變化，我們預計會有更多的噪音，以及我們最終透過流程學到的東西，甚至我們創造的儲備，我們必須放鬆一下，反思客戶的表現比我們預期的還要好。這個主題已經結束了。

There are certainly some bankruptcies in the casual dining side on franchisee side but they are such a small portion of our overall portfolio. I am talking single-digit basis points that they don't have much of an impact on the overall portfolio where, by and large, given the essential retail that we've targeted, those clients are doing well.

特許經營商方面的休閒餐飲方面肯定有一些破產，但它們只占我們整體投資組合的一小部分。我說的是個位數基點，它們對整體投資組合沒有太大影響，總的來說，考慮到我們瞄準的基本零售業，這些客戶表現良好。

Sorry?

對不起？

Sorry about that. Go ahead.

對於那個很抱歉。前進。

No, that was it, Ron.

不，就是這樣，榮恩。

Okay. Great. So just -- I guess, moving on to my second question. Just want to go back to one of the comments you made about sitting here and potentially getting 4% to 5% AFFO growth per share. Just to be clear, does that include the $1.8 billion of debt coming due next year, I think, at a 4 (inaudible) change rate being refinanced? Or how are you thinking about the interest cost headwind in that number?

好的。偉大的。所以，我想，繼續我的第二個問題。只是想回到您關於坐在這裡並可能獲得 AFFO 每股 4% 至 5% 增長的評論之一。需要澄清的是，這是否包括明年到期的 18 億美元債務（我認為，利率變化率為 4（聽不清楚））正在再融資？或者您如何看待這個數字中的利息成本阻力？

Yes, it does. And I think when -- it does. So that's definitely going to be a headwind and the way we are thinking about it is forecasting out what the forward curve looks like today, what we think we'll be able to refinance that $1.8 billion of debt and what's the negative impact running through the income statement and therefore, to the AFFO per share.

是的，它確實。我認為當——它確實如此。因此，這肯定會是一個逆風，我們考慮它的方式是預測今天的遠期曲線是什麼樣子，我們認為我們將能夠為這 18 億美元的債務再融資，以及對整個市場的負面影響是什麼。損益表，因此，每股AFFO。

All of that's been taken into account. And the big caveat here is making sure that the Spirit transaction does close in January, February, and that our portfolio as we've shown to you in the third quarter continues to perform the way we expected to. And just those two pieces, I do think will allow us to get to that 4% to 5% without having to really raise $1 of equity, I keep going back to that because that is a very important component of 2024.

所有這些都已考慮在內。這裡要注意的是，確保 Spirit 交易確實在一月、二月完成，並且我們在第三季向您展示的投資組合繼續按照我們預期的方式表現。我確實認為光是這兩部分就可以讓我們達到 4% 到 5%，而無需真正籌集 1 美元的股本，我一直在回顧這一點，因為這是 2024 年非常重要的組成部分。

The next question comes from Linda Tsai with Jefferies.

下一個問題來自 Jefferies 的 Linda Tsai。

What are your plans around assuming Spirit's term loan? And how has lender reception been?

您對於接受 Spirit 的定期貸款有何計劃？貸方的接待情況如何？

Linda, we fully expect to assume Spirit's term loan, they've got $1.1 billion outstanding with a delayed draw to get to $1.3 billion. And so it's obviously all swapped at a very attractive fixed rates for us. We have had some preliminary discussions with the lender group. The good news is that there's quite a bit of overlap with our lenders and their lenders, and we've been very flattered by the reception so far from our banking orders. And so everything is going according to plan there. We'll be able to utilize those swaps that carry quite a bit of value and it fits nicely again into our maturity schedule. So everything is going fine there.

琳達，我們完全希望承擔 Spirit 的定期貸款，他們有 11 億美元的未償貸款，延遲提款將達到 13 億美元。因此，顯然所有這些都以對我們來說非常有吸引力的固定利率進行交換。我們已與貸方團體進行了一些初步討論。好消息是，我們的貸方和他們的貸方之間有相當多的重疊，而且我們對迄今為止銀行訂單的接待感到非常受寵若驚。所以一切都按計劃進行。我們將能夠利用那些具有相當大價值的掉期，並且它再次非常適合我們的到期時間表。所以那裡一切都很順利。

And then in terms of the Spirit acquisition, what's the impact on Realty's credit ratings and how do fixed income investors or [rating agencies] view transaction?

那麼，就 Spirit 收購而言，對 Realty 的信用評級有何影響？固定收益投資者或[評級機構]如何看待交易？

Yes. So Linda, it was a very favorable reaction and constructive feedback from the rating agencies, both Moody's and S&P, they came out and reaffirmed the A3/A- ratings, stable outlooks. And so again, we talk about how this is a very complementary portfolio and balance sheet. I would say, if you look at the before and after for some of the key credit metrics and our bond covenants, it's essentially unmoved. And so from that standpoint, it was at a very lease credit neutral and some could argue giving credit positive, given the additional scale that it provides us. And so all good on the fixed income and rating agency side.

是的。 Linda，這是穆迪和標準普爾評級機構的非常積極的反應和建設性反饋，他們出來重申了 A3/A- 評級和穩定的前景。我們再次討論這是一個非常互補的投資組合和資產負債表。我想說，如果你看看一些關鍵信用指標和我們的債券契約的前後情況，你會發現它基本上沒有改變。因此，從這個角度來看，它的租賃信用非常中性，考慮到它為我們提供了額外的規模，有些人可能會認為給予信用是積極的。因此，固定收益和評級機構方面一切都很好。

Just one last one. How do you think about portfolio discounts broadly, like the EG group deal? Do you think they'll persist in 2024 and beyond?

只剩下最後一張了您如何看待廣泛的投資組合折扣，例如 EG 集團交易？您認為這種趨勢會持續到 2024 年及以後嗎？

I do, Linda. And in fact, the larger the transaction, the better discount you're going to get. We genuinely -- at least here at Realty Income, we believe that to be one of the core differentiators of Realty Income and anybody else in this space, the ability to do these $1 billion transaction, $2 billion transactions and not have to worry about diversification.

我願意，琳達。事實上，交易金額越大，您獲得的折扣就越大。我們真誠地——至少在 Realty Income，我們相信，要成為 Realty Income 和該領域其他公司的核心區別之一，我們有能力進行 10 億美元、20 億美元的交易，而不必擔心多元化。

Obviously, you know of Jonathan and his team's ability to access capital. I mean that's a big advantage for us. And even pre-Spirit, we are probably the name that trades the most on an average daily basis and that too helps on the equity side of the equation. So I think setting aside the capital and people are more and more talking about our ability to access differentiated capital, they are approaching us with solutions that they're looking for that has multiple millions of dollars associated with it and even potentially billions of dollars associated with it.

顯然，您知道喬納森和他的團隊獲得資本的能力。我的意思是這對我們來說是一個很大的優勢。即使在 Spirit 出現之前，我們也可能是日均交易量最大的名字，這對股票方面也有幫助。因此，我認為拋開資本不談，人們越來越多地談論我們獲得差異化資本的能力，他們正在向我們尋求他們正在尋找的解決方案，這些解決方案涉及數百萬美元，甚至可能涉及數十億美元用它。

And so that's how we want to be viewed. And as soon as you start to have those discussions on a one-on-one basis, you have the ability to move cap rates a little bit more. You have the ability to construct leases that are a lot more favorable. And we've seen that. We saw that on the transactions we just announced in the third quarter with Asda and Morrison. We saw that on EG Group in the second quarter. We saw that on the gaming asset that we did in the fourth quarter of last year. These are all these $1 billion plus or close to $1 billion transactions. And that's where I think we will continue to shine.

這就是我們希望別人如何看待我們。一旦你開始進行一對一的討論，你就有能力進一步調整上限利率。您有能力簽訂更優惠的租約。我們已經看到了這一點。我們在第三季度剛剛宣布的與阿斯達和莫里森的交易中看到了這一點。我們在第二季的 EG 集團上看到了這一點。我們在去年第四季的遊戲資產上看到了這一點。這些都是 10 億美元以上或接近 10 億美元的交易。我認為這就是我們將繼續發光發熱的地方。

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 look forward to seeing many of you at the Nareit Conference in Los Angeles next week. Have a great afternoon. Bye-bye.

感謝大家今天加入我們。我們期待下週在洛杉磯舉行的 Nareit 會議上見到你們。祝你有個愉快的下午。再見。

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。您現在可以斷開連線。