Realty Income Corp (O) 2024 Q1 法說會逐字稿

Good day, and welcome to the Realty Income Q1 2024 Earnings Conference Call.

美好的一天，歡迎參加房地產收入 2024 年第一季財報電話會議。

(Operator Instructions)

（操作員說明）

Please note, this event is being recorded. I would like now to turn the conference over to Mr. Steve Bakke, Senior Vice President of Corporate Finance. Please go ahead.

請注意，此事件正在被記錄。現在我想將會議交給企業財務資深副總裁 Steve Bakke 先生。請繼續。

Thank you all for joining us today for Realty Income's First Quarter Operating Results Conference Call. Discussing our results will be Sumit Roy, President and Chief Executive Officer; and Jonathan Pong, Chief Financial Officer and Treasurer. 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. You'll disclose in greater detail the factors that may cause such differences in the company's Form 10-Q.

感謝大家今天參加 Realty Income 第一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；財務長兼財務長 Jonathan Pong。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。本公司未來的實際績效可能與任何前瞻性陳述中討論的事項有顯著差異。您將在公司的 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. I will now turn the call over to our CEO, Sumit Roy.

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，可以重新進入佇列。我現在將把電話轉給我們的執行長 Sumit Roy。

Thank you, Steve. Welcome, everyone. Our results for the start of 2024 illustrate our focus on thoughtful, disciplined growth and continue to demonstrate the consistency of our global operating and acquisition platform. We believe our value proposition to investors is a simple one. Our demonstrated ability to generate consistent positive operational returns regardless of market volatility and economic environment.

謝謝你，史蒂夫。歡迎大家。我們 2024 年初的業績顯示我們注重深思熟慮、有紀律的成長，並繼續證明我們全球營運和收購平台的一致性。我們相信我們對投資人的價值主張很簡單。無論市場波動和經濟環境如何，我們都有能力產生持續的正營運報酬。

Our projected 2024 operational return profile of approximately 10%, which comprises an anticipated dividend yield close to 6% AFFO per share growth of approximately 4.3%, assuming the midpoint of guidance is a validation of our value proposition. To summarize the results from the quarter, we would highlight several key takeaways. First, diversification. Diversification by geography, asset types and client relationships. We believe our business model is unique in the real estate sector as we have optionality to grow in different regions with investments in a multitude of real estate products where we see superior risk-adjusted returns. During the first quarter, we invested $598 million at an initial weighted average cash yield of 7.8% across 3 property types: retail, industrial and data centers. Over half of this volume representing approximately $323 million was invested in Europe and the U.K. at an 8.2% initial weighted average cash yield.

我們預計 2024 年營運回報率約為 10%，其中包括預期股息收益率接近 6%，AFFO 每股成長率約為 4.3%（假設指導中點是對我們價值主張的驗證）。為了總結本季的結果，我們將強調幾個關鍵要點。第一，多元化。依地理位置、資產類型和客戶關係多元化。我們相信我們的商業模式在房地產行業是獨一無二的，因為我們可以選擇在不同地區發展，投資多種房地產產品，在這些產品中我們看到了卓越的風險調整回報。第一季度，我們在零售、工業和資料中心這 3 種房地產類型上投資了 5.98 億美元，初始加權平均現金收益率為 7.8%。其中一半以上（約 3.23 億美元）投資於歐洲和英國，初始加權平均現金收益率為 8.2%。

Investment volume in the U.S. was modest during the quarter. Of the $275 million of U.S. volume, which was invested at a 7.3% initial weighted average cash yield all but $16 million was invested in previously committed development takeouts. This quarter's bias towards international volume is a testament to the diversity of geographies we consider to allocate capital. To further elaborate, our investment volume during the quarter consisted of 87 discrete transactions with 3 transactions over $50 million, which speaks to the breadth of our platform. Our ultimate focus with any growth vertical or new region is to serve as a real estate partner to the world's leading companies and to ensure the investment outcome matches the consistent risk return profile of our investments, which have proven resilient over almost 5 decades as an operating company and 3 decades as a public company.

本季美國的投資量不大。美國以 7.3% 的初始加權平均現金收益率投資的 2.75 億美元資金中，除了 1,600 萬美元之外，全部投資於先前承諾的開發案。本季對國際交易量的偏向證明了我們考慮配置資本的地域的多樣性。進一步詳細說明，我們本季的投資量包括 87 筆離散交易，其中 3 筆交易超過 5,000 萬美元，這說明了我們平台的廣度。我們對任何垂直成長或新區域的最終重點是作為世界領先公司的房地產合作夥伴，並確保投資結果與我們投資的一致風險回報狀況相匹配，這些投資在近5 年來作為運營商已被證明具有彈性。

Second, the health of our portfolio remains solid across all key operational metrics. We finished the quarter with occupancy of 98.6% consistent with the prior quarter and our projections. And we delivered another strong leasing quarter with rent recapture of 104.3% on the 198 leases that we renewed or re-leased during the quarter. At quarter end, our list of tenants on the credit watch list comprise approximately 5.2% of total portfolio annualized rent, which is in line with our historical average and with no individual client representing more than 1% of our total portfolio annualized rent. Consequently, we would highlight the diversification of our portfolio, which today consists of over 1,500 clients in all 50 states, the U.K. and 6 other countries in Western Europe, all of which helps insulate us from potential disruptive interest rate and credit events that could impact the durability of our cash flow.

其次，我們的投資組合在所有關鍵營運指標上都保持穩健。本季的入住率為 98.6%，與上一季和我們的預測一致。我們的租賃季度表現又強勁，本季續租或重新租賃的 198 份租賃的租金回收率為 104.3%。截至季末，我們的信用觀察名單上的租戶名單約佔投資組合年化租金總額的5.2%，這與我們的歷史平均水平一致，並且沒有個人客戶占我們投資組合年化租金總額的1% 以上。因此，我們要強調我們投資組合的多元化，目前我們的投資組合由遍布美國所有50 個州、英國和西歐其他6 個國家的1,500 多個客戶組成，所有這些都有助於我們免受潛在的破壞性利率和信貸事件的影響，這些事件可能會影響我們的投資組合。

Finally, our balance sheet and access to capital continues to represent a major competitive advantage and affords us significant flexibility to fund our business without the need for external capital. After the Spirit merger closed in January, our annualized free cash flow available for investments is approximately $825 million. This provides us significant organic investment capacity to finance our growth plans without being required to tap into the debt or equity markets to meet current investment guidance. I would also note this also excludes any additional capacity generated by our disposition program, which I will discuss later. In spite of volatility in the capital markets, we posted a nominal first year investment spread of over 340 basis points in the first quarter, which is well above our historical spread of around 150 basis points.

最後，我們的資產負債表和獲得資本的管道繼續代表著主要的競爭優勢，並為我們提供了巨大的靈活性，無需外部資本即可為我們的業務提供資金。 Spirit 合併於 1 月完成後，我們可用於投資的年化自由現金流約為 8.25 億美元。這為我們提供了重要的有機投資能力，為我們的成長計畫提供資金，而無需進入債務或股票市場來滿足當前的投資指引。我還要指出的是，這也不包括我們的處置計劃產生的任何額外容量，我將在稍後討論。儘管資本市場波動，我們第一季名目第一年投資利差仍超過 340 個基點，遠高於我們約 150 個基點的歷史利差。

The primary driver of these outside spreads is the significant portion of investment volume funded to free cash flow, which by virtue of being a nondiluted source of capital, meaningfully reduces our nominal first year cost of capital. To be clear, our investment decisions remain based on our long-term weighted average cost of capital, which considers only our cost of stock for equity and long-term 10-year unsecured debt. This establishes the minimum return hurdle we seek to exceed across our aggregate investment activity. In all cases, our long-term WACC has exceeded our nominal first year cost of capital with respect to our transactions. This long-term oriented underwriting model is what drives our focus on acquiring high-quality real estate, leased to solid operators who are leaders in their respective industries, because we believe these opportunities have significantly lower residual risk -- value risk.

這些外部利差的主要驅動因素是投資金額的很大一部分用於自由現金流，由於自由現金流是未稀釋的資本來源，因此有意義地降低了我們第一年的名義資本成本。需要明確的是，我們的投資決策仍然是基於我們的長期加權平均資本成本，其中僅考慮我們的股權成本和長期 10 年無擔保債務。這確立了我們在整個投資活動中尋求超越的最低迴報門檻。在所有情況下，我們的長期 WACC 都超過了我們交易的名義第一年資本成本。這種以長期為導向的承銷模式促使我們專注於收購優質房地產，並將其租賃給各自行業中領先的可靠營運商，因為我們相信這些機會的剩餘風險（價值風險）顯著降低。

In addition, to reach our longer-term growth hurdle rates, we are increasingly prioritizing meaningful contractual rent escalators in our leases with conservative rent coverage metrics that we believe will be even more resilient through a variety of economic cycles. In summary, activity in the transaction market remains uneven. Many potential sellers of real estate remain sidelined given this uncertain interest rate environment, which is amplified by mixed inflation-related data over the last 6 months. Sellers remain reluctant to transact and the breadth and depth of domestic investment opportunities have compressed as a result. However, as experienced in prior cycles, we remain optimistic that the market will provide more opportunities in the second half of the year as the economic outlook becomes clearer.

此外，為了達到我們的長期成長門檻，我們越來越優先考慮租賃中有意義的合約租金自動扶梯，並採用保守的租金覆蓋指標，我們相信這些指標在各種經濟週期中都將更具彈性。綜上所述，交易市場的活躍程度仍不平衡。鑑於利率環境的不確定性，許多潛在的房地產賣家仍處於觀望狀態，而過去 6 個月的通膨相關數據好壞參半，加劇了這種不確定性。賣家仍然不願意進行交易，因此國內投資機會的廣度和深度都被壓縮。然而，正如先前週期的經驗一樣，我們仍然樂觀地認為，隨著經濟前景變得更加明朗，下半年市場將提供更多機會。

Turning to portfolio operations. As previously mentioned, our recapture rate was 104.3% contributing to same-store rent growth of 0.8% in the first quarter. Excluding the negative impact from our [Sinovel] theater portfolio, following the lease amendments finalized late last year, our same-store portfolio was up 1.4%, largely in line with the contractual rent growth embedded in our portfolio. One of our competitive advantages in the marketplace is our asset management and real estate operations functions, consisting of over 80 individuals who we believe are among the most talented in the industry. Since becoming a public company in 1994, we have now resolved over 6,000 lease expirations at a blended rent recapture rate of 102.5%, which is a testament to our acquisition underwriting, quality of our real estate and the scale of our asset management and real estate operations teams.

轉向投資組合操作。如前所述，我們的回收率為 104.3%，導致第一季同店租金成長 0.8%。排除我們[華銳風電]劇院投資組合的負面影響，繼去年年底完成租賃修訂後，我們的同店投資組合增長了 1.4%，很大程度上與我們投資組合中的合約租金增長一致。我們在市場上的競爭優勢之一是我們的資產管理和房地產營運部門，由我們認為業內最有才華的 80 多名人員組成。自 1994 年成為上市公司以來，我們現已解決了 6,000 多個租賃到期問題，混合租金回收率為 102.5%，這證明了我們的收購承銷、房地產品質以及資產管理和房地產的規模。

During the quarter, we sold 46 properties for total net proceeds of $95.6 million. Our recycling efforts are a function of a more active investment management initiative. Our active decision-making on dispositions is supported by our proprietary predictive analytics platform. In recent years, we have harnessed the collective contributions of our predictive analytics team, the credit underwriting group, and the fundamental input from our asset management group to inform our acquisition strategy. We believe the combined benefits of these 3 groups provide us a significant differentiation in the industry as a result of the quantum of data we have gathered across our portfolio over our long operational history.

本季度，我們出售了 46 處房產，淨收益總額為 9,560 萬美元。我們的回收工作是更積極的投資管理舉措的結果。我們的主動處置決策得到了我們專有的預測分析平台的支持。近年來，我們利用預測分析團隊、信貸承銷團隊的集體貢獻以及資產管理團隊的基本投入來為我們的收購策略提供資訊。我們相信，這三個群體的綜合優勢為我們在行業中帶來了顯著的差異化，因為我們在長期的營運歷史中在我們的投資組合中收集了大量的數據。

So now in addition to our acquisition program, we are using the data to more proactively manage the portfolio and guide our active disposition program. I will now turn it over to Jonathan, who will add further color to the quarter.

因此，現在除了我們的收購計劃之外，我們還利用這些數據來更主動地管理投資組合併指導我們的主動處置計劃。我現在將其交給喬納森，他將為本季增添更多色彩。

Thank you, Sumit. It's been a quiet start to the year on the capital markets front, following our January U.S. dollar bond offering, which raised $1.25 billion in gross proceeds at a blended yield to maturity of approximately 5.14%. As introduced in our prior earnings call, our financing strategy for 2024 does not require incremental capital to finance our growth and acquisition needs. This continues to be the case at our current investment guidance. To that end, we had another quarter with a net debt and preferred equity, annualized pro forma adjusted EBITDA ratio of 5.5x, that's in line with our target ratio.

謝謝你，蘇米特。繼我們 1 月發行美元債券後，今年資本市場開局平靜，籌集了 12.5 億美元的總收益，綜合到期收益率約為 5.14%。正如我們在先前的財報電話會議中所介紹的，我們 2024 年的融資策略不需要增量資本來滿足我們的成長和收購需求。我們目前的投資指引仍然是這種情況。為此，我們在另一個季度的淨負債和優先股、年化預計調整後 EBITDA 比率為 5.5 倍，這符合我們的目標比率。

During the quarter, we settled approximately $550 million of equity previously raised through our ATM program and which was outstanding on a forward basis. This leaves us with approximately $63 million of outstanding equity available for future settlements. And when combined with approximately $825 million of annualized free cash flow available to us following the Spirit merger, and the disposition program that Sumit referenced, our $2 billion investment guidance for the year is one we believe can be funded without having to tap the markets. Our debt maturity schedule for the remainder of the year is modest, with approximately $469 million of remaining maturities, excluding $342 million of short-term commercial paper and revolver borrowings and of cash.

在本季度，我們結清了先前透過 ATM 計畫籌集的約 5.5 億美元的股權，這些股權在遠期基礎上尚未償還。這為我們留下了約 6,300 萬美元的未償權益，可用於未來和解。再加上 Spirit 合併後我們可獲得的約 8.25 億美元的年化自由現金流以及 Sumit 提到的處置計劃，我們認為今年 20 億美元的投資指導是無需利用市場即可獲得資金的。我們今年剩餘時間的債務到期時間表不大，剩餘到期金額約為 4.69 億美元，不包括 3.42 億美元的短期商業票據和循環貸款以及現金。

As always, we look to maintain significant financial flexibility to fund known and identified liquidity and with approximately $4 billion of total liquidity available to us and minimal [berate] debt exposure on the balance sheet, we believe we can refinance these maturities while still retaining significant liquidity headroom and keeping [beverage] debt exposure well below 10% of our debt capital stack through the balance of the year. With that, I'll turn it back over to Sumit for closing remarks.

一如既往，我們希望保持顯著的財務靈活性，為已知和確定的流動性提供資金，並且我們可用的總流動性約為40 億美元，並且資產負債表上的債務風險最小化，我們相信我們可以為這些到期日進行再融資，同時仍保留大量資金流動性充足，並將[飲料]債務敞口在今年剩餘時間裡保持在我們債務資本總額的10%以下。至此，我將把它轉回給 Sumit 做總結發言。

Thank you, Jonathan. In summary, the year is off to a solid start, that is in line with expectations. Our earnings growth profile for the balance of the year remains consistent with our outlook and earnings guidance we gave in February. The tempered pace of activity in the first quarter reflects our long-standing capital allocation discipline, and we will remain selective as cap rates adjust to the current rate environment.

謝謝你，喬納森。總而言之，今年開局良好，符合預期。我們今年剩餘時間的獲利成長狀況與我們 2 月給出的前景和獲利指引保持一致。第一季活動節奏的放緩反映了我們長期以來的資本配置紀律，隨著資本化率根據當前利率環境進行調整，我們將保持選擇性。

In the meantime, the levers we can exercise from an internal funding standpoint, in particular, free cash flow and capital recycling, allow us to continue investing at spreads well over 200 basis points on a leverage-neutral basis. Our approximately 4% AFFO per share projected growth rate, paired with our estimated annualized dividend yield of approximately 6% is why we believe our platform offers one of the most compelling investment opportunities in the S&P 500. With that, I would like to open it up for questions.

同時，從內部融資的角度來看，我們可以運用的槓桿，特別是自由現金流和資本回收，使我們能夠在槓桿中性的基礎上繼續以遠超 200 個基點的利差進行投資。我們每股約4% 的AFFO 預計成長率，加上我們約6% 的預期年化股息殖利率，是我們相信我們的平台提供了標準普爾500 指數中最引人注目的投資機會之一的原因。

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

The first question comes from Nate Crossett with BNP.

第一個問題來自法國巴黎銀行 (BNP) 的內特·克羅塞特 (Nate Crossett)。

I was wondering if you could just talk about the current pipeline what does pricing look like so far into 2Q? Where is the pipeline weighted? And I know it's this most sample size, but pretty attractive yields in Europe in the quarter. Is there anything to note there?

我想知道您是否可以談談當前的管道，到目前為止第二季度的定價是什麼樣的？管道的權重在哪裡？我知道這是最大的樣本量，但本季歐洲的收益率相當有吸引力。那裡有什麼需要注意的地方嗎？

Thanks, Nate. Good question. I think what you're seeing here in the U.S. is largely a confusion around where the rates are going. When will the rate cuts materialize and it's a function of what we've seen play out over the last 6 months in terms of mixed data that is causing this confusion. And the way it's manifesting in our space is this reluctance of sellers to transact at what is reflective of the cost of capital environment today.

謝謝，內特。好問題。我認為你在美國看到的情況很大程度上是對利率走向的混亂。降息何時會實現，這取決於我們在過去 6 個月中所看到的導致這種混亂的混合數據。它在我們領域的表現方式是賣家不願意以反映當今資本環境成本的價格進行交易。

And so for us, this is one of the advantages we bring to the table is we play in multiple geographies. and we are seeing much better risk-adjusted return opportunities in Europe today, where the data has been a lot more consistent, and therefore, the ability to transact with potential sellers much more real. And that's kind of the reason why you've seen 54% of the volume manifest itself in Europe versus here in the U.S. And I suspect, because your question was very specific around the current pipeline and what we think will happen in the second quarter, I suspect it will be a similar slant to the results.

因此，對我們來說，這是我們帶來的優勢之一，因為我們在多個地區開展業務。今天，我們在歐洲看到了更好的風險調整回報機會，那裡的數據更加一致，因此與潛在賣家進行交易的能力更加真實。這就是為什麼你看到 54% 的銷量出現在歐洲而不是美國的原因。類似。

But I do believe that the second half of the year, we should start to see a lot more transactions materialize. I know that the team is actually in conversations with multiple potential sellers, but the disconnect happens to be where that reservation price is for potential sellers. But we do believe that once the environment becomes a little clearer in terms of what's going to happen with rates and when will those potential rate cuts come to fruition, I think the transaction market in the U.S. will catch up.

但我確實相信，今年下半年，我們應該會開始看到更多交易的實現。我知道該團隊實際上正在與多個潛在賣家進行對話，但脫節恰好在於潛在賣家的保留價格。但我們確實相信，一旦利率走勢以及這些潛在降息何時實現的環境變得更加清晰，我認為美國的交易市場將會迎頭趕上。

Okay. That's helpful. And then if I could just ask one on the tenant credit side. What's on the watch list right now that we should be tracking and maybe you could speak to Red Lobster specifically because that's been in the news recently.

好的。這很有幫助。然後我是否可以詢問租戶信貸方面的問題。目前我們應該追蹤的觀察名單上有哪些內容，也許您可以專門與 Red Lobster 聯繫，因為最近新聞報導了這一點。

Sure. So the ones that we currently have on our watch list, [Rite Aid] that represents about 31 basis points of rent. It's still going through bankruptcy. We are very hopeful that it will emerge from bankruptcy soon. But like I said, it's a very small portion of our overall portfolio. Joanne is another one that was on our -- is on our watch list. That represents 4 basis points of rent and our expectation is that all 6 leases are going to be assumed at 100% recapture just given the way they're planning on emerging from bankruptcy.

當然。因此，我們目前在觀察名單上的 [Rite Aid] 代表了大約 31 個基點的租金。它仍然在經歷破產。我們非常希望它能盡快擺脫破產困境。但正如我所說，它只占我們整體投資組合的一小部分。喬安妮是我們觀察名單上的另一位。這代表租金的 4 個基點，我們的預期是，考慮到他們計劃擺脫破產的方式，所有 6 個租賃都將被假定為 100% 收回。

Every other name that's on our watch list is sub-4% in terms of names that are currently in bankruptcy. So it's a -- it's obviously a very, very small portion of our overall watch list. The ones that are not on -- not currently in bankruptcy but continue to garner a fair amount of interest here internally, is Red Lobster, the one that you just mentioned. We have about 216 leases. It represents 1.07% of our rent. The cash flow coverage that we have across all 216 assets is right around 2x and 201 of these 216 leases happen to be part of a master lease. So I just wanted to frame our exposure to Red Lobster before I go into some color around the name itself. I think of Red Lobster is -- it's a pretty strange story. They have 700 unique locations. They garner 14% of the casual seafood concept. That is a very hard thing to do.

我們觀察名單上的所有其他名稱目前處於破產狀態的名稱均低於 4%。所以這顯然只是我們整個觀察名單中非常非常小的一部分。那些沒有破產的公司——目前沒有破產，但在內部繼續獲得相當多的興趣，就是你剛才提到的紅龍蝦公司。我們有大約 216 個租約。它占我們租金的 1.07%。我們對所有 216 項資產的現金流量覆蓋率約為 2 倍，而這 216 項租賃中的 201 項恰好是主租賃的一部分。所以我只是想在我對這個名字本身進行一些顏色分析之前先框架一下我們對紅龍蝦的接觸。我認為《紅龍蝦》是一個非常奇怪的故事。他們有 700 個獨特的地點。他們佔據了休閒海鮮概念的 14%。這是一件非常困難的事。

And the fact that they generate north of $2 billion in revenue, if you look at it on a per unit basis, that's just right around $3.5 million per unit. So it's not a top line issue, as much as it is an operations issue. They've gone through several changes in terms of ownership. Obviously, there have been several changes in terms of management. And this is a business that, in our opinion, hasn't been very well run. If you look at the balance sheet, is it a balance sheet issue at Red Lobster. In our opinion, it's not. They have $220 million of debt and this is really a question of, is there an operator out there that could come in and basically manage this business even to a reasonable level of margins.

事實上，它們產生的收入超過 20 億美元，如果以單位計算的話，每單位收入正好在 350 萬美元左右。因此，這不是一個頂線問題，而是一個營運問題。他們在所有權方面經歷了幾次變化。顯然，管理層方面發生了一些變化。我們認為，這是一項經營不佳的業務。如果你看一下資產負債表，是不是紅龍蝦的資產負債表問題？我們認為事實並非如此。他們有 2.2 億美元的債務，這實際上是一個問題，是否有一個運營商可以介入並基本上管理這項業務，甚至達到合理的利潤水平。

Today, I don't believe they're generating a whole lot of EBITDA. But having said that, our 200 assets has 2x coverage. So that should tell you that we obviously have assets that are some of the best assets in their portfolio. And so if this can be operationally rightsized, we believe that this is a concept that should come out, and should survive and do quite well, given the footprint that they've been able to establish. So that's our view. We are keeping a close eye on it. As far as rents are concerned, we've collected 100% of the rents due to us as of May. So it's a wait and see, but it does happen to be on our watch list.

今天，我不相信他們能產生大量的 EBITDA。但話雖如此，我們的 200 項資產的覆蓋範圍是 2 倍。因此，這應該告訴您，我們顯然擁有他們投資組合中最好的資產。因此，如果可以在操作上調整規模，我們相信這是一個應該出現的概念，並且應該生存並且做得很好，因為他們已經能夠建立足跡。這就是我們的觀點。我們正在密切關注此事。就租金而言，截至 5 月份，我們已經收回了 100% 的租金。所以這是一個觀望，但它確實在我們的觀察名單上。

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。

Are you able to provide more details on the active disposition program you're talking about maybe in terms of targeted volumes industries or how you're identifying assets for recycling?

您是否能夠提供有關您正在談論的主​​動處置計劃的更多詳細信息，可能是在目標數量行業方面，或者您如何識別要回收的資產？

Sure. Good question, Greg. So what we are hoping to achieve is circa $400 million to $500 million of asset dispositions this year. We can't be very precise around it because part of it is a function of the market. We expect that the occupied sales and the vacant asset sales is going to be approximately 50-50. Obviously, in the first quarter, it was disproportionately vacant asset sales. I think $82 million of the $96 million was vacant asset sales, $14 million were occupied.

當然。好問題，格雷格。因此，我們希望今年能實現約 4 億至 5 億美元的資產處置。我們不能非常精確地解決它，因為它部分是市場的函數。我們預計已佔用資產銷售和空置資產銷售將約為 50-50。顯然，第一季空置資產出售比例過高。我認為 9,600 萬美元中的 8,200 萬美元是空置資產出售，1,400 萬美元被佔用。

But what we are trying to do is intentionally get ahead of some of these assets that happen to be on our watch list. And not always is it being driven by a credit issue. It's -- sometimes it is purely a real estate issue that our asset management team has concluded, does not have a long-term position in our overall portfolio. And then there are certain trends that we are seeing that we want to try to get ahead of based on client conversations, et cetera, that is also going to allow us to be a lot more proactive and get ahead of situations well in advance of it becoming an issue downstream.

但我們正在努力做的是有意識地領先我們觀察名單上的一些資產。而且它並不總是由信用問題驅動的。有時我們的資產管理團隊得出的結論是純粹的房地產問題，在我們的整體投資組合中沒有長期地位。然後，我們看到一些趨勢，我們希望根據客戶對話等來嘗試領先，這也將使我們能夠更加積極主動，並提前領先於情況成為下游的問題。

In terms of the actual concepts themselves, it is along the lines of what we have been selling. Some of it is automotive services. There are some drug stores that we believe are not part of the overall strategy. Some of it is going to be the Cineworld assets that, by the way, the sale process is going, I would say, ahead of what our expectations were. And then some that are perhaps not, like I said, core to what our overall strategy is on the discount store side as well that we want to try to get ahead of. So those are the components that will make up what we want to try to get disposed of this year.

就實際概念本身而言，它與我們一直在銷售的產品一致。其中一些是汽車服務。我們認為有些藥局不屬於整體策略的一部分。其中一些將是 Cineworld 的資產，順便說一句，我想說，銷售過程超出了我們的預期。正如我所說，還有一些可能不是我們在折扣店方面整體策略的核心，也是我們希望努力超越的。這些就是我們今年想要處理掉的組件。

Okay. And is that $400 million to $500 million the kind of entirety of the program? Is that a first step? And then how are you thinking about as that compares to the level of acquisitions that you're targeting this year, what that might mean for growth in 2025?

好的。這 4 億到 5 億美元就是整個計畫嗎？這是第一步嗎？然後，與您今年的目標收購水準相比，您如何看待這對 2025 年的成長意味著什麼？

Look, we've got to execute our plan based on what we believe is the right portfolio that's going to take us into 2025 in a position of strength. We have grown our business through M&A. There have been 2 very large M&A deals done in the last 2.5, 3 years. We've been, I believe, very open about not all of those assets have been core to our long-term strategy. And so some of this is largely a function of trying to get back to that core portfolio.

看，我們必須根據我們認為正確的投資組合來執行我們的計劃，這將使我們在 2025 年保持優勢。我們透過併購發展了我們的業務。過去 2.5 年、3 年完成了 2 起非常大的併購交易。我相信，我們一直非常公開地承認，並非所有這些資產都是我們長期策略的核心。因此，這在很大程度上是試圖回歸核心投資組合的結果。

We have obviously underwritten the impact of 50% of circa $400 million to $500 million in dispositions being occupied assets. But what you'll find is some of these assets are actually being sold. Look at what we sold or -- and I know it wasn't a big number, but the occupied assets, we actually sold them at a 7% cap rate, cash cap rate, and we are reinvesting it at 77%. So it is actually an accretive disposition strategy that we've been able to implement at least for the first quarter. So for us, it's about creating the portfolio that we want to go into 2025 and beyond with. And this is a program that will consistently be executed on going forward. When we are doing sale leasebacks, it's not an issue. When we're doing portfolio transactions on existing leases, not always do we get 100% of what we want. And so being a bit more proactive around culling the assets that is not core to our overall strategy upfront is something that I think we are going to be a lot more intentional about.

顯然，我們已經承保了約 4 億至 5 億美元處分中 50% 被佔用資產的影響。但您會發現其中一些資產實際上正在出售。看看我們出售了什麼——我知道這不是一個大數字，但我們實際上以 7% 的上限利率（現金上限利率）出售了佔用的資產，並且我們以 77% 的利率進行再投資。因此，這實際上是我們至少在第一季能夠實施的增值處置策略。因此，對我們來說，關鍵在於創造我們想要進入 2025 年及以後的投資組合。這是一個將持續執行的計劃。當我們進行售後回租時，這不是問題。當我們對現有租賃進行組合交易時，我們並不總是能夠 100% 得到我們想要的東西。因此，我認為我們會更主動地預先剔除不是我們整體策略核心的資產。

But we feel very good about our ability to continue to grow despite the strategy in 2025 and beyond.

但儘管制定了 2025 年及以後的策略，但我們對繼續成長的能力感到非常滿意。

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。

This is Daryl on behalf of Josh. I was wondering if you could clarify how bad debt is currently trending? I know you made some comments on the watch list. And perhaps if that has changed at all in your outlook of how much bad debt is baked into guidance?

這是達裡爾代表喬許。我想知道您能否澄清一下壞帳目前的趨勢如何？我知道你對觀察名單發表了一些評論。也許您對將多少壞帳納入指導的看法發生了根本改變？

Daryl, on the bad debt number, so we did disclose in the earnings press release for Q1, it was about $1.4 million that we actually recognized. As we think about forward-looking guidance and downside scenarios. I think we've been pretty clear in the past that we've been extremely conservative. I think when you sit here today, it's early May, it's a long time to go before the end of the year, -- it's not to say that there's any major concerns.

達裡爾（Daryl），關於壞帳數字，我們確實在第一季的收益新聞稿中披露了，我們實際確認的金額約為 140 萬美元。當我們思考前瞻性指導和下行情境。我認為我們過去已經非常清楚地表明我們一直非常保守。我想當你今天坐在這裡時，現在是五月初，距離年底還有很長一段時間——這並不是說有任何重大問題。

I think you heard some talk about the watch list and it's a bunch of small little things that if everything when a yes, maybe could have some impact, but it's certainly not our expected scenario on that front. And so I think it's really a mix of spirits assets that we did acquire that we've always been a little bit more cautious on, and we'll continue to be cautious until we get further into the year. I think for us, we're always pretty conservative as it relates to bad debt expense, especially early in the year. And then finally, there's some identified credits that even more or coating on.

我想你聽說過一些關於觀察名單的討論，這是一堆小事情，如果一切都是肯定的，也許會產生一些影響，但這肯定不是我們在這方面預期的情況。因此，我認為這實際上是我們確實收購的烈酒資產的組合，我們一直對此更加謹慎，並且在進入今年之前我們將繼續保持謹慎。我認為對我們來說，我們總是相當保守，因為這與壞帳費用有關，尤其是在今年年初。最後，還有一些確定的製作人員名單，甚至更多或覆蓋。

Great. And second question about -- given the cap rates that you're seeing in Europe with coming off of acquisitions, has your thought process or thesis change when you're thinking about development and the yield you can get off that versus these straight-up acquisitions.

偉大的。第二個問題是—考慮到您在歐洲看到的收購後的資本化率，當您考慮開發以及與這些直接投資相比可以獲得的收益時，您的思考過程或論文是否會改變收購。

No, it's a matter of timing, Daryl -- the older vintage developments start to roll off, you'll start to notice that some of the newer developments that we've entered into are more reflective of the current cost of capital environment. and therefore, the cash cap rate yields that we are expecting on that vintage should creep up. It's just that we entered into our development pipeline 12, 18 months ago. And some of those assets obviously were more reflective of the environment that we were in at that particular point in time.

不，這是一個時間問題，達裡爾 - 較舊的老式開發項目開始推出，您會開始注意到我們已經進入的一些較新的開發項目更能反映當前的資本環境成本。因此，我們預計該年份的現金上限收益率應該會上升。只是我們在 12、18 個月前就進入了開發流程。其中一些資產顯然更能反映我們在那個特定時間點所處的環境。

But even at a 7.2% cash cap yield, which is what our development is -- that closed in the first quarter yielded is still circa 150 basis points, 170 basis points of spread. So yes, it's not quite the $78 million that we were able to achieve on the overall and certainly not 8.2% that we were able to achieve in Europe. But that -- I just wanted to make sure that you are aware that there is a bit of a lag on the development pipeline and the developments that we are entering into today is much more reflective of the environment today.

但即使現金上限收益率為 7.2%（這就是我們的發展），第一季收盤時的收益率仍約為 150 個基點，即 170 個基點的利差。所以，是的，這還不是我們整體上能夠實現的 7,800 萬美元，當然也不是我們在歐洲能夠實現的 8.2%。但是，我只是想確保你們意識到，開發管道存在一些滯後，而我們今天正在進行的開發更能反映當今的環境。

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。

Going back to the European cap rates, it really felt like that market has lagged the U.S. for a long time in terms of recognizing the higher rate environment. I appreciate the outlook has been a bit more stable over there. But is there anything else that's changed in Europe that's now generating these attractive cap rates despite the cost of debt obviously being lower than the U.S.

回到歐洲上限利率，在認識更高利率環境方面，確實感覺到該市場已經落後於美國很長一段時間。我很欣賞那裡的前景更加穩定。但是，儘管債務成本明顯低於美國，但歐洲是否還發生了其他任何變化，從而產生瞭如此有吸引力的上限利率？

Yes, Brad, what the cost of debt is certainly lower in Mainland Europe. It's not lower in the U.K. I would say trying on top of each other, John. Jonathan is nodding. So the big difference that we see and why potential sellers are willing to transact at the yields that we were able to realize, they're twofold. One, there are funds that have had redemption pressures where they need to monetize real estate, and they are more than willing to reflect what the current cost of capital environment is because they need the capital.

是的，布拉德，歐洲大陸的債務成本肯定較低。我想說的是，在英國，這個數字並不低，約翰，互相競爭。喬納森點點頭。因此，我們看到的巨大差異以及為什麼潛在賣家願意以我們能夠實現的收益率進行交易的原因是雙重的。第一，有些基金面臨贖回壓力，需要將房地產貨幣化，而且他們非常願意反映當前的資本環境成本，因為他們需要資本。

And the second, which works really in our favor is the fact that we have established ourselves as the go-to buyer of these types of assets. and recognizing that the surety of close, which is very important for these potential sellers is going to be met. And that reputation really does accrue to our benefit when we are sort of having these conversations, and somebody requires capital near term, and we have the ability to close on these transactions as and when we agree on a particular price. I think it's those 2 factors that's allowing us to be very successful in the U.K. and in Europe, and is how it's playing out.

第二個對我們真正有利的事實是，我們已經成為此類資產的首選買家。並且認識到成交的保證將得到滿足，這對於這些潛在的賣家來說非常重要。當我們進行這些對話時，並且有人在短期內需要資金，當我們就特定價格達成一致時，我們有能力完成這些交易，這種聲譽確實會為我們帶來好處。我認為正是這兩個因素讓我們在英國和歐洲取得了非常成功，也是如此。

Here, unfortunately, you don't have similar pressures. Yes, there could be operators that might be willing to transact. But if they have any ability to wait, which in the U.S., they have a lot more alternatives, they are sort of standing on the sidelines waiting for the environment to improve for potential buyers to then be able to get the cap rates that they're willing to transact in. So I think that's how I would frame why we are being successful. One of the reasons is obviously very idiosyncratic to us and the other is it's a reflection of the market.

不幸的是，在這裡你沒有類似的壓力。是的，可能會有業者願意進行交易。但如果他們有能力等待，在美國，他們有更多的選擇，他們會站在場邊等待潛在買家的環境改善，然後能夠獲得他們想要的上限利率。我如何解釋我們成功的原因。原因之一顯然對我們來說非常特殊，另一個原因是它反映了市場。

Okay. Got it. And then on Dollar Tree Family Dollar, can you remind us what the Family Dollar split is? And talk about any impact that you might have from the closures?

好的。知道了。然後在 Dollar Tree Family Dollar 上，您能提醒我們 Family Dollar 的分割是什麼嗎？並談談關閉可能對您產生的任何影響？

Yes. Look, I don't think that the impact for us is going to be disproportionate. We have about 3% of our rent, that is Dollar Tree, Family Dollar exposed to Dollar Tree, which obviously is the owner of Family Dollar. And I would say about 60%, circa 60% is Family Dollar and the rest of it is either Dollar Tree or the dual banners that they have. There's about I want to say 3% of the 3.3%. So that's 9 basis points of lease expirations over the next 2 years, 2.5 years that will materialize.

是的。聽著，我認為這對我們的影響不會不成比例。我們大約有3%的租金，就是Dollar Tree，Family Dollar暴露於Dollar Tree，這顯然是Family Dollar的所有者。我想說大約 60%，大約 60% 是 Family Dollar，其餘的要么是 Dollar Tree，要么是他們擁有的雙橫幅。我想說的是 3.3% 中的 3%。因此，未來 2 年（即 2.5 年）租賃期滿將有 9 個基點。

So even if there are these closures and even if some of these assets are named on the closing list, our impact is basically 9 basis points. And I can assure you that our asset management team is already working on resolutions given that it is part of the pipeline. Anything beyond that will potentially be closed and will remain dark. We are still going to collect rent. And let me tell you that the pressure on Family Dollar and Dollar Tree is going to be a lot more acute than it is on us. to try to find a substitute to step in and take over these leases. And just episodically, there's a fair amount of interest in some of these locations that we've received just along the lines of some of the news that's out there about potential closings, et cetera that we feel pretty good about our ability to resolve the Family Dollar assets.

因此，即使有這些關閉，即使其中一些資產被列入關閉清單，我們的影響基本上只有 9 個基點。我可以向您保證，我們的資產管理團隊已經在製定解決方案，因為它是管道的一部分。超出此範圍的任何地方都可能會被關閉並保持黑暗。我們仍然要收取租金。讓我告訴你，Family Dollar 和 Dollar Tree 面臨的壓力將比我們承受的壓力大得多。試圖找到替代者介入並接管這些租約。偶爾，我們收到的一些地點對其中一些地點有相當大的興趣，就像一些關於可能關閉的新聞一樣，我們對我們解決家庭問題的能力感到非常滿意美元資產。

The one thing I'll add, which may not be apparent, Family dollar tends to be in urban areas and in much more densely populated areas than Dollar Tree or Dollar General. And so the attractiveness of those locations to alternative retail clients is a lot more -- and that's borne out by the fact that we have received inbound. So for us, this is no different than learning well in advance that, hey, these particular leases are not going to get renewed and it gives us time to work on some of these leases well in advance of the actual lease expiration. So that's how I would frame it.

我要補充的一件事可能並不明顯，Family Dollar 往往位於城市地區，並且比 Dollar Tree 或 Dollar General 人口稠密得多的地區。因此，這些地點對另類零售客戶的吸引力要大得多——我們收到的入境訂單就證明了這一點。因此，對我們來說，這與提前了解這些特定的租約不會續約沒有什麼不同，這讓我們有時間在實際租約到期之前處理其中一些租約。這就是我的框架。

Our next question comes from Michael Goldsmith with UBS.

我們的下一個問題來自瑞銀集團的麥可‧戈德史密斯。

This is Catherine Graton with Michael. My first is -- you touched on this a bit at the opening, but how are you thinking about -- if you could maybe just provide some more color how you're thinking about the cost of free cash flow within the context of your investment spreads?

這是凱瑟琳·格拉頓和邁克爾。我的第一個問題是——你在開頭提到了這一點，但你是如何考慮的——如果你能提供更多的信息，你是如何考慮投資背景下的自由現金流成本的？

Sure. That's a great question. For us, free cash flow is a massive advantage. The ability to raise $825 million of free cash flow post all obligations is essentially capital that we can use to invest across a variety of areas to accretively grow our earnings. Obviously, when we have free cash flow, we have to figure out what is the best use of that free cash flow. We could buy back our debt, we could buy back our stock, we could continue to invest accretively. And when we find that investing accretively is the best possible use of that capital -- that is a massive advantage.

當然。這是一個很好的問題。對我們來說，自由現金流是一個巨大的優勢。扣除所有債務後籌集 8.25 億美元自由現金流的能力本質上是我們可以用來投資各個領域以增加我們的收入的資本。顯然，當我們擁有自由現金流時，我們必須弄清楚自由現金流的最佳用途是什麼。我們可以回購我們的債務，我們可以回購我們的股票，我們可以繼續增加投資。當我們發現增量投資是資本的最佳利用方式時，那就是巨大的優勢。

And in a year where we are highlighting the fact that we have $2 billion of acquisitions, and we hope we do better than that, but that's our current guidance. Being able to finance this business with $825 million of free cash flow which is obviously nondilutive in nature and grow our earnings is a massive advantage. That's how we think about our free cash flow. There is obviously opportunity cost associated with this. But the way we think about opportunity cost is what's the best use of this capital. And for us, even in this environment, given the platform that we have, and given the diversification benefits of being able to invest across multiple asset types across multiple geographies, we are continuing to find accretive use of this particular cash flow.

在這一年裡，我們強調我們進行了 20 億美元的收購，我們希望我們能做得更好，但這就是我們目前的指導。能夠用 8.25 億美元的自由現金流為這項業務提供資金（這顯然是非稀釋性的），並增加我們的收入，這是一個巨大的優勢。這就是我們對自由現金流的看法。顯然存在與此相關的機會成本。但我們考慮機會成本的方式是如何最好地利用這些資本。對我們來說，即使在這種環境下，考慮到我們擁有的平台，以及能夠跨多個地區投資多種資產類型的多元化優勢，我們仍在繼續尋找這種特定現金流的增值用途。

And I think, obviously, one of the other things that we do look at is what is the long-term overall return profile. And that is what we compare to our long-term WACC, which is our cost of equity, that 65% and our cost of debt that is 35%. And the cost of equity -- and by the way, we have a few pages on this in our investor deck. It's largely driven by the CAPM model and the dividend growth model. And I think we take the average of the two to come up with our cost effective long-term cost of equity and the long-term cost of debt and it's 65%, 35% weighted. And all of our investments need to meet that hurdle rate and exceed that hurdle rate for us to move forward. So that's really how we think about our cost of capital and how we specifically think about the free cash flow, which obviously we view as a massive advantage to us.

我認為，顯然，我們確實關注的其他事情之一是長期整體回報率。這就是我們與長期 WACC 進行比較的情況，即我們的股本成本（65%）和債務成本（35%）。還有股權成本——順便說一句，我們的投資者平台上有幾頁關於這個問題的內容。它主要是由 CAPM 模型和股息成長模型所驅動的。我認為我們取兩者的平均值來得出具有成本效益的長期股權成本和長期債務成本，其加權率為 65%、35%。我們所有的投資都需要滿足並超過該門檻率，我們才能繼續前進。這就是我們如何看待我們的資本成本以及我們如何具體考慮自由現金流，顯然我們認為這對我們來說是一個巨大的優勢。

Got it. And my second question is on the development piece. So do you expect to see an acceleration of yields for your development projects as we progress through 2024 or even into 2025?

知道了。我的第二個問題是關於開發部分的。那麼，隨著 2024 年甚至 2025 年的進展，您是否期望看到您的開發專案的產量加速成長？

We do. Any new development that we are entering into, and I think somebody asked this question as well, we should -- it should be more reflective of the current cost of capital environment. And so as you know, a lot of these developments, they do have a bit of a lag time. And so what you're seeing close today is in that lower 7% [ZIP] code. But what you should see translate over the next few quarters is to see that cash cap rate continuing to trend much higher, reflecting the current cost of capital.

我們的確是。我們正在進入的任何新發展，我認為也有人問過這個問題，我們應該——它應該更多地反映當前的資本環境成本。如您所知，很多進展確實有一點延遲時間。所以您今天看到的接近的是較低的 7% [ZIP] 代碼。但在接下來的幾個季度中，您應該看到現金上限利率繼續走高，反映了當前的資本成本。

Our next question comes from Anthony Paolone of JP Morgan.

我們的下一個問題來自摩根大通的安東尼·保隆。

First question relates to the Europe acquisitions in the quarter and the yields there. Can you talk a bit more about what kinds of embedded rent bumps are included in that? How much was maybe traditional net lease versus maybe multi-tenant assets? Because it looked like duration was a little bit on the shorter side.

第一個問題與本季度歐洲收購及其收益率有關。您能多談談其中包含哪些類型的嵌入式租金上漲嗎？傳統的淨租賃與多租戶資產相比可能是多少？因為看起來持續時間有點短。

Yes. So a lot of these were retail parks. And let's talk a little bit about retail parks because there's a confusion when you say multi-tenanted, we think in terms of what -- how we define multi-tenanted here in the U.S. This is not like multi-tenanted here in the U.S. A lot of these are I would say 80% of them are Tier 1 or Tier 2 as we define them, clients that we are pursuing on a freestanding basis.

是的。所以很多都是零售公園。讓我們來談談零售園區，因為當你說多租戶時，我們會感到困惑，我們會思考如何定義美國的多租戶。 1 級或2 級客戶，我想說其中80% 是我們獨立追求的客戶。

And they happen to be located in a contiguous part. And each one of these units basically has a flow-through from rent to NOI, very similar to what you would find on a freestanding basis. So the growth in these leases, they tend to be shorter, anywhere between 5 to 10 years. And the growth in these leases could be open market reviews or they could have some of the larger boxes could have more of the regular way growth that we've seen that are tied to inflation, et cetera. But when we are underwriting these assets, we are looking at the composition of the tenants. We're looking at the flow through. We're looking at are these rents above or below market? We're looking at what the long-term profile of the return is going to be. And then we are comparing it to what are we getting these assets at day 1 in terms of the initial yield.

而且它們恰好位於連續的部分。這些單位中的每一個基本上都有從租金到 NOI 的流通，與您在獨立式基礎上看到的非常相似。因此，這些租約的成長往往較短，介於 5 到 10 年之間。這些租賃的成長可能是公開市場審查，或者可能有一些較大的盒子可能有更多我們所看到的與通貨膨脹相關的常規方式成長，等等。但當我們承保這些資產時，我們正在考慮租戶的組成。我們正在關注流量。我們正在考慮這些租金是高於還是低於市場水平？我們正在研究回報的長期情況。然後我們將其與我們在第一天獲得這些資產的初始收益率進行比較。

And these assets have really done very well. And some of the numbers, a lot of the renewals come strong, these retail parks that we bought because the freestanding assets haven't gone through a renewal process yet. And the fact that they are very similar in nature to our overall portfolio of [104.2%] that we were able to generate this quarter is a reflection of how we are underwriting each one of these retail parks. But that's where we are seeing the value. And the fact that we are now starting to consolidate and control swaps of retail parks across the U.K. is a massive advantage for us because the kind of conversations we can have with clients that we've obviously wanted to grow with is very different when we control major locations that they would like to continue to stay over the long duration.

而這些資產確實表現得非常好。從一些數字來看，我們購買的這些零售園區的許多更新都很強勁，因為獨立資產尚未經歷更新過程。事實上，它們在本質上與我們本季能夠產生的整體投資組合 [104.2%] 非常相似，這反映了我們如何承保這些零售園區。但這就是我們看到價值的地方。事實上，我們現在開始整合和控制英國各地零售園區的交換，這對我們來說是一個巨大的優勢，因為當我們控制時，我們可以與我們顯然希望與之一起成長的客戶進行的對話是非常不同的他們希望繼續長期停留的主要地點。

And I think that's how we are able to generate the value that we are able to generate. And we are doing it at a time point in time where should be told retail parks are starting to change. If you look at the vacancy that you have, it's circa 2%. If you look at the actual growth that we are being able to generate, it's much higher than what was traditionally achieved. And if you also look at the free rent concept that used to exist, we are being able to compress on that concept, just given the fact that we control so much more of retail parks. So this has been a great investment for us. And I just want to make sure that people realize that the flow-through is very similar to a stand-alone net lease business that we've traditionally been involved in. So I'm glad you asked the question, Anthony.

我認為這就是我們能夠創造我們能夠創造的價值的方式。我們這樣做的時間點應該是零售園區開始改變。如果你看看你的職缺，你會發現大約是2%。如果你看看我們能夠實現的實際成長，你會發現它比傳統實現的成長要高得多。如果你也看看過去存在的免費租金概念，我們就能夠壓縮這個概念，因為我們控制了更多的零售園區。所以這對我們來說是一筆巨大的投資。我只是想確保人們意識到流通量與我們傳統上參與的獨立淨租賃業務非常相似。 所以我很高興你問這個問題，安東尼。

And then just my follow-up is more on the credit side. You spent a bunch of time on that. But can you give us any updated thoughts on AMC, both as it relates to how you're thinking about that credit as well as your specific assets with the box office being down a bunch this year.

然後我的後續行動更多的是在功勞方面。你花了很多時間在這上面。但您能否給我們一些關於 AMC 的最新想法，因為這既涉及到您如何看待這一功勞，也涉及到您今年票房大幅下降的具體資產。

Yes. So look, we've gone through one of them already with Cineworld. AMC represents about 1% of our rent. We have, I believe, 39 assets. AMC continues to be able to raise capital in the equity markets. And 24% is not going to be a great year for the box office. We recognize that. It may be equivalent to last year, maybe it will be even a little bit less than last year given some of the disruptions that occurred in 2023. And -- but the expectation is that 2025 will supersede 2023 and the quality of movie releases will be much higher in '25 than in '24.

是的。所以看，我們已經透過 Cineworld 經歷了其中一個。 AMC 約占我們租金的 1%。我相信我們有 39 項資產。 AMC 繼續能夠在股票市場籌集資金。 24%對於票房來說並不是一個好年份。我們認識到這一點。考慮到 2023 年發生的一些幹擾，它可能與去年持平，甚至可能會比去年少一點。 而且，但預計 2025 年將取代 2023 年，電影發行的品質將提高25 年比 24 年高得多。

Is it possible that AMC goes through a BK process? Yes, it's absolutely possible. But I can tell you, our experience on Cineworld gives us a lot of confidence that the assets that we have and the resolutions that we've been able to achieve and the restructuring of the rent that was achieved is still going to create an outcome that is very acceptable to us. Tony, just to put things in perspective, our history, and we've had several bankruptcies in our history. Our recapture rate has been north of 80%. And I believe if we were to do the full analysis, once we go full cycle on the Cineworld, it's going to be in that ZIP code. And it's not actually even better than that. given some of the resolutions that we are finding on the vacant asset sales that we had touched on last year on CineWorld.

AMC有可能走BK流程嗎？是的，這絕對有可能。但我可以告訴你，我們在 Cineworld 的經驗給了我們很大的信心，我們擁有的資產、我們已經能夠實現的決議以及已經實現的租金重組仍然會創造一個結果：我們非常可以接受。東尼，請正確看待我們的歷史，我們歷史上曾經歷過幾次破產。我們的奪回率已超過 80%。我相信，如果我們要進行全面的分析，一旦我們在 Cineworld 上進行完整的循環，它就會出現在那個郵遞區號中。實際上並沒有比這更好。鑑於我們在去年 CineWorld 上談到的空置資產出售問題上找到了一些解決方案。

So I believe AMC is going to be a similar story, but it is not trade comp that they're going to go through a BK process, we believe they have enough liquidity to certainly withstand this year and potentially most of next year as well. But if they were to go through a BK process, -- it's not necessarily a bad thing. I think it will allow them to restructure the debt, which I think continues to be a massive burden and they will emerge stronger for it. And we believe that, again, just like in the Cineworld situation, we have some of their better assets and we will do fairly well even if they were to go through the BK process. So that's our thoughts on AMC.

因此，我相信 AMC 也會經歷類似的故事，但他們將經歷 BK 流程並不是貿易補償，我們相信他們有足夠的流動性來承受今年以及明年的大部分時間。但如果他們要經歷 BK 流程，——這不一定是壞事。我認為這將使他們能夠重組債務，我認為這仍然是一個巨大的負擔，他們將因此變得更強大。我們再次相信，就像 Cineworld 的情況一樣，我們擁有他們的一些更好的資產，即使他們要經歷 BK 流程，我們也會做得相當好。這就是我們對 AMC 的看法。

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

我們的下一個問題來自 Mizuho 的 Haendel St. Juste。

You mentioned thoughtful and disciplined growth selective a few times about your prepared remarks, clearly suggesting that the activity will remain subdued as you push the more yield and quality, but you did leave the door up in capacity in the gas a little bit more compelling opportunities to emerge in the back half of the year. So I guess I'm curious maybe some more thoughts on that and how you think about balancing the pace of investment versus your longer-term earnings growth target if you'd be willing to push a bit more in the second half, even if that would make for a omit the right opportunities came along.

您在準備好的演講中多次提到了深思熟慮和有紀律的成長選擇性，明確表明，當您推動更高的產量和品質時，活動將保持低迷，但您確實在產能方面留下了更具吸引力的機會下半年才會出現。所以我想我很好奇也許對此有更多的想法，以及如果您願意在下半年加大力度，您如何考慮平衡投資步伐與長期盈利增長目標，即使那樣會導致忽略正確的機會出現。

Hi Haedel, I'm sorry, it was very difficult to hear you. But I think what you're asking for is, do we expect to accelerate the investments in the latter half of the year given what we are seeing today. And if I didn't quite get that, I apologize. But the answer is, look, we are not trying to look for a particular quantum of acquisitions or investments, we are allowing for the market to dictate how much we'll be able to achieve in a year, which is very uncertain.

你好，Haedel，很抱歉，很難聽到你的聲音。但我認為你問的是，鑑於我們今天所看到的情況，我們是否期望在下半年加速投資。如果我沒有完全明白這一點，我深表歉意。但答案是，看，我們並不是試圖尋找特定數量的收購或投資，我們讓市場決定我們一年內能夠實現多少目標，這是非常不確定的。

If you're asking for an opinion, I do believe that especially here in the U.S., the second half of the year, when there is a little bit more clarity in terms of where interest rates are going, et cetera, there will be more opportunities. And Haendal, if you look at what we've been able to achieve over the last few years, we tend to get more than our share of the volume, especially of the product that we are interested in pursuing. And so is it possible that the U.S. acquisition numbers for the remainder of the year is going to be higher than what we achieved in the first quarter, the answer is yes. We certainly do.

如果你要徵求意見，我確實相信，尤其是在美國，今年下半年，當利率走向等方面更加明確時，將會有更多機會。 Haendal，如果你看看我們在過去幾年中所取得的成就，我們往往會獲得超出我們份額的銷量，特別是我們有興趣追求的產品。那麼今年剩餘時間美國的收購數量是否有可能高於第一季的水平，答案是肯定的。我們當然這樣做。

Do we expect the European momentum to continue? The answer is, yes. Do we expect both these markets to accelerate? The answer is, yes. And I just want to caveat it that this is our opinion, and time will tell. But we feel fairly optimistic about the second half of the year.

我們預計歐洲的勢頭會持續下去嗎？答案是，是的。我們預期這兩個市場都會加速嗎？答案是，是的。我只是想警告一下，這是我們的觀點，時間會證明一切。但我們對下半年感到相當樂觀。

And just a follow-up on Europe since we're talking about it here. I think you have close to $10 billion or so, plus or minus asset value there. So I guess I'm curious if there's any change or update on the thinking of a potential spin-off of that platform? Is it large or mature enough? And maybe when do you think that it could be ready to stand on its in?

自從我們在這裡討論以來，這只是歐洲的後續行動。我認為你擁有接近 100 億美元左右的資產，加上或減去資產價值。所以我想我很好奇該平台的潛在分拆想法是否有任何變化或更新？規模夠大還是夠成熟？也許你認為它什麼時候可以準備好站起來？

That was a loaded question, Haendel. But thank you for asking. The number is, I believe, closer to $11 billion. Yes, if we were to spin that business out, it would be one of the largest REITs in the U.K. But that is absolutely not our intention today. We are very happy with having Europe as part of our overall platform precisely for the reasons that we talked about on this call regarding the first quarter, it allows us the opportunity to play in markets where we have the best risk-adjusted return profiles of investments.

這是一個很有意義的問題，韓德爾。但謝謝你的詢問。我相信這個數字接近 110 億美元。是的，如果我們將該業務剝離出來，它將成為英國最大的房地產投資信託基金之一，但這絕對不是我們今天的意圖。我們非常高興歐洲成為我們整體平台的一部分，正是因為我們在第一季的電話會議上談到的原因，它使我們有機會在擁有最佳風險調整投資回報的市場中發揮作用。

And therefore, all of that benefit accrues to our shareholders here in the U.S. And -- so that's how I'm going to leave it. Again, was this a grand design that we would grow up to $10 billion? No. It's again a function of the platform that we brought in, our cost of capital, our team and their ability to execute unlike any other teams and our ability to form the relationships as quickly as we did and now we consider the de facto net lease company in all of Europe. I mean those are benefits that has taken us 5 years to establish. And now we feel like is the time for us to continue to harvest the benefits of establishing ourselves in Europe. So that's how I would answer it.

因此，所有這些利益都歸我們在美國的股東所有——所以這就是我要離開的方式。再說一次，這是一個宏偉的設計嗎？不。的租賃公司。我的意思是，這些好處是我們花了 5 年才建立起來的。現在我們覺得是時候繼續收穫在歐洲立足的好處了。這就是我的回答。

The next question comes from Nick Joseph of Citi.

下一個問題來自花旗銀行的尼克約瑟夫。

Given the opportunities that you've talked about and the better cap rates in Europe and kind of the thoughtfulness on the long-term weighted average cost of capital. How do additional data center and gaming investments look today on the U.S. side?

考慮到您談到的機會和歐洲更好的資本化率以及對長期加權平均資本成本的考慮。目前美國方面的額外資料中心和遊戲投資情況如何？

Thank you for your question, Nick. Yes, I would say about 6% of our investments in the first quarter went towards the Digital JV that we have formed. As you may recall, Nick, that is an asset that is being currently developed in Northern Virginia, in Loudoun County. And it won't be operational until the end of this year, the first phase, maybe -- actually, it's the first quarter of next year. And then there could be the second phase that gets kicked in.

謝謝你的問題，尼克。是的，我想說我們第一季大約 6% 的投資流向了我們組建的數位合資企業。尼克，您可能還記得，這是一項目前正在維吉尼亞州北部勞登縣開發的資產。它要到今年年底才會投入運營，第一階段，也許——實際上，是明年第一季。然後可能會進入第二階段。

So as of right now, that is the only investment that we have on the data center side. There are other opportunities that we are looking at. We do have an investment that we will make -- we will continue to make in Spain, that is also looking at a data center side that we believe is very well located, and there seems to be a lot of interest in that particular side. That will be our additional spend on the data center side, but that hasn't been substantial to date. But those are really the only 2 opportunities that we are looking at.

到目前為止，這是我們在資料中心方面的唯一投資。我們正在尋找其他機會。我們確實將進行一項投資——我們將繼續在西班牙進行投資，這也在尋找我們認為位置非常好的數據中心方面，並且似乎對該特定方面有很多興趣。這將是我們在資料中心方面的額外支出，但到目前為止還不是很大。但這實際上是我們正在尋找的僅有的兩個機會。

We are obviously involved in multiple conversations with multiple operators to try to understand where the real opportunities are versus the optimism that continues to play out in this particular space. And we are hopeful that we can grow our -- high percentage part of our portfolio in a meaningful way over the next few years. But as of right now, a lot of it is just in the initial stages of conversations with potential operators outside of the JV that we have with Digital.

顯然，我們與多個運營商進行了多次對話，試圖了解真正的機會在哪裡，以及在這個特定領域繼續出現的樂觀情緒。我們希望在未來幾年內能夠以有意義的方式擴大我們投資組合的高比例部分。但截至目前，其中許多仍處於與我們與 Digital 合資企業以外的潛在營運商對話的初始階段。

And then just on the gaming side.

然後就在遊戲方面。

On the gaming side, things continue to look interesting. We've obviously made 2 investments. It represents slightly north of 3% of our rents and we are in conversations with other opportunities, including potential development opportunities in large cities. There's a very long tail to some of these development opportunities.

在遊戲方面，事情看起來仍然很有趣。顯然我們已經進行了兩項投資。它略高於我們租金的 3%，我們正在與其他機會進行對話，包括大城市的潛在開發機會。其中一些發展機會有很長的尾巴。

But we'll see how some of these conversations translate into actual transactions. But I will say that there was an interesting conversation we were having earlier this year, which has been kind of put on hold for right now that would be a continued growth of our gaming business, but it hasn't quite materialized yet. So we'll see how that plays out.

但我們將看到其中一些對話如何轉化為實際交易。但我要說的是，我們今年早些時候進行了一次有趣的對話，現在已經被擱置了，這將是我們遊戲業務的持續成長，但它還沒有完全實現。所以我們將看看結果如何。

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)。

You highlighted all the levers you have to pull. And one you created last year was the credit investment platform. Can you give us an update on that?

您突出顯示了必須拉動的所有槓桿。你去年創建的一個是信用投資平台。能為我們介紹一下最新情況嗎？

Yes, Wes, we continue to look for opportunities on the credit investment side. But please keep in mind that one of the things that's dictating our investments in the credit side is to continue to strengthen relationships with either existing clients or to help facilitate sale leaseback with those existing clients.

是的，韋斯，我們繼續尋找信貸投資的機會。但請記住，決定我們在信貸方面投資的因素之一是繼續加強與現有客戶的關係或幫助促進與這些現有客戶的售後回租。

And if we want to be viewed as a real estate partner to some of the world's leading operators, part of being that partner is to provide capital through the traditional channels that we have established or on a more secured basis to balance sheet lending.

如果我們希望被視為一些世界領先營運商的房地產合作夥伴，那麼成為該合作夥伴的一部分就是透過我們已建立的傳統管道或在更安全的基礎上向資產負債表貸款提供資本。

And that continues to be how we think about our credit investment. But one of the advantages of doing this Wes, as I'm sure you recognize, is this continuous headwinds that we experienced, given the refinancings that we are having to incur at much higher rates. This is a perfect natural hedge to that because here we are lending to clients that we have credit exposures to, reflective of the current higher interest rate. And that's really part of why we believe that this is such a good strategy for us in the interim.

這仍然是我們對信貸投資的看法。但我相信你也意識到，這樣做的好處之一是我們經歷了持續的逆風，因為我們必須以更高的利率進行再融資。這是對此的完美自然對沖，因為我們向有信用風險的客戶提供貸款，反映了當前較高的利率。這就是為什麼我們相信這對我們來說是一個很好的過渡策略的部分原因。

People talk about reinvestment risk. Well, guess what, if the environment is different and interest rates actually go down, we don't have to roll our credit. We will -- our cost of capital should be better. These headwinds that we are facing on our refinancings will dissipate. And we'll be able to, therefore, invest it in more of our traditional sources, this capital that we get back at very good yields.

人們談論再投資風險。好吧，你猜怎麼著，如果環境不同且利率實際上下降了，我們就不必滾動信貸。我們會—我們的資本成本應該會更好。我們在再融資方面面臨的這些阻力將會消失。因此，我們將能夠將其投資於更多的傳統來源，我們可以以非常好的收益收回這些資本。

And so really, I think of the credit partly as a defensive mechanism and is a natural hedge to the headwinds that we faced, but also very much in line with trying to become that real estate partner to the world's leading operators, and these are operators with whom we want to continue to grow our relationship.

事實上，我認為信貸在某種程度上是一種防禦機制，是對我們所面臨的逆風的自然對沖，但也非常符合試圖成為世界領先營運商的房地產合作夥伴的目標，而這些營運商就是我們希望與他們繼續發展我們的關係。

A quick follow-up on that one. So when you talk about the natural hedge, would you look to keep these more SOFR-based loans?

對此進行快速跟進。那麼，當您談論自然對沖時，您會考慮保留這些更多基於 SOFR 的貸款嗎？

Yes. We do have SOFR-based loans. But by and large, what we try to do is not expose ourselves to the floating rate element. We try to lock it in, we get it, but then no longer becomes a perfect hedge. But given where the environment is and given the expectation of interest rates, we are still very well protected. We have one loan, the ASDA loan that was -- it was -- it's a floater and it's off of the SONIA in the U.K.

是的。我們確實有基於 SOFR 的貸款。但總的來說，我們試圖做的並不是讓自己暴露在浮動利率因素的影響之下。我們試圖將其鎖定，我們得到了它，但隨後就不再成為完美的對沖。但考慮到環境和利率預期，我們仍然受到良好的保護。我們有一筆貸款，ASDA 貸款，它是一筆浮動貸款，來自英國的 SONIA。

But largely, every other loan that we've made has been a fixed component to it. And keep in mind that we also inherited some loans, one of which actually got paid off at 100% that we inherited from Spirit and it was a $33 million seller financing that Spirit had provided to (inaudible), which, by the way, was an outcome that was superior to how we had underwritten it. So yes, it's -- Jonathan, did you want to add something?

但在很大程度上，我們發放的每筆其他貸款都是其中的固定組成部分。請記住，我們也繼承了一些貸款，其中一筆貸款實際上得到了100% 的清償，這是我們從Spirit 繼承的，這是Spirit 提供的3300 萬美元的賣方融資（聽不清楚），順便說一句，結果優於我們承保的方式。是的，喬納森，你想添加一些東西嗎？

Yes. Well, just to add to that, when we think about it being a natural hedge. I think it's more so a lot in the lines of when the debt actually matures. Because we look at our maturity schedule, we've got a decent amount of debt coming through, well staggered. But on a nominal basis, still pretty significant, $1.9 billion next year, for instance, from a $3.26 billion at almost $3 billion in '27.

是的。好吧，補充一點，當我們認為它是一種天然的對沖時。我認為更重要的是債務實際到期的時間。因為我們看看我們的到期時間表，我們有相當數量的債務要償還，而且是交錯的。但從名義上看，仍然相當可觀，例如明年的 19 億美元，從 20 年 32.6 億美元增至近 30 億美元。

And so when you have a corresponding asset that could get [called] or will get repaid and it's hard to replace that coupon in a lower rate environment, chances are we're much better off as we're refinancing our liabilities and our cost of capital is obviously much lower. So I think that's another way to take through the natural hedge element.

因此，當您擁有可以[調用]或將得到償還的相應資產，並且很難在較低利率環境中替換該息票時，我們的情況很可能會好得多，因為我們正在為我們的負債和成本進行再融資。所以我認為這是利用自然對沖元素的另一種方式。

Our next question comes from Harsh Hemnani of Green Street.

我們的下一個問題來自 Green Street 的 Harsh Hemnani。

So not a good chunk of acquisitions this quarter came from funds that needed the capital and some redemptions. How would you contrast that opportunity set for acquisitions versus, maybe the traditional sale-leaseback market where realty income could provide a solution for tenant financing.

因此，本季沒有很大一部分收購來自需要資本和一些贖回的基金。您如何將收購機會與傳統的售後回租市場進行對比，在傳統的售後回租市場中，房地產收入可以為租戶融資提供解決方案。

It sounds like based on interest rate hopes -- hopes of interest rates going down, more tenants are looking towards the traditional credit market and trying to look for finite sources of capital rather than locking in sale-leaseback capital for a perpetual period of time. Is that something you're seeing more so in tenant conversations today than when compared to a year ago?

這聽起來像是基於利率的希望——希望利率下降，更多的租戶開始轉向傳統的信貸市場，並試圖尋找有限的資本來源，而不是永久鎖定售後回租資本。與一年前相比，您今天在租戶對話中看到的情況是否更多？

We are certainly seeing sale-leaseback opportunities. In fact, 13% of what we closed in the first quarter, it was sale-leaseback. But you're right, Harsh. If you compare it to last year, 46% of everything we did was sale leaseback. The year before that, it was closer to 40%. And we are not seeing that. And I think part of it is because clients are trying to figure out ways to not necessarily lock into 20-year, 25-year leases at these elevated cap rates.

我們當然看到了售後回租的機會。事實上，我們第一季成交的 13% 是售後回租。但你是對的，哈什。如果與去年相比，我們所做的一切有 46% 是售後回租。前一年，這一比例接近 40%。但我們並沒有看到這一點。我認為部分原因是客戶正在試圖找出不一定要以這些較高的資本化率鎖定 20 年、25 年期租賃的方法。

And so if there is an alternative available to them, be it through the debt markets, which has much shorter duration, even if it is higher, I think they're going to be far more inclined to doing that. But I just want to be very clear that we are -- again, if it's a brand-new client that we don't have a relationship with, we are not going to go and provide them credit if there isn't a compelling sale-leaseback opportunity with them and our desire to have them as part of our client registry, is not there.

因此，如果他們有其他選擇，無論是透過債務市場，其期限要短得多，即使期限較長，我認為他們會更傾向於這樣做。但我只是想非常清楚地表明，我們再次強調，如果這是一個與我們沒有關係的全新客戶，如果沒有令人信服的銷售，我們不會去向他們提供信用。希望將他們作為我們客戶登記的一部分的願望並不存在。

We are not going to be pure credit providers like some of the credit funds out there that exists. So I do see that changing as there is stability in the rate environment, as people start to get much more comfortable about where things are going to sort of play out. I do believe that sale-leaseback will come roaring back. We are in discussions with some names right now. And it really is a disconnect between where they want to transact and what -- where we are capable of transacting given our cost of capital. So -- but I think it's a matter of time.

我們不會像現有的一些信貸基金那樣成為純粹的信貸提供者。因此，我確實看到隨著利率環境的穩定，人們開始對事情的發展變得更加放心，情況會改變。我確實相信售後回租將會捲土重來。我們現在正在與一些名字進行討論。這確實是他們想要進行交易的地方與考慮到我們的資本成本而我們有能力進行交易的地方之間的脫節。所以——但我認為這只是時間問題。

And our next question comes from Linda Tsai of Jefferies.

我們的下一個問題來自 Jefferies 的 Linda Tsai。

Maybe piggybacking off Greg's earlier question on dispositions. Your proprietary predictive analytics platform will be used to help with dispose. Could you just give us some more color on how that works? What are some of the inputs to the analysis?

也許是藉鏡了格雷格之前關於處置的問題。您專有的預測分析平台將用於幫助處置。您能給我們更多關於它是如何運作的說明嗎？分析的一些輸入是什麼？

Yes. That's where the secret sauce is, Linda. But all right. Let me -- and I don't want to get too pedantic. So try to keep it pretty high level. The way our predictive analytics work, it is by industry and even at times by client. But largely, the models work by industry. And it tries to identify the key variables, which could be 20, 30, 40 variables that dictate the predictability of a renewal outcome or a leasing outcome.

是的。這就是秘訣所在，琳達。但沒關係。讓我——我不想太迂腐。因此，請盡量保持較高的水平。我們的預測分析的工作方式是按行業，有時甚至按客戶。但在很大程度上，這些模型是按行業運作的。它試圖確定關鍵變量，這些變量可能是 20、30、40 個決定續約結果或租賃結果可預測性的變量。

So the pieces around how we created the predictive analytic tool was to figure out what was our leasing activity going to look like, where will we -- the risk was defined as, are we going to be able to maintain the rent that we currently have during a renewal period? Or are we -- is it going to go less? Or is it going to be more?

因此，圍繞我們如何創建預測分析工具的部分是弄清楚我們的租賃活動會是什麼樣子，我們將在哪裡——風險被定義為，我們是否能夠維持我們目前的租金在續約期間？或者我們——它會減少嗎？還是會更多？

And that's how we define risk, and that's how we've sort of created these algorithms by industry to identify where does risk lie in our portfolio. And as you can imagine, each industry has its own set of variables that dictate that particular outcome. But the biggest piece of all of this, I think the creation of the algorithms, et cetera, is a fairly simple task. I mean it's taken us 3.5, 4 years. So I don't want to minimize that piece. I've got me looking at me strangely here.

這就是我們定義風險的方式，也是我們按行業創建這些演算法的方式，以確定風險在我們的投資組合中的位置。正如您可以想像的那樣，每個行業都有自己的一組變數來決定特定的結果。但其中最重要的部分，我認為演算法的創建等，是一項相當簡單的任務。我的意思是我們花了 3.5 年、4 年。所以我不想最小化那部分。這裡讓我用奇怪的眼神看著我。

But it is the data that we have that allows us to back test these models and continue to refine and calibrate these models to improve their predictability. I think that's what is where the true value lies in our platform, having been around for 50 years. And I think that's why you see the kind of results that you see when we are posting the release -- the re-leasing spreads, when we are trying to get ahead in terms of identification of assets that we should, where we are maximizing the return profile of those assets given what we think will happen some lease renewal.

但正是我們擁有的數據使我們能夠回測這些模型，並繼續完善和校準這些模型以提高其可預測性。我認為這就是我們已經存在 50 年的平台的真正價值。我認為這就是為什麼你會看到我們發布新聞稿時看到的結果——再租賃價差，當我們試圖在我們應該識別的資產方面取得進展時，我們正在最大化考慮到我們認為會發生一些租約更新，這些資產的回報情況。

I think that's where the predictive analytics tools, along with the asset management team was using on-the-ground experience to sort of share their perspective along with the credit's view. That group together is what's dictating how we try to stay ahead with the portfolio. And it has to be tools driven. It has to be technology driven. When you have 15,400 discrete locations in 80 different industries with 1,500 different clients, I mean it can't be done manually.

我認為這就是預測分析工具和資產管理團隊利用實地經驗來分享他們的觀點以及信貸觀點的地方。這個群體共同決定了我們如何努力維持產品組合的領先地位。它必須是工具驅動的。它必須是技術驅動的。當您在 80 個不同行業擁有 15,400 個離散地點，擁有 1,500 個不同客戶時，我的意思是它無法手動完成。

And so that's the reason why we chose to make this investment, Linda, 5 years ago and several millions in -- this is a tool that we are very, very proud of and it's now very much part and parcel of every decision we are making, be it acquisitions, be it disposition, the hold decisions. And also, this tool is now being used to dictate the highest and best use for potential vacancies, which may or may not be the old use of that particular asset. And we've seen some of the value creation that, that prediction has yielded for us as a platform.

這就是為什麼我們在5 年前選擇進行這項投資的原因，Linda，投資了數百萬美元——這是一個我們非常非常自豪的工具，它現在已經成為我們所做的每一個決定的重要組成部分。而且，該工具現在用於規定潛在空缺的最高和最佳用途，這可能是也可能不是該特定資產的舊用途。我們已經看到了這個預測為我們作為一個平台帶來的一些價值創造。

So hopefully, I didn't get too much into the details, but that's really how the predictive analytics tool works.

希望我沒有過多了解細節，但這就是預測分析工具的工作原理。

Appreciate the color. And then just in terms of using dispose to get back to that core portfolio you referenced earlier, can you give us some metrics or characteristics of what that looks like. You have more international exposure versus 4 or 5 years ago? How does that kind of fit to the core portfolio?

欣賞顏色。然後，就使用 dispose 回到您之前提到的核心投資組合而言，您能給我們一些看起來像什麼的指標或特徵嗎？與 4 或 5 年前相比，您的國際曝光度增加了嗎？這與核心投資組合有何契合？

Yes. For us, having geographical diversification, the advantages of it played out in the first quarter, right? I mean you saw we were able to find transactions in the U.K. that had a return profile that far superseded what we are able to find here in the U.S. And then that will flip. So I think the geographical diversity is a good thing.

是的。對我們來說，地理多元化，優勢在第一季就發揮出來了，對嗎？我的意思是你看到我們能夠在英國找到交易，其回報率遠遠超過我們在美國能夠找到的交易，然後情況就會翻轉。所以我認為地理多樣性是件好事。

In terms of the actual composition of the portfolio, we clearly have what we are viewing as an optimal portfolio. And an optimal portfolio, we might like, let's call it, grocery, but we want grocery to be 13% to 14% of our overall portfolio. If that creeps into the 19% to 20%, that's not a good thing. And by the way, I'm giving you an example, that's not the case. Grocery happens to be only 10% of our portfolio today.

就投資組合的實際組成而言，我們顯然擁有我們所認為的最佳投資組合。我們可能喜歡一個最佳的投資組合，我們稱之為雜貨，但我們希望雜貨占我們整體投資組合的 13% 到 14%。如果這個比例蔓延到 19% 到 20%，那可不是好事。順便說一句，我給你舉個例子，事實並非如此。如今，食品雜貨僅占我們投資組合的 10%。

And then there are other areas like apparel that we may not necessarily want to be exposed to at all. But again, using very broad brushes across particular subsectors is not the right answer either. And that's the reason why this tool along with credit, et cetera, they help us devise what we believe to be the optimal portfolio.

還有其他領域，例如我們可能根本不想接觸的服裝。但同樣，在特定子行業中使用非常廣泛的刷子也不是正確的答案。這就是為什麼這個工具與信貸等一起幫助我們設計我們認為是最佳投資組合的原因。

If you think retail and you step back, we like service-oriented businesses, we like low price point businesses, and that's sort of the overarching nondiscretionary, overarching elements that we look for on the retail side. That doesn't mean that we won't deviate from this. But over 90% of our retail portfolio, by the way, has one or more of these characteristics. But that's, I think, how you think about the composition and geographical diversification is something that sits on top of that.

如果你考慮零售業，然後退一步，我們喜歡以服務為導向的企業，我們喜歡低價位企業，這就是我們在零售方面尋找的首要的非自由裁量的、首要的元素。這並不意味著我們不會偏離這一點。但順便說一句，我們 90% 以上的零售投資組合都具有其中一個或多個特徵。但我認為，最重要的是你如何看待組成和地理多元化。

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

我們的問答環節到此結束。我想將會議轉回由 Sumit Roy 先生發表閉幕詞。

Thank you all for joining us today, and we look forward to speaking soon and seeing you at the upcoming conferences. Thank you.

感謝大家今天加入我們，我們期待盡快發言並在即將舉行的會議上見到您。謝謝。

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。